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