Download - Northern Petroleum Plc

Northern Petroleum Plc
AGM
June 29 th 2012
Slide 1

Activities During The Period Since Last AGM
In parallel with the mid-2011 downward reserve adjustment an evaluation
of production data to date and reprocessing and remapping of 3D
seismic over all areas in The Netherlands.
A summary so far is:
- Installation of fluid lifting assistance at Wijk en Aalburg
successful.
- Installation of booster compression at Waalwijk successful.
- Project for two new wells on existing pads at Geesbrug initiated.
- Ottoland production test completed and in review.
- Analysis of other fields in progress.
- Some positive signs of reduction in pressure decline at Brakel
and Grolloo.
Slide 2

Activities During The Period Since Last AGM
€3.2 million sale of Northern’s share of the Vinkega gas discovery and
identification of the on-trend Diever West prospect on the adjacent
Drenthe III licence.
Southwest Netherlands shale oil project upgraded by consultants.
Permissions gained in Italy for drilling La Tosca gas prospect and 2D
seismic programme, now completed, in the highly prospective southern
Adriatic Sea.
Zaedyus oil discovery in the offshore of the French Department of
Guyane, seen as a possible new oil province.
Confirmation and production testing of the Markwells Wood oil
discovery, suspended and now being assessed for further actions.
Shell decision not to fund drilling of a well west of Sicily. Discussions
with possible new partner.
Slide 3

Corporate Overview
2010
Production (boe): 0.44
Gross Revenue:
€15.0 m
Production Costs:
€ 4.9 m
Net Administration costs:
€ 4.6 m
Profit from Operations
€ 1.5 m
Profit € (1.2 m)
Cash in hand at year end
€21.4 m
2011
0.58
€24.5 m +
€ 5.3 m +
€ 3.7 m -
€11.0 m +
€ 6.2 m +
€29.8 m +
Slide 4

Reserves
Slide 5

Risk Management
‣ Geographical and geological risks are reduced by the diversity by country
and basin.
‣ Risk is further reduced by mainly investing in basins with proven economic
hydrocarbon production.
‣ All activities are governed by the ratio of the risk of success and failure, and
the ratio of expected reward to cost of the initial investment. These risks are
managed by keeping a low project entry cost relative to the cash on hand
and existing production revenues.
‣ Deploy very high standards of technical and management expertise
and integrity are recognised as essential.
‣ Commitment to the highest standards of environmental and safety practice.
Slide 6

The Northern Petroleum Business Model
Slide 7

Northern’s Activities
‣Interest in 2 producing oil
fields
‣Tested oil discovery
‣Further oil discoveries
and exploration prospects
‣6 producing gas fields
‣2 oil fields awaiting development
‣2 currently planned exploration wells
‣Shale oil potential
‣4 core areas offshore
‣Proven hydrocarbon systems
‣La Tosca-1 onshore well
planned for 2012
‣2011 discovery of
potential new oil province
‣1.25% interest in the
offshore licence operated
by Shell. Tullow Oil and
Total are partners.
‣3-4 well appraisal and
exploration programme
2012/13
Slide 8

Northern Petroleum
‣ Licences and Applications that are Material
‣ Low cost Operator in Proven Petroleum Provinces
‣ Focussed on adding value to Shareholders by a Clear Business Model
‣ No Indebtedness
‣ Exemplary Environmental and Safety Performance
Slide 9

Northern Petroleum
Slide 10

The AGM resolutions
Slide 11

Resolution 1 - Ordinary
“To receive the report of the Directors and the audited accounts for
the year ended 31 December 2011.”
Northern Petroleum Plc – AGM Resolutions Slide 12

Resolution 2 - Ordinary
“To re-appoint KPMG Audit Plc as auditors and to authorise the
Directors to fix their remuneration.”
Northern Petroleum Plc – AGM Resolutions Slide 13

Resolution 3 - Ordinary
“To re-elect G L Heard (who retires from office in accordance with
Article 108 of the Company's Articles) as a Director of the
Company.”
Northern Petroleum Plc – AGM Resolutions Slide 14

Resolution 4 - Ordinary
“To elect Dr R W Gaisford (who retires from office in accordance
with Article 113 of the Company's Articles) as a Director of the
Company.”
Northern Petroleum Plc – AGM Resolutions Slide 15

Resolution 5 - Ordinary
“To elect M L Eaton (who retires from office in accordance with
Article 113 of the Company's Articles) as a Director of the
Company.”
Northern Petroleum Plc – AGM Resolutions Slide 16

Resolution 6 - Ordinary
“To authorise the Directors, pursuant to and in accordance with section 551 of
the Companies Act 2006 (the “Act”) to exercise all powers of the Company to
allot ordinary shares in the capital of the Company and grant rights to
subscribe for or convert any security into ordinary shares up to a maximum
aggregate nominal value of £1,192,075 (being approximately 25% of the
Company’s issued share capital as at the date of this notice), provided that
such authority shall expire at the conclusion of the next Annual General
Meeting of the Company, except that the Directors may, before such expiry,
make offers or agreements which would or might require ordinary shares to
be allotted or rights to be granted after such expiry and allot ordinary shares
or grant rights in pursuance of such offers or agreements.”
Northern Petroleum Plc – AGM Resolutions Slide 17

Resolution 7 - Special
“To authorise the Directors, pursuant to and in accordance with section 570
and 573 of the Act, to allot equity securities (as defined in section 560 of the
Act) for cash as if sub-section 561 of the Act did not apply to the allotment
of equity securities pursuant to the authority conferred on them under
section 551 of the Act up to the aggregate nominal value of £476,830 (being
approximately 10% of the Company’s issued share capital as at the date of
this notice), such power to expire on the earlier of the conclusion of the next
Annual General Meeting of the Company and 15 months after the date of the
resolution (but so as to enable the Company, before the expiry of such
power, to make offers or agreements which would or might require equity
securities to be allotted after such expiry and to enable them to allot equity
securities for cash pursuant to such offers or agreements as if the power
conferred thereby had not expired).”
Northern Petroleum Plc – AGM Resolutions Slide 18

Resolution 8 - Special
“To authorise the Company, generally and unconditionally, to make market
purchases (within the meaning of section 693(4) of the Act) pursuant to and
in accordance with section 701 of the Act of fully paid ordinary shares in the
capital of the Company upon and subject to the following conditions but
otherwise unconditionally:
• maximum of 4,768,300 shares;
• maximum price of 105% of the average of the middle market quotations for
an ordinary share for the five business days immediately preceding the day
on which such ordinary share is contracted to be purchased;
• minimum price shall be the nominal value of such ordinary share; and
• authority to expire earlier of i) next AGM or ii) 15 months.”
Northern Petroleum Plc – AGM Resolutions Slide 19

The AGM is now closed
Slide 20

Post AGM presentation
Slide 21

The Netherlands
Slide 22

The Netherlands
‣6 producing gas fields
‣2 oil fields to be developed
‣2 development wells to be drilled
‣2 exploration wells to be drilled
‣Shale oil potential
Slide 23

West Netherlands Basin - Shale Oil Potential
20-30 billion of barrels of oil in place
Rock characteristics compare very
favourably with US analogues
Eagle Ford
Utica Shale
Report Concludes:
Good TOC
Good porosity
Good permeability
Slide 24

The Netherlands – Seismic Reprocessing
Drenthe III Licence & Oosterwolde
Oosterwolde licence
Seismic reprocessing project
merging seven 3D surveys
commenced in April 2011 with
completion due September 2012
Geesbrug fast track delivered
November 2011
Edited input area = 1250 sqkms
Drenthe III licence
PrSDM output area = 1060 sqkms
Slide 25

Geesbrug field – two development wells planned
Base Zechstein Depth Map
Tiendeveen-1
Geesbrug-3 well trajectory
Geesbrug-1
Geesbrug field outline
Geesbrug-2 well trajectory
Slide 26

Geesbrug-2 development well trajectory
Well designed as a
long reach 1,000
metre inclined
trajectory for
planned multi-stage
frac
Slide 27

Drenthe III Production Licence
Prospect inventory pre seismic reprocessing
R8
R7
R5
Eesveen North
Eesveen
R1
0
Diever West
Diever East Boterveen West
R6
Eesveen East
Eesveen SE
R9
R4
R2 North
R3
R2
R1
Boterveen
Lhee West
Lhee South
Gas field
Upthrown prospect
Downthrown prospect
Lheebroek
Lhee North
Lhee
NW
NE
26 prospects mapped
SW
0 5
kms
Base Zechstein Depth Structure
SE
Geesbrug
Slide 28

Diever West prospect (30 Bcf potential) and relationship to
Vinkega gas field
VKG- 1
A
Vinkega
R7
Diever West
B
A
Vinkega R7 Diever West
B
Slide 29

The Netherlands – 3D and 2D Seismic Reprocessing
Papekop, Andel V, Utrecht and Engelen
Seismic reprocessing project
merging five 3D surveys plus
reprocessing 960 km 2D
seismic commenced in April
2011 with completion due July
2012
Papekop fast track delivered
July 2011
Slide 30

The Netherlands – 2D to 3D seismic - uplift in data quality
2D seismic section
Slide 31

The Netherlands – 2D to 3D seismic - uplift in data quality
3D seismic section
Slide 32

1 km
Papekop 3D – original processing in time
TWO-WAY TIME (second)
1 km
Slide 33

DEPTH (metre)
1 km
Papekop 3D – fast track pre-stack depth migration processing
Slide 34

DEPTH (metre)
1 km
Papekop 3D – fast track pre-stack depth migration processing
TOP
RESERVOIR
Slide 35

Vlist structure – planned well on 47 bcf target
B
A
B
A
• Southern extension of HST-2B tight gas discovery
• Min. closure equivalent to gas water contact in HST-2B
• Max closure to ~2300 m ss matches spill point from
Ottoland and into Willeskop fault block
Slide 36

United Kingdom
Slide 37

United Kingdom
‣ Interest in 2 producing
oil fields
‣ Tested oil discovery
‣ Further exploration
Slide 38

UK Operations
Markwells Wood – Wellsite and access track
Slide 39

Weald Basin
1987 2D seismic – 1987 original processing N
S
STORRINGTON OILFIELD
N
Slide 40

Weald Basin
1987 2D seismic - 2008 reprocessing giving improved resolution
S
STORRINGTON OILFIELD
N
Slide 41

P1916 & PEDL 240 – Isle of Wight
Prospect – Sherwood sandstone target (reservoir at Wytch farm)
Prospect target
B
A
B
A
Sherwood sandstone depth map
Sherwood target
Northern Petroleum (GB) Ltd, PEDL 240: TCM & OCM, 9th December 2011
Slide 42

Italy
Slide 43

Italy
‣4 core areas offshore
‣Proven hydrocarbon systems
‣La Tosca-1 onshore well
planned for July/August 2012
Slide 44

Longastrino permit – La Tosca prospect
Slide 45

Longastrino permit– Schematic Geological Cross Section
Projected Longastrino permit
• Series of thrust anticlinal trends with backthrusts, truncations & onlaps
• Alfonsine gas field (300 Bcf) only 2 Km to the south
• Ravenna gas field (185 Bcf) 5 Km to the south-east
• Plio-Pleistocene proven targets, Miocene probable targets
Slide 46

La Tosca wellsite
Rig contract in place and well spud planned for late July/August
Orca Exploration to earn up to 75% by funding drilling and testing
Slide 47

ITALY – Offshore Core Areas
Large Reserve Potential
1. West of Sicily
Thrust Belt
4
2. Sicily Channel
3. Biogenic and
Thermogenic
gas offshore
Sicily and in the
Taranto Gulf
4. Southern
Adriatic
1
3
2
Slide 48

ITALY – Offshore Core Areas
Large Reserve Potential
1. West of Sicily
Thrust Belt
4
2. Sicily Channel
3. Biogenic and
Thermogenic
gas offshore
Sicily and in the
Taranto Gulf
4. Southern
Adriatic
1
3
2
Slide 49

Southern Adriatic – Fields and Prospects
53.16 million barrels of Probable Reserves
in Rovesti and Giove discoveries
Real potential in the exploration upside
estimated at 8.5 billion barrels of oil in
place and 10 TCF of gas in place
Slide 50

2011 2D Seismic Acquisition campaign brief summary
• Completed within timeframe (6 days)
• Adherence to all Ministry (including environmental)
prescriptions
• No issues with fishing / shipping etc
• Full QHSE compliance – 3 vessels - no incidents or
accidents
• Within budget
• Achieved objectives – infill dataset and permit work
commitment
Slide 51

2011 2D seismic acquisition
Area of operation / manoeuvre / constraints
• 1 nautical mile safety
exclusion zone for
Aquila FPSO Betatank II
• Eni Concession
(green outline)
•12 nautical miles from
coast protected area
•Italy–Albania border
Slide 52

Rovesti – structural mapping incorporating 2011 2D seismic
S
A
A’
N
11.725 km 2
Areal extent
based upon ODT
A’
Oil presence in
Rovesti from
2370m TVDSS
10km
A
Spill points =
2562m TVDSS,
Oil Down To
(ODT) = 2562m
from log data
Slide 53

Rovesti – 1994 2D seismic - reprocessed from paper copy
S
N
5km
Slide 54

Rovesti – improved resolution 2011 2D seismic
S
N
Re-sedimented
carbonate wedge
or basin floor
turbidites?
5km
Slide 55

Mercurio prospect– 1994 2D seismic reprocessed from paper copy
SW
A
NE
A’
Mercurio
A’
5km
A
Slide 56

Mercurio prospect – 2011 improved resolution 2D seismic
SW
A
NE
A’
Mercurio
A’
5km
A
Slide 57

Cygnus Prospect
SW
Medusa discovery
Cygnus prospect – located
down dip of platform margin –
“toe of slope” location.
Seismic character change
beneath “Top Carbonate” and
possible lateral extension
basinwards
NE
A
A’
Top Pliocene
A’
Top Messinian
Top Carbonate
Cygnus
Top Jurassic/ dolomites?
Top Triassic?
A
Cygnus Prospect structural setting analogous to Brae fields, Viking Graben
Slide 58

Cygnus prospect – improved resolution 2011 2D seismic
S
N
A
A’
Top Messinian
Top Carbonate
Top Jurassic/ dolomites?
A’
Top Triassic?
Cygnus prospect – located down dip
of platform margin – “toe of slope”
location. Seismic expression at top
Carbonate level, with amplitude
brightening directly above.
A
Slide 59

Permit areas for 3D seismic acquisition planned for 2012
Survey 1
Survey 2
392km 2 468km2
•Two 3D surveys planned
for 2012
• New environmental
impact assessment
submitted early 2012
•Potential availability of
vessel in October 2012
•Subject to receiving
timely authorizations
from the Italian Ministry
Total = 860km 2
Slide 60

Guyane
Slide 61

Offshore Guyane - Zaedyus Oil Discovery
Opens up new oil province – Rapid follow-up in 2012
Northpet Investments Limited has 2.5% interest*, Tullow Oil 27.5%, Shell 45%, Total 25%
The first ever deep water well was also the first significant
discovery in the region. There is proven upside potential in two
formations.
The second phase of exploration and appraisal will start in July
2012 with the drilling of a Zaedyus delineation well, followed by
an exploration well on a prospect defined by the existing 3D
seismic survey.
Additional 3D seismic surveys are planned to commence July
2012.
*Northern owns a 50% equity interest in Northpet Investments Limited
Slide 62

Future near term plans
‣ Northern Petroleum continues to identify and appraise new projects in conjunction with
progressing on its trading activities
‣ Field operations to optimise production rates in the Netherlands
‣ Analysis of long term test of Ottoland to progress development options
‣ New production wells at Geesbrug gas field in Netherlands
‣ Two exploration wells planned in the Netherlands
‣ Papekop oil field development options being progressed
‣ West Netherlands Basin shale oil potential, partner being sought
‣ Acquire two 3-D seismic surveys in Southern Adriatic Q4 2012
‣ Drilling of La Tosca prospect in the Longastrino permit, spud July/August 2012
‣ Post oil production test analysis at Markwells Wood
‣ Appraisal/development well at Baxters Copse
‣ Appraisal and exploration wells plus more 3D seismic offshore Guyane
Slide 64

End of Post AGM Presentation
Slide 65