Transcript Slide 1
Trinidad Energy Chamber
Neil Ritson 19 November 2014
London (AIM): LGO
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Company Profile London Stock Exchange Producing Oilfields
London HQ Spain Trinidad
Staff Net Production Capacity 2P Reserves Market Cap - listed on AiM, 2007 - Trinidad and Spain - 52 (All local)
- approx. 1200 bopd - 7.6 mmbbls - ~£120 million
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Management and Board of Directors
Chairman Chief Executive Officer Chief Operating Officer Finance Director Non-Executive Director Non-Executive Director Steve Horton
Holds a BSc in Mining Engineering and an MBA. He has 35 years experience working in the energy industry including 27 years with BP plc where he held executive roles including worldwide Director of Drilling. He co-founded Silverstone Energy Limited in 2005.
Neil Ritson
Has a BSc in Geophysics. He has worked in the energy sector for over 35 years, initially with BP plc for 23 years before managing the international operations of Burlington Resources Inc. before founding the Vanguard Energy Group where he was Chairman and CEO.
Fergus Jenkins
Is a Chartered Engineer with a BEng in Mining Engineering and a MEng in Petroleum Engineering. He has over 20 years of experience working in industry, initially in mining before moving to petroleum, where he has worked for Enterprise Oil, LASMO, OMV (UK) Ltd and Afren plc.
James Thadchanamoorthy
Has a degree in Chemistry and is a qualified accountant. He has 18 years’ experience, including over 10 years spent at BP where he held a number of commercial and finance leadership positions.
Iain Patrick
Is a lawyer with over 30 years’ experience in the international oil and gas industry. He joined Monument Oil and Gas plc in 1988 where he was Commercial director until its sale in 1999. Subsequently Mr. Patrick was Commercial Director of Gulf Keystone Petroleum (UK) Limited.
Michael Douglas
Mr. Douglas has worked in the business consultancy sector for 40 years. He was a Managing Partner for PA Consulting and in 1993 Mr. Douglas founded the Quo Group, a consultancy specializing in behavioral change, performance and talent management, and executive coaching.
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Share Price
600% 500% 400% 300% 200% 100%
KEY AIM Total Return
Well GY-664 on production Goudron drilling plans announced Goudron drilling underway Completion of GY-665 Fall in oil price, bear market Nov 2013 Jan 2014 March 2014 May 2014 July 2014 Sept 2014 Nov 2014 Share price has: • Increased by over 10 fold since acquiring the Goudron Field • Outperformed the AIM Total Return in 2014 by > 350% in the last year 4
SPAIN
Ayoluengo Field, Cantabrian National Park, Spain
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Spanish Assets
OVERVIEW:
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Only producing oil filed in Spain discovered in 1960’s, produced 18 mmbbls
• •
Current production 100-200 bopd Where LGO leant how to operate
ASSETS:
Ayoluengo Oilfield
(Discovered 1964) • • •
Oil in place 104 mmbbls Production concession renewal in 2017 Deepen to the proven Liassic reservoirs Hontomin Oilfield
(Discovered 1968) •
Test production only to date
• •
Development as a satellite to Ayoluengo Awaiting a production concession Tozo Gas Field
(Discovered 1965) •
Test production only
•
Development as either a micro-Compressed Natural Gas or a Gas-to-Wire project TOZO GAS FIELD AYOLUENGO OIL FIELD HONTOMIN OIL FIELD
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TRINIDAD
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Trinidad Management Team
Country Manager HSE Manager Senior Petroleum Engineer Drilling Engineer Non-Executive Director Senior Consultant Alex Almandoz
Highly experienced drilling and workover operator. Managing Director od Altech Services since 1994, operating 5 workover rigs with capability to 8,000 feet. Perviously Operations Manager for Terra Mar. Worked with Halliburton on coiled tubing operations from 1987 to 1991.
Zameer Rahaman
Experienced HSE professional with over 25 years working in the HSE sector of the energy industry previously worked with Primera, The Offshore Drilling Company and Bechtel on land and marine operations in Trinidad.
Rabindra Harricharan
Has a BSC in Petroleum Engineering from UWI and has worked for over 24 years in the oil sector with Primera, Barbados National Oil Company and Petrotrin. Extensive experience with artificial lift, stimulation, coiled tubing and EOR technologies.
Vishan Beharry
Holds a MSc in Petroleum Engineering and a BSc in Physics from UWI. More than 15 years experience in the drilling sector working with Sadhna Petroleum, CoPetrol, Baker Hughes Inteq and WASA
Winston Boodoo
A geologist with more than 37 years of varied international experience gained working for Total, Elf, Occidental Petroleum and Petrotrin. Holds a BSc and MSc in geology from the University of Wyoming
Tim Gabriel
Has over 40 years of hydrocarbon geoscience experience working for a wide range of Trinidad focused companies including Primera, Petrotrin, Trinyopex (where he was Chief Geologist) and Texaco. In recent years has worked as a consultant for clients including Niko Resources 8
LGO’s Trinidad Assets
Three asset areas in the prime hydrocarbon play zone:
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Goudron IPSC (100%) with 2P reserves of 7.2 mmbbls and over 60 mmbbls of contingent
resources associated with a future water flood. Active production growth from a 30 well infill development drilling programme now drilling well seven •
Icacos Field in the Cedros Peninsula (50%, non operator), producing ~35 bopd from three wells.
Future opportunities for infill and redevelopment •
Over 7,500 acres of largely unexplored 100%
owned private oil leases in the Cedros and in rights held in partnership with Beach Oilfield Limited •
HOA signed for acquisition (100%) of Trinity-
Inniss Field. Existing production of 140-150 bopd from 25 active wells with immediate new and infill wells upside
CEDROS LEASES TRINITY- INNISS AQUISITION GOUDRON IPSC
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Goudron Field Overview
• • • •
Goudron is located in Guayaguayare and produces light oil (averaging at least 38 o API) Discovered in 1927 the field has a long history, but only limited production with less than 5 mmbbls produced
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154 wells were drilled before 1981, last previous well GOU-1/2 in 1991/2; LGO started drilling in April 2014 LGO acquired the IPSC in October 2012 and has since then:
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Conducted over 70 well reactivations
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Carried out several recompletions Drilled 7 new wells in a 30 well redevelopment
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Placed 5 wells on stream (as @ end Oct 2014) Production has already increased from 30 bopd to over 900 bopd and is set to exceed 1,000 bopd in late 2014
Goudron well GY-257 Reactivated 2012
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Goudron Phase 1: Infrastructure
• • • •
Located in the remote primary forests of the Trinity Hills Wildlife Sanctuary Limited work undertaken over last 30 years LGO has:
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Increased sales tank capacity 5-fold Refurbished previous tank facilities Repaired bridges and roads Installed a new communications Extended and restored electrical power Constructed new water treatment facilities Created a platform for future growth
• •
Commissioned facilities with:
• • • • • •
offices workshops stores hot-work area crew rest area accommodation
Workshops
All key infrastructure is now in place for the 30 well drilling campaign now underway and capacity for oil production up to ~ 2,000 bopd
SITE ROADS Sales Tank Battery #34
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Phase 2: Infill Development Drilling
Existing Wells New Infill Wells Production at C-sand level Well 64
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Infill locations selected to have low risk of finding oil pay based on offset wells Where upswept oil is predicted to be present by comparison with nearby wells Well 188 Well 664
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Goudron Drilling Status
(@ 19 th Nov 2014)
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Drilling to date: 7 of the 30 new wells have been drilled, #8 is drilling 5 new wells are currently producing, GY-664 to 668 GY-667 is to be recompleted in the Gros Morne (approved) GY-669 and GY-670 are awaiting completion (late 2014) Well GY-671 is currently drilling from the third drill site
GY-664
Well results to date: Well Name Spud TD (MD) FT TD Goudron Net ft pay C-Sand Net ft pay Completion Formation Openhole Flowrate bopd
1 2 3 4
GY-664 GY-665 GY-666 GY-667
28/04/2014 27/05/2014 16/06/2014 10/07/2014 5 6 7
GY-668
09/08/2014
GY-669
05/10/2014
GY-670
28/10/2014 4,212 2,750 3,357 4,006 3,026 3,505 4,300 13/05/2014 08/06/2014 03/07/2014 10/07/2014 27/8/2014 24/10/2014 9/11/2014 192 195 185 187 191 227 206 300 256 237 247 254 248 242
30/05/2014 Gros Morne 15/09/2014 Gros Morne 18/9/2014 Gros Morne 27/9/2014 Lower Cruse 23/9/2014 Gros Morne 490 700 300 220 330 2360 Gy-668 Gy-666 Gy-664 Gy-665 Gy-670 Gy-669 Gy-672 Gy-667 Gy-671 PRODUCTION LIMITED by 8/32” CHOKE
0 10k m
Constrained Flow Rate ~ 750 bopd
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Goudron Phase 3: Water Flood
• • •
Local analogue at Beach-Marcelle Field recovered approximately 30 mmbbls Wealth of local experience in Trinidad Over 60 mmbbls of 3C (contingent) resources
• • •
Existing study for > 4,000 bopd capacity. New scoping studies starting now Collection of critical data during current drilling phase LR Senergy have been engaged to lead the technical work
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Goudron Production Forecast
• • Continue with Phase 2 primary recovery drilling programme; wells 9 to 30 Initiate a field-wide water-flood to boost production and ultimate recovery
Goudron Production Forecast
bopd 8 000 7 000 6 000 5 000 4 000 3 000 2 000 1 000 2014 2015 2016 2017 2018 2019 2020 2021 Base production 2022 WF 2023 2024 2025 2026 2027 2028 15
Expectations to end 2015
• Complete first 8 wells by end 2014 • Build two more drilling pads • Install a Lease Area Custody Transfer (LACT) meter • Drill wells #9 through #16 and place them on production • Complete the ongoing LR Senergy development studies • Prepare a new reserves report to reflect the results obtained in Phase 1 and 2 • Continue drilling wells #17 onwards 16
Cedros Peninsula
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Plans for the Cedros
• LGO holds rights to over 10,500 acres of largely underexplored leases • Evaluate all existing data and wells. Only deep well found oil • • En echelon trend with the Soldado offshore fields complex • Acquired a micro seepage survey in 2014 Flying a high resolution gravity and magnetics survey in late 2014
Installing new well tanks
Block of oil impregnated Herrera Sandstone from Galpha Point 18
Why use airborne gravity?
• • • Long regional 2D lines of moderate quality Marked lack of success with the 3D method Extensive global success in combining FTG and 2D seismic
3D Inline 290 2D Line 90120
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Airborne FTG Survey
• • • Survey to be flown in late 2014 by ARKeX Limited ( www.arkex.co.uk
) First use of Full Tensor Gravity Gradiometry in Trinidad Multi-client survey: current participants are Petrotrin and LGO Energy 20
Future
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Where does this lead…
16000 14000 12000 10000 8000 6000 4000
Trinidad is an ideal place for LGO to do business
Spain Trinity-Inniss Cedros (50%) 2000 Goudron, including Water Flood 0 2014 2015 2016 2017 2018 Spain Base 2019 2020 Goudron 2021 Trinity-Inniss 2022 2023 Spain Invest 2024 Cedros 2025 2026 2027 2028 22
Delivering Growth through the Acquisition of Proven Reserves & Enhancement of Producing Assets
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