LGO Energy plc T&T Energy Chamber Conference Port of Spain January 2017 Neil Ritson
London (AIM): LGO www.lgo-energy.com 1
Company Profile London Stock Exchange Producing Oilfields
- Listed on AIM since 2007 - Onshore Trinidad and Spain London HQ – 8 employees Spain – 17 employees
Trinidad – 12 employees
November 2014
November 2015
December 2016
12-month production average
- 527 bopd
- 1,132 bopd
- 548 bopd
Active wells
- 80
- 86
- 88
2P Reserves
- 7.1 mmbbls
- 11.4 mmbbls
- 11.8 mmbbls
Oil in Place
- 231 mmbbls
- 909 mmbbls
- 1080 mmbbls
Market Capital
- £100 million
- £ 16 million
- £ 10.5 million
Bank Debt
- nil
- US$ 12 million
- US$ 2 million 2
Board of Directors and Leadership Chairman and Chief Executive Officer
Neil Ritson
Chief Operating Officer
Fergus Jenkins
Chief Financial Officer
James Thadchanamoorthy
Snr Independent Non-Executive Director
Michael Douglas
Independent Non-Executive Director
Gordon Stein
Trinidad Country Manager
Alex Almandoz
Trained as a geologist and has worked in the energy sector for nearly 40 years, initially with BP for 23 years before managing the international operations of Burlington Resources Inc. He founding the Vanguard Energy Group where he was Chairman and CEO, before joining LGO in 2010.
A Chartered Engineer with a BEng in Mining Engineering and a MEng in Petroleum Engineering. He has over 20 years of experience working in industry, initially in mining before moving to petroleum, where he has worked for Enterprise Oil, LASMO, OMV (UK) Ltd and Afren plc.
Has a degree in Chemistry and is a qualified accountant. He has 20 years’ experience, including over 10 years spent at BP where he held a number of commercial and finance leadership positions.
Mr. Douglas has worked in the business consultancy sector for 40 years. He was a Managing Partner for PA Consulting and in 1993 Mr. Douglas founded the Quo Group, a consultancy specializing in behavioral change, performance and talent management, and executive coaching.
A member of the Chartered Institute of Public Finance & Accountancy. He was recently CFO Madagascar Oil Limited and previously CFO at Cadogan Petroleum plc, Vanguard Energy Limited and Regal Petroleum plc. He also held senior management positions in Fairfield Energy Limited, Acorn Oil and Gas Limited, LASMO PLC, Monument Oil & Gas plc, Centrica plc and BG plc.
Highly experienced drilling and work-over operator. Managing Director of Altech Services since 1994, operating 5 work-over rigs with capability to 8,000 feet. Previously Operations Manager for Terra Mar. Worked with Halliburton on coiled tubing operations from 1987 to 1991.
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HSE and Community • LGO, as CPS, has operated the Ayoluengo Field in a Spanish National Park without problem for over 9 years • LGO, as Goudron E&P Limited, has operated successfully at Goudron on the edge of the Trinity Hills Wildlife Reserve for over 4 years
Installing new well tanks
REPLACE PHOTO
• GEPL is Energy Chamber “Safe to Work” (STOW) certificated • All LGO staff are local employees where they work; UK, Spain, or Trinidad, and where possible we buy all our services locally • LGO strives to achieve international best practise in all its operations
Goudron Field
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Trinidad Footprint
REPLACE MAP Icacos SWP Goudron Bonasse 5
Assets Trinidad Head Office: Retrench Village, San Fernando Goudron IPSC (100%) Reservoirs in Mayaro Sandstone and deeper C-sands (Gros Morne and Lower Cruse equivalents). High quality 30-45 API oil shipped to the Pointe au Pierre refinery by pipeline. Oil in place estimated at between 0.5 to 1 billion barrels. Producing currently around 450 bopd from approximately 75 wells, 14 drilled in 2014/15. Icacos Field (50%) In the extreme west of the South West Peninsula (SWP) producing ~30 bopd from three active wells SW Peninsula and Bonasse Field Nearly 11,000 acres of largely unexplored private oil leases in the SWP including rights held in partnership with Beach Oilfield Limited (BOLT). SWP is covered by new data including soil geochemistry and airborne potential fields. Significant undrilled prospects and leads for both oil and gas have been mapped 6
GOUDRON 7
Goudron Development Plan • Phase 1 (2012-13, completed) • Reactivate existing wells • Repair or replace infrastructure • Phase 2 (2014-15, completed) • Drill wells to the C-sand reservoir • Establish basis for an EOR scheme • Expand infrastructure as necessary
• Phase 3 (2017, underway) • Infill drilling of the Mayaro reservoir • Initiate a pilot EOR scheme • Phase 4 (2018 onwards) • Full-field EOR project • Continue with infill drilling as necessary Well Services Rig#20 drilling GY-670 8
Production History Phase 1
Phase 2
2,500
Oil Production (bbls)
2,000
Legacy well reactivation and infrastructure
2014 8 wells
2015 7 wells
Recompletions and maintenance
1,500
1,000
500
0
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Reserves Updated reserves and resources report by Deloitte in Calgary facilitated by local consultancy PetroCom Technologies Ltd in Trinidad Gross (mmbbls)
1P
2P
3P
Reserves
1.6
11.8
25.6
Gross (mmbbls)
1C
2C
3C
3.2
22.2
63.4
Low
Medium
High
210
555
975
Contingent Resources Gross (mmbbls)
Original Oil in Place
Source: Deloitte, June 2016
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Mayaro Sandstone Infill Wells Phase 3 • Numerous locations close to existing infrastructure • and outside the production radius of current wells • Initial selection for 10 from a possible 70 • Straight hole with a slim-hole design • TD between 1,100 and 1,750 feet MD • Simple wireline logging and wireline completion, pumped from day one • Using a conventional rig package* • Drilling and completion time < 10 days • Cost estimate < US$500,000 per well • Average initial (P50) oil rate 45 bopd * Original intention to use a heavy workover rig with down-hole mud motor replaced by conventional rig package on retendering 11
C-sand Water Flood Phase 3 and 4 • • • •
Analogue studies using 2014/15 well data indicate water flooding is appropriate Local analogues at Trinity-Inniss, Navette and Beach-Marcelle Fields Wealth of local experience in Trinidad Over 60 mmbbls of independently certified 3C resources (Source: Deloitte 2016)
• Scope of work for a low cost pilot project to be agreed 1Q17 • Existing produced water • Two C-sand injectors • Four to six C-sand producers • Consideration to be given to alternating water with gas or CO2 • Application for a CEC in 1Q and project start-up as soon as practical 12
SW Peninsula 13
What is special about the SWP? • Largely unexplored in the Miocene at depths > 2000 ft
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• Accessible terrain • Re-migrated light oil at shallow depth • Only one deep well (FRM-1) which found oil
• Parallel trend to the offshore Soldado field complex • Oil known in proven reservoirs seen in contemporaneous mud volcanoes • Estimated to be 1 to 4 billion bbls oil in place
Block of oil impregnated Herrera Sandstone from the mud volcano on the beach at Galpha Point
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Combining data; creating understanding 1120000
1119000
Soil geochemistry
143 62 89 99 462
500
1118000
26
195 446
137 407
660
1117000
147
299 357
38 221
159
900
291 371
326
1000
69
335 392 377 273 413 332 336 126 387 636 531 111 245330 651 405 246 270138 278 653576 641 278 297 296 560 305 626 468 435 527 554 272 132 839 389 44 189 339 81 102 99 941 534 569 281 734 566 219 795 368 459 752 339 386 59 182 90 147 555 218 99 627 227 191 368 218 531 129 360 204 362 897 281296 422 129 243 812 432 251 252 287290 455 185 183 140 303 261 243 200 468 140 158 417 20 287 218284 1070 242 534 245 146 194 93 203 347 69 84 425 237 153 155108336 158 506 252 491 533 155 188 131 266404 305 356 287 305 111 1677 353 144 326 240 203 126 207 324 438 47 281 89 332 42 308 312 206 239 488 245623 410 132 303 138 431 167 539 66 333 558 401 137 236 119 102 251 336 126 86 363 287 156 153 218 461 95 261 168 267 275 522 365 533 44 110 1350 428 299 65 29 93 59 599 332 293 477195 68 921 396642 333 242 353 303 29 47078 288 456554 291 299 158 684332 330 83 209 693716 258 1614831041 440614621 653 1478 533 14 1070 365 554 381 83 237 6 348 41 140 216 224426474 162 281 410 324 234 405 258 171 384 119 303 218 155 395 179 618 221 165329113 378 282 369 164 95 339285 107 209 462 551 203 210 146 156 174 186201 102 236 171 182 227 224 191 948 218 83 188 1011 111 227201 10883 276 47 161149 167 110174231 236 204 15287 171 168 171 284 93 65
900
50
0
1116000
800
50 0
1115000
1114000
1113000
158 89
147 102
77
164 95
1112000
110
60 345 89 579 573615 92 50
153 104
72 221
35
600 500
317
400 300
413
200
23
131
132
53
116 129
700
165
185
140
29
257
215
48
459
1111000
135
100
42 92
29 32
168 237
188
242
0 Microbial CFU/mg
1110000
616000
Private leasing
47
524
561
617000
618000
619000
620000
Bonasse Field Cedros - Icacos Area Trinidad and Tobago Microbial Populations
621000
622000
623000
624000
for Beach Oilfield Limited by Schumacher & Associates and GeoFrontiers Corporation October 2014
625000
0
626000
627000
628000
629000
1000 2000 3000 4000 Meters Map Scale: 1:75,000 Coordinates: UTM Zone 20, WGS84
630000
Wells
Landsat 8 Image colloected 7 September 2014
Seismic data
FTG data
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Integrated interpretation
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EXPAND THE STORY
Rigs & Production facilities exploiting deep potential offshore seen from Cedros coastline
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SUMMARY 17
Summary • LGO is an experienced onshore operator Installing new well tanks
• Steep fall in oil prices and a well failure caused LGO significant financial stress • Operations at Goudron slowed in 2016, but wellhead production was maintained at an average of 425 bopd
REPLACE PHOTO
• All GEPL’s creditors were paid and its senior loan was refinanced clearing the way for renewed drilling in 2017
• Significant opportunities remain to increase production at Goudron • Major longer term options are available in a Goudron water flooding and in SWP exploitation and exploration 18
Thank You Delivering Growth Through the Acquisition of Proven Reserves and Enhancement of Producing Assets
London (AIM): LGO www.lgo-energy.com 19