Brian Larkin, Chief Executive - Corporate Presentation March 2021 - March 2021 - Proactive Investors
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Corporate Presentation
March 2021
Brian Larkin, Chief Executive
www.uogplc.com
www.uogplc.com March 2021 AIMAIM
UOGUOG
DISCLAIMER
This presentation (“Presentation”) is being supplied to you The Presentation may not be reproduced or redistributed, in These risks include, but are not limited to, risks associated with the
solely for your information. The Presentation has been prepared whole or in part, to any other person, or published, in whole or oil and gas industry in general, delays or changes in plans with
by, and is the sole responsibility of, United Oil & Gas Plc (the in part, for any purpose without the prior consent of the respect to exploration and development activities and capital
“Company”, “UOG”, “United”, or “United Oil & Gas”). The Company. expenditures, the uncertainties of estimates and projections relating
directors of the Company have taken all reasonable care to to production, political risks, costs and expenses and health and
ensure that the facts stated herein are true to the best of their safety and environmental risks, commodity price and exchange rate
The Presentation or documents referred to in it contain
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forward-looking statements. These statements relate to the to access sufficient capital, and risks relating to the ability to
The Presentation does not constitute, or form part of, an future prospects developments and business strategies of the complete capital markets transactions referred to in the Presentation.
admission document, listing particulars, a prospectus or a Company. Forward-looking statements are identified by the
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2
CORPORATE OVERVIEW
SHARE DATA
GROWTH, OPPORTUNITY,
SHAREHOLDER UPSIDE Share Price 4.5p
Shares in Issue 625,153,968
Full Cycle Multinational E&P with High-Quality Portfolio
Market £28.1m
Capitalisation
Production of 2,243 BOEPD (Q4 2020 with Significant Upside) SIGNIFICANT
SHAREHOLDERS
Tangible NAV $8.3p/share Joshua Rowe 3.55%
RENAV of $262 million. David & Monique
Broker price targets 28p & 25.2p 3.54%
Newlands
Management 3.50%
Multiple Value Triggers in 12 months SW Richards 3.20%
*Multi-well 2021 drilling programme underway
Premier Miton 3.04%
3
HIGHLY EXPERIENCED TEAM FOCUSED UPON DELIVERING VALUE
Brian Larkin Jonathan Leather David Quirke Graham Martin Iman Hill Tom Hickey
CEO Chief Operating Officer Chief Financial Officer Non-Executive Chairman Non-Executive Director Non-Executive Director
Global Multinational Experience with Major Players
• Tullow Oil • BG Group
• West Africa • Latin America • Shell • Dana
• North Africa • Asia • Assala • Energean
• Europe • Caribbean • BP • Boru Energy
4
ASSET PORTFOLIO
Any Value markersfrom Cairn deal that
make ours look especially good (or
bad!) - $/boe, $/flowing barrel ( Jan
2021 numbers), etc?
EGYPT P+D+A+E ITALY D+A+E UK A+E JAMAICA E
• 2,243 boepd net working • CNS: 27 mmbbls net • 100% Working Interest
• Selva development
interest production 3 prospective resources • High-Impact Colibri
schedule for first gas
mmboe net working held within Zeta prospect with mean
2021
interest 2P reserves prospect; 6 mmbbls net prospective resources
• 0.4mmboe net 2P
• Significant development contingent resources in 406 mmbbls
Reserves
and exploration upside the 32nd Round Maria • GaffneyCline report
• 3.5mmboe net Discovery
(6.5 mmboe net identifies mean
contingent and
prospective resources) prospective resources of
prospective resources 2.4 billion
P = Production; D = Development; A = Appraisal; E = Exploration 5
COMMITMENT TO OPERATING A SUSTAINABLE BUSINESS
ESG Committee established by the Board in September 2020 - supporting United’s growth
as a sustainable business
Environmental Social Governance
• Commit to the sustainable • Guided by the 10 principles set out in
• Run our business in a conscientious development of the communities the QCA code
manner, keeping emissions as low where we are present • Promoting a culture based on ethical
as possible values and behaviours
• Promote diversity and ensure all
• Operate to the highest employees are treated fairly • Embedded Risk Management
environmental and regulatory
• Deliver positive engagement • Board Committees for Audit,
standards
between the Company and all key Remuneration, ESG & AIM Rules
• Work with partners to reduce flaring stakeholders Compliance
across our Egyptian assets
• Contribute annually to Training & • Establishment of ESG Committee
Education Fund in Jamaica enables enhanced transparency,
monitoring and reporting of our
assets at Board level
6
2021
Production
UNITED IS A VALUE OPPORTUNITY
2,243 BOEPD • Trading at 50% discount to Tangible Nav, excluding Jamaica
• Increasing production by 180%
H1 ‘20 Cash
Operating Cost • Increasing reserves by 190% since acquisition
4.36 $/boe • Basket of significant near-term value triggers
2P Reserves • Active drilling programme for 2021 & beyond
3.4 MMboe • Highly leveraged to present and future higher oil price
• Upside value from pipeline of developing assets
• Fully funded from existing operational cashflow
7
10 VALUE TRIGGERS IN 12 MONTHS
Perio
Trigger Detail Value Add
d
Jamaica CPR Technical Update on Walton & Morant Additional Exploration Potential
2020 Q4 ✔ Basins
ASH Gas Pipeline ✔ Monetise 2C Gas Resources Increase Production
Egypt ASH3 Drilling ✔ Development well adjacent to ASH2 Increase Production
Q1
Spudde
Egypt ASD-1X Well d Near Field Exploration Realise Exploration Potential
Egypt Reserves Abu Sennan Reserves Update Increased Reserves Base
2021 Q2 Egypt AJ8 Drilling Development Well in Al Jahraa Field Increase Production
Italy Development Permit* Final EIA Decree / Development Consent Move to Development Works
Q3 Zeta CPR UK CNS 90 million barrels STOIIP Demonstrate Exploration Potential
Italy First Gas* First Gas From Italy Increase Production
Q4
Jamaica Update Update on Farmout Campaign/Drilling Exploration Progress
Plans
* Based on Operator Schedule 8
UNITED OIL & GAS VALUE PROPOSITION
Clear Strategy
Committed to a sustainable ESG
which provides excellent
policy
foundation for value & growth
Highly capable Leadership Team Fully funded with near term news
and Board flow across entire asset portfolio
9
APPENDIX www.uogplc.com AIM UOG
Egypt, Abu Sennan Concession
2020/2021 SUMMARY — Strong production growth in low-cost environment
CASH OPERATING PRODUCTION
PRODUCTION
COST GROWTH
2,243 boepd 180%
$4.36/boe Q4 2020 Net WI 22% 1-Jan-2019-- 2H 2020
RISKED RESERVES
DRILLING SUCCESS
TANGIBLE NAV GROWTH
$ 78 million 190% 3/3
Reserves Replacement Ratio ASH-2, ES-5, ASH-3
2P Reserves based on 22% share of gross reserves from GaffneyCline Reserves Report, December 2019;
Prospects, Resources and Success Rate based on UOG analysis; Reserves replacement 1Jan2019-1Jan2020;
Cenkos Risked NAV Egypt 2P+2C+Exploration. Egypt Risked NAV from Cenkos Report 24 Feb 2021.
11Egypt, Unlocking the Upside, Abu Sennan Prospects
FORWARD PROGRAMME -
Significant Activity Planned to
Unlock Full Potential
Delivered Q4 2020
ASH2 Gas Pipeline
Delivered Q1 2021
ASH3 Development
Drilling
March 2021
Exploration Drilling
Q2-3 2021
Further Development
Drilling
>29mmboe >35
Unrisked prospective UOG mapped
resources prospects
Prospects, Resources and Success Rate based on UOG analysis 12Jamaica, Walton-Morant Licence
High-risk / high-reward
frontier basin offshore
Jamaica offering huge
re-rating potential
Jaws
FORWARD PLAN Euphonia
Thunderball
Tody
• Updated GaffneyCline report Felix
identifies total mean prospective
resources of 2.4 billion barrels Moonraker
for 11 prospects & leads, including
the high-graded 406+ MMstb
Oriole
Colibri prospect
• Work programme underway
Goldfinger
to de-risk the identified
prospectivity Streamertail
Colibri Moneypenny
Vesper Zumbador
South
13Italy: Podere Gallina Licence
United hold a 20% non-operated interest in the Podere Gallina licence, operated by ASX-Listed Po Valley
Energy Limited. Continuing progress towards first gas - 2021 target
Location Map
41m net gas pay encountered in the Podere Maiar-1 Well
2018
Well flowed at ~875boepd on test Podere Gallina Exploration
Licence
Application for a production concession granted preliminary
approval Podere Maiar-1 Well
2019
Mid-case gross 2P Reserves estimated at 2.2mmboe (0.44mmboe
net) by CGG. Selva Malvezzi Production
LIcence
2020 Technical environmental approval received from the Italian
Environmental Ministry
Final EIA decree
2021 Intesa / production concession / construction approvals
First gas
3D Seismic and further drilling to bring the on-licence contingent
2022 and prospective resources onstream:
Potentially 8x the Selva volumes
14Fact Sheet
Prospective
Abu Sennan - Fiscal Terms 2P Reserves 2C Resources
Resources
Production Sharing Contract
Effective overall net contractor share at Abu Sennan is
42.53% of gross revenue comprised of a Cost Oil (> $120
million remaining cost recovery pool) and a Profit Oil share:
Cost Oil
30% of gross revenue goes to Cost Recovery
Profit Oil
Contractor receives 17.9% of the remaining gross revenue 2U / Mean MMBOE
after Cost Recovery 2P MMBOE (UOG WI) 2C MMBOE (UOG WI)
(UOG WI)
Glossary
MMBOE Million Barrels of Oil Equivalent
MMBO Million Barrels of Oil
BCF Billion cubic feet
WI% United Working Interest
2P Proved + Probable Reserves
2C Best estimate scenario of Contingent Resources
2U / Mean Best estimate scenario of Prospective Resource
15www.uogplc.com www.uogplc.com AIM UOG
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