Introduction Huntington (17.75% WI) 2,583 boe/d production (Q3 2014) Non-operated, oil and gas producing asset Key source of cash flow for re-investment Orlando (75.0% WI) Operated oil development project - organic future…
Iona Energy Inc, September 2014 High exposure to a series of capital intensive developments Orlando & Kells (75% working interest) West Wick (58.75% working interest) Ronan & Oran (100% working interest) Trent & Tyne acquisition &…
Solid Foundation - Management team renewal Iain McKendrick, Executive Chairman Former CEO of Ithaca Energy Inc with previous commercial and management experience with Total SA and Wood Group Tom Reynolds, CEO Former CEO of Bridge…
Clear progress - re-focussed activity on core assets Minimum spend on non-core assets Minimised spend on Kells & West Wick for time being Ronan & Oran appraisal re-tasked to accelerate time to development Orlando project export…
Strict focus on cash G&A cost reductions Sub-leasing office space (first tenant agreed), further space being marketed Key cost areas of travel, support managed aggressively Orlando project team cost reduction USD million…
ORLANDO FIELD November 2014 Page 8
Managing Orlando development capex Orlando project costs to go reduced from US228 million to US215 million (gross) Contracting environment for key installation assets softening USD million Semi-sub rig rates for 2016…
Fixing the capital structure - engagement with bondholders Low oil price environment will reduce cashflow which raises risk of potential covenant breach within next 12 months Proactive engagement with bondholders initiated by…
Introduce partner to Greater Ninian area Orlando Iona interest is 75% Seeking industry partner to take 25% interest Asset attractive but farm-out market is challenging Greater Ninian Area Satellites (Ronan & Oran Iona interest…
Solid foundation secured Strong management team intends to deliver in the short term a long term solution for existing debt hedging in place at US80/bbl through 2015 reduced G+A costs to maximise cash Orlando development Capex…
Growth acquisition of producing assets Now that business foundation is secured through actions described previously, production acquisitions can be added Iona holds historic tax pool of c. US350 million which is not being consumed…
Refinance bond debt, reducing cost of capital Additional production will diversify sources of cash flow and allow the company to access a Reserve Base Lending facility, reducing interest costs Existing high yield bond Current…
Value turnaround building value on solid foundation Core focus areas to grow value for all stakeholders Value Created Actions completed and foundation stabilised Successful completion of strategic goals can create…
The future Production, Scale, Yield Having fixed the base the Company is well placed to benefit as Orlando and acquisitions deliver additional production in a strengthening oil price environment Vision continues to be to construct…
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