Private and Confidential
Investor presentation
August 2015
1
Agenda
Table of contents:
1. The opportunity
2. The team
3. Asset portfolio and
strategy for growth
Elise-1 well site in the Siraseki North license
2
Investment highlights
World class E&P opportunity profitable below USD 30/bbl
Exploration
on trend with
Northern Iraq
Strong team with
proven track-record
from Northern Iraq
Turkey:
Politically stable
and set for low cost
E&P
•
•
•
•
•
•
Exploration acreage on trend with giant discoveries in Iraq and Syria
Prospects mapped with resources up to 500 mmbbl
Currently holding 6 licenses with ~475 mmboe net prospective resources
Applied for several new licenses in core area, expected awards 3Q 2015
Exploration program with 3 high-impact wells during 2016-2018
Significant build opportunities by farm-ins and / or company / portfolio acquisitions
•
•
•
Experienced Board and Management with success from E&P industry and the region
Technical team with proven track-record
Instrumental in DNO’s success in Northern Iraq, where DNO has discovered ~1bn
barrels, currently producing ~125,000 boepd gross
Significant interest from international companies to partner up with OPC for exploring
the Zagros trend in Turkey
•
•
•
•
•
Stable business environment; new oil law in full effect from June 2014
Very attractive fiscal terms for E&P: Value of 1 barrel in Turkey equivalent to more than
5 barrels in Northern Iraq
Efficient and low cost oil service industry in place
Access to local oil offtake market at international prices
3
OPC’s Business Idea
Unlock the oil and gas potential of South Eastern Turkey
OPC’s business idea is to bring its unique knowledge from Northern Iraq to Turkey
and pursue the extension of the giant Iraqi oil fields
Iran
Bati Raman
>200 mmboe
Tawke
>750 mmboe
Exploration wells:
Turkey
1900-1980: <50
1980-2004: 10-20
Since 2005: <10
Atrush & Swara Tika
Syria
Iraq
OPC Licenses
License Applications
Fields and discoveries
Oudeh
Souedieh
Karatchok
Shaikan
>300 mmboe
>1,000 mmboe
>1,000 mmboe
>300 mmboe
Exploration wells:
1900-1980: 28
1980-2004: 0
Since 2005: >100
4
OPC’s Business Plan
Strong position in a proven petroleum province
• Onshore
South East Anatolian Basin – the targeted core area
– Focus on low cost onshore oil and gas opportunities
– Low cost exploration and development
– Projects with break even oil prices of less than 30 USD/bbl
TURKEY
Cizre/Cavushan
IRAN
Yazman
• Regional focus
– Target the Iraqi oil field trend that extends into the SE
Anatolian Basin of Turkey
– Proven oil and gas province
– Several major discoveries in the last 5-10 years
Hakkari
Bakuk South
SYRIA
Idil
IRAQ
• Team
– Utilize the team’s experience from the Zagros fold belt
– First team to move from the successful exploration area in
Northern Iraq to South East Turkey
• Turkey
–
–
–
–
–
Highly competitive fiscal regime
Well developed oil and gas infrastructure
Strong service industry presence
Strategically located for oil and gas export to Europe
High domestic demand for oil and gas
Portfolio overview
License
Interest
Operator
Basin
P50 gross
resource
Cizre
100%
OPC
SE Anatolia
250
Cavushan
100%
OPC
SE Anatolia
75
Yazman
100%
OPC
SE Anatolia
103
Idil
50%
TransAtlantic (50%)
SE Anatolia
25
Bakuk S.
25%
Tiway Oil (25%)
SE Anatolia
35
Hakkari*
10%
Tiway Oil (90%)
SE Anatolia
252
** Three licenses, OPC with option to increase to 15%
5
E&P Business Environment in Turkey
World leading incentives and fiscal regime
• Stable business environment with attractive fiscal
terms
OilCo’s share of revenue in Turkey vs N. Iraq**
– Royalty rate 12.5%, Corporate tax rate 20%*
– Value of 1 barrel in Turkey typically equivalent to > 5 barrels in
Northern Iraq
• Cost of operating in Turkey is very competitive
– Low production rates from wells in mature basin require low
cost services to be economical
– Drilling of exploration wells in Turkey typically costs one third of
a similar well in Northern Iraq
• Existing infrastructure with immediate access to
international market and prices
– Infrastructure in place with export pipelines to the
Mediterranean
– Enables fast track development of new discoveries
• New oil law from June 2014 provides new
opportunities
– New license applications accepted since June 2014
– Aims to attract international E&P companies to Turkey
*OPC is a Norway incorporated limited liability company subject to 5% withholding tax
6
Core area infrastructure
Exploration in proven oil province with well developed infrastructure
Plains
Raman
OPC Licenses
Prospects
Oil Fields
Domestic Oil Pipeline
Gas Pipeline
International Oil Pipeline
Pumping station
East Saddak – 40km from Cizre
Bati Raman
Road distance
Cizre to Batman
Refinery: 175 km
Caliskan – 30km from Cizre
Tawke – 50km from Cizre
Camurlu 70km
from Cizre
Karatchok – 40km from Cizre
Souedieh – 50km from Cizre
Oudeh 75km
from Cizre
7
The Opportunity
•
Opportunity to invest in a proven oil province
–
–
–
–
–
–
–
–
•
Good access to a low-cost and well established service
industry
A ready local market paying world market prices
Oil source rock present in OPC's core area; high
probability of commercial discoveries
Low-cost development of discoveries; main cost is drilling
of wells
Robust investment case with prices below USD 50/bbl
Money back if a 3 well program only yields one small
discovery (<5 mill bbl) with oil prices down to USD 50/bbl
3x plus return on equity with one discovery of 10-20
million bbl
Discoveries break even at below USD 30/bbl
Elise-1 well site in Siraseki license
Seismic acquisition on the Hakkari license
Opportunity to position in a low price environment
–
Robust case at USD 50/bbl; opportunity to ride the oil
curve going forward
8
Agenda
Table of contents:
1. The opportunity
2. The team
3. Asset portfolio and
strategy for growth
Elise-1 well site in the Siraseki North license
9
OPC Team
Svein Arild Killingland, CEO – 32 years experience
•
•
•
Business development and management experience from a 25 years career with Statoil, in Norway and
internationally
Since 2008 management positions in the E&P start-up Revus, Wintershall, as well as senior partner in private equity
company HitecVision
CEO of small-cap E&P company Noreco 2013-14
Peter Keller, Exploration Manager – 28 years experience
•
•
•
•
Technical and managerial experience from Amerada Hess, PGS, Det Norske and DNO
Responsible for two discoveries in MENA of 80 mmboe and 500 bcf / 60 mmboe
Chief Geologist for field evaluations of the major Tawke field in Northern Iraq
Mr. Keller holds a PhD in Geophysics. Educated at the ETH-ZH in Switzerland and the UC-Berkeley in USA.
Tore Flikka, Senior Petroleum Engineer – 12 years experience
•
•
•
Heavy oil field optimization, offshore supervision as production engineer, well-test engineer for more than 30 DST
operations, including onsite supervision, planning of drilling operations and business development
Past experience from Chevron, Britannia Operator Limited and DNO International
Mr. Flikka holds an MSc in Petroleum Engineering from the Norwegian University of Science and Technology
10
OPC Board of Directors
Tore Nyhus, Chairman of the Board
•
•
•
Certified Auditor with 18 years experience as Managing Partner for various companies providing auditing and
consulting services
Chairman of the board or board member in several companies, including Visena and Compello
Mr. Nyhus is a Certified Auditor from Norwegian Business School in 1987
Knut Åm, Board Member
•
•
•
40 years of experience in the international oil and gas industry including senior managerial and executive positions
with ConocoPhillips and Statoil.
Chairman of the board or board member in several companies like Statoil, Revus, Hitec and NPC.
Mr. Åm has an MSc in technical geology and geophysics from NTH in 1967.
Atle Andresen, Board Member
30 years experience in Oil and Service companies in Norway and internationally, Currently CEO of AGR Energy AS
Christian Thjømøe, Board Member
30 years experience from various leading managerial and board positions in international companies like PwC, Elkem, Jøtul, and Selvaag Gruppen.
Jon Daniel Nesje, Board Member
More than 20 years in managerial positions within the oil industry from companies such as Safetec, CorrOcean and AAK Group
11
Agenda
Table of contents:
1. The opportunity
2. The team
3. Asset portfolio and
strategy for growth
Elise-1 well site in the Siraseki North license
12
Current portfolio and New license applications
Building the portfolio to critical size
Siirt Lead
Potential of 20-60 million bbl
North Cudi trend and Tuzcular lead
Potential of >100 million bbl each
Cizre/Cavushan
Potential of >100 million bbl
Tawke – Idil – Bakuk trend
Potential of >300 million bbl
OPC Licenses
OPC Prospects
OPC License Applications
Fields and discoveries
Leads
Play Concept & Trends
13
License N48-b1, b4 - "Cizre"
Highlights
– Large surface structure equivalent to Caliskan discovery
– Caliskan discovery in same geological setting
– Part of same basin as Caliskan, Tawke and Peshkabir
Exploration History
– Good 2D seismic cover in the southern part of the block. Little 2D seismic in
the northern block.
– No wells have so far been drilled in the block.
However, the block is surrounded by some exploration wells, several with
oil and gas shows.
– The Caliskan-1 discovery, approx. 30 km to the East, is promising for the
play. It’s reservoir and structural setting is equivalent to the main prospect
of the Cizre license.
– Several major oil fields in adjacent areas of Syria and Northern Iraq
Five year exploration phase*
1.
2.
3.
4.
5.
100km regional 2D seismic, 1 well
100km2 3D seismic
One well to ~4000m
Review all data, plan next well
One appraisal/exploration well
*The license is expected to be explored in conjunction with the adjacent Cavushan
Volume Estimates
Prospects
mmboe
P10, P50, P90
Cizre I. - Cretaceous – Mardin Fm.
64, 167, 437
Cizre I. - Jurassic/Triassic – Cudi Fm.
24, 76, 156
14
License N48-a2 - "Cavushan"
Highlights
– Cavushan-01 well (184) produced 38 API oil from Cretaceous
– Part of same basin as Caliskan, Tawke and Peshkabir
Exploration History
– 2D seismic in the southern part of the area
– Cavushan-1, was drilled in 1984 to a TD of 2800m MD in the Triassic Bedinan
Formation, and tested some oil in the Late Cretaceous section
– Several major oil fields in adjacent areas of Syria and Northern Iraq
Five year exploration phase*
1.
2.
3.
4.
5.
60km regional 2D seismic
One well to ~3500m
40km infill 2D seismic
One well to ~4500m
Review all data, plan further work
* The license is expected to be explored in conjunction with the adjacent Cizre license
Volume Estimates
Prospects
Cavusahan FW. – Mardin Fm.
mmboe
P10, P50, P90
20, 44, 82
Cavushan HW – Cret. – Mardin Fm.
4, 8, 16
Cizre I. - Cretaceous – Mardin Fm.
6, 16, 43 (on block*)
Cizre I. - Jurassic/Triassic – Cudi Fm.
2, 7, 15 (on block*)
15
License N47-a3 ("Yazman")
Dirsekli
discovery
Highlights
Extension of Bakuk anticline, with Bakuk Gas field
2014 discovery Dirsekli about 6 km to the East
On trend with major discoveries in Syria and Northern Iraq
Block is part of strategy to position on Bakuk trend
N47-a3
Bakuk trend
N47-a3
–
–
–
–
A
Bakuk field
Exploration History
– No seismic on the block
– No wells drilled on the block
– The area is surrounded by oil fields and exploration wells, several
with oil and gas shows
– Several large fields on the foreland to the South, both in Turkey and
Syria
Five year exploration phase
1.
2.
3.
4.
80 km 2D seismic
Review all data, plan well
One well to ~2500m (Mardin)
50 km2 3D seismic
5.
One well to ~2500m (Mardin)
Dincer field
A’
Camurlu field
A’
A
Volume Estimate
Lead
Mmbo / BCF
P10, P50, P90
Bakuk Trend – Mardin Fm.
(Gas)
26, 58, 127
Bakuk Trend – Cudi Fm. (Oil)
18, 45, 107
Bakuk trend
16
Hakkari licenses
Part of the Iraqi Zagros play
Gross resources
(mmboe)
Prospect
Turkey
P90
P50
P10
PoS
Hakkari A
Jurassic
19
43
95
12%
Hakkari B
Cretaceous
27
62
138
16%
Hakkari B
Jurassic
7
Iran
Iraq
Hakkari B
Hakkari A
Shireen
22
65
12%
Swara Tika
Atrush
Bakrman
Bijeel
Hakkari B
Hakkari A
Shireen
Swara Tika
Bakrman
Atrush
Bijeel
17
Farm-in and acquisition opportunities
Building the portfolio to critical size
Tavan structure (IPEK)
Potential of >20 million bbl
Birini and Botan structures (AME)
Potential of >20 million bbl
Cudi structures (Calik)
Potential of >100 million bbl
Keliktepe, Gercus and Softek structures (Perenco)
Potential of >100 million bbl
OPC Licenses
OPC Prospects
OPC License Applications
Fields and discoveries
Leads
Play Concept & Trends
18
Investment highlights
World class E&P opportunity profitable below USD 30/bbl
Exploration
on trend with
Northern Iraq
Strong team with
proven track-record
from Northern Iraq
Turkey:
Politically stable
and set for low cost
E&P
•
•
•
•
•
•
Exploration acreage on trend with giant discoveries in Iraq and Syria
Prospects mapped with resources up to 500 mmbbl
Currently holding 6 licenses with ~475 mmboe net prospective resources
Applied for several new licenses in core area, expected awards 3Q 2015
Exploration program with 3 high-impact wells during 2016-2018
Significant build opportunities by farm-ins and / or company / portfolio acquisitions
•
•
•
Experienced Board and Management with success from E&P industry and the region
Technical team with proven track-record
Instrumental in DNO’s success in Northern Iraq, where DNO has discovered ~1bn
barrels, currently producing ~125,000 boepd gross
Significant interest from international companies to partner up with OPC for exploring
the Zagros trend in Turkey
•
•
•
•
•
Stable business environment; new oil law in full effect from June 2014
Very attractive fiscal terms for E&P: Value of 1 barrel in Turkey equivalent to more than
5 barrels in Northern Iraq
Efficient and low cost oil service industry in place
Access to local oil offtake market at international prices
19