March 16, 2017 • Volume 09, No. 04 InternationalCapital Serving the marketplace with news, analysis and business opportunities

Shell capex should be steady $25-30B a year until 2020 Vitol moves on Turkish fuel Sale of North Sea holdings to Chrysaor creates new powerhouse in region distribution for $1.4B Believing that $25 billion is the level needed to maintain medium-term growth, A Vitol joint venture, VIP Turkey expects organic capital investment of $25-30 billion a year until Enerji, agreed to buy OMV’s Turkish 2020, but said it can go under that level fuel distribution business if warranted by oil prices. This Plans to sell off $30B total in assets by for €1.368 billion ($1.447 YE18, has $4.7B taken care of. year the company expects to billion). OMV CEO Rainer stay close to the $25 billion floor, it explained in its annual report. Seele said his company The company expects to sell $30 billion worth of assets through YE18 as it could not realize the “original plan of beats down about $125 billion in debt. integrating Petrol Ofisi into OMV’s value Shell said it will divest up to 10% of its oil and gas production and leave between chain.” Of the purchase price, €81 million five and 10 countries as well as exit from certain and downstream assets. relates to net cash proceeds from a prior The Anglo-Dutch major emphasized the value-driven rather than time-driven nature carve-out of OMV’s Turkish gas entities. of its divestment program and noted that it has already sold $4.7 billion of non- strategic assets. Continues On Pg 6 Usually operationally lean, trading house on hunt for assets. plans to spend €31.6B through 2021 on ‘high-value’ work OMV Petrol Ofisi owns the largest Spent €9.1B last year, down 15% from 2015 fuel storage and logistics business in Eni advised that its investments during a four-year plan through 2021 will be Turkey with more than 2.6 billion gallons focused on high-value projects with accelerated returns and on the development of of capacity. Its retail business has 1,709 conventional assets. It plans to spend about €31.6 billion in capex during the period, fuel stations in Turkey, making it the an 8% reduction at constant foreign exchange rates versus the previous plan. largest retail station network in the country. The decrease is mostly related It sold almost 340 million gallons of fuel to Eni’s upstream portfolio and Revamped gas contracts support structural breakeven goal. in 2016. The transaction is expected to attributed to project activity rescheduling close in Q3. Because of the divestment, and contract renegotiations. Within the plan will be an about €500 million increase OMV would incur an impairment against in other businesses, mainly renewable energy, which the company said is a growing earnings of €186 million on top of the component in a decarbonization strategy. €148 million writedown to FY16 earnings About 55% of the capex is uncommitted in 2019 and 2020, giving the it has already taken. Continues On Pg 10 company some flexibility to react or respond to potentially negative oil price movements. Continues On Pg 8 DEALS FOR SALE Chevron sells $4B in bonds across seven tranches WEST AFRICA OFFSHORE Chevron sold $4.0 billion in fixed and variable rate notes in seven tranches on UPPER CRETACEOUS DISCOVERY March 3, marking the supermajor’s first foray into the global debt market since last NonOperated WI For Sale PP May. The company plans to use net proceeds from the sale for general corporate First Class Operator. purposes, including refinancing a portion of its existing $10.4 billion in commercial PP 2701DV paper borrowings. Chevron had more than $35 billion in bonds outstanding as of YE16 ASIA-PACIFIC BANKRUPTCY SALE and has about $6.15 billion in debt that comes due this year. 6-Licenses. 7-Exploration Wells. Three of the seven new ONSHORE PAPUA NEW GUINEA notes have floating rates based Issues $1.15B in floaters, the rest in EASTERN PAPUAN BASIN fixed rates, ahead of probably rate hike. on spreads over three-month Libor. The 5-DISCOVERIES. DS LARGE-SCALE NG & LNG PLAY 2019 notes, of which Chevron issued $450 million principal amount, pay at 9 over 1.2% Indirect Participation Interest 10 three-month Libor. The company also issued $400 million of 2020 notes and $300 Original Interest Acquired From Interoil TCF million of 2022 floating rate notes that pay at 21 and 48 bps, respectively, over Est Y/E 2015 2C Resource: 10.0 TCF three-month Libor. Co-Owners Also Incl Total, Oil Search Of the fixed-rate issues, the largest is for $1.0 billion principal amount of 2.895% CONTACT PLS OFFICE DS 2062PP notes due 2024, followed by $700 million in 2.498% notes due 2022, $600 million in 1.991% notes due 2020 and $550 million in 1.686% notes due 2019. All notes PLS tracks thousands of deals were sold at 100. Continues On Pg 4 for sale www.plsx.com/listings

All Standard Disclaimers & Seller Rights Apply. InternationalCapital 2 March 16, 2017 Xxxxx International Upstream Market Movers—Last 30 Days FX as of March 15, 2017 $/Share $/Share % % Change One US Dollar ($) = Company Exchange 3/14/17 2/15/17 Change YOY Cairn India NSEI:CAIRN $4.36 $4.11 6% 96% Euro 0.936 BME:REP $15.00 $14.75 2% 30% Pound 0.816 Oil India NSEI:OIL $5.07 $5.03 1% 48% Yen 113.913 ONGC NSEI:ONGC $2.91 $2.92 0% 42% RMB 6.912 BP LSE:BP. $5.56 $5.70 -2% 15% Canadian Dollar 1.337

Top 10 Top ExxonMobil NYSE:XOM $80.99 $83.16 -3% -2% Australian Dollar 1.306 Total ENXTPA:FP $49.27 $50.79 -3% 7% Inpex Corporation TSE:1605 $9.64 $9.97 -3% 18% Ruble 58.652 Woodside ASX:WPL $23.47 $24.55 -4% 22% Norwegian Krone 8.546 Chevron NYSE:CVX $107.36 $112.57 -5% 14% Mexican Peso 19.314 Africa Oil TSX:AOI $1.57 $1.94 -19% 10% Polish Zloty 4.000 Petróleo Brasileiro BOVESPA:PETR4 $4.29 $5.18 -17% 142% Saudi Riyal 3.750 Maurel & Prom ENXTPA:MAU $3.52 $4.21 -16% 3% Brazilian Real 3.139 PJSC LSE:ROSN $5.27 $6.24 -16% 25% Venezuelan Bolivar 9.985 LSE:TLW $2.85 $3.34 -15% 5% Yangarra Resources TSX:YGR $1.87 $2.12 -12% 273% Indian Rupee 65.496 Bottom 10 TORC TSX:TOG $4.96 $5.62 -12% -5% Singapore Dollar 1.405 LSE:OPHR $1.06 $1.19 -11% -9% Malaysian Ringgit 4.448 Origin Energy ASX:ORG $4.99 $5.58 -11% 35% Thai Baht 35.160 Lundin Petroleum OM:LUPE $19.72 $22.05 -11% 20% Hong Kong Dollar 7.768 Note: data includes public, international companies operating in the oil & gas space, limited to companies >$100MM market cap & >$1.00/share Source: CapIQ ABOUT PLS Major Global Indices—% Change Past 30 Days 2.5% InternationalCapital is published every S&P500 Dax Nikkei 225 FTSE 100 three weeks by PLS Inc. 2.0% PLS InternationalCapital covers the energy finance sector of budgets, spending, financial performance and tracking trends 1.5% in available capital from commercial banks and other providers. 1.0% To obtain additional PLS product details, drill www.plsx.com/publications. 0.5% PLS Inc. 0.0% One Riverway, Ste 2500 • Houston, Texas 77056 +1 713-650-1212 (Main) -0.5% +1 713-658-1922 (Facsimile) To obtain additional listing info, contact us -1.0% at +1 713-650-1212 or [email protected] with the listing code. . -1.5% © Copyright 2017 by PLS, Inc. Any means of unauthorized reproduction is 3/2/17 3/4/17 3/6/17 3/8/17

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Find more on the energy finance arena at www.plsx.com To learn more about PLS, call +1 713-650-1212 Volume 09, No. 04 3 EnergyFinance Fundraising soft, but plans Supermajors indicate all systems go Total’s $2.2B FID on Iran depends on US sanctions waivers Two supermajors recently sold into Total became the first western energy company to sign a major deal with Iran the global debt market—Chevron and since the lifting of international sanctions last year. But its $2.2 billion plans to develop BP—in ordinary fundraising that wasn’t South Pars 11, part of the world’s biggest gas field, depends on whether the US renews earmarked for any projects in particular, sanctions waivers, according to CEO Patrick Pouyanné. but were timed to go off Pouyanné said that the IN THIS before a hinted rate hike UBS said Total would break even at ISSUE sanction waivers, whuch were $50/bbl including dividend. by the US Federal Reserve. first introduced by former President Chevron brought in $4.0 billion (PG. 1) Obama, should be renewed before this summer and stay in effect another 18 months. while BP sold $3.6 billion (PG. 5). Other However, the new administration under President Trump has already put Iran than the supermajors, Delek Group on notice for missile testing and has issued sanctions against certain people and (PG. 13) sold $270 million companies connected to the Iranian Revolutionary in eight-year debentures in a January 14, 2015 • Volume 07, No. 01 Guard, causing unease among people wishing to InternatIonalDeals Serving the marketplace with news, analysis and business opportunities public offering within Israel conduct commerce with Iran. To issue sanctions, BP in talks with Rosneft to buy 20% in Siberian field International M&A falls 21% Russian companies blocked by sanctions on other oil & gas deals to $60 billion in 2014 Rosneft is reportedly in talks to sell BP a direct 20% WI in subsidiary Taas- Global upstream deal activity saw an Yuriakh Neftegazodobycha, the license holder of its Srednebotuobinsk oil and gas impressive 30% rise in terms of total deal field in Eastern Siberia. The deal would result in an effective 35.8% stake in the field for value to US$185.0 billion during 2014. and India’s (PG. 10) BP, which is the Russian company’s largest private shareholder with 19.75% the US would need proof that Iran breached the However, this upswing was due entirely Internationalequity. According to unnamed sources cited by Russian Deals daily Kommersant, toMarch skyrocketing acquisition 14 the negotiations could result in activity in the US (up 79% to Current ~20,000 bopd projected up a US$700-800 million deal with closing $98.3 billion) and Canada (up 400% to ~100,000 bopd by 2017. expected in early 2015. 132% to $26.6 billion). Looking just at was the only other sizeable debt sale Rosneft acquired an initial 35.3% WI in Taas-Yuriakh for $444 million during the the international picture, activity was agreement with the western governments—the development phase in March 2012 and increased its stake to 100% WI in October 2013, down 21% in terms of deal value to $60.0 shortly after reaching first oil. At that time the company projected 2014 production billion and 30% in terms of deal count Petrobrasof 1.0 million tonnes (~20,000 bopd), increasingadvances to 5.0 mtpa (~100,000 bopd) by $2.2B(including transactions withoutTotal disclosed 2017. It also assigned the field C1+C2 reserves of 134 million tonnes of liquids (~1.0 values) to 399. this cycle, an $83.1 million debenture Bbbl) plus 5.47 Tcf. Continues On Pg 8 agreement President Trump called “the worst Out of the top 30 international deals, Chinese group offers $100 million for Kazakh oil project not one buyer was a US producer. deal,Continuing 2014’s gets trend of non-traditional consent Chinese oil and gas buyers entering for the Alpek. Major increases in deal value were E&P space into the new year, a consortium led by publicly listed Xinjiang Zhundong seen in Asia (69% to $8.0 billion), the Petroleum Technology Co. plans to acquire the Galaz contract area in central Kazakhstan sale, bringing its YTD bond activity to South Pacific (442% to $11.3 billion), for US$100 million in cash and debt. The oil development is operated by South Korea’s ever negotiated.” and the North Sea/Europe (118% to LG International (40% WI) partnered with London-listed Roxi Petroleum (34.22%) $12.7 billion). However, these increases and Baverstock (23.78%), a company controlled by Roxi board member and top were overwhelmed by a combined $35.0 shareholder Kuat Oraziman. Consortium led by publicly listed billion decrease in activity in Africa The 44,200-acre block in almost $700 million. oilfield service firm Xinjiang Zhundong. (54% to $9.6 billion) and the FSU (72% Kyzylorda province contains to $9.0 billion). Continues On Pg 15 the Northwest Konys project plus exploration upside on the east side of the Karatau fault system. Seventeen wells have been drilled at Galaz since 2008 and Northwest Konys FEATURED DEALS Traders pilot production began in January 2012. Five wells are on extended test producing an aggregate 1,000 bopd and four more are being prepped to begin production testing. THAILAND CONCESSION FOR SALE Under the non-binding heads of terms, the Chinese consortium will acquire JV firm 1-Onshore Concession. Galaz & Co. for $50.4 million cash plus $49.6 million in debt. Continues On Pg 11 PHETCHABUN BASIN 2-Onshore Exploration Assets. PP India’s ONGC may launch open offer Seplat’s Afren takeover bid threatened by Kurdish writedown 8-Production Licenses. Contains 12 Individual Oil Fields. Just days after Nigerian oil firm Seplat Petroleum Development confirmed 20% WORKING INTEREST FOR SALE 4,000 making a preliminary approach to acquire Afren, the target company’s takeover Gross Production: ~4,000 BOPD BOPD ’s $1.4B ’16 earnings reveal bigprospects took YOY a hit when it released a drastically turnaround reduced resource estimate for its 2P Net Reserves: 30 MMBOE Barda Rash oil development (60% WI) in the Kurdistan region of Iraq. CONTACT AGENT FOR MORE INFO for Hindustan shares (PG. 10). PP 6089 Based on reprocessed 3D seismic and its drilling campaign, the report eliminates 190 MMbbl of previously estimated proved plus probable oil SURINAME OFFSHORE BID ROUND reserves and reduces the 2C resource 3-Blocks. ~6,420,000-Acres.(26,000 km2) Glencore reported net income of $1.4 billion in 2016,estimate by 80% to 25048% MMbbl New Bardahigher Rash estimate eliminates SURINAME-GUYANAthan BASIN 2015 2P reserves, cuts 2C by 80% to 250 MMbbl. from 1,243 MMbbl. Huge Prospective Blocks B Water Depths:~50-7,380 Ft. The previous estimate reported in 2012 had been the basis from the London- --- (15-2,250m) based company’s approved development plan. It is now considering strategic WORK PROGRAM BIDDING ROUND BID Except for some small placements— options for the project in light of the update. Afren’s stock fell 30% on the London Proven Petroleum System ROUND due to rising commodity prices and strong trading results.Stock ExchangeThe to close at 27.31commodity pence on January 12, the day the update was Production: trader 16,000 BOPD and released—eliminating the bump experienced when rumors of the takeover bid broke Bid Round is Closing January 30, 2015 CONTACT PETROLEUM MANAGER in mid-December. The news comes one week ahead of the January 19 deadline for BR 5103PP Seplat to make a formal offer for Afren. Continues On Pg 6 Australis Oil & Gas for A$100 million miner reported that net debt fell 40% to $15.5 billion by YE16 from $25.9All Standard Disclaimers &billion Seller Rights Apply. (PG. 19), Diversified Oil & Gas’ £39.7 at the end of 2015, below the lower end of its $16.5-17.5 million (PG. 5) and Valeura’s $11 million billion guidance. sale (PG. 14) and even smaller from Where Glencore is now is strikingly different that where it was in 2015, when Sirius Petroleum (PG. 7), Union Jack, investors sold off shares on concern that the debt load was too high to weather North Sea and InfraStrata (all PG. 5), it the oil-price downturn. A year later, was not a strong period for equity. Glencore’s borrowing has been halved Glencore spent $3.5 billion in 2016, 40% less than the previous year. Just as Libya seemed to settle down, from $30 billion after $10 billion in new fighting erupts (PG. 13). asset sales, cost reductions and rebounding metals prices. “The plan of action we initiated in September 2015 to sensibly bring down our financial leverage and With most of the world’s O&G strengthen our balance sheet is now complete,” billionaire CEO Ivan Glasenberg companies having put their earnings out said of the company’s efforts. and their field crews digging in, this cycle Over the past year, Glencore’s shares have more than doubled due to had a planning feel to it. Former Tullow increasing optimism about US and Chinese economic growth that engendered Oil execs plan to IPO T5 next month confidence in the outlook for miners. In (PG. 6); is finalizing Glencore has available committed recent months, Glasenberg has steered liquidity of $16.7 billion. financing for the $11 billion Glencore to an acquisition strategy, 2 pipeline (PG. entering a $960 million deal with Fleurette Group to boost copper production 14) after its prior plan collapsed in the Democratic Republic of Congo, for instance. The company also led the last fall; Lundin Petroleum’s plans to purchase of 19.5% of Russia’s Rosneft spin off International Petroleum Corp. through a privatization deal with the Glencore reportedly is entering $200MM Mexican fuel retailing JV. are shaping up (PG. 9); and several Russian government for US$10 billion. companies like Eni and Royal Dutch Glencore is also considering paying out dividends if additional “big opportunities” Shell (both PG. 1), TransGlobe (PG. 13), do not arise. On the Q4 conference call, he said, “If we don’t find big opportunities, Noble Energy (PG. 14) and Repsol (PG. we’ll kick out big dividends.” 9) firmed up their spending plans for the The DRC assets include a 31% stake in Mutanda Mining, the world’s biggest year, though now that the Spanish NOC cobalt mine, and a 10.3% stake in cobalt and copper mine operator Katanga is in on the discovery of the biggest US Mining Ltd., which will bring Glencore’s holding to 86.3%. Glencore will also oil find in 30 years—1.2 Bbo in Alaska’s take over $130 million in loans Mutanda owed to Fleurette. North Slope—its plans could change. For general inquiries, email [email protected] Access PLS’ InternationalCapital archive for previous energy finance news InternationalCapital 4 March 16, 2017 Supermajors Traders Chevron sells bonds across seven tranches Continued From Pg 1 Freepoint expands in Asia The offering came ahead of a probable interest rate hike by the US Federal Reserve to meet Chinese demand this month and a week after the company filed its Form 10-K for the year ended Dec. 31, As the “logical next step” of its 2016 in which it reported a $497 million net loss on $114 billion in revenue, compared strategy, Freepoint Commodities is with $4.6 billion in net income on $138 billion in revenue for FY15. It was Chevron’s expanding its Asia-Pacific operations first annual net loss since 1989. to take advantage of opportunities in Chevron has about $6.15B in notes to The Federal Reserve Asian oil markets as well as metals redeem this year. announced a rate increase of and agriculture. 25 bp w on March 15. It is just the third in about 10 years, as the Fed has cautiously pulled away from a strategy of holding rates at zero while the economy was improving. Freepoint partnered with private The markets responded in the past week by driving Treasury yields higher, and Fed equity fund Stone Point Capital in 2011. funds futures signaled odds of more than 80% for March. Asia is the world’s largest oil demand Barclays, Citigroup and Merrill Lynch led the bond syndicate, which included JP region and leader in global demand growth, Morgan, MUFG, Wells Fargo, BNP Paribas, Goldman Sachs, HSBC and SMBC Nikko. so Freepoint management believes its CEO Watson optimistic on cash position— strategic move complements its existing At its annual securities analyst meeting on March 7, Chevron Chairman and CEO oil business in the Americas and Europe. John Watson said his company intends to be cash balanced in 2017 and to grow free cash In North America, the company purchases flow in the years ahead. “We’re finishing projects crude oil streams including Bakken, January 29, 2016 Eagle Ford and Canadian volumes from under construction, which adds revenue and reduces InternatIonal Scout Serving the international upstream industry with information, analysis & prospects for sale Volume 08, No. 02 major and boutique producers. It then Eni’s third West Hub field on stream in Angolan deepwater Who dat? spend. We’re concentrating our new investments on Eni started up the Mpungi oil field offshore Angola in Block 15/06. Mpungi is part of Readers will notice a change in the the West Hub development project, which lies 350 km northwest of Luanda, and its start- mastheads for our international products. up follows that of Sangos field in November 2014 and Cinguvu field in April 2015. With Changing the “Explorer” name to three fields now producing to the N'Goma FPSO, West Hub’s output is projected to grow “Scout” is the first step in bringing our uses its trucks, rail, barges, vessels and to 100,000 bo/d during 1Q16. The field was brought on stream on time and on budget. international report in step with our U.S. short cycle-time, high-return opportunities from our Approved in 2010, West Hub reports, where we have InternationalStart of Mpungi will bringScout West Hub to March 3 taps or will tap Block 15/06’s been publishing Regional 100,000 bo/d during 1Q16. Sangos, Cinguvu, Mpungi, Scouts for three-plus years Mpungi North and Vandumbu fields. They hold a gross 3 Bbbl (24-34° API), all in in plays like the Bakken and Eagle tankage to gather and blend material for Lower-Middle Miocene formations that feature normal pressure and temperature ranges. Ford. The new name is also an effort to advantaged positions such as the Permian Basin,” he Of the oil in place, 850 MMbbl can be recovered via 21 planned wells, all producing dovetail our global E&P report with our to the project FPSO anchored at Sangos field. Future plans include the addition of the Mpungi North and Vandumbu finds after start-up of West Hub’s sister project, East Hub. Mardi Gras offers the promise that Chevron pushes Gorgonthe good times will roll LNGagain. East Hub in turn aims to develop 230 MMbbl at the Cabaca Norte and Cabaca Continues On Pg 6 its global counterparties. South East discoveries, which also lie in Block 15/06. acquisition of Paris-based PetroWire said, noting that 75% of Chevron’s capital budget is Premier expands Falklands potential with Isobel Deep re-drill last April, and PLS plans to integrate Twitter-like abstracts, original content Off the Falkland Islands, ’s Well 12/20-2 re-drill confirmed the and research archives in the perfect PhaseIsobel Deep discovery as2 well as intofound pay in additional FEED. sandstones. Drilled to 3,014 complement to the new (wire.PetroWire. m, the well intersected oil-bearing intervals in a number of reservoir sands between com) and the old (traditional publishing). 2,564-2,861 m. No oil-water contact was detected by the deepened well, and Herein we are also adding new content Premier estimates that it has found gross oil pay of ~300 m. The partners expected to generate cash within the next two years. like page 13, which shows additional permit will plug and abandon the well and combine these results with existing 3D data taken from PetroWire that might Asian offices are in Shanghai, Beijing seismic to better estimate the size of the not be worthy of a story but interesting discovered reservoir. Re-drill extends initial 23-m gross oil column to 300 m. just the same. Continues On Pg 3 Isobel Deep lies in the North Falkland Basin in the southern part of PL 004a, just 30 km south of Premier’s FEATURED DEALS undeveloped, 400 MMbbl Sea Lion field in PL 032. In May 2015, exploration Well & Singapore. 14/20-1 reached 2,526 m in water 400-450 m deep and intersected the top 23 m of an oil-bearing reservoir in the F3 sands. The formation’s oil is similar to Sea Lion’s CARIBBEAN LEASES Europe 4-Key Blocks. hydrocarbons (26-29°API), but the well registered higher-than-expected pressure FOR SALE OR JV DV that resulted in borehole influx. Continues On Pg 10 OFFSHORE GAS PLAY 2014 3-D Seismic On Blocks. CARIBBEAN Gas Infrastructure Nearby. ExxonMobil leads work in hot Guyanese offshore Analogous To Major Fields In Trinidad. Offshore work is on the decline most everywhere in 2016, but Guyana is OPERATED WI AVAILABLE continuing to attract interest because of ExxonMobil’s Liza-1 discovery in the Estimated Recoverable: 15+ TCF Freepoint is also adding a Shanghai- Stabroek Block. The supermajor will drill four wells there this year starting in DV 5350L 1Q16, assisted by more than 6,000 sq km of 3D data recently PGNiG spending $8.4B though 2022 to findcollected by CGG and Fugro. In additionmore to determining Liza’s SOUTHgas AMERICA OPPORTUNITY Massive Acreage Position. size, the campaign will target the separate Ranger prospect—an Upper Jurassic- SHALLOW ONSHORE Lower Cretaceous carbonate build-up 2-D Seismic Defined. EX Drilling program will size up Liza find based refined metals team to respond to with draped Lower Tertiary clastics that Offsets Prolific Basin. in the deepwater Stabroek block. could support up to 20,000 bo/d per well. Emerging Province. Low Cost. Access To Local Markets. EXPLORATION Polskie Górnictwo Naftowe i Gazownictwo SA, otherwiseExxon has been tight-lipped about how muchknown oil Liza-1 found, saying only as PGNiG, OPERATED WI AVAILABLE that the well intersected a 90-m pay column. However, signs indirectly point to a Operatorship To Buyer If Qualified. substantial find. The Guyanese government estimates peg the find at 700 MMbbl-1.5 $15 Oil Breakeven Projected. EX 1033L metals demand in China, which represents Bbbl, and officials have said hydrocarbons worth 12 times Guyana’s entire economy likely lie there. Another clue is that Exxon is reportedly fast-tracking development will spend PLN 34 billion ($8.4 billion) from 2017 toof Liza2022 and is looking at a 60,000 bo/don early-production capital FPSO that would later be More listingsexpenses, at plsx.com/listings replaced by a 150,000-200,000 bo/d offshore unit. Continues On Pg 10 All Standard Disclaimers & Seller Rights Apply. over half of global consumption. with about half going to E&P to help increase its reserves by 35% and bring up Freepoint added 17 employees production by about 41%, the in Singapore and eight in Shanghai in company said in a statement. Yamal contract with Gazprom, current gas supplier, expires in five years. 4Q16 and January 2017. The additions PGNiG, Poland’s largest gas bring the total number of Freepoint company, is trying to reduce the country’s dependence on Russian gas once a employees worldwide to over 350, spread current long-term gas supply with Gazprom runs out in 2022. Poland uses about across 14 cities in six countries. 1.55 Bcf/d of gas. Among its other initiatives over The company said that average annual capex of $1.4 billion would create the past six months was the launch cumulative EBITDA of $8.32 billion during the period, and would boost EBITDA of retail energy supplier Freepoint to $2.27 billion in 2023-2036. It would FY16 capex of about $740MM Energy Solutions and its expansion into also continue to pay out up to 50% of its amounted to half of operating cash flow. marine bunkering services. Freepoint profits in dividends but it expects a delay was founded in 2011 and is owned because the company will recognize net profits of its subsidiaries in the consolidated by private equity funds managed accounts net of any dividend the subsidiaries pay. by Stone Point Capital. PGNiG reported FY16 net profit of PLN 2.35 billion ($590 million) on revenue of PLN 33.2 billion versus PLN 2.13 billion on revenue of PLS 36.4 billion the year before. The company’s FY16 net cash from operating activities of PLN 5.92 billion was down 19% YOY while the company spent PLN 2.97 billion on capex during 2016, off 6% from 2015 spending. The company’s net debt position increased 45% YOY to PLN 523 million. Transactions The company appointed Magdalena Zegarska as new VP of the management Metrics and board, succeeeding Waldemar Wojcik, for a term of office running through YE19. Comparables Zegarska has held various positions within the company since 2013. www.plsx.com/ma Find more on the energy finance arena at www.plsx.com To learn more about PLS, call +1 713-650-1212 Volume 09, No. 04 5EnergyFinance Europe Supermajors ■■ North Sea Energy Inc. placed 4.0 BP can reach a balance point at $35-40/bbl, CFO says million units privately at C$0.05 each to Sells $3.6B in notes, issues five-year guidance gross C$200,000. Each unit consists of BP expects breakeven costs to be $60/bbl this year, but said it would need only one common share and one one-half share $35-$40 a barrel oil to balance its books by 2021. Overall, though, the company purchase warrant entitling the holder to buy said it expects both of its major operating segments to grow operating one common share at C$0.75 each for two cash flows within the existing financial framework, which won’t be years. The company’s primary asset is a 20% altered according to CEO Bob Dudley at the company’s annual guidance stake in Bagpuss, a block located on the gathering. Organic capex will be kept within $15-17 billion a year and the target western margin of the Halibut Host at the band for gearing at 20-30%. eastern extremity of the Inner Moray Firth. CFO Brian Gilvary said the company’s continued cost discipline, growing cash ■■ Union Jack Oil raised nearly £1.4 flow from core businesses and new portfolio additions will “steadily drive down the million ($1.7 million) via a placement cash balance point of the business” to of 1,032,589,694 new ordinary shares $35-$40/bbl. Volume and margin growth Company should stay 20-30% levered for foreseeable future, it said. at 0.135p a share. Proceeds will help throughout BP’s businesses are expected the company increase to increase returns over the next five years, assuming a stable price environment and its stakes in existing portfolio, to a return on average capital employed of over 10% by 2021. licenses in its portfolio. In upstream, seven new projects are expected online this year, one of BP’s largest The placement brings Union Jack’s shares ever for commissioning new projects. It also said nine will start up 2018-2021 that are outstanding to 4,333,063,205 ordinary already under construction. Projects last shares. CEO David Bramhill said that $13-14B upstream cash flow against year and this year will deliver 500,000 $15-17B capex expected through 2021. Union Jack was debt-free and fully funded boe/d by YE17, BP said, and new projects for its current drill program. can bring in 800,000 boe/d of new production by 2020 and have operating cash margins ■■ Diversified Oil & Gas PLC began 35% higher than BP’s average upstream portfolio in 2015. It expects pre-tax cash flow trading on AIM after raising £39.7 of $13-14 billion by 2021, with oil at $55/bbl. million to pay down debt and provide BP expects growth from its downstream marketing businesses, with underlying working capital for its US-based oil and gas earnings in 2021 more than $3.0 billion higher than in 2014 and its manufacturing production business. The company sold 61 business to be $2.5 billion higher. The company said it may see $9-10 billion of pre- million shares at 65p each and on the market tax cash flow by 2021 with returns had an initial capitalization of about £68.6 approaching 20% in 2021. Downstream cash flow could hit $9.0- 10B by 2021. million. Diversified owns onshore oil and The company is also exploring new gas licenses in the US Appalachian Basin. business models that focus on wind, biofuels and other technologies like low- Mirabaud Securities was lead broker. carbon, digital and mobility material businesses. Dudley also told reporters on ■■ InfraStrata plc said it will sell the sidelines of CERAWeek in Houston that BP’s Russian business, namely its up to £750,000 of new ordinary shares 19.75% stake in Rosneft, had not been affected by sanctions. at 0.5p each through broker Allenby Capital Ltd. The company will Raises nearly $3.6B through new debt sal— use proceeds to pay off a loan BP sold about $3.6 billion in notes across four tranches with maturities ranging from from Baron Oil. The company 18 months to 10 years. The latest notes offerings from mid-February follows closely currently has £200,000 drawn behind the company’s November three- Has raised $6.6B in debt since Nov, tranche mix of euro and dollar notes that out of £300,000 available. InfraStrata now has about $55B outstanding. will also use money for working capital approached $3.0 billion and bring BP’s and cover anticipated costs on the total long-term debt outstanding close to $55 billion. Islandmagee storage project. This time around BP sold $500 million principal amount of 2.315% guaranteed notes ■■ The Norwegian government, which due 2020 at 100.807, $1.0 billion of 3.224% notes due 2024 at 99.994, and $850 million owns a 67% stake in Statoil, does not of notes due 2027 at 99.993, as well as $750 million in floating rate notes due August plan to cut its ownership interest, oil and 2018 at 100. The interest on the floater is calculated at three-month Libor plus 35bp. energy minister Terje Soeviknes told the Joint bookrunning managers were Barclays, BNP Paribas, BofA Merrill Lynch, country’s parliament, combating rumors Deutsche Bank, MUFG and NatWest Markets, which RBS renamed its investment of privatization. Industry minister Monica banking division. Maeland told parliament there were no BP also sold £400 million ($487 million) principal amount of 2.03% notes, sterling plans to cut stakes in other major holdings denominated, due 2025 at 100. The company said it would use net proceeds from the such as fertilizer company Yara, aluminum sale of all of the notes for general corporate purposes, including working capital for BP maker Norsk Hydro or the bank, DNB. and subs, and the repayment of their existing borrowings. For general inquiries, email [email protected] Access PLS’ InternationalCapital archive for previous energy finance news InternationalCapital 6 March 16, 2017 Supermajors Europe Shell capex should be steady $25-30B a year Continued From Pg 1 Sirius raises cash, cancels EIG is backing firm making $3.8B purchase of Shell assets— rest of convertible loan Shell will sell $3.8 billion worth of North Sea assets to EIG Partners-backed Chrysaor AIM-listed Sirius Petroleum plc Holdings Ltd. London-based Chrysaor will buy nearly half of Shell’s 2016 North Sea output offered 266,666,666 ordinary shares at and become the largest independent operator in the North Sea after the deal closes. Shell said 0.75p each to gross £2.0 million, which the transaction “shows the clear momentum behind its… divestment program.” it will use for initial deposits on Shell said it will record an key equipment and long lead Chrysaor taking over half of Shell’s accounting gain on the sale of items ahead of the start of its North Sea volumes & hiring 400 workers. its stakes in 10 assets—a mix of older fields, planned drilling program on the new developments and infrastructure—that analysts say may revitalize one of the world’s Ororo field in conjunction with partners oldest offshore basins where production has fallen steadily for about 20 years. Chrysaor COSL Pan Pacific Drilling, Add Energy will take on about 400 current Shell employees. There is optimism that this deal will pave and . the way for others in the North Sea and other regions. Sirius also canceled the rest of a Chyrsaor will pay $3.02 billion initially, up to $600 million contingent on Brent oil convertible loan that had £630,000 undrawn prices achieving certain levels, and as much as $180 million subject to the achievement with family office Calvet International of certain exploration milestones. Harbour Ltd., which may at its discretion deliver any Simon Henry no longer CFO, successor not named yet. Energy, an EIG Global Energy Partners undrawn amount of the loan to the company portfolio company, and other funds and convert any outstanding amounts due managed by EIG will provide Chrysaor Holdings with $1.0 billion in investment to support to it into Sirius ordinary shares. This could the acquisition and provide future growth capital. Chrysaor also will be able to borrow result in Sirius issuing 126 million new from a syndicated reserve based facility of up to $1.5 billion, and from a vendor loan ordinary shares at 0.5p each. The company provided by Shell, which is retaining a decommissioning liability of $1.0 billion, which and Calvet agreed to cancel the loan with will reduce Chrysaor’s future decommissioning-cost obligations. a payment of £500,000, which resulted in exit fits with post-BG strategy— reducing dilution by 59.3 million shares, the company said. Shell’s sale of oil sands upstream assets to Canadian Natural Resources for $7.25 billion is aimed at reducing its post-BG Group acquisition debt and pursuing its gas-centered strategy. It also allows the Anglo-Dutch major to focus on assets with IGas trying to work out a lower breakeven prices. $35MM equity infusion “It takes away some very high-cost production and will help reduce Shell’s UK independent IGas Energy operating costs, which were already among the highest in its group… Oil sands was said that Kerogen Capital proposed a losing money and the sale will help the company focus on projects that have lower $35 million equity investment into the breakeven prices,” Ahmed Ben Salem with Oddo Securities, told Bloomberg. company once its bonds have Shell also announced that it will not proceed with the Prince Rupert LNG plant in been restructured. The private British Columbia, one of the projects it inherited when it took over BG. It will continue placement would transpire at an to work with PetroChina, Korea Gas and Mitsubishi on the Kitimat LNG project. expected price of 4.5p a share. Kerogen would need to approve of the restructuring terms of the debt, consisting Shell Very Optimistic On Future Free Cash Flow of both secured and unsecured notes, as 2016 ~$44 2019-21 ~$60 would the noteholders and shareholders. Capital Free Capital Free IGas said the potential transaction ROACE ROACE may require consent of the takeover panel Emplyed CashFlow (%) Emplyed CashFlow (%) ($bln) ($bln p.a)* ($bln) ($bln p.a)* to the company seeking a dispensation Cash Engines ~65% 2 5 ~65% 15-20 ~10 from Rule 9 owing to the proposed size Growth Priorities ~25% -4 1 ~25% ~5 ~10 of the Kerogen Capital equity investment, which would also be conditional on a Future Opportunities ~5% -1 -6 ~5% ~0 <5 vote of independent shareholders. Organic FCF N/A -3 N/A N/A 20-25 N/A The company had about US$31.8 Organic FCF (excl. w/c) N/A 3 N/A N/A 20-25 N/A million as of the end of February. Divestments N/A 5 N/A N/A ~5 N/A CEO Stephen Bowler said the Total (incl. Kerogen proposal recognized IGas’ Corporate, Excl. w/c) 281 8 3 270-290 20-30 ~10 value including a $230 million carry Source: Royal Dutch Shell Feb. 2 Presentation via PLS docFinder www.plsx.com/finder from its partners.

Find more on the energy finance arena at www.plsx.com To learn more about PLS, call +1 713-650-1212 Volume 09, No. 04 7 EnergyFinance Europe Premier $122.6MM in black amid difficult debt restructure Former Tullow execs plan Premier Oil earned $122.6 million in FY16, a huge turnaround from its FY15 net loss of to take T5 public $1.1 billion, as the company continues to work toward a complicated restructuring of about £2.8 billion ($3.4 billion) of debt. The 2016 results reflected a tax credit of $522 million. London-based T5 Oil & Gas hired The company’s cash flows Irish underwriter Davy Stockbrokers from operations were $431.4 Catcher field cash flows will help bring and British investment bank Hannam down debt leverage ratio to 3x EBITDA. million for the year, 47% off & Partners as advisers in its quest to YOY, while capex of $678.1 million was 31% lower YOY. Premier spent much of 2016 and list its shares on the AIM and Enterprise the beginning months of this year negotiating a complex refinancing deal that, according Securities markets, Dublin daily The to CEO Tony Durrant, “created uncertainty and volatility but is now nearing completion.” Independent reported. Furthermore, the Durrant also said the company posted record production of 71,400 boe/d, up 24% company’s website said it was in the YOY, held costs down and completed the acquisition of E.ON’s UK upstream portfolio. He early stages of “building a publicly listed said the company’s current “strong and growing cash flows” will help it reduce debt and billion-dollar Africa and Middle East E&P “in due course allow us to invest in new projects to deliver value for all our stakeholders.” company.” The Independent said the float on the exchanges would occur in April. Amended restructuring terms— Premier announced amended terms to its restructuring plan on March 1 that extend Will be first new float on the Irish the maturity date of its $245 million in convertible bonds to May 31, 2022, keeping Exchange this year. the same 2.5% interest rate but resetting conversion price at a premium of 20% to the The private company contacted its higher of the volume weighted average price of Premier’s common shares through a shareholders to notify them it would specified period this month, or 62p. Holders will also get warrants to buy an aggregate seek their approval for the offering, the 3% of Premier’s shares outstanding at newspaper reported. Proceeds, shares Premier can convert restructured bonds 42.75p a share. after one year if value meets price target. offered and timing will be determined Also, Premier received a monthly by market conditions. T5 owns 90% of deferral of a test of its financial covenants through the end of March. Its private lenders the Louga exploration block in Senegal. are locking up terms of a proposed refinancing but the amendment to the convertible notes Proceeds from the offering would be used was a key outstanding item needed to finalize the overall agreement. Once the private to work on that asset as well as buy others. lenders lock up the agreement, subsequent deferrals of test covenants won’t be necessary. As the name suggests, T5 was Premier’s debt restructuring calls for a guaranteed $4.0 billion debt facility that established by five former Tullow Oil will push the company’s maturities to 2021 and beyond, as well as its interest rates up. executives. Former Tullow chairman (2000- Lenders, which include over 75 banks, would receive $50 million in equity warrants 2011) and current Providence Resources and have the ability to influence the company’s spending plans. chairman Pat Plunkett is the company’s executive chairman. Exploration director Gerry Sheehan had been an international Premier’s Restructuring Close To Completion 1 Debt type Key amended terms Facilities con rmed exploration manager at Tullow. Board $4.0 Bn Private lenders • Total facilities con rmed Cash & members Matthew O'Donoghue and $3.4 Bn Undrawn ($3.3bn) • Alignment of maturity dates to 31 May 2021 Andrew Windham also held positions •RCF & LC: $2.5bn • Amendment of nancial covenants 1 •Term Loans : $314m • Enhanced economics at Tullow as did founding member 1 •USPP : $380m • A security package Steve McTiernan. Schuldschein: $130m Corporate governance controls Drawn Debt Total Facilities • • (incl cash) Retail bonds (£150m) • Maturity date extended to 31 May 2021 Maturities extended1 • Enhanced economics 4,000 Security package, ranking alongside the Existing • Proposed private debt facilities 3,000 Convertible bonds • Maturity date extended to 31 May 2022 2,000 ($245m) • Interest rate to remain at 2.50% • Conversion price reset 1,000 Equity warrants • 0 +1 713-650-1212 • No cash amendment fee 2017 2018 2019 2020 2021 2022 Complete • Issuer call after 1 year at 140% of conversion price transaction 1. FX as at when facilities entered into services for sellers Outlook Cash and undrawn facilities of $593m Helping clients market non-core • Cash ow positive at forward curve; debt reduction accelerating once Catcher on-stream assets since 1987. • • Targeting Net Debt/EBITDA <3x by end 2018 www.plsx.com/advisory Source: Premier Oil March 9 Presentation via PLS docFinder www.plsx.com/finder

For general inquiries, email [email protected] Access PLS’ InternationalCapital archive for previous energy finance news InternationalCapital 8 March 16, 2017 Europe North Sea investment needed Eni plans to spend €31.6B through 2021 Continued From Pg 1 & private equity noticing The company also said it plans to divest €5.0-7.0 billion in assets primarily through Gross revenue from North Sea the dilution of exploration assets, in line with its “dual exploration” model, which has operations is now in the positive column generated $6.3 billion in cash for the company over the past four years. The model for the first time in five years, and private seeks to monetize an asset’s value through the dilution of the high participating interest equity groups have noticed. Since January, owned in huge exploration discoveries. In FY16, Eni reported spending €9.1 billion the region’s oil and gas industry has on capex in continuing operations, off 15% YOY, while net cash from continuing attracted deals with $4.0 billion led by operations hit €7.67 billion, the PE-backed Chrysaor’s $3.8 billion down one-third from FY15. €1.14B downward swing in earnings purchase of a portion of Royal Dutch to €340MM loss last year. For FY16, Eni reported an Shell’s fields. Reuters reports that the surge adjusted net loss of €340 million, a reversal from the €803 million in net profit it in new activity will inspire more investors reported in FY15. The company attributed the loss to lower operating performance, to put money into the basin. declining results from equity-accounted entities reflecting a weaker oil price Carlyle, Siccar Point, CVC & Neptune scenario and a higher tax rate, which went up 38 points. Net sales of €55.7 billion putting funds into North Sea. were down 23% YOY. Plans to sell up to €7B in exploration The company reported hydrocarbon PE groups Siccar Point, Carlyle assets over next four years. production of 1.76 MMboe/d, about what Group, Neptune and CVC Partners have it did in 2015 despite the shutdown of the company’s important Val d’Agri oil center all bid for or acquired North Sea assets in due to a waste disposal investigation. Average oil realizations were €37.12 per hedged recent months. Mike Tholen, economics barrel and gas was €3.10 per hedged Mcf, director of Oil and Gas UK, told Reuters down 13% and 26% respectively. Likely to sell off rest of stake that the new firms coming in “want good but not now, CEO Descalzi said. CEO Claudio Descalzi said the returns and you get that by investing and company concluded its “radical transformation” in 2016, a restructuring process begun squeezing the rest of production out of your three years earlier. The company now has a record proved reserve replacement ratio assets. Others will take signals from that. and “high-quality projects which will contribute to an expected production growth rate If you see others make good returns it’s of 3% on average in the next four-year period.” He pointed out that Eni was the only embarrassing if you don’t do the same.” major oil company to reduce its leverage 2014-2016, and that the company proposes a Aggregate free cash flow from North €0.80 a share cash dividend for 2016. Sea E&Ps going up by £5B this year. OGUK’s annual business outlook for Eni Adjusts Spending Plan Downward On Projected Cost Savings E&P is expected to stay positive this year Capex plan for the first time since 2012. Higher Brent and better economics are the reason. For Capex allocaon 2017-20 €Bln -8% instance, unit operating costs are about $15.30/bbl, almost half the $29.70 it 34.4* IRR (%) 35 cost three years ago. E&P companies are Other 31.6 Mid-downstream expected to see an aggregate free cash flow 30 Other ≈10 + New energies increase of about £5.0 billion this year and 25 Upstream Producon opmizaon > 20 production will rise for a third-straight year Mandatory 20 -13% to 680-690 MMboe (1.68-1.89 MMbo/d), E&P** owing to projects coming on stream this 15 year that were approved prior to 2014’s E&P Development of new 15-20 10 producon massive oil-price slide. Though it all seems like good news, 5 new capital investments are needed to keep Exploraon 0 the momentum going and offset slowing plan 2016-2019plan 2017-2020 average 2017-20 production from existing and aging fields. OGUK notes there are 14 new fields that CAPEX 2017 VS 2016 -18% 55% UNSANCTIONED IN 2019-20 need FIDs between now and YE18. Tholen said, “Now that prices are a bit more stable, * Excluding JV financing and post SEM applicaon @ constant FX;** E&P post porolio people are generating some cash and we hope to see some of that reinvested. Now is Source: Eni March 1 Presentation via PLS docFinder www.plsx.com/finder the right point in the cycle.” Find more on the energy finance arena at www.plsx.com To learn more about PLS, call +1 713-650-1212 Volume 09, No. 04 9 EnergyFinance Europe Recapitalized Independent Resources renamed Echo Energy Lundin’s IPC spinoff nears; Independent Resources was recapitalized with about £650,000 with an equity buy offer to buy shares in works from Greenberry plc, a Malta-based associate of Continental Investment Partners. Greenberry bought over 1.0 billion of Independent’s ordinary shares at 0.065p each, Lundin Petroleum announced giving it 29.9% of the company. Greenberry also underwrote a three-year secured loan that its planned spin-off company to the company for £1.0 million at 12% p.a., and a 5% commitment fee and equity kicker International Petroleum Corp. has filed for over 1.4 billion warrants good for one a preliminary prospectus with the Alberta share each at 0.12p through March 9, 2022. Ending its Italian operations to avoid Securities Commission in the Canadian any conflict with Sound Energy. Existing shareholders will soon be province from where it offered about £1.5 million of new shares in an open offer at the same price of 0.065p each. plans to become a public Greenberry and Brandon Hill Capital, the company’s largest shareholder, have reporting issuer. IPC plans agreed to a six-month lockup of their shares while the company reshapes itself into to list on the Toronto Stock Exchange Echo Energy plc with a new board. James Parsons is now non-executive chairman, and as well as on Nasdaq Stockholm, and Continental’s Marco Fumagalli was named non-executive director along with Stephen it will soon file a prospectus with James Whyte, all of whom are currently directors of Sound Energy plc. Owain Franks the Swedish Financial Supervisory left the board but existing non-executive director Grayson Nash remained. Authority. The new company’s assets are in Malaysia, France and the Netherlands. Repsol reports more than €1.7B in earnings for FY16 Lundin soliciting shareholder approval Repsol may have just discovered the biggest US onshore oil find in 30 years on for IPC spinoff this month. March 9, but it had earlier good news as well—a FY16 in which it came out €1.736 Lundin also said that an IPC billion ($1.85 billion) in the black compared with a net loss the year before of €1.398 subsidiary will offer to buy up to $100 billion. In FY15, Repsol booked impairments to address the possibility of ongoing million IPC post-spinoff shares from lower oil prices but in FY16, the company reported its highest net income in four years. the new shareholders at C$4.77 a share. Revenue of €28.4 billion was down 15% YOY. All spun off shares would go to existing On an adjusted basis, net income of €1.92 billion Cash flow from operations fell 21% to Lundin shareholders on the basis of one €3.89B, capex was €2B last year. IPC share for every three Lundin shares, was up 8% YOY. Average resulting in about 113.5 million new post- hydrocarbons production was 690,200 boe/d, or 23% higher YOY. Repsol realized an spinoff IPC shares. If made, the offer average of €36.95 per hedged barrel of oil and €2.27 per hedged Mcf of gas last year, would be open for about three weeks from down 11% and 12%, respectively. New discovery in Pikka area has about The Spanish NOC said it expected the spinoff date, and any shares acquired 1.2Bbo, Repsol said. would be canceled. to spend about €3.6 billion on capex this year, compared with last year’s €2.0 billion, but that number may change now that Offer to buy up to $100MM spun off the company found about 1.2 Bbo in Alaska’s North Slope. The company said that shares at C$4.77 each. Statoil will sell. the contingent resources currently identified in the Nanushuk play in Alaska contain Lundin shareholder Statoil said that amount of recoverable light oil. The play is in an area known as Pikka, from it would sell its shares to the offering which Repsol and partner Armstrong Energy anticipate first production of potentially sub since IPC shares are noncore to the 120,000 bo/d in 2021. Norwegian state-controlled company. On the flip side Lundin family investment firm Repsol May Adjust 2017 Capex On New Alaskan Discovery Nemesia Sàrl and Landor Participations 2017 Inc., each significant Lundin shareholders, do not intend to tender into the offer, and Offset the impact of disposals with Start-up of Production ~680 Kboe/d MonArb and full-year contribution from Lapa Nemesia would buy any IPC shares from Statoil not acquired by the offering sub. Upstream Capex €2.7Bn Capital expenditure broadly in line with 2016 IPC’s proposed board and management Refining Margin Indicator $6.4/bbl So far, in 2017 the Avg. Refining Margin Ind. would not tender either. >$7/bbl The offering sub is being financed Group Capex €3.6Bn Downstream and Corporate capex at similiar with a $100 million reserve-based levels as in 2016 lending facility through a syndicate led Efficiency & Synergies €2.1Bn Accelerate our 2018 target to 2017 Upstream by BNP Paribas, Australian and New Opex & Capex efficiencies (€1.2Bn impact) Zealand Banking Group, BMO Capital Downstream FCF ~€2Bn 55% of Repsol’s EBITDA Markets and ScotiaBank Europe. Source: Repsol Feb. 23 Presentation via PLS docFinder www.plsx.com/finder

For general inquiries, email [email protected] Access PLS’ InternationalCapital archive for previous energy finance news InternationalCapital 10 March 16, 2017 Asia Asia not the most fertile ONGC would launch open offer if it buys Hindustan ground for PE deals India’s state-owned Oil and Corp. is mulling the acquisition of Blackstone Group, which had Corp., the country’s third-largest fuel retailer, in a deal worth committed $800 million to support the $6.6 billion that would quench the Indian government’s thirst for an integrated company. activities of Tamarind Energy Ltd. in ONGC would buy the government’s 51.1% stake in Hindustan and then open it up to 2015, never dispatched the funds and the holders of another 26% of the company’s stock via an open offer. Hindustan closed at two parted company last INR 512.70 ($7.75) a share on the Bombay Exchange on March 13. August, according to The India has six major state oil companies: ONGC and Oil India Ltd. Wall Street Journal, which cited people are the E&Ps, Indian Oil Corp., Hindustan and Bharat Petroleum are familiar with the matter. Tamarind, put the refiners, and GAIL is midstream. Different together by former Talisman Energy January 29, 2016 executives in 2014, sought deals across combinations were considered, including InternatIonal Scout Serving the international upstream industry with information, analysis & prospects for sale Volume 08, No. 02 combining Hindustan and Bharat with ONGC, then Eni’s third West Hub field on stream in Angolan deepwater Who dat? Southeast Asia but couldn’t come up with Eni started up the Mpungi oil field offshore Angola in Block 15/06. Mpungi is part of Readers will notice a change in the the West Hub development project, which lies 350 km northwest of Luanda, and its start- mastheads for our international products. up follows that of Sangos field in November 2014 and Cinguvu field in April 2015. With Changing the “Explorer” name to three fields now producing to the N'Goma FPSO, West Hub’s output is projected to grow “Scout” is the first step in bringing our to 100,000 bo/d during 1Q16. The field was brought on stream on time and on budget. international report in step with our U.S. much to interest Blackstone, thus the exit. mixing IOC and OIL to create two big integrated Approved in 2010, West Hub reports, where we have InternationalStart of Mpungi willScout bring West Hub to March 3 taps or will tap Block 15/06’s been publishing Regional 100,000 bo/d during 1Q16. Sangos, Cinguvu, Mpungi, Scouts for three-plus years Mpungi North and Vandumbu fields. They hold a gross 3 Bbbl (24-34° API), all in in plays like the Bakken and Eagle Lower-Middle Miocene formations that feature normal pressure and temperature ranges. Ford. The new name is also an effort to Tamarind CEO Ian Angell now runs companies, but that would decrease competition Of the oil in place, 850 MMbbl can be recovered via 21 planned wells, all producing dovetail our global E&P report with our to the project FPSO anchored at Sangos field. Future plans include the addition of the Mpungi North and Vandumbu finds after start-up of West Hub’s sister project, East Hub. Mardi Gras offers the promise that ONGC moves to developthe good times will rollsmall again. East Hub in turn aims to develop 230 MMbbl at the Cabaca Norte and Cabaca South East discoveries, which also lie in Block 15/06. Continues On Pg 6 acquisition of Paris-based PetroWire the company as Tamarind Management for consumers. ONGC’s purchase of Hindustan last April, and PLS plans to integrate Premier expands Falklands potential with Isobel Deep re-drill Twitter-like abstracts, original content Off the Falkland Islands, Premier Oil’s Well 12/20-2 re-drill confirmed the Arabian Sea field. and research archives in the perfect Isobel Deep discovery as well as found pay in additional sandstones. Drilled to 3,014 complement to the new (wire.PetroWire. m, the well intersected oil-bearing intervals in a number of reservoir sands between com) and the old (traditional publishing). 2,564-2,861 m. No oil-water contact was detected by the deepened well, and Sdn Bhd and has found new funding would require Cabinet approval. Herein we are also adding new content Premier estimates that it has found gross oil pay of ~300 m. The partners like page 13, which shows additional permit will plug and abandon the well and combine these results with existing 3D data taken from PetroWire that might seismic to better estimate the size of the not be worthy of a story but interesting discovered reservoir. Re-drill extends initial 23-m gross oil column to 300 m. just the same. Continues On Pg 3 Isobel Deep lies in the North from an undisclosed source. While the Falkland Basin in the southern part of PL 004a, just 30 km south of Premier’s undeveloped, 400 MMbbl Sea Lion field in PL 032. In May 2015, exploration Well FEATURED DEALS 14/20-1 reached 2,526 m in water 400-450 m deep and intersected the top 23 m of Bharat completes $83.1MM placement for capex CARIBBEAN LEASES an oil-bearing reservoir in the F3 sands. The formation’s oil is similar to Sea Lion’s 4-Key Blocks. hydrocarbons (26-29°API), but the well registered higher-than-expected pressure FOR SALE OR JV DV company did bring potential deals to that resulted in borehole influx. Continues On Pg 10 OFFSHORE GAS PLAY 2014 3-D Seismic On Blocks. CARIBBEAN ExxonMobil leads work in hot Guyanese offshore Gas Infrastructure Nearby. Bharat Petroleum Corp Ltd. raised INR 5.5 billion ($83.1 million)Analogous To Major Fields through In Trinidad. Offshore work is on the decline most everywhere in 2016, but Guyana is OPERATED WI AVAILABLE continuing to attract interest because of ExxonMobil’s Liza-1 discovery in the Estimated Recoverable: 15+ TCF Blackstone, including ones with Stabroek Block. The supermajor will drill four wells there this year starting in DV 5350L 1Q16, assisted by more than 6,000 sq km of 3D data recently collected by CGG and Fugro. In addition to determining Liza’s SOUTH AMERICA OPPORTUNITY a private placement of 7.35% secured non-convertible debentures due Massive 2022. Acreage Position. The size, the campaign will target the separate Ranger prospect—an Upper Jurassic- SHALLOW ONSHORE Lower Cretaceous carbonate build-up 2-D Seismic Defined. EX and Woodside, they were not able to with draped Lower Tertiary clastics that Drilling program will size up Liza find Offsets Prolific Basin. in the deepwater Stabroek block. could support up to 20,000 bo/d per well. Emerging Province. Low Cost. Access To Local Markets. EXPLORATION Exxon has been tight-lipped about how much oil Liza-1 found, saying only company had earlier announced it was seeking to sell up to INR 20 billionOPERATED WI AVAILABLE in debt that the well intersected a 90-m pay column. However, signs indirectly point to a Operatorship To Buyer If Qualified. substantial find. The Guyanese government estimates peg the find at 700 MMbbl-1.5 $15 Oil Breakeven Projected. close any. Now, Tamarind is involved in Bbbl, and officials have said hydrocarbons worth 12 times Guyana’s entire economy EX 1033L likely lie there. Another clue is that Exxon is reportedly fast-tracking development of Liza and is looking at a 60,000 bo/d early-production FPSO that would later be More listings at plsx.com/listings prior to the March 31 end of FY17 in order to fund capex,Continues On Pg 10 including replaced by a 150,000-200,000 bo/d offshore unit. All Standard Disclaimers & Seller Rights Apply. a field in Papua New Guinea with two recouping money already spent. The debentures were listed on the Bombay Australian companies. Stock Exchange and National Stock Exchange of India. The debentures are payable semi-annually. Original investment for $800MM never Earlier this year, Bharat sold $600 million in 10-year dollar-denominated debt to Asian panned out for Blackstone & Tamarind. and European investors through its sub BPRL International Singapore Pte Ltd. The Another giant, KKR & Co., backed company is paying US treasury rate plus 200bp to come in at 4.375% and used proceeds to Mandala Energy Ltd. with a similar goal refinance short-term loans to buy stakes in Rosneft’s Tass-Yuryakh and Vankor oil fields. to find Southeast Asian deals but so far has That bond sale’s book was 3x, enabling Bharat to price the bond at the tightest spread over found just $200 million worth since March US treasuries by any Indian company in a decade, according to data compiled by Bloomberg. 2015. But the WSJ reported that Mandala Traders has a mandate to do large and small deals and “has made good progress.” Vitol moves on Turkish distribution & storage Continued From Pg 1 Private equity that has been so active Assets becoming important to trader— in the revitalization of the US production Mike Loya, president of Vitol’s US trading arm, spoke at the recent CERAWeek in landscape after the worldwide oil price Houston, where the company’s oil-trading operations reside. He said the company is collapse just hasn’t gained the same looking to increase its physical assets—“the days of trading with no assets and just a traction in Asia. Though it’s a given that balance sheet are long gone.” The company owns five refineries outside the US, moving Asian deals are generally less frequent about 6.5 MMbo/d of crude, Loya said. There might be deals ahead in the US, he said, but than those in the US, the conditions smaller ones than in the past. enabling PE groups to thrive in the US Loya also said there Vitol the first to export US crude after the ban was lifted in late 2015. haven’t existed in Asia—global majors would be more US export and NOCs weren’t hemorrhaging due to growth. By mid-February, the US shipped 1.21 MMbo/d of crude, a new record owing debt and decided they could wait rather to the end of the 40-year export ban in late 2015. He said that “a lot” of the Permian than part with assets cheaply. Basin’s 600,000-700,000 bo/d output increase this year will be exported. According to Wood Mackenzie, $5.4 The trader sold its 2.0 MMbbl storage terminal billion in Asian-Pacific O&G deals took January 14, 2015 • Volume 07, No. 01 and gathering pipelines in the Permian last year, an InternatIonalDeals place last year, down 64 % from 2015. In Serving the marketplace with news, analysis and business opportunities

BP in talks with Rosneft to buy 20% in Siberian field International M&A falls 21% asset the company said it no longer needed. When Russian companies blocked by sanctions on other oil & gas deals to $60 billion in 2014 North America, that number was $38.3 Rosneft is reportedly in talks to sell BP a direct 20% WI in subsidiary Taas- Global upstream deal activity saw an Yuriakh Neftegazodobycha, the license holder of its Srednebotuobinsk oil and gas impressive 30% rise in terms of total deal field in Eastern Siberia. The deal would result in an effective 35.8% stake in the field for value to US$185.0 billion during 2014. BP, which is the Russian company’s largest private shareholder with 19.75% However, this upswing was due entirely first built, the assets enabled Vitol to collect key InternationalDealsequity. According to unnamed sources cited by Russian daily Kommersant, to skyrocketingFeb. acquisition 16 billion. Wood Mac’s research director in the negotiations could result in activity in the US (up 79% to Current ~20,000 bopd projected up a US$700-800 million deal with closing $98.3 billion) and Canada (up 400% to ~100,000 bopd by 2017. expected in early 2015. 132% to $26.6 billion). Looking just at Rosneft acquired an initial 35.3% WI in Taas-Yuriakh for $444 million during the the international picture, activity was market data during the Permian’s early development. development phase in March 2012 and increased its stake to 100% WI in October 2013, down 21% in terms of deal value to $60.0 Singapore, Angus Rodger, said that some shortly after reaching first oil. At that time the company projected 2014 production billion and 30% in terms of deal count VTTIof 1.0 million tonnesexpands (~20,000 bopd), increasing to 5.0 mtpainto (~100,000 bopd) Panama, by (including transactions without disclosed 2017. It also assigned the field C1+C2 reserves of 134 million tonnes of liquids (~1.0 values) to 399. Bbbl) plus 5.47 Tcf. Continues On Pg 8 Now, though, it can collect enough data without Out of the top 30 international deals, Chinese group offers $100 million for Kazakh oil project not one buyer was a US producer. PE groups were too early and the “appetite closesContinuing 2014’s trendCroatian of non-traditional Chinese oil and gas terminalbuyers entering the buy. Major increases in deal value were E&P space into the new year, a consortium led by publicly listed Xinjiang Zhundong seen in Asia (69% to $8.0 billion), the Petroleum Technology Co. plans to acquire the Galaz contract area in central Kazakhstan South Pacific (442% to $11.3 billion), for US$100 million in cash and debt. The oil development is operated by South Korea’s owning the terminal. and the North Sea/Europe (118% to LG International (40% WI) partnered with London-listed Roxi Petroleum (34.22%) for distressed asset sales wasn’t there yet.” $12.7 billion). However, these increases and Baverstock (23.78%), a company controlled by Roxi board member and top were overwhelmed by a combined $35.0 shareholder Kuat Oraziman. Consortium led by publicly listed billion decrease in activity in Africa The 44,200-acre block in oilfield service firm Xinjiang Zhundong. (54% to $9.6 billion) and the FSU (72% Kyzylorda province contains to $9.0 billion). Continues On Pg 15 the Northwest Konys project plus exploration upside on the east side of the Karatau fault system. Seventeen wells have been drilled at Galaz since 2008 and Northwest Konys FEATURED DEALS Find more on the energy finance arena at www.plsx.com pilot production began in January 2012. Five wells are on extended test producing an To learn more about PLS, call +1 713-650-1212 aggregate 1,000 bopd and four more are being prepped to begin production testing. THAILAND CONCESSION FOR SALE Under the non-binding heads of terms, the Chinese consortium will acquire JV firm 1-Onshore Concession. Galaz & Co. for $50.4 million cash plus $49.6 million in debt. Continues On Pg 11 PHETCHABUN BASIN 2-Onshore Exploration Assets. PP 8-Production Licenses. Seplat’s Afren takeover bid threatened by Kurdish writedown Contains 12 Individual Oil Fields. Just days after Nigerian oil firm Seplat Petroleum Development confirmed 20% WORKING INTEREST FOR SALE 4,000 making a preliminary approach to acquire Afren, the target company’s takeover Gross Production: ~4,000 BOPD BOPD prospects took a hit when it released a drastically reduced resource estimate for its 2P Net Reserves: 30 MMBOE Barda Rash oil development (60% WI) in the Kurdistan region of Iraq. CONTACT AGENT FOR MORE INFO PP 6089 Based on reprocessed 3D seismic and its drilling campaign, the report eliminates 190 MMbbl of previously estimated proved plus probable oil SURINAME OFFSHORE BID ROUND reserves and reduces the 2C resource 3-Blocks. ~6,420,000-Acres.(26,000 km2) estimate by 80% to 250 MMbbl New Barda Rash estimate eliminates SURINAME-GUYANA BASIN 2P reserves, cuts 2C by 80% to 250 MMbbl. from 1,243 MMbbl. Huge Prospective Blocks B Water Depths:~50-7,380 Ft. The previous estimate reported in 2012 had been the basis from the London- --- (15-2,250m) based company’s approved development plan. It is now considering strategic WORK PROGRAM BIDDING ROUND BID options for the project in light of the update. Afren’s stock fell 30% on the London Proven Petroleum System ROUND Stock Exchange to close at 27.31 pence on January 12, the day the update was Production: 16,000 BOPD released—eliminating the bump experienced when rumors of the takeover bid broke Bid Round is Closing January 30, 2015 CONTACT PETROLEUM MANAGER in mid-December. The news comes one week ahead of the January 19 deadline for BR 5103PP Seplat to make a formal offer for Afren. Continues On Pg 6 All Standard Disclaimers & Seller Rights Apply. Volume 09, No. 04 11 EnergyFinance Asia India’s state-run refiners see improvement in debt levels Independent audit advised Low oil prices aren’t ideal for most but for several of India’s state-controlled for companies, the combination of lower prices and the elimination of the country’s burdensome fuel subsidies has meant stronger balance sheets and the lowest level of Indonesia’s President Joko borrowing in at least eight years. Widodo was advised to appoint an This also means—according to Bonds from India’s state companies independent audit team to look into are best proxy for sovereign debt. Raj Kothari, head of trading at state-owned Pertamina, after internal London’s Jay Capital—that “any new bond sale by them will be lapped up. With disagreements that ended leverage of these quasi-sovereign companies declining, their position to service debt with the firing of CEO has improved significantly,” he said, adding that a lack of bond issues from the state Dwi Soetjipto and deputy energy companies has created a dearth of good quality issuers from India. CEO Ahmad Bambang. A group of Indian Oil Corp.’s total debt of INR 419 billion ($6.2 billion) at the end of last volunteers who supported Jokowi in September was down by more than half from the INR 863 billion reported at the end of FY14, the 2014 presidential election said according to the most recent data from the fighting continues, after it was No current S&P ratings for debt of Oil company filings. Hindustan Petroleum’s erroneously reported that Pertamina’s India, Hindustan or Bharat. total debt fell 26% from the end of FY14 to VP of corporate communications the end of FY16, and Bharat Petroleum’s debt was down 13% during that time. was dismissed. Prime Minister Narendra Modi stopped diesel subsidies in October 2014, completing Pro audit group asserts serious problems a process started by predecessor Manmohan Singh, who ended gasoline subsidies in as conflicting interests fought for power. 2010. Fuel can be sold at market price rather than below cost, giving companies more cash for capital investment. Bharat’s The group asserts that an finance director P. Balasubramanian told Bharat’s $600MM 10-year notes went independent audit is necessary to out at 200bps over Treasuries. Indian news agency Live Mint that the “prevent certain parties from becoming company’s debt to equity ratio and profitability has improved, increasing its standing parasites in the company,” as well as in the market and getting it better financing deals. Hindustan plans to spend $8.0 billion disclose problems Pertamina faces. A over the next five years to grow and upgrade its 60-year-old refineries and Indian Oil member of the group told The Jakarta said it would invest about $6.0 billion over six years to boost capacity. Post that conflicting interests had tried “The refiners may have an advantage in terms of the quantity of money they have to control the company. access to today, and incrementally to pursue projects related to domestic refining or Shareholders need to approve the inorganic opportunities,” said Ashmore Investment Management portfolio manager president's choice for CEO. Ashwini Agarwal. According to people in Indonesia familiar with the matter, Widodo has India’s Major Oil Sellers Bring Leverage To Longtime Lows named Elia Massa Manik as successor to Pertamina’s acting CEO, Yenny Andayani. Manik currently runs the state holding company for the plantations IOC (Indian Oil Corp.), BPCL (Bharat industry PT Perkebunan Nusantara III. Petroleum Corp. Ltd.) and Hindustan A spokeswoman for Pertamina told Petroleum Corp. Ltd.) are all state- Reuters that any announcement from controlled entities. the company itself still has to wait for official confirmation from shareholders. The president was to choose a new CEO from a group that includes people from inside and outside the company, including the three candidates Pertamina’s board of commissioners had identified. Earlier, the company announced it would invest $3.7 billion this year in its upstream business, a 42% increase from last year's $2.6 billion and in line with its target to raise output to 334,000 boe/d, up 7%. Source: Economic Times

For general inquiries, e-mail [email protected] Access PLS’ InternationalCapital archive for previous energy finance news InternationalCapital 12 March 16, 2017 Middle East & North Africa ■■ Rosneft and its oil trading arm will supply a $3.0 billion loan to Iraqi Saudi king’s Asian journey securing bilateral investments Kurdistan that will be repaid with Japan most lucrative, Softbank & PIF in $100B fund future oil supply, the regions’ Saudi Arabia’s King Salman is conducting a month-long tour of Asia as his natural resource minister Ashti country looks to diversify its economy to become less dependent on oil while also Hawrami told Reuters. Rosneft securing the country’s position as Asia’s dominant oil supplier. The king, traveling Trading’s pre-financed crude with an entourage of almost 1,500 people and 506 tons of luggage, has approved a oil purchase and a sales contract for $7.0 billion investment in Petronas’ refinery/petrochem and his advisers discussed Kurdish oil runs through YE19, though investment with Japan’s Mizuho Bank focused on attracting Japanese the company did not disclose the sum. companies to Saudi Arabia. Indonesia hopeful Saudis will invest Hawrami said the loan will strengthen With 36% market share, up to $25B in Pertamina & others. Kurdistan’s fiscal situation, allowing it Saudi Arabia is Japan’s biggest provider of to pay out with more regularity to the oil, and Japan was the world’s fourth-largest oil consumer after the US, China and India international oil companies working in in 2016, according to the IEA. Aside from paying for the oil, Japan can benefit Saudi Kurdistan and to invest some money in Arabia in its diversification efforts.Softbank agreed to launch a $100 billion investment expanding its oil infrastructure. fund in partnership with Saudi Arabia’s Public Investment Fund, which is contributing ■■ Iraqi Kurdistan-focused Range $45 billion. The fund will launch in a few weeks, according to the . The Energy Resources received secured Saudis are also planning to $30-50 billion renewable energy program, including nuclear, convertible loans totaling $1.5 and view Japan as an attractive partner in this pursuit—primarily for technology. million from Gulf LNG America and The tour also came through China, Harrington Opportunities Fund, the King accompanied by nearly 1,500 with which Saudi Arabia has 15 preliminary people, including ministers & princes. first advances under a loan facility with agreements ranging from house-building both major shareholders. The loans are in Saudi Arabia to water projects and oil storage. Saudi Arabia was recently eclipsed by secured by $1.3 million in convertible Russia as China’s top oil supplier, and talks there are expected to discuss exports. promissory notes for Gulf and a $160,000 Discussions will also focus on support for the upcoming public offering of 5% of Saudi note for Harrington as well as all of Aramco next year, expected to be the world’s largest IPO. Banks with close ties to China are Range’s property. The company will use among the advisers on the deal. For Japan, though, securing an Aramco listing for the Tokyo part of the proceeds for its project in the Stock Exchange, the world’s third biggest after NYSE and Nasdaq, would be another feather Khalakan Block. in Prime Minister Shinzo Abe’s cap. ■■ Serinus Energy Inc. closed a sale of 72 million common shares at Aramco invests $7B in Malaysia’s RAPID project ahead of IPO C$0.35 each to gross $25.2 million. will invest $7.0 billion in Malaysian state-run company Petronas’ The sale included a block of $27 billion Refinery and Petrochemical Integrated Development Project (RAPID) located over 39.9 million shares to at Pengerang in the southern Malaysian state of Johor. The deal strengthens Aramco’s major shareholder Kulczyk downstream segment ahead of a planned IPO next year of up to 5% of the company as Investments, bringing its total stake it strengthens its business in Asia, its largest market. The investment is part in Serinus to 52.18%. Proceeds will of Aramco’s strategy to invest in downstream ventures to secure demand for fund development of the Moftinu Gas its oil as it battles for global market share with other producers, including Plant and pre-work for the 2018 drilling North American shale companies. “Malaysia offers tremendous growth opportunities program in the Satu Mare Concession and today’s agreement further strengthens Saudi Aramco’s position as the leading in Romania, and production enhancement supplier of petroleum feedstock to in the Sabria block in Tunisia, and for Malaysia and Southeast Asia,” Aramco Deal signed during first Saudi state visit to Malaysia in over a decade. general corporate purposes. GMP First CEO Amin Nasser said. Energy brokered the sale. Aramco will acquire a 50% stake in RAPID’s refinery and cracker project, according to Petronas CEO Wan Zulkiflee Wan Ariffin. The project will include a 300,000 bbl/d refinery, scheduled for start-up in 1Q19, which will be able to produce fuels that realize Euro 5 emissions standards and provide feedstock for a 3.5 million tons/year petrochemical facility connected to the refinery, according to a joint statement. The equity stake gives a needed boost to Petronas, which has steeply curbed spending due to low oil prices and plans to cut a further $11.27 billion over the next four years. A simpler way The RAPID project was first announced in 2011 and originally scheduled for start-up last to track global year. In January, Aramco reportedly pulled out of a potential partnership with Petronas O&G activity over RAPID because of concerns about returns from the project, according to Reuters. wire.plsx.com

Find more on the energy finance arena at www.plsx.com To learn more about PLS, call +1 713-650-1212 Volume 09, No. 04 13 EnergyFinance Middle East & North Africa TransGlobe plans $40.2MM spending in Egypt Libyan conflicts re-escalate TransGlobe Energy Resources plans both a $35.2 million firm and $21.1 million & key ports once again shut contingent 2017 capex, totaling $56.4 million, which includes $40.2 million for its core operations in Egypt and $16.8 million for Canada. Of the firm $25.8 million Libya’s National Oil Corp. said Egypt program, 56% is allocated to exploration and the remaining 44% to that the country’s primary oil shipping development. The exploration assets Ras Lanuf and Es-Sider have program includes drilling eight been shut down following the March Majority Of Capex Headed new wells (six in the Eastern Desert 3 seizure of those facilities by Islamic to Eastern Desert and two Boraq wells) and a 3D seismic militants led by the Benghazi Defense Firm program at NW Sitra in the Western Firm Brigades. Export terminal Es-Sider and & Contingent Desert. The development program refinery/export complex Ras Lanuf are calls for one development well in West 2017 Capital $MM two key resources for the production Bakr K-South field and development/ Canada $9.4 $16.2 and movement of oil. The country’s civil maintenance projects at West Gharib, war re-escalated and threatens recent Egypt $25.8 $40.2 West Bakr and NW Gharib. progress in recovering oil output. News Total $35.2 $56.4 reports say a counterattack or full-blown TransGlobe has 100% working interest Wells war in the primary oil producing areas in seven concessions in Egypt. Canada 4 8 could occur at any time. The $14.4 million Egyptian Egypt 9 18 Force majeure possible due to new contingent capex is heavily weighted Total 13 26 fighting, said NOC’s Jadallah Al-Okli. toward development, with $12.2 million Source: TransGlobe March 08 Presentation (86%) allocated to nine additional wells The BDB attacks have swung the via PLS docFinder www.plsx.com/finder focused in NW Gharib to appraise/ balance in the country’s civil war away develop the NW Gharib discoveries and to increase West Bakr production. The budget from the Libyan National Army headed by is contingent upon timing of cargo/inventory sales, oil prices and Q1 drilling results. Khalifa Haftar. The eastern Libyan LNA In a separate announcement, TransGlobe’s subsidiary TransGlobe Petroleum had taken Es-Sider and Ras Lanuf last International and Energy Trading, domiciled in Switzerland, signed a September, along with terminals Brega $75 million crude oil prepayment agreement, the initial advance of which will be used and Zueitina, and had in recent months to refinance the 6.0% convertible debentures of the company maturing on March 31. created conditions that had allowed for the increased production and movement of crude oil for export, raising some Delek Group ups bond offering 120% to $270 million critically needed cash for the country. The Delek Group sold ILS1.1 billion ($270 million) principal amount of 4.3% The four facilities export oil from Libya’s debentures due 2025 through a group of 11 Israeli underwriters. The offering, an Sirte basin, where about two-thirds of expansion of its B31 series of notes, was upsized from 500 million shekels because Libyan oil comes from. of high demand. Delek sought tenders from classified investors wishing to make a prior commitment. Libyan forces loyal to UN government The Feb. 21 sale brings Recently approved for $1.75B loan with subs related to Leviathan. seized militia HQ; will it help? Delek’s total senior bonds and Shipping sources cited by Petroleum notes outstanding to more than ILS12.9 billion ($3.5 billion). In addition, the company Economist said the first cancellation has over ILS4.5 billion outstanding in bank loans, and that number is about to get would affect loadings from March 7, when higher due to its new $1.75 billion loan agreement, together with subsidiaries Delek a tanker was scheduled to load 630,000 Drilling and Avner Oil Exploration, to finance the development of the Leviathan bo/d from Es-Sider. Production had hit natural gas field. Has just over $3.5B outstanding in Delek and companies control 700,000 bo/d in February but had fallen senior bonds & notes. back to 650,000 bo/d on the early news more than 45% of Leviathan. Operator of the escalation, and will probably drop Noble Energy, owns 39.7%. Israeli news agency Ha’aretz reported that the loans to further. The Waha partnership between Delek are the largest financing ever committed to an Israeli business project in the NOC, ConocoPhillips, Marathon development stage. January 29, 2016 Oil and Hess, the largest JV in the Sirte The company is also in a definitive agreement InternatIonal Scout Serving the international upstream industry with information, analysis & prospects for sale Volume 08, No. 02 Eni’s third West Hub field on stream in Angolan deepwater Who dat? to buy 80.12% of Ithaca Energy. for about $510 Eni started up the Mpungi oil field offshore Angola in Block 15/06. Mpungi is part of Readers will notice a change in the Basin, scaled back production nearly the West Hub development project, which lies 350 km northwest of Luanda, and its start- mastheads for our international products. up follows that of Sangos field in November 2014 and Cinguvu field in April 2015. With Changing the “Explorer” name to three fields now producing to the N'Goma FPSO, West Hub’s output is projected to grow “Scout” is the first step in bringing our to 100,000 bo/d during 1Q16. The field was brought on stream on time and on budget. international report in step with our U.S. million in cash, paying $1.50 a share. The Feb. 6 Approved in 2010, West Hub reports, where we have Internationaltaps or will tap Block 15/06’s Start of Mpungi willScout bring West Hub to been March publishing Regional 3 50% to 40,000 bo/d as a precaution, 100,000 bo/d during 1Q16. Sangos, Cinguvu, Mpungi, Scouts for three-plus years Mpungi North and Vandumbu fields. They hold a gross 3 Bbbl (24-34° API), all in in plays like the Bakken and Eagle Lower-Middle Miocene formations that feature normal pressure and temperature ranges. Ford. The new name is also an effort to agreement calls for the tender offer for Ithaca Of the oil in place, 850 MMbbl can be recovered via 21 planned wells, all producing dovetail our global E&P report with our to the project FPSO anchored at Sangos field. Future plans include the addition of the but Wintershall is keeping current Mpungi North and Vandumbu finds after start-up of West Hub’s sister project, East Hub. Mardi Gras offers the promise that the good times will roll again. Ithaca East Hub in turn aimsready to develop 230 MMbbl atto the Cabaca double Norte and Cabaca Stella South East discoveries, which also lie in Block 15/06. Continues On Pg 6 acquisition of Paris-based PetroWire shares to stay open for at least 35 days after Premier expands Falklands potential with Isobel Deep re-drill last April, and PLS plans to integrate Twitter-like abstracts, original content Off the Falkland Islands, Premier Oil’s Well 12/20-2 re-drill confirmed the production of 35,000 bo/d for now. and research archives in the perfect volumesIsobel Deep discovery as well as foundthrough pay in additional sandstones. Drilled new to 3,014 FPU. complement to the new (wire.PetroWire. m, the well intersected oil-bearing intervals in a number of reservoir sands between com) and the old (traditional publishing). 2,564-2,861 m. No oil-water contact was detected by the deepened well, and Herein we are also adding new content commencement of the offer. Premier estimates that it has found gross oil pay of ~300 m. The partners like page 13, which shows additional permit will plug and abandon the well and combine these results with existing 3D data taken from PetroWire that might seismic to better estimate the size of the not be worthy of a story but interesting discovered reservoir. Re-drill extends initial 23-m gross oil column to 300 m. just the same. Continues On Pg 3 Isobel Deep lies in the North Falkland Basin in the southern part of PL 004a, just 30 km south of Premier’s undeveloped, 400 MMbbl Sea Lion field in PL 032. In May 2015, exploration Well FEATURED DEALS For general inquiries, email [email protected] Access PLS’ InternationalCapital archive for14/20-1 reached previous 2,526 m in water 400-450 m deep andenergy intersected the top 23 m of finance news an oil-bearing reservoir in the F3 sands. The formation’s oil is similar to Sea Lion’s CARIBBEAN LEASES 4-Key Blocks. hydrocarbons (26-29°API), but the well registered higher-than-expected pressure FOR SALE OR JV DV that resulted in borehole influx. Continues On Pg 10 OFFSHORE GAS PLAY 2014 3-D Seismic On Blocks. CARIBBEAN Gas Infrastructure Nearby. ExxonMobil leads work in hot Guyanese offshore Analogous To Major Fields In Trinidad. Offshore work is on the decline most everywhere in 2016, but Guyana is OPERATED WI AVAILABLE continuing to attract interest because of ExxonMobil’s Liza-1 discovery in the Estimated Recoverable: 15+ TCF Stabroek Block. The supermajor will drill four wells there this year starting in DV 5350L 1Q16, assisted by more than 6,000 sq km of 3D data recently collected by CGG and Fugro. In addition to determining Liza’s SOUTH AMERICA OPPORTUNITY Massive Acreage Position. size, the campaign will target the separate Ranger prospect—an Upper Jurassic- SHALLOW ONSHORE Lower Cretaceous carbonate build-up 2-D Seismic Defined. EX with draped Lower Tertiary clastics that Drilling program will size up Liza find Offsets Prolific Basin. in the deepwater Stabroek block. could support up to 20,000 bo/d per well. Emerging Province. Low Cost. Access To Local Markets. EXPLORATION Exxon has been tight-lipped about how much oil Liza-1 found, saying only OPERATED WI AVAILABLE that the well intersected a 90-m pay column. However, signs indirectly point to a Operatorship To Buyer If Qualified. substantial find. The Guyanese government estimates peg the find at 700 MMbbl-1.5 $15 Oil Breakeven Projected. Bbbl, and officials have said hydrocarbons worth 12 times Guyana’s entire economy EX 1033L likely lie there. Another clue is that Exxon is reportedly fast-tracking development of Liza and is looking at a 60,000 bo/d early-production FPSO that would later be More listings at plsx.com/listings replaced by a 150,000-200,000 bo/d offshore unit. Continues On Pg 10 All Standard Disclaimers & Seller Rights Apply. InternationalCapital 14 March 16, 2017 Middle East & North Africa Russia & FSU Noble spending $550MM in eastern Mediterranean this year Gazprom to be finalizing Noble Energy said its 2017 capex range of $2.3-2.6 billion includes a $550 funding for Nord Stream million allocation in the eastern Mediterranean. The funds will be used for the initial Gazprom said it will announce development of the Leviathan gas project including the drilling one production well, a financing package for its $11 billion long-lead investment items, and the ramp-up of construction. Nord Stream 2 gas pipeline by the end of Noble owns 39.7% of Leviathan and is operator, while Delek Drilling March. Original financing plans and Avner Oil Exploration, with Engie, OMV, Wintershall, subsidiaries of Israel’s Delek Group, Mediterranean spending of $550MM going mainly to Leviathan. and Royal Dutch Shell each holds 22.7% and Ratio Oil holds were sidelined after Poland 15%. The group approved the $3.75 billion final investment decision for phase one objected to the pipeline. Other countries in last month. The development plan approved by the Israeli government last year calls later joined Poland citing for completion in less than three years with gas available to Israel by the end of 2019. the line would increase the EU’s reliance Noble’s share of the costs of phase one is about $1.5 billion, which it plans to fund from on Gazprom, a situation the EU has been operating cash flows generated by the now-flowing Tamar gas field, as well as other eastern very much trying to mitigate. Mediterranean proceeds. Regional portfolio proceeds received to-date total about $575 million, Noble reported. It would also secure access to a credit facility, if needed. Noble Funding package collapsed last fall expects Leviathan’s first-year operating cash flow to be at least $650 million net to its stake. after Poland objected to pipeline. Motiva breakup plans finalized by Aramco & Shell Gazprom’s vice chairman Alexander Saudi Aramco and Shell finalized plans to breakup and transfer the assets, liabilities Medvedev told the Financial Times that and businesses of Motiva Enterprises, a JV between subsidiaries Saudi Refining European companies are interested in (SRI) and SOPC Holdings East, by Q2. The move complements the global downstream contributing to the pipeline’s construction strategies of both companies, as Aramco focuses on securing crude demand from its top and that it would cooperate with partners market in Asia and Shell expands its downstream portfolio following its BG Group on financing, though the company was takeover last year. fully able to carry the whole cost by itself. SRI will assume full Saudi Aramco will pay $2.2B to Shell British financial publication Global as part of the final deal. ownership of the Motiva Capital said Gazprom is on track to issue Enterprises LLC name and legal entity, including the Port Arthur, Texas refinery, and 24 its first global US dollar-denominated distribution terminals. Motiva will have the right to exclusively sell Shell-branded gasoline financing for the first time in more than and diesel in Georgia, North Carolina, South Carolina, Virginia, Maryland and Washington, three years. The company has meeting with DC, as well as in the eastern half of Texas and the majority of Florida. investors in New York and Los Angeles. Shell will assume ownership of the Norco and Convent refineries in Louisiana, 11 Settling EU antitrust battle— distribution terminals and Shell-branded markets in Alabama, Mississippi, Tennessee, In another matter that should take Louisiana, part of the Florida panhandle and the US northeast. These assets will be some of the pressure off Europe’s biggest fully integrated with Shell’s downstream business in North America. gas provider, the company has finally agreed to a set of commitments that would Valeura raises $11 million to fund Turkish project effectively settle the investigation by Valeura Energy completed a private placement of 14.6 million subscription notes the EU antitrust watchdog into whether at $0.75 each to raise $11 million. The TSX-traded company had originally planned Gazprom broke antitrust rules with its to place 10 million receipts at the same price to raise $7.5 million but the placement huge European market share, and in some was increased due to higher demand. The receipts became Valeura common shares countries an outright monopoly. on a one-for-one basis on Feb. 24 when the company closed the acquisition of its The settlement, announced by EU increased stake in Thrace Basin Natural Gas (Turkiye), doubling its stake to 81.5% Competition Commissioner Magrethe and becoming operator. Valeura has 58.5 Vestager on March 13, includes more million shares outstanding. Equity raise will enable ramp-up of contractual freedom for countries doing shallow gas drilling on TBNG lands. The deal positions Valeura to spud the business with Gazprom, the removal of first 4,000-m exploration well in Q1 under the Banarli farm-in, funded by Statoil. After restrictions on customers re-selling gas closing adjustments the purchase price came to $20.9 million, including $3.1 million across borders, and ensuring that gas held in escrow pending a final reconciliation of the closing statement of adjustments. prices are tied to competitive benchmarks. Prior to the deal, Valeura held 310,000 net acres in Turkey. Gazprom also will not be able to take In addition to the offering proceeds, Valeura funded the purchase through prior advantage of infrastructure obtained payments of $18 million received from Statoil from the aforementioned sale of from customers by having leveraged its Valeura’s 40% interest in the deep formations of some of the JV acreage. market position.

Find more on the energy finance arena at www.plsx.com To learn more about PLS, call +1 713-650-1212 Volume 09, No. 04 15 EnergyFinance Africa Octant sells $10MM in debentures to buy African assets Nigerian watchdog claims Octant Energy Corp. agreed to a term sheet with Rosseau Asset Management new facts in OPL 245 deal under which it would sell $10 million in 8% convertible debentures to finance the company’s acquisition of assets in Kenya and Tanzania. The debentures would convert ’s Economic and Financial into common shares at $0.075 each for up to four years following the closing of the Crimes Commission has new evidence first tranche. against Royal Dutch Shell and Eni, senior The financing will be Buying assets held by subs of Afren, prosecutor Jonson Ojogbane told Reuters, now in administration. issued in three tranches, the and the agency filed new first of which would be for $1.0 million. The second and third tranches for $4.5 million corruption charges against each will be used to complete the acquisition of the Tanga block offshore Tanzania and the two companies and to acquire the Kenyan assets, Block L17/L18 in the Lamu Basin and a block in the others related to the $1.3 billion purchase Mandera-Lugh Basin. of the prospecting license OPL 245 block The company told investors that it is progressing toward satisfying conditions to in 2011. Eni sad it had not been notified acquire from subsidiaries of Afren Plc, which it expects to do by April 30. of any new charges and reaffirmed that it acted correctly in the acquisition of the license. Shell did not immediately respond Kosmos’ FY16 $175MM capex down two-thirds YOY to requests for comment. Kosmos Energy, which focuses primarily on , Mauritania and Senegal, set A Nigerian court ordered the seizure a 2017 capex budget of $175 million, which is down from the company’s $538 million of the assets and transferred the operations in capital expenditures made last year. The company will spend about $75 million in to the federal government in January. Ghana, excluding Jubilee Turret remediation costs which are expected to be recovered A request by Shell and Eni to lift the from insurance. It will also spend about $100 million for exploration, including seismic temporary seizure which was supposed to and new ventures costs. The company said that Cash flow enhanced by participation be decided by March 13 was pushed back in TEN, which started up last Sept. to March 17. The filing alleges that the this year it expects to take companies and other parties conspired to one-time costs of about $200 million related to the rig stacking, subsidy costs and commit a felony and violated corruption costs related to the cancellation of the previous Atwood Achiever extension, which it laws by paying $801 million to Nigerian expects would be offset by the proceeds of a farmout deal with BP involving assets in officials for OPL 245 in 2011. Mauritania and Senegal. Under the agreement, BP bought controlling stakes in Kosmos’ four Mauritania licenses and a minority interest in the company’s Senegal unit for Australia & Oceania $916 million, which includes $162 million in cash upfront, a $221 million exploration ■■ 88 Energy Ltd. placed 459,459,460 and appraisal carry and up to $533 million in a development carry. common shares privately at A$0.037 each to gross A$17 million. The placement was Farm-Out to BP Huge Benefit To Kosmos’ Balance Sheet oversubscribed. Funds raised will be used 2017 Capex decreasing >75% from 2015 to strengthen 88’s balance sheet ahead 1 2 2017E Cash Sources and Uses of the upcoming drilling of Icewine#2, – 2017E Capex budget of $175 million which is scheduled to spud in early Q2. The company expects proceeds to cover Substanal free cash flow generaon any unexpected costs arising from the – ~$250 million at $50/bbl drilling of the well, and lease payments and ongoing exploration activities. The sold shares bring the company’s 2012015-2017E5-2017E CapeCapex outstanding to more than 4.63 billion. ■■ ExxonMobil completed its $2.45 billion takeover of InterOil. Under the terms of the transaction, Exxon acquired all of the outstanding common shares of InterOil, and InterOil shareholders received for each of their shares 0.5459 of an Exxon common share and a contingent resource payment, currently in escrow but (1)Assumes 10 Ghana li ings net to Kosmos to be released after certification of the Elk- (2)Net of farm-out proceeds Antelope resource. InterOil shares were Source: Kosmos Energy Jan. 3 Presentation via PLS docFinder www.plsx.com/finder delisted from the NYSE. For general inquiries, email [email protected] Access PLS’ InternationalCapital archive for previous energy finance news InternationalCapital 16 March 16, 2017

CENTRAL AFRICA EAST AFRICA MIDDLE EAST EQUATORIAL GUINEA FARMOUT MADAGASCAR FARMOUT ISRAEL OPPORTUNITY ~322,473-Acres. (1,305 Km2) >7,000km2 (1,729,737-Ac). 3,500-Metres. 1-Block. OUTER BASIN DV MORONDAVA BASIN LEVANT BASIN EX Mid Miocene Objectives. One Prospect Is Confirmed As Largest -- DV PALMYRA RIFT TREND 2D & 3D Seismic Data Available SEEKING -- UnDrilled Location In Basin. Large Undrilled Leads. SEEKING JV PARTNERS JV >2,000 km Existing 2D Seismic, HEAVY UP 51% CORPORATE INVESTMENT FARMOUT Reserves: >200 MMBO & 700 BCF 100% OPERATED WI AVAILABLE OIL P50 Potential Resources: >60 MMBO --From Largest Miocene Objective. Mid Case Reserves: >420 MMBO CONTACT AGENT FOR MORE INFO CALL AGENT FOR ADDITIONAL INFO (OR > 3.4 TCF If Gas) EX 1762FO DV 5015FO CONTACT AGENT FOR MORE INFO DV 4691FO OFFSHORE OMAN FARMOUT BUYER! NO 1-Block. 16,900 sq km. OFFSHORE GUINEA FARMOUT COMMISSIONS 1-Block. 244,881-Acres. (991 km2) EAST AFRICA FARMOUT ARABIAN SEA DV OFFSHORE - STACKED PAYS DV 1-CBM Project. Multiple Identified Prospects. RIO MUNI BASIN TETE PROVINCE - MOZAMBIQUE DV Water Depth: 10-1,500m OFFSHORE Santonian-Turonian Sands. 16,404 Ft. STACKED LOWER ZAMBEZI BASIN SEEKING JV PARTNER 3D Seismic Data Available. PAYS Early Stage Of CBM Project. Potential Mean Resources: >150MMBO SEEKING JV PARTNER Permo-Triassic Coals. 250-1,000m. CBM CONTACT AGENT FOR MORE INFO Mean Prospective Resources: 542 MMBO SEEKING JV PARTNERS TO FULLY-- DV 1786FO DHC: $75,000,000 - $85,000,000 -FUND DEVELOPMENT PROGRAMME. DV 5085FO CALL Potential >12 TCF TURKEY PROPERTY PLS FOR CONTACT AGENT FOR STATUS UPDATE INFO >9,000-Acres. 66-Producing Wells. OPPORTUNITY DV 2792FO SE ONSHORE TURKEY PP 1-Licence. 1,120km2. One Producing Field. 10 Year License. SOUTH GABON BASIN DV EAST AFRICA OPPORTUNITY 53 D&M Approved PUD Drilling Locations. 2,750 Multiple Well-Imaged Prospects. 2-Licences. 41,000 sq km. 20% NonOperated WI For Sale BOPD Stacked Lower Cretaceous Targets. ONSHORE SOMALILAND EX Current Production: 2,750-3,100 BOPD 3D Seismic Data Available. OFFSHORE Underexplored Acreage. Mesozoic Rifts. CONTACT AGENT FOR MORE INFO Production Sharing Contract. High Impact Exploration Wells In 2018/19. PP 1043FO 40% EQUITY AVAILABLE FOR FARMOUT Similarities To Yemeni Rift Basins. FARMOUT Comb. Resource Potential: 1,000 MMBO SEEKING JV PARTNER NORTH AFRICA CONTACT AGENT FOR MORE INFO CONTACT AGENT FOR MORE INFO DV 1728FO EX 2589FO EGYPT COUNTRY ACREAGE RELINQUISHED BLOCKS & COU SAO TOME AND PRINCIPE PROSPECT FORMER GENERAL INFORMATION COUNTRY 2-Blocks. >8,000km2 ACREAGE AVAILABLE FROM STATE ACREAGE OFFSHORE PRINCIPE - EEZ DV CENTRAL ASIA OPPORTUNITY OPERATED AND NONOP BLOCKS Thirteen Identified Prospects. Multiple Licences Covering 3,000km2. COU 6906L Water Depth: 2500-3000m ONSHORE CENTRAL ASIA PP 2D Seismic Data Available. OFFSHORE DRILL READY PROSPECTS MOROCCO OPPORTUNITY SEEKING JV PARTNERS Mesozoic & Cenozoic Stratigraphy. 250 1-Licence. Production Sharing Contracts. SEEKING JV PARTNER BOED OFFSHORE EX CONTACT AGENT FOR MORE INFO Existing Production: 250 BOED HIGH IMPACT EXPLORATION WELL DV 8885FO Comb. Prospective Rsrcs: 550 MMBOE OffSet Plugged & Abandoned Well. CONTACT AGENT FOR MORE INFO Total Depth: 2,825m PERMITS EAST AFRICA PP 1191FO SEEKING JV PARTNER Prospective Resources: 400 MMBOE DEALS FOR ETHIOPIA OPPORTUNITY MIDDLE EAST CONTACT LICENCE OWNER FOR INFO SALE 1-Block. >4,900,000-Acres. >20,200km2 EX 1977 NORTH EAST ETHIOPIA DV IRAQ PROPERTY One Identifed Prospect. 1-Production Sharing Contract. 131 km2. TUNISIA PROJECT Petroleum Production Sharing Agreement SEEKING KURDISTAN REGION 1-Permit. 556,481-Acres. (2,252km2) 2D Seismic Data Available. JV Light Sweet Crude With No Water. PP GHADAMES BASIN SEEKING JV PARTER 2 Development Wells Identified. One Discovery. DV Prospective Resources: 800 MMBOE 3D Seismic Data Available. 8 Identified Leads: Silurian Sandstone CONTACT AGENT FOR MORE INFO 50% WORKING INTEREST FOR SALE 5,000 2D & 3D Seismic Data Available. RE-ENTRY DV 8153FO Current Gross Production: 5,000 BOPD BOPD SEEKING JV PARTNER FOR --- Gross 2P Reserves: 21 MMBO ---EXPLORATION PROGRAM. Total Proved Plus Probable: 40 MMBO Recoverable Reserves: 64 MMBO The industry’s only Unrisked Prospective Resources: 66 MMBO Unrisked STOIIP: 425 MMBO global multiple listing service CONTACT BLOCK OWNER FOR INFO CONTACT FOR ADDITIONAL INFO www.plsx.com/listings PP 2975DV DV 1022FO Find more listings at www.plsx.com/listings No commission! List today, call +1 713-650-1212 Volume 09, No. 04 17 EnergyFinance

International Upstream Earnings YE16 Net Income/Loss Cash Flow From ($MM) Operations ($MM) Capex ($MM) Revenue ($MM) Company Name Ticker YE16 YE15 YE16 YE15 YE16 YE15 YE16 YE15 ExxonMobil NYSE:XOM $7,840 $16,150 $22,082 $30,344 $16,163 $26,490 $197,518 $236,810 Shell ENXTAM:RDSA $4,575 $1,939 $20,615 $29,810 $22,116 $26,131 $233,591 $264,960 Chevron NYSE:CVX ($497) $4,587 $12,846 $19,456 $18,109 $29,504 $103,310 $122,566 Total ENXTPA:FP $6,196 $5,087 $16,521 $19,946 $18,106 $25,132 $127,925 $143,421 BP LSE:BP. $115 ($6,482) $10,691 $19,133 $16,701 $18,648 $182,325 $223,279 Rosneft Oil LSE:ROSN $2,957 $4,937 $10,325 $30,527 $11,583 $8,275 $77,847 $70,065 ENI BIT:ENI ($1,545) ($9,539) $9,038 $11,952 $9,571 $11,532 $58,864 $73,571 Statoil OB:STL ($2,922) ($4,237) $9,034 $12,314 $12,191 $14,088 $45,688 $52,567 ONGC NSE:ONGC $2,131 - $7,963 $5,431 $5,084 - $19,841 - Novatek LSE:NVTK $4,212 $1,035 $2,839 $1,848 $562 $704 $8,111 $6,142 PTT SET:PTT $2,644 $553 $7,556 $8,143 $2,952 $4,341 $48,026 $56,226 TSX:IMO $1,612 $809 $1,500 $1,562 $799 $2,158 $17,420 $18,154 Repsol BME:REP $1,833 ($1,518) $4,106 $5,361 $2,114 $3,248 $30,022 $36,418 Woodside Petroleum ASX:WPL $868 $26 $2,587 $2,475 $1,608 $1,819 $4,075 $5,030 MISX:SIBN $3,270 $1,525 $5,249 $3,966 $6,287 $4,854 $25,251 $20,415 ENXTLS:GALP $189 $133 $1,551 $1,514 $1,113 $1,075 $13,978 $16,905 PTTEP SET:PTTEP $372 ($854) $2,288 $2,889 $998 $1,734 $4,256 $5,405 Origin Energy ASX:ORG ($439) ($646) $1,046 $1,411 $426 $542 $8,882 $8,379 Oil Search ASX:OSH $90 ($39) $555 $953 $225 $526 $1,236 $1,586 Cairn India NSEI:CAIRN ($1,423) $193 $624 $1,523 $249 - $1,302 $1,448 Lundin OM:LUPE ($357) ($862) $778 $312 $1,056 $1,479 $1,160 $569 OGDC KASE:OGDC $573 $702 $534 $727 $404 $495 $1,556 $1,699 Santos ASX:STO ($1,047) ($1,953) $857 $811 $667 $1,523 $2,594 $2,442 MOL BUSE:MOL $900 ($882) $1,774 $2,035 $989 $1,301 $12,138 $14,100 Oil India NSEI:OIL $302 - $472 $281 $455 - $1,491 - Pakistan Petroleum KASE:PPL $153 $236 $502 $367 $411 $248 $772 $844 Tullow LSE:TLW ($600) ($1,035) $513 $1,351 $756 $1,465 $1,270 $1,607 MEG Energy TSX MEG ($319) ($843) ($70) $81 $92 $221 $1,386 $1,388 LSE:CNE ($95) ($516) ($21) ($16) $130 $116 - - Japan Petroleum TSE:1662 $19 $55 $513 $656 $827 - $2,139 $2,187 Pakistan Oilfields KASE:POL $96 $63 $120 $129 $38 $36 $242 $246 Gran Tierra AMEX:GTE ($466) ($268) $93 $62 $147 $157 $289 $276 Ophir Energy LSE:OPHR ($77) ($323) $12 $41 $194 $356 $107 $161 Africa Oil TSX:AOI ($18) ($87) ($4) ($11) $0 $0 - - Karoon Gas ASX:KAR ($78) ($45) ($23) ($11) $40 $152 $1 $2 Tethys Oil OM:TETY $3 $24 $53 $60 $49 $42 $87 $107 Pantheon Resources AIM:PANR ($1) ($1) $2 ($1) $12 $10 $0 $0 Source: Bloomberg Note: Data includes public, US-based companies operating in the oil & gas space, limited to >$1.00/share and market cap >$200MM.

For general inquiries, email [email protected] Access PLS’ InternationalCapital archive for previous energy finance news InternationalCapital 18 March 16, 2017

NORTHERN EUROPE NORTHERN EUROPE OCEANIA/SOUTH PACIFIC UK NORTH SEA FARMOUT OPPORTUNITY OFFSHORE AUSTRALIA FARMOUT 2-Blocks. 2-Licences. 1-Licence. 3-Blocks. 1-Permit. 12,400 sq km. EX OUTER MORAY FIRTH SOUTHERN NORTH SEA NORTH PERTH BASIN WEST CENTRAL GRABEN DV Lower Carboniferous Sandstone. DV Multiple Untested Structural Trends. PERTH One Oil Discovery & One Large Prospect. 3D Seismic Survery Planned. UP TO 50% WORKING INTEREST AVAIL 2 Appraisal Wells Planned In 2017. Awarded In 28th Promote Round. CONTACT AGENT FOR MORE INFO Reprocessed 3D Seismic Available. NORTH Vintage 2D Seismic Data Available. NORTH EX 8080FO SEEKING JV PARTNER FOR FARMOUT SEA EQUITY & OPERATORSHIP AVAILABLE SEA 30-50% WORKING INTEREST AVAIL SEEKING JV PARTNERS ONSHORE AUSTRALIA PERMITS Estimated 2P Reserves: 29 MMBO CALL Est Prospect Resources: >200 BCF 7-Permits. 12,000 sq km. Comb. Reserve Potential: 80 MMBO PLS FOR CONTACT AGENT FOR MORE INFO COOPER-EROMANGA BASIN DV CONTACT AGENT FOR MORE INFO INFO DV 1971FO SURAT-BOWEN BASIN DV 2981FO Active Exploration Programme And --- ONSHORE OCEANIA/SOUTH PACIFIC --Flexible Farm-In Terms. UNITED KINGDOM COMPANY SALE SEEKING JV PARTNERS Total Acreage 250 sq km. AUSTRALIA EXPLORATION FARMOUT Unrisked Prospective: 70-100 MMBOE DEALS EAST MIDLANDS BASIN CO 1-Permit. 800 sq km. CONTACT AGENT FOR UPDATE FOR Conventional & Unconventional Prospects. NORTH CARNARVON BASIN DV DV 8330FO SALE 3D Shows Crest Seismic Amplitude. Large Structural Prospect Identified With- Suggests Improved Reservoir Potential. -Additional Structural & Stratigraphic Leads. CARN- PAPUA NEW GUINEA PROJECT 100% OPERATED WI AVAILABLE ONSHORE UP TO 50% WORKING INTEREST AVAIL CARVON 1-Permit. 4,139,509-Acres. (16,752km2) Appraisal Well Drilled Q! 2016. Est Mean Prospective: 1.4 TCF CORAL SEA DV Remaining 2P Reserves: ~700 MBO P10 Upside: 2.0 TCF HIGH IMPACT EXPLORATION Possible 3P Reserves: ~2.1 MMBO CONTACT AGENT FOR MORE INFO One Identified Prospect. CALL AGENT FOR ADDITIONAL INFO DV 8005FO Offshore Water Depth: 656 Ft. (200m) FARMOUT CO 2017PP SEEKING JV PARTNER FOR FARMOUT AUSTRALIA FARMOUT OPPORTUNITY Reserves: 860 MMBO & 58,000 BCF UNITED KINGDOM FARMOUT 4-Permits. CONTACT AGENT FOR MORE INFO 1-Block. 1-Drilled Well. ROEBUCK & BARCOO BASINS DV DV 6337FO EAST IRISH SEA BASIN DV Multiple Identified Prospects. Triassic Sandstones Discovery. Early Entry Into An Opening Play. SOUTHEAST ASIA Dinantian Limestones. OFFSHORE Low Cost Entry. 3D Seismic Planned. ROEBUCK 3D Seismic Data Available. SEEKING JV PARTNER INDONESIA FARMOUT OPPORTUNITY Promote Period Extended Until Dec 2017. Prospect Resources: 250 MMBO BUYER! NO 1-Licence. 1,099 sq km. SEEKING JV PARTNER CONTACT AGENT FOR UPDATE COMMISSIONS ONSHORE WEST SULAWESI DV P50 Reserves: 291 BCF DV 2818FO Production Sharing Contract. DV 1696FO Shallow Oil Bearing Structures. OFFSHORE AUSTRALIA FARMOUT Low Well Cost & Appraisal Well Planned. SULAWESI UNITED KINGDOM OPPORTUNITY 1-Permit. 560 sq km. SEEKING JV PARTNER 1-Licence. 2-Blocks. 157 sq km. NORTH CARNARVON BASIN DV CONTACT AGENT FOR MORE INFO UK NORTH SEA Three Identified Prospects. DV 2977FO OUTER MORAY FIRTH DV Water Depth: 180-400m. FARMOUT One Identified Prospect. 3D Seismic Data Covers Permit. INDONESIA OPPORTUNITY Exploration Well Required By Nov 2018. NORTH UP TO 50% WORKING INTEREST AVAIL 7-Production Sharing Contracts. 3D Seismic Data Available. SEA Mean Potential: 275 MMBO SUMATRA BASIN 40% OPERATED WI FOR SALE AGENT MARKETING DIVERSE PORTFOLIO Opportunity To Create Foothold In On Of- PP Unrisked Prospective Rsrce: 67 MMBOE DV 1383FO --Asia’s Most Significant Provinces. CONTACT AGENT FOR MORE INFO Targeting 20,000 BOPDE By 2018 --- 9,500 DV 1919 OFFSHORE AUSTRALIA PROJECT --From The Indonesia Portfolio. BOPD 1-Permit. 1,225,643-Acres. (4,960km2) SEEKING JV PARTNERS UNITED KINGDOM OPPORTUNITY OTWAY BASIN 2016 Peak Production: 9,500 BOPD 2-Licences. 4-Blocks. 729.6 sq km. READY TO DRILL DV CONTACT AGENT FOR MORE INFO SOUTHERN NORTH SEA One Identifed Prospect. PP 2859DV Permian Zechstein Carbonate Play. DS Five Additional Leads Mapped. Multiple Leads Identified. Water Depth. 328 Ft. (100m) OFFSHORE LAOS OPPORTUNITY Awarded In 28th Promote Round. 2D & 3D Seismic Data Available. 1-PSC. >3,000,000-Acres. >11,000km2. DV 3D Seismic Survey Planned. NORTH SEEKING JV PARTNER SAVANNAKHET BASIN 2D Seismic Data Available. SEA Est. Prospect Resources: 1.4 TCF One Identifed Prospect. ONSHORE EQUITY & OPERATORSHIP AVAILABLE Total Prospective Resources: 6.8 TCF SEEKING JV PARTNER Est. Prospective Resource: >1.0 TCF CONTACT AGENT FOR MORE INFO Total Recoverable Resources: 3.4 TCF CONTACT AGENT FOR MORE INFO DV 6798FO CONTACT AGENT FOR MORE INFO DS 1970FO DV 1096FO

Find more listings at www.plsx.com/listings No commission! List today, call +1 713-650-1212 Volume 09, No. 04 19 EnergyFinance Australia & Oceania Australis raising $100 million to fund acreage buy in US Central accepts new $0.20 a Australis Oil & Gas is looking to raise A$100 million and said it received share Macquarie takeover commitments for a conditional placement of 434.78 million new ordinary shares at A$0.23 per share, which would add to cash reserves of about $30 million. The transaction After rebuffing Macquarie Group’s will include participation from existing shareholders and new sophisticated investors, initial A$0.175 a share takeover proposal and is subject to shareholder approval to be obtained in mid-April. Euroz Securities last fall, Australian gas producer Central Ltd. is sole bookrunner for the placement. Petroleum announced that its March 3, 2017 • Volume 28, No. 03 Australis is buying stakes in existing oil DEALS board of directors unanimously ADTransacTions Serving the marketplace with news, analysis and business opportunities production, reserves and resources within an area EQT’s $527MM bid beats Tug Hill for Stone’s Marcellus/Utica Conoco moves forward with Stone Energy sold its entire Appalachian position to EQT Corp., which won $5-8B divestment effort approved the revised bid of $0.20 a bankruptcy auction for the assets with a $527 million cash bid. The sale included Marketing processes have begun 86,000 net acres with net production of 80 MMcf/d mostly in northern West Virginia. for multiple parts of ConocoPhillips’ It was approved by the bankruptcy court Feb. 10 and closed Feb. 27. Combined with a US upstream portfolio as it progresses that covers more than 120,000 net acres within the restructuring completed the next day, the sale repositions Stone as a pure toward a $5.0-8.0 billion divestment A&Dand Gulf Coast operator.Transactionstarget Mar.for 2017-2018. Having 3 put the San Stone struck a deal $527 million sale is up 46% from Tug a share and a contingent value note offered Hill's $350 million stalking horse bid. Juan Basin up for sale late last October as it was last year, Conoco is also heading into Chapter 11 to sell the Appalachian assets to Tug Hill for $350 million. But it actively seeking buyers production defined core area of the Tuscaloosa opened the sale to bidding from EQT and another suitor following court orders in January, for its entire Barnett position and mostly with Tug Hill’s offer as the stalking horse bid. Stone used part of the proceeds from EQT gas-weighted assets in the Williston by the banking group’s Macquarie MPVD to pay Tug Hill a $10.8 million break fee and a $1.85 million reimbursement for expenses. and Anadarko basins, the Texas and Australis“With the successful conclusion becomesof the auction, we are now poised to move forwardTMS Oklahoma panhandles,acreage the Permian and with our pre-packaged plan, with Stone, its noteholders and the bank group all in Western Canada. agreement on a plan of action,” Stone CEO David Welch said. Continues On Pg 15 Marine Shale play in Louisiana and Mississippi for San Juan deal expected by midyear, Linn Energy spins off Berry, prepares asset sales Barnett & Canada a few months later. unit. Macquarie is Central’s lender and leaderThe largest E&P firm into fall into $80MMbankruptcy during the downturn has re-emergedEncana as deal. two separate companies and is marketing non-core assets to further reduce debt. After Conoco hired Wells Fargo to sell taking on heavy debt at the height of the market to buy Berry Petroleum for $4.9 billion the San Juan assets, which cover 900,000 US$80 million. in 2013, Houston-based Linn Energy filed for Chapter 11 protection in mid- net acres primarily in northwest New 2016 and has now exited the process with debt reduced by more than $5.0 Mexico with 2016 net production of owns 2.3% of the operator of the Northern billion to ~$1.0 billion. As part of the reorganization, Linn is spinning out 746 MMcfe/d (22% liquids) from more Berry as a private standalone company. than 12,600 active wells. Bids were due Berry will once again be Berry, founded in 1908 & purchased by Feb. 16. After meeting with management, Linn in 2013, returns home to Bakersfield. headquartered in its historic home of Barclays analysts wrote in a March 1 note Bakersfield, Calif. Led by veteran oil and gas exec and consultant Trem Smith as CEO, that the company expects to announce a Territory’s only producing onshore gas it will have assets in California’s San Joaquin Basin, Utah’s Uinta Basin and Colorado’s sale by midyear. Continues On Pg 11 Piceance Basin—three of its pre-merger operating areas—as well as Kansas’ Hugoton field. Notably absent is Berry’s pre-merger Permian position, which Linn mostly sold DEALS FOR SALE to ExxonMobil and others in 2014 and 2015. Continues On Pg 13 SOUTH TEXAS NONOPERATED Woodside maintains LNG focus after posting $1B profit18-Active Wells. fields—Mereenie, Palm Valley and Dingo. Kimbell Royalty poised for multi-basin M&A post-IPO FRIO & ZAVALA COUNTIES A group of major Texas investors that have been quietly buying mineral and BRISCOE RANCH PP royalty interests in the Permian and other US onshore basins plans to dramatically 5-10 PUD Wells Scheduled Near Term. increase acquisitions through their new upstream MLP vehicle Kimbell Royalty 10%-20% NonOperated WI; 74.5% NRI NONOP Net Production: 200 BOPD & 66 MCFD Woodside Petroleum reported 2016 revenue of $4.07Partners. The investor billion,group is led by KRP CEO Bob Ravnaas down and Fort Worth’s Net Cash Flow:19% ~$170,000/Mn (6-Mn Avg) YOY, Kimbell Art Foundation. KRP raised $103.5 million in a Feb. 8 IPO and will distribute Estimated PUD AFE: ~$4,300,000/Well The total value of the deal increased from PP 5953DV net proceeds of $96 million to its sponsors, which contributed assets to and retain a 64.8% LP stake in the MLP. President and CFO Davis Mineral/royalty MLP follows in Viper’s NORTH TEXAS ASSETS FOR SALE footsteps, but ventures beyond Permian. 17-SWD Wells. ~80,000-Net Acres. but a $973 million profit vs. $113 million the prior year.Ravnaas Cash(Bob’s son) told flow fromJACK, PALO PINTO & CLAYoperations COUNTIES PP PLS that KRP’s sponsors made $200 million in acquisitions from 1998 to 2012 and Targets: Marble Falls, Barnett, Strawn, A$76 million by 14% to about A$86.7 million Conglomerate & Caddo Formations. ~2,600 then ramped up to ~$100 million annually from 2013 through 2016 as the expansion of horizontal development plays brought new assets to the market. Even so, he said, ~100% OPERATED WI; ~75% NRI BOED “we’ve missed out on deals in the last few years because we didn’t have enough capital,” Total 2P Reserves: 82,160 MBOE AGENT WANTS OFFERS MAR 9, 2017 increased to $2.6 billion, and free cash to $114 million.so the access to public capital provided CEO by the MLP “will give us the opportunity Peter to PP 2550DV Coleman make more acquisitions.” The contingent value note will be KRP is currently considering 15 acquisition opportunities and expects “robust PLS tracks thousands of deals for sale www.plsx.com/listings deal flow going forward,” Ravnaas said. Continues On Pg 16 based on the success of exploration on the highlighted a 28% YOY reduction in unit production costs to $5.00/boeAll Standard Disclaimers & andSeller Rights Apply. the Ooraminna retention licenses, the Palm second-highest annual production in the company’s history at 94.9 MMboe (up 3.0% Valley Deep prospect, the Mt Kitty discovery YOY) as among the company’s accomplishments last year. Secured $1.4B debt funding in 2016, and certain exploration licenses in the Santos increasing liquidity to $2.7B. Southern Amadeus Basin joint venture in Woodside also sanctioned the four years following completion of the the subsea tie back Greater Enfield project in Western Australia and interests in the deal. The company said the CVN could be SNE oilfield in Senegal, and more assets in the Scarborough area offshore Western worth anywhere from zero to $0.196 each. Australia, at a total average cost of $1.10/boe. Chairman Robert Hubbard said the proposal Woodside expects its total production to grow by 15% from 2017-2020 through represented attractive value to shareholders existing operations and sanctioned projects. The company is progressing on construction at a time when the company required a and commissioning work at the Chevron-operated Wheatstone LNG project in Western major capital injection. Australia, which when fully operational will add more than 13 MMboe to its annual production. Coleman said he expects first LNG cargo from Wheatstone by mid-2017. Woodside’s capital guidance this year is $1.6 billion, up from the $1.4 billion it spent in 2016.

Wheatstone A Prime Recipient Of Woodside’s Capex This Year The industry’s 2,500 Capital expenditure 2017 Investment expenditure only global Acquired assets 2,000 258 multiple Capital Exploration listing service 452 ~210 Scarborough Abandonment 1,500 -16% -15% ~150 176 -8% Senegal PLS runs the oil and gas industry’s ~80 90 ~50 1 US$ million ~110 Myanmar premier multiple listing service. 1,000 ~800 ~280 Other growth2 2017 EXPENDITURE In 1987, PLS became the first listing 755 Greater Enfield • Capital Expenditure: ~370 service to specifically cater to the oil 500 ‒ Delivering new LNG production from 3 Wheatstone from mid-2017 and gas industry. Subscribers can Wheatstone ~520 ‒Executing Greater Enfield oil project 385 ~400 4 access a customizable list of asset Base business ‒Appraising Senegal (SNE) and 0 Myanmar (Thalin). types based upon their unique 2016 Guidance 2016 2017E •Exploration Expenditure: 1. 2016 Myanmar capital expenditure was US$4 million. ‒Funding wells in Myanmar (two), acquisition criteria. 2. Other growth includes Kitimat and Browse. Australia (one), Gabon (one) and 3. Wheatstone includes the Wheatstone and Julimar Projects. Senegal (one). 4. Base Business includes Pluto, NWS, Australia Oil and Corporate. www.plsx.com/listings Source: Woodside Petroleum Jan. 19 Presentation via PLS docFinder www.plsx.com/finder

For general inquiries, email [email protected] Access PLS’ InternationalCapital archive for previous energy finance news InternationalCapital 20 March 16, 2017

SOUTHEAST ASIA SOUTHERN AFRICA WEST AFRICA OFFSHORE VIETNAM PROSPECT SOUTH AFRICA OPPORTUNITY COTE D’IVOIRE OPPORTUNITY 1-Block. 1-Block. >90,000km2 1-Block. 481,114-Acres. (1,947km2) PHU KHANH BASIN DV ORANGE BASIN DV OFFSHORE DV DRILL READY PROSPECTS Several Identified Leads. One Identified Prospect & Several Leads. De-Risked By Well Control. DRILL Water Depth: 100m-4,000m. 3D Seismic Data Available. OFFSHORE Miocene Reef Large Target. READY 2D Seismic Data Available. FARMOUT SEEKING JV PARTNER Derisked By Well Control & 3D Seismic. Up To 10% Equity Available Mean Reserves: 150 MMBO 33.33% NONOPERATED WI FOR SALE SEEKING JV PARTNER FOR FARMOUT CONTACT AGENT FOR MORE INFO CONTACT AGENT FOR MORE INFO DEALS CONTACT BLOCK OWNER FOR INFO DV 1211FO DV 2426 FOR DV 1176FO SALE COTE D’IVOIRE PROSPECT VIETNAM OPPORTUNITY SOUTH AFRICA OPPORTUNITY 1-Block. 436,882-Acres. (1,768km2) 1-Block. >1,800,000-Acres. (>7,000km2) 1-Block. 20,100km2 ABIDJAN BASIN DV SONG HONG BASIN DV ORANGE BASIN DV Multiple Defined Prospects. Gas & Condensate Exploration Prospects. Leads & Prospects Identified. Lower Cretaceous Albian To Upper-- Numerous Faulted Structures. OFFSHORE 2D & 3D Seismic Data Available OFFSHORE --Cretaceous Maastrichtian Miocence. ABIDJAN 2D Seismic Data Available. Up To 20% Equity Available. SEEKING JV PARTNER FOR FARMOUT UP TO 50% WORKING INTEREST AVAIL SEEKING JV PARTNER Licence Awarded In 2011. CONTACT BLOCK OWNER FOR INFO CONTACT BLOCK OWNER FOR INFO Recoverable Oil Volumes: 2,000 MMBO CALL DV 1178FO DV 1561FO CALL AGENT FOR ADDITIONAL INFO PLS FOR DV 6828FO INFO SOUTHERN AFRICA SOUTH AFRICA OPPORTUNITY 2-Fields. GHANA FARMOUT OFFSHOURE SOUTH AFRICA PROSPECT BREDASDORP BASIN DV 1-Block. 381,036-Acres. (1,542-Km2) 1-Block. 6,223km2. 18 Leads & Prospects Defined. OFFSHORE DV OFFSHORE Water Depth: 120m t0 150m OFFSHORE 3 Prospective Areas Two Identified Prospects. DV 3D Seismic Data Available. UnderExplored Block In Shallow Water. SHALLOW 2D & 3D Seismic Data Available. SEEKING JV PARTNER FOR FARMOUT 2D Seismic Available. WATER Up To 15% Equity Available. JV OIIP Volume: 23 - 43 MMBO Newly Acquired High Quality 3D SEEKING JV PARTNER Prospective Resources: 200-880 BCF OPERATED WI FOR FARMOUT Mean Resource Estimate: 608 MMBO CONTACT FIELD OWNER FOR INFO CALL AGENT FOR ADDITIONAL INFO CONTACT BLOCK OWNER FOR INFO DV 10511FO DV 1283FO DV 8954FO SOUTHERN AFRICA OPPORTUNITY GHANA OPPORTUNITY SOUTH AFRICA DEVELOPMENT 2-Permits. 1-Block. 69,061-Acres. (279.48km2) 1-Permit. 3-Producing Wells. 270km2. OFFSHORE NAMIBIA TANO BASIN DV BREDASDORP BASIN 5 Principal Cenomanian Sand Prospects. DV Six Drillable Prospects. 1 Exploratory Well, 5 Appraisal Wells. PP Water Depth: 300-700m Water Depths: 300 - 1,500m. Water Depth: 118m to 400m High Quality 3D Seismic Data Available. 3D Seismic Data Available. OFFSHORE 2D & 3D Seismic Data Available. OFFSHORE SEEKING JV PARTNER OFFSHORE 40% WORKING INTEREST AVAILABLE 10% EQUITY IS AVAILABLE Total Rsrce Potential: 2,325 MMBBLS Potential In-Place Reserves: 3,500 MMBO SEEKING JV PARTNER FOR FARMOUT Well Costs: $40,000,000 CONTACT AGENT FOR MORE INFO BUYER! NO Resource Potential: 748 BCF CONTACT AGENT FOR INFO COMMISSIONS DV 1068FO CONTACT PERMIT OWNER FOR INFO DV 1880FO PP 1662FO GUINEA-BISSAU PROJECT SOUTH AFRICA COUNTRY ACREAGE 19,768-Acres (8,000 Sq Km). SOUTH AFRICA OPPORTUNITY RELINQUISHED BLOCKS & OFFSHORE GUINEA BASIN DV 1-Block. 28,447km2 GENERAL INFORMATION COU Upper Cretaceous. 10,000 Ft. ORANGE BASIN DV ACREAGE AVAILABLE FROM STATE AFRICA Jurassic. 12,000 Ft. 8 Exploration Wells Drilled. OPERATED & NONOP BLOCKS ACREAGE 2D & 3D Seismic, Geophysics and -- JURASSIC Water Depth: 50m-300m OFFSHORE COU 6921L -- Well Tie Package, Basin Modeling. 3-D Seismic Data Available. HIGH OPERATED WI AVAILABLE 30% WORKING INTEREST AVAILABLE SOUTH AFRICA PROSPECT Reserves (Upper Cretaceous): 3.0 BBO CONTACT BLOCK OWNER FOR INFO 1-Block. 1,270km2 Reserves (Jurassic): 3.0 BBO DV 1972FO PLETMOS BASIN DV 3669 Multiple Gas Discoveries. DV Water Depths: 100-140m. Existing 3-D Seismic Available. OFFSHORE Transactions UP TO 70% EQUITY AVAILABLE The industry’s Metrics and P50 GIIP Contingent Resource: 195 BCF only global multiple Comparables CONTACT BLOCK OWNER FOR INFO listing service www.plsx.com/ma DV 1544FO www.plsx.com/listings Find more listings at www.plsx.com/listings No commission! List today, call +1 713-650-1212 Volume 09, No. 04 21 EnergyFinance Americas ' lawsuit provisions pushed to $372 million ■■ Argentina’s Axion Energy is Petrobras’ board agreed to settle four separate lawsuits in US federal court at the end offering up to ARS300 million expandable of February. The settlements brought total provisions for the lawsuits on the FY16 books to up to ARS400 million principal amount $372 million. So far, the company has settled 19 individual actions out of the 27 that were of Floating Rate Class VII negotiable consolidated in a class action suit. Petrobras sued for inflating asset prices notes due 2018 on a best efforts basis. The four settlements & lying about financials. The 2018 notes are part of the company’s were with New York City $700 million negotiate notes global Employees Retirement System, Transamerica Income Shares, Internationale issuance program. Interest on the notes Kapitalanlagegesellschaft GmbH, and Lord Abbett Investment Trust. “These will be payable quarterly. Minimum settlements, the terms of which are confidential, have the purpose of eliminating subscription amount is ARS1,000 and uncertainties, burdens and costs associated with the continuity of such disputes and do multiples of ARS1.0 thereafter. The not constitute any acknowledgment of responsibility on the part of Petrobras, which will notes will also be listed on the Mercado continue to firmly defend itself in other ongoing actions,” the company said. Abierto Electrónico. posts $526MM profit in FY16, will spend $3.5B ■■ International Frontier Resources Colombia’s state-run Ecopetrol reported net income of COP $1.56 trillion ($525.6 closed its private placement of 18,068,160 million) in 2016, reversing a COP $1.33 billion net loss in 2015. The profit comes after shares at $0.28 each, raising $5,059,085. a year of cost reductions as the state-run company adjusted to low oil prices. Operational The brokered portion of the placement results yielded an EBITDA of COP 8.0 trillion. The company invested a total of consisted of 8,094,445 shares for proceeds US$2.5 billion in 2016. Production reached 718,000 boe/d last year, exceeding its target of $2,266,445. The company also by 3,000 boe/d, but still announced the concurrent closing of a non- 43,000 boe/d less than 2015. Petrobras' EBITDA & EBITDA margin brokered private placement of 9,973,715 rose to 18T pesos & 38% respectively. In refining, Q4 saw shares for $2,792,640. The proceeds will the startup of the 34 units at Reficar, the country’s main refinery, giving wayto be used to fund IFR’s minimum work the stabilization and testing period. The company achieved a record load of crude program and under its license contract for for refining in December: Reficar, with 150,000 bbl/d, and Barrancabermeja, with Tecolutla Block in Mexico. Funds will also 230,000 bbl/d, for 21 days. The average margin per barrel at Reficar rose from be used to participate in the 2.3 bid round $2.80/bbl between January and July to $8.40 since August, once all the units were auction and for general working capital. online. In 2017, the company plans to complete the stabilization stage at Reficar and People & Companies to test global performance in 2H16 Investigation launched over possible Ecopetrol said its focus in 2017 ■■ CGX Energy announced the corruption involving Reficar refinery. resignation of Dennis Pieters from its will continue to be adding reserves and board, which he joined in May 2012. maintaining the pace of production. The company credited its new exploration strategy Toronto-listed CGX, which focuses with the oil discovery in the Gulf of Mexico’s Warrior well. This strategy emphasizes on South America, has not joint ventures with major companies to diversify Ecopetrol’s risk, and engaging in further appointed a replacement for exploration to increase the likelihood of discoveries. Its $3.5 billion 2017 investment plan Pieters, a reservoir engineering aims to increase offshore wells to six from two, and onshore wells to 11 from five YOY. director for Huber Energy, who served Developments & Trends on the health, safety and environment, reserves, and social responsibility Methodology for Brent changing committees. Pieters’ departure follows a The North Sea Brent benchmark, used in about two-thirds of oil deals around the shakeup in December when four of CGX’s globe and playing a vital role in the trading of futures, options and other derivatives, will seven board members resigned. Only two get tweaked in 2018. Oil pricing agency S&P Global Platts will adjust the criteria of the replacements have been named so far: Brent benchmark to include a crude production stream from the Troll field operated by Erik Lyngberg and Dan Gillett. Statoil in order to compensate for a projected drop in supplies of the crudes in the streams ■■ Chevron named EVP of midstream currently used to arrive at the benchmark. This wouldn’t be the first time—in Adding crude production stream from and downstream Mike Wirth as vice Statoil’s Troll field. chairman. He will join the board and add 2002 Platts added two additional grades of policy, government and public affairs to crude, Forties and Oseberg, in its price assessment for , and in 2007 it added his existing responsibilities. Wirth joined Ekofisk. Brent’s full name is Brent BFOE, referring to the four grades in the benchmark. Chevron in 1982 as a design engineer and Also under consideration is a more radical measure that would allow oil delivered has served as president of global supply from West Africa and Central Asia to be factors in setting North Sea prices. That plan, and trading as well as Asia, Middle East which would combat a large expected decline in North Sea output in the coming years, and Africa marketing. wouldn’t go into effect until after 2020, the Financial Times reported.

For general inquiries, email [email protected] Access PLS’ InternationalCapital archive for previous energy finance news InternationalCapital 22 March 16, 2017 Developments & Trends People & Companies US poised to rival Russia as world’s largest O&G exporter ■■ Chrysaor Holdings, the EIG The O&G-friendly Trump administration, recovering commodity prices and Partners-backed E&P that is buying increasing domestic production could combine to make the US a rival of Russia as the $3.0 billion in assets from Royal Dutch world’s largest oil and gas exporter. LNG exports could become Exhibit A in this trend. Shell, named three new board members While over 20% of the world’s natural gas exports currently come from Russia, to support growth. EIG-backed Harbour the US is poised to have the capacity to Energy CEO and Shell executive ship 10-12 Bcf/d of LNG globally by Trump has pledged to streamline LNG committee member Linda Cook was project approval process. 2020—one-third of the global market. named chairman. Former Apache This is particularly significant because the US was exporting virtually no LNGas chairman and CEO Steve Farris and late as last year. former Shell EVP Andrew Jamieson are US LNG exports are currently at about 2.0 Bcf/d to a total of 20 countries. Over also joining the board, while Francis the last year, shipments first went to Latin America, then to Asia, and now to Russia’s Gugen, Robert Poddubiuk and Dick backyard in Europe. Covington are leaving. ■■ Lundin Petroleum will transfer Prices headed lower as US growth offsets OPEC slowdown staff to impending spinoff International Oil prices dropped to a three-month low on March 13 on rising inventories and more Petroleum Corp. Lundin CFO Mike drilling activity in the US eclipses optimistic views on OPEC’s crude output cuts. “There is Nicholson will become growing skepticism that the production cut has been enacted long enough to take care of the IPCO president and CEO, overhang,” Tradition Energy market research director Gene McGillian told Reuters, who corporate finance VP added that those in long positions from last year have turned on the market because they Christophe Nerguararian will become realized a six-month output cut agreement CFO, VP of legal Jeffrey Fountain will wouldn’t be enough to rebalance the market. Longs exiting positions on realization that a rebalance might take longer. become general counsel, and board WTI had fallen to $48.29/bbl and member Lukas Lundin will become Brent to $51.30, more than 8% from the week before. Goldman Sachs said in a note it chairman. Replacing Nicholson as was “very confident” about prices, forecasting $57.50/bbl for WTI in Q2. Lundin CFO is VP of corporate planning Drillers in the US added new rigs for the eighth week in a row, per , and investor relations Teitur Poulsen, while OPEC and other producers like Russia agreed to cut almost 1.8 MMbo/d during who will be succeeded by Alex Budden 1H17. Rosneft said increasing US output may discourage those who cut production to who is joining from Africa Oil. Lundin continue the agreement beyond the June deadline. senior legal counsel Henrika Frykman will replace Fountain. Oil probably won’t hit $60/bbl this year, poll indicates ■■ New Zealand Oil & Gas named Optimistic Raymond James analysts have a YE17 Brent forecast at $73/bbl while Andrew Jefferies as CEO. Formerly the number crunchers at Commerzbank say oil will be $50/bbl by the end of the year. VP of E&P, Jefferies has been interim Somewhere in between is everyone else’s guess in a Reuters poll of 31 analysts and CEO since last August economists that averages out to $57.52/bbl for benchmark futures LCOc1 by when Andrew Knight left year-end. US light crude CLc1 contracts will average $55.66/bbl this year and $60.68 in the company. In addition, 2018, per the poll. controller Catherine McKelvey was The new consensus Brent at $57.52 & WTI at $55.56 as YE17 average, Reuters survey shows. named CFO, succeeding Andre Gaylard points to oil still struggling to rise above who left in January. General counsel $60 even if OPEC continues supply cuts and global demand increases. This Brent Ralph Noldan leaves this month. Also, forecast comes in below a previous survey’s $55.73/bbl consensus. So far this year, Chris McKeown was promoted from Brent has averaged $55.73 and WTI near $53/bbl. Southeast Asia general manager to VP of Intesa SanPaolo analyst Daniela Corsini told Reuters that OPEC will extend the E&P and general manager. limits on supply and adjust numbers based on global inventories and production from ■■ Origin Energy named Lawrie non-OPEC producers. “We expect crude markets will be in deficit in the first three Tremaine as new CFO. He comes from quarters of 2017 and then they could swing into a small surplus in the fourth quarter Woodside Petroleum, where he held amid rising non-OPEC supply.” the same role since 2010 At Origin, his Continued OPEC cuts & US shale But the disruption factor in all this is appointment follows a long search to revolution major factors. of course US shale production, which is replace Karen Moses, who left last May in revival mode and shows no signs of abating. Rig count is up in the US to the highest after 21 years. It comes as Origin pursues level since October 2015 at 602 rigs, per Baker Hughes. an aggressive debt reduction program Capital Economics analyst Caroline Bain told Reuters that oil will rise through and an IPO spinoff of its conventional oil the year to $60 as increased global demand helps to rebalance the market. and gas business. Find more on the energy finance arena at www.plsx.com To learn more about PLS, call +1 713-650-1212 Volume 09, No. 04 23 EnergyFinance People & Companies Developments & Trends ■■ Pacific E&P named Barry Larson Brent, OPEC, trading & more on minds at IPW conference as CEO, replacing Jim Latimer who The key themes addressed at London’s International Petroleum Week Conference held the role on an interim basis after last month differed greatly from those discussed at the 2016 conference, when oil prices serving as the company’s chief were near $35/bbl. The oil price recovery since YE16 has prompted companies to once restructuring officer. Larson was again focus on growth, but tentatively so as they await the outcome of the interplay most recently as COO of fellow of OPEC’s pledged production cut and the return of US production growth. Colombia producer Parex While bears and bulls Resources from 2009 until he retired last disagreed over whether Prices, trading, Brent assessment, output cuts & renewables all discussed. year. He joined Pacific’s new board in OPEC’s cuts are a band-aid or could yield November following its recapitalization a rapid rebalancing of the oil market this year, the consensus view of the conference but will give us his director seat. was that returning US shale production, forecast to rise 500,000 bbl/d in 2017, means ■■ Venezuelan President Nicolas Maduro a return to growth will not be as dramatic as that seen in the late-2000s. In other words, named new execs to state-owned PDVSA no $100/bbl oil anytime soon. to help root out corruption. Maribel Parra, A second theme addressed by the conference concerned a shift in oil trading a rear admiral in Venezuela’s behavior as prices recover. While traders profited from low oil prices by purchasing armed forces, will take on the cheap crude and holding it in storage, newly created role of EVP. Last year had a ‘lower for longer’ feel now some of the world’s top oil while it was ‘wait and see’ this year. Joining as VP of finance is Simon Zerpa, companies are moving into this space who previously led a fund through which after prices have recovered to the mid-$50/bbl range, FT reported. For example Venezuela borrowed money from China Statoil plans to expand its trading division to maximize profits from its refining, and would repay in oil and fuel shipments. storage and producing assets. Eulogio Del Pino remains PDVSA president. The conference also addressed consequences of S&P Global Platts’ recent inclusion ■■ Renaissance Oil hired Carlos of production from Statoil’s Troll field in its Brent oil price assessment. Troll production Escribano as CFO to replace Harpreet will add about 200,000 bbl/d, or 20%, to Dhaliwal, who left in January to become the basket of four Norwegian and British Once again US shale perceived to be disruption to ‘rebalance.’ CFO of Leagold Mining. Escribano grades underpinning the global benchmark. previously served as CFO for multiple Some traders support the move while others point out that the new pricing methodology publicly traded corporations active won’t reflect the different qualities of the crude, with one trader suggesting to FT that in Mexico and other Latin American they add a quality premium. countries, most recently Lucent Financial. Oil companies without trading arms “Who’s cutting and how much” was may be seeing the value of adding them. Renaissance also hired Wade Spark as also a hot topic. Production data show that operations manager for northern Mexico, OPEC members are 90% compliant with the production cut agreed to on Nov. 30 and where he will coordinate development implemented starting on Jan. 1. However, the non-OPEC agreement that followed between of the recently acquired Amatitlan Russia and 10 other major producers is not faring as well, with only 50% compliance. block. Spark has more than 30 years of Conference attendees also acknowledged the challenges posed by alternative industry experience. energy to the space, especially as renewable costs decline. But the consensus ■■ Rosneft announced on March 10 that was that rising world consumption will keep oil demand strong going forward, with Ivan Glasenberg, Glencore's CEO, and renewable energy growing alongside, not in competition with, fossil fuels. Faisal Alsuwaidi, the head of research and development at Qatar Foundation, had been nominated to its board of directors. PLS Home docFinder M&A PetroWire Learn More Help About Us Contact Us Register Log In or Sign Up Now! ■■ Royal Dutch Shell announced that Simon Henry resigned as CFO and as a director, effective March 9, and will become an employee of Shell International Ltd. view latest docFinder alert recent ˅ saved ˅ view table view slides starting April 1. Catherine Hughes and Advanced Search... 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Reset Filters Getting started with docFinder Frequently asked questions (FAQ) Advanced searching Additional help InternationalCapital 24 March 16, 2017 Analyst Takes ExxonMobil Corp. (XOM; $83.02—March 1; Equal Weight; PT-$94.00) WEST AFRICA Management says the quality of the Vaca Muerta shale resource in Argentina OFFSHORE NIGERIA FARMOUT competes with the best of any US unconventional play. XOM has a 330k acre core 1-Block. 442,071-Acres. (1,789 Km2) position and fully leveraging XTO expertise. That said, the WESTERN NIGER DELTA Miocene Agbada Formation. DV principal bottleneck preventing full development is cost, as Water Depths: ~6,561 - 8,858 Ft. D&C costs are still about 2-3 times greater than in the US. The main culprit is the 3D Seismic Data Available. SEEKING lack of infrastructure and the size of the domestic oil and gas industry overall, but SEEKING JV PARTNERS JV given the new, relatively more business-friendly government, management sounded Total Reserves: >1.1 BBOE optimistic on development prospects. —Barclays CALL AGENT FOR ADDITIONAL INFO CALL DV 5028FO PLS FOR Anadarko Petroleum Corp. (APC; $63.16—March 7; Buy; PT-$86.00) INFO Management expects to spend $960 MM in the GOM to run 2 rigs, drill 7 tiebacks, OFFSHORE NIGERIA FARMOUT 1-Offshore Block. and drill at least 1 platform well. Exploration in the GOM, Columbia, and Cote NIGER DELTA AREA DV D'Ivoire, will receive $650MM, Mozambique $120MM, and Algeria and Ghana a Multiple Leads Identified. combined $85MM. —Stifel 3D Seismic Data Available OFFSHORE SEEKING JV PARTNER Chevron (CVX; $110.26—March 13) MidCase Potential Reserves: 749 BCF We thought Chevron demonstrated a solid cash flow growth story as well as CALL AGENT FOR ADDITIONAL INFO DV 5124FO highlighting the Permian optionality. There will be underlying CFFO growth of BUYER! NO ~$2B in 2017 from the upstream and will be ~$6B of underlying FCF growth COMMISSIONS WEST AFRICA FARMOUT between ’17 and 2020. Chevron will be at least FCF neutral post 1-Block. 191,000-Acres. (773 km2) dividends/asset sales at $50/bbl, which we believe means that dividend OFFSHORE NIGERIA DV growth and buybacks are likely as oil prices approach $60/bbl, with NIGER DELTA Chevron not really seeing the need to spend FCF on significant upstream Shallow Water: <200 Ft. SHALLOW acquisitions…Its LNG projects seem to be going well with Gorgon Train III 3D Seismic Data Available. SEEKING JV PARTNER likely to come online early. —Tudor, Pickering & Holt CALL AGENT FOR ADDITIONAL INFO ConocoPhillips (COP: $47.57—Feb. 28; Overweight; PT-$62.00) DV 5092FO Management remains optimistic about the long-term global LNG supply/ SENEGAL OPPORTUNITY demand outlook. COP believes the balance will begin to shift in favor of suppliers 1-Licence. >1,200,000-Acres. >5,000km2 by the middle of the next decade. Meanwhile, due to recently colder temperatures SENEGAL-MAURITANIA BASIN DV in North Asia and Europe, near-term spot LNG prices have been stronger than the 3 Identified Prospects. 4-Way Closures. company’s expectations —Barclays Water Depths: 250-600m 2D Seismic Data Available. FARMOUT SEEKING JV PARTNER Est Reserves: ~100-200 MMBO/Prospect CONTACT AGENT FOR MORE INFO DEALS FOR DV 1796FO SALE WEST AFRICA OPPORTUNITY ~1,976,800-Acres. (8,000 km2) 1-Block. OFFSHORE SENEGAL DV CASAMANCE SUB-BASIN Various Leads & Prospects Identified. Water Depth: <65 Ft. (<20m) OFFSHORE A simpler way to track SEEKING JV PARTNER global oil & gas activity Est Recoverable Reserves: 700 MMBO CALL AGENT FOR ADDITIONAL INFO A unique tool for monitoring global DV 5095FO activity by country, project, etc. PetroWire combines a robust process, EUROPE experienced analysts, effective tools and To learn more about Petrowire, ONSHORE POLAND OPPORTUNITY leading-edge technology for extracting and call +1 713-650-1212 or 2-Licenses. 405,499-Acres. (1,641km2) DV retrieving oil and gas business information. email [email protected]. CENTRAL BASIN Multiple Gas Prospects. ONSHORE Published news documents are collected daily SEEKING JV PARTNER FOR FARMOUT wire.plsx.com from more than 700 industry-specific sources. CONTACT AGENT FOR MORE INFO DV 6692FO

Find more on the energy finance arena at www.plsx.com To learn more about PLS, call +1 713-650-1212