Europa Oil & Gas (Holdings) plc Investor Presentation June 2011 - - PowerPoint PPT Presentation

Europa Oil & Gas (Holdings) plc

Investor Presentation June 2011

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Asset Base

Presentation Structure – Strategy – Appraisal

• France, Romania

– Exploration

• UK, Romania, New Ventures

– Production

• UK

– Reserves and Resources

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Strategy

• European Focus
• Concentrate Corporate Growth into:

– Developing existing ‘company-making’ assets with up to 300mmboe upside contingent resources – Berenx and Voitinel – Exploring in two key oil plays in next 12 months – Carpathians and East Midlands – Exploration new ventures

• New Venture Strategy

– High impact plays in the European region: Atlantic Margin and Mediterranean

• Existing Asset Strategy

– Concentrate on higher impact parts of the portfolio – Work the UK as a sustainable business

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Maturing existing Resources - Appraisal

Company-making Reserves Potential

– France

• Berenx project in SW France could potentially hold up to

2TCF gas in-place (1.7TCF recoverable)

• Reprocessed 3D volume shows the value of properly acquired and

processed data

• 3D seismic acquisition to pave way for appraisal well
• Additional field re-development potential at Osmets

– Romania

• Voitinel gas discovery in Romania to be appraised in Q4 2011
• Upside to 415bcf in-place on-block

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Maturing the Resource Numbers

Berenx - Big gas project with company-making potential

New 3D survey extending Lacq Ouest coverage Approximately 60km2, €2.4mm cost Acquisition Q4 2011 Drilling HPHT well in 2012/13 Looking to farm-down for the well Development options: In discussions with SOBEGI (planned successor to Total at Lacq) Main play is deep HPHT gas play west of 9TCF Lacq Tested in early 1970’s with the Berenx-1 and 2 wells – numerous gas shows, flowed dry gas on test Test did not access fracture permeabilities – a key to Lacq’s success New well required to adequately test natural fracture flow potential Gas in place up to 2TCF (1.7TCF rec.)

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Data improvement at Berenx

Modern seismic techniques image the reservoir architecture

Before After

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Thrusted anticline clearly imaged on new processing Structure almost invisible on earlier processing

Maturing the Resource Numbers

Berenx project timelines with key events

2011 2012 2013 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Licence Renewal 3D Seismic planning 3D Seismic Acquisition 3D Interpetation Initial Well Planning Long Lead Items Site Construction Farmout Drilling Berenx-3 Testing and Interpretation 7

Key Milestones/RNS events

Voitinel trend - Initial low risk appraisal to prove minimum gas-in-place for development

Maturing the Resource Numbers

2 km

Mapped horizon: Top Badenian Anhydrite

Upside contingent resources in trend on-block of 415bcf in- place (290bcf recoverable) Voitinel-1 flowed 3mmscfpd Voitinel-2 planned for Q4 2011 Will prove up core gas-in-place

• f c.35bcf

This will allow first phase development to take place with pilot production (2-3 wells, tied back 15km) and first gas estimated in late 2012* Voit-1 Voit-2 proposed

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Net Interest 28.75%

* Subject to conclusions of JV commercial sub-committee

Exploration Assets Summary

– UK

– Wressle Prospect to receive 3D seismic coverage ahead of finalising a drilling location – Proposed agreement to participate in Broughton Prospect, situated between Wressle and Crosby Warren – Holmwood Prospect – expected to appeal planning decision

– Romania

– Voitinel trend exploration well on Solca Prospect in early 2012 – Oil play exploration planned over the next 18 months

– New Ventures

– 2 applications in Atlantic Frontier Play have been submitted – UK 14th Onshore Licensing Round opportunity

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Quantifying Portfolio Upside

• Exploration

UK

• Total identified reserve potential of up to 17 mmbo net
• Anticipated discovery sizes will benefit fully from Supplementary

Charge relief

• Tax efficiencies due to existing UK production revenues

Romania

• 2011 Drilling up to 30mmbo net prospective resources at Barchiz
• Romanian Oil Play upside could be significant – 150-300mmbo in

leads identified so far in Cuejdiu Licence

• Work progressing to push next phase of exploration in 2012

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Quantifying Portfolio Upside

UK 2012 Exploration Drilling in Core Area

Wressle Prospect Area 3D seismic acquisition late 2011 Potential Drilling in 2012 50% WI

HUMBER BASIN

Crosby Warren Field 0.4mmbo

• rem. 2P

Wressle Prospect 7mmbo gross hi PR

Plan to acquire joint 3D seismic survey with Egdon Group later in 2011

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Egdon Europa Europa

Quantifying Portfolio Upside

Additional Core Area Venture

HUMBER BASIN

Crosby Warren Field 0.4mmbo

• rem. 2P

Wressle Prospect 7mmbo gross hi PR

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Broughton Prospect 8.9mmbo gross hi PR

Egdon Europa Europa Agreement in principle reached to cross- assign interests with Egdon Group Resulting in 33% WI for Europa in both Wressle Prospect and Broughton Discovery Reduces play risk for both groups

Barchiz-1 Exploration Well Deepening

Quantifying Portfolio Upside

Well failed to reach lower structure Requires deepening to test repeat section of Oligocene oil zone

Main prospect – up to 30mmbo – remains untested Oligocene oil zone BARCHIZ-1

Barchiz-1 drilled in late 2010 encountered shallow oil-bearing Oligocene sands similar to that in the Geamana Field to the south Recovered modest amounts of oil on test Poor cement bond prevented drilling beyond 1450m Structure untested at depth could be similar to the repeat section of reservoir seen in nearby well PN-223 Consequently, the prospect remains effectively untested – plan to drill late 2011*

Original well cost €2.9mm Estimated deepening cost €1.26mm

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* Subject to NAMR approvals

Quantifying Portfolio Upside

Romania 2011-12 Exploration Activity

OIL PLAY Brodina (28.75% WI) and Cuejdiu (17.5% WI) Seismic acquisition programmes 2011 Potential drilling on Cuejdiu leads 2012

*subject to NAMR approvals

CARPATHIAN OIL BASIN

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VOITINEL-SOLCA GAS PLAY Solca well to the south of Voitinel drilling Q1/2012 to explore the undrilled fairway between Voitinel and Paltinu Discoveries Contingent on result of Voitinel-2 well

50 100 150 200 250 300 12/2010 01/2011 02/2011 03/2011 04/2011 05/2011 06/2011

• Production

– East Midlands remains core cash-generating asset

• May11 revenue $760,000
• Drilling at West Firsby Field has lifted total UK production to 250bopd
• Crosby Warren, with its relatively high oil cut, is a clear candidate for

re-fraccing to boost production

Building the Revenue Stream

Further near-term upside: Planned frac at Crosby Warren Field expected to add further 50-150bopd from August

Group Production last 6 months

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Reserves and Resources Estimates

1P/1C/Lo 2P/2C/Med 3P/3C/Hi Total Reserves 1.2 2.0 2.5 Total Contingent Resources 60 173 314 Total Unrisked Prospective Resources 14 32 52 Total Risked Prospective Resources 4 10 17

Million Barrels of oil equivalent

Of which 28mmboe are drillable in next 12 months And 170mmboe in the following 12 months

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Newsflow

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Firm Contingent 2011 2012 2013

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Appraisal Berenx 3D acquisition and interpretation Berenx -3 well Voitinel-2 well Voitinel-3 well Voitinel Pilot Development Exploration Wressle Area 3D Acquisition Wressle-1 well Barchiz-1 well deepening Cuejdiu 2D Seismic Acquisition Brodina 2D Seismic Acquisition Cuejdiu well Production CW-1 frac stimulation West Firsby water shutoff treatment

Summary

• Concentrate Corporate Growth into three areas:

– Developing existing ‘company-making’ assets with up to 300mmboe upside potential – Berenx, Voitinel – Exploring in two key oil plays in next 12 months – Carpathians and East Midlands – High impact exploration new ventures

• Where we expect to be in 24 months time:

– Having drilled up to 3 exploration wells with 48 mmboe of high case prospective resources – Drilled up to 2 Voitinel appraisal wells and have a pilot development in progress – Drilled or drilling ultra-high impact Berenx-3 appraisal well – Have a strong exploration conveyor belt of prospects going forward

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Thank You Europa Oil & Gas (Holdings) plc

Investor Presentation June 2011

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