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. 


Do you like this Post?
Yes
No
16 thumbs up
0 thumbs down
Share this post with friends



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 »

Share Price (AIM)
1.25p
Change
0.2  15.5%
P/E (fwd)
n/a
Yield (fwd)
n/a
Mkt Cap (£m)
27.8



  Is Cove Energy fundamentally strong or weak? Find out More »


59 Posts on this Thread show/hide all

djpreston 20th Sep '11 40 of 59
8

Ah, PetoMinerales.

Now here's an outfit that knows how to hit a big well. Look at the candellila wells to see that you can get v big onshore flows...

That's a great example of how fast PMG can move. Nov 09 spud cand-1. Dec 31st 10k bopd+ test and put on initial prodn. Feb 15 2010 C 2 on prodn. C3 on prodn mar 29. 75k bopd processing facility completed april 2010. Sept 2010 C4 on prodn. Prodn in 2010 7.3m bbls. That's how to do it.

Q2 bopd was 40k. PMG is another very strong cashflow co. Based on estimates c 3x CF/S.

That cashflow is driving explo. They've slated 36 explo wells for this year targeting 530mm bbls of net unrisked resources. With 2P at end 2010 being 44mm bbls that's big.
They like high impact so there's a lot being done to that end -

Then there's the heavy oil and the Toe Heel Air Injection tech licenced from the old parent, Petrobank. Could be a massive boost if proven to work.

One problem in Colombia is the squeeze on infrastructure so a lot of companies truck and there's shortages of capacity. New pipelines are being built/planned. Trucking fleets are also expanding significantly so many companies will be able to get more production on stream.

Like GTE, PMG has a yearning for Peru and Iirc they bought Pan Andean (?) To that end.

Pmg has 4 blocks over 5.4m net acres. That's one of the biggest. They've established an operational logistics base and work begins soon on Ucayali basin with rig mobilising.

Oh, and PMG pays a small divi (1.6%).


Coffeeee time.

Fund Management: European Wealth
| Link | Share | 1 reply
djpreston 20th Sep '11 41 of 59
7

C&C Energia.

Now how on earth is this down at these levels? The acqn was v positive in value add terms.

Okay, like GTE good prodn and reserves growth. One problem is the capacity issue. They've 275 trucks (60k bbbls) under contract but are planning a pipeline from Carrizales where they've built 35k bbls of storage to the araguaney pipeline.

The core cash cow is the Central Llanos basin to fund higher potential putumayo, magdalena and deeper Llanos basin.

As with all the Colombians, now the wet season is over its "go, go, go"time on drilling (well, nov/Dec anyway).

Unlike GTE, Parex, PMG and GOO, CZE is pure Colombia. Again, its c 3x CF/shr. (Is it just me or are these producers v cheap on cashflows??).

The activity coming up on Putumayo looks v interesting. Coati 30-70mm bbbls, Andauies 15-50mmbbls, putumayo8 15-20mmbls. Coati is 100% WI, andaquies 90%, P-8 is 50% so there's a lot of potential add coming up.

Another interesting one is Morpho. Its 38API but low perm. The M1 well was fracked and flowed c70 bopd and is still doing that 6 months later. That's not commercial but they need to solve the flow problem - there's a lot of OOIP and its right next to a pipeline. Its just a nice one in the background. Don't put any value on it (yet).

Due to the capacity probs production. Looks to be a little light - guidance was 8400 bopd ave - 8700. Now likely to ave 8200 bopd but currently producing 9400 bopd.

Fund Management: European Wealth
| Link | Share
djpreston 20th Sep '11 42 of 59
1

Gold oil.

Now this is different.

Unlike the others its tiny (£30m mkt cap) and its a flip side really. The Colombia side is v much a secondary aspect with some cashflow but main focus is the big Peru assets.

Peru

2 blocks, one on shore now farmed down to 30% from 100% in a deal with vale. The other is 100% offshore.

The offshore block (Z34) has had 800 km of 3D shot. Now its looking for a partner and will drill in 2012/13.

Onshore XXI - 2D seismic and a well next year.

Z34 is v big. It butts against the Talara fields that have produced 1.5bn bbls. Wide range of depths 100m to over 2000m.

The 3D interpretation should be finalised in Q4. Any partner should allow 2 wells in 2012/13. Farm in finish Q1 2012??

They've identified 10 plus leads already. 5 of them have P50 resource potential estimated at 1.4bn boe.

On shore (Block XXI).

Now this is v different to onshore. Much smaller targets, frontier area. Vale paid $2m cash and carry explo to $10m.

Colombia.

Nancy Burdine. 10mm recov but only 3mm produced to date no water. No seismic but want to have contract extended beyond 2015 and would like to do another well that could produce 1000 bopd. At the moment NB does 600 - 650 bopd which is 175 bopd net. So its lights on money but a second well would be v nice help. Not a real value proposition as you can see.

The Azar block is Putumayo basin operated by GTE with 40%. GOO has 20%. Lots of high quality targets on 3D. Well to be drilled Q4. Goo is carried for 50% of costs. That well is estimated at 2-3 mmbls for goo.

So, high risk. Potnetially v big offshore play but a fair wait involved. So one to watch for a while. Can't see a reason to buy now.

Fund Management: European Wealth
| Link | Share
djpreston 20th Sep '11 43 of 59
1

Ah, back to quality and Parex.

Prob a lot in common with my recent post on the thread for parex. Can't see much new emerging.

Fund Management: European Wealth
| Link | Share
djpreston 20th Sep '11 44 of 59
4

Nope, nothing new:

V active at the moment. Lots of wells in Colombia and trinidad to come in short term. 4 to spud and results on others drilling already.

Cashflow is coming out of their ears really. Netbacks were c$71 on Q2 sales prices of $104 (slight premium to WTI - good APIs). Est CF/shr at under 3x 2012.

I see First Energy has PXT's risked NAV at $14 and a target of C$13.50.

Trinidad is exciting upside potential but note that of the $14 NAV, FE have Colombia accounting for $12.24. Nevertheless, PXT is being sensitive and trinidad is only 25% of capex.

Given one farm in deal done already (v sucessful - see other thread). I'd expect them to do more farm ins and possibly acquisitions but more likely farm ins.

Oh, they're now looking at a third leg to the company. Hmmm, brazil round? There's a ton of cash on hand and with soaring prodn they've got plenty of firepower.

Fund Management: European Wealth
| Link | Share
djpreston 20th Sep '11 45 of 59
3

So that's Latin America and now to the exciting world of the North Sea and Enquest.

So its a Paladin/what was that other scavenger/dev co that Centrica (?) Bought??? (Name escapes me) type play I'd say.

Lots of Lower risk, small/med sized assets..big cashflows and firepower. Small enough that it can grow significantly through modest wells.
If excitement is you're bag, EnQuest (LON:ENQ) isn't for you.

Get the feeling they're looking at doing something relatively big and different given the cash position, no debt. $265m net cash and $338m cashflow in H1. That's a lot of cash.

Need a break and so I'm cutting out of ENQ. Can't see that I'll hear anything partic new.

Be back after lunch (hope its better than yday!!).

Fund Management: European Wealth
| Link | Share
djpreston 20th Sep '11 46 of 59
2

Hmmm, lunch wasn't much better....

Okay, next session is what I'd call the more exotics/war zone plays:

Shamaran - kurdistan
Sonoro - federal Iraq
Transglobe - egypt + yemen (yikes!)
Rialto - Ivory Coast.

Don't think I'm going to stay for the final session of odds and sods:

Wentworth - rump of artumas - tanz and Moz
Providence
Canadian Overseas Petroleum - uk and Liberia and Art Millholland's new vehicle (ex oilexco - shudder).

We'll see...

Fund Management: European Wealth
| Link | Share
djpreston 20th Sep '11 47 of 59
2

So first up Shamaran petroleum.

Another Lundin company.....

4 KRG blocks:

Pulkhana 60%WI
Arbat 60% WI
Taza (used to be K42) 20% WI and Atrush 26.8% WI

Pulkhana is dev/app
Arbat and Taza - explo
Atrush - explo/discovery

We all know there's a lot of oil there but till the O&G law is sorted, its going to be tough. There's the opportunity. Big boys largely excluded being in the south not KRG. More recently we've had more entrants - afren, PCI/Hess, Maersk, Repsol.

If/when O&G law sorted then price of entry will be very high. Most open blocks have now gone remember.

Pulkhana is set for production via and Early production system that could do 10 kbopd within 12 months.

There was a discovery (from 1956!!!) That flowed 2950 bopd from 2 intervals.

Test results on 1st app (6DSTs) should be out end of month/early oct. Plan for 3 wells (2 new and the legacy well on EPS doing 8-10k bopd gross.

Atrush is between Shaikan and Swara Tika. They've had a 700m gross oil column. 6000 bopd + test from 3 jurassic horizons only - flow constrained by equipment. Studies say should flow >15000 bopd.

Its a nice field 2C gross volumes per rps is 1.4bn discovered and 355m contingent. Possible that swara tika extends into the block.

Seismic underway, aggressive appraisal drilling in 2012. Possible EPS.

Arbat - 4 leads with over 1bn bblsIP. Plan for two wells late 2011/early 2012.

Taza risk of gas. Big 4 way dip closed prospect Billion bbls potential. Explo well in Q1 2012??

Some nice assets for C$400m mkt cap but not in GKP's league in terms of resources. Then again, you're dealing with a Lundin company and not TK..... Despite the TK factor I'd have to say GKP looks the lower risk option given proven shaikan, asset much more advanced.

Fund Management: European Wealth
| Link | Share
tournesol 20th Sep '11 48 of 59
1

Venture?

| Link | Share
djpreston 20th Sep '11 49 of 59
3

Sonoro

Well, you don't get many juniors operating in Iraq (non KRG) so that's interesting. Sonoro is just c C$40m mkt cap....

SNV has 70% WI in the Salah ad Din province. That's c 6m acres. USGS says the whole province could have 5.2 bn bbls risked P50s based on 20% recoveries. Company estimates 1.2bn P50 in place on the North salah ad din prospect.

Oh, by the way, its Heavy Oil (asphalt). Never mind, the CEO was the co founder, president and coo of Bankers till Aug 2008.

Near term there's a drill ready 141m recov prospect with 3 app wells planned in q4 with 6-10 more prospects for 2012/13.

Sonangol got a TSC for Qarriyah field 35km away to NE and they've got that working. That's an analogue field and was doing 500 bopd primary when suspended in 91. Interesting...

This is heavy oil (ed - you've said that) so lots of wells needed say 200 for the NSD field. So its Bankers in Iraq effectiely but with better flows.

So there a lot of wells so that means a partner. Even so, Sonoro expect to do 1000 bopd in Q1 2012 rising to 5k end of 2012/mid 2013.

RPS report for the license had a risked recov P50 of 5.2bn. P5 (who does P5??) Was 10.3bn.

There's lots of refinery capacity and infrastructure. Terms look good 50% net take 80% of revs for cost recov. As its heavy oil it falls under Mining Ministry not oil. Any conventional oil discovered then SNV would have preferential rights. Iraqi National Investment committee has also granted necessary approvals.

Cash isn't great at $7.2m but low initial investment commitment.

There are quite a lot of warrants oustanding. 217m issued shares and 35m warrants expire Mar 2012 at 18c and 30m expire Jan 2012 at 50c. With current price of c14c......

Well, there's a very interesting one. Very interesting indeed.

Fund Management: European Wealth
| Link | Share
djpreston 20th Sep '11 50 of 59
1

Venture - of course.

Thanks T

Fund Management: European Wealth
| Link | Share
djpreston 20th Sep '11 51 of 59
3

Shudder. Yemen and Egypt....

Transglobe have done very well, good growth in reserves and production. Strong balance sheet, all capex easily funded out of cashflow.

But its Yemen and Egypt. How's that for risk? Egypt better obv but as Circle recently said, there's some payment issues/concerns.

Thankfully Yemen is now a fading interest. It got them off the ground but now its virtually all Egypt and its onshore with no interest in offshore. So that's good for opex.

You've got to hand it to them, they've done v v well in Egypt. Intially on arta there were 4 old stripper wells. They fracked them. Prod went from 20 bopd to 200-250 bopd on a simple vertical frac. Then they hit the lower Nukhul and the reservoirs were much different 5 to 8 darcies 25% porosities.... V nice.
West Bakr has been another "rethink" and production has doubled but now there's trucking capacity issues. They need the acqn to close due to infrastructure it would provide but there's hold ups (wonder why a revolution would do that?)

They've done very well in picking up assets cheaply and improving things. South Alamein for instance. Think I heard them say they picked it up for 3m when the old owners had just shot 40m seismic. From that block already have Boraq 2 tested at 1700 bopd.

So, political risks - you bet. V competent team - yep. Very strong finances - yep. I liked them more than I thought I would.

On the matter of payments from the egyptians. 6 months delay used to be norm then came the revolution and no one got anything. TGL arranged a special lifting where they got the whole payment to allow catch up on missed payments. So they're now just 4 months delayed so better than before.

Expect more deals..

Fund Management: European Wealth
| Link | Share
djpreston 20th Sep '11 52 of 59
1

Sorry but had to take a call so completely missed Rialto, which is a shame.

So Wentworth.

Can anyone make something out of Mnazi Bay? Artumas couldn't for sure but the new team have experience in monetisation.

More news coming in few days on CPR and budgets/plans etc.

Mentions the manzi bay/dar pipeline fast track.

Essentially wentworth is tanz but there are the legacy interests in Moz with small interests in offshore and onshore rovuma with anadarko/cove et al.

We all know the problems Tanz faces for electricity. Hence the Chinese pipeline.

Constructed and financed by the Chinese. 24" from Mtwara to Somanga and 30" from Somanga to Dar. Yes, again "target completion Q4 2012".

Interesting chart in the presentation from Tanesco on power plant growth over coming years. Projects would be 300 mmscf/d to 2014 build outs.

Seems like the Tanz govt has really decided the way forward in the last few weeks. A lightbulb moment/break through?

Far as wentworth is concerned (I was mainly interested in the comments re pipelines/govt attitudes) the methanol/ammonia/Urea project looks a sensible use of the modest gas reserves but its quite a long lead - drilling and building the plant.....(4 years hence before production of methanol/ammonia/urea?) Then there's the Mtwara power plant (2014).

Onshore rovuma. 2 wells:

Mocimboa oil and nat gas shows
Mecupa - hydrocarbon shows well developed sands.

So that's not too dissimilar to aex/tlw over the border.

Far as Wentworth is concerned, its a nice idea but long way off and gas to power isn't the best idea. One I'll keep watching though.

Fund Management: European Wealth
| Link | Share
djpreston 20th Sep '11 53 of 59
1

Providence.

Lord, how many years have I been listening to PRV presentations and heard about Dunquin, Spanish Point etc and not seen any real delivery?

Maybe this time? They are set to do a lot of drilling finally.

9 wells scheduled prior to end of 2012. Largest ever offshore Ireland programme. You can't argue with the partners - Eni, exxon, etc.

Hadn't seen the figures before but 150 wellls drilled over 40 years 3 commercial developments. Okay, lot of those were old school without today's tech and of course ireland is now connected to UK and Euro Gas infrastructure.

Fiscal terms are good.

Without doubt the potential is there. The mix of wells app and explo is targetting some very very large numbers.

Barryroe is v near term (Oct) and success there would be a very good first step. Barryroe is a discovery with 3 successful wells flowing light sweet but waxy. Its a technical challenge/proof of concept well. San Leon Energy (LON:SLE) has 30% btw.

PVR has a lot of attractions. Perhaps their time has come (at last)?

Fund Management: European Wealth
| Link | Share
djpreston 20th Sep '11 54 of 59
18

Well that's it from me. Don't think my thumbs can take anymore. Art and Canadian Overseas will just have to be dropped.

If anyone's got any questions, I'll try and remember and try to answer.

Remember though, as I said at the outset, these comments are from what I heard or thought I heard/noted. The opinions/verbal garbage is down are mine and shouldn't be relied upon. Quite possible I midheard something.

So hope that was useful.

The train beckons so

TTFN

Darron

Fund Management: European Wealth
| Link | Share
jseth123 20th Sep '11 55 of 59
1

Someone buy that man a beer. Thanks for the commentary, Darron, I think it's far better than I could produce with the assistance of a dictaphone and full keyboard!

| Link | Share
safetyfirst 20th Sep '11 56 of 59
2

Thanks Darron. Excellent work.

| Link | Share
Fangorn 20th Sep '11 57 of 59
2

Buy him a beer...sounds like a thumb and finger massage is more in order!

Impressive effort DJP. Much appreciated. :)

| Link | Share
geoffrey nichols 21st Sep '11 58 of 59

Hold your nose and buy some Canadian Overseas Petroleum.With one discovery and lots of drilling big bang for your buck at 40 cents

| Link | Share
ohisay 28th Dec '11 59 of 59
2

In reply to djpreston, post #40

Bit quiet on Stockopedia isnt it - so following DJP's comments at the conference some more on Petrominerales from a recent article

http://seekingalpha.com/article/316352-petrominerales-has-3-exploration-plays-that-could-double-oil-reserves-in-2012

Worth a read  I reckon .

Early in 2012 we should get results from the three big prospects Petrominerales is currently working on. Success on any one of them will be a major catalyst to move the stock higher.


| Link | Share

What's your view on this thread? to Comment Now

 
 
You are feeling neutral

Use the £ sign in front of a ticker to turn £VOD into Vodafone PLC

You can track all @StockoChat comments via Twitter

 Are Cove Energy's fundamentals sound as an investment? Find out More »





Stock Picking Tutorial Centre


Related Content

Stock Picking Simplified

Stockopedia takes your stock picking to the next level with cutting edge Stock Reports & Screening tools.


Get started
or Take a Tour to find out more.