Corporate Profile

Corporate Profile
July 2015
July 2015 | Strictly Private & Confidential
Energean at a glance
•
A private E&P company focused on the Mediterranean
and Africa, with a successful track record of over 30
years as an offshore operator and outstanding growth
prospectivity
•
A full E&P lifecycle company with assets in Greece,
Egypt and Israel and ongoing bid in Montenegro
•
Material 2P reserves of 30 mmboe (98% oil) and 1P of
16 mmboe (99% oil), which support an almost fivefold
increase of current production
•
Strong 2C resources of 27.5 mmboe provide basis for
future organic growth
•
Attractive fiscal teams and cash flow visibility
supported by BP 6 year off-take agreement
•
Unparalleled proven HSE
environmentally sensitive area
•
track
record
in
Highly qualified and experienced management team,
including founding shareholders with >US$80mn
investment in the company
•
Equity investment of US$100mn from Third Point in
early 2013
2
1
2
3
4
Greece
Egypt
Montenegro
Summarized Assets
ASSETS
Developed
GREECE
EGYPT
MONTENEGRO
• Prinos (oil field)
• Prinos North (oil field)
• South Kavala (gas field)
100% WI
Undeveloped
• Epsilon (oil field)
• Prinos (oil field
• Prinos North (oil field)
100% WI
• Prinos
• South Kavala
100% WI
Exploration
• West Kom Ombo
60% WI
• Ioannina 100% WI
• Katakolo 60% WI
Exploration BID ROUND
15 July 2015
Bid round
• Arta-Preveza 100% WI
• Aitoloakarnania 100% WI
Bid round
• 3 blocks 5/10/30
60% WI
7-year Operations Plan
GREECE- Development
Prinos
Epsilon
2015
2016
2017
2018
2019
2020
3
wells
4
wells
SIFT and
pipeline
construction
7 wells
ERD Well
(3 months)
Prinos North
GREECE - Exploration
Prinos
Ioannina
Katakolon
3D seismic,
340km2
Processing &
Interpretation
* Seismic reprocessing, Geological surveys,
* Full tensor gravity gradiometer and
aeromagnetic surveys.
Reprocessing of 3D data
Field development
studies
EGYPT - Exploration
West Kom Ombo
4 July 2015
15
2D Seismic
2 Exploration wells
Drill exploration wells
Drill 1st exploration
deep well
Early Oil Production phase
Drill 2nd exploration
deep well
Full field
development
decision
2021
Reserves & Resources
Production Increase from Low risk proven assets
Impressive Reserve Growth
35

2P Reserves (mmboe)
30
30
Impressive 2P reserves growth
enables rapid production increase
24
25
20
17
15
11
10
7
5
5
2
0
2008
2009
2010
2011
2012
2013
2014
Field Life CapEx & OpEx Break- Even Price(1)
Strong Reserves & Resources Position(1)
3.0
27.5
57.8
24.5
40
Low risk development plan enables
fast future resources to reserves
conversion
15.0
35
27.5
30.3
11.9
30.3
26,5
25
21
20
15
3.4
35
30
$/bbl

10
10 yr avg
5,400
bbls/d
10 yr avg
7,500 bbls/d
10 yr avg
10,000 bbls/d
1P
2P
3P
5
0
Prinos 2P
Prinos Epsilon 2P Total 2P
North 2P
2P Reserves (mmboe)
3
Note (1): Based on CPR produced by ERC on 30 June 2014
Prinos 2C Epsilon 2C Total 2C
2C Resources (mmboe)
Total 2P +
2C
Low Credit Risk Cash Inflow
Strong Shareholder Base
BP Offtake Agreement
 On 13th January 2014, The Greek Minister of
Environment, Energy and Climate Change, Mr. Yannis
Maniatis, and the CEO of Energean Oil & Gas, Mr.
Mathios Rigas signed a second amendment to the
Prinos Concession agreement
Shareholder Overview
 Third Point, a US institutional investor with more than
US$12bn under management, made an equity
investment of US$100mn in 2013 through its Third
Point Hellenic Recovery Fund, a fund which is
dedicated to investing in Greece
 Following the amendment, Energean signed a six-year
offtake agreement with BP for the entire oil production
of Prinos Basin
 Private founding shareholders in management
position have invested over US$80mn highlighting
their long-term commitment to the Company
 Being part of the OECD countries guarantees a smooth
and secure production flow without disruptions
 One of Energean’s founding shareholders has
ownership of Prime Marine, a global provider of
seaborne transportation of petroleum products and
gas, and operator of 21 product tankers and 7 LPG gas
tankers
 Transportation of produced oil through shipping
guarantees marketing flexibility
Third Point
45%
Founders
55%
Source: Company.
Group Affiliate in Shipping
•
•
Prime Marine is Energean’s Group affiliate
•
Currently operate a fleet of 36 double-hull product/chemical
tankers and LPG carriers with an overall carrying capacity of
over 2.4 million deadweight tons.
•
PRIME Tanker & PRIME Gas current counterparties are some
of the largest and best-known producers, traders and
transporters of oil / petroleum products as well as of LPG
respectively. PRIME Tanker is included in the top 25% of
Tanker Managers - upper quadrille.
•
Prime has established a reputation in the international
shipping community for the highest standards of safety,
performance and reliability, recently verified by a series of
vessel & office audit by a series of Oil Majors such as BP &
Chevron, as well as ISO-9001 & ISO 14001 certificates. PRIME is
Prime Tanker & Prime Gas are global provider of seaborne
transportation for refined petroleum products, light chemicals,
naphtha, LPG and ammonia along global shipping routes.
also registered with Lloyds Register for its Safety, Quality,
Environmental & Security Management Systems
•
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Prime’s management and operation team have more than
eighty years of combined industry experience having been
through a number of cycles.
Unique Operated Positions, Partnered with Blue Chip Players
Strong Strategic Partnerships
 The company has established partnerships with some of
the biggest names in the sector
Ocean Rig Strategic Cooperation
 Through the 50:50 with Ocean Rig, Energean has formed a powerhouse with unmatched experience and a strong track-record in
both exploration, development an production of hydrocarbons,
and deep-water drilling
 Aim of Ocean Energean will be to bid for deep-water blocks in East
Mediterranean, Africa and West/South Greece
 Ocean Rig owns and operates 11 offshore ultra-deep water semisubmersible drilling rigs and 9 ultra-deep water drill ships
 Ocean Rig has operating experience in harsh environments and in
the majority of deep-water areas in the globe
Off-Take
Agreements
6 year off-take agreement for the
entire production of Prinos basin
Technical Service
Agreement
50%
50%
Strategic Technical Partner for oil
& gas operation in Greece
Strong HSE Certification
Engineering &
Project Mgmt
Project Management of the Prinos
basin oil development project
 The long term success of the
business is the result of the
company’s ability to maintain
the quality of its service while
protecting people,
environment and property
Drilling Services
Independent
Auditors
Hydrocarbon Reserves & Resources
Offshore & onshore facility
integrity certification
Financial & Tax audit
Source: Company.
 Energean consistently follows
all national and international
rules and regulation governing
the Oil and Gas as well as the
shipping industry
Operations in Greece
Prinos
1





1




2




Note (1): Based on CPR produced by ERC
on 30 June 2014
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Operator: Energean Oil & Gas (100% WI)
Net 2P Reserves: 3.4 mmboe(1)
Current Production: 0.22 kbblpd(1)
One infill well planned
Operator: Energean Oil & Gas (100% WI)
Net 2P: 15.0 mmboe(1)
Net 2C Reserves: 3.0 mmboe(1)
Full field development plan tied back to existing
infrastructure
Ioannina
2
Production
Development
Exploration
Appraisal
Prinos North
Epsilon
1
3
Operator: Energean Oil & Gas (100% WI)
Net 2P Reserves: 12 mmboe(1)
Net 2C Reserves: 24.5 mmboe(1)
Current Production: 1.52 kbblpd(1)
Significant recovery potential through infill drilling
 Operator: Energean Oil & Gas (100% WI)
 Estimated recoverable reserves: 80 mmboe or 1 tcf
 Multiple play concepts
3
Katakolon




Operator: Energean Oil & Gas (60% WI)
Partner: Trajan Oil & Gas (40%)
Estimated recoverable reserves: 6 mmboe
Discovered in 1982, commerciality subject to develop.plan
Infrastructure Supports Fast & Low Complexity Resource Monetization
Onshore Infrastructure – Sigma Processing Plant
 Strategic geographic position in the Northeast Aegean in close
proximity to all major planned gas and oil pipelines as well as
access to the sea
 Connected to the Greek national gas and electricity grid
Facilities
 Crude oil desalination, dehydration, stabilization and storage
in three floating roof tanks with storage capacity of 500,000
bbls
 Gas treatment: dehydration, H2S removal and Natural gas
liquid recovery
 Residue gas compression and recycling offshore for gas lifting
 Sulphur Plant and storage facilities & sales to neighbouring
fertilizer plant
 17 MW Combined Cycle Power Plant with ability to expand
Offshore Infrastructure
 Two 4-leg oil production platforms
 An 8-leg processing platform
 A 4-leg unmanned gas production platform
 Fully integrated oil & gas pipeline system
 Offshore Loading System that can accommodate up to
Aframax tankers
No Abandonment Liabilities based on L2779/09
New Infrastructure to support the new Investment Plan
Own Drilling Rig – Energean Force
 Own offshore drilling rig for the first time in Greece (September 2014)
 Hull dimensions 300 ft.x90ft.x 20 ft. , 2 cranes 140ft. & 135ft.
 Water depth 13-220m (40-656ft), Well depth at 6,700m (20,000ft) max.
 2000HP, hoisting capacity 1000kips, 5 engines(diesel) X 1225KW
 Accommodation: 110 people
 Can operate at a maximum wave of 8,2 ft. at 11 sec. and at a maximum wave
speed of 40 knots
Self Installing Floating Platform (SIFT) – LAMDA
 A new innovative solution for field developments providing a cost effective
alternative to conventional fixed steel platforms; patented technology using a
combination of existing and proven technologies from deepwater Spars and
compliant structures, together with shallow foundations.
 It can be designed either as a production facility for a fixed water depth or with
an adjustment system allowing to be deployed across the range of water depths.
Platform Supply Vessel – Valiant Energy
 DNV-GL class rules & regulations, class notation: 1A1 Supply Vessel Fire
Fighter I and II OILREC E0, Length overall: 65,2m, Depth main deck:7,1m,
DWT 1,800 tons, Crew 22 persons. Owned since May 2014
 Able to support any drilling program, participate in anti-pollution and rescue
operations, collect and treat up to 155 persons on board
 Modern fire fighting systems (FF3 water, FF2 foam), water pump 7,500m3/h
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Low Risk Development Plan
Development Plan Overview
1.
Energean Force Rig and Barge
Prinos:
 7 Infill wells (sidetracks of existing wells)
2.
Prinos North:
 One production Extended Reach Well
3.
Epsilon:
 Installation of SIFT
 2 production wells first phase
 7 production/injection wells second phase
4.
Infrastructure:
 Pipelines fabricated locally
 Drilling using own rig and personnel
Prinos Platform Complex – 32 meters water depth
Source: Company.
SIFT Platform
New Prinos
ERD well
13
New 3D Seismic survey over Prinos - 2015




First 3D campaign using latest technology in
18 years in Greece
390 Km2 coverage
Target to identify stratigraphic traps and
better image the Prinos and Epsilon fields
In accordance with our commitment to the
Government in 2013, we are fully exploring
the Prinos basin
Polar Marquis
Artemis Arctic
14
Greek E&P Sector Overview
Recent Development Timeline
August 2011
New Legal Framework - L
4001/2011
Former legal institutional
framework related to the
procedure of granting
exploration/exploitation
rights was reformed with
new attractive and
investor-friendly legislation
February 2012
March 2012
Hellenic HydroCarbon
Management Company
S.A.
Re-established as the
hydrocarbon legislative
body in Greece after 12
years of inactivity
November 2012-January 2013
2012-2013 Open Door License
Round
Focused around 3 blocks:
Ioannina (onshore), Patraikos
(offshore), Katakolon (offshore)
11 companies participated
demonstrating a strong degree
of interest Receipt of total 8
bids
Energean awarded 2 out of 3
blocks as Operator
Energean Fiscal Terms
Seismic Surveys
2014/2015 License Rounds
Initial evaluation of seismic
survey data in the Ionian Sea
and south of Crete shows
geological structures similar
to oil-producing areas in
south-eastern Italy and
Albania
“Onshore Western Greece”: Individual
express of Interest for 3 onshore
blocks in Western Greece. Application
deadline February 6th, 2015.
“Greece Mega Project”: License round
for permits in the Ionian Sea, off the
country’s west coast, and south of the
island of Crete (20 blocks). Application
deadline: July 14th, 2015.
Hellenic Hydrocarbons Management
is coordinating the process
2014 / 2015 License Rounds

Contractor is subject to tax of 25% (20% income tax and 5% regional tax). Tax rate
will remain fixed during the term of the Contract as per ratification by Parliament in
2013

Contractor will be exempted from any general of special taxes, dues, stamp duties,
royalties, ordinary or extraordinary contributions
Royalties
The Contractor is obliged to pay the Greek State royalties ex post during the first
trimester immediately after the expiry of the calendar year to which they refer to

Royalties will be based on Contractor’s annual gross income generated by the sale of
petroleum, prior to the deduction of any expenses, according to a sliding scale of
average daily production as presented in the following table:
7
Total Royalties
Average Daily Production
0%
Up to 2,500 bbls
3%
From 2,501 to 5,000 bbls
6%
From 5,001 to 10,000 bbls
10%
> 10,001 bbls
February 2014
Greece
IonianWestern
Sea
3 onshore blocks/
Evaluation of offers
Greece Mega Project
20 offshore blocks/ open
New Bid Round “Onshore Western Greece”
Kavala,
Prinos
Ioannina
1. Arta-Preveza
2. Aitoloakarnania
Patraikos Gulf
3. NW Peloponnissos
Katakolon
16
3 onshore blocks on offer:
1. Arta-Preveza, 4928km2
2. Aitoloakarnania, 4564km2
3. NW Peloponnissos, 4148km2
2 bidding companies :
• Energean Oil & Gas
• Hellenic Petroleum
Energean bidded for 2 out of 3
blocks on offer
Tenders closed on Feb. 6th, 2015.
Operations in Egypt
West Kom Ombo (WKO)
Operator, 60% working interest
Limited 2D seismic coverage, 699 km
1st Exploration phase: 2 wells completed in 2011obligations completed
2nd Exploration phase (20,948 km2) in progress:
Aeromagnetic survey acquired and results currently
being evaluated
400 km2 new 2D seismic
2 new exploration wells
No financial commitment
17
One of three bidders in Montenegro
Prospectivity offshore Montenegro
- Plio- Pleistocene Biogenic gas
- Lower Tertiary Thermogenic gas
- Mesozoic black oil
Blocks applied by Energean
18
The shallow water offshore Montenegro is
the NW extension of the “Kruga” thrust
front onshore Albania, which has been well
studied and explored.
Exploring a New Area in the East Med
The Mesozoic productive basin in Albania known as the Ionian Zone continues south into Western Greece,
where it is under explored
Rospo Mare 1975
100 MMBO / 1 TCF
JJ-3 Chevron; Oil
DST
Shell/Petromana
s - 2014
~200 MMBO
Monti Alpi 1988
220 MMBO / 1 TCF
Patos Marinza
4 - 7 BBOIP
~650 MMBO /
0.5 TCF
~ 6 BBOIP
Tempa Rosa 1989
280 MMBOE EUR
Paxi-1 Esso; Oil
DST
Aquilla 1989
30 MMBOE Produced to
date
Katakolon
1981
6 MMBO
11
Other Projects
South Kavala Underground Gas Storage
Field Characteristics

South Kavala is an almost depleted, offshore gas field
producing since 1981 (85 % RF; 52 m water depth; GIIP
0.95*109 m3 )
 Turbiditic sandstone; Favg 22%; kavg 100 mD
 Evaporite top seal
 No aquifer
 Dry gas (0.14 mol% CO2)
 Pini 182 bar (current Pres 27bar), Tres 95 °C
 Located next to the Greek gas transportation network
 Ideal candidate for UGS
Gas initially in place
1 BCM
Remaining Gas in reservoir
150 MCM
Working gas
530 X 2 MCM
Max deliverability
9 mcm/day
Max injection
7,5 Mcm/day
Cycles per year
2
Max well-head pressure
180 barg
Number of wells
5
Gas pipeline diameter
30 inch
To be connected with a 32 km pipeline
Kappa platform
South Kavala reservoir
20
Sigma site
Total Investment: €400 million
The sole responsibility of this publication lies with the author. The European Union
s not responsible for any use that may be made of the information contained therein.
HSE Mission
To transfer our 34 Years experience of working safely in environmentally sensitive
locations in NE Greece to every area we operate
Zero accidents in
2013 & 2014
Kavala and Thasos:
16 blue flags every year
for the last 15 years
Prinos Production Complex: 18km from Kavala, 7km from Thasos Island
CSR - Strong Relationships with the local communities
Kavala Special Education High School- P.E and
educational equipment, April 2014
Donation for 100 vaccines for preschoolers,
Kavala, May 2014
Close collaboration with ΤΕΙ KAVALA:
90 hrs of training - 40 hrs of lectures- 10
scholarships for post graduate studies - 65
internships- 30 people employed, in 2007-2014
OUR VISION
is to become a leading independent E&P
company. Our primary objective is to create value for all our
stakeholders and be capable of sustainable economic growth,
by being dynamic and innovative. By adhering to our corporate
principles and values we aspire to be a responsible corporate
citizen and to be recognized as a global champion in
sustainability issues”.
Ioannina, Sponsorship of Europe- Africa Ski
Championship 35+, September 2014
22
Emergency response drill, December 2013 &
March 2014
Annual Volunteering Sea-shore Cleaning
Management Team
23
Board of Directors
Mathios Rigas - Chairman & Chief Executive Officer

Founding shareholder with a unique combination of Petroleum Engineering background and 20 years of
investment banking and private equity experience, primarily in the oil & gas sector
 Vice President of Shipping, Energy and Project Finance at Chase Manhattan Bank in London raised in excess of
US$5 billion in oil and gas financings
 Chairman of the Greek Society of Petroleum Engineers (SPE)
Panos Benos - Chief Financial Officer
 15 years international experience in the oil & gas sector, both in banking and industry, with a long track record of
upstream financings in emerging markets
 Joined Energean from Standard Chartered Bank, where he worked as a Director in the Oil & Gas team in London
delivered a number of award winning project and acquisition finance deals in Africa, Asia and Middle East.
 Previously worked for ConocoPhillips, where he held positions in European Treasury, North Sea Economics and
International Downstream
Stathis Topouzoglou – Director
•
Founding shareholder of the company and successful entrepreneur with more than 30 years
founding and growing companies in the energy transportation sector
•
Principal Shareholder and CEO of Prime Marine Corporation, a worldwide leading product tanker company with a
fleet of 26 modern product tankers, LPG and Ammonia carriers
•
Investments in the largest Solar Panels manufacturing company in Greece and in developments of Solar parks
experience in
David Bonnano, Director
•
Joined Third Point Hellenic Recovery Fund, L.P. in 2008. His focus is on special situation opportunities in the US
and Europe and is the primary investment professional responsible for all Third Point’s activities in Greece.
•
Previously served as associate in the Private Equity and Distressed Investments Group at Cerberus Capital
Management, L.P. and as analyst in the Restructuring and Reorganization Advisory Group at Rothschild Inc.
Scott Leslie, Director

Scott Leslie joined Third Point in 2009. His primary focus is on equity and credit opportunities in the energy sector.

Prior to joining Third Point, Mr. Leslie was an Associate in the Private Equity division at The Carlyle Group.
Previously, he was an analyst in the Financial Sponsors Group at Credit Suisse, where he focused on leveraged
finance transactions.
.
Senior Management
Dr. Stephen Moore – Group Technical Director
 E&P technical professional with 28 years’ experience at Shell, Maersk Oil and Mubadala
 Joined Energean from the position of Senior Vice President – Technical at Mubadala where he successfully
managed all technical functions of the company worldwide
 Dr. Moore has worked extensively in the FSU, the Middle East, SE Asia and the UK section of the North Sea
Andrew Grosse – Exploration Director
• Petroleum geoscientist with 34 years of oil industry experience.
• Previously Exploration & Technical Director for Sterling Energy plc, where he played a key role in building Sterling’s
portfolio in Africa and the Middle East.
• Prior to Sterling Energy, he served as British-Borneo's International Exploration Manager in the Gulf of Mexico, N.
Africa and Asia. He also worked for Gulf Oil in Canada and the US, BP Exploration and Ultramar Exploration
Henry B. David – New Business Development Manager
 Oil and gas explorationist with over 34 years of industry experience. Special emphasis on exploration project
execution and new business development in the international arena
 Since 2000, he has held multiple leadership roles with teams engaged in onshore and offshore exploration and
development, new opportunity evaluation and capture, divestitures / farm-outs, risk management, prospect / play
assessment, portfolio administration, basin studies
 Previously, International New Ventures Manager for Devon Energy, VP Exploration for Stratum Energy.
Wolfgang Lehnert, Well Engineering Manager
•
•
Petroleum engineer with drilling specialization with over 20 years of industry experience
•
Extensive experience in handling H2S environments, mature oil fields and over pressured reservoirs as well as working
in remote environments from desert to arctic and coping with international teams, in Europe, Russia, N. Africa and MENA.
•
Previously, he served as drilling engineer in senior positions for Wintershall Holding, Drilltec, Itag and RLG.
Joined Energean in 2014, from the position of the wells engineering manager at OMV Tunisia. He received the OMV
internal award for outstanding drilling and safety performance in 2012
Vassilis Zenios, Project Manager
•
•
•
25 years oil & gas experience, with onshore construction, pipelines and heavy lift installation Contractors.
Joined Energean in 2015, after working with Vesrabar Inc. for 10 years in innovative offshore heavy lift solutions and
execution services to operators, worldwide locations, notably the simultaneous raising of the LIMA field complex
platforms and bridges, East Java Sea Indonesia
15 years with Saipem, various worldwide locations performing fast track offshore pipelines and heavy lift projects
www.energean.com
Head Offices
Athens -Greece
Kavala - Greece
United Kingdom
Cyprus
Egypt
32, Kifissias Ave.
Atrina Center, 17th floor
151 25 Marousi
Tel: +30 210 81 74 200
Fax: +30 210 81 74 299
64006 Nea Karvali
P.O Box 8, Kavala
Greece
Tel: + 30 2510 317201
Fax:+ 30 2510 317204
7B Abbey Road,
NW8 9AA London
UK
Tel: +44 20 7286 6574
36, Vyronos
1506 Nicosia,
Cyprus
Τel: +35 722447444
Fax: +35 722447445
Building 1
Square 1169 Mokarar
Sheraton, Heliopolis
Cairo, Egypt
Tel.+202 22696484
Fax.+202 22696474
e-mail: [email protected]
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