AZONTO PETROLEUM Proactive Investors Hydrocarbon Forum London 21 August 2014
AZONTO SNAPSHOT Small West African focussed E&P Cote dIvoire : development/ appraisal/ exploration Ghana : exploration Market capitalisation US15mm 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 * % 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 BeHer Risk/reward Discovered Hydrocarbons : Faster conversion to cash ow onshore or shallow water SelecOve exploraOon, farm out pre-drill OpportuniOes in discovered hydrocarbons Cote dIvoire…
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…
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…
SIGNIFICANT ECONOMIC BENEFIT TO CdI Utilising Gazelle gas to generate electricity can lead to a significant saving over imported fuel oil; Estimated saving for ca. 90 bcf is around 1.5 billion This equates to around 6% of GDP…
COTE DIVOIRE : BEYOND GAZELLE 24 525 101 523 Independence 1X and 2 Appraisal 2014 2014 Prospect maturaOon 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 ExploraOon Period: max. 7 years and acts as Operator. Agreement Term: 30 years Ophir,…
ACCRA BLOCK PLAY DIAGRAM Starsh-1 not Tested the PotenNal of the Cenomanian-Turonian or Syn RiU Plays 12
CURRENT UNDERSTANDING OF THE PROSPECT INVENTORY Play Test OpNon (1): Albian Nlted fault blocks Nau%lus, Seahorse Analog: Espoir eld, Cote dIvoire Play Test OpNon (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 GeYng Gazelle to FID Vitol relationships in Cote…
FINANCIAL POSITION / COST REDUCTION Cash at 30.6.14 of A8.5mn G&A funded till mid-2015, but new projects will require fresh capital 15
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…
FOOD FOR THOUGHT. To most investors, this is how investing in microcap oil and gas companies must have felt in recent years: 17
AS EVIDENCED WHEN WE LOOK AT THE RELATIVE PERFORMANCE OF AIM OIL AND GAS STOCKS 1.4 1.3 1.2 1.1 AIM O&G 1 FTSE350 O&G AIM100 0.9 Brent 0.8 0.7 0.6 18
AND SO. As a group, we need to work hard to restore investor confidence through: Finally participating in successful exploration; Bringing discoveries onstream on time and on budget; And maybe Consolidating to reduce G&A and…
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