SUMATEC
Transcription
SUMATEC
SUMATEC Sumatec Resources Berhad EGM 21st June 2013 EGM 21 June 2013 Presentation to Shareholders By Chris Dalton Chief Executive Officer THE Leading Malaysian Independent Oil & Gas Company SUMATEC THE Leading Malaysian Independent Oil & Gas Company Key Messages • Deliver Long Term Profitable Growth g • Proven Mature Asset Portfolio Proven Mature Asset Portfolio • Creating Value for Share Holders SUMATEC THE Leading Malaysian Independent Oil & Gas Company Why Sumatec is Different! O Operator: E&P’s t E&P’ E& &P Exploration Companies SUMATEC Hibiscus Equity / Concession Production Sharing Contracts (PSC) Joint Investment Agreements (JIA) Scomi Sco S SapuraKencana K Service Uzma UMW Dialog a og Wah Seong Service Companies SUMATEC Risk Service Contracts THE Leading Malaysian Independent Oil & Gas Company Why Kazakhstan Largest land locked country & Largest land locked country & th 9 largest globally GDP Per Capita 13,892USD (2012 estimate) Geopolitical Advantages Developed economy and legal system Stable political environment Well established Oil & Gas legislation Established export routes for sale of hydrocarbons Concession contracts as opposed to PSC & RSC Geological Advantages Geological Advantages 30billion bbls of proven reserves (ranked 11th in the world, largest in central asia) 1.6mmbbl/day production, double by 2020 Low risk onshore mature assets High potential of increasing reserves in our asset High potential of increasing reserves in our asset SUMATEC THE Leading Malaysian Independent Oil & Gas Company Why Mature Assets • 70% of world production is from Mature Assets 70% of world production is from Mature Assets • New Technology is increasing recovery factor (RF) from 20% to 40% • Many Mature Assets today have only 15‐20% RF, leaving un tapped potential • Majority of Assets are too small for Super Majors to operate at a cost effective level • Proven Reserves & Track Record Reduces Capital Risk Proven Reserves & Track Record Reduces Capital Risk 3 - 5years <1 yr Bidding/ Acquisition Exploration • Licensing Round • Contract Negotiation • Work Program • Fiscal Regime • • • • $5-10m USD D million 140 120 Risk Profile 100 1 yr 40 15 – 20 years Appraisal Early Production Commercial Scale Production Geological Study Seismic Survey Exploration Wells Reservoir Mapping • Delineation wells • Confirm Reserves • Development Concepts • Construction of surface facilities • Drilling of production wells • Upgrade surface facilities • Expanded drilling program $30-40m $15-20m $30-40m More than $50m • Hi High h risk i k mainly i l on exploration l ti • Low certainty of oil/gas content • If there is no oil and gas find, the exploration costs will be totally lost 80 60 2 – 3 years • No more exploration risk • Oil reserves confirmed and certified Cumulative Cost Profile 20 C Current status off Rakushechnoye SUMATEC THE Leading Malaysian Independent Oil & Gas Company Rakushechnoye Investment What will Sumatec pay: • 10M USD Signature Bonus • 85M USD Historical Costs • 40M USD Performance Guarantee to be offset against Royalty @ USD5/BBL What will Sumatec receive: Wh t ill S t i • 100% of Net Income for first 2M BBLS • 50% of Net Income after 2M • Concession period to 2025, can be extended with approval of RoK Concession period to 2025 can be extended with approval of RoK MOG • All CAPEX & OPEX recovered as part of petroleum operations • Sustainable growth in PROVEN Mature Asset • Initial Investment recovered in first 3 years profits Initial Investment recovered in first 3 years profits SUMATEC THE Leading Malaysian Independent Oil & Gas Company Entry Price for Sumatec Compared to Peers SUMATEC THE Leading Malaysian Independent Oil & Gas Company Rakushechnoye Field is a Mature Asset • Concession area: 354km2 with subsurface user rights till 2025 • 1st Well Drilled in 1974 •47 Wells Drilled •3D Seismic acquired 2008 SUMATEC THE Leading Malaysian Independent Oil & Gas Company Rakushechnoye Field Reserves (mmboe) Oil Gas Total Oil and Gas 8 gas / gas condensate, Proved 5.2 17.2 22.4 2 oil saturated. Proved + Probable 32.8 89.3 122.1 10 Reservoir Zones: 4.7 mmbbl of oil and 51BSCF of Gas has been produced which is less than 10% of the original oil and gas Proved + Probable + 74.7 257.0 Possible 6000SCF = 1BOE 6000SCF = 1BOE. Reserves Certified by SRK Consulting (Australia) Pty Ltd February 2013 in place 331.7 Conservative RF: “20% RF for Oil & 25% RF for Gas” Reserves from 9% of Concession Area Identified Hydrocarbons in south with potential to double total reserves SUMATEC THE Leading Malaysian Independent Oil & Gas Company Proved Reserves is Low Risk, High Potential of Additional Reserves dd l • Normally pressured at reservoir • Compartmentalized in the north , a lot of by passed oil • Two main reservoir drainage areas – north – commercial , South untested • Formations have more lateral extension compared to north. • Less faulting, natural closures • Southern area yet to be tested for commercial potential. Is not part of 2P reserve calculations • Triassic reservoir: gas condensate and oil SUMATEC THE Leading Malaysian Independent Oil & Gas Company Rakushechnoye Development Schedule Phase 1: Phase 2: Phase 3: 2013 2014‐2015 2016> Sti l ti & W k Stimulation & Workovers Sid t k Sidetracks N W ll New Wells 1000‐2000bbl/day 4000‐6000bbl/day >8000bb/day Oil Production Oil & Condensate Production with Gas Injection with Gas Injection Oil & Gas Production New Storage Facility New Processing & Injection Facilities Pipeline for Oil & Gas Export SUMATEC THE Leading Malaysian Independent Oil & Gas Company Risk Assessment SUMATEC THE Leading Malaysian Independent Oil & Gas Company 5 Year Business Targets Large Independent Oil & Gas Company >200 million bbls Proved Reserves 8000bbls/day (2.9M bbl/year) 2 Million Bbls From Rakushechnoye New Acquisitions Revenue RM Rakushechnoye y Operations Rakushechnoye SUMATEC THE Leading Malaysian Independent Oil & Gas Company SUMATEC Oil & GAS New Management and Strategy N B d f Di New Board of Directors & Top Level Management &T L lM Safety Culture embedded in all out activities Minimizing Environmental Impact Focus on Innovation and Efficiency High High Ethical Standards demanded from all employees Ethical Standards demanded from all employees Rebranding of the Company SUMATEC THE Leading Malaysian Independent Oil & Gas Company Redesigned www.sumatec.com Launched Today SUMATEC THE Leading Malaysian Independent Oil & Gas Company New Investor Relations Section SUMATEC THE Leading Malaysian Independent Oil & Gas Company New Management Executive Team Executive Team Chris Dalton Chief Executive Officer Joined Sumatec June 2012 17 Year Industry Experience 17 Year Industry Experience with Halliburton Chingis Nabiyev Technical Director Based in Almaty To Be Appointed in August 2013 August 2013 13 Years Industry Experience with Schlumberger SUMATEC Zulkifly Mohamad Chief Operations Officer Based in Almaty T B A To Be Appointed in August 2013 i t di A t 2013 30+ Years Industry Experience with Schlumberger including 10 Years as Country Manager in Kazakhstan Technical Leaders Samuel Elliot Harvey Operations Director Based in Aktau To Be Appointed in August 2013 15 Years Industry Experience with Schlumberger Roshidah Abdullah Chief Financial Officer Joined Sumatec June 2013 24 Years Experience in Financial 24 Years Experience in Financial Management & Operations Bakhtiyar Jexenbiyev QHSE Director Based in Aktau To Be Appointed in August 2013 12 Years Industry Experience with Multi‐National Corporations THE Leading Malaysian Independent Oil & Gas Company Management KPIs Shareholder Value Staff & Talent Company Values C t Cost per bbl bbl SUMATEC Daily Production Production Increase Total Total Reserves THE Leading Malaysian Independent Oil & Gas Company SUMATEC Oil & GAS THE leading Malaysian Independent Oil & Gas Company Deliver Long Term Profitable Growth Proven Mature Asset Portfolio Creating Value for Share holders SUMATEC • Large Independent • Sustainable growth from initial proven reserves • Rakuschechnoye Low Risk / High Potential • Acquire own Assets with 24 months A i A i h 24 h • Free Cash Flow from Oil Sales Free Cash Flow from Oil Sales • Attractive Profit Margin & Dividend THE Leading Malaysian Independent Oil & Gas Company