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Pura Vida Energy (Proposed ASX:PVD) Investor Presentation for December Initial Public Offering (IPO)
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Investor Presentation
Please visit www.puravidaenergy.com.au to download a copy of the IPO Prospectus
An offer of up to 20,000,000 shares at an issue price of $0.20 per share to raise $4,000,000
Opening date 28 November 2011
Closing date 16 December 2011
Despatch of holding statements 19 December 2011
Expected date for quotation on ASX 23 December 2011
November 2011
African explorer with a substantial acreage position offshore Morocco
Independently certified potential resources of greater than one billion barrels of oil
Modern, high quality 3D seismic data over acreage has revealed Direct
Hydrocarbon Indicators (DHI’s) on drilling prospects
The Toubkal prospect has been independently estimated to contain between 180 and 1,670 mmbbl, with a mean estimate of 790 mmbbl
Toubkal is a ‘look-a-like’ of the billion barrel Jubilee field in Ghana – the largest oil discovery made in West Africa in the past decade
Actively building a diversified portfolio of energy assets
Industry experienced board and management team with a demonstrable track record of growth in shareholder value through exploration success and value accretive acquisitions
This IPO provides investors with an early entry opportunity to invest in a company with material upside and significant growth aspirations
investment highlights
2
Acquire conventional upstream oil and gas assets – seeking material working interest in projects with significant upside
Management team with extensive commercial, technical and A&D expertise:
Track record of exploration successes and value accretive acquisitions
Deals achieved significant growth in shareholder value
Ability to pick emerging areas with large potential resources and de-risk with quality technical work
Securing near-term acquisition opportunities and building a balanced E&P portfolio
within 24 months:
Geographic focus on Africa - exposure to large scale opportunities and seeking partnerships with majors/independents
Near term value/high growth opportunities
Leverage experience and networks of Board and management team
Progress oil exploration activities and enhance value in Mazagan Offshore Area
IPO provides investors with an early entry opportunity with material upside
3
strategy
Deep water exploration with
significant potential resources… Total area of 10,900km2
(2.7 million acres)
Operator and 75% interest holder
3,570km2 of modern 3D seismic
Several leads & prospects supported by Direct Hydrocarbon Indicators (DHI’s)
Toubkal prospect with potential for hundreds of millions of barrels of oil
Comparable to the billion barrel Jubilee field in Ghana – the largest oil discovery in West Africa in the past decade
Internationally competitive fiscal terms
Significant increase in transactional activity in recent months
REPSOL GAS
DISCOVERY
KOSMOS
ACQUIRED IN
JULY 2011
ONSHORE
OIL AND
GAS FIELDS
CAP
JUBY OIL
FIELD
OIL FIELD GAS FIELD
AFRICA
KOSMOS
FARMIN
SEPT 2011
ANADARKO
ACQUIRED IN
OCT 2011
4
Mazagan offshore area
PROSPECTS & LEADS
MIOCENE LOWER CRETACEOUS Sources: RISC Independent Resource Assessment – Sep 2011 & Pura Vida lead estimates
Independent resource assessment completed by RISC in September 2011
Toubkal mean resource of 790 mmbbl
Total mean prospective resources on main
prospects of over a billion barrels
GROSS UNRISKED PROSPECTIVE OIL RESOURCES (MMBBL - RECOVERABLE)
PROSPECTS LOW BEST HIGH MEAN
Toubkal 180 560 1,670 790
Zagora 13 35 95 47
Amchad 8 26 81 38
Jbel Musa 14 53 195 87
Jbel Ayachi 12 43 153 69
Jbel Lakhdar 12 43 153 69
TOTAL - PROSPECTS - - - 1,100
LEADS
Amtoudi - - - 700
Tafraoute - - - 800
TOTAL - PROSPECTS & LEADS - - - 2,600
5
recoverable resources
Damon Neaves Managing Director
Formerly BDM for Tap Oil
Led Business Development,
Commercial and Legal teams
during 8 year tenure at Tap
Several major acquisitions,
many involving entry into new
countries: Thailand, Ghana,
Indonesia, Brunei, Philippines,
Australia & NZ
Upstream project
management experience
Legal/corporate advisory
background
David Ormerod Technical Director
Over 25 years experience in
the oil and gas sector
Participated in several major
discoveries over his career
Responsible for Karoon Gas’
entry into Brazil which saw a
period of dramatic growth in
shareholder value
Experience with BHPBP,
Woodside, Stirling and Tap in
areas as diverse as the Gulf of
Mexico (GoM), West Africa, SE
Asia and the NW Shelf
Bevan Tarratt Chairman
Accounting industry
background primarily focused
on small/mid cap resource
companies
Founding partner of
Hemisphere (cornerstone
investor in Pura Vida)
Equity markets experience with
Patersons Securities
Managed IPOs, secondary
raisings and re-structuring of
numerous ASX listed
companies
Director of a number of
Australian public companies
6
Pura Vida has assembled a management team with extensive commercial, technical and A&D expertise with a track record of exploration success and value accretive acquisitions
board and management
$2.6m cash on hand plus IPO funds will be used to fund the Mazagan work programme ($3.6m), repay shareholder loans ($700k), and meet working capital requirements
In addition, Mr Neaves and
Mr Ormerod will share equally in at total of 10m performance rights and 5m options at 40c which are subject to
performance-based vesting conditions
Tight capital structure provides shareholders with significant
leverage in success case
NO.
(MILLIONS)
RAISED
($M)
UNPAID
($M)
CURRENT
Partly paid shares1 22.9 0.2 4.4
Fully paid shares2 20.3 3.2 -
TOTAL (CURRENT) 43.2 3.4 4.4
PRO FORMA
Partly paid shares 22.9 0.2 4.4
Fully paid shares3 40.3 7.2 -
TOTAL (PRO FORMA) 63.2 7.4 4.4
1. Partly paid shares are paid to 1c and payable to 20c within 5 years. These shares carry voting rights but will not be quoted on ASX unless and until they are fully paid up
2. Approximately 90% of the fully paid shares were issued at $0.16 per share
3. Assumes an IPO of 20m shares at 20c to raise $4m
7
capital structure (indicative only)
8
Combined structural/stratigraphic
traps supported by DHI’s on 3D
seismic have been drilled with
considerable success in NW Africa
AMPLITUDE SCALE
LOW
(WATER)
MODERATE
(OIL)
HIGH
(GAS)
9
seismic amplitudes on Toubkal
A’ A’
A
A’
Gas
Oil
Water
3D SEISMIC LINE SEISMIC AMPLITUDE MAP
Salt
FIT TO
STRUCTURE
OIL ON WATER
RESERVOIR
Amplitude cut-off at common depth…
10
hydrocarbon fill
Strong conformance of high amplitudes and structural closure…
11
ZAGORA mmbbl
BLUE POLYGON (P90) 13
RED POLYGON (P10) 95
MEAN 47
AMCHAD mmbbl
BLUE POLYGON (P90) 8
RED POLYGON (P10) 81
MEAN 38
Zagora and Amchad
TERM WORK OBLIGATIONS COST*
(US$M)
1st Term (24 months) • 50 drop cores (sea bed samples) • Reprocess 3,000 km2 to pre stack depth and
detailed seismic inversions
• Geological studies
1.01
2.15
0.50
Exit point – drill or drop + 20% relinquishment
2nd Term (24 months) • One exploration well to 3,000m SS 10.00*
Exit point – drill or drop + 30% relinquishment of original area
3rd Term (48 months) • Two exploration wells to 3,000m SS 20.00*
8 year exploration permit with a right to an exploitation concession in the event of discovery for a term of 25 years plus a 10 year extension
Work program:
* Cost estimates for the purposes of the minimum financial commitments as set out in the Petroleum
Agreement, actual drilling costs are likely to be considerably higher
12
title and work program
Pura Vida Energy
Oct Nov Dec Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2012 2013
Timeline
Acquisition of Mazagan Project
2011
Second exploraiton period commences
Seismic reprocessing
Farmout
Drop core program
Admission to ASX
Potential acquisition of new project
Exploration well(s)
Review of prospects & forward program
IPO offer period
13
DIVERSIFY
PORTFOLIO
KEY RESULT: IMPROVE
RISKING/CHANCE OF SUCCESS
ON MAIN PROSPECTS
TESTING FOR
OIL SEEPS
SECURE FUNDING
FOR DRILLING
PROGRAM
DRILLING WILL TARGET SEVERAL HUNDRED
MMBBL (NET)
Strategy to deliver material success and value within 2 years:
1) Carry out work program and secure funding for drilling program in Mazagan
2) Build a diversified portfolio of energy assets through acquisition
news and events
INTERNATIONALLY COMPETITIVE FISCAL TERMS
• State (ONHYM) is carried through exploration for 25%
• Royalty rates:
• US$1m discovery bonus payable on declaration of a commerciality. Production bonuses begin only once production exceeds 20,000 bopd
• 10-year tax holiday from company/income tax from date of first production at each field
• Exempt from withholding tax, import duty and VAT
• Stability clause – Petroleum Agreement provides compensation to Pura Vida in the event of any adverse effect from a change in regulations
• Any dispute settled by arbitration in Paris under internationally accepted rules (ICSID or ICC)
VOLUME ROYALTY
Oil First 500,000 tons (4 mmbbls) Thereafter
0% 7%
Gas First 500 mmcm (18 Bcf) Thereafter
0% 3.5%
14
fiscal terms
Established, codified petroleum regime with exploration blocks granted under petroleum agreements
Robust infrastructure and current pipeline capacity
Significant increase in transactional activity by large independents such as Kosmos and Anadarko
Level of exploration activity is set to increase sharply
Growing domestic energy requirements. Morocco is the world’s third-largest producer of
Phosphates (after the US)
Sovereign risk amongst lowest in Africa
European based laws
ENERGY INFRASTRUCTURE IN MOROCCO
Gharb gas fields
Meskala Gas Fields
Sidi Rhalem Oil Field
15
Morocco
Certain statements contained in this presentation, including information as to the future financial or
operating performance of Pura Vida Energy NL (Pura Vida) and its projects, are forward-looking statements.
Such forward looking statements:
are necessarily based upon a number of assumptions and estimates that, while considered reasonable
by Pura Vida, are inherently subject to significant technical, business, economic, competitive, political
and social uncertainties and contingencies;
involve known and unknown risks and uncertainties that could cause actual events or results to differ
materially from estimated or anticipated events or results reflected in such forward-looking statements;
and
may include, among other things, statements regarding targets, estimates and assumptions in respect
of production, prices, operating costs, results, capital expenditures, reserves and resources and
anticipated flow rates, and are or may be based on assumptions and estimates related to future
technical, economic, market, political, social and other conditions.
Pura Vida disclaims any intent or obligation to update publicly any forward-looking statements, whether as a
result of new information, future events or otherwise.
All forward-looking statements made in this presentation are qualified by the foregoing cautionary
statements. Investors are cautioned that forward-looking statements are not guarantees of future
performance and accordingly investors are cautioned not to rely on forward-looking statements due to the
inherent uncertainty therein.
16
disclaimer
Directors
Damon Neaves, Managing Director David Ormerod, Technical Director Bevan Tarratt, Non-Executive Chairman
Corporate Advisor
Hemisphere Corporate Services
Exchange
ASX (Listing in Dec‘11) Proposed Code: PVD
Head Office
Level 8, 225 St Georges Terrace Perth WA 6000
t +61 89486 4036 f +61 89486 4799 [email protected]
Issued Capital
41.7m shares (as at Oct ‘11) 63.7m shares (post-IPO*)
* Estimate based on a $4m IPO raising
Net Cash
$2.6m (as at Nov ‘11) $4.4m unpaid capital
17
corporate information