LGO Investor Update 14.8.14

Report
Leni Gas and Oil plc
Investor Update
Neil Ritson
14 August 2014
London (AIM): LGO
1
Company Profile
London Stock Exchange
Producing Oilfields
- listed March 2007
- Trinidad and Spain
London HQ
Spain
Trinidad
Staff
Net Production Capacity
- 50 (All local)
- 600 bopd
2P Reserves
Market Cap
- 7.6 mmbbls
- approx. £90 million
2
London Management and Board of Directors
Chairman
David Lenigas
Holds a Bachelor of Applied Science in Mining Engineering and has 30 years of resources industry
experience. Until recently he was the Executive Chairman of Lonrho plc. David is also the Executive
Chairman of Stellar Resources plc, Solo Oil plc, Rare Earth Minerals plc and AfriAg plc.
Chief Executive
Officer
Neil Ritson
Chief Operating
Officer
Fergus Jenkins
Finance Director
James Thadchanamoorthy
Has a BSc in Geophysics. He has worked in the energy sector for over 35 years, initially with BP plc
for 23 years before managing the international operations of Burlington Resources Inc. and more
recently as CEO at Regal Petroleum plc, before founding the Vanguard Energy Group where he was
Chairman and CEO. He is a Director of Solo Oil plc and a Non-Executive at Enovation Resources Ltd.
Is a Chartered Engineer with a BEng in Mining Engineering and a MEng in Petroleum Engineering. He
has over 20 years of experience working in industry, initially in mining before moving to petroleum,
where he has worked for most of his career in mid-sized independent oil companies, including
Enterprise Oil, LASMO, OMV (UK) Ltd and Afren plc.
Has a degree in Chemistry and is a qualified accountant. He has 18 years’ experience, including over
10 years spent at BP where he held a number of commercial and finance leadership positions.
Non-Executive
Director
Steve Horton
Holds a BSc in Mining Engineering and an MBA. He has 35 years experience working in the energy
industry including 27 years with BP plc where he held executive roles including worldwide Director
of Drilling. He co-founded Silverstone Energy Limited in 2005. Steve is a Non-executive Director of
Seamwell Limited and, until the recent merger, of Valiant Petroleum plc.
3
TRINIDAD
4
Current Trinidad Assets
Trinidad Head Office, San Fernando
Goudron IPSC (100%) with 2P reserves
of 7.2 mmbbls and over 60 mmbbls of
contingent resources associated with a
future water flood
HOA to acquire the Trinity-Inness IPSC
from Rex Caribbean
Icacos Field in the Cedros Peninsula
(50%, non-operator), producing ~35
bopd from three wells
Over 7,500 acres of largely unexplored
100% owned private oil leases in the
Cedros and adjacent rights held in
partnership with Beach Oilfield Limited
5
Goudron Phase 1
Goudron well GY-257 Reactivated 2012
6
Goudron Phase 2 - Drilling Results to date
• Spudded first well, GY-664, on
28 April
Rig 20 on GY-665, 7 June 2014
• Completed well GY-664 on 30
May in 278 feet of Gros Morne
• GY-665, TD on 8 June
• GY-666, TD on 1 July
• GY-667, TD on 30 July
• All wells are expected to be
Gros Morne production wells
• Spudded GY-668 on 9 August
drilling ahead in Goudron
Sandstone
7
Well GY-664
• First new well on the field for over
32 years
• Drilled from the central camp area
• Found 571 feet of net oil pay within
3 reservoirs
• Completed over an interval of 278
feet of Gros Morne
• Initial flow rate 240 bopd 37 API oil
through a 7/32” choke at a flowing
pressure of 660 psi
• Choked back to 6/32” pressure
stable at 540 psi
8
Constrained production rate
Production of 240 bopd
through a 7/32-inch choke
9
Excellent log characteristics
‘130 foot’ Gros Morne sandstone in GY-667
10
Structure – Top Gros Morne
Pad 1
Pad 2
11
Drilling Pad 3
• Third new drill site currently
under construction
154
29
4
Well 6
25
7
152
15
3
156
Well 8
• Expect to drill 4 wells
28
6
Well 7
290
Well 9
386
605
• Provisionally 1 Goudron
only, 2 Goudron/Gros Morne
wells and 1 well to the Lower
Cruse
• Continue to use Well
Services Rig 20
• First well will spud after GY668
• Wells GY-665 to 668 will be
placed on production
12
Trinity-Inness
13
Trinity-Inness Asset Summary
• Petrotrin IPSC field 20 km from
Goudron
Installing new well tanks
• Current production 140-150 bopd
from approx. 25 active wells
• Herrera Sandstone at depth of
1,500 – 5,000 feet
• Five tank batteries and a 1,500
barrel sales tank
• Average 28-38 degree API oil
exported directly by pipeline to
Pointe-a-Pierre
• Approx. 20-30 immediate
reactivation targets, and an
existing CEC for 12 new wells
Trinity-Inness sales tank facility
14
Cedros Peninsula
15
LGO Cedros Lease Position
Installing new well tanks
Beach Oilfield Cedros Leases
FRM-1 Deep Well
TED 3D Seismic
LGO Cedros Leases
Icacos Field
Bonasse Field
Icacos Leases
Galpha Point
16
Plans for the Cedros
• In collaboration with Beach Oilfield
and Dr Krishna Persad; re-evaluate
all existing data and wells
Installing new well tanks
• Acquired a soil geochemistry survey
to isolate micro-seepage and areas
of fractionated light oil
• Plan to fly a high resolution gravity
and magnetics survey
• Acquire additional 2D seismic data
if necessary to define well locations
• Drill at least one deep exploration
well to test the potential at Herrera
Sandstone level
Galpha Point Mud Volcano
17
SPAIN
Ayoluengo Field, Cantabrian National Park, Spain
18
Future Potential
• Enhance production through the
side-tracking of existing wells
• Development of Hontomin as a
low cost satellite using existing 3D
seismic and re-entry of existing
wells
• Development of Tozo as either a
micro-Compressed Natural Gas or
Gas-to-Wire project
• Deepen Ayoluengo to the proven
Liassic reservoirs
• Sub-lease the unconventional gas
exploration potential
19
Financials
20
Revenue: 2010 to 2014E
12
10
Trinidad (new production)
Trinidad (current wells)
Spain
US
Goudron
production
coming on line in
Q3 2014
8
£5.9m
6
4
£3.4m
£3.35m
2011
2012
Current
Production
£2.3m
2
0
2010
2013
0
2014
• Portfolio has been repositioned to focus on growth
• Acceleration of the development of Trinidad
• Spain will be optimised until the extension is confirmed
21
Gross Profit: 2010 to 2014E
3.25
2.75
Trinidad (new production)
Trinidad (current wells)
Spain
US
Goudron
production
coming on line in
Q3 2014
2.25
1.75
1.25
£1.06m
£1.09m
£1.12m
2011
2012
2013
Current
Production
0.75
£0.5m
0.25
-0.25
2010
0
2014
• In 2013 Gross Profit was broadly flat
• Higher Trinidad volumes were partially offset by lower sales in Spain
• Gross Profit will rise in 2014 in line with significant growth in volumes
22
Share Price Performance
23
Forward Looking Statements
Certain statements in this presentation are “forward looking statements” which are not based on
historical facts but rather on the management’s expectations regarding the Company's future growth.
These expectations include the results of operations, performance, future capital, other expenditures
(amount, nature and sources of funding thereof), competitive advantages, planned exploration and
development drilling activity including the results of such drilling activity, business prospects and
opportunities. Such statements reflect management's current beliefs and assumptions and are based
on information currently available.
Forward looking statements involve significant known risks, unknown risks and uncertainties. A
number of factors could cause the actual results to differ materially from the results denoted in these
statements, including risks associated with vulnerability to general economic market and business
conditions, competition, environmental and other regulatory changes, the results of exploration,
development drilling and related activities, actions by governmental authorities, the availability of
capital markets, reliance on key personnel, uninsured and underinsured losses and other factors, many
of which are beyond the control of the Company.
Although these statements are based upon what management believes to be reasonable assumptions,
the Company cannot assure investors that the actual results will be consistent with these forward
looking statements.
24

similar documents