sumatec sumatec resources berhad 10 july 2013 presentation … · 2013. 7. 18. · sumatec the...
TRANSCRIPT
THE Leading Malaysian Independent Oil & Gas CompanySUMATEC
SUMATEC
THE Leading Malaysian Independent Oil & Gas
Company
Sumatec Resources Berhad10th July 2013
Presentation to Fund AnalystsBy Chris Dalton
Chief Executive Officer
THE Leading Malaysian Independent Oil & Gas CompanySUMATEC
Key Messages
• Deliver Long Term Profitable Growth
• Proven Mature Asset Portfolio
• Creating Value for Share Holders
THE Leading Malaysian Independent Oil & Gas CompanySUMATEC
Production Sharing Contracts (PSC)Joint Investment Agreements (JIA)
Serv
ice
Service Companies
Exploration Companies
E&P
Equity / Concession
Risk Service Contracts
SUMATEC
Operator: E&P’s
Dialog
Scomi
UMW
Uzma SapuraKencana
Hibiscus
Wah Seong
Why Sumatec is Different!
THE Leading Malaysian Independent Oil & Gas CompanySUMATEC
Why Kazakhstan
Developed economy and legal systemStable political environmentWell established Oil & Gas legislationEstablished export routes for sale of hydrocarbonsConcession contracts as opposed to PSC & RSC
Geopolitical Advantages
30billion bbls of proven reserves (ranked 11th in the world, largest in central asia)1.6mmbbl/day production, double by 2020Low risk onshore mature assetsHigh potential of increasing reserves in our asset
Geological Advantages
Largest land locked country & 9th largest globally
GDP Per Capita 13,892USD (2012 estimate)
THE Leading Malaysian Independent Oil & Gas CompanySUMATEC
Why Mature Assets
<1 yr 1 yr 2 – 3 years
• Licensing Round• Contract
Negotiation• Work Program• Fiscal Regime
3 - 5years
• Geological Study• Seismic Survey• Exploration Wells• Reservoir
Mapping
• Construction of surface facilities
• Drilling of production wells
• Delineation wells• Confirm Reserves• Development
Concepts
• Upgrade surface facilities• Expanded drilling
program
15 – 20 years
Bidding/Acquisition
Exploration Appraisal Early Production Commercial Scale Production
$5-10m $30-40m $15-20m $30-40m More than $50m
20
40
60
80
100
120
140 • High risk mainly on exploration• Low certainty of oil/gas content• If there is no oil and gas find,
the exploration costs will be totally lost
• No more exploration risk• Oil reserves confirmed and
certified
Current status of Rakushechnoye
Risk Profile
Cumulative Cost Profile
USD
mill
ion
• 70% of world production is from Mature Assets• New Technology is increasing recovery factor (RF) from 20% to 40%• Many Mature Assets today have only 15-20% RF, leaving un tapped potential• Majority of Assets are too small for Super Majors to operate at a cost effective level• Proven Reserves & Track Record Reduces Capital Risk
THE Leading Malaysian Independent Oil & Gas CompanySUMATEC
Rakushechnoye Investment
What will Sumatec pay:• 10M USD Signature Bonus• 85M USD Historical Costs• 40M USD Performance Guarantee to be offset against Royalty @ USD5/BBL
What will Sumatec receive:• 100% of Net Income for first 2M BBLS• 50% of Net Income after 2M• Concession period to 2025, can be extended with approval of RoK MOG• All CAPEX & OPEX recovered as part of petroleum operations• Sustainable growth in PROVEN Mature Asset• Initial Investment recovered in first 3 years profits
THE Leading Malaysian Independent Oil & Gas CompanySUMATEC
Entry Price for Sumatec Compared to Peers
THE Leading Malaysian Independent Oil & Gas CompanySUMATEC
Rakushechnoye Field is a Mature Asset• Concession area: 354km2 with subsurface user rights till 2025
• 1st Well Drilled in 1974
•47 Wells Drilled
•3D Seismic acquired 2008
THE Leading Malaysian Independent Oil & Gas CompanySUMATEC
10 Reservoir Zones: 8 gas / gas condensate,
2 oil saturated.
4.7 mmbbl of oil and 51BSCF of Gas
has been produced which is less
than 10% of the original oil and gas
in place
Rakushechnoye Field Reserves(mmboe) Oil Gas Total Oil and Gas
Proved 5.2 17.2 22.4
Proved + Probable
32.8 89.3 122.1
Proved + Probable + Possible
74.7 257.0 331.7
6000SCF = 1BOE.Reserves Certified by SRK Consulting (Australia) Pty Ltd February 2013
Conservative RF: “20% RF for Oil & 25% RF for Gas”
Reserves from 9% of Concession Area
Identified Hydrocarbons in south with potential to double total reserves
THE Leading Malaysian Independent Oil & Gas CompanySUMATEC
Proved Reserves is Low Risk, High Potential of Additional Reserves
• Formations have more lateral extension compared to
north.
• Less faulting, natural closures
• Southern area yet to be tested for commercial potential.
Is not part of 2P reserve calculations
• Triassic reservoir: gas condensate and oil
• Normally pressured at reservoir
• Compartmentalized in the north , a lot of by passed oil
• Two main reservoir drainage areas – north – commercial
, South untested
THE Leading Malaysian Independent Oil & Gas CompanySUMATEC
Stimulation & Workovers1000-2000bbl/day
Sidetracks4000-6000bbl/day
New Wells>8000bb/day
Oil Production Oil & Condensate Production with Gas Injection Oil & Gas Production
Phase 1:2013
Phase 2:2014-2015
Phase 3:2016>
Rakushechnoye Development Schedule
New Storage Facility New Processing & Injection Facilities Pipeline for Oil & Gas Export
THE Leading Malaysian Independent Oil & Gas CompanySUMATEC
Stimulation & Workovers1000-2000bbl/day
Sidetracks4000-6000bbl/day
New Wells>8000bb/day
Well Count & CAPEX
Work Program 2013 2014 2015 2016 2017 TotalWorkovers & Stimulation Jobs 6 12 2 2 2 24Sidetracks from existing wells 0 4 4 0 0 8
New Wells 0 0 2 2 2 6Well Remedial work 0 0 5 5 5 15
Total 6 16 13 9 9 53
Phase 1:2013
Phase 2:2014-2015
Phase 3:2016>
SummaryYear 2013 2014 2015 2016 2017
Total Capex 3,806$ 29,318$ 43,215$ 18,550$ 19,470$ 114,359$
$ in 1000's Total 5 Year Budget
Workover & Stimulation: 200-400K USDSidetracks: 1M-2M USDNew Wells: 5-6M USDField Upgrades: 25M USD: Processing facilities, StoragesPlanning : 2M USD
THE Leading Malaysian Independent Oil & Gas CompanySUMATEC
Risk Assessment
THE Leading Malaysian Independent Oil & Gas CompanySUMATEC
5 Year Business Targets
8000bbls/day (2.9M bbl/year)
Large Independent Oil & Gas Company >200 million bblsProved Reserves
RakushechnoyeOperations
2 Million Bbls From Rakushechnoye
Revenue RMNew Acquisitions
Rakushechnoye
THE Leading Malaysian Independent Oil & Gas CompanySUMATEC
New Board of Directors & Top Level Management
Safety Culture embedded in all out activities
Minimizing Environmental Impact
Focus on Innovation and Efficiency
High Ethical Standards demanded from all employees
Rebranding of the Company
New Management and StrategySUMATECOil & GAS
THE Leading Malaysian Independent Oil & Gas CompanySUMATEC
Redesigned www.sumatec.com Launched June 13
THE Leading Malaysian Independent Oil & Gas CompanySUMATEC
New Investor Relations Section
THE Leading Malaysian Independent Oil & Gas CompanySUMATEC
New Management
Chris DaltonChief Executive Officer
Zulkifly MohamadChief Operations Officer
Based in Almaty
Roshidah AbdullahChief Financial Officer
Joined Sumatec June 201217 Year Industry Experience
with HalliburtonTo Be Appointed in August 2013
30+ Years Industry Experience with Schlumberger including 10 Years as Country
Manager in Kazakhstan
Joined Sumatec April 201324 Years Experience in Financial
Management & Operations
Executive Team
Technical Leaders
Chingis NabiyevTechnical DirectorBased in Almaty
To Be Appointed in August 2013
13 Years Industry Experience with Schlumberger
Samuel Elliot HarveyOperations Director
Based in AktauTo Be Appointed in August
201315 Years Industry Experience with Schlumberger
Bakhtiyar JexenbiyevQHSE DirectorBased in Aktau
To Be Appointed in August 2013
12 Years Industry Experience with Multi-National
Corporations
THE Leading Malaysian Independent Oil & Gas CompanySUMATEC
Management KPIs
Staff & Talent
Daily Production
Increase
Total Reserves
Cost per bbl
Company Values
Shareholder Value
THE Leading Malaysian Independent Oil & Gas CompanySUMATEC
SUMATECOil & GAS
THE leading Malaysian Independent Oil & Gas Company
Deliver Long Term Profitable Growth• Large Independent • Sustainable growth from initial proven reserves
• Rakuschechnoye Low Risk / High Potential• Acquire own Assets with 24 months
• Free Cash Flow from Oil Sales• Attractive Profit Margin & Dividend
Proven Mature Asset Portfolio
Creating Value for Share holders