• Like
Investor presentation
Upcoming SlideShare
Loading in...5
×
Uploaded on

 

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
183
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
3
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Investor PresentationAugust, 2012
  • 2. This is an oral presentation which is accompanied by slides. Investors are urged to review our SECfilings. This presentation contains certain forward-looking statements regarding various oil and gasdiscoveries, oil and gas exploration, development and production activities, anticipated and potentialproduction and flow rates; anticipated revenues; the economic potential of properties and estimatedexploration costs. Accuracy of the projections depends on assumptions about events that change overtime 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 tothe projections in this presentation and, except to the extent required by applicable law, does not intend toupdate or otherwise revise the projections. Important factors that might cause future results to differ fromthese projections include: variations in the market prices of oil and natural gas; drilling results; access toequipment and oilfield services; unanticipated fluctuations in flow rates of producing wells related tomechanical, reservoir or facilities performance; oil and natural gas reserves expectations; the ability tosatisfy future cash obligations and environmental costs; and general exploration and development risksand hazards.The Securities and Exchange Commission permits oil and gas companies in their filings with the SEC todisclose only proved reserves that a company has demonstrated by actual production or conclusiveformation tests to be economically and legally producible under existing economic and operatingconditions. 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 reservespotentially recoverable through additional drilling or recovery techniques. These estimates are by theirnature more speculative than estimates of proved reserves and accordingly are subject to greater risk ofbeing 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 varymaterially. The estimates of recoverable resources per well and completed well costs included herein arebased upon other typical results in these shale plays and may not be indicative of actual results. 2
  • 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 Key Figures Stock Symbol  Balanced Strategy New York Stock Exchange END • Oil and Gas London Stock Exchange ENDV • U.K. and U.S. Market Capitalization* $554.0 million • Conventional and unconventional Fully Diluted Shares Outstanding 65.1 million • Short and long-term production opportunities Proved & Probable Reserves ** 76.0 MMBOE  Near-Term Potential Catalysts • Acquisition of MacCulloch and Nicol from ConocoPhillips – U.K. • Rochelle field development in execution phase – U.K. • Heath Oil Shale proof of concept – U.S. * Market capitalization as of 8/8/12 on a fully diluted basis. ** Reserves are pro forma for the acquisition of MacCulloch and Nicol. 3
  • 4. Significant Production Growth – Acquisition and Near-Term Projects (1) Pro forma Production - Bacchus Pro forma Production - Current Production and MacCulloch & Nicol Fields (2) Rochelle (3) 13% 14% 29% 30% 71% 57% 86% 10,000 – 11,000 boepd 14,000 – 18,000 boepd 20,000 – 25,000 boepd UK Oil US Gas UK Gas(1) As of March 31, 2012, pro forma for additional Alba interests acquired on May 31, 2012.(2) Assumes 2 Bacchus wells online and closing of acquisition of MacCulloch and Nicol fields expected in late 3Q/early 4Q 2012.(3) Rochelle production expected in 4Q 2012. 4
  • 5. Our Growing Resource Base Reserve Growth 80 76.0 100% 70 41% 60 33.7 GAS 50 43.7 MMBoe 38.9 40 30 25.0 26.1 20.7 59% 20 42.3 OIL 19.3 10 18.2 18.7 6.8 0 (1) 2008 2009 2010 2011 Probable Proved (1) Pro forma for reserves of assets acquired and to be acquired in the North Sea Acquisition. 5
  • 6. Reserve Valuation Net Asset Valuation $2,467 $2,500 $2,000 $1,500 $1,288 $1,000 $810 $715 $500 $0 (1) (1) 2P PV-10 1P PV-10 Total Debt Net Debt (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. 6
  • 7. Reserves Value Make-Up and Migration $2,500 $2,000 $1,500 $1,000 $500 $0 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 7
  • 8. Overview of Endeavour’s U.K. Assets Current Production Development Projects Enoch Ivanhoe / RobRoy MacCulloch Rubie Nicol Renee Alba Bacchus Rochelle Columbus Bittern * 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 late 3Q/early4Q 2012. 8
  • 9. Expected 2012 Exit Position of Endeavour GDF Suez Premier 100 EnQuest DONG Energy Hess Corporation OMV 80 RWE Dea 2P Reserves (MMboe) Dyas Canadian Natural Resources E.ON Ruhrgas Marathon 60 ATP Oil & Gas Endeavour UK + Perenco Bacchus/Rochelle Ithaca Energy Wintershall and Acquisition 40 Nautical Petroleum Fairfield Energy Sterling Resources Itochu Murphy Oil JX Nippon Oil & Energy Billiton BHP Endeavour UK Xcite Energy Corp Tullow Oil EnCore Oil Marubeni 20 Bayerngas EOG Resources Chrysaor Noble Energy Valiant Petroleum Agora Oil & Gas First Oil Bridge Energy DEO Petroleum KNOC 0 0 5 10 15 20 25 30 35 40 Production (kboe/d) 9 Source: Woodmac
  • 10. Bacchus - Block 22/06a Central North Sea END WI: 30% Operator: Apache (50% WI) Bacchus Partner: First Oil (20% WI)  First two wells on production ~ 13,000 boepd gross  Reservoir is formed by shallow marine Fulmar sandstones of Upper Jurassic age  Oil exported to Forties Pipeline System 22/6a-14 22/6a-14Z 22/6a-15 10
  • 11. Rochelle - Blocks 15/26b, 15/26c and 15/27 Operator: Endeavour (44% WI) Ivanhoe / RobRoy Partners: Nexen (41% WI), Premier Oil (15% WI) FDP Approved: February 2011 Renee Rubie Online: Q4 2012 Goldeneye Project in execution phase • The first of two planned development wells spud on Rochelle August 1, 2012 • Installation of the pipe and manifolds to commence in the Q3 Off-take capacity at the Scott Platform is 100 mmcf/d in year one ramping up to 120 mmcf/d in the second year Modifications to the Scott Platform in progress • Annual shut-down work for Rochelle production in final stages 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 11
  • 12. Rochelle Field - Development Status  2012 Achievements • Pipeline section fabrication completed • Commenced full pipeline completed • Deliveries on target • Beds on the platform allocated • Regulatory consents in place • Drilling commenced on August 1, 2012 • Subsea installation commencing early 3Q • Pipelay commencing 3Q • Rochelle first gas in 4Q 12
  • 13. Alba Field Overview - Block 16/26a END WI: 25.68% MacCulloch Operator: Chevron (23.37% WI) Partners: Statoil (17% WI) Nicol BP (13% WI) Total (12.65% WI) CIECO/Itochu (8% WI) Britannia Discovered/1st Production 1984/1994  450ft water depth Alba  Late Eocene reservoir at ~6,200ft depth • Massive homogeneous unconsolidated sands with excellent quality  35 Platform and subsea wells  Three well infill drilling program planned for 2012 • One well completed, second well drilling  Oil exported by tanker 13
  • 14. Alba Field - Future Development Sustain current production and increase reserves through continued development drilling  Cumulative production to date • ~373 MMbbls gross  Infill drilling since 2009 has largely sustained production  Continuation of infill drilling program • 2012 campaign extended from 6 to 9 months Infill Drilling Campaign • Continuation of drilling included in operator‟s business 50,000 Forecast plan 45,000 GROSS Monthly Stream Rate (Bbl/d) History 40,000 • Large basket of further drilling opportunities identified 35,000 • Addition to current reserves 30,000 • Low economic threshold 25,000 • Short payback time 20,000 15,000 10,000 5,000 0 Jul-2009 Jul-2010 Jul-2011 Jul-2012 Jan-2009 Jan-2010 Jan-2011 Jan-2012 14
  • 15. MacCulloch Field Overview - Block 15/24b END WI: 40% WI* Partners: ENI(40% WI) MacCulloch Noble Energy (14% WI) Talisman (6% WI) Nicol Discovered/1st Production 1990/1997 Britannia  490ft water depth Alba  Paleocene reservoir at ~6,200ft depth • Large and extensive natural aquifer pressure support  5 active wells  FPSO off-take solution  Currently operated by ConocoPhillips. * On 12/27/11, END announced the acquisition of three ConocoPhillips assets in the North Sea. MacCulloch is expected to close in in late 3Q/early Q4 2012. 15
  • 16. MacCulloch Field - Details  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 25,000 Forecast • Debottlenecking, improvement to compressor GROSS Monthly Stream Rate (Bbl/d) History performance and availability 20,000 • Improve operational efficiency 15,000 • Manage offshore duty holder (NSPC) to implement operational improvements 10,000 • Subject to partner approval 5,000 0 Jul-2009 Jul-2010 Jul-2011 Jul-2012 Jan-2009 Jan-2010 Jan-2011 Jan-2012 16
  • 17. Overview of Endeavour’s US Assets US 2011 Year-End Totals  582,000 gross / 159,000 net acres  18.5 MMCFe/D net production (1Q 2012) Heath Shale Oil Play - MT  61 BCFe Proved / 89 BCFe 2P reserves Marcellus Play - PA Cretaceous Plays - CO Haynesville Play – LA/ E. TX 17
  • 18. Heath Shale ‘Tight Oil’ Play in Central Montana Heath Play, END Activity  25% joint venture with two independent Montana producers  430,000+ gross acres primarily in Garfield and Rosebud Counties (94,000 net to END)  Re-entry of 1st vertical planned in the coming months. Currently in process of securing a rig to drill the Zeus 1H-13 in Rosebud country  Robust activity with more than 20 drilling permits around Endeavour‟s acreage Heath Play Attributes  „Bakken-like‟ play, but shallower END/CMR Zeus1H-13 (4000- 5500 ft. depth)  A proven petroleum system ~ 137 MMBO Schmidt 44-27h IP 248 boepd cumulative production (Heath Shale is the Rock Happy 33-3H primary source rock) IP 271 boepd  Rich, oil-prone source rock, up to 20% total organic carbon content, light oil END CMR Cirque Cabot Fidelity Heath sourced oil fields 18
  • 19. The Haynesville and Marcellus Plays Low cost entry with limited drilling requirements  Endeavour‟s Marcellus and Haynesville acreage largely held by production • No wells currently drilling  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 NY PA 2  Marcellus play developing around Ohio Endeavour’s core HBP acreage  Solid well results in adjacent areas on trend with southern McKean and Cameron counties 19
  • 20. Capital Structure ($ mm) December 31, March 31, June 30, 2011 2012 2012 Cash and Deposits $ 106.0 $ 511.6 $ 94.7 Senior Term Loan, 12% plus 3% PIK, due 2013 240.3 241.6 Revolving Credit Facility, 13%, due 2013 - - 100.0 Senior Notes, 12%, due 2018, net - 480.3 481.1 Convertible Bonds, 11.5%, due 2016 @ $16.52, net 60.0 62.2 63.9 Convertible Senior Notes, 5.5%, due 2016 @ $18.51 135.0 135.0 135.0 Subordinated Notes, 12%, due 2014 32.0 32.2 29.8 Total Net Debt $ 361.3 $ 439.6 $ 715.0 Series C Preferred Stock, convertible @ $8.75 37.0 37.0 37.0 Stockholders Equity 154.1 120.0 137.7 Equity Component $ 191.1 $ 157.0 $ 174.7 Shares Outstanding - assuming all converted June 30, 2012 Common Stock 46.6 Series C Preferred Stock, convertible @ $8.75 4.2 Convertible Bonds, 11.5%, due 2016 @ $16.52 4.0 Convertible Senior Notes, 5.5%, due 2016 @ $18.51 7.3 Options, warrants and stock-based compensation 2.9 65.1 20
  • 21. 2012 Capital Plan by Project - $175mm to $200mm $120 $100 $80 $ mm $60 $40 $20 $0 Rochelle Bacchus UK Other US 2012 is About Turning On and Maintaining North Sea Production Note: Capital Plan is pro forma for the North Sea Acquisition 21
  • 22. Corporate Focus for 2012 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 late 3Q /early 4Q Bacchus Development On-line • First two wells on production with field performance at 13,000 boepd gross and above expectations Rochelle in Execution Phase: • Drilling by the Diamond Ocean Nomad commenced on August 1, 2012 • Pipeline section fabrication completed • Subsea installation commencing early 3Q • First gas in 4Q 2012 22
  • 23. NYSE:END LSE:ENDV www.endeavourcorp.comINVESTOR CONTACTS:Mike Kirksey Darcey MatthewsChief Financial Officer Director of Investor Relations713.307.8788 / +44.207.451.2381 713.307.8711mike.kirksey@endeavourcorp.com darcey.matthews@endeavourcorp.com