Attached files
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| 8-K - FORM 8-K - ENDEAVOUR INTERNATIONAL CORP | d371453d8k.htm |
 GHS 100
Energy Conference
June 25 -
26, 2012
Exhibit 99.1 |
 2
This is an oral presentation which is accompanied by slides. Investors are urged to review our SEC
filings. This presentation contains certain forward-looking statements regarding various
oil and gas discoveries, oil and gas exploration, development and production activities,
anticipated and potential production and flow rates; anticipated revenues; the economic
potential of properties and estimated exploration costs. Accuracy of the projections depends on
assumptions about events that change over time and is thus susceptible to periodic change
based on actual experience and new developments. Endeavour cautions readers that it assumes no
obligation to update or publicly release any revisions to the projections in this presentation and,
except to the extent required by applicable law, does not intend to update or otherwise revise the
projections. Important factors that might cause future results to differ from these
projections include: variations in the market prices of oil and natural gas; drilling results;
access to equipment and oilfield services; unanticipated fluctuations in flow rates of
producing wells related to mechanical, reservoir or facilities performance; oil and natural
gas reserves expectations; the ability to satisfy future cash obligations and environmental costs; and
general exploration and development risks and hazards.
The Securities and Exchange Commission permits oil and gas companies in their filings with the SEC to
disclose only proved reserves that a company has demonstrated by actual production or
conclusive formation tests to be economically and legally producible under existing economic
and operating conditions. SEC guidelines prohibit the use in filings of terms such as
“probable,” “possible,” P2 or P3 and “non-proved” reserves,
reserves “potential” or “upside” or other descriptions of volumes of reserves potentially recoverable
through additional drilling or recovery techniques. These estimates are by their nature more
speculative than estimates of proved reserves and accordingly are subject to greater risk of
being actually realized by the company. Certain statements should be regarded as
“forward-looking” statements within the meaning of the securities laws. These
statements speak only as of the date made. Such statements are subject to assumptions, risk
and uncertainty. Actual results or events may vary materially. The estimates of recoverable
resources per well and completed well costs included herein are based upon other typical results in
these shale plays and may not be indicative of actual results.
|
 3
Endeavour At A Glance
Near-term growth through lower risk development
activities
•
Growing cash flow from U.K. development projects
•
Exposure to Brent crude oil and European gas
•
Increasing liquids production near-term
Balanced Strategy
•
Oil and Gas
•
U.K. and U.S.
•
Conventional and unconventional
•
Short and long-term production opportunities
Near-Term Potential Catalysts
•
North
Sea
asset
acquisition
from
ConocoPhillips –
U.K.
•
Bacchus
oil
production
–
U.K.
•
Rochelle
field
development
in
execution
phase
–
U.K.
•
Heath
Oil
Shale
proof
of
concept –
U.S.
* Reserves are pro forma for the North Sea Acquisition
Stock Symbol
New York Stock Exchange
END
London Stock Exchange
ENDV
Market Capitalization
$293.3 million
Fully Diluted Shares Outstanding
64.8 million
Proved & Probable Reserves *
76.0 MMBOE
Key Figures |
 57%
30%
13%
86%
14%
71%
29%
10,000 –
11,000 boepd
14,000 –
18,000 boepd
Current Production
Pro forma Production -
Bacchus
and MacCulloch & Nicol Fields
UK Oil
US Gas
UK Gas
Pro forma Production -
Rochelle
20,000 –
25,000 boepd
4
(1)
(2)
(1)
As of March 31, 2012, pro forma for additional Alba interests acquired on May 31,
2012. (2)
Assumes 3 Bacchus wells online expected by YE 2012 and closing of acquisition of
MacCulloch and Nicol fields expected in 3Q 2012. (3)
Rochelle production expected in 4Q 2012.
(3)
Significant Production Growth – Acquisition and Near-Term Projects |
 2008
2009
2011
2010
Our Growing Resource Base
(1)
Proved and probable reserves after asset sales of 6.0mmboe in 2009.
(2)
Proved and probable reserves after asset sales of 13.7mmboe in 2010; pro forma for
acquisition of an additional 20% WI in Bacchus acquired in February 2011.
(3)
Pro forma for reserves of assets acquired and to be acquired in the North Sea
Acquisition. Not including the acquisition, proved reserves as of 12/31/11 total 22.7 MMBOE and
proved & probable reserves total 45.1 MMBOE.
(1)
(2)
Reserve Growth
(3)
(1)
5
6.8
18.2
18.7
42.3
59%
OIL
19.3
20.7
25.0
33.7
41%
GAS
26.1
38.9
43.7
76.0
100%
0
10
20
30
40
50
60
70
80
Proved
Probable |
 6
Reserve Valuation
Net Asset Valuation
(1) Pre-tax PV-10 as of December 31, 2011 pro forma for the acquisition of
assets in the North Sea per NSAI audited reserve reports for respective assets.
(2) As of March 31, 2012, pro forma adjustments include: issuance of
the Revolving Credit Facility, purchase of the Alba Property and completion of the equity offering.
(1)
(2)
(1)
(2)
$2,467
$1,288
$810
$622
$0
$500
$1,000
$1,500
$2,000
$2,500
2P PV-10
1P PV-10
Total Debt
Net Debt |
 Reserves Value Make-Up and Migration
7
$0
$500
$1,000
$1,500
$2,000
$2,500
1P PV-10
1P PV-10
Over Time = 2P
Rochelle
Bacchus
Alba
Other
Reserves Migrate from Probable to Proved from Known Fields, with Little Capital Investment |
 Overview of Endeavour’s U.K. Assets
8
*
On
12/27/11,
END
announced
the
acquisition
of
three
ConocoPhillips
assets
in
the
North
Sea,
including
an
increased
working
interest
in
Alba
and
two
new
assets
–
MacCulloch
and
Nicol. Alba acquisition closed on May 31, 2012. MacCulloch and Nicol expected to
close in 3Q 2012.
Current Production
Development Projects
Bacchus
Enoch
Columbus
Bittern
Alba
MacCulloch
Nicol
Renee
Rubie
Ivanhoe /
RobRoy
Rochelle |
 Expected 2012 Exit Position of Endeavour
9
GDF Suez
Premier
EnQuest
DONG Energy
Hess Corporation
OMV
RWE Dea
Dyas
Canadian Natural Resources
E.ON Ruhrgas
Marathon
ATP Oil & Gas
Perenco
Ithaca Energy
Wintershall
Nautical Petroleum
Fairfield Energy
Sterling Resources
Itochu
BHP Billiton
Murphy Oil
JX Nippon Oil & Energy
Corp
Xcite Energy
Tullow Oil
EnCore Oil
Marubeni
Noble Energy
Bayerngas
EOG Resources
Valiant Petroleum
Chrysaor
Agora Oil & Gas
First Oil
Bridge Energy
DEO Petroleum
KNOC
Endeavour UK
Endeavour UK +
Bacchus/Rochelle
and Acquisition
0
20
40
60
80
100
0
5
10
15
20
25
30
35
40
Production (kboe/d)
Source: Woodmac |
 Alba
Field
Overview
-
Block
16/26a
450ft water depth
Late Eocene reservoir at ~6,200ft depth
•
Massive homogeneous unconsolidated
sands with excellent quality
35 Platform and subsea wells
Infill drilling used to maximize reservoir
performance
Oil exported by tanker
10
END WI:
25.68%
Operator:
Chevron (23.37% WI)
Partners:
Statoil (17% WI)
BP (13% WI)
Total (12.65% WI)
CIECO/Itochu (8% WI)
Discovered/ 1
Production
1984/1994
Alba
MacCulloch
Nicol
Britannia
st |
 Alba
Field
-
Future
Development
Addition to current reserves
Low economic threshold
Short payback time
11
Sustain current production and increase reserves
through continued development drilling
Cumulative production to date
Infill drilling since 2009 has largely sustained
production
Continuation of infill drilling program
Infill Drilling Campaign
Forecast
History
~373 MMbbls gross
2012 campaign extended from 6 to 9 months
Continuation of drilling included in operator’s business
plan
Large basket of further drilling opportunities identified
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000 |
 MacCulloch
Field
Overview
-
Block
15/24b
490ft water depth
Paleocene reservoir at ~6,200ft depth
•
Large and extensive natural aquifer pressure
support
5 active wells
FPSO off-take solution
Currently operated by ConocoPhillips.
12
END WI:
40% WI*
Partners:
ENI(40% WI)
Noble Energy (14% WI)
Talisman (6% WI)
Discovered/1
st
Production
1990/1997
* On 12/27/11, END announced the acquisition of three ConocoPhillips assets
in the North Sea. MacCulloch is expected to close in 3Q 2012.
Alba
MacCulloch
Nicol
Britannia |
 MacCulloch
Field
-
Status
Cumulative production to date
•
114 MMbbl gross
Plan to assume operatorship from
ConocoPhillips on completion of
acquisition
•
Plans to perform a detailed asset performance
review:
•
Evaluation of infill / near field potential
•
Opportunity to return shut-in wells to production
•
Optimization of gas lift rates and distribution
•
Debottlenecking, improvement to compressor
performance and availability
•
Improve operational efficiency
•
Manage offshore duty holder (NSPC) to
implement operational improvements
•
Subject to partner approval
13
0
5,000
10,000
15,000
20,000
25,000
Forecast
History |
 Bacchus
-
Block
22/06a
Central
North
Sea
14
First well on-line
Second well at Total Depth and expected to be
on-line 3Q 2012
Reservoir is formed by shallow marine Fulmar
sandstones of Upper Jurassic age
Announced 5-day IP rate of 6,000 gross boepd,
high end of expectation
22/6a-14
22/6a-14Z
22/6a-15
END WI:
30%
Operator:
Apache (50% WI)
Partner:
First Oil (20% WI)
Bacchus |
 Project in execution phase
•
Pipelines and umbilicals under construction
•
Rig contract awarded to the Diamond Ocean Nomad
to commence drilling in early 3Q 2012
Off-take capacity at the Scott Platform is 100
mmcf/d in year one ramping up to 120 mmcf/d in
the second year
Commercial terms reached with the Scott
Platform owners in April 2011
•
Annual shut-down preparatory work for Rochelle
production completed
Reservoir Development
•
2 x 500m horizontal development wells
•
High potential wells at 100 mmcf/d per well
•
Gravel pack with pre-drilled liner
•
5 ½”
completion with permanent downhole
pressure/temperature gauges
Rochelle
-
Blocks
15/26b,
15/26c
and
15/27
15
Operator:
Endeavour (44% WI)
Partners:
Nexen (41% WI), Premier Oil (15% WI)
FDP Approved:
February 2011
Online:
Q4 2012
Rochelle
Renee
Rubie
Ivanhoe /
RobRoy
Goldeneye |
 Rochelle
Field
-
Development
Status
16
2012 Achievements
Pipeline section fabrication completed Commenced full
pipeline fabrication
Deliveries on target
Beds on the platform allocated Regulatory
consents in place
Drilling commencing in early 3Q Subsea
installation commencing early 3Q
Pipelay commencing 3Q
Rochelle first gas in 4Q
|
 17
Overview of Endeavour’s US Assets
Heath
Shale
Oil
Play
-
MT
Marcellus
Play
-
PA
Haynesville
Play
–
LA/
E.
TX
Cretaceous
Plays
-
CO
US
2011
Year-End
Totals
582,000 gross / 159,000 net acres
18.5 MMCFe/D net production (1Q 2012)
61 BCFe Proved / 89 BCFe 2P reserves |
 Heath
Shale
‘Tight
Oil’
Play
in
Central
Montana
25% joint venture with two independent
Montana producers
430,000+ gross acres primarily in Garfield
and Rosebud Counties (94,000 net to END)
Four well vertical pilot drilling program
completed
•
Evaluating extensive core/log data
•
Indentifying future horizontal re-entry targets
(likely Q3/Q4 2012 horizontal testing program)
‘Bakken-like’
play, but shallower
(4000-
5500 ft. depth)
A proven petroleum system ~ 137 MMBO
cumulative production (Heath Shale is the
primary source rock)
Rich, oil-prone source rock, up to 20%
total organic carbon content, light oil
Heath Play Attributes
Heath Play, END Activity
18
END
CMR
Cirque
Cabot
Fidelity Heath sourced oil fields |
 The
Haynesville and Marcellus Plays 19
Low cost entry with limited drilling
requirements
Endeavour’s Marcellus and Haynesville
acreage largely held by production
Future capex is at Endeavour’s discretion,
enabling the Company to wait for a gas
price recovery prior to development
Haynesville Shale Play
•
15,600 gross acres (7,100 net to END)
•
Strategic leasehold in HBP status
Marcellus play developing around
Endeavour’s core HBP acreage
Solid well results in adjacent areas on
trend with southern McKean and
Cameron counties |
 Capital Structure
20
($ mm)
March 31,
Pro forma
Adjustments
1
Pro forma
Adjusted
March 31,
2012
2012
Cash and Deposits
511.6
$
(323.7)
$
187.9
$
Senior Term Loan, 12% plus 3% PIK, due 2013
241.6
(241.6)
-
Revolving Credit Facility, 13%, due 2013
100.0
100.0
Senior Notes, 12%, due 2018, net
480.3
-
480.3
Convertible Bonds, 11.5%, due 2016 @ $16.52, net
62.2
-
62.2
Convertible Senior Notes, 5.5%, due 2016 @ $18.51
135.0
-
135.0
Subordinated Notes, 12%, due 2014
32.2
-
32.2
Total Net Debt
439.6
$
621.7
$
Series C Preferred Stock, convertible @ $8.75
37.0
-
37.0
Stockholders' Equity
120.0
44.9
164.9
Equity Component
157.0
$
201.9
$
1
Shares Outstanding -
assuming all converted
Pro forma
Adjusted
1
Common Stock
46.5
Series C Preferred Stock, convertible @ $8.75
4.2
Convertible Bonds, 11.5%, due 2016 @ $16.52
3.9
Convertible Senior Notes, 5.5%, due 2016 @ $18.51
7.3
Options, warrants and stock-based compensation
2.9
64.8
Pro forma adjustments include: issuance of the Revolving Credit Facility, purchase of the
Alba Property and completion of the equity offering |
 2012
Capital
Plan
by
Project
-
$175mm
to
$200mm
2012 is About Turning On and Maintaining North Sea Production
Note: Capital Plan is pro forma for the North Sea Acquisition
21
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
$110
Rochelle
Bacchus
UK Other
Marcellus
Haynesville
Heath |
 Corporate Focus for 2012
22
High Yield Transaction –
completed February 2012
North Sea Asset Acquisition
•
Closed acquisition of Alba interests on May 31, 2012
•
Closing on the acquisition of MacCulloch and Nicol field interests expected in
3Q Bacchus Development On-line
•
First well producing
•
Second well being drilled; production expected in 3Q 2012
Rochelle in Execution Phase:
•
Drilling commencing in early 3Q
•
Pipeline section fabrication completed
•
Subsea installation commencing early 3Q
•
First gas in 4Q 2012 |
 LSE:ENDV
NYSE:END
www.endeavourcorp.com
Mike Kirksey
Chief Financial Officer
713.307.8788 / +44.207.451.2381
mike.kirksey@endeavourcorp.com
Darcey Matthews
Director of Investor Relations
713.307.8711
darcey.matthews@endeavourcorp.com
INVESTOR CONTACTS: |