Transcript Slide 1
Gold Oil plc Background Information By Michael Burchell Chairman 11th December 2007 Management Team Chairman – Michael Burchell, over 45 years intern. E&P experience. as petroleum engineer, economist and board level MD Managing Director – Gary Moore, over 35 years intern. E&P experience as petroleum engineer, negotiator and board level director Financial Director – Pat Mahony, over 29 years intern. E&P experience as an accountant and board level FD. Peru Country Manager – Thomas Tidow, over 25 years international E&P experience as a mechanical engineer and in business development. All services contracted out Some Basic Facts & Forecasts Funds raised £8,546,000 Funds spent £1,380,000 Investor Funds left £7,166,000 (Z34 and Rosa Blanca Carry worth £ 1,700,000 so actual funds spent – £320,000) Revenue less Overhead 2007 Expected Revenue less Overhead 2008 £465,000 £3,500,000 Statistics Significant shareholdings Name JIM Nominees Limited Mark Pritchard Clachan Nominees Limited Ben Anderson John Gary Moore MAN Financial TD Waterhouse Nominees () Barclayshare Nominees Limited Total Shares (million) 64.7 42.8 37.0 27.5 23.5 19.5 19.1 14.9 % of Company 13.6 9.2 8.0 5.9 5.4 4.2 4.1 3.2 247.3 52.0 Directors Interests Ordinary Shares M N Burchell 6.15 J G Moore 23.45 P G Mahony 0.0 Million Ordinary Warrants of £0.01 of £0.09 1.15 5.4 4.6 10.0 1.15 0.0 GOO Share Price (2005 – 07) 475,653,909 @ 11.75 p/share = £60 million Mkt Cap A busy 3 years July 2004 October 2004 February 2005 October 2005 March 2006 March 2006 April 2006 May2006 June 2006 July 2006 September 2006 February 2007 February 2007 April 2007 June 2007 AIM Promotion Licence Block XI Peru Promotion Licence Block Z34 Peru Bought Ayoluengo from Northern Petr. Placement £3.6 MM Nancy-Burdine-Maxine Colombia Plectrum F.I. Z34 50% Exploration Licence Block XXI Peru Placement £2.5 MM + warrants Spud SA-1X Start production N-B-M Colombia Exploration Licence Block Z34 Peru Acquired interest in Minmet Recognised as Operator Cuba Rosa Blanca exploration licence October 2007 Minmet unravelled Gold Oil’s Strategic Plans Oil High Risk-High Reward Exploration: • XXI, Z34, Rosa Blanca, Cuba Low Risk Production with Appraisal Upside: • Nancy-Burdine-Maxine) Gas Short term • Peru Duke power generation Long term • MAN-Ferrostaal petrochemicals (MoU renewed) Difficulties • U.S. silly money now arriving in Peru & Colombia • Severe lack of equipment & competent people, despite the price paid The Regional Dichotomy Regional Competitiveness (for crude only) Contractor Take (%) 60 50 Perú Attractive Colombia Bolivia Brazil 40 Ecuador T&T Argentina 30 20 Not Attractive Venezuela 10 0.20 0.60 1.00 1.40 1.80 2.20 Effective Prospectivity (bo/US$): net (WI) risked reserves / exploration capex PERU PERU Block XXI • Huge Block (14 N Sea)with little information. • Seismic expensive, slow & no info on Palaeozoic: made aeromagnetic survey • Drilled stratigraphic well on aeromagnetic high. • San Alberto 1X targeted: Verdun (Olympic Gas) & Palaeozoic at (San Pedro Oil Field) • Well TD 5,113 ft logged h/c • 315ft gross in Verdun • 250ft gross in Palaeozoic • Test inconclusive due to very saline water from base of well • New geophysical surveys encouraging Block XXI Logs-Verdun (Conex) Schlumberger Middle Paleozoic Conex Lower Palaeozoic Peru Block XXI DNME Survey • SA-1x has porosity, permeability, pressure and hydrocarbons on logs • SA alone is 25,000 acres with potential oil in place of 520 MMbbl • Russian company acquired 210kms over structure. Results look good • Drill one or two appraisal wells early next year ($1.5 MM) • Farm out two or more exploration wells on other structures in the southern part of block for 50% • EIA may cause delay to exploration wells Proposed New Well SA-1X PERU Block Z34 • 371,000 ha – 17 N Sea blocks • Totally unexplored with four major oil fields in shallower water to the East (335 MMbbl produced) • Water depth varies from less than 400 ft to over 10,000 ft, but over 70% of the block reachable with long reach wells from 400ft contour • Seismic (Q1,2008) ($2 MM) needed to define resource potential: • extensions of existing fields • deep water turbidites • fault traps • Potential could be “Mega” (17 N Sea blocks, Forties = 1 block). • Lots of interest in the area Nancy, Burdine & Maxine • Gold took 40% stake (18.88% net) from local Operator for $550,000 • Work over wells left by Texaco • Production averaging 700 bopd. Gold NCF @$200,000 per month. • Pressure test shows 850 – 1,000 bopd possible after pumps upgraded Q2 08 • Waiting EIA approval to re-enter 5 Burdine wells (Q1-2 08) ($0.6MM): P50 potential 600,000 bbl to Gold. • All development costs from cash flow • Finance partners against reserves? • Nancy reserves: Gold’s P50 were 131,000 bbl, now double that, with exploration potential of 4.8 MMbbl Colombia – Rosa Blanca • ANH contract, 8% royalty: “Ready to drill” • API 36o P50 STOOIP 113 P50 Resource 26 MMbbl • Farmed out 50% to Osage for carry first well & testing • Well due May 08, waiting EIA • Osage lots of data & see 3 other large structures Rosa Blanca Cuba • • • • • Oil discovered many years ago but operator pulled out 28 shallow prospects identified with top 4 potential resources of over 2 billion bbls light oil. 3 prospects ready to drill without seismic Excellent potential for “company maker” Progress to PSA very very slow Summary of Where We Are Waiting for: • Block XXI EIA for 2 Exploration wells • Z 34 EIA for 2,000Km seismic programme • Burdine EIA for 5 re-entries and work overs • Rosa Blanca EIA for 1 Exploration well • Cuba Government approval • Block XXI Technical analysis (For appraisal well) • Nancy Technical analysis (For seismic and development well) How are we doing? Tangible Value of P50 Reserves only Country Spain Reserves barrels Production barrels oil per day P50 Reserves @$27/bbl Production @ $60,000 per bopd 66,000 12.4 $1,870,000 $745,000 Colombia 82,000* 120.0 $2,215,000 $7,200,000 Total 148,000 142.4 $4,085,000 $7,945,000 (*CPR has not seen the new mapping as yet) Carry by Plectrum (Cairn) on Z34 $1,700,000 Carry by Osage on Rosa Blanca $1,700,000 Returnable Guarantees $1,360,000 Cash at hand $13,683,122 Total $22,500,000 - $26,300,000 at cost Commitments 2008 one well in Peru $1.2MM How are we doing? Intangible Value of Resource barrels Project “Risked” Resource MM bbl Value @ $0.5/bbl $MM Peru XXI 250 $125 Peru Z34 500 $250 Colombia N-B-M 3.2 $1.6 Colombia Rosa Blanca 8.6 $4.3 Cuba 1,000 $500 Total 1,761.8 $880.9 Some Basic Facts & Forecasts Funds raised £8,546,000 Funds spent £1,380,000 Investor Funds left £7,166,000 (Z34 and Rosa Blanca Carry worth £ 1,700,000, so actual funds spent – £320,000) Revenue less Overhead 2007 £465,000 Expected Revenue less Overhead 2008 £3,500,000 Value Going Forward? Tangible Value of Reserves $4 to $8 million Cash and Carries $14 million Intangible Resources $880 million Total $900 million Current Market Cap & Share Price £47.5 million @ 10p/share Future Market Cap & Share Price (undiluted) £500 million & £0.95/share