Energy Resources Inc. CORPORATE PRESENTATION May 2015
Capital Market Overview OER Share Structure Market Capitalization Net Debt Enterprise Value 1.47 796,049,213 2.29/0.75 8,410,000 344,673,441 1,017 M 545 M 1,562 M Share Trading History 2.5 2 g j h e b c f k 1.5 i d 1 a…
Historical Context OER Formation of the largest indigenous oil and gas producer in Nigeria Ebendo production ramp up 4
Asset Portfolio OER NIGERIA Asset W.I. Operator OML 125 OML 60 20% AGIP OML 56 - Ebendo Field O OML 61 20% AGIP OPL 321 & 323 M OML 60 OML 90 - Akepo Field L OML 62 20% AGIP 62 CAMEROON OML 61 OML 13 - Qua Ibo Field OML 134…
Capital Structure OER Senior Structured Facility LIBOR + 5% RBL Facility LIBOR 1 Year Tenor + 8.5% Market Capitalisation Public 5.5 Year Tenor 6.2% Net Debt US 1,017 M US 545 M Oando PLC Senior Corporate 93.8%…
Key Metrics & Comparables OER COMPANY Afren Seplat Eland O&G Heritage Oil Mart Tullow Average OER Avg. Daily Prod. (boepd; net) 31,819 36,000 3,500 14,000 6,469 75,200 27,831 53,731 2P Reserves (mmboe) 162 281 31 412 11 345 207 420…
Exploration & Production Growth Strategy OER Growing Reserves & Resources Competitive Advantage Value Drivers Indigenous status and capacity De-risk existing resources portfolio Presence in local communities, local and bring both…
Comparative Netbacks OER Attractive marginal field ensures a significant growth opportunity for OER /bbl Production Sharing Contract (PSC) 65.00 5.20 21.45 Government Royalty: 0-16.67% 13.43 Over-riding Royalty: N/A 9.27 3.13…
Illustrative Profit & Tax Allocation Based on Fiscal Terms OMLs 60-63 OER Oil /bbl Concession Government Royalty: 20% Over-riding Royalty: N/A 65.00 13.00 6.50 45.50 0.89 0.59 2.60 40.77 0.65 40.77 34.65 Petroleum Profit Tax…
Board of Directors & Advisers OER Wale Tinubu Chairman, Director Omamofe Boyo Director Wale Tinubu has pioneered the execution of world-class Omamofe Boyo is a Director of Oando Energy Resources as Independent initiatives in the…
Management OER Experienced Management Team with Significant Nigerian Relationships & Enterprise Pade Durotoye President, CEO, Director Deola Ogunsemi CFO Served as the CEO of OEPL from June 2010 until July 2012. Mr. Ogunsemi has…
NAOC JV Highlights OER Focused Portfolio in Prove, hydrocarbon Basin the Prolific Niger Nigeria has the largest oil & gas reserves in Africa with 37 billion barrels of oil and 179 tcf of gas Delta Tenth most petroleum-rich nation in the…
Appendix All Reserves & Resources estimates are classified in line with NI 51-101 regulations and Canadian Oil & Gas Evaluation Handbook standards. All estimates are from Independent Reserves Evaluator report dated 31st December 2014…
The Nigerian Operating Environment 17
Nigeria Overview OER Oil Reserves (bnboe) Oil Production (mmboe/day) 297 11.2 265 10.3 10th in World 7.8 10th in World 2nd in Africa 4.3 1st in Africa 175 4.1 151 143 3.5 3.3 102 98 88 2.9 2.9 2.8 47 37 2.7 2.3 Saudi…
Africas Most Prolific Hydrocarbon Basin OER Nigeria is the largest, most proven & prolific oil and gas basin in Africa 19
Nigerian Regional Geology OER 20
IOCS Targeting Deepwater & Divesting of Onshore Fields OER mbpd 3000 Onshore Militancy had major Deepwater production, Stalled investment Offshore impact on production, increasingly important from PIB uncertainty Deepwater…
Fiscal Term Policy OER Illustrative comparison of oil production allocation outlined below Allocation of Oil Production Allocation of Oil Production Allocation of Oil Production under under Joint Venture (JV) under Marginal Field…
Fiscal Terms: OML 60-63 OER 23
Fiscal Terms: Other Assets OER OML 145 OML 131 OML 134 24
Fiscal Term: Marginal Fields OER 25
OER Portfolio - Exploration Assets* OER 26
2015 CAPEX Plan OER Development OML 134 & EEL 3.7m 59.7m drilling, completions & Other Assets recompilations OMLs 60-63 environmental & safety projects 138.7 m Total CAPEX 2015 0.6 m Facility Enhancements Drilling & OML…
Focused & Prolific Niger Delta Portfolio OER 28
Near Term Value Drivers OER Near Term Increased production & resource commercialization: Improved and sustained production levels from Abo wells (OML125) New drilling campaign to increase production from Ebendo field (OML 56).…
Extensive, Owned Infrastructure OER Almost all of OERs production is processed through NAOC JV owned infrastructure; estimated replacement value, net to OER of USD277m, or higher OMLs 60-63 are in a favourable location 1. Close to…
Future Growth Opportunities OER 31
Future Growth Opportunities OER 32
Bunkering Considerations OER OER is committed to aggressively focus on limiting bunkering Estimated Oil & Condensate Bunkering & Losses - OML 60 - 63 Oil & Condensate Rate (bpd, OER W.I.) Theft (% of Potential) 33
Operating Environment - NAOC JV OER 34
Long-Term Contracts Minimize Price Volatility OER Existing Commercial Agreements Gas volumes sold on long term contracts; 85% of sales to NLNG at US2.69/mcf (2013); oil sold into the spot market at a premium to Brent (2% premium in…
Strategic Relationships Provide Market Access OER 36
OER Contact Contact Details Tokunboh Akindele Head, Corporate Development & Investor Relations +234 (1) 2702496 takindeleoandoenergyresources.com Energy Resources 37
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