Oando PLC Investor Presentation

Disclaimer
This presentation does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or
dispose of any Oando Plc (the “Company”) shares or other securities.
This presentation includes certain forward looking statements with respect to certain development
projects, potential collaborative partnerships, results of operations and certain plans and objectives of the
Company including, in particular and without limitation, the statements regarding potential sales revenues
from projects, both current and under development, possible launch dates for new projects, and any
revenue and profit guidance. By their very nature forward looking statements involve risk and uncertainty
that could cause actual results and developments to differ materially from those expressed or implied. The
significant risks related to the Company’s business which could cause the Company’s actual results and
developments to differ materially from those forward looking statements are discussed in the Company’s
annual report and other filings. All forward looking statements in this presentation are based on
information known to the Company on the date hereof. The Company will not publicly update or revise any
forward looking statements, whether as a result of new information, future events or otherwise.
Oando PLC Investor Presentation
Past performance is no guide to future performance and persons needing advice should consult an
independent financial adviser.
Oando PLC
1
Disclaimer
This presentation does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or
dispose of any Oando PLC (the “Company”) shares or other securities.
This presentation includes certain forward looking statements with respect to certain development
projects, potential collaborative partnerships, results of operations and certain plans and objectives of the
Company including, in particular and without limitation, the statements regarding potential sales revenues
from projects, both current and under development, possible launch dates for new projects, and any
revenue and profit guidance. By their very nature forward looking statements involve risk and uncertainty
that could cause actual results and developments to differ materially from those expressed or implied. The
significant risks related to the Company’s business which could cause the Company’s actual results and
developments to differ materially from those forward looking statements are discussed in the Company’s
annual report and other filings. All forward looking statements in this presentation are based on
information known to the Company on the date hereof. The Company will not publicly update or revise any
forward looking statements, whether as a result of new information, future events or otherwise.
Past performance is no guide to future performance and persons needing advice should consult an
independent financial adviser.
Oando PLC
2
Asset Overview
Oando is the leading indigenous oil and gas player in Nigeria
Upstream Division
Midstream Division
Market
Position
Exploration &
Production
A leading indigenous player
Description
• Rapidly expanding
business line
• Primary assets are located
in Nigeria
Key
Assets
#1
• Largest swamp drilling
fleet in Nigeria
Gas &
Power
#1
• First private sector
company to enter gas
distribution in Nigeria
• Consists of:
• GNL
• APL
• EHGC
• CHGC
• 94.6% ownership of OER
• Producing assets: OML
Oando PLC
Energy
Services
125 & OML 56.
• Development & appraisal:
OML 134, OML 90, OML
13 & OPL 236.
• Exploration: OPL 278,
OPL 282, OPL 321, OPL
323, OML122, JDZ, Block
26 & Rubai Licences
• 4 swamp rigs: 3 Working
Assets and 1 under
refurbishment.
• Drill bits and engineering
services
• Total fluids management.
Downstream Division
• 100 km gas distribution
pipeline in Lagos.
• 128 km gas pipeline in the
East of Nigeria spanning
Akwa Ibom and Cross
River states.
• Akute captive Power Plant
• Riv Gas.
• Central Processing
Facility
Supply &
Trading
Marketing
#1
• Largest indigenous
#1
• Nigeria’s leading retailer
supply and trading player
in the sub-Saharan
region.
•
• 12% market share in PMS
importation.
• Trading desks and
operations in Nigeria and
Bermuda.
• Trading consultants in the
UK and Singapore.
of refined petroleum
products with 13%
market share.
Large distribution
footprint with access to
over 1,500 trucks and
150m litres storage
capacity.
• 500+ retail outlets in
Nigeria, Ghana and Togo
• 8 terminals (159.5ML)
• 3 Aviation fuel depots
• 2 lube blending plants
•
(55m litres / annum)
7 LPG filling plants
6
Oando Energy Resources
www.oandoenergyresources.com
Oando PLC
9
9
Disclaimer
This presentation does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or
dispose of any Oando Energy Resources Inc (the “Company”) shares or other securities.
This presentation includes certain forward looking statements with respect to certain development
projects, potential collaborative partnerships, results of operations and certain plans and objectives of the
Company including, in particular and without limitation, the statements regarding potential sales revenues
from projects, both current and under development, possible launch dates for new projects, and any
revenue and profit guidance. By their very nature forward looking statements involve risk and uncertainty
that could cause actual results and developments to differ materially from those expressed or implied. The
significant risks related to the Company’s business which could cause the Company’s actual results and
developments to differ materially from those forward looking statements are discussed in the Company’s
annual report and other filings. All forward looking statements in this presentation are based on
information known to the Company on the date hereof. The Company will not publicly update or revise any
forward looking statements, whether as a result of new information, future events or otherwise.
Past performance is no guide to future performance and persons needing advice should consult an
independent financial adviser.
Oando PLC
10
Agenda
Oando PLC
I
The Nigerian Operating Environment
II
Company/Asset Overview
III
Future Strategy
11
The Nigerian Operating Environment
Oando PLC
12
Overview of the Geology of the Niger Delta
•
Niger delta basin lies in the Gulf of Guinea,
(western margin of Africa) The basin was
formed at the site of a rift triple junction
related to the opening of the South Atlantic
during the Jurassic – Cretaceous
•
The Niger Delta basin is bounded to the:
 North by Benin Flank
 West by Dahomey Basin
 North East by Abakaliki High,
 South by Atlantic Ocean
 East and South East by Calabar Flank
•
•
Dahomey
Basin
Areal extent of 300,000 Sq. km
Approximately up to 10km thickness of
sediments and a volume of 500,000 Km 3
Source: IHS
Oando PLC
13
Niger Delta Petroleum System
•
The Niger Delta basin is defined by the Tertiary
Akata - Agbada Petroleum system. The
components of the petroleum system are:

Source Rock: is made up of Akata Shale and
Interbedded shale of the Agbada Formation. The
Akata Shale is of marine origin, typically over
pressured and rarely penetrated by wells. The
Agabda shale is of deltaic origin

Reservoir Rock: Agbada sands and sandstones.
Agbada Formation has an estimated thickness of
up to 3700m and it overlays the Akata formation.

Seal Rocks: Interbedded shale of the Agbada
Formation

Traps: Mainly Structural (Faults and Rollover
Anticlines) and a few Stratigraphic

Migration pathways: Faults
Oando PLC
14
Nigeria: Evolution of Production by Sector
Militancy had major impact
on production, especially
onshore
Deepwater production,
increasingly important
Stalled investment from
PIB uncertainty
mbpd
3000
WoodMackenzie
Forecasts
2500
2000
1500
1000
500
0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Onshore
Oando PLC
Offshore
Deepwater
15
The Nigerian Upstream Opportunity
Capacity Utilization Capacity Utilization
Current Average Production (January-April): ~2.31mmbopd
New finds/assets:
~790kbopd
mmbopd
Unused capacity:
~900kbopd
347 Fields with 2P Reserves < 20mmboe & 230 Fields with
2P Reserves < 10mmboe
Recent Positive Steps
• Increased bilateral deals between IOCs and indigenous firms in
recent years.
Opportunities Available
• Indigenous independents can develop smaller fields that are
low on the IOCs priority lists
• Indigenous independents can also operate in areas IOCs
• There is renewed hope that the PIB will be passed soon
cannot due to community legacy issues
• The FGN’s 2020 production target will be achieved through:
• Favorable terms granted to indigenous companies will make
• Divestment programs by IOCs
prior non-profitable projects profitable.
• Governmental bid rounds
Source: Central Bank of Nigeria (CBN)
Oando PLC
16
Recent Divestments by IOCs in Nigeria
Over 1BnBOE acquired by Indigenous Companies in past 24 months
Buyer
NIGER DELTA
Seller
Asset
2P Reserves
MMBOE
Value
(US$MM)
Shell/Total/ENI
OML 34
400
600
1.5
Shell/Total/ENI
OML26
18
148
8.1
Shell/Total/ENI
OML’s 3, 38, 41
76
386
5.1
Shell/Total/ENI
OML 30
501
850
1.7
Shell/Total/ENI
OML 42
126
585
4.6
2P Implied Value
(US$/BOE)
EXPLORATION & PRODUCTION PLC
RC191616
Oando PLC
17
Company/Asset Overview
Oando PLC
19
OER Corporate Overview – Portfolio Built to deliver

Oando Energy Resources (OER) has an ownership interest as follows:
Oando:


94.6%
Public: 5.4%
Turkey
OER’s current portfolio consists of interests in 11 upstream acreages :

7 (Nigeria)

2 (EEZ)

1 (Zambia)

1(Turkey)

The portfolio of assets are at varying stages of upstream operations –
exploration, development and production.

Net production average Ytd is currently at 4.2Kbopd made up from
production from 2 of its assets: OML 125 (3,500 bopd) and the
Ebendo field (OML 56) (700bopd).
Oando PLC
Nigeria
JDZ
Zambia
20
The OER Portfolio – Gulf of Guinea
Nigeria
OPL 321/323
Acquired 2009
30% W.I.
Asset in Exploration Phase
OML125 -Abo
Acquired 2008.
15% W.I.
Producing - Net avg.
3,800bopd
OML134 - Oberan
Acquired 2008.
15% W.I.
Currently under appraisal
OML 122 - Bilabiri
/Owanare
Acquired 2009
5% Oil /12% Gas W.I.
Asset in Exploration Phase
Oando PLC
OML
321
OML
125
OB/OB – OML 56
OML
323
Akepo – OML
90
Cameroon
OML
134
OML
122
OML90 -Akepo
Acquired 2008
40% W.I.
Farm –in/ FTMSA
Well head & Pipeline under
Construction
Malabo
Equ.itorial Guinea
Sao Tome
and
Principe
EEZ
Block 5
OML56 –OB/OB
Acquired 2003.
45% W.I.
Producing - Net 700bopd
Well campaign on going
Equatori
al
Guinea
EEZ Block 12
Gabon
EEZ 5
Acquired 2009
WI: PSC Signed
Asset in Exploration Phase
EEZ 12
Acquired 2009
WI: PSC Negotiation
Ongoing
Asset in Exploration Phase
21
The OER Portfolio – Zambia and Turkey
OER was granted an investment license for Block 26 in
northeastern Zambia. The country has remained largely underexplored with only two exploration wells drilled to date with
neither reaching their intended targets.
OER is currently reviewing data including existing seismic that
was acquired during the previous exploration campaign in the
1980′s, and undertaking geochemical surveys to establish the
potential for oil and gas in the country. In the meantime,
OER has set up a local Zambian office and registered as a
local company.
Oando PLC
A 50% Equity interest block 2600 (Valeura 50%, Exile
50%), which contains the Bostanci prospect. The Licence
was awarded to Valeura in May 2012, and Exile is entitled
to 50% equity under the terms of a joint bidding
agreement signed in 2011.
A 12.5% equity interest is held in a separate Licence 4244
operated by GYP, with partner Aladdin. This was acquired
in return for $750,000 of unused expenditure incurred by
Exile on the Bostanci prospect in 2011. The Serince-1 well
is due to be tested later this year after encountering oil in
tight Cretaceous Mardin Group limestone reservoirs.
22
The OER Portfolio – Gulf of Guinea
Net WI Reserves (mboe)(a)
Block
Worki
ng
Intere
Type
st
Area
(km2)
Water
Depth
(m)
Operator
Net WI Resources (mboe) (a)
1P
2P
3P
1C
2C
3C
Status
OML 125 (Abo)
Oil
15%
1,220
550 – 700 ENI (Agip)
2.35
3.20
5.58
2.23
4.31
6.49
Producing
OML 134
Oil
15%
1,187
550 – 700 ENI (Agip)
-
-
-
5.60
9.58
14.01
Appraisal
Oil
45%
69
Onshore
Energia
3.78
5.68
7.57
0.24
0.53
0.85
Producing
Oil
30%
26
<20
Sogenal(d)
0.50
0.75
0.90
-
-
-
Development
Oil
40%
26
<20
Network
E&P
-
4.53
9.19
88.80
191.60
312.00
Development
OML 122
Oil /
Gas
5%
Oil(a)
12%
Gas
1,599
110-150
Peak
-
-
-
0.14
0.22
0.30
OPL 323
Oil
30%
1,034
890-2,080
KNOC
-
-
-
-
-
-
Exploration
OPL 321
Oil
30%
1,113
KNOC
-
-
-
-
-
Exploration
JDZ Block 2
Oil
9%
692
Sinopec
-
-
-
-
-
-
Equator
-
-
-
-
-
-
14.16
23.24
97.01
Obodeti /
Obodugwa
(OML 56)
Akepo (OML
90)(c)
Qua Ibo (OML
13)
EEZ Blocks 5
TBD 100%
2800
1,9002,600
1,5001,900
2,0602,609
Total
Oando PLC
6.63
Source: OEPL, RPS Energy
(a)
Gross of royalties
(b)
Operator estimates as of Aug-2009 adjusted for subsequent production
(c)
(d)
(e)
206.24
Appraisal
Appraisal /
Exploration
PSC
Negotiations
333.65
Assuming 77% of Akepo field for OML 90
Oando is the technical partner on this field
Gas resources have been converted to oil equivalent resources at a ratio of 6 back : 1 mob
23
5 Year Business Plan
Oando PLC
24
24
5 Year Capex Plan
Drilling
Facilities
Other
2012
Q3
Activity
H1
Akepo
Wellhead Jacket
Pipeline
CPF
Project Management
Logistics Support
Total
Qua Ibo
Acquire
Petroleum Engineering
Project Delivery Office
Supply Chain Mangement
Facilities
Wells
License To Operate
Total
Ebendo
Ebendo 4: Drilling
Ebendo 5: Drilling
Ebendo 6: Drilling
Ebendo 7: Drilling
Umugini Pipeline
Total
& Completion
& Completion
& Completion
& Completion
OML 125
Abo-9 Work-Over
Abo-4 Sidetrack
Abo-8 completion
Abo-3 Sidetrack
Abo-12 Drilling
Abo-12 Completion
Facilities & Other Capex
Exploration and Appraisal Drilling
Total
3.1
0.2
0.4
3.7
Oando PLC
3.6
3.3
1.2
0.4
0.6
9.1
Q1
0.6
4.9
0.1
0.1
0.2
5.9
Q2
-
2.2
Q3
-
Q4
-
2014
Yr
2015
Yr
2016
Yr
2017
Yr
-
-
-
-
-
1.5
0.1
6.0
8.3
7.1
0.1
0.7
0.2
8.2
19.0
0.6
28.8
1.7
0.4
20.4
1.0
23.6
5.5
5.4
4.0
5.5
1.8
1.4
10.9
5.5
5.5
1.8
1.4
-
-
-
1.8
1.8
6.8
5.0
3.2
15.0
4.4
3.2
7.5
-
2.0
2.0
-
-
-
27.4
27.4
12.2
12.2
-
10.5
12.0
1.7
8.8
3.1
7.1
3.2
4.8
3.2
15.1
9.2
10.5
9.3
13.5
7.4
0.4
7.4
OML 134
Seismic, G&G, Other Capex
Appraisal Wells& long lead items
Well test
Development Wells & long lead items
Total
Other Assets
EEL
OML 122
Current Portfolio CapEx Budget
2013
Q4
17.1
9.6
7.2
8.6
13.5
3.3
27.6
12.6
13.5
-
-
29.3
1.0
14.1
3.6
-
3.2
29.7
-
-
-
-
-
-
18.7
10.5
45.0
57.0
82.5
82.5
74.0
51.4
37.9
80.0
149.2
82.5
2.0
126.4
25
5 Year Capex Plan - Growth Opportunities
Drilling
Facilities
Other
Activity
2012
H1
Current Portfolio CapEx Budget
2013
Q3
29.7
Q4
-
Q1
126.4
Q2
-
2014
2015
2016
2017
Q4
Yr
Yr
Yr
Yr
-
74.0
51.4
37.9
149.2
82.5
55.8
-
-
-
-
-
7.5
-
-
-
Q3
-
GROWTH PLAN
MF1 (10mmbbls Field)
25.0
25.0
5.8
Well 1: Drilling & Completion
Well 2: Drilling & Completion
Facilities
Total
-
-
-
-
-
MF2 (50mmbbls Field)
100.0
Phase 1 Drilling & Completion (4 Wells)
Phase 2 Drilling & Completion (6 Wells)
Facilities
Total
-
-
-
-
-
-
-
11.7
150.0
9.8
111.7
159.8
7.5
MF3 (10mmbbls Field)
25.0
25.0
5.8
Well 1: Drilling & Completion
Well 2: Drilling & Completion
Facilities
Total
-
-
-
-
-
-
-
-
55.8
ADMS 1
25.0
Well 1: Drilling & Completion
Well 2: Drilling & Completion
Facilities
Total
Growth Opportunities CapEx Budget
Annual Total
Total CapEx Spend for 5 year Period
CapEx on Existing Portfolio
CapEx on Growth Opportunities
Oando PLC
25.0
2.5
8.8
-
-
-
-
-
-
-
-
-
33.8
27.5
29.7
-
126.4
-
-
55.8
-
129.8
111.7
163.2
215.6
253.4
41.3
190.5
27.5
110.0
$1,003.3
$551.1
$451.9
26
www.oandoenergyresources.com
Oando PLC
31