View
2
Download
0
Category
Preview:
Citation preview
(AIM: BPC)
THE BAHAMAS: A GIANT OIL PROVINCE IN
THE MAKING
FirstEnergy Conference
September 2011
Isle of Man Head Office:
IOMA House
Hope Street
Douglas
Tel: +44 1624 647883
Email: info@bpcplc.com
Website: www.bpcplc.com
Bahamas Petroleum Company Plc 2D Seismic
Acquisition 2011
mailto:info@bpcltdgroup.comhttp://www.bpcplc.com/
Important Notice
This presentation (“Presentation”) has been prepared by Bahamas Petroleum Company Plc (the “Company”) solely for its use at informational meetings relating to the proposed placing by the Company and is
being delivered for information purposes only to a limited number of persons. By attending the meeting where this Presentation is made, or by reading the presentation slides, you agree to be bound by the
following limitations. This Presentation has not been independently verified by FirstEnergy Capital LLP, Novus Capital Markets Limited or Canaccord Financial Inc. (together, the “Agents”). The Presentation does
not purport to contain all information that a prospective investor may require. While the information contained herein has been prepared in good faith, neither the Company nor its shareholders, directors, officers,
agents, employees, or advisors (including the Agents) give, has given or has authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness
of the information in this Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any potential placee or its advisers (all such information being referred to
as “Information”). So far as permitted by law, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers (including the Agents) take any responsibility for, or will accept any
liability in respect of, the accuracy, reliability or completeness of the Information or for any loss, howsoever arising from the use of this Presentation. In furnishing this Presentation, the Company does not
undertake any obligation to provide any additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation which may become apparent. The Information is
confidential information and the property of the Company. It is made available strictly for the purposes referred to above. The Information and any further confidential information made available to any recipient
must be held in complete confidence and documents containing such information may not be reproduced directly or indirectly, used or disclosed without the prior written consent of the Company. By accepting
delivery of this Presentation, the recipient agrees to return it at the request of the Company. This Presentation should not be considered as the giving of investment advice by the Agents, the Company or any of its
shareholders, directors, officers, agents, employees or advisors. Each party to whom this Presentation is made available must make its own independent assessment of the Company after making such
investigations and taking such advice as may be deemed necessary.
Some statements contained in this Presentation or in documents referred to in it are or may be forward-looking statements, including, but not limited to, statements as to future operating results, reserves, work
plans and potential acquisitions and contracts. Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as “anticipates”, “aims, “could”, “may”,
“should”, “expects”, “believes”, “intends”, “plans” or “targets”. Such statements reflect the Company’s current views with respect to future events and are subject to risks, assumptions, uncertainties and other
factors beyond the Company’s control that could cause actual results to differ from those expressed in such statements. Although the Company believes that such forward-looking statements, which speak only as
of the date of this Presentation, are reasonable, no assurance can be given that they will prove to be correct. Actual results may differ from those expressed in such statements, depending on a variety of reasons.
Therefore, you should not place undue reliance on these statements. The development and production plans and estimates set out herein represent the current views of the Company's management. The
Company’s Board reviews the production estimates on an ongoing basis. All planning is subject to available funding and capital allocation decisions. There can be no assurance that the results and events
contemplated by the forward-looking statements contained in this Presentation will, in fact, occur. The Company and the Agent will not undertake any obligation to release publicly any revisions to these forward-
looking statements to reflect events, circumstances or unanticipated events occurring after the date of this Presentation, except as required by law or by any appropriate regulatory authority. Nothing in this
Presentation or in documents referred to in it should be considered as a profit forecast.
Past performance of the Company or its shares cannot be relied on as a guide to future performance. This Presentation does not constitute, or form part of or contain any offer or invitation to sell or issue, or any
offer to subscribe for, underwrite or otherwise acquire, or dispose of, any securities in the Company in any jurisdiction and is directed at, and is only for distribution to, persons in member states of the European
Economic Area who are “qualified investors” within the meaning of Article 2(1)(e) of the European Prospectus Directive 2003/71/EC (or who are persons to whom it may otherwise be lawfully communicated). [In
addition, other than to a limited number of persons reasonably believed to be qualified institutional buyers (as defined in Rule 144A under the U.S. Securities Act of 1933, as amended) (the "Securities Act") or
”accredited investors” (as such term is defined in National Instrument 45-106 - Prospectus and Registration Exemptions), neither this Presentation nor any part of or copy of it may be taken or transmitted, directly
or indirectly, into the United States of America or Canada or distributed or re-distributed directly or indirectly, in the United States of America, its territories or possessions, or Canada, or to any resident thereof
except in compliance with applicable securities laws. Any failure to comply with these restrictions may constitute a violation of applicable U.S. or Canadian securities laws. This presentation and the information
contained herein do not constitute an offer of securities for sale in the United States. The Company’s securities have not been, nor will they be, registered under the Securities Act and may not be offered or sold
in the United States except to qualified institutional buyers (as defined in Rule 144A) in reliance on Rule 144A or another exemption from, or in a transaction not subject to, the registration requirements of the
Securities Act. By accepting this Presentation, the recipient represents and warrants that it is a person to whom this Presentation may be delivered or distributed without a violation of the laws of any relevant
jurisdiction. This Presentation is not to be disclosed to any other person or used for any other purpose and any other person who receives this Presentation should not rely or act upon it.
The delivery or distribution of this Presentation in or to persons in certain jurisdictions may be restricted by law and persons into whose possession this Presentation comes should inform themselves about, and
observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of the laws of the relevant jurisdiction. In particular, this Presentation has not been approved by an
authorised person pursuant to Section 21 of the Financial Services and Markets Act 2000 (“FSMA”) and accordingly it is being delivered in the United Kingdom only to persons to whom this Presentation may be
delivered without contravening the financial promotion prohibition in Section 21 of the FSMA. Those persons are described in the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005
(“Order”) and include persons who have professional experience in matters relating to investments and who fall within the category of person set out in the Article 19 (investment professionals) of the Order or high
net worth bodies corporate, unincorporated associations or partnerships and trustees of high net worth trusts as described in Article 49 of the Order. Any investment activity to which this Presentation relates in
the United Kingdom is available to, and will only be engaged with such persons and this Presentation should not be acted or relied upon in the United Kingdom by persons of any other description. This
Presentation has not been approved as a prospectus by the UK Financial Services Authority ("FSA") under Section 87A of FSMA and has not been filed with the FSA pursuant to the United Kingdom Prospectus
Rules. No offer of securities in the Company is being or will be made in the United Kingdom in circumstances which would require such a prospectus to be prepared. The Agents are acting exclusively for the
Company and no one else in connection with the proposed placing and will not regard any other person (whether or not a recipient of this document) as a client in relation to such matters and will not be
responsible to any other person for providing the protections afforded to its clients, or for providing advice in connection with the proposed placing, or any other matters referred to in this document.
This Presentation has been prepared in compliance with English law and English courts will have exclusive jurisdiction over any disputes arising from or connected with this Presentation.
2
Introduction
Bahamas Petroleum Company Assets
History and Corporate Overview
Geologic and Geophysical Review
Ryder Scott Company Competent Person’s Report Summary
Recent Activity in Cuba
Summary
3
Our Assets – Awarded Licences & Licence Applications
4 4
2011 – 2D Seismic Showing Correlations Across Folds A, B & C
5 Section is horizontally compressed approximately 2:1
Fold B 5 km
Fold A Fold C
Near top Cretaceous
Top lower Cretaceous – Albian
Intra lower Cretaceous – Aptian
Intra lower Cretaceous – Base Aptian
Jurassic
Cuba Nassau → 270 km
Corporate History – First Mover Advantage
6
Group is
founded
by Alan Burns
The Company
submits licence
applications
Licence
awarded and
reassigned
November 2006
Ministry of
Energy
grants the licence
application
Five licences
approved by
Governor
General of The
Bahamas
The Company
applies for
additional
licences
The Company
completes RTO onto
AIM market through
acquisition of Falkland
Gold and Minerals
The Company
signs Statoil joint
exploration
agreement on
three licences
The Company
announces
intention to re-
domicile the
Company in
IOM
Ministry gazettes
Bahamas Petroleum
Company Statoil Cay
Sal applications
The Company
announces
preliminary
results of
seismic
The Company applies
for 2 additional
licences and tenders
for additional seismic
Bahamas
Government
announces
temporary
freeze on
licence
applications
The company
announces
completion of 2D
seismic survey
and successful
initial results
Initiates 3D seismic,
multibeam and EIA
around potential
drilling prospects
Finalise
negotiations
and
announce
farm-out
transaction
Target for
first well in
Bahamas H2
2012
Over US $30 Million Spent on Geological, Geophysical and Well Core Acquisition, Evaluation and Processing
The
Company
raises
£5.1mn for
2D seismic
campaign
Apr May Jun Jul Aug Sep Jan Feb Mar Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Jul Aug Sep Apr May Jun Oct Nov Dec Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Q2 2005 Q3 2005 Q1 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q3 2008 Q2 2009 Q4 2009 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012
3D seismic
processed and
interpreted
CPR by Ryder
Scott on
resource
potential
Company
raises £45.6m
before costs
for 3D seismic
and further
exploration
Corporate Overview
Isle of Man based Oil and Gas Exploration Company
The ordinary shares of the Bahamas Petroleum Company Plc are traded on the London Stock
Exchange Alternative Investment Market (AIM: BPC)
7
Share Price Information Current Shareholders as of 31st July 2011
Shareholder Shares Held %
Fidelity
99,771,110 8.11%
TD Waterhouse 55,469,722 4.51%
Halifax Share Dealing 47,248,689 3.84%
Hargreaves Lansdown Asset Management 46,987,940 3.82%
Barclays Wealth 44,534,788 3.62%
Standard Life Investments 40,000,000 3.25%
Majedie Asset Management 38,590,886 3.14%
Burns Family Investments* 15,164,989 1.23%
Gumbo Investments* 12,360,000 1.00%
Total Management & Founders 28,109,989 2.28%
Total – Top 25 Shareholders 704,613,107 57.26%
Total Shares in Issue 1,230,479,096
* Director Shareholdings
* Share price and Market Cap correct as at 2nd August 2011
** Based on share price as at 2nd August 2011
GBP USD
Price* 0.0949 0.1539
52 Week High 0.2525 0.4094
52 Week Low 0.0270 0.0438
52 Weeks to date Percentage Growth** 251% 251%
Market Cap (mm) 116.8 189.3
Why The Bahamas?
Under-appreciated oil and gas exploration potential
A politically stable country with an uninterrupted parliamentary democracy of over 275
years
Excellent fiscal terms and English based Rule of Law
Benefits from proximity to extensive oil field service and infrastructure providers in US
Gulf of Mexico
Close proximity to energy-hungry US market, both in the GoM and along the US Atlantic
coast
8
Commonwealth of The Bahamas
Population: 310,426
GDP (US$ Bn): 7.38
GDP per capita (US$): 28,600
Unemployment Rate (%) 14%
Median Age (years): 29.9
Literacy 96%
Key industries:
Tourism, banking, cement, oil
transhipment, salt, rum, aragonite,
pharmaceuticals
Source: CIA World Fact Book, Bahamas Department of Statistics - 29/12/2010
Royalty Rates and Leases Terms
Production Level Royalty Rate
Oil Production, up to 75,000 bopd 12.5%
Oil Production, from 75,000 to 150,000 bopd 15.0%
Oil Production, from 150,000 to 250,000 bopd 17.5%
Oil Production, from 250,000 to 350,000 bopd 20.0%
Oil Production, in excess of 350,000 bopd 25.0%
Gas Production 12.5%
Rentals: $0.92 per acre per annum charged for the area of a lease, but
these charges are deductible from royalty payments
Income taxes: Nil in The Bahamas
Technical Team
Exploration office in Nassau, Bahamas staffed with Chief Operating Officer and three
employees
Standing U.S. and U.K. Consultants
− Mr. Jim Cockings, Geologist – Cuba Oil and Gas Activity Expert
− Mr. Michael Coulthard, Subsea Completion Engineer
− Mr. Jock Drummond, Seismic Processing Expert
− Mr. James Ehrets, Reservoir Geologist and Engineer
− Dr. Charles Karens, Carbonate Geologist – World-wide Mesozoic Carbonates Expert
− Dr. Jon Kirkpatrick, Geophysicist – Carbonate Exploration and Exploitation Specialist
− Mr. Kenneth Kreckel, Geophysicist – Carbonate Exploration and Exploitation Specialist
− Mr. Paul Ozanich, Seismic Interpreter
− Dr. Mark Rowan, Structural Geologist – Gulf of Mexico and Fold and Thrust Belts Expert
− Mr. Ian Thomson, Drilling Engineer
− Dr. Douglas Waples, Geochemistry and Petroleum Systems
University Industrial Programmes
– University of Miami, Comparative Sedimentology Lab
– University of Texas, Bureau of Economic Geology RCRL
– University of Utah, Energy and Geoscience Institute
9
Corporate Highlights
2010 – Significant Year
Significant growth in shareholder value
2D results large structures – first seismic survey since 1987
Two additional licences applied for covering 6,210 km2
JV application with Statoil for Cay Sal Bank licences progressing – initiated EIA
2011 – Busy Programme
Over-subscribed placing of £45.6m (before expenses)
New and existing Institutional Investors
First 2D survey designed to define prospects (January)
Seismic confirmed supergiant size of prospects
3D seismic survey by CGGVeritas BroadseisTM
Multibeam seabed survey
Initiated Environmental Impact Assessment to comply with Government requirement for drilling a well
Ryder Scott Company completed resource estimate
Anticipate first well will be drilled H2 2012 to follow Government policies
In Discussions Regarding a Farm-Out
Strategy
– Data room opened and farm-in opportunity being evaluated for participation by selected companies
– Expect to begin negotiations Q4 2011
10
Licences and Licence Applications
Exploration licence: 12 years in total based on 3-year
renewal periods
Initial 3 year award
1st Renewal (years 4 – 6) @ 100% of acreage –
renewal requires commitment to spud well before
end of year 4
2nd Renewal (years 7 – 9) @ 50% – requires well drilled
every 2 years
3rd Renewal (years 10 – 12) @ 50% – requires well
drilled every 2 years
The current exploration licence period expires in April 2012. Under the
terms of the licences the Governor General grants the licence holder,
Bahamas Offshore Petroleum (BOP) and Island Offshore Petroleum
(IOP), subsidiaries of Bahamas Petroleum, the sole right to undertake
exploration in its licence areas subject to conditions set out in the
licences and Bahamian legislation and regulations. If BOP and IOP
meet the financial and regulatory provisions of the licences the
Governor General shall renew the licences for another 3 years
provided the Company commits to drill an exploration well and spuds
the well before the end of the first renewal year, i.e., by April 26, 2013.
The Company advised The Ministry of the Environment of the
Commonwealth of the Bahamas in a letter dated February 2011 that
Bahamas Petroleum has fulfilled the commitments of the current
licences and that it intends to continue the exploration program into the
next extension (through 2015). The intention is to spud the first well in
2012 and no later than April 26, 2013.
Production licence – 30 years plus additional 10 years
(subject to approval of extension)
11 * Cay Sal and 3rd Round Licence Applications contingent on lifting of Government imposed
application freeze
Wells Drilled in The Bahamas (1947 – 1987)
12
Previous Wells Drilled – Core Interpretation
13 Numerous hydrocarbon shows throughout all wells
Seismic
14
2010 – 2011 2D: Mapped Prospects and Leads
2011 3D: Refine Prospects and Prepare Drilling Plans
2011 – 2D Seismic Line
15 Section is horizontally compressed approximately 2:1
Fold B 5 km
Fold A Fold C
Near top Cretaceous
Top lower Cretaceous – Albian
Intra lower Cretaceous – Aptian
Intra lower Cretaceous – Base Aptian
Jurassic
Cuba Nassau → 270 km
Time Structure Top Cretaceous showing Folds A,B, C & D
16 Figure SM-3: Top Cretaceous Fold B and C closure, Red polygon, 75km in length, area 524km2 (129,400 acres)
Depth Structure Top Aptian
17
Contour Interval
500 ft
A
B C
2011 Ryder Scott Report – CPR
HIGHLIGHTS:
Four structures over the Bain, Cooper and Donaldson licences with Un-risked Recoverable Prospective Resources (EUR) in excess of 500 million bbls each at multiple reservoir intervals
Three of the four structures have an un-risked EUR in excess of 1 billion barrels of oil
The EUR have been estimated statistically and each of the separate intervals are considered to have different risk. However, if the hydrocarbon system is working at each level, the four structures have a summed mean EUR greater than four bboe
The report focused on the Cretaceous interval only. The shallower Tertiary strata and deeper Jurassic pre and post-salt will be evaluated after we have completed our 3D seismic interpretation
The report also addresses the Chance of Success by reservoir interval for each structure
18
CPR Potential and Chance of Success by Reservoir Level*
19
* Cretaceous section only Low = 90% probability Best = 50% probability High = 10% probability MMBO = million barrels of oil
2011 – 2D Seismic with CPR Estimates
20 Section is horizontally compressed approximately 2:1
Fold B 5 km
Fold A Fold C
Near top Cretaceous
Top lower cretaceous – Albian
Intra lower Cretaceous – Aptian
Intra lower Cretaceous – Base Aptian
Jurassic
Cuba Nassau → 270 km
33 – 363
54 – 538
29 – 315
98 – 1702
93 – 1315
135 – 1611
13 – 146
34 – 798
116 – 1503
Low – High Un-risked EUR (MMBO)
26% 28%
23%
28%
35% 35%
11%
13%
31%
Chance of Success %
Cuba Ramps Up Exploration Activity
In 2005 Repsol, with partners Statoil and India ONGC,
drilled a well 60 miles west of Cay Sal Bank. The group
plans to drill another one or two wells this year in the same
area. In 2009, based on knowledge of the Cuban
petroleum province, Statoil joint ventured with Bahamas
Petroleum Company to explore the Cay Sal Bank.
Other Recent Cuban Exploration News:
• Scarabeo 9 drilling rig expected to reach Cuba in
November (www.petroleumworld.com 29 August
2011)
• Gazprom Neft,Petronas Sign PSA With Cuba On 4
Off-Shore Blocks (Dow Jones Newswires 1 August
2011)
• Cuba, Repsol to follow US rules when drilling offshore
(Reuters 3 June 2011)
• Cuba, Repsol Jaguar prospect PTD, Scarabeo 9 day
rate (Evaluate Energy 20 May 2011)
• 6 April 2011, Repsol YPF expects to have Chinese-
built drilling rig in Cuban waters by end of the summer
(Reuters)
• Cuba, Partners to drill 5 Gulf Wells this summer
(Associated Press 5 April 2011)
• April 5, 2011, Cuba to drill wells by 2013 (Dow Jones
Newswires)
• “Russia`s Zarubezhneft to drill Cuba oil shelf in 2011 –
CEO” (RIA Novosti, Moscow +
www.cubastandard.com 14 July 2010)
21
World class operators have been attracted to
Cuba and The Bahamas
* Cay Sal and 3rd Round Licence Applications contingent on lifting of Government imposed application freeze
Cuba Offshore Drilling Schedule 2011 – 2013
22
* *
*
* Recent 3D Surveys
100 km 2
Key Conclusions
First mover advantage in assembling acreage in The Bahamas
Oil province with world-class exploration potential
Strategy to use farm-outs and also retain some 100% owned acreage
Size and scale of the opportunity attractive to Majors and NOCs
CPR using 2D seismic confirms multiple giant size structures capable of holding >500 MMBO with up to 4 billion EUR
(Un-risked Recoverable Prospective Resources mean)
Busy Q4 2011
Complete 3D acquisition
Submit EIA to Government
Complete current modelling studies
Complete additional technical studies
Secure partner
Complete fast-track processing of 3D
Begin Well planning
23
Bahamas Petroleum Company believes there are supergiant oilfields to be found
in Bahamian waters and is working on its own and with partners to find them
Recommended