Heritage Oil Plc Capital Markets Day, 30 January 2013 January 2013
Heritage Oil Plc
Capital Markets Day, 30 January 2013
January 2013
1
Disclaimer – Important Notice
1
Certain information in this presentation is based on management estimates. Such estimates have been made in good faith and represent the genuine belief of applicable members of management. Those management members believe that such estimates are founded on reasonable grounds. However, by their nature, estimates may not be correct or complete. Accordingly, no representation or warranty (express or implied) is given that such estimates are correct or complete. No representation or warranty (express or implied) is given that such estimates are so founded. Neither the Company nor J.P. Morgan Cazenove or Standard Bank undertake any obligation to correct or complete any estimate whether as a result of being aware of information (new or otherwise), future events or otherwise. Overseas shareholders This presentation has been prepared for the purposes of complying with English law and the Listing Rules of the FSA and information disclosed may not be the same as that which would have been prepared in accordance with the laws of jurisdictions outside England. Persons who are not resident in the United Kingdom may be affected by the laws of jurisdictions other than the United Kingdom. Such persons should inform themselves about and observe any applicable requirements of such jurisdictions. Any failure by such persons to comply with any applicable restrictions may constitute a violation of the securities laws of any such jurisdiction. To the fullest extent permitted by applicable law, the companies involved in the proposed Divestment, J.P. Morgan Cazenove and Standard Bank disclaim any responsibility or liability for the violation of such restrictions by any person. Copies of this presentation are not being, and must not be, mailed or otherwise forwarded, distributed or sent in, into or from any jurisdiction where to do so would constitute a breach of securities laws in that jurisdiction. Persons receiving this presentation (including custodians, nominees and trustees) should observe these restrictions and should not send or distribute this presentation in, into or from any such jurisdictions. CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION: This presentation includes statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements include, but are not limited to, statements with regard to the outcome of the exercise of the Shoreline Option, proposed Divestment, Loan, future production and grades, projections for sales growth, estimated revenues, reserves and resources, targets for cost savings, the construction cost of new projects, the timing and outcome of exploration projects and drilling programmes, projected capital expenditures, the timing of new projects, future cash flow and debt levels, the outlook for the prices of hydrocarbons, the integration of acquisitions, the outlook for economic recovery and trends in the trading environment, statements about strategies, cost synergies, revenue benefits or integration costs and production capacity and future production levels and timing, and may be (but are not necessarily) identified by the use of words such as “believes”, “estimates”, “plans”, “projects”, “anticipates”, “expects”, “intends”, “may”, “aims”, “plans”, “predicts”, “continues”, “assumes”, “positioned”, “will”, or “should” and other similar expressions that are predictions of or indicate future events and future trends or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include matters that are not historical facts and include statements regarding the Company’s intentions, beliefs or current expectations. An investor should not place undue reliance on forward-looking statements because, by their nature, they involve known and unknown risks, uncertainties and other factors and relate to events and depend on circumstances that may or may not occur in the future that are in many cases beyond the control of the Company. A number of factors could cause actual results and developments to differ materially from those expressed or implied by the forward-looking statements. In particular, there is no assurance that the conditions precedent to completion of the proposed Divestment will be satisfied or waived and the Company may not realise the anticipated benefits, operational and other synergies and/or cost savings from the proposed Divestment or the Loan repayment. Any forward-looking statements in this presentation reflect the Company’s view with respect to future events as at the date of this presentation and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Company’s operations, results of operations, growth strategy and liquidity. None of the Company, J.P. Morgan Cazenove or Standard Bank undertake any obligation publicly to release the results of any revisions or up-dates to any forward-looking statements in this presentation that may occur due to any change in its expectations or to reflect events or circumstances after the date of this presentation. Subject to certain exceptions, neither this presentation nor any copy of it may be taken or transmitted into the United States, its territories or possessions or distributed, directly or indirectly, in or into the United States, its territories or possessions. Neither this presentation nor any copy of it may be taken or transmitted into any other jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction or to any securities analyst or other person in any of those jurisdictions. Any failure to comply with this restriction may constitute a violation of United States or other applicable securities law. The distribution of this presentation in other jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. This presentation does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. The securities referred to herein have not been and will not be registered under the US Securities Act of 1933 (the “Securities Act”), and may not be offered or sold in the United States absent an exemption from, or in a transaction not subject to the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States. There will be no public offer of any securities of Heritage in the United States. The securities referred to herein have not been and will not be registered under the applicable securities laws of any other restricted jurisdiction and, subject to certain exceptions, may not be offered or sold within any jurisdiction where to do so would constitute a violation of the relevant laws or to any national, resident or citizen of such jurisdiction. This presentation constitutes an advertisement within the meaning of the Prospectus Rules of the FSA and is not a prospectus and has been prepared solely in connection with the proposed Divestment. Copies of certain corporate documents relating to certain matters discussed herein are/will be available from the Company’s registered office and from 34 Park Street, London, W1K 2JD and are/will be available for viewing on the Company’s website at www.heritageoilplc.com. Important Information This presentation does not constitute an offer to sell, or the solicitation of an offer to buy, exchange, or transfer any securities of Heritage. The value of ordinary shares of Heritage and exchangeable shares of Heritage Oil Corporation exchangeable into ordinary shares of Heritage can go down as well as up and past performance cannot be relied on as a guide to future performance. .
PRESENTATION OVERVIEW
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3
Capital Markets Morning
Section Presenter Page
Introduction and Overview Paul Atherton 5
OML 30 – Transaction Details and Overview Paul Atherton 19
OML 30 – The Assets, Fields, Infrastructure Steve Kobak 26
OML 30 – Field Development Steve Kobak 43
OML 30 – Environmental and CSR Kola Karim 54
Nigeria Kola Karim 57
Production – Russia Steve Kobak 61
Exploration Brian Smith 64
Summary Paul Atherton 75
4
Biographies
Steve Kobak, VP Production
Mr. Kobak, a qualified engineer, has 27 years of experience in oil and gas production operations, reservoir studies and asset
development. The companies he has worked for include ESSO, Shell International and Khanty Mansiysk Oil Corporation in
Western Siberia where he held senior management positions guiding technical and operations activities. He has extensive
international experience working in Russia, the Far East, Middle East and Canada. Mr. Kobak joined Heritage in 2007.
Brian Smith, VP Exploration
Mr. Smith has 30 years experience in the oil industry. He initially worked as an exploration geologist for Exxon in the North Sea
and Gulf of Mexico. Later he joined Enterprise Oil where he managed various exploration projects in the Far East and Eastern
Europe/FSU. He joined Heritage as Vice President, Exploration in 1997.
Kola Karim, Director Shoreline Natural Resources
Mr. Karim is Group CEO and Managing Director of Shoreline Energy and Shoreline Power. Mr. Karim holds an MBA from the
University of Leicester and degree in Business Management from City University; he is also an alumni member of the Harvard
Business School for the Executive Management Programme and the Harvard Kennedy School for the Leadership and Public
Policy programme. He was awarded Young Global Leader Award in 2008 by the World Economic Forum.
Paul Atherton – CFO, Director
Mr. Atherton is a qualified accountant, having qualified with Deloitte & Touche, and holds a degree in geology from Imperial
College London. He has a corporate finance background with specific experience in the international mining and resource
sectors. He joined Heritage in 2000 and subsequently joined the Board of Directors in 2005.
.
HERITAGE OVERVIEW
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6
Transformational Growth
2P Reserves
1999: 2.5 million barrels
2013: 412 million barrels
Production
1999: 367 bopd
2013: 11,583 bopd
Market Capitalisation
1999: US$13 million
2013: US$848 million
TSR Versus Peers Since TSX Listing, %
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Jan 99 Jan 01 Jan 03 Jan 05 Jan 07 Jan 09 Jan 11 Jan 13
Heritage Tullow Oil Premier Oil Soco International Afren Salamander Energy
Source: Factset and Datastream as of 25 January 2013
Cash raised from equity markets: US$370m
Cash raised through sale of assets: US$2bn
Dividend of c.US$500m paid in 2010
Ability to Deliver and Provide Substantial Growth
7
•Acquisition of a world class asset providing a step change in production, reserves and cash flow
•Creates a platform upon which to build within Nigeria Completion of OML 30 Acquisition
•Attractive valuation secured for a development asset with a significant future capital expenditure requirement
•Proceeds used to partially fund entry into Nigeria and also to continue exploration and development of the existing portfolio
Completion of Miran Disposal
•Strong balance sheet •Potential to develop and strengthen the portfolio through further acquisitions
Financial Flexibility
•Exceptional record of generating value and monetising assets •Raised US$2bn in asset sales with the current management team
Value Generation
•Look to acquire assets that are underdeveloped or overlooked •Early mover advantage
Strategic Advantage
•Discovered four of the five largest onshore discoveries in Sub-Saharan Africa (excluding Nigeria) in the last ten years
•Depth and breadth of industry experience Technical Skillset
•Ability to mitigate risk associated with political and security issues through local partners, on-the-ground experience and engagement with local communities
•Balanced portfolio of exploration and production assets
Management of Risk
Production
Exploration
Russia
95% Zapadno
Chumpasskoye
Produced c.617 bopd in Q3
2012.
Tanzania
29.9% Latham
100% Rukwa North Basin
100% Rukwa South Basin
100% Kyela
Work programmes on Rukwa
and Kyela have commenced.
Rukwa legacy 2D seismic has
been processed and additional
seismic is being acquired.
Kyela gravity survey has been
interpreted and seismic
acquisition has completed.
Malta
100% Area 2
100% Area 7
Well planning ongoing.
Pakistan
54% Sanjawi Block
48% Zamzama North Block
Initial interpretation of
existing seismic has identified
several prospects and leads.
Libya
Sahara Oil Services
51% equity interest and control
of Sahara Oil Services which
will provide access to the
Libyan oil industry.
Nigeria
OML 30
• Major interest in OML 30
through Shoreline Natural
Resources. Produced gross
c.35,7oo bopd in November
2012.
8
Diversified Portfolio Across Core Areas
Production
Exploration
89
67
44
21 16 14 12
0
25
50
75
100
412 380
296
185
130
75 62
0
100
200
300
400
500
Heritage Relative to Peer Group
9
2P Reserves, mmboe Market Capitalisation, US$ million
2013E Production, kbpoed
16,966
3,133
2,458
2,009
848 773 399
0
1,000
2,000
3,000
4,000
5,000
Source: Factset as of 25 January 2013, company reports, and Woodmac for Soco and Salamander Energy 2013E production estimates
FV/2P Reserves, US$/boe
46.5
16.4 14.1 13.4 11.4
3.4 2.3
0
10
20
30
40
50
OML 30 – DRIVING GROWTH
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Nigeria, OML 30
11
45% interest in OML 301 acquired by Shoreline Natural Resources (“Shoreline”)2
Onshore Nigeria, located less than 50 kilometres east of Warri
Lease covers 1,097 square kilometres with eight producing fields; Afiesere, Eriemu, Evwreni, Kokori, Oroni, Oweh, Olomoro-Oleh, Uzere West
850,000 bpd pipeline to export terminal
Gross production of c.35,700 bopd reported for November 2012 with the potential to significantly increase to c.100,000 bopd in the medium term and c.300,000 bopd in the long term, according to RPS evaluation
¹ OML 30 is 55% owned by Nigerian Petroleum Development Corporation (“NPDC”) 2 Shoreline equity split is 45% Heritage, 55% Shoreline Power Company
Local partner Shoreline Power is an indigenous pan-African energy and infrastructure business with an existing
network of strong and respected relationships within Nigeria
Heritage has a strong technical team with relevant geographic experience
Exposure to Nigeria
Proved reserves of 37.2 bn bbls2, the largest in sub-Saharan Africa, 2nd largest in Africa and 10th largest in the world
Largest African producer with 2.5 mmbbls per day, with well-established infrastructure from over 50 years of oil
production
Step change in net production to Heritage, increasing from 617 bopd in Q3 2012 to c.11,350 bopd year end exit rate
2P crude reserves net to Heritage increase from 65 mmbbls to 412 mmbbls
Combining Nigerian relationships with technical expertise
Acquisition of world class asset
Completed in November 2012, 45% interest in OML 30, located onshore Nigeria, acquired by Shoreline
Gross production c.35,700 bopd reported for November 2012
Largest ever upstream asset transaction in sub-Saharan Africa on a 2P basis1
OML 30 - A Transformational Acquisition
Diversification in core areas
Balancing exploration with production, within core geographic areas
Oil focused producing lease
1 Herold, based on publicly sourced data 2 BP Statistical Review 2012
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Step change in production and
reserves
Acquisition Provides A Step Change in Production and Reserves
Net Production, bopd Net Reserves, mmbbls
0
2,000
4,000
6,000
8,000
10,000
12,000
Heritage preacquisition
OML 30 Heritage postacquisition
13
0
150
300
450
Heritage preacquisition
OML 30 Heritage postacquisition
Production:
2013 average 45,000 bopd gross from OML 30, net to Heritage 2013 production is expected to be 14,300 bopd
2014 average 70,000 bopd gross from OML 30, net to Heritage 2014 production is expected to be 22,000 bopd
Reserves
OML 30 gross 2P reserves of 1,114 million barrels
2P crude reserves net to Heritage increase from 65 mmbbls to 412 mmbbls
Positioning Shoreline within Nigeria’s Indigenous Oil Sector
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0
100
200
300
400
500
600
2P Reserves, mmbbls Latest Reported Production, bopd
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Nigeria’s indigenous oil sector is being strengthened by asset divestments from IOCs over the past 3 years
Shoreline’s acquisition of OML 30 positions it as one of the largest indigenous oil companies in Nigeria
Establishes Shoreline with critical mass of reserves and production to be leading player in the Nigerian oil sector
Creates reputable platform with execution experience for potential future transactions
Recent Divestments
15
OML 30 is one of a number of licences that have been divested in the Niger Delta recently
OML 30 has been referred to as the premier asset due to location, reserves, current production, availability of facilities and proved development capability
Attractive Acquisition Metrics
US$ per 2P Reserves of Precedent Transactions1
¹ Based on 2P reserves at announcement. No “2P case” published for OML 42, RPS “mid-case” used as proxy Note: FV calculated based on market capitalisation from Factset as of 25 January 2013 and net debt from latest company filing
Attractive acquisition cost of US$1.7/2P reserves versus average of US$5.9 for precedent transactions
Significant discount compared to similar recent onshore transactions in Nigeria
Long-life asset with 2P reserve life of 87 years at current production of c. 35,000 bopd
OML 30 immediately cash generative upon completion
Comparable transactions based on onshore Nigeria assets sold during last 3 years by IOCs:
Oando acquisition of OML 60-63 announced December 2012 (yet to be completed)
Eland acquisition of OML 40 announced August 2012
Neconde acquisition of OML 42 announced April 2011
Afren/FHN acquisition of OML 26 announced October 2010
Maurel & Prom/Seplat acquisition of OMLs 4, 38 and 41 announced January 2010
FV/2P Comparison with Selected Peers, US$/boe
0
2
4
6
8
10
OML 30 OML 60 -63
OML 40 OML 42 OML 26 OML 4, 38,41
Average of precedents
16
46.5
16.4 14.1 13.4 11.4
3.4 2.3 1.7
0
10
20
30
40
50
OML 30 acquisition multiple
OML 30 – The Opportunity
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Over 200 wells have been drilled on the licence since 1961 with most drilling completed prior to 1992
All wells are producers as the reservoirs are underlain by a strong aquifer
Sporadic drilling as the licence was not considered core and therefore over-looked and under developed
Production from the licence commenced in 1963 and peaked in 1971 at c. 280,000 bopd
Over the period 2006 to 2009 production was severely impacted by both security and funding issues
These issues are less relevant for Shoreline and will make it easier to bring production back on
Production of c.35,700 bopd as at November 2012
Historical Oil Production, ‘000 bopd
Historical Drilling
0
50
100
150
200
250
300
0
5
10
15
20
25
30
Cu
mu
lati
ve
We
lls
We
lls
pe
r Y
ea
r
Wells Drilled Annually
Cumulative Wells
0
50
100
150
200
250
300
kB
op
d
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OML 30 - Independent Evaluation
OML 30 Summary of Reserves
Base Income Tax
Scenario1
($million)
Alternative Income
Tax Scenario2
($million)
Post–tax NPV (10%) Post–tax NPV (10%)
Proved Reserves (1P) 1,189 1,410
Proved & Probable
Reserves (2P) 2,162 2,652
Proved & Probable &
Possible Reserves (3P) 3,129 3,820
1 Assumes the income tax applicable under current Nigeria law 2 Assumes the income tax under changes to Nigerian Law which Heritage believes might occur
Gross
Remaining Reserves
Heritage Group
Net Entitlement
Reserves
Gross of
Royalty
Net of
Royalty
Gross of
Royalty
Net of
Royalty
(mmstb) (mmstb) (mmstb) (mmstb)
Proved Reserves (1P) 538 430 168 134
Proved & Probable
Reserves (2P) 1,114 891 347 277
Proved & Probable &
Possible Reserves (3P) 1,733 1,387 539 431
Independent evaluation of OML 30 and Heritage’s existing assets
2P valuation range of US$2.2 to US$2.7 billion at 10% discount
rate
RPS report does not factor in additional upside from gas reserves,
remaining undeveloped reservoirs and behind pipe reserves in
developed reservoirs where new wells are not expected
OML 30 Post-tax Valuation Net to Heritage
Transaction Details and Structure
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20
Combining Nigerian Relationships with Technical Expertise
Heritage Oil Plc
Shoreline Power
Financial strength
Technical and operational expertise
Experienced African operator and investor
Local knowledge and expertise
Operations throughout Nigeria and West Africa
Energy and infrastructure operating expertise
Network of contacts in the Nigerian oil and gas community
Acquisition Structure
OML 30 Oil mining lease in Nigeria
Vendors
US$850m
45% of OML 30
30%
55%
Leading auction
(indigenous Nigerian Company)
45%
10% 5%
Buyer
NPDC (Operator)
Capital Structure
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Shoreline Shareholder Arrangement & Debt Funding
55% equity interest 45% equity interest
OML 30
Shoreline Natural Resources is an indigenous company based on equity split; Shoreline Power holds 55%
Economic interest takes into account equity capital funded by each shareholder and profit share
Shoreline Power entitled to 2.5% profit share
Consideration for Shoreline Power Call Option is 30% of equity funding into Shoreline Natural Resources at time of exercise
Equity funding is through shareholder loans
Relationship between Heritage and Shoreline Power governed by shareholder agreement
Acquisition was funded through 18 month bridge loan facility of US$550 million into Shoreline Natural Resources from Standard Bank
Bridge facility has been syndicated to Nigerian banks and China Development Bank
Shoreline Natural Resources currently finalising options to re-finance the bridge facility with a 5-year debt instrument
45%
US$550 million bridge facility
The Operating Framework
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Shoreline owns a 45% interest in OML 30, NPDC own 55% and is operator
The two companies work under the terms of a Joint Operating Agreement which is typical within industry
Additionally, NPDC have solely entered into an agreement with Atlantic Energy, a Nigerian company, to provide financial and technical assistance for their 55% interest. Atlantic Energy provides technical services, preparing drilling plans as an example, supplies any cash shortfalls and is paid from the NPDC 55% share of revenues according to the terms of their agreement
Shoreline NPDC
SHELL OML 30 Operating Staff OML 30
Atlantic Energy
The Operating Relationship
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NPDC
Shoreline
SUBCOM
TECOM
OPCOM
OML 30 is managed along the lines of most JOA agreements
NPDC and Shoreline have established the OML 30 OPCOM to provide
recommendations on programmes, budgets and asset management.
OPCOM is composed of equal numbers from the two owners
OPCOM decides on items that will be accepted or require further study
Studies are carried out under the direction of SUBCOMs. Those studies
include all aspects of managing OML 30
SUBCOM recommendations are in turn passed to TECOM for technical
approval
When approved at OPCOM the issue is presented to NPDC and
Shoreline for approval
Shoreline sells its 45% of production through a five year marketing contract
with Shell and receives funds direct
The key to successful management and development of OML 30 is communication, respect and a shared vision
Profit-Sharing Agreement
24
Shoreline is an Indigenous Nigerian Company
Shareholder Agreement provides for an economic interest that is
different to the equity interest
Shoreline Power has exercised the option to acquire a 30%
participating economic interest, for which Heritage will receive
over US$100 million
Corporate Governance
Shareholder agreement applies corporate governance standards
and ensures management efficiency
Shareholder agreement covers matters requiring unanimous
approval
Five directors; two appointed by Heritage
Advisory board to include senior figures from local stakeholders
Strong Nigerian profile
Operatorship Post-Transaction
Operatorship is transferring to NPDC, a subsidiary of the state oil
company Nigerian National Petroleum Corporation (“NNPC”)
Highest quality members of existing Shell Nigeria operating team
will be transferred across
Shell is providing assistance during the transition period
Shoreline is one of the leading indigenous companies producing
in Nigeria
Combines Shoreline Power’s energy and infrastructure operating
expertise and respected network of relationships within Nigeria
with Heritage’s strong technical team with relevant geographic
expertise
Shoreline and Heritage are developing close relationships with
local communities and other stakeholders
Shoreline
Organogram of Shoreline
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VP Production
Production Technologist
Production Engineer
Reservoir Engineer
Facilities Engineer
Geologist
Geophysicist
Chief Executive Officer
Chief Operating Officer
Finance
Manager
Corporate Accountant
Accountant
Joint venture Operations Accountant
Joint Venture Accountant
Joint Venture Accountant
Technical Director
Production Engineer
Reservoir Engineer
Pipeline Engineer
Facilities Engineer
Geologist
Geophysicist
Head, Human Resources
Protocol Specialist
IT Specialist (PT)
Commercial Director
Secretary
CEO Assistant Lagos
Organisation London Nigeria Assets Technical
Organisation
Director and CFO
Chief Financial Controller
JV Accountant
London Finance Organisation
The Assets
26
Nigeria, OML 30
27
45% interest in OML 301 acquired by Shoreline
Onshore Nigeria, located less than 50 kilometres east of Warri, benefits from being on solid high ground
Lease covers 1,097 square kilometres with eight producing fields
In addition, there is one field not currently in production
850,000 bpd pipeline to export terminal
Infrastructure includes ullage to handle three times current production which is sufficient for near and medium term opportunities and the Trans Forcados Pipeline segment which will provide tariff income
Gross production of c.35,700 bopd reported for November 2012 with the potential to significantly increase to c.100,000 bopd in the medium term and c.300,000 bopd in the long term, according to the RPS evaluation
Contains nine flow stations with a combined capacity in excess of c.395,000 bpd
Associated gas facilities can handle c.42 mmscf/day collected from six flow stations
¹ OML 30 is 55% owned by Nigerian Petroleum Development Corporation (“NPDC”)
Geology
28
The Niger Delta
29
OML 30 lies within the Niger Delta, located in the Gulf of Guinea, one of the most prolific oil and gas provinces in the world
From the Eocene to the present, the delta has prograded south-westward, forming depobelts that represent the most active portion of the delta at each stage of its development
These depobelts form one of the largest regressive deltas in the world covering approximately 75,000 square kilometres with a source rock thickness of up to 7,000 metres
The Niger Delta cont’d
30
OML 30 fields are deltaic shallow marine shelf sands (usually shore face sands) at intermediate depth level in growth fault structural setting
Traps are typically related to rollover structures or anticlines of simple fault complexity
Progradation in the face of significant wave reworking has created sheet-like layers of shoreface sand with excellent reservoir quality
The wave action has created reservoirs with porosities of 20-30%
Permeability is typically greater than 500 mD and up to 3,000 mD
Reservoir Structure and Traps
31
The structural configuration in the Niger Delta can generally be characterized as simple rollover structures
The structure is associated with landward dips that are associated with structure building faults located in the northernmost fault blocks of the basin
Structures tend to be bounded down dip by another structure-building fault
OML 30 reservoirs are typically anticlines structures. Some are bound to the north east by faults
Stacked Reservoirs
32
The progradation of the Delta coupled with the sea level changes controlled depositional patterns and caused facies changes that have resulted in stacked reservoirs
Sands with thickness of 10 to 40 metres were sandwiched between shales that created sealing caps above reservoirs
The OML 30 fields each contain up to 40 stacked reservoirs. The seismic section for the Afiesere field shown at left contains twenty one such layers, or stacked reservoirs. The chart illustrates the reserves associated with those reservoirs
An alphanumeric system , that is unique to that field, is used to label the reservoirs. The top reservoir in Afiesere is the J1000 while the deepest reservoir is the M8200
Each layer exhibits different reservoir and hydrocarbon characteristics
Reservoirs contain different types of hydrocarbons ranging from under-saturated oil to gas-condensate
OML 30 reservoirs are typically normally or slightly over-pressured
The reservoirs are underlain by substantial aquifers that provide nearly infinite pressure support
The Fields
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Summary of Major Fields in OML 30
34
Major Fields Afiesere Eriemu Evwreni Kokori Olomoro-
Oleh Oroni Oweh
Uzere West
OML 30 Total
STOIIP (mmbbls)
897 1,003 412 1426 1,592 395 412 647 6,784
Production to date
(mmbbls) 189 76 52 383 383 40 40 122 1,285
Remaining Technical Resource
(mmbbls)1
368 49 170 260 78 65 130 1,120
Current production
(kbopd) 7 1 1 6 15 4 1 - 35
Discovered 1966 1961 1967 1960 1962 1965 1964 1963 -
First Production
1968 1964 1969 1966 1963 1970 1966 1965 -
Number of wells
41 20 14 40 40 8 11 16 190
¹ Based on RPS evaluation. Afiesere and Eriemu combined in RPS’s production forecast analysis
Infrastructure
35
Infrastructure Overview
36
The licence benefits from all infrastructure being in place
The licence includes 190 production wells, most are dual string. Injection wells and water injection facilities are unnecessary due to the strong aquifers
Well production is collected at one of nine flow stations. The flow stations have the capacity to handle 395,000 bpd, three times current production levels and will handle several years of projected production growth
The facilities are robustly designed and constructed and benefit from following a standard design so equipment can be easily replaced
The facilities have been maintained by Shell and therefore benefit from their worldwide experience and standards
Licence includes ownership of the Trans Forcados Pipeline that transports crude 95 kilometres to the Forcados Terminal
Field Flow Stations
37
Production for the wells is gathered at field specific flow stations
The flow stations separate liquid from gas through a simple two stage separation process
Liquids are then pumped via a trunk line collection system to a central manifold at Eriemu and onward through the Trans Forcados Pipeline
Gas is used as fuel for power generation, run the compressors and as gas lift gas. Any remaining gas is flared
Design of the flow stations follows a similar template, and vessels are similarly sized, making operations and maintenance straightforward
Capacity of the stations is listed at left. Total capacity is c. 395,000 bpd. Current throughput is c. 120,000 bpd so there is substantial existing capacity to accommodate future production. The expansion of the facilities is straightforward and has been documented in various FDP’s
Capacity
Flow Station bbl/d
Afiesere 60,000
Eriemu 30,000
Evwreni 30,000
Kokori 90,000
Olomoro-Oleh 60,000
Oroni 30,000
Osioka 15,000
Oweh 30,000
Uzere West 60,000
Gas Lift Compressors
38
Gas lift is the single method of artificial lift within OML 30
Six of the eight fields have gas lift installed. The two remaining fields are planned to have gas lift installed in 2014-2015
Poor compressor performance and high downtime are the cause of inefficient lifting and significant shortfall in daily production
Improving the performance of the gas lift system is projected to increase production by 20% and is the key target in 2013
Gaslift Number of Capacity
Compressor Station Units MMscf/d
Afiesere 5 21.2
Eriemu gas from Afiesere
Evwreni 0
Kokori 3 13.2
Olomoro-Oleh 7 40
Oroni 0
Oweh gas from Olomoro
Uzere West 2 10
Ughelli Pumping Station
39
The Ughelli Pumping Station, (“UPS”) is the collection hub for OML 30 and several other operators’ production
The facility has storage for 960,000 bpd of liquid and pumps the liquid from the tanks down the Trans Forcados Pipeline to the Forcados Crude Terminal
Three Solar turbine powered pumps having a total capacity of 660,000 bpd perform the pumping
The current facility is used to dewater crude for the Warri refinery. Crude is separated from water via gravity separation and pumped from the tank via a dedicated pipeline to the refinery
The 960,000 bbl of storage also provides several days of storage in the event of a shipping disruption on the Trans Forcados Pipeline
Future plans call for expansion of the water separation capacity by adding permanent subsurface water disposal facilities including conversion of a suspended well to an injector into the substantial aquifer and providing a water disposal line and injection pumping
Gas Export
40
Gas export, surplus to internal requirements for gas lift and fuel, is available for export via the Nigerian Gas Company (“NGC”) facilities
The NGC facilities include gas compressors and trunk lines for conserving gas. Total capacity is 42 MMscf/d
Gas is collected from the six largest OML 30 fields (Kokori, Afiesere, Eriemu, Oweh, Olomor Oleh and Uzere West) and transported to the nearby Ughelli gas plant where it enters the Nigerian domestic distribution system
At present, the system is non operational awaiting NGC to repair the gas gathering pipelines
OML 30 has a “domestic supply obligation” of 40 MMscf/d. In the event domestic demand requires it, the licence is expected to supply gas to the domestic and power generation markets of up to 40 MMscf/d. As gas supply far outweighs domestic demand, it is unlikely this obligation will be called on. In the event the supply is required, OML 30 can quickly recomplete an existing well on a gas reservoir and meet this commitment
2.5 TCF of gas in the licence not included in the RPS report
NGC Sales Capacity
Compressor Station MMscf/d
Afiesere 8.8
Eriemu 10.0
Kokori 8.0
Olomoro-Oleh 3.3
Oweh 5.5
Uzere West 6.6
Trans Forcados Pipeline
41
The TFP is owned by OML 30 (45% owned by Shoreline)
This satellite photo illustrates the route of the Trans Forcados Pipeline; stretching from the Eriemu manifold in the east, through the UPS, around the north of Warri and westwards through OML’s 34 and 42 to the Frocados terminal, located within OML 45, where the crude is dewatered
The TFP stretches some 95 km starting as a 16" pipeline at the Eriemu manifold in OML 30 increasing to 24” on exit from the UPS and increasing to 28” at the Rapele manifold
Along the pipeline there are several intermediate tie-in manifolds
Pipeline is buried
Forcados
Terminal
Forcados
River MF
Rapele
MF UPS
Eriemu
Field MF
Trans Forcados Pipeline
42
OML 30 owns and operates the TFP
Several other operators currently use the TFP to transport crude to Forcados for dewatering and export. Capacity of the line is 850k bpd. Current use is c. 315kbpd
These operators pay OML 30 a ‘Capacity tariff’ ranging from $0.11 to $0.87/bbl and a ‘Production charge’ of $0.17 to $0.44/bbl. The tariffs are based largely on the length of the line that is used
OML 30 does not pay a tariff
TFP projected tariff revenues total $57.4m. The 2012 actual Opex was $4.4m. Advice received from PWC is that the pipeline revenues will be taxed at a corporate income tax rate of 30%
Field Development
43
Current Production
44
OML 30 production since 1 July 2010 to 30 November 2012 is illustrated. Production averaged 35.7 kbopd during November 2012
Production from Uzere West, averaging 2.5 Kbopd has been shut-in since December 2011 due to community issues in the adjacent town of Uzere
0
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60
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OML 30 Licence Production: 01-07-2010 to 30-11-2012
UZRE OWEH ORNI OLOM
KOKR EVWR ERMU AFIE
Realising Existing Potential and Future Upside
45
Short term
Medium term
Long term
Increase production through:
Improved gas lift by refurbishing existing system
Complete repairs to flow and gas lines and tie-in wells
Prevent downtime through improved community relations and share in profits to reduce vandalism
Invest in facilities to increase uptime
Modernise facility control equipment to increase efficiency
Workover existing shut-in wells to improve completions and to install gas lift in wells without artificial lift
Large stock of proved drilling locations determined from 3D seismic
Upside potential through focused management of the field and employing techniques such as multiple completions and horizontal drilling
Future exploration of deeper targets identified on 3D seismic
Future gas prices may lead to developing gas reserves
Lease extension past 2019; expected to be renewed thereafter as legislation provides for extension
Production Profile
46
OML 30 Projected Gross Production, bopd1
¹ RPS estimates of OML 30 gross Proved plus Probable Reserves (2P) production profile
Key developments to drive increase in production;
Gas lift
Uphole potential and flowline repairs
Workovers
Further drilling
Exploration potential
Upsides to the base case include development of the asset’s 2.5 Tcf of gas and deeper exploration potential
0
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100,000
150,000
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300,000
350,000
The Work Programme – Gas Lift
47
Gas lift is the key short term focus
Compressors are operating below design capacity and require refurbishment (pistons, valves, gaskets, etc)
Current compressor uptime c. 65%. Target to increase to 95%. Resulting production gains c.10,000 bopd. Downtime caused by engines tripping due to mechanical integrity issues and fuel gas supply pressure. Study currently underway by the compressor manufacturer
Subsurface gas lift operation is inefficient
Valves not set at correct depths and not working as designed. Results in inefficient lifting and waste of gas lift gas
Detailed data gathering and well by well review underway with Government. Target is to optimise lift on 32 strings with associated production gains target of c.8,100 bopd
Gas lift not installed to all wells
As water cut increases gas lift is required to maintain production. At 70% watercut wells will stop flowing. Gas lift system to be expanded in fields that currently have compressors. Target is to install gas lift to 19 wells in 2013 and 2014. Resulting production gains c.4,300 bopd
Gas lift systems to be installed at Oroni and Evwreni fields (these two fields currently have flowing wells only). Production gains associated with installing gaslift in Oroni and Evwreni total 3,600 bopd
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25
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
We
lls
Gas Lift Optimisation and Expansion
Uzere West
Oweh
Oroni
Olomoro-Oleh
Kokori
Evwreni
Eriemu
Afiesere
The Work Programme – Flowline Repairs
48
Some wells have damaged or vandalised flowlines that require repairs
Flow lines are often ‘hack-sawed’ by locals to bunker small amounts of fuel or as vandalism
Plan is to ensure every well string has a functioning flow line
Twenty three wells do not have flow lines. Well surveillance and historical information indicates these wells are productive on the current completion but also could be recompleted on shallower reservoirs
Target production increase associated with flowlines is 6,300 bopd
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Flowline Repairs
Uzere West
Oweh
Oroni
Olomoro-Oleh
Kokori
Evwreni
Eriemu
Afiesere
The Work Programme – Workovers
49
The licence includes 190 wells. Among those, 70 wells are currently temporarily suspended for various issues. Among the 120 that are available to be produced, half are operating sub-optimally
Workovers are planned on wells to optimize gas lift design. Valves have been installed at the wrong depth and in many cases valves are not working. If the work cannot be completed using wireline equipment, a workover will be completed
The reservoirs are comprised of slightly unconsolidated sands and have typically been completed with gravel packs. Some wells are shut-in requiring workovers due to high sand production and require replacement of the gravel packs or installation of other sand control measures
Advancing aquifers cause increasing water production. Several opportunities to increase production by completing water-shut-offs. As deeper reservoirs become depleted wells can be recompleted on shallower reservoirs
So far 41 workovers have been identified with target gains totaling 9,600 bopd
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2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
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lls
Workovers
Uzere West
Oweh
Oroni
Olomoro-Oleh
Kokori
Evwreni
Eriemu
Afiesere
The Work Programme – Drilling Proved Locations
50
Of the current c.190 wells only 30 wells were drilled post the initial field development period that occurred between 1960 and 1980
The lack of continued development has resulted in an extensive catalogue of proved drilling locations, currently totaling c. 220
Potential well locations have been extensively studied and well documented in past FDP’s
Plan is to verify the technical work within the existing FDP and use these as guidelines for near term development
The existing FDP’s call for extensive development using horizontal drilling technology to reduce gas and water coning and to maximise recovery factors. Horizontal drilling is being used extensively in the region
Horizontal drilling is proven in the delta
Infill drilling is scheduled to commence in 2014. Tendering for the first drill rig is moving in parallel with a rig for an adjacent licence
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30
35
40
45
50
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
We
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Drilling
Uzere West
Oweh
Oroni
Olomoro-Oleh
Kokori
Evwreni
Eriemu
Afiesere
The Work Programme – Exploration of Deeper Targets
51
In Place Volumes
Prospect Oil MMbbls
Condensate MMbbls
Gas MMboe
Total MMboe
Uzere SP 26 88 1,128 308
Oroni DP 12 75 720 210
Oweh DP 7 60 497 153
Omogon Bik B 44 18 449 137
Eriemu N 11 30 433 114
Oweh NW 25 1 406 96
ODHE Lyede 3 7 492 95
Ofum E 28 1 337 87
Urhure 19 13 256 76
Isoko W 22 9 218 68
Oroni E 10 9 218 68
Ekiugbo 4 14 193 51
Ekiugbo N 1 4 50 13
Olomoro N 4 1 38 11
TOTAL 215 331 5,505 1,485
To date the extensive seismic information base has identified many prospects and leads
Development of the shallower producing reservoirs will provide opportunities to drill deeper and explore structures that have not yet been penetrated
As an example, the Omogon prospect, located southeast of Kokori, is illustrated below:
52
Gross CAPEX Projection
Facilities CAPEX investments, scheduled to be completed during 2013 to 2015 include;
compressor maintenance and expansion or refurbishment of the gas lift system - US$67m
installation of temporary and custody transfer metering - US$33m
modification to the Ughelli Pumping Station to provide water separation and additional facilities modernisation - US$65m
flowline repairs for existing wells - US$17m
workovers on existing wells to restore production - US$85m
CAPEX totals $3.5 billion (Gross 100%) US$1.6 billion Net Shoreline
Includes drilling of 218 new, primarily horizontal, wells
Cost of horizontal well US$15m
Drilling commences with first rig in 2014 and then one new rig added every six months
Maximum of six rigs peaks at end of 2016
Drilling ramps down in 2020 and ends in 2025
$0
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$700OML 30 Gross 100% CAPEX (US$m)
Netback per Barrel
53
Shoreline’s per barrel netback is US$26.75
The calculation follows the current fiscal assumptions
Royalty levied at a rate of 20% oil
Education Tax, levied as 2% * (revenue - royalty - Opex)
NDDC levy, levied as 3% * (total Capex + total Opex)
Annual licence rental payable at the rate of MOD US$ 1.1 mm
Petroleum Investment Allowance, 5% of annual tangible Capex
Income tax scenario
Oil Base Case, 65.75% for 5 years and 85% thereafter
Alternate case 65.75% for 5 years and 70% - 80% thereafter
Assumptions could change with new PIB regulations
Capex intangible/tangible split of approximately 30%/70% - depreciation 20% in years 1 to 4 and 19% in fifth year
Forcados crude receives c.3% premium to Brent
$26.75
$51.35
$5.00 $7.00 $1.70
$23.00
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$130
BARREL
OML 30 Net Back
Royalty NDDC LevyEducation Tax OpexCapex Petroleum Profits TaxNet Back
$115.00/bbl
Environmental and CSR
54
Set policies
Devise and maintain systems
Measure and monitor
performance
Communicate and report to stakeholders
Apply stakeholder
feedback
CSR is a Key Component of Enhancing Performance
55
Heritage Approach to CSR
Engage and work with stakeholders towards a shared future and to be viewed as a partner of choice
Committed to a programme of pro-active engagement to create lasting legacies for local communities
CSR policy framework is integrated in our business model, setting out our essential core values
Strong track record for health and safety
Employment of local personnel
Maximise local content of all contracts
Six Key Areas:
Environment and Sustainability
We aim to make a positive contribution to the protection of the environment
Health and Safety
A natural priority and core element of our activities
Employees
Ability to create sustainable value is linked to our ability to recruit, motivate and retain high calibre staff
Community and Human Rights
Relationships to be conducted sensitively and with mutual respect
Business Conduct
Heritage is resolutely opposed to bribery and corruption in whatever forms they may take
Corporate Governance
Compliant with law and relevant regulations
CSR in OML 30
56
Heritage Approach in Nigeria
Shoreline is structured as an indigenous company to incentivise local support
Profit share to support local communities and implement long-term sustainable development initiatives
Over 50 communities in the lease area
Internationally recognised environmental agency commissioned to review the lease
No identified legacy issues for Shoreline
OML 30 operational staff will be drawn from local communities
Growth in production will result in growth in employment
Advisory Group
Group already established
Consists of senior leaders from local communities
Regular dialogue with local communities
Focusing on education and healthcare
Nigeria
57
Exposure to Nigeria Provides Opportunities for Future Growth
58
Currently experiencing the longest period of democratic rule in its history with reforms positively impacting the economy
Availability of highly skilled workers
Growing economy
Second largest economy in Africa in GDP terms as at 2010
Predicted to be one of the largest growing emerging economies with growth expected in the energy sector
IMF forecasts a gradual lowering and stabilising of Nigerian inflation
Large reserves
First discovery made in Nigeria in 1956 and production commenced two years later
Proved reserves of 37.2 bn bbls1, the largest in sub-Saharan Africa, the 2nd largest in Africa after Libya and the 10th largest in the world
Largest African producer with 2.5 mmbbls/day
Ability to exploit attractive reserves close to infrastructure
¹ BP Statistical Review 2012
Proved Oil Reserves, bn bbls1
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200
250
300
Further Indigenisation of the Oil Industry
59
Large number of discovered but undeveloped fields with significant upside potential
Resource ownership and production has been dominated by the five major IOCs
Major IOCs are divesting existing leases/fields which are neglected
Expect indigenous independent companies to increase representation in terms of commercial reserves and production
Expected fiscal stability for indigenous companies within the proposed new Petroleum Industry Bill
The acquisition and partnership with Shoreline Power enhances Heritage’s profile in the country and creates a platform for further growth opportunities in this prolific hydrocarbon region
Resource Ownership in Nigeria, mmboe
47%
43%
5% 3% 1% 1%
Major IOCState ownedInternational NOCIndigenousInternational E&PInternational Integrated/large cap
Petroleum Industry Bill
60
Represents the largest overhaul of the government petroleum system in the last four decades
Bill has been debated since 2008 and is set to be the overriding guide for oil and gas business in Nigeria
Establishes the legal and regulatory framework, institutions and regulatory authorities for the Nigerian petroleum industry
Stipulates guidelines for operations in the upstream, midstream and downstream sectors
Combines 16 different Nigerian petroleum laws in one document, helping to provide transparency
It proposes:
A commercially run National Oil Company (NOC) and National Gas Company (NGC)
Tougher upstream licensing rules and work commitments, with more recycling of acreage
Oil and gas profits taxed as one
Nigerian Content Plan
Currently being discussed by Parliament however final promulgation unknown
Potential Impact on Shoreline
Expect indigenous companies to be the main beneficiaries
Improve tax and royalty terms for indigenous companies
Likely to result in divestment programmes for IOCs continuing
PRODUCTION - RUSSIA
61
62
Russia
95% equity interest in Zapadno Chumpasskoye Licence1
Licence located in Western Siberia (region accounts for >60% of Russia’s oil production)
Production in Q3 2012 averaged 617 bopd, a 9% increase over the first half of the year
RPS certified 65 mmboe and $336 million NPV10
Work in 2009/10 included installation of artificial lift and commencement of water injection
FDP approved by the Central Committee on Resource Development (TSKR) at end of December 2009
Infrastructure development includes tie-in to Transneft export pipeline
Successful completion of a horizontal well in August 2011
The horizontal well is the first such well drilled in the immediate area and presents a more effective and efficient method to develop the field
Based on the excellent horizontal drilling results, further horizontal wells are planned
¹ Acquired 95% ownership stake in Russian company ChumpassNefteDobycha Limited, 100% owner of the licence
Zapadno Chumpasskoye
63
Based on positive results from the horizontal well, a revised field development plan was submitted for Zapadno Chumpasskoye, replacing
vertical producers to horizontal wells. The drilling grid, utilising horizontal wells is illustrated below
The change in well type result is a 50% reduction in number of production wells required to develop the field and a corresponding reduction in
drilling capex of over US$200m
The development proposal was accepted by regulatory authorities end December 2012
EXPLORATION
64
65
Heritage’s Successful Track Record
Heritage Net 2P Resource (MMboe) vs Time Exploration Drilling Success
90% exploration success rate as operator
Additional 10 appraisal and production wells successfully drilled in Uganda, Kurdistan and Russia
Year-by-year proven success
Increased resource and reserve base over time
Proven success in divestment and monetising of resource base funding growth
Uganda 8 Wells
Kurdistan 2 Wells
Oil 60%
Gas and Condensate
30%
Dry 10%
-700
-550
-400
-250
-100
50
200
350
500
650
800
950
2008 2009 2010 2011 2012 2013
Russia Uganda Kurdistan Nigeria
Uganda sale
Kurdistan sale
Tanzania
66
67
Tanzania
The offshore Latham block is on trend with the recent major deep-water gas discoveries in Tanzania waters. Clear gas indicators are present within the block.
Acquisition of 3D seismic offshore completed and data being processed with a view to establishing a potential drilling location
Awarded Rukwa PSA in November 2011 and Kyela PSA in January 2012
Operations have commenced and the initial work programme comprises;
Rukwa - 2,300 kilometres of legacy 2D seismic data reprocessed. Acquisition has begun of an additional 650 kilometres of 2D seismic data to infill this legacy data
Kyela - full tensor gravity survey acquired, which has now been interpreted. Completed acquisition of 100 kilometres of 2D seismic data intended to further delineate features of interest identified in the gravity data
Heritage considers these blocks as sharing geological similarities with the Albert Basin of Uganda where the Company had considerable exploration success
1 Petrodel 70.1%
Latham1 5,056 sq km 29.9%, operator
Rukwa North 10,175 sq km 100%, operator Rukwa South 8,745 sq km 100%, operator Kyela 1,934 sq km 100%, operator
68
Tanzania - Rukwa
Legacy data lead
Legacy data potential kitchen
Targeted 2D seismic campaign commenced. Particular focus on
NE margin to delineate kingfisher analogues (completion Q1 2013)
2,300km of legacy 2D seismic
650km of Targeted 2D Seismic Infill
Modelled source kitchen
69
Gravity-defined lead
Gravity -defined kitchen
High Resolution Gravity Data
• Over 4000m of section identified
• Leads identified on gravity highs
• Potential source kitchen identified
• 100km reconnaissance seismic acquisition completed
Reconnaissance 2D seismic
Local Kitchen
Tanzania - Kyela
Libya
70
71
Libya – Strategically Well Placed
Heritage established a base in Benghazi in April 2011
Extremely well placed to benefit in the future development of the oil industry in Libya
Heritage Oil acquired a 51% equity interest and control of Sahara Oil Services Holdings Limited (“Sahara Oil”), an established oil field service provider
Sahara Oil owns the entire share capital of Sahara Oil Services Limited (“Sahara”)
Sahara has the necessary long term permits and licences to provide onshore and offshore oil field services in Libya as well as the rights to own and operate oil and gas licences
Through this acquisition Heritage is exploring ways to gain access to key producing fields and other licence opportunities in Libya
Malta
72
73
Malta
Heritage Oil 100% working interest and operator
Two areas; c.18,000 sq km
Structures identified on Areas 2 & 7 could be analogous to the giant Bouri Field where IHS estimate reserves of 630 mmbbl and in excess of 8 TCF of gas
Number of producing fields offshore Libya and Tunisia
Oil and gas shows close to Area 7
Water depths of 250-300 metres
1,023 kilometres of legacy 2D seismic reprocessed
1,400 kilometres of 2D seismic acquired processed and interpreted
High-impact exploration well planned which will target approximately 500 mmboe. Well planning ongoing
Malta
74
Upper Caravaggio
Fault cutting near to surface
Talus slope
Regional MFS (Souar Fm) acting
as seal?
Possible gas chimney
Continued progradation
through the Oligo-Miocene section
Nummulite/Reef mound
Seabed reef – methanophilic
bacteria
Lower Caravaggio
SUMMARY AND OUTLOOK
75
Summary
76
Entry into Nigeria
Acquisition of a world class asset
Provides a step change in production, reserves and cash flow
Combines Shoreline Power’s local knowledge and relationships with Heritage’s technical expertise
Exit from Kurdistan
Attractive exit valuation secured for a development asset with a significant future capital expenditure requirement, political risk and no
pipeline to market
Proceeds used to partially fund acquisition of OML 30 and continue exploration and development of existing portfolio
Corporate Outlook
Strong balance sheet
Potential for developing and strengthening the portfolio further through acquisitions
Operational Outlook
Increase in production from OML 30
Initial exploration ongoing in Tanzania
Well planning ongoing in Malta
Catalysts
Material increase in production, cash flow and revenues generating more regular newsflow
APPENDICES
77
78
Appendices
Heritage Oil Plc Board
Shoreline Board
Contact Details
79
Heritage Oil Plc Board
Anthony Buckingham – CEO, Director
Active oil sector businessman since 1970s; founded Heritage in 1992
Former advisor to Premier Oil (introduced them to Pakistan) Sonangol and Ranger Oil; architect behind Sonangol E&P
Paul Atherton – CFO, Director
Chartered accountant, degree in geology, corporate finance background
Joined Heritage in 2000
Michael Hibberd – Chairman, Non-Executive Director
Extensive background in international energy, planning & capital markets. Former Director of Scotia McLeod
On the board of a number of public and private companies
Joined Heritage in 2006
General Sir Michael Wilkes – Non-Executive Director, Senior Independent Director
Retired from the British Army as the most senior administrative officer
Chairman and non-executive director of a number of public and private companies
Joined Heritage in March 2008
80
Heritage Oil Plc Board (cont’d)
John McLeod – Non-Executive Director
Professional engineer with over 36 years of varied resources extraction experience
Joined Heritage in 1996
Gregory Turnbull – Non-Executive Director
Regional Managing Partner of McCarthy Tétrault LLP
Extensive knowledge of corporate governance issues and has acted for many boards of directors
Joined Heritage in 1996
Carmen Rodriguez – Non-Executive Director
Recently held the position of Chairperson and CEO (2007-2012) of Sociedad Estatal Espanola P4R, S.A., a Spanish owned
consultancy firm specialising in foreign trade, investment and co-operation
Joined Heritage in March 2012
Colonel Mark Erwin (Retd.) – Non-Executive Director
Mr. Erwin served in the United States Army for over 25 years culminating his career as the Chief of Staff of the United States
Army Special Operations Command
Joined Heritage in May 2012
81
Shoreline Board
Dr Ladi Bada – CEO
Dr. Bada has been working in the Nigerian oil and gas sector for the last 14 years with 10 of those years in directorial roles
He is presently a director in Linetrale Oil and a consultant to Oriental Energy
Paul Atherton – CFO
Chartered accountant, degree in geology, corporate finance background
Joined Heritage in 2000
Kola Karim – Chairman
Group CEO and Managing Director of Shoreline Energy and Shoreline Power
Mr Karim holds an MBA from the University of Leicester and degree in Business Management from City University; he is
also an alumni member of the Harvard Business School for the Executive Management Programme and the Harvard
Kennedy School for the Leadership and Public Policy programme. He was awarded Young Global Leader Award in 2008.
Tunde Karim
Mr. Karim also serves on the board of Shoreline Energy, April Travels Ltd, Nigerian Ropes Plc, Fortis Construction Co. Ltd
Shoreline Electrical Systems Ltd, L.D Alberto Company Ltd and Askar Paints Ltd
Mr. Karim is a member of the Institute of Directors Nigeria and holds a degree in Biochemical Engineering from University
College of Wales, U.K
82
Shoreline Board
Philip Blows
Mr. Blows is a chartered accountant and has been an adviser to Heritage for 20 years
Holds a degree in Business Law
83
Contact Details
Heritage Oil Plc
Tony Buckingham / Paul Atherton
Tel: +44 (0)1534 835 400
Email: [email protected]
Website: www.heritageoilplc.com
Investor Relations – Heritage Oil Plc
Tanya Clarke
Tel: +44 (0)20 7518 0838
Email: [email protected]
Media Enquiries
Ben Brewerton / Natalia Erikssen
Tel: +44 (0) 20 7831 3113
Email: [email protected]
Canada
Cathy Hume / Jeanny So
Tel: +1 416 868 1079 x231 / x225
Email: [email protected] / [email protected]
Stock symbols
London Toronto
HOIL HOC (Exchangeable)
HOX (Exchangeable)