New World Oil & Gas Investor Presentation - Proactive Investors
New World Oil & Gas Investor Presentation - Proactive Investors
New World Oil & Gas Investor Presentation - Proactive Investors
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<strong>Proactive</strong> <strong>Investor</strong>s Conference<br />
Manchester, 13 October 2011
Disclaimer<br />
This presentation has not been approved by an authorized person within the meaning of the Financial Services and Markets Act 2000. The securities mentioned herein have<br />
not been and will not be, registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or under any U.S. State securities laws, and may not be offered<br />
or sold in the United States unless they are registered under the Securities Act or pursuant to an exemption from or in a transaction not subject to the registration<br />
requirements of the Securities Act. Reliance on this promotion for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing<br />
all of the property or other assets invested.<br />
The information in the presentation and these presentation materials (together, the “<strong>Presentation</strong> Materials”) are being supplied to you for information purposes only in<br />
connection with a proposed placing of ordinary shares (the “Placing”) by <strong>New</strong> <strong>World</strong> <strong>Oil</strong> and <strong>Gas</strong> Plc (the “Company” or “<strong>New</strong> <strong>World</strong> <strong>Oil</strong> and <strong>Gas</strong>”). These <strong>Presentation</strong><br />
Materials have been prepared by and are the sole responsibility of the Company. The Directors of the Company have taken all reasonable care to ensure that the facts<br />
stated herein are true to the best of their knowledge, information and belief.<br />
These <strong>Presentation</strong> Materials, being this presentation and any additional documents handed out in the meeting, are being issued on a strictly private and confidential basis<br />
and solely to and directed at persons (a) who have professional experience in matters relating to investments, being investment professionals as defined in Article 19(5) of<br />
the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “FPO”), (b) high net worth companies as defined in Article 49(2) of the FPO, (c) certified<br />
sophisticated investors as defined in Article 50(1) of the FPO or (d) persons to whom it may otherwise lawfully be communicated (together “Relevant Persons”). In order to<br />
qualify as a certified sophisticated investor you must have a current certificate signed by a person authorized by the Financial Services Authority to the effect that you are<br />
sufficiently knowledgeable to understand the risks associated with this particular type of investment and you must have signed within the last 12 months a statement in the<br />
terms set out in Article 50(1)(b) of the FPO. The ordinary shares are available only to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire the<br />
ordinary shares will be engaged in only with, Relevant Persons. Any person who is not a Relevant Person should not rely on this document nor take any action upon it, but<br />
should return it immediately to the Company.<br />
We urge you to review the presentation carefully before making any investment decision. These <strong>Presentation</strong> Materials do not constitute, or form part of, a prospectus<br />
relating to the Company, nor do they constitute or contain any invitation or offer to any person to subscribe for, purchase or otherwise acquire any shares in the Company or<br />
advise persons to do so in any jurisdiction, nor shall it, or any part of it form the basis of or be relied on in connection with any contract. No reliance may be placed for any<br />
purpose whatsoever on the information or opinions contained in this document or on its completeness. No representation or warranty, express or implied, is given by the<br />
Company as to the accuracy of the information or opinions contained in this document. This presentation must be read in conjunction with the Admission Document and it<br />
contains only a synopsis of more detailed information to be made available in relation to the matters described in this document and accordingly no reliance may be placed<br />
for any purpose whatsoever on the sufficiency or completeness of such information. Any recipient of these <strong>Presentation</strong> Materials who is in any doubt about the investment<br />
to which this presentation relates should consult an authorized person specializing in advising on investments of this kind. This document does not constitute a<br />
recommendation regarding the shares of the Company. Prospective investors are encouraged to obtain separate and independent verification of information and opinions<br />
contained in the <strong>Presentation</strong> Materials as part of their own due diligence. By accepting these <strong>Presentation</strong> Materials, the Recipient agrees to keep permanently confidential<br />
the information contained herein or sent herewith or made available in connection with further enquiries. It is a condition of the issue of these <strong>Presentation</strong> Materials that<br />
they will not be reproduced, copied, distributed or circulated to any third party, in whole or in part, or published in whole or in part for any purpose, without the express<br />
prior consent of the Company. Neither the Company, nor its advisers accept liability whatsoever for any loss howsoever arising, directly or indirectly, from use of this<br />
document or its contents or otherwise arising in connection therewith.<br />
The reproduction, copying or distribution of these <strong>Presentation</strong> Materials in other jurisdictions may be restricted by law and persons into whose possession these<br />
<strong>Presentation</strong> Materials come should inform themselves about, and observe, any such restrictions. These <strong>Presentation</strong> Materials are not for distribution outside the United<br />
Kingdom and in particular, they or any copy of them should not be distributed, directly or indirectly, by any means (including electronic transmission) either to persons with<br />
addresses in the United States, Canada, Australia, Japan, the Republic of South Africa or the Republic of Ireland, or to any citizens, nationals or residents thereof, or to any<br />
corporation, partnership or other entity created or organized under the laws thereof. Any failure to comply with these restrictions may constitute a violation of the laws of<br />
any such other jurisdictions.<br />
These <strong>Presentation</strong> Materials contain certain forward-looking information about the Company which are statements, beliefs, opinions or projections that are not historical<br />
facts, and which may be identified by the use of terminology such as “proposes,” “may,” “believes,” “anticipates,” “projects,” “expects,” estimates” or “forecasts” or<br />
comparable terminology and which reflect the Company’s or, as appropriate, the Company’s Directors current expectations and beliefs about future events. By their nature,<br />
forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed in<br />
such statements, beliefs and opinions depending on a variety of factors. Past performance, trends or activities of the Company or its shares cannot be relied on as a guide to<br />
future performance, trends or activities. Any forward-looking information contained in these <strong>Presentation</strong> Materials has been prepared on the basis of a number of<br />
assumptions which may prove to be incorrect, and accordingly, actual results may vary from those projected as a result of, among other factors, changes in economic and<br />
market conditions, changes in the regulatory environment and other business and operational risks. Recipients of these <strong>Presentation</strong> Materials should not place reliance on<br />
forward-looking statements, which speak only as of the date of the <strong>Presentation</strong> Materials. The Company does not undertake any obligation to update or revise any<br />
forward-looking statements, whether as a result of new information, future events, circumstances or otherwise or to reflect the occurrence or non-occurrence of any events.<br />
By attending the presentation and/or retaining these <strong>Presentation</strong> Materials you will be taken to have represented, warranted and undertaken that: (i) you are a Relevant<br />
Person (ii) you have read and agree to comply with the contents and restrictions of this disclaimer and (iii) you will use the information in this document solely for evaluating<br />
your possible interest in acquiring securities of the Company.<br />
2<br />
| NEW WORLD OIL AND GAS PLC | OCTOBER 2011
Overview<br />
• Incorporated April 2010 1 year sourcing projects Listed on AIM May 2011<br />
• Targeted oil and gas projects through acquisition or Farm-Out<br />
• Farm-Out Agreement to acquire up to a 100% participating interest in the<br />
Production Sharing Agreement for the Blue Creek Project in Petén Basin in Belize<br />
• Farm-Out Agreements completed October 2011 for Danica Jutland Project in<br />
North Permian Basin, Denmark<br />
• Well funded having raised £3.0 million at 5p per share at IPO plus £3.0 million at<br />
6p per share in June 2011<br />
• Very experienced management team – discovered oil worldwide – created<br />
shareholder value on AIM<br />
• Highly active and positive news flow<br />
• Primary focus to discover and produce oil and gas<br />
3<br />
| NEW WORLD OIL AND GAS PLC | OCTOBER 2011
Investment Strategy<br />
• Identify assets which are undervalued, underdeveloped or underperforming<br />
• Initial focus on Central America and Denmark<br />
• Target assets centered on late stage exploration, early production, exploitation in<br />
basins with large proven reserves:<br />
• Petén Basin, Northwest Belize<br />
• North Permian Basin, Denmark<br />
• Utilise management team’s extensive contacts to build a “Pipeline of Projects”<br />
• Actively evaluating in areas including Africa, South America and South East Asia<br />
4<br />
| NEW WORLD OIL AND GAS PLC | OCTOBER 2011
Investment Criteria<br />
Exploration/Development<br />
plays<br />
Early cash flow<br />
opportunities<br />
Close to world oil price<br />
Strong regional analogues<br />
in adjacent blocks<br />
FOCUS ON OIL PROJECTS<br />
<strong>New</strong> <strong>World</strong> named as<br />
Operator<br />
Farm-out opportunities<br />
with controlling interest<br />
5<br />
| NEW WORLD OIL AND GAS PLC | OCTOBER 2011
Blue Creek Project – Petén Basin, Belize<br />
• Located in Northwest Belize in the<br />
productive North Petén Basin<br />
• Prolific oil and gas basin with massive<br />
volumes of proven oil and gas reserves –<br />
Spanish Lookout and Never Delay Fields<br />
• High potential and low geologic<br />
relative risk<br />
• Stable political environment<br />
• <strong>World</strong> prices market a 2 ½ day<br />
steam away by tanker (Gulf Coast of US)<br />
• Deal to acquire Blue Creek signed in June 2011 – 34 days after listing<br />
• Two on-shore concessions - Blue Creek and Blue Creek South, both named under<br />
one 420 sq km Production Sharing Agreement<br />
• Agreement to acquire up to a 100% interest from Blue Creek Exploration Ltd –<br />
<strong>New</strong> <strong>World</strong> appointed Operator<br />
6<br />
| NEW WORLD OIL AND GAS PLC | OCTOBER 2011
Blue Creek Project Status<br />
Phase 1 Seismic<br />
complete (68.2km);<br />
Phase 2 underway<br />
targeting total 170km<br />
Phase 1 seismic data<br />
superior to previous<br />
data on licence<br />
FOUR STRUCTURES<br />
IDENTIFIED –<br />
volumetrics to be<br />
determined after<br />
Phase 2<br />
Close proximity to<br />
recently discovered &<br />
producing Spanish<br />
Lookout & Never Delays<br />
oil fields<br />
Geological risk reduced<br />
from 1 in 12 to 1 in 8<br />
from Phase 1 to Phase 2<br />
Geologic &<br />
geophysical advisors<br />
taking partial payment<br />
in NEW shares – vote<br />
of confidence<br />
Licences considered<br />
highly prospective<br />
Seismic interpretation<br />
very similar to Spanish<br />
Lookout<br />
Two highly positive Competent Person’s<br />
Reports carried out by RPS Energy:<br />
• 9 June 2011<br />
• 20 September 2011<br />
7<br />
| NEW WORLD OIL AND GAS PLC | OCTOBER 2011
Blue Creek Results to Date<br />
• Two additional phases of seismic acquisition planned to further high grade existing<br />
prospects, reduce risk and improve probability of discovery<br />
• Phase 2 seismic designed to<br />
mature prospects<br />
• P10, P50, P90<br />
volumetrics<br />
• Scoping economics<br />
• Estimated market value<br />
• Phase 3 Seismic on Project<br />
for Belize Lands – end of Q1<br />
2012<br />
Results of Phase 1 Seismic Interpretation: 4 Seismic based leads/prospects<br />
8<br />
| NEW WORLD OIL AND GAS PLC | OCTOBER 2011
Danica Jutland Project - Denmark<br />
•Located in productive Jutland onshore<br />
area, South Western Denmark<br />
• Southern flank of Northern Permian<br />
Basin (‘NPB’)<br />
• RPS: “Mirror image of northern flank<br />
of Southern Permian Basin with proven<br />
productive reservoirs”<br />
• Stable political environment<br />
• Consists of Licences 1/09 and 2/09 totalling 4,107 sq km<br />
• Farm-out Agreements signed October 2011 - <strong>New</strong> <strong>World</strong> to acquire 80% of the working<br />
Interest - Farmor to retain 5% Overriding Royalty<br />
• <strong>New</strong> <strong>World</strong> to be named Operator<br />
9<br />
| NEW WORLD OIL AND GAS PLC | OCTOBER 2011
The North Permian Basin<br />
10<br />
| NEW WORLD OIL AND GAS PLC | OCTOBER 2011
Danica Jutland Project Status<br />
Seismic data nearby –<br />
AVO anomalies in<br />
Triassic Bunter &<br />
Tonder Sandstone gas<br />
fields in SPB<br />
Significant size licence<br />
areas offer significant<br />
potential<br />
Acquiring more 2D<br />
Seismic in multiphased<br />
approach to<br />
reduce risk & further<br />
increase probability of<br />
success<br />
RPS: “Reef and/or shoal<br />
facies likely to make<br />
excellent reservoirs”<br />
Positive geochemical<br />
results show striking<br />
clusters<br />
2 Triassic & 8<br />
Zechstein leads<br />
identified by RPS<br />
RPS: “Potential to<br />
contain multiple<br />
productive horizons”<br />
Interesting opportunity<br />
to assess late stage<br />
exploration<br />
Highly positive Competent Person’s Report<br />
by RPS Energy – 16 August 2011<br />
11<br />
| NEW WORLD OIL AND GAS PLC | OCTOBER 2011
Danica Jutland Project – Licence 1/09 and 2/09<br />
Licence 1/09 Licence 2/09<br />
12<br />
| NEW WORLD OIL AND GAS PLC | OCTOBER 2011
Danica Jutland – Existing Seismic Data<br />
Regional seismic line showing basin-ward<br />
thickening of the Zechstein and tilted fault<br />
blocks in the Triassic<br />
• AVO bright spots<br />
• Direct hydrocarbon<br />
indicators<br />
• In the Triassic Tonder an<br />
Bunter intervals<br />
13<br />
| NEW WORLD OIL AND GAS PLC | OCTOBER 2011
Danica Jutland prospects & oil seeps<br />
Known oil seeps on both license blocks<br />
Locations of prospects on both blocks<br />
14<br />
| NEW WORLD OIL AND GAS PLC | OCTOBER 2011
Investment Case<br />
• Exciting opportunity to participate in a highly undervalued company with well thought out,<br />
late stage exploration and development projects at an extremely reasonable price<br />
• Successful Phase 1 seismic at Blue Creek<br />
• Reduction in geologic risk – 1 in 8 from 1 in 12<br />
• Four prospects identified in a working hydrocarbon system<br />
• Next step - estimate recoverable volumes following Phase 2 seismic<br />
• On track to commence drilling H2 2012<br />
• Danica Jutland Farm-Out completed October 2011<br />
• Working hydrocarbon system<br />
• Multi-phased 2-D seismic acquisition October 2011<br />
• Data acquisition for the Phase 1 seismic by May 2012<br />
• Rapid progress made since listing illustrates technical expertise and wide network of contacts<br />
of management team<br />
• Identifying/adding exploitation opportunities to asset base - enter into production as soon as<br />
possible<br />
• Fully funded to drilling stage<br />
15<br />
| NEW WORLD OIL AND GAS PLC | OCTOBER 2011
Forecast of <strong>New</strong>s-flow<br />
Blue Creek Project, Belize<br />
• Naming of <strong>New</strong> <strong>World</strong> on PSA<br />
• Completion of Phase 2 seismic<br />
• Updated CPR<br />
• Volumetrics and Market Value Estimate<br />
• Commencing of Phase 3 seismic on Project of Belize Lands<br />
• Completion of Phase 3 seismic<br />
• Commence Drilling Operations<br />
Danica Jutland Project, Denmark<br />
• Start of Phase 1 seismic<br />
• Update of CPR<br />
Potential additional acquisitions<br />
16<br />
| NEW WORLD OIL AND GAS PLC | OCTOBER 2011
Undervalued?<br />
9 June – CPR<br />
published on Blue<br />
Creek Project<br />
23 May - Letter of<br />
Intent signed on Blue<br />
Creek Project<br />
16 June – Farm-out<br />
completed on Blue<br />
Creek Project<br />
29 June - Placing to<br />
raise £3 million<br />
04.07.11 - Letter of<br />
Intent Signed Danica<br />
Jutland<br />
04.08.11 - Operations<br />
Update – Blue Creek<br />
Project, Belize<br />
16.08.11 – Danica<br />
Jutland CPR<br />
09.09.11 –<br />
Appointment of Fred<br />
Hodder<br />
08.09.11 – Interims<br />
21.09.11 – Updated<br />
Blue Creek CPR<br />
17<br />
| NEW WORLD OIL AND GAS PLC | OCTOBER 2011
Wrap-up<br />
• Highly undervalued in the current economic climate - trading just above cash in<br />
bank<br />
• Reducing risk in multi-phase approach working with our CP until next logical step<br />
is drilling<br />
• Focused on making discoveries for each project upon which investors will make<br />
high return<br />
• Low entrance cost and exposure to large multiple return on investment<br />
• Fully funded to drilling stage<br />
• Focused on minimising dilution<br />
• Presently speaking with interested companies to jointly participate in projects<br />
which will assist in funding<br />
18<br />
| NEW WORLD OIL AND GAS PLC | OCTOBER 2011
Key Data<br />
Share Price<br />
4p<br />
Market<br />
AIM<br />
Ticker<br />
NEW<br />
Market Capitalisation<br />
4.83 million<br />
Ordinary Shares in Issue<br />
127.5 million<br />
Directors Shareholding 14.4 million (11.3%)<br />
Listing price<br />
5p<br />
Average vol. traded daily<br />
1.3 million<br />
19<br />
| NEW WORLD OIL AND GAS PLC | OCTOBER 2011
Board of Directors and Management<br />
William Kelleher<br />
CEO<br />
William Kelleher has over 31 years experience in the oil and gas industry, most recently as a Non Executive Director of Bramlin Limited<br />
and previously as a co-founder and Managing Director of AIM listed Victoria <strong>Oil</strong> and <strong>Gas</strong> Plc. Prior to these roles, he worked for Yukos<br />
<strong>Oil</strong> Corporation as its Executive Vice President for Central Asia, where he was responsible for managing and developing its exploration<br />
and production companies in Kazakhstan and Central Asia. He has also worked for a number of Exploration and Production companies<br />
including Celtic Resources Holdings Plc, Partex <strong>Oil</strong> and <strong>Gas</strong>, First International <strong>Oil</strong> Corporation, Chevron, and Occidental International<br />
<strong>Oil</strong> & <strong>Gas</strong> and has been a member of the Society of Petroleum Engineers for 27 years.<br />
Georges Sztyk<br />
Executive Director<br />
Georges Sztyk has over 35 years experience in the industry. After a 23-year career with Shell Canada, Georges embarked on an<br />
international Exploration & Production career. Beginning with Kyrgyzstan in 1997, Georges was instrumental in the establishment of<br />
an operating company, Kyrgyz. Petroleum Co. From 2003 to 2005, Georges was involved in the creation of Victoria <strong>Oil</strong> & <strong>Gas</strong> Plc, which<br />
was involved in Exploration & Production in both Kazakhstan and Russia.<br />
Peter Sztyk<br />
Executive Director<br />
Stephen Polakoff<br />
Non-Executive Director<br />
Roland Frederick Hodder<br />
Non-Executive Director<br />
Peter Sztyk began his career in law at LeBoeuf, Lamb, Greene & MacRae LLP and then White & Case LLP, where he worked on<br />
significant emerging capital markets and acquisition finance transactions, especially in the energy sector. Peter set up Golden Temple<br />
Capital Management LLP (Golden Temple) in 2007, an investment management company focusing on international investors and Asian<br />
project.<br />
Stephen Polakoff is general counsel and member of the Russian executive board of Integra Group, a London Stock Exchange listed oil<br />
field services company, focussing on the former Soviet Union. Previously, Stephen was the head of the Moscow legal department at<br />
Deutsche Bank responsible for activities in Russia, Kazakhstan and Ukraine. He was formerly a senior associate with the law firm<br />
Clifford Chance in its <strong>New</strong> York and Moscow offices where he specialised in project finance (oil, gas and electricity), capital markets<br />
and debt financing. Stephen is currently an independent director of private equity and hedge funds as well as a small cap oil company<br />
listed in Canada.<br />
Fred Hodder has 30 years’ international financial and management experience together with extensive experience in the oil and gas<br />
sector. Mr. Hodder has most recently held a number of non-executive directorships of AIM traded companies, including Timan <strong>Oil</strong> &<br />
<strong>Gas</strong> plc and Baltic <strong>Oil</strong> Terminals plc and was Chairman of TSX listed Manor Global Inc.. From 2002-2005, he was Senior Vice President<br />
and Chief Financial Officer of TSX listed Nelson Resources Limited. At the same time, he was Chairman of Chaparral Resources Inc.. He<br />
was also President and CEO of Kazakhstan International Management, an investment management company seeking opportunities in<br />
the CIS, and Managing Director of the Central Asian-American Enterprise Fund. Mr. Hodder chairs both the audit committee and<br />
remuneration committee.<br />
Robert Hull<br />
General Manager – NW Belize<br />
Robert (Bobby) Hull has 35 years experience in the oil and gas industry. Robert started his career in the Gulf of Mexico supervising<br />
production and construction for Kerr McGee, Diamond Shamrock and Maxus Energy. Robert then began his international career<br />
managing field operations in Ecuador, Equatorial Guinea, Tunisia and Cameroon. This included the installation of a LPG plant,<br />
refrigerated storage, pipelines, condensate tanks and living facilities.<br />
20<br />
| NEW WORLD OIL AND GAS PLC | OCTOBER 2011
Contacts<br />
William Kelleher<br />
<strong>New</strong> <strong>World</strong> <strong>Oil</strong> and <strong>Gas</strong> Plc<br />
+1 713 447 2171<br />
william.kelleher@nwoilgas.com<br />
Peter Sztyk<br />
<strong>New</strong> <strong>World</strong> <strong>Oil</strong> and <strong>Gas</strong> Plc<br />
+1 917 215 7122<br />
peter.sztyk@nwoilgas.com<br />
Georges Sztyk<br />
<strong>New</strong> <strong>World</strong> <strong>Oil</strong> and <strong>Gas</strong> Plc<br />
+1 514 961 2247<br />
georges.sztyk@nwoilgas.com<br />
Hugo de Salis<br />
Lottie Brocklehurst<br />
Frank Buhagiar<br />
St Brides Media & Finance Ltd<br />
+44 (0) 20 7236 1177<br />
lottie@sbmf.co.uk<br />
21<br />
| NEW WORLD OIL AND GAS PLC | OCTOBER 2011