Shareholders Agreement 49% RIPIANO HOLDING LTD 99% License holder of Sosnovskoe oil field Yuzhno-Tyebukskoe oil field

Transcription

1 March 2015

2 Corporate structure British Virgin Islands KARAVADOS LTD Shareholders Agreement PETROGRAND AB 100% Sweden SONOYTA LTD Cyprus 51% 49% Cyprus RIPIANO HOLDING LTD 100% 1% DINYU LLC 99% CNPSEI LLC Russia License holder of Ivanshorskiy block (Dinyu-Savinoborskoe oil field) License holder of Sosnovskoe oil field Yuzhno-Tyebukskoe oil field 2 2

3 Licenses License block/field Holder Purpose Date of licensing Expiration date 1 Ivanshorskiy (Dinyu-Savinoborskoe oil field+prospects) Dinyu LLC Geological survey, exploration and production Sosnovskoe oil field CNPSEI LLC Exploration and production * 3 Yuzhno-Tyebukskoe oil field CNPSEI LLC Exploration and production * * - the licenses will be extended approximately for 20 years next year. 3

4 Overview map Russia Pipeline Lukoil Main Pipeline Transneft 4

5 Reserves 5

6 Dinyu-Savinoborskoe oil field The field was discovered in 2001, put into production in There are 5 oil pay zones producing high quality 35 API crude with good reservoir properties: porosity 14%, permeability 80 md. Pad 2 Average daily production (10/02/2015) 898 bpd (123 tpd) Dinyu production is transferred through a 7 km own pipeline to a Lukoil metering station, then delivered to Transneft to sale to domestic and export markets. As of well stock: 10 active producing wells, 1 in testing 5 inactive producing wells, 8 injection 2015 proposed drilling campaign: 3 new wells in main productive reservoir Initial oil rate of each new production well: 365 bpd (50 tpd) Expected daily production of 15 wells: bpd (173 tpd) average Expected annual oil production: th.barrels (63 th.tonnes) th.barrels (80 th.tonnes) Pad 3 Oil facility treatment Gas engine set Pad 1 Pad 7 New pad 8 6

7 Production of Dinyu-Savinoborskoe Cumulative production 9.5 million barrels (about 50% of initial) Monthly oil production (January 2015) 27.7 th.barrels (3.8 th. tonnes). Daily production (10/02/2015) 898 bpd (123 tpd) 7

8 Sosnovskoe oil field The field was discovered in 1982, put into production in There are 4 oil pay zones in the Devonian producing high quality oil (34 API) with excellent reservoir properties (porosity 20%, permeability 118 md). Oil production is transferred via truck for a distance of 55 km to the company s owned metering unit at Nizhne Odes where it is pumped through Lukoil pipeline to Transneft. As of well stock: 7 active producing wells (# 1,10,7,20,22,24,25) 1 inactive wells (#21), 2 injection (#11,23) 8

9 Production of Sosnovskoe Cumulative production 3.7 million barrels (about 20% of initial) Monthly oil production (January 2015) 12.2 th.barrels (1.7 th. tonnes). Daily production (10/02/2015) bpd (64 tpd). 9

10 Investing for production growth 2015 proposed drilling campaign: 3 wells on main reservoir I-A Initial oil rate of each new production well: 175 bpd (24 tpd) before fracing 255 bpd (35 tpd) after fracing (2016) Expected daily production of 11 wells: bpd (96 tpd) - average Expected annual oil production : th.barrels (35 th.tonnes) th.barrels (45 th.tonnes) Sosnovskoe oil field New pad 1 3 new production wells Annual oil production, th.bbl 10

11 Yuzhno-Tyebukskoe oil field The field was discovered in 1978, put into operation in There are 2 oil deposits in Devonian Formation (D3fm), with excellent reservoir properties (porosity 16%, permeability 130 md) Average daily production (10/02/2015): 234 bpd (32 tpd), 32 API Oil production is trucked for a distance of 25 km to own metering unit at Nizhne Odes where it is pumped through Lukoil pipeline to Transneft. As of well stock: 8 active producing wells (#5,6,7,8,9,10,11,891) 3 injection. Primary Processing unit 11

12 Production of Yuzhno-Tyebukskoe Cumulative production 2.9 million barrels (about 50% of initial) Monthly oil production (January 2015) 6.6 th.barrels (901 tonnes). Daily production (10/02/2015) bpd (32 tpd) 12

13 Current Production data Total annual production in th.barrels (84 th.tonnes): Dinyu-Savinoborskoe oil field 350 th.barrels (48 th.tonnes) Sosnovskoe oil field oil field 175 th.barrels (24 th.tonnes) Yuzhno-Tyebukskoe oil field 88 th.barrels (12 th.tonnes) Total daily oil production (10/02/2015) 1600 bpd (220 tpd): Dinyu-Savinoborskoe oil field 898 bpd (123 tpd) Sosnovskoe oil field oil field 467 bpd (64 tpd) Yuzhno-Tyebukskoe oil field 234 bpd (32 tpd) Total active producing wells - 26: Dinyu-Savinoborskoe oil field 11 wells Sosnovskoe oil field oil field 7 wells Yuzhno-Tyebukskoe oil field 8 wells 13

14 Infrastructure in place 14

15 Environmental policy The company operates in a harsh climate and therefore protecting the environment is a high priority. The goal is consistently to minimize environmental risks and to handle all obligations regarding the environment, in an exemplary manner. The Company has taken measures aimed at decreasing the amounts of flared gas (associated petroleum gas - APG). This has achieved lower emissions, a safer environment, smaller volumes of combusted products and more efficient use of resources and cost reduction The Company utilizes APG for power generation and for other production needs. 5 new Gas engine gensets were recently purchased. 3 of them have been installed on Dinyu- Savinoborskoe oil and Sosnovskoe oil fields. 2 others will be installed and started in April June After the launch of all Gas engine gensets, the associated gas utilization level will be 95%. 15

16 Exploratory Upside Ivanshorskiy license block has several prospects. They are located to the north and west of Dinyu-Savinoborskoe. Ivanshorskiy block One of them Pachaelskaya structure has been prepared for exploration drilling. C3 resources of the structure are estimated at 27.7 mln. barrels (3.8 mln. tonnes) Dinyu-Savinoborskoe oil field has undrilled structures with 3D seismic coverage, but to the north of the existing production. C3 resources of one of these structures is estimated at 4.0 mln. barrels (0.55 mln. tonnes) 16

17 Investment proposed drilling campaign: At least 6 wells into the main reservoirs of Dinyu-Savinoborskoe and Sosnovskoe A minimum of $10 million will be used for the drilling of new producing wells Expected daily production from all 3 oil field: bpd (300 tpd) bpd (387 tpd) Expected annual oil production: million barrels (110 th.tonnes) million barrels (150 th.tonnes) Annual oil production, th.bbl 1.1 mln.bbl Yuzhno-Tyebukskoe 0.6 mln.bbl Sosnovskoe Dinyu-Savinoborskoe 17

18 Current Net Back calculation USD/RUR 60 DOMESTIC SALES USD/bbl USD/ton Selling price (no VAT) MET Production costs per bbl/ton of oil* EBITDA(Net back) 8 60 * personnel expenses, electricity, transport expenses, other operating and general expenses 18