First Energy 2011 Global Energy Conference Sept 19th - Sept 20th

Wednesday, Aug 31 2011 by
16

Thought Id just flag up the annual Global Energy Conference hosted by First Energy and Societe Generale.

As ever, an excellent line up of companies over the two days. From the agenda, the ones attending are:

Day 1.

Coastal Energy
Rocksource
Bahamas Petroleum Company
Sterling Resources
Nautical
Bankers
Porto Energy
Tethys Petroleum
Condor Petroleum
Greenfields Petroleum
San Leon Energy
Cove
DEO
Faroe

Day 2.

Ecopetrol
Gran Tierra Energy
Petrominerales
C&C Energia
Gold Oil
Parex Resources
Enquest
ShaMaran Petroleum
Sonoro
Transglobe Energy Corp
Rialto Energy
Wentworth Resources
Providence Resources
Canadian Overseas Petroleum

Phew - 25 mins per session - thats a lot to get through but yet again an excellent opportunitiy to blitz the globe and buttonhole a lot of execs.

I would imagine that many/most of the companies will put their presentations on their websites and possibly the video/audio of their session as happened last time.


Filed Under: Energy, Oil & Gas Producers,

Disclaimer:  

The opinions expressed by the author are those made by him personally as an individual and not in any professional capacity. 


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San Leon Energy plc is engaged in the exploration and production of oil and gas. The Company holds a 100% participating interest in the Durresi Block, offshore Albania. The license area, which covers 4,200 square kilometers, contains the A4-1X gas/condensate discovery and several undrilled oil and gas prospects. The Company has eight offshore Ireland assets, comprising four operated licenses on the Atlantic Margin and four Celtic Sea assets. The Company has interests in the Tarfaya and Zag licence areas and two offshore licences-Foum Draa and Sidi Moussa. The Company is also developing an in-situ oil shale (In-Situ Retort) technology in Tarfaya. The Company’s subsidiaries include Island Oil & Gas Limited, San Leon Energy B.V., San Leon (USA) Limited, San Leon (Morocco) Limited, San Leon (Netherlands) Limited, San Leon Italy Srl, San Leon Services Limited and Gold Point Energy Corp. more »

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59 Posts on this Thread show/hide all

StrollingMolby 19th Sep '11 20 of 59
1

Hi Darron - your PrestoWire is much appreciated! Enjoy the rest of the conference.

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djpreston 19th Sep '11 21 of 59
4

Seconds out....

V poor quality buffet I have to say considering its the Intercontinental. Nicely presented but meh... Where's the bacon butty?
Tethys get the graveyard slot post lunch.... Shame really as they look interesting, especially given the high impact Kalypso well has TD'd with good logs. 400 mmbbls unrisked. Testing might be end of year depending on approvals. Also the EOL9 well in Tajikistan is cleaning up and Persea 1 (also tajik should TD by Oct).

Anyway, here we go...

6000 - 6500 boepd at the moment with exit of 8000+ boepd expected.

Decent infrastructure in the region with bukhah Urals gas trunkline. 23MMcfd v low price though but v low cost. Should see big increase to $5 or $6 when Chinese pipeline on stream. Holding back gas for the moment.

Akkulka High. Doris was a rank wildcat several hundred km from next oil discovery. 6800 bopd 46 API low sulphur "nectar". Dione followed up as another disco. More wells going

Kalypso - 3 intervals. Est 2 months for govt approval to test.

Doris producing 1500 bopd expected to rise to 4000 in Q4 with new rail terminal. V remote location so commercialisation was a potential problem. Trucking aat the moment but the rail terminal will signif add bopd remving bottleneck.

Tajikistan - well over 100 prospects 1.13 bn bbls and sub salt giant plays. EO09 has discovered oil. 36API sweet produced. Good infrastructure.

Guess you have to mention politics. Tajik is close to afghansisatn.
Uzbekistan seem to have v good relations with govt and is only independent active there. Listed as "preferred partner" for oil developments. Working over the old wells and reworking with new drills.

V active, good local workforce and thus well respected in its host countries. Production and a lot of explo upside. If you can stand the -stan risk..... Does look v interesting.

Fund Management: European Wealth
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djpreston 19th Sep '11 22 of 59
3

Now Condor is one I really did want to get to grips with. Recently listed.

My god he's a fast talker...

Recent successes and first production started this Q. Its not too different to Max Petroleum - shallow wells under $1m, finding costs under $1.1/bbl and drillex of $3.50/bbl.

Lots of infrastructure in place and being built - pipelines, support services etc. Typical kazakhstan.

3 Shallow discos but much bigger prospects deeper (see max) but they're not going for the really deep wells (yet?). Prodn from the 3 should be c 1k bopd. So shallow plays first, build prodn and cashflow and move deeper once cashflows come in and improving understanding/detail. Sensible, lower risk approach I'd say.

Marsel Gas block has large structures, discoveries historically (exlcuded from licence) and v prospective. Chinese pipeline will pass 80km away finished next year. New seismic has tied in old Soviet data so derisking. Prob 5 years for any commercialisation though but shoudl, like tethys, get good prices then.

Not a bad outfit but I'd say tethys has the edge on condor. Gas is okay but its oil that matters and whilst its a solid plan of action, prefer tethys.

Fund Management: European Wealth
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loglorry 19th Sep '11 23 of 59

Hi Darron thanks for this... Did I catch you right when you said

"Kraken $90 oil worth $6/bbl npv 7 disc off Brent (?)"

Did you mean Kraken only worth $6/bbl on an NPV(7) basis at $90 oil? Seems pretty low but I can believe it. Did you really mean NPV(10) with a $7 discount to brent (because it is heavy)?

Read across to XEL (if they managed 200m recoverable which is a big IF) then field NPV worth $1.2bn = £750m vs current a market cap of 250m however funding issues and also 200m recoverable looks a stretch.

Thanks again great to have someone at the oil face.

Log

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djpreston 19th Sep '11 24 of 59
1

Greenfields is a bit Bankerish, which is what caught my eye as well as its location.

Working over the old SOCAR discoveries and improving recoveries, new completions in azerbijan. The fields were relatively starved of funds in favour of big plays (and let's face it, Azerbijan has that in spades - shah deniz)

Another new listing from last year. The ipo moneys have driven the phase 1.

Talking of Shah Deniz, its only a kick in the arse away from the end of Greenfields, assets - Gum Deniz oilfield and Bahar Gas field.

GD has historic 10% recoveries - v poor - hence the opportunity. 332MM bbls remaining from the original 540MM bbls. GrEenfields reckon recovs should be 25% by end phase 2 and 3.

Bahar was 5tcf, 306 Bcf remain. The licence has been extended South to butt against Shah deniz.

First of 82 well recompletions have just started. There's 468 wells on site at GD btw. 28 dev wells in phase 1.

Cased hole Logs on just 2 wells show v significant behind pipe pay - 1 well had 422 ft another 200ft.

6 wells Q4 (1 drill, 5 recomps). 2012 - 40 wells - 16/24 drill/recomps. 2 new workover and 2 drill rigs are due and will firm the program.

Long term the plan is to rollout the concept to latin America and Asia.

IIRC the management were behind the outfit that sold out to Salamander in Thailand (name escapes me).

Fund Management: European Wealth
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djpreston 19th Sep '11 25 of 59
6

San Leon. Well there's one we have a lot of, as well as Mr Soros and Blackrock (if only we were in that league)....

Fun starts now for SLE. They've got a huge asset base now, especially after the Realm deal (see the SLE thread for more details).

Talk mainly on Poland. First well is the conventional small oil plays. Logical as its lower risk and will drive cashflows with benefits for the finances. Of course its all about the giant Polish shale plays (what Soros likes - oh, and Talisman who farmed in on some the year before).

Focus of the talk is Poland but there's all Morocco, Albania and the Realm shale play applications elsewhere. Oh, and Ireland etc.

John Bbuggenhagen's talking. He's what attracted me to the company given his great record.

Talismans first jv well should spud thus week. Of course it would be staggering if anyone cracks the concept first time - US shales took time to work out but hopefully knowledge has improved massively so who knows.

Lots of companies, big and small active at the moment so lots of news to keep an eye on.

Okay SLE is basically unconventional (in the main) and so value that how you will but if you're a believer then SLE with its acreage is great.

Yes there's the conventional and don't forget Albania - offshore with a gas/condensate discovery...

Morocco is a whole 'nother story and is a longer term story.

Hmmm, do I sound a bit "fanboy"ish? Apologies if so but I do like the sheer scale and range of assets/opportunities and the deal making ability we've seen already.

Thank god its coffee time.....

Fund Management: European Wealth
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djpreston 19th Sep '11 26 of 59
6

And they're entering the final straight....

Missed the start of Cove (networking - apols).

Cove - already have enough for 2 5M ton trains. Ultimatley 5 or 6 train potential from offshre Moz. NPV est is roughly 84p/shr on the base case (11Tcf), 120p on base case (16tcf), 194p/shr on 30+tcf.

The real interest is the oil...Ironclad was an indicator proved oil source and presence but now to find good reservoir parameters... Its out there, they just need to find it (or others need to find it ).

Tanz - monetisation is the key (as aex holders would say, well this one anyway....) No s..t Sherlock.

Kenya - similar plays to Moz. Apache soon to drill L-8 so lots of interest in that well.

One thing you can say, there's going to be a lot of news from Cove over the coming years - continuous drilling in Moz offshore with the two rigs going plus the side ventures of onshore, Kenya, mnazi bay and the Cairn consortium. One things for sure, they won't be devloping Moz offshore. Like Soco its all about value add.

Looks rock solid value here I'd say.

Fund Management: European Wealth
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djpreston 19th Sep '11 27 of 59
2

Sorry that was a bit dull. We all know Cove's story...nothing new there.

Fund Management: European Wealth
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djpreston 19th Sep '11 28 of 59
4

So Africa Oil.

Now here's the elephant hunter. If you like your political risk then here you go. I mean, Puntland? Ethiopia etc.... Not my cup of tea.. Kenya's okay but then again, TLW has done a deal..what do I know?

The management team have good records - Tanganyika Oil, Valkyries, hell, its a Lundin outfit afterall and they have one great record....

Kenya - is it a Lake Albert lookalike? Lots of similarities, you can't deny that. And Ethiopia isn't exactly barren - tenneco found light oil in the 70's.

Its tempting, very tempting on the basis of the potential rewards (big targets)/management team's record and Tullow's involvement/operatorship but I just can't help but dislike the volatile politics and african ummm, ability to rewrite the rules.

Fund Management: European Wealth
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chriswalden 19th Sep '11 29 of 59

Hi DJP, thanks for the commentary.

Has DEO pulled its presentation? - they were down to follow Cove.

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salty64 19th Sep '11 30 of 59

In reply to djpreston, post #17

The presentation from Bankers is supposed to be here but doesn't work on my pc despite refreshing the screen as indicated:

http://jetslides.tv/webcasts/491

Thanks for the posts Darren, perhaps I may make a few bob out of BNK yet. Your Blackberry skills are impressive to say the least.

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djpreston 19th Sep '11 31 of 59
5

Flagging now.

Faroe.

Bit of a change from Africa...

You've got to admire how they've managed the group dealing assets and building production with 2011 prodn average to be c 9200 boepd after the v sensible asset swap (Maria interest). This avoided the capex, delays etc they get revenues with no decom costs. Sensible move imo.

Let's face it, FPM is rather Dana'esque. 45 licences generally modest interests. But they do have the frontier exposure Atlantic Margin/West of Shetlands and Barents alongside the more dull, bread and butter plays (hmmm even more Dana'like).

Norway's tax system allows for more explo wells but of course, as I may have mentioned in the thread on another company, the end taxation is heavy if you succeed.

Fulla was a nice discovery. Development with Freya probably. The Barents Sea licences look intriguing, with two discoveries either side of them (Norvarg and Skuguard). Remember the comments re Rocksource about a lot of political pressure to develop Barents Gas??

Losing will to live...good solid company, lots of activity. Sound finances (£80m odd cash in hand and debt facilities in place for $250m - $125m committed and $125m accordian), especially now given cashflow boost on asset swap. Fully funded 3 year programme 5 wells per year. Some big potential plays and yep, its Dana reborn (without TC).

Results out tomorrow??

Fund Management: European Wealth
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djpreston 19th Sep '11 32 of 59

Chris.

Just seen your comment. No DEO on the agenda. Don't know when or why they dropped out.

Fund Management: European Wealth
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djpreston 19th Sep '11 33 of 59
5

And that's it for today.

Tomorrow looks like this:

Ecopetrol
Gran Tierra
Petrominerales
C&C energia
Gold Oil
Parex
Enquest
ShaMaran (another Lundin co)
Sonoro
Transglobe Energy
Rialto
Wentworth
Providence Resources
Canadian Overseas Petroleum (fpm's partner in Fulla).

That's it for now. Time to head off to the hotel, quick shower then off to little brother's place (may leave the vino alone tonight).

Fund Management: European Wealth
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thegreatgeraldo 19th Sep '11 34 of 59
8

Cracking effort Darron, much appreciated..... off you go for a well earned drink!

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chriswalden 19th Sep '11 35 of 59
1

Thanks DJP - Perth FDP submission deadline is 30 September. There's been no RNS today, so there's really nothing to say since the re-jigging of the JV partners. One hopes there's no problem with the financing of the development (debt:equity, farmdown).

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djpreston 20th Sep '11 36 of 59
3

Morning all

Apologies but I'm running a bit late so may miss the first presentation. Bear with me though and normal service should resume....

Fund Management: European Wealth
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djpreston 20th Sep '11 37 of 59
6

Missed 15 minds of Ecopetrol.

Never mind, ECP is the giant at the conference - largest infrastructure owner and is 60% of Colombias production and a mkt cap of c$100bn. Yes, it has a yield too (4%). PE is expensive rel to other integrateds at c 11x 2012.

I don't know why people have a downer on Colombia, the politics have changed, security has improved immeasurably. It has a great fiscal system and rule of law is respected (unlike many other countries).

ECP has big ambitions, driven one suspects by the move to listed entity. It used to be the Colombian NOC and govt owns c 85%. Upstream capex over the next decade is $65bn representing 80% of total capex. Their goal is 1mm boepd by 2015 from c626k boepd this year and on to 1.3 mm boepd by 2020.

There's c 5M acres of production acreage and 43M acres explo acreage in Colombia. In addition there is GoM, Peru and Brazil.

With no debt, strong cashflow, you can't rule out acquisitions. Indeed the co has authority to issue more shares to that end (8.2% of outstanding equity so c$8.5bn worth at current prices.

Going back to those 2020 goals, they're looking for 4.9 bn boe 1P additions. They're ambitious.

So, another good solid integrated company. Yes its more pricey than Royal Dutch Shell B (LON:RDSB) or £BP but production is ramping up quickly (85% of production is oil and liquids) with $12bn cashflow for next year. Will be interesting to see their acqn policy...

Sorry for lack of detail.

Fund Management: European Wealth
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djpreston 20th Sep '11 38 of 59
6

Now GTE is an interesting one and been an incredible success story through explo successes and acquisitions. I've also banged on about it a lot so sorry for boring y'all.

The latest acqn was Petrolifera at the start of the year. PDP had been a massive success story before problems in Argentina dragged it down so GTE got it cheaply for their explo portfolio IMO.

GTE is producing c 18.3 k boped at the moment 14.7k in colombia, 3.3k boepd argentina (pdp acqn) and a 300 bopd in Brazil. So good cashflows - PCF is c 3.6x 2012.

The completion of the Moqueta pipeline is a big help. Ties the field to their Costayaco facilities. Moqueta is a good example of what they do well in developing a field - discovery - put into production and then step out. After 5 wells they've nit found the OWC so M6 and 7 are planned. Not a huge field but material and expanding. Its an example of what they do.

PdP also brought the Brilliante Gas discovery. That's being delineated next year and should see a 2013 production date. Whilst they have gas at Costayaco, that's now being sent to Moqueta for injection as pressure support. Neat solution methinks.

There is a growing demand for gas in Colombia with steady demand growth and existing big gas fields are now declining.

Arentina has been a mare in the past - have a dig around but it is changing now.

Like many, GTE sees Peru as potentially huge. Like others its also been held back by environmental permit delays and the relative lack of support services. GTE has a lot of acreage (6 of their own and 2 from PDP) and block 95 has an existing discovery of 13-18 API oil flowing at 807 bopd from an old Amoco well drilled in 74. Oh, and I forgot blocks 56 and 88 that are potential giants.

Brazil - the team is ex encana.

The Reconcavo block has produced over 1.5 bn bo of light 35-40 API. GTE has 70% in 4 blocks. This has the existing production.

The recent farm in is to offshore with modest interests to get a toehold. They're not operators but could be v big.

So GTE has a very healthy balance sheet, strong cashflow, proven management. A good track record in all areas - explo, development and M&A. Good portfolio of assets across the range of dev, app, explo and rank explo all fundable.

What's not to like?

Oh, and its not just TSX but AMEX listed too.

Fund Management: European Wealth
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djpreston 20th Sep '11 39 of 59
1

Hmmm, that's odd, I kept getting an error message whilst trying to paste the above so had to try and recover it. Now I've wasted 7 mins. Ho hum

Fund Management: European Wealth
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