AZONTO PETROLEUM Corporate Presentation May 2014 1
AZONTO SNAPSHOT Small West African focussed E&P Cote dIvoire : development/ appraisal/ exploration Ghana : exploration Market capitalisation US25mm Dual listed ASX/AIM Emphasis on discovered hydrocarbons With material…
NEW EXPERIENCED MANAGEMENT TEAM Skin in the game: 2.5% of ISC + up to 13%* via LTIP Full management bios in Appendix * % of fully diluted Issued Share Capital 4
LATENT VALUE IN EXISTING ASSETS ASSUMPTIONS Gazelle value from May 2014 CPR (assuming Petroci 16% back-in), adjusted to 12% discount rate (from 15%) & discounted by a further year to reflect mid 2016 start-up Corporate Overhead…
COHERENT GROWTH STRATEGY Better Risk/reward Discovered Hydrocarbons : Faster conversion to cash flow onshore or shallow water Selective exploration, farm out pre-drill Opportunities in discovered hydrocarbons West Africa ex Cote…
CAPABILITIES IN PLACE TO DELIVER STRATEGY REQUIRED SKILLS SOURCE OPPORTUNITES Network, relationships SCREEN AND PRIORITISE Analysis (do-ability) NEGOTIATE AND CLOSE Discipline, creativity EXECUTE POST- DEAL PLAN…
THE AZONTO / VITOL RELATIONSHIP VIOCO VITOL AZONTO AZONTO GHANA Powerful connections Entrepreneurial zeal African experience Real clout in banking market Co-location Synergies French speakers Aligned strategy in Africa…
COTE DIVOIRE BLOCK CI-202 : VIOCO PETROLEUM JV : Azonto 35%, Vitol 65% Vitol to fund first 50m of capex for Field Development Plan Gas development project (Gazelle: 92bcf 2C, 47bcf 1C) awaiting development approval Additional…
COTE DIVOIRE : RESOURCES Source : Gazelle : CPR May 2014 (RPS), remainder CPR Jan 2013 (RPS) Azonto Net = Gross * 71% (Vioco economic interest assuming Petroci back-in) * 35% (Azonto share of Vioco) 10
GAZELLE GAS DEVELOPMENT 2 new wells + 1 re-completion Simple platform or subsea completion. FID anticipated by end 2014 18 months from FID to first gas 47.5 mmscfd initial production 190m capex to first gas Vitol loan 50m, bank…
COTE DIVOIRE : BEYOND GAZELLE 24 525 101 523 Independence 1X and 2 Appraisal 2014 2014 Prospect maturation ongoing 2015 Drilling shallow prospects Deep Arius prospects depend on agreement with holders of…
GHANA : ACCRA BLOCK Azonto Ghana (Azonto 57%) has a Key Facts Gross Acreage: 2,000 sq km 45% interest* in the Accra Block Operator: Azonto Exploration Period: max. 7 years and acts as Operator. Agreement Term: 30 years Ophir, Tap,…
REGIONAL SOURCE ROCK DISTRIBUTION CEN/TUR MODEL Source: IHS EDIN 2014 Regional Data Suggests Marine SRs are deposited further offshore than Starfish 14
REGIONAL SOURCE ROCK DISTRIBUTION ALBIAN SYN RIFT LACUSTRINE SOURCE ROCK Proven lacustrine SR (e.g. Gazelle) Source: Ophir 2014 Lacustrine Source Rock Potential in Deeper Syn-Rift Section 15
ACCRA BLOCK PLAY DIAGRAM Starfish-1 not Tested the Potential of the Cenomanian-Turonian or Syn Rift Plays 16
CURRENT UNDERSTANDING OF THE PROSPECT INVENTORY Play Test Option (1): Albian tilted fault blocks Nautilus, Seahorse Analog: Espoir field, Cote dIvoire Play Test Option (2): Cenomanian/Turonian hinge inversion Sealion, Sealion…
MANAGING THE CHALLENGES Existing relationships, local credibility Doing Business in Africa Extensive experience in region French language speakers Project team experience Getting Gazelle to FID Vitol relationships in Cote…
FINANCIAL POSITION / COST REDUCTION Cash at 31.3.14 of A6.7mn But A3.3mn receivable from Vioco Current annual overhead cost: A6.0mn Net of Vioco contribution of A2.5 - 3.0mn towards overheads G&A funded till mid-2015, but new…
A COMPANY TO WATCH Total focus on growing shareholder value : no lifestyle managers Balanced and experienced management team with strong African Experience Management are aligned with shareholders with substantial skin in the game…
APPENDICES 21
HISTORY 22
VIOCO : GAZELLE PROJECT TEAM 23
MARKET INFORMATION 24
MANAGEMENT TEAM BIOS Andy Bartlett (Non-Exec Chairman)* Senior advisor at Helios (private equity in Africa), NED of Eland Oil & Gas, previously global head of oil & gas at Standard Chartered, Shell Capital, and development manager at…
VITOL E&P WEST AFRICAN PORTFOLIO Directly Held Indirectly Held Interests Interests * Ghana Nigeria Offshore Cape Three Aje Field (4%) Points Block (44%) Appraisal/development Development (non- operated) Offshore Accra Block…
GAZELLE SUBSURFACE WORK 2013 2010 Reprocessed Seismic 2014 development wells planned using new seismic data and latest log interpretations/geological models, to reduce risk and maximise production rates Gazelle- P4 log data Gamma…
GAZELLE 2014/15 PLANNED WELLS Gazelle Field Development Well Targets P4 Development wells 28
COTE DIVOIRE 11th fastest growing economy in the world 2012 (+9.8%) 7% average annual growth predicted over next 5 years President Outtara: economist, ex Director of Africa Dept. at IMF, Adviser to IMF MD Elected Nov 2010 but did…
COTE DIVOIRE GAS MARKET Power Generation Gas Fired Power Generation Cote dIvoire is a net exporter of electricity The current installed capacity of gas fired power plants in country is 900MW, with gas intake of up to 260 mmscf/d…
COTE DIVOIRE : GAS SHORTFALL 100MMscf/d shortfall today Expected to increase to 150MMscf/d by 2020 Significant supply gap developing Will need to buy in expensive HVO/VGO (25/mmbtu) to meet shortfall 31
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