Iona specific: oil price not the initial driver for change Initial asset reviews Initial cost review Former team exit New hedge Removal of put in place Non-core Orlando cost spend & team review Ninian offtake Agreements…
Macro Environment: Equity Market Performance 0% -10% -20% -30% -40% -50% -60% -70% -80% -90% -100% Note: Performance since January 1, 2014 (to January 28, 2015) Source: Bloomberg Share prices for North Sea…
Iona Specific conclusions for the company Access to capital has become more difficult and expensive Cost reduction is critical to ensure scarce cash is only spent on the core, value adding items Hedging as a tool to underpin…
Iona Energy Inc - Status at 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…
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 USD million…
Strict focus on cash & cost reduction 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…
Huntington pursuing stable, predictable production Huntington - Licence P.1114 CNS, Block 22/14b Iona working interest 15% (+ 2.55% DLE and royalty) (1) Partners E.ON (25%, op.), Premier (40%), Noreco (20%) 2P reserves Gross 29.2…
Huntington CATS Pipeline issues Huntington exports rich gas into CATS and requires dry gas from sources upstream to blend Dry gas upstream of Huntington exports via CATS Riser platform (excluding Andrew but it is used to blend…
Huntington Mitigating Actions Able to remove liquids from the gas stream and therefore export gas into CATS Feasibility completed by the operator and FEED studies Chiller / underway. Estimated costs 3-5 million (gross). Condenser…
ORLANDO FIELD November 2014 Page 17
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…
Introduce partner to Greater Ninian area Orlando Iona interest is 75% Seeking industry partner to take 25% interest Asset attractive (low opex, high returns) but farm-out market is challenging Greater Ninian Area Satellites…
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…
Solid foundation secured, key workstreams ongoing Strong management team targeting a clear, funded route to 5,000 - 6,000 boe/day(1) Hedging in place at US80/bbl through 2015 Delivered Reduced G&A costs to maximise cash…
Growth acquisition of producing assets Once the 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…
How to keep growing - Ronan & Oran appraisal Columba Undeveloped Brent age terraces to south of Ninian Field Complex Oil discoveries in three wells Combined structural and stratigraphic trap OWC 12600 ft No water in any of the…
Reservoir Lower Brent Formation reservoir; moderate poor reservoir quality; increasing thickness into the basin (NW) November 2014 Page 25
Ronan and Oran schematic cross section Ronan Oran Appraisal Ossian Columba Cretaceous Shales ODT OWC Spill OWC Triassic Shales Significant value potential in appraising reservoir quality November 2014 Page 26
Value turnaround building value on solid foundation Five 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 The macro environment and the…
APPENDIX November 2014 Page 29
Portfolio Summary Huntington (17.55% 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…
Top Reservoir Map 3D Columba 3/12-2 3/7-3 3/7a-8 3/8c-12 Ronan Columba Ossian 4x vertical exaggeration November 2014 Page 31
Loading...
