Presentation on theme: "1 PetroLatina Energy Exploration and Production in Latin America Oil Barrel 22 nd February 2007."— Presentation transcript:
1 PetroLatina Energy Exploration and Production in Latin America Oil Barrel 22 nd February 2007
2 Forward Looking Statement Certain statements contained in this document constitute forward-looking statements. Such forward-looking statements involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of the relevant entities, or the results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements are based on numerous assumptions regarding the Companys present and future business strategy and the environment in which the Company will operate in the future. There can be no assurance that the results and events contemplated by the forward-looking statements in this document, will, in fact, occur. The Company undertakes no obligation publicly to release the result of any revisions to any forward-looking statements in this presentation that may occur due to any change in the Companys expectations or to reflect events or circumstances after the date of this presentation. All subsequent written or oral forward-looking statements attributable to the Company, or persons acting on behalf of the Company, are expressly qualified in their entirety by the cautionary statements contained throughout this presentation. As a result of these risks, uncertainties and assumptions, a prospective investor should not place undue reliance on these forward-looking statements.
3 Aims and Goals To build an independent oil and gas company in Latin America Provide strong growth returns to shareholders To do so in a socially aware fashion ensuring: –Protection of the environment –Development of the local employees
4 Highlights Company Listed on London Stock Exchange on 14th January Operations established in Guatemala on 6-93 licence. Completed one well and two work-overs on the Las Casas structure, two of which confirmed producible oil. Acquired Licence (Tortugas/Atzam) in 2005 Guatemalan licencing round. Obtained significant interests in two exploration licences in Colombia. Acquired Petroleos del Norte (PDN), a Colombian producing oil and gas company. Tested Serafin Gas well at 14 million cubic feet per day in February 2007.
5 Where we are today Two producing licences and five exploration licences in Colombia and two licences in Guatemala Proved, probable and possible reserves of approx. 40 million barrels, with a further 120 million barrels of potential. Current production of approximately 500 barrels a day (bopd), which could rise to 1,500 bopd with secondary development of Colombian Fields Serafin well #1 tests at 14 million cubic feet a day. Commercial gas sales at end 2 nd Quarter Ownership of the strategic Rio Zulia – Ayucucho Pipeline: –2006 Revenue $1.6 million.
7 Shares & Shareholding Ordinary Shares $0.10 – 114,007,122 Diluted – 150,648,601 Options- 1,322,000 Warrants- 35,319,479 Major Shareholders: –Directors & Senior Management17.76% –Rab Capital14.34% –Artemis Investment Management 7.89% –Continental Capital 5.20% –Chasm Lake Management 4.93% –Millenium Global Natural Resources 4.63% –Fidelity International / FMR Corp 3.99%
8 Management Team Chairman and CEO - Greg Smith President and COO – Jay Scott –(Previously Chief Operating Officer, Arawak Energy & Bitech Petroleum) Chief Financial Officer – Ian Refault –(Formerly Commercial Director, PetroKazakhstan (Downstream Marketing) & VP Finance / CFO, Bitech Petroleum) Chief Geologist – Kevin Dean –(Previously Chief Geologist Arawak Energy & Bitech Petroleum, Geologist at Mobil) Executive Director – Mark Patterson –(Managing Partner of Calypso Energy & formerly CEO Compania General de Combustibles Argentina)
9 Management track record Key members of the Team have: –Worked together –A history of generating strong returns to shareholders (PetroKazakhstan, Arawak and Bitech) Successful record in: –Running international E&P companies –Public companies listed on the London, New York and Toronto stock exchanges –Discovering oil fields –Developing oil and gas fields The team also has extensive experience in debt and equity fund raising
11 Location Map
12 183Km long, 10 dia. Two pumping stations 25,000bopd capacity 2006 average 3,176 bopd throughput Rio Zulia – Ayacucho Pipeline
13 PDN Assets Tisquirama Licence –Los Angeles field – 50% interest –Santa Lucia field – 25% interest Lebrija Licence –Dona Maria field – 100% interest Three technical evaluation licences 100% ownership of the Rio Zulia – Ayacucho pipeline with 25,000 bopd capacity
14 Colombian Producing Reserves Millions of stock tank barrels Gross P1 Gross P1+P2 Gross P1+P2+ P3 Net P1Net P1+P2 Net P1+P2 +P3 Los Angeles Santa Lucia Dona Maria Total Table does not include Serafin gas reserves
15 Crude Quality and Pricing Santa Lucia crude is: –18° API –Priced against WTI –Pricing formula = (WTI*0.95)-$6.85 Los Angeles crude is: –13° API –Priced against fuel oil 1 –Pricing formula = (Fuel Oil 1*0.84)-$1.30 –December 2006 discount to WTI-$30
16 Los Angeles Field
17 Los Angeles Tank Farm
18 Santa Lucia Field
19 Serafina Gas Well & Pipeline Tie-in Completed work-over gas well on Tisquirama licence. Initial test flow at 14 mmcf / day High gas demand in Colombia ($ $3.0 mcf) 3.5km tie-in to nearby gas pipeline. Investment $0.6 million (net to interest). Potential payback – months. Fast cash generator.
20 Colombian Exploration Licences Midas –70% interest –Operator –6 year work programme –First year new and reprocessing of 2D seismic ($1.5 million) –Potential based on leads – 90 million barrels (net 63 million) La Paloma –65% interest –Non - Operator –4 year work programme –First year new and reprocessing of 2D seismic ($1.0 million) –Potential based on reprocessed seismic – 90 million barrels (net 58.5 million)
21 Colombian Fiscal Position PDN –Royalty 20% –Ecopetrol back in right Exploration licences –Sliding scale of royalty 5 to 25% –No EcoPetrol back in right Corporate Tax – 35%
23 Guatemala - unexploited opportunity Under explored region with high potential Proximity and similarity in the geology to Mexico Trends in which major Mexican discoveries (e.g. Nazareth Field) have been found extend into Guatemala Positive and encouraging political and economic environment
24 PetroLatinas Guatemalan Licences Licence 6-93 Las Casas Tortugas Area
Licence Location – Peten Basin Area – 323,000 acres Term – 25 years from October 1993 Reconfirmed production at Las Casas. Las Casas 1x - produced at 80 bopd Las Casas 3x - encountered oil. Swab test produced oil. Still to test Huapac potential and additional nine leads
26 Licence 6-93 Leads & Prospects AreaSize (acres) Potential recoverable reserves (mmbbls) Las Casas6, Huapac4, Leads & Prospects 7 AreasAverage of 4,900 each 2-5 each 2 Areas13,000 & 26, each HUAPAC LAS CASAS Drilled / Encountered Hydrocarbons Drilled / P&A Leads / Prospects
27 Refurbished Service Rig
28 3X Drilling Rig
29 Drilling at 3X
30 Tortugas – Licence Location – Peten Basin Area – 77,718 acres Term – 25 years from September wells drilled on the licence of which 8 encountered hydrocarbons Two main areas of interest Tortugas salt dome and Atzam
31 Guatemalan Reseves Millions of stock tank barrels ProvedProved & Probable Proved, Probable & Possible Las Casas Huapac3.310 Tortugas * Total * This does not include Atzam which is estimated to be between 5 and 16 million barrels of potential reserves
32 Fiscal regime Guatemala –Royalty based on API of crude –Profit share, sliding scale linked to production –Cost recovery = 100% –Corporate Income tax at 31%
33 Marketing Options Licence 6-93 Las Casas Tortugas Lincence XAN Field Piedras Negras Rublesanto
34 Work Programme & Financial
35 Colombian Work Programme Q1 2007Q2 2007Q3 2007Q PDN Assets Serafin Development Tisquirama Licence Extension TEAs – Review of TEA Potential Acquire new seismic on retained TEAs Tisquirama Secondary Development Midas & La Paloma Seismic Acquisition Well Studies Geochemical Survey Prospect evaluation Acquire new 3D seismic – La Paloma
36 Guatemalan Work Programme & Review Q1 2007Q2 2007Q3 2007Q Geological/Geophysical/Engineering Review A Atzam 2 remedial work plan 1. Licence 6-93 requires an ongoing detailed technical review to better understand sub-surface geology. 2. Atzam 2 well – strong reservoir pressure but damage to well casing and cement require further work plan & engineering analysis. 3. Force majeure filed on Tortugas area of A licence pending MEM resolving land access issues with Municipality of Coban. 4. Office and field costs reduced to absolute minimum.
37 PDN 2005 Financial Results Turnover – US $7.2 million Earnings – US $0.9 million Operating Cash flow – US $3.2 million PDN 2006 Financial Forecast (Post acquisition) Turnover – US $ 4.3 million Earnings – US $ 1.3 million Operating Cash flow – US $ 1.9 million
38 Market Data ListingAIM EPICPELE NomadSeymour Pierce Public RelationsPelham PR Current share price 28.5 pence (16/02/07)
39 PetroLatina Energy Plc New E& P Company with Latin American focus. Strong management team with extensive oil & gas and international experience, together with track record of running public companies. Acquired strong position in Colombia & Guatemala is an under-explored but potentially prolific oil and gas region. Have current oil production which can be rapidly increased through secondary development in Colombia. Colombian gas commercial production at end 2 nd Quarter 2007 Total 3P and potential reserves are approximately 160 million barrels. Well positioned for future growth, both organically and through acquisitions.
40 Additional Information
41 Guatemalan Fiscal Regime Licence Royalty 20% for 30° API +/- 1% per degree API change Estimated royalty Rate 29 to 30% Minimum Government take <15,000 bopd = 40% <20,000 bopd = 30.07% Maximum Government Take >75,000 bopd = 75% >90,000 bopd = 72%
42 Guatemalan Fiscal Regime Cost Recovery Cost recovery statements required to be approved Only costs related to the defined zone of commercial production are allowed Once allowed, approved cost recovery is fully deductible in period approved
43 Guatemalan - Corporate Income Tax Levied against a companys profits Capital expenditure is 100% allowable in year that it is incurred One third of profit share is deductible Tax rate is 31%