Tethys assets. Sweden - Gotland större - Gotland mindre. Lithuania - Gargzdai - Rietavas - Raiseiniai. France - Attila - Permis du Bassin D Alès

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Arlene Watson
5 years ago
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2 Tethys assets Sweden - Gotland större - Gotland mindre Lithuania - Gargzdai - Rietavas - Raiseiniai France - Attila - Permis du Bassin D Alès Oman - Block 3 & 4 - Block 15 2

Tethys Oil - An expanding oil & gas company Invests in areas with known oil and gas accumulations and extract upside potential through the use of modern technologies Strategic assets with long term

3 Tethys Oil - An expanding oil & gas company Invests in areas with known oil and gas accumulations and extract upside potential through the use of modern technologies Strategic assets with long term potential Recently awarded 3 year production license in Oman Chevron entered as partner in Lithuanian license in Q4 Positive cash flow from production in Oman and Lithuania Significant production growth through ramp-up in Oman through 212 Market cap ~ SEK 2 billion Company is founded IPO on First North on 6 April 24 Interest in Block 3 & 4 in Oman acquired Strategic investment in Lithuania agreement with Odin Energi Production record of bopd in Oman FDP Block 3 & 4 approved 3

4 Asset overview Country Licence name Total area Tethy s interest Partners Production Oman Block 3 & km 2 3% CCED, Mitsui > 3 5 bopd Oman Block km 2 4% Odin Energi Lithuania Rietavas km 2 14% Odin Energi, private investors, Chevron Lithuania Raiseiniai km 2 2% Odin Energi, private investors Lithuania Gargzdai 884 km 2 25% Odin Energi, Geonafta France Attila km 2 4% Galli Coz France Alès 215 km 2 37,5% Mouvoil Sweden Gotland större/mindre 581 km 2 1% > 14 bopd Production Exploration 4

Oman Tethys core area Three blocks: 3 & 4 and 15 Tethys is one of the largest license holders in Oman, measured by acreage 15 4 3 Two main projects: Farha

5 Oman Tethys core area Three blocks: 3 & 4 and 15 Tethys is one of the largest license holders in Oman, measured by acreage Two main projects: Farha South Conventional oil (Block 3) Saiwan East Conventional oil (Block 4) Other projects: Saiwan East Heavy oil (Block 4) Jebel Aswad Gas/Condensate (Block 15) 5

Oman Block 3 & 4 The primary assets Maeen - Qarn Sahmah Flank Al Saad Qulam North Abu Zeinah Al Saad Qulam North Huwayr Deep` Abu Deep Zeinah Deep Maeen - North Saiwan Qarn Sahmah Flank North Saiwan

6 Oman Block 3 & 4 The primary assets Maeen - Qarn Sahmah Flank Al Saad Qulam North Abu Zeinah Al Saad Qulam North Huwayr Deep` Abu Deep Zeinah Deep Maeen - North Saiwan Qarn Sahmah Flank North Saiwan Huwayr Deep` Farha South Farha South East Saiwan Saiwan East Tethys 3%, CCED 5% (operator) and Mitsui 2% Significant light oil resource base Net 2C resources of 13.8 mmbo Large upside potential in exploration and increased recovery Gross production of 14,734 bopd (Tethys share bopd) in Dec 212 Leads outside of producing areas Mmbo = million barrels Saih Hajmah Saih Hajmah Producing areas Resources Resources Jan 212 (mmbo) Resources Jun 212 (mmbo) Production Jan-Jun 212 (mmbo) Increase (%) 1C C *Calculated for first six months of 212 6

7 Farha Trend Growth 7

8 Oman production Produced volume, bbl* Daily production, bopd Q4-211 Q1-212 Q2-212 Q3-212 Q Gross production Tethys, net production Total production, BOPD Tethys Net production, BOPD Increasing oil production from Block 3 and 4 Steady total production in excess of 1. bopd *bbl = barel (1barel =159 litres) **bopd = barels of oil per day 8

Tethys Oils daily and monthly Production 16 Tethys Daily v Monthly Production 5 Barrels of oil 14 12 1 8 6 4 2 4 5 4 3 5 3 2 5

9 Tethys Oils daily and monthly Production 16 Tethys Daily v Monthly Production 5 Barrels of oil Barrels of oil Production per Month (From Tethys Official Production Press release) Average Daily Tethys Production 9

10 Resources Mmbo Contingent Resources (Audited) Blocks 3 and 4, Oman 1C 2C 3C As per 31 Dec, 211 2, Production 1 Jan 3 Jun Revisions As per 3 Jun, Increase 31% 41% 4% 41% increase in 2C resources to 13.8 mmbo compared to December 31, 211 1

11 Oman - Drilling program uppdateras Total wells drilled 4 Type of wells Exploration wells Water injection wells Wells in previously undrilled fault block Production wells Q1-212 Q2-212 Q3-212 Q

Lithuania High value production with unconventional upside Gargzdai 25% interest ~14 bopd production (net) Rietavas 14% interest Raiseiniai 2% interest 3 licences, Gargzdai, Rietavas and Raiseiniai

12 Lithuania High value production with unconventional upside Gargzdai 25% interest ~14 bopd production (net) Rietavas 14% interest Raiseiniai 2% interest 3 licences, Gargzdai, Rietavas and Raiseiniai Gargzdai in production Large potential upside in unconventional resources Shale oil and enhanced oil recovery Licenses are held through an operating subsidiary, operated by Odin Investment through associated companies *Assuming USD 1/bo oil price 12

Lithuania Gargzdai license Tethys Oil 25% (Odin Energi, Geonafta) 7 producing fields One exploration well indicates large potential in shale sections Vast amount of shale core and other data

13 Lithuania Gargzdai license Tethys Oil 25% (Odin Energi, Geonafta) 7 producing fields One exploration well indicates large potential in shale sections Vast amount of shale core and other data collected in shale section for analysis 2 undrilled prospects Reserves as per 31 December 211 Reserves (Audited) Mmbo 1P 2P 3P The Gargzdai license *Mmboe = Miljon barrels of oil equivalent **bopd = barels of oil per day 13

14 Lithuanian oil production 15 mmbo produced to date Current gross production of ~57 bopd 42 API oil Oil sold at USD ~1 discount to Brent Produced volume, bbl* Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Cumulated production (Tethys share) Bbl per day (Tethys share) *bbl = barel (1barel =19 litres) 14

Lithuania - Rietavas & Raiseniai licenses Rietavas 1 594 km 2 Tethys interest 14% Partners: Odin Energi, Chevron, private investors Work programme fully funded by Chevron Exploration primarily shale

15 Lithuania - Rietavas & Raiseniai licenses Rietavas km 2 Tethys interest 14% Partners: Odin Energi, Chevron, private investors Work programme fully funded by Chevron Exploration primarily shale gas/oil, but also conventional oil potential Raiseniai km 2 Tethys interest: 25% Partners: Odin Energi, private investors Exploration primarily shale gas/oil, but also conventional oil potential 15

16 Lithuania - Geological setting and petroleum system 16

Other exploration assets France Interests in two

gas and oil Data and logs from 17 wells Currently

region 4+ prospects identified Drilling depth

17 Other exploration assets France Interests in two licences: Attila and Alès Known accumulations of gas and oil Data and logs from 17 wells Currently no work on-going Sweden (Gotland) Proven oil region 4+ prospects identified Drilling depth required is less than 5 metres Favourable fiscal terms 17

Q4 Highlights Record gross production from Oman of 399 625 barrels corresponding to 4 344 barrels per day in Q4 Field development plan Block 4 & 4 approved in December. License extended until 24.

18 Q4 Highlights Record gross production from Oman of barrels corresponding to barrels per day in Q4 Field development plan Block 4 & 4 approved in December. License extended until 24. Farmout of Lithuanian license Rietavas to Chevron. Fully funded workprogram. MUSD 2 remaining of Mitsui s cost carry in wells drilled on Blocks 3 and 4 in Oman 8% success rate on drillings in previously undrilled fault block discovered 8 new oil bearing blocks in

Outlook Field Development Plan approved allows long term development and investment plans (3 years) Capex for Block 3 & 4 estimated MSEK 3 in 213, fully funded by cash flow Continued drilling with 2

19 Outlook Field Development Plan approved allows long term development and investment plans (3 years) Capex for Block 3 & 4 estimated MSEK 3 in 213, fully funded by cash flow Continued drilling with 2 rigs: focus on increasing reserves with exploration also on Block 4 Using knowledge and experiences gained from existing projects in continued exploration Q1 Oman production estimated to 4-5 bopd (before government take and taxes) Comprehensive work program in Lithuania to begin shortly - fully funded by Chevron 19

20 FINANCIALS 2

21 Financial highlights Q4 212 Production (barrels) Revenue (MSEK) Average achieved oil price (USD/barrel) EBITDA(MSEK) Result for the period (MSEK) Operating cash flow (MSEK) Fourth Quarter Year

22 Result overview Revenues Net profit from associate MSEK 49 Operating result Administrative expenses MSEK 29 Depreciation of oil and gas properties MSEK 55 Operating expenses MSEK 96 Write off oil and gas properties MSEK 118 Net sales of oil and gas MSEK 584 Operating result MSEK

23 Oman crude oil sales Sold volume, bbl Revenues from oil sales, tsek Q4-211 Q1-212 Q2-212 Q3-212 Q4-212 Q4-211 Q1-212 Q2-212 Q3-212 Q

24 USD per Barrel Tethys sale vs Brent and Omani blend 14 Spot Brent v Omani Blend Futures BRENT SPOT Omani Blend futures TETHYS OIL SALE PRICE 24

25 Growing sales and profitability Net sales EBITDA SEKm Q4 211 Q1 212 Q2 212 Q3 212 Q4 212 SEKm SEKm SEKm Q4 211 Q1 212 Q2 212 Q3 212 Q4 212 Net sales (lhs) Net sales LTM (rhs) EBITDA (lhs) EBITDA LTM (rhs) Strong underlying production Lifting in January 212 originally scheduled fo december 211 added sales of MSEK 38 in Q1 212 From underlift in Q3 to overlift in Q4 Higher oil price in Q4 25

26 Financial highlights Q3 212 Cash, MSEK Long term debt, MSEK Shareholders Equity, MSEK Investments, MSEK Dec 3, Of investments SEK 381 million regard payments to Mitsui Market Cap SEK ~ 2 billion in January

27 Very strong underlying cash generation Operating cash flow before working capital changes Investments SEKm SEKm SEKm SEKm Q4 211 Q1 212 Q2 212 Q3 211 Q4 212 Cash flow from operations before working capital changes (lhs) Cash flow from operations before working capital changes LTM (rhs) Q4 211 Q1 212 Q2 212 Q3 211 Q4 212 Investments in oil and gas properties (lhs) Investments LTM (rhs) Cost repayment (lhs) Cash flow from operations have been growing rapidly in conjunction with commenced production in Oman By the end of 211, Mitsui had carried cost up to the agreed USD 6m Cost repayment commenced in 212 MUSD 2 m remains to be paid as at 3 Dec 212 (contingent liability) 27

28 Revenue split - maximum cost recovery Joint Venture Block 3 & 4 1 bbl 1$ 4 $ Maximum Cost recovery 4% 6$ State of Oman 4+12 =52$ Revenue split 2% 8% 48$ Tethys Oil 3% CCED 5% Mitsui 2% 15:6$ 26$ 1:4$ 28

29 Financials MSEK (unless stated) 4Q211 1Q212 2Q212 3Q212 4Q Net sales of oil and gas Operating result EBITDA Result for the period Earnings per share, SEK 1,36 3,31,46 1,35 4,7 9,11 Cash and cash equivalents Investments

Ownership and share price development Shareholders Share price development 8 7 6 5 4 3 2 1 Management and

30 Ownership and share price development Shareholders Share price development Management and Board of Directors currently hold 17% of the share capital Market capitalisation as of Jan 213 of ~ SEK 2 billion 3

31 31

13 Mars,

13 Mars, 2013 1 Financial highlights 2012 Production (barrels) Avg daily production BOPD Revenue (MSEK) Average achieved oil price (USD/barrel) EBITDA(MSEK) Result for the period (MSEK) Operating cash