April 6, 2016 • Volume 08, No. 05 InternationalDeals Serving the marketplace with news, analysis and business opportunities

Exxon in talks for some of Eni’s 85 Tcf off Mozambique Rumors of big deals dominate Just days after Eni unveiled a 2016-2019 master plan targeting ~US$8 billion market as activity slows (€7 billion) in asset sales, multiple media outlets reported a deal in the works that It’s been a roller coaster of a deal could make a serious dent in that goal. The Italian energy company is in talks to sell market so far in 2016—starting slow, 15-20% WI in its multi-discovery Area 4 gas project offshore Mozambique then bursting into high gear following to ExxonMobil, according to unnamed sources. In 2013, before the oil-price the closing of the Shell/BG mega- crash, CNPC acquired 20% WI merger, and then braking to a CNPC bought 20% WI for $4.2 billion for $4.2 billion. Galp, Kogas and state- near-standstill. Only one new in 2013, albeit amid higher oil prices. owned ENH own 10% each. transaction with a disclosed In several ways, such a deal would be a perfect fit. Eni wants to raise most of its value was announced in this news cycle: 2016-2019 divestment proceeds by selling down stakes in recent discoveries while Geo-Jade’s US$395 million acquisition retaining operatorship. On a conference call, operations chief Roberto Casula said of Bankers Petroleum. In contrast, the Eni was working on a deal to reduce its 50% WI in Area 4 before making an FID and top five deals in the previous news cycle called it and the Zohr gas discovery offshore Egypt “the two possible first assets that totaled $775 million. we’re going to consider for disposal.” Meanwhile, Exxon has been gearing up for a large acquisition. Continues On Pg 6 Just one deal with disclosed value in this issue after flurry of activity. Indian producers buy stakes in major Rosneft oil projects Rosneft agreed to sell stakes worth an estimated $4 billion in two of its biggest That said, some recently announced Siberian oil projects to Indian state-owned oil and gas companies to finance further deals with undisclosed values and development efforts. A consortium of Oil India Ltd., Indian Oil Corp. and refiner rumored deals in the works may end Bharat Petroleum signed a binding agreement to acquire 29.9% WI in East up being quite large. For example, PLS Siberia’s Taas-Yuryakh project and a heads of agreement to acquire 23.9% expects Rosneft’s sell-down to Indian WI in the Vankor project farther north. In addition, top Indian producer NOCs of stakes at two key Arctic fields ONGC signed an MOU to increase its (to the left) to bring in ~$4 billion, based Vankor stake by 11% to 26%. ONGC boosts Vankor stake to 26%; on recent deals at those same fields. 3 other NOCs buy into Siberian fields. ONGC agreed to acquire an initial In addition, past transactions offshore 15% WI in Vankor last fall, at which time Rosneft CEO Igor Sechin told journalists Mozambique indicate that a rumored the Indian NOC was paying ~$1.25 billion. That implies pricetags of ~$900 million acquisition by ExxonMobil of a stake for ONGC’s additional 11% and ~$2 billion for the consortium’s 29.9%. As for Taas- in Eni’s gas discoveries could also be Yuryakh, Rosneft said the price parameters for the consortium’s buy there are similar to worth billions. Continues On Pg 3 Continues On Pg 8 those in BP’s 20% WI acquisition that closed in November. DEALS FOR SALE Chinese E&P Geo-Jade to acquire Bankers for $395 million Albania-focused oil producer Bankers Petroleum entered a definitive agreement AUSTRALIA OPPORTUNITY 1-Permit. >600,000-Acres. to be acquired by Chinese independent E&P company Geo-Jade Petroleum in a COOPER BASIN plan of arrangement valued at US$395 million. Known Structural Prospects & Leads. PP Geo-Jade will pay $1.69/share (C$2.20/share) or $443 million 2-D & 3-D Seismic Data Available. cash and assume the Calgary-based company’s $47 million SEEKING JV PARTNER SEEKING Production Rates: 500-1,000 BOPD JV working capital surplus. The cash offer is nearly double Bankers’ prior-day closing Potential Recoverable Oil: 50 MMBO price of C$1.11 on the TSX, but shares rose only ~55% the day of the announcement, CONTACT ADVISOR FOR DETAILS indicating that investors have doubts PP 1097DV about the deal going through. Nearly 100% premium for Bankers, but investors wary of little-known buyer. Bankers has 202 MMbo of 2P WEST AFRICA OFFSHORE reserves and produced 18,137 bo/d in 4Q15, almost entirely from the Patos- 3-Fields. SHALLOW WATERS Marinza oil field onshore western Albania (100% WI). Patos Marinza was NonOperated WI For Sale. PP discovered in 1928 by Anglo Persian Oil Co. and developed in stages by the Large Existing Production Base. Russians and Albanians until Communism fell in Albania in 1990. Bankers signed Low Breakeven Operating Costs. NONOP a new concession agreement in 2004 and grew production from 400 bo/d to 6,000 PLS ENERGY ADVISORS IS HANDLING CALL TO REGISTER INTEREST bo/d in 2007 by reactivating legacy vertical wells. Horizontal drilling has driven PP 5994DV subsequent production growth. Continues On Pg 11 All Standard Disclaimers & Seller Rights Apply. InternationalDeals 2 April 6, 2016 Latin America Global Petrobras’ $15 billion divestment program gains momentum DOJ sues to block merger of After going more than seven months without making a dent in its US$15 billion Halliburton/Baker Hughes divestment goal for 2016, Petrobras is reportedly in talks with several potential buyers The US Department of Justice that could bring in billions. Media outlets have reported negotiations for an offshore filed an antitrust lawsuit to block oil field and a stake in a Brazilian petrochem company, citing unnamed sources. Halliburton’s proposed US$38 billion Local E&P firm PetroRio, Russia’s LetterOne and Australia’s Karoon acquisition of Baker Hughes, which Gas have made offers to acquire’ Bauna oil field (100% WI) in the offshore has been in the works for Santos Basin, Bloomberg reports. Bauna was producing 55,000 bo/d last nearly a year and a half. September. According to the article, Bank According to the DOJ, the deal threatens of America is marketing Bauna along Multiple offers reported for offshore Bauna field & stake in petrochem firm. to raise prices and reduce innovation by with Golfinho and Tartaruga fields, which eliminating competition in markets for 23 are expected online next year. In addition, Brazilian daily Valor reports that CNOOC products. The deal would combined two is interested in acquiring a minority stake in petrochem firm Braskem from Petrobras, of the three largest service companies, which owns 36%. Reuters adds that Petrobras has also had preliminary talks with major resulting in an entity bigger by revenue international chemical companies for its stake and that Braskem’s controlling shareholder, than Schlumberger. engineering conglomerate Grupo Odebrecht, is also looking to sell out and may arrange Halliburton has proposed $7.5 billion a joint transaction. Braskem has a current market cap of ~$5 billion. in asset sales to avoid antitrust issues, These reports follow a bid in early March by Argentine power company Pampa and a revised plans presented to the DOJ Energia for a 67.2% stake in Petrobras Argentina reportedly for $1.2 billion. in January may have raised that figure even higher. However, the DOJ says the TransCanada to sell up to 49% of Mexican gas business proposed divestitures include less-valuable To help finance the US$13 billion acquisition of US pipeline operator Columbia assets that would not meaningfully Pipeline Group, TransCanada plans to sell a minority stake in its Mexican gas increase competition. pipeline business. “What we’re going to do is sell up to 49% to a passive investor or Halliburton and Baker have vowed to financial investor,” Mexico country chief Robert Jones told Bloomberg. “It will have no fight the DOJ effort, arguing that the merger impact in our ability to finish the projects we are constructing.” TransCanada has 152 will provide oilfield customers a more employees across 13 states in Mexico, where it brought in C$259 million in revenue last efficient service provider and reduce costs. year. This is expected to increase significantly for 2016 with its 530-km, 670 MMcf/d Topolobampo and 413-km, 200 MMcf/d Mazatlan pipelines coming into service. January 7, 2015 • Volume 08, No. 01 ABOUT PLS MidstreaMNews Serving the marketplace with news, analysis and business opportunities

TransCanada operates the 315-km, 500 MMcf/d Cheniere’s Corpus Christi LNG plans coming together Midstream sector a pipeline Cheniere Energy received word that FERC had approved plans for its Corpus for stability & growth Christi LNG liquefaction facility and related infrastructure. The project will have three While oil prices plunged unabashedly InternationalDeals is published every 4.5 mtpa LNG trains, giving it aggregate production capacity of 13.5 mtpa. The site throughout the second half of 2014, will also include three LNG storage tanks with capacity of about 10.1 and continue their fall as the new year Guadalajara and 365-km, 825 MMcf/d Tamazunchale/ Bcfe and two LNG carrier docks. Cheniere believes LNG exports gets underway, midstream MLPs that from the facility couldNext begin in 2018. Right MidstreamNews now, the plant is awaiting US Department operate under long-term fee-based three weeks by PLS Inc. of Energy approval to ship to markets not covered by US free trade agreements. contracts are a continued bright In the meantime, Cheniere and FERC approval obtained, awaiting spot for investors seeking both the Kinder Morgan Texas Pipeline, DOE nod to ship to non-FTA markets. stability that fixed, incremental El Sauz pipelines. It will also build and operate the Kinder Morgan Tejas Pipeline and the income brings and the growth that needs Tennessee Gas Pipeline Co. have entered a multi-year storage and 15-year transport to occur due to booming US production. TransCanadaagreement to ship gas to the proposed Corpus Christi LNGbuys plant. Under the termsColumbia Imperviousness to price swings as PLS InternationalDeals covers the active of the agreement, Kinder Morgan will provide 563 MMcfd of transportation service well as high demand for services kept and 3.0 Bcf of storage capacity to serve the 1.8-Bcfd facility. The deal could also be At least nine IPOs queued up for 250-km, 866 MMcf/d Tuxpan-Tula gas pipeline. increased to include up to 820 MMcfd of capacity if warranted. Continues On Pg 12 midstream investors so far this year. Veresen & KKR will spend billions in Montney buildout global asset marketplace with mergers, in biggest deal to date.midstream investment flowing freely last Veresen Inc. and legendary investment firm Kohlberg Kravis Roberts & Co. formed 50:50 JV Veresen Midstream into which the partners will invest more than year, particularly in IPOs. The sector $4.2 billion (C$5.0 billion) to support production in the liquids-rich Montney gas play is expected to be on pace to perform TransCanada owns 100% WI in all Mexican assets. similarly this year, staying buoyant due on the Alberta-British Columbia border. Veresen Midstream’s keystone investment divestitures, transaction, analyst comments, will be pipeline and processing assets acquired from Encana to volumes that will flow under fee-based and its Cutbank contracts, in many cases, with the MLP's Expects 1.2 Bcfd processing capacity Continues On Pg 14 Ridge Partnership JV for about $509 sponsor firm itself. & 800 miles of gathering pipes by 2018. million (C$600 million). Then, Veresen FEATURED DEALS deals in play and deal metrics. Midstream will provide compression and transportation services to the sellers for 30 years. For Encana, the transaction unlocks $412 million in value from non-core assets it could apply to drilling. For Veresen and KKR, the deal illustrates the edge non- TUSCALOOSA DRILLING PROJECT drilling companies have in picking up solid assets while financing options for cash- ~20,000-Contiguous Gross Acres. MAJORITY IN PIKE CO., MISSISSIPPI strapped upstreamers in the era of cheap oil becoming tighter. TUSCALOOSA MARINE SHALE DV The assets are in the Dawson, BC area operated by Encana both independently and Also Tangipahoa & St. Helena Ph., LA To obtain additional PLS product details, via its Cutbank Ridge Partnership JV with Mitsubishi Corp. Continues On Pg 8 169-Drilling Locations. 80-Acre Spacing. TMS SEEKING JV PARTNERSHIP; 75% NRI PLAY TransCanada’s Assets & Projects in Mexico (pre-Tuxpan-Tula)Area EURs: 600-800 MBO/Well DOT railcar regulations may need more time, study says Area Also Contains High BTU Gas. A railcar industry trade group says one-third of the oil transported out of the DV 3395L drill www.plsx.com/publications. Bakken by railcars could be forced onto trucks in the next four years. The Railway Supply Institute claims that there simply aren’t enough resources to retrofit all the OKLAHOMA MINERAL PACKAGE railcars that need to comply with new US Department of Transportation 28-Active; 5-Compl; 1-Permit; 1-WOC standards within two years, resulting in the idling of tens of thousands 985-NET MINERAL ACRES Contracted of cars. The DOT is expected to complete standards and compliance MISSISSIPPIAN & WOODFORD M deadlines for tank cars early this year 71 Active Permits Offsetting Position DOT says over 16,000 cars a year can CURRENT & ONGOING DEVELOPMENT after initial proposals made last July. 3/16ths Royalty On Most Current Leases. PLS Inc. be retrofitted, reality says 6,400-6,600. “They can’t all be modified by the Net Prod: 8 BOPD, 27 MCFD, 4 BNGLD MISSISSI- Natural Gas Investment Length Capacity deadline, and the only alternative would be to yank them out of service,” said Kevin Total Monthly Revenue: ~$58,000/Mn PPIAN Neels of the Brattle Group, which the Railway Supply Institute commissioned Woodford EUR’s: ~350 MBOE/Well for the study. Woodford EUR/Unit: 772 MBO & 4.8 BCF Mississippian EUR’s: ~350 MBOE/Well One Riverway, Ste 2500 About 75,000 older tank cars, known as DOT-111s, fall into the category requiring the upgrades as they have been determined to have the least crash-resistant components. Miss Lime EUR/Unit: 1.4 MMBO & 5.6 BCF Offers Due: January 15, 2015 Pipeline ($USMM) (KM) (MMcf/d) StatusIt was DOT-111s that crashed and exploded in Lac Megantic, Quebec in July 2013, M 2098RR killing 47 people, prompting continent-wide safety concerns. Continues On Pg 10 Houston, Texas 77056 Naranjos – All Standard Disclaimers & Seller Rights Apply. Tamazunchale 265 130 8,251 Operational since Dec. 2016 +1 713-650-1212 (Main) +1 713-658-1922 (Facsimile) Manzanillo – Guadalajara 435 310 500/3,202 Operational since June 2011 To obtain additional listing info, contact us Tamazunchale – at +1 713-650-1212 or [email protected] El Sauz 600 235 630 Operational since Nov. 2014 with the listing code. Only clients are able to receive additional information. To become a El Oro – Mazatlan 400 413 200 Expected in service late 2016 client call +1 713-650-1212. © Copyright 2016 by PLS, Inc. El Encino – 1,000 530 670 Expected in service mid 2016 Topolobampo Any means of unauthorized reproduction is Totals 2,700 1,618 2,645 prohibited by federal law and imposes fines Source: PLS Data & Analytics up to $100,000 for violations.

Find more on the A&D marketplace at www.plsx.com To learn more about PLS, call +1 713-650-1212 Volume 08, No. 05 3 A&D In This Issue North Sea & Western Europe Rumors of big deals dominate Faroe seeks opportunities to consolidate North Sea assets the market Continued From Pg 1 After running a cash-neutral budget in 2015 and ending the year with US$144 million Other negotiations are being reported (£91.5 million) in cash, Faroe Petroleum says it is well-positioned to take advantage of in the media that could lead to big oil and depressed market conditions to make selective acquisitions. In particular, the company will gas deals: by Petrobras in Brazil (page pursue North Sea acquisitions and asset swaps to consolidate existing positions. Last year 2), Shell in the North Sea (page 5) and Eni the London-listed company acquired incremental stakes in its Blane and Enoch producing once again at its giant Zohr gas discovery properties in the UK North Sea from Roc Oil for $17 million and drilled five off Egypt (page 8). exploration wells while narrowing its net loss to $83.1 million (£52.9 million). “This outcome is testament to the quality of our portfolio and our Rosneft, Eni, Shell & Petrobras put consistently prudent financial management in what remains a very difficult market,” strong assets in play to reduce debt. CEO Graham Stewart said. “Looking ahead to 2016, the business is in a good position The current news cycle has also seen to face the continuing challenges of our industry and to seek to capitalize on our a number of closings, an encouraging relative financial strength as we pursue attractive consolidation opportunities in our sign in a market where many deals have core areas on the UK and Norwegian continental shelves.” fallen apart in the face of difficult oil and gas price conditions. Particularly notable Harbour Energy pulls its buyout offer for Pacific E&P is Nigerian E&P firm Midwestern Pacific E&P lost one potential escape hatch as Harbour Energy terminated its Oil & Gas’ completion of the buyout proposal for the Canada-based South America oil producer, formerly known as $263 million acquisition of its Pacific Rubiales. EIG-backed Harbour had offered in February to buy all of Pacific’s Umusadege field partner, Mart senior notes, representing US$4.1 billion of principal out of a $5.4 billion debt load, Resources (page 7), after a larger deal for 16 cents on the dollar and had promised to overhaul management and sell assets. was canceled last August. Midwestern Earlier, it had made a joint bid last May with Mexican industrial conglomerate Alfa to had to get creative to put together the buy Pacific but called off the $5.5 billion deal due to investor pushback. capital for this deal, bringing in San Leon Harbour canceled its offer Energy to take over Mart’s interests one day after Pacific extended South America producer considered six proposals to avoid bankruptcy. in another Nigerian producing license a forbearance agreement with 40% of acquired in late 2014. its bondholders from March 31 to April 29. Pacific has interests in more than 85 oil and gas blocks in Colombia, Peru, Guatemala, Brazil, Guyana, Papua New Guinea, Successful closings encouraging after Mexico and Belize. The company produced 159,800 boe/d (94% oil) in 4Q15. price pressure killed other deals. The Harbour deal was reportedly one of six buyout possibilities Pacific was The biggest recent deal to close considering to avoid bankruptcy. According to a December 31, 2014 • Volume 06, No. 15 was the $1.2 billion acquisition of a mid-March story in The Wall Street Journal citing InternatIonalCapItal Serving the marketplace with news, analysis and business opportunities stake in Novatek’s Yamal LNG project Analysts assess project risk at various price points Petrobras scandal, possible unnamed sources, these included an offer from In perhaps the most extreme prognostication to date, Goldman Sachs analysts default spurs lawsuits say $1.0 trillion in projects could fall by the wayside as $60/bbl Brent renders certain The ongoing investigation into the higher-priced projects around the world unprofitable. Projects aggregating $930 Petrobras scandal could soon have billion worth of future investment were no longer profitable with Brent at $70/bbl, the implications outside Brazil. That’s by Chinese investment fund Silk Road Pacific’s management and a debt-for-equity swap that investment bank said, and that $10/bbl less would push that number to the $1.0 trillion because the company and its executives Nextmark. The Goldman analysisInternationalCapital looked at 400 of the world's largest new fields have been named excluding US shale. as the target Goldman estimates that more than Led by Canadian oil sands $1.0T in projects are at risk at current prices. of a new, $98-billion US class-action projects at $80/bbl and certain US shale lawsuit alleging Petrobras made material Fund (page 13). China has largely would have included $500 million in fresh financing. plays and other tight oil plays at $76, Energy Aspects say more than 12% of global oil misstatements about the value of production would be uneconomic if the majors were to move forward on existing projects at today’s prices. Brazil’s deepwater fields just wouldn’t be worth the expense at $75 and S&P says Petrobras would be junk- rated if not for government support. PacificMexican projects would cease to beE&P profitable at $70. Thebondholders group told the Financial Times agree it believes 1.5 MMbopd of the world’s planned 2016 projects are at risk at $70 and that its assets. The suit, filed in Manhattan’s slowed down its once-frantic search for The offers were due March 23. The proposals were over 1.0 MMbopd of 2017 projects are chancy at that price point. Continues On Pg 4 federal court on behalf of the city Oil prices the scourge of noted investors in 2014 of Providence, Rhode Island by the Labaton Sucharow law firm, toSome forbear of the world’s most astute and followedfurther. investors couldn’t escape the grip covers all securities Petrobras sold that a slumped oil price had on various securities during 2014, and has given the since 2010: including debt issued by $2.8 trillion hedge fund sector its worst year since 2008. Most notable is the loss Petrobras International Finance Co. overseas assets, and most recent activity being evaluated with Pacific’s adviser, Lazard. incurred by legendary activist investor Carl Icahn courtesy and Petrobras Global Finance from of his investment in Talisman Energy, now prepping for a February, 2012. Continues On Pg 12 Repsol takeover (see story on page 7). After accumulating more than 7% of Talisman’s shares and gaining board seats has been by private companies and and influence in the company, the golden Icahn touch was no match for oil prices FEATURED DEALS this year—his almost $900 million investment was down $540 million until Icahn's investment was down 40% at TUNISIA PROJECT one point before rebounding somewhat. the Repsol offer and the resulting share 1-Permit. 556,481-Acres. (2,252km2) GHADAMES BASIN price boost cut his losses down to $286 million. His company’s total portfolio was Contains One Discovery. FO investment funds rather than big state- up 4.4% through the end of Q3, filings show. Looking at his Talisman experience, 8 Identified Leads: Silurian Sandstone Icahn told the Wall St. Journal: “In this oil environment, I’m certainly glad a bidder Seismic Data Available. came along for it. Continues On Pg 6 Also Re-Entry Project for 2-Wells. RE-ENTRY One New Upstream Deal with Disclosed Value in this IssueSEEKING JV PARTNER FOR --- --EXPLORATION PROGRAM. Oil-linked contracts put many LNG projects in limbo Est Mean EUR: 57 MMBO owned oil companies CNPC, CNOOC While BG Group celebrates the loading of the first commercial cargo at its Gladstone Est Total In-Place Reserves: 385 MMBO LNG plant on Queensland’s Curtis Island, the current pricing climate has already altered Exploration Term Expires April 2016. CA Required To View Data Room. the fate of the Pacific NorthWest LNG megaproject in Canada and may affect investment CONTACT AGENT TO LEARN MORE Valuedecisions in other large-scale LNG projects worldwide. While not an oil FO 1022DV drilling project, conventional or otherwise, the $32 billion, multi-partnered and Sinopec. Russia is one country Petronas-led effort has been put on hold as the Malaysian NOC defers a final OFFSHORE AFRICA FARMOUT investment decision on the gas project with a list of entirely Asian prospective customers 1-PSC. 420,079-Acres. (1,700km2) that are used to paying for LNG based on SENEGAL & GUINEA-BISSAU Date Buyer Seller ($MM) TypeLNG prices in Asia now below LocationAGC MARITIME COMMISSION ZONE DV oil-indexed contracts. $10/MMbtu, disturbing to profitability. Contains One Identified Prospect. With the drop in crude, LNG prices Shallow Water: 328 Ft. (100m) where China still remains a very active landing in Asia have now sunk below $10/MMbtu, down from $16/MMbtu as recently 3-D Seismic Data Available. SHALLOW as April 2014. In North America alone, nearly 40 mtpa of LNG projects are under 40% WORKING INTEREST AVAILABLE Estimated Reserves: 475 MMBO construction with another 30 mtpa expected to reach FID in the next twelve months. CA Required To View Data Room. 3/20 Geo-Jade Petroleum Bankers Petroleum $395In Australia, LNG breakeven Corporateprices are $13-$14/MMbtu. Globally, as with oil, LNGAlbania CALL AGENT FOR MORE INFORMATION buyer, and the Rosneft deals with ONGC, landed prices will adjust to market dynamics. Continues On Pg 10 DV 5234L All Standard Disclaimers & Seller Rights Apply. Oil India Ltd., Indian Oil Corp. and Top Five New Upstream Deals in Previous Issue Bharat Petroleum suggest that it may 2/20 Rosneft PDVSA $500 Property Venezuela be the latest battleground between China and India in the deal market. 3/7 Reach Energy MIE Holdings $155 Property Kazakhstan 3/8 Greenfields Petroleum Baghlan Group $64 Property Azerbaijan 3/3 GBC Oil TransAtlantic $32 Acreage Albania www.plsx.com 2/29 Sona Petroleum Santos, Quadrant $25 Property Australia Call to advertise! Total $775 For options, call +1 713-650-1212. Note: Based on deals with disclosed values. Source: PLS Data & Analytics

For general inquiries, email [email protected] Access PLS’ InternationalDeals archive for previous A&D news InternationalDeals 4 April 6, 2016 North Sea & Western Europe People & Companies Oman’s Petrogas closes North Sea purchase from PA Resources • Calgary-based Brazil onshore PA Resources completed the sale of its North Sea assets to Oman-based Petrogas explorer Alvopetro Energy announced E&P. The transaction announced Feb. 9 consisted of 24% WI in Dana Petroleum- the departure of COO E. John Koch, who operated Danish license 12/06 containing the 2011 Broder Tuck and Lille John has joined oil and gas consulting firm discoveries as well as exploration licenses in the UK, Germany and the Netherlands. Enerdrill, also in Calgary, as president. The discoveries add net 2C contingent resources of 11.27 MMboe (52% oil, 11% An industry veteran with more than 30 condensate) to Petrogas’ producing field off the Netherlands and other years of experience primarily in drilling assets in Oman, Egypt operations, Koch joined Alvopetro in 2014. PA also in talks with multiple bidders and Somaliland. The company has not named a replacement. for its Tunisian fields & prospects. Petrogas is paying for the acquisition • Australia’s AWE Ltd. hired David in tranches, of which one has been paid and the second is expected by April 21. PA will Biggs to succeed CEO and managing use the proceeds to repay creditors in accordance with a reorganization plan adopted in director Bruce Clement starting in May. October. Stockholm-based PA decided in November to delist and sell all its assets after Clement said last October he planned to a seven-month strategic review. Outside the North Sea, it operates multiple oil and gas step down. Biggs joins from Cue Energy, fields in Tunisia with 3Q15 working-interest production of 1,100 boe/d (~70% oil) and where he was CEO for the last three years of has operated and non-op stakes in exploration blocks there and in Congo-Brazzaville. a 35-year upstream career across The company is in talks with a number of bidders for the Tunisian assets. Australia, New Zealand and the Americas. He spent 18 years at Cluff to acquire Verus stakes in UK North Sea oil prospects BHP Billiton, rising to the positions of London-based Cluff Natural Resources signed heads of terms to acquire up to commercial VP and land and upstream the entire 25% stake owned by Verus Petroleum in three exploration licenses off the agreements VP in Houston. Meanwhile, UK. Under the agreement, Cluff will initially acquire 5% WI in licenses P1944 and Cue appointed Grant Worner as chairman, P2156 in the Outer Moray Firth, with an option to increase its stakes to 25%. These which will temporarily be an executive licenses contain the Fynn and Penny prospects below shallow Tertiary sands known position so he can serve as interim CEO. to contain heavy oil. There is also an option to acquire 25% WI in license P2082 • Chevron named Mark A. Nelson, the containing the Skerryvore prospect in the Nominal £1 price for initial 5% stakes president of its International Products unit, central North Sea. & for options, plus P&A obligations. to replace Joseph M. Naylor as corporate All the licenses are operated by The strategic planning VP effective April 1. Parkmead Group, which estimates potential for 400 MMbo of gross recoverable Naylor was named policy government oil. Fynn and Skerryvore are drill-ready with a well expected on each within 12-24 and public affairs VP in February. In his months. Terms call for Cluff to pay nominal consideration of £1 for the initial stakes and new role, Nelson will set the supermajor’s option agreements. strategic direction, allocate capital and Cluff’s existing assets consist of five exploration licenses with gas potential in determine performance measures and the southern UK North Sea. Also focused on the UK North Sea, Verus was formed targets. He joined Chevron in 1985. when Stavanger private equity firmHitecVision took London- and Oslo-listed Bridge • Gulf of Mexico and West Africa Energy private in 2014. explorer Cobalt International Energy announced that EVP and COO Van P. Couche-Tard gets green light for Shell Danish retail buy Whitfield will resign from his current Canadian convenience store operator Couche-Tard won European Commission roles June 30, after which he will continue approval for its acquisition of Shell’s Danish retail business, subject to divestment as a special adviser to the company for commitments. Closing is expected in May. Announced in March 2015, the six months. Whitfield joined Cobalt acquisition includes 315 fueling stations: 140 owned by Shell, 115 leased as operations EVP in May 2006 and and 60 dealer-owned.Couche-Tard plans to finance the buy with available was promoted to COO in 2011. He has cash and existing credit facilities. Includes 315 fueling stations, but EC overseen multiple deepwater discoveries The European Commission is is letting Couche-Tard retain 131. by the company as well as the setting of allowing Couche-Tard to retain 90 of its HSSE, drilling performance and other the Shell-owned and 41 of the leased sites, which would increase the company’s operating standards. Cobalt has not yet Danish network to 286 sites. Couche-Tard plans to divest a mix of its existing named a replacement. assets and Shell-branded stations as well as Shell’s commercial and aviation fuels businesses in Denmark. In February, the company closed the acquisition of Topaz Energy Group Ltd. in Find it now! Ireland. Topaz owned 444 service stations, 158 of which were operated, as well as 30 Learn how at plsx.com/finder commercial fuel depots and two owned terminals.

Find more on the A&D marketplace at www.plsx.com To learn more about PLS, call +1 713-650-1212 Volume 08, No. 05 5 A&D People & Companies North Sea & Western Europe • Norwegian E&P firm Det Norske Ex-Centrica CEO eyes Shell’s North Sea fields appointed Aker president and CEO Oyvind A ~US$5 billion investment fund created last summer by former Centrica CEO Eriksen as its new chairman and also added Sam Laidlaw is in talks to acquire North Sea assets from Shell as the supermajor revs Trond Brandsrud to its board to replace up its $30 billion divestment drive after closing its mega-merger with BG. Laidlaw’s recently resigned chairman Sverre Skogen Neptune Oil & Gas told The Independent it is in talks with BofA Merrill Lynch, and board member Arentz which was hired to sell a portion of Shell’s North Sea holdings. The specific assets for Rostrup. Erikson also serves as sale have not been made public. Neptune told the Financial Times that the Shell assets chairman of Aker Solutions were among a number of acquisition and Aker Kværner Holding. Brandsrud opportunities it was reviewing. Plans a deal or two totaling $5 billion to build 75,000-100,000 boe/d firm. is CFO of Oslo-based credit management Neptune is backed by firm Lindorff. Also on the board, Lone private equity giants CVC Capital Partners and Carlyle Group and on Olstad and Bjorn Thore Ribesen replaced the hunt for distressed assets in the North Sea, North Africa and Southeast Asia. It is Gudmund Evju and Kristin Gjertsen as aiming to close one or two deals amounting to ~$5 billion by mid-2017 as it works to employee representatives. build a mid-sized E&P company with 75,000-100,000 boe/d of production. Laidlaw • Africa-focused Erin Energy launched the venture in June after serving as CEO of Centrica from 2006-2012, during chairman and CEO Kase Lukman Lawal which time he built up the company’s oil and gas business in the North Sea. Both BG will retire following the company’s annual and Centrica emerged from the 1997 de-merger of British Gas. stockholders’ meeting scheduled for late May. Independent Oil & Gas continues North Sea consolidation Lawal founded Erin’s Privately held Alpha Petroleum Resources is in advanced negotiations to sell its predecessor, Camac Energy, in 1986. John operated 50% WI in the southern UK North Sea license containing the undeveloped Hofmeister, former president of Shell’s US 1966 Blythe gas discovery to London-listed Independent Oil & Gas, which owns the subsidiary Shell Oil Co. and an Erin board other 50%. The discovery on license P1736 has gross 2P reserves of 34.3 Bcf with an member, has been appointed to take Lawal’s estimated condensate yield of 10.5 bbl/MMcf. It was awarded to Alpha and IOG in place as chairman, while COO Segun 2010 and is planned for development via a horizontal tri-lateral well with a first-gas Omidele will be promoted to the CEO target of 2Q17. Independent is still Chasing Alpha’s 50% Blythe stake position. Omidele joined the company as after $18 million Skipper buy last year. E&P SVP in 2011 and was appointed COO working to close a 2014 deal last September. Omidele also has Shell to acquire Swift Exploration’s 100% WI in license P1737 containing the 2007 Cronx credentials, having worked for 28 years at gas discovery 14 km northwest of Blythe for ~US$780,000 plus contingent payments subsidiaries in Nigeria, the UK and the US. depending on field performance. The companies have pushed back the closing deadline • Hawkley Oil & Gas announced the multiple times, most recently to Sept. 30. Independent estimates Cronx to have at least appointment of Piers Lewis to its board. 17.6 Bcf recoverable. Lewis has more than 18 years of financial Last year, Independent acquired Alpha’s 50% WI in license P1609 containing the 1990 and corporate experience and serves Skipper oil discovery for $18 million, boosting its stake to 100%. Located in the northern as a director and secretary for several UK North Sea, Skipper has gross 2C contingent resources of 26.2 MMbo and requires Australia-listed companies. Hawkley one appraisal well to determine optimal field development. If the Cronx and Blythe deals struck a deal in February to sell its entire both go through, Independent will have 100% WI in all five of its North Sea licenses. asset base, located in Ukraine, and has now hired Merchant Group to seek Schlumberger acquires UK toolmaker Meta Downhole acquisition opportunities for the company Schlumberger will acquire UK oilfield toolmaker Meta Downhole. Meta and a placement to support them. specializes in downhole metal-to-metal isolation tools for well-integrity applications. • Southeast Asia-focused KrisEnergy The applications include improving structural and casing integrity, sealing tiebacks in named Keppel CFO Chan Hon Chew to new wells, isolating selected zones, facilitating slot recovery or its board to replace Loh Chin Hua, who assuring P&A integrity. Meta’s proprietary technology conforms stepped down March 17. Chan will serve the shape of its tools to the geometry of the wellbore casing or liner, forming permanent on the Singapore-based isolation barriers that are gas-tight, axial load- company’s remuneration bearing and compliant. January 2, 2015 • Volume 04, No. 16 OilfieldServiceS Serving the marketplace with news, analysis and business opportunities

and investment review Meta is the third service company Schlumberger Assessing the service sector damage Technip spies other deals Prognosticators parse impact of crude plunge on services after withdrawing CGG offer With crude now down about 50% from its summer highs and E&Ps slashing capex Technip has formally withdrawn left and right, some sense of the impact on the service sector is starting to come to light. efforts to take out fellow French seismic acquired since it struck a US$14.8 billion deal in Fortunately, with ongoing projects unlikely to have their plugs pulled, there is still leader CGG following the rebuffing of committees. Chan joined shipbuilder probably a month or two of “full steam ahead, ” but some time next quarter activity an unsolicited $1.83 billion cash bid decreases should beginNext to be more heavily OilfieldServices felt, and it is worthwhile to examine who for the company by is best and worst positioned, how large the damage is likely to be, and how long a Technip. The offshore trough could last. E&C leader said that PacWest sees frac demand & pricing As for fracking, August to acquire Cameron. It also completed down 8% next year. following CGG’s refusal, Technip Keppel in February 2014 after eight years PacWest Consulting recently did a deep proposed a number of alternate options dive conference call on its expectations, and the firm anticipates an 8% demand (as to a tender offer, but said these efforts measured by hp) and price cut next year in US land. The drop represents a 12% were similarly unfruitful. In a separate Schlumbergerdecline in the number of horizontal wells fracked, offset somewhatcloses by the continued $15 billion CGG deal dead in water; company a land rig manufacturing JV in December with shift toward more sand, stage-count and HP-intensive fracs. That said, frac stages are cited opportunism by Technip. at finance SVP at Singapore Airlines. Loh still expected to decrease 6%. Continues On Pg 8 GE guides down for oilpatch efforts in pivotal 2015 statement, CGG said that none of the Cameron acquisition. proposed options created value for the General Electric is positioning to weather the downcycle with stoicism while company, and The Financial Times picking up new business, and businesses, along the way. GE is calling 2015 a “pivot” reported that board members viewed the Germany’s Bauer Group. year, as it digests the massive ~$15 billion acquisition of Alstom’s power assets also joined Keppel in 2014, as CEO. offer as opportunistic in light of lower oil (closure in Q2), raises proceeds from non-industrial, non-core asset sales and cuts prices. Regardless, CGG asserted it was costs to mitigate the impact of cheaper oil. GE anticipates industrial profits in position to weather current difficult up 10% or more next year, but Oil & Gas segment sales & profits market conditions. Continues On Pg 12 as for oil and gas specifically, projected down 0-5% next year. while the division saw $4.9 billion in orders in Q3, it is already seeing headwinds. GE cut its growth outlook from high FEATURED DEALS single- to low double-digit growth down to mid-single digit expectations. CEO Jeff For general inquiries, email [email protected] Access PLS’ InternationalDeals archive for previousTUSCALOOSA A&D DRILLING PROJECT news Immelt called crude pricing issues a short term industry challenge. The company now ~20,000-Contiguous Gross Acres. hopes to keep oil and gas profits and revenues fairly flat through cost controls, although MAJORITY IN PIKE CO., MISSISSIPPI acknowledging that they very well may slide as much as 5%, particularly under capex TUSCALOOSA MARINE SHALE freeze scenarios. Its exposure to the space is more geared toward production and less Also Tangipahoa & St. Helena Ph., LA DV than peers on more volatile onshore unconventionals. Continues On Pg 6 169-Drilling Locations. 80-Acre Spacing. SEEKING JV PARTNERSHIP; 75% NRI TMS 2-D Seismic Available PLAY Canadian service firms give signs of things to come Area EURs: 600-800 MBO/Well In an early indicator of where service capex budgets are headed in the Lower 48 as Leases Expiring in 2018-2019 they are announced in coming months, Canadian service firms have been announcing DV 3395L drastically reduced 2015 spending plans and newbuild construction halts in anticipation ALASKA ROYALTY ACREAGE of lower producer cash flows. Many of these firms also have US operations, for 15,930-Gross/Net Acres. even better visibility on things to come. Number one Canadian driller Precision UPPER COOK INLET BASIN Drilling cut next year’s budget KITCHEN LIGHTS UNIT (N. BLOCK) RR Precision cut its 2015 budget 44% to Miocene Tyonek & Oligocene Hemlock 44% to C$493 million from 2014’s C$885 C$493 million from 2014’s C$885 million. million and idled its new rig construction Deep Sands: 11,000-16,500 Ft. Multi Pay Intervals Present program “until we see an improved commodity price environment and rising customer ~4.45% ORRI In Leases. newbuild demand,” said CEO Kevin Neveu. The 2014 plan is also being cut slightly Offset Well Tested Over 5,000 BOPD ORRI from a prior C$908 million. Precision will complete 16 currently under construction rigs, -- From Tyonek Deep Channel Sands. 15 headed for the US and one for Kuwait, but is planning no further deliveries next year. Estimated Project Reserves: 89 MMBO 3rd Party Reserve Report Available. Precision is trimming excess fat for leaner times as well, announcing it has sold Continued Development by Furie. its US coiled tubing assets for C$44 million cash to an undisclosed buyer. As of YE13, CALL SELLER FOR DETAILS Precision’s C/T fleet consisted of eight units in the Marcellus and Bakken shales, and RR 5100 Peters & Co. believes the price tag represented replacement cost. Continues On Pg 10 All Standard Disclaimers & Seller Rights Apply. InternationalDeals 6 April 6, 2016 Africa Middle East & North Africa Exxon in talks with Eni over Mozambique Continued From Pg 1 Lukoil may take 20% stake Plans have been in place for more than a year, and Exxon is sitting on an impressive in Eni’s giant Zohr gas find stockpile of treasury shares with which to fund it; it is also willing to take on additional On a conference call regarding Eni’s debt to grow its portfolio. An acquisition would be the easiest way for Exxon to add 2016-2019 master plan, operations chief reserves after failing to replace all of its oil Roberto Casula identified the production last year for the first time since Would be Exxon’s first big buy of the down cycle, help replace reserves. Zohr discovery offshore Egypt 1994. (Actually, it as one of the first projects in replaced only 67%.) Top execs have said the company is looking which the company plans to sell a minority at potential bolt-on acquisitions as well as entry to new plays that offer synergies with its stake as it works toward a ~US$8 billion existing operations but is not interested in corporate transactions. This would be Exxon’s divestment goal. Now Italian daily La first major acquisition since the beginning of the oil-price crash; so far it has stuck to Repubblica reports that Russia’s Lukoil is incrementally increasing its US Permian Basin position. negotiating to acquire 20% WI in the giant The supermajor made its debut in Mozambique last October, winning three of gas find, citing unnamed sources. the four offshore blocks offered in the East African country’s fifth license round with partner Rosneft: A5-B in the Angoche Basin and Z5-C and Z5-D in the Zambezi Delta. Up to 30 Tcf in place under fast-track Future discoveries on these blocks could development to reach first gas by YE17. Exxon won big in Mozambique’s Oct. potentially be tied into developments Eni was awarded the deepwater offshore round, taking 3 of 4 blocks. planned for Eni’s Area 4 and/or Shorouk block in 2013, and last August Anadarko’s adjacent Area 1. Exxon is already active in East Africa with a 35% stake its Zohr 1X NFW exploration well hit in multiple Statoil-operated gas discoveries offshore Tanzania. The partners have been a 2,067-ft hydrocarbon in Miocene considering potential LNG development options for the gas. carbonates en route to a 13,553-ft TD Eni got a green light from the Mozambican government in February to proceed in 4,757 ft of water. Based on well and with its initial 5 Tcf development plan for the Coral discovery—the first environmental seismic data, Eni estimates up to 30 Tcf of approval for any project in the Rovuma lean gas in place over a 100-sq-km area, Basin. Coral contains 16 Tcf out of the Initial 5 Tcf Coral stage wins regulatory approval; FID coming this year. making Zohr the largest gas discovery 85 Tcf in place Eni has discovered in the ever in Egypt and the Mediterranean Sea. basin. The company plans to make an FID later this year for the development plan, In February, the Zohr 2X appraisal which calls for six subsea wells producing to a 3.4 mtpa floating LNG facility. If it well was drilled 1.5 km to the southwest goes forward, Eni expects Coral and pre-FID costs for the nearby Mamba discoveries and downdip of the discovery well and hit a to run ~$6 billion (€5.3 billion) over the next four years. continuous 1,614-ft hydrocarbon column, In December, Eni and Anadarko finalized a unitzation agreement for the Mamba- confirming Zohr as a single continuous Prosperidade complex straddling the boundary between Areas 1 and 4, with initial gas accumulation. Then in March, the development to be carried out in separate but coordinated processes until each side appraisal well flowed a constrained rate reaches 12 Tcf of reserves. Subsequent reserves will be jointly developed on a 50:50 basis. of 44 MMcf/d on production test, leading Eni to estimate deliverability of 250 Eni Targets Recent African Discoveries for Partial Stake Sales MMcf/d. Eni plans three more appraisal wells this year to fully delineate the field. Egyptian authorities have approved a fast-track development program for Zohr to deliver first gas by the end of 2017. An accelerated start-up phase with six wells producing 1 Bcf/d will be followed by a ramp up to 2.7 Bcf/d from 20 wells by 2019. Construction has already begun on an onshore gas-treatment plant, and bids for offshore contracts are nearly complete.

January 29, 2016 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? 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 developmentInternational project, which lies 350 km northwest Scoutof Luanda, and its start- Marchmastheads for our 11 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. Approved in 2010, West Hub reports, where we have Eni appraisaltaps or will tap Block 15/06’s encounters Start of Mpungi will bring West Hub 305 to been m publishing net Regional pay, 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 Source: Eni October 15 Presentation via PLS docFinder www.plsx.com/finder confirmsLower-Middle Miocene formations Zohr that feature normalpotential pressure and temperature ranges.off Ford. TheEgypt. new name is also an effort to 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 the good times will roll 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 Find more on the A&D marketplace at www.plsx.com ToPremier learn expands more Falklands potentialabout with IsobelPLS, Deep call re-drill +1last April, 713-650-1212 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 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 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 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 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. Volume 08, No. 05 7 A&D Africa Eni makes buy-side moves in Nigeria & Morocco Midwestern closes $263MM In a 2015 operational report released at the end of March, Oando disclosed a acquisition of partner Mart US$90 million agreement to sell its 15% WI in the OML 125 and 134 licenses offshore Nigeria to operator Eni, boosting the Italian energy company’s ownership to 100%. In The second time was the charm for exchange, Eni will pay $5.5 million cash and erase Oando’s $84.5 million in cash-call Nigeria’s Midwestern Oil & Gas, which liabilities. The deal was signed in December; closing is subject to lender and closed its US$263 million acquisition of regulatory approval. Toronto-listed Umusadege field partner Oando had 4Q15 net Oando gets $18 ppboe/g or Mart Resources after calling off a QPi $28,600 ppboe/d. production of 3,148 bo/d from OML 125’s larger offer amid financial difficulties Abo field, which came online in 2003. The license also contains the undeveloped Abo last August. To complete the deal, North discovery and 13 identified prospects. Oando has net YE15 proved reserves of Midwestern paid ~$0.18/share (C$0.25/ 5.05 MMbo on the block. OML 134 contains three undeveloped discoveries (Oberan-1, share) or $62.7 million and assumed Mart’s Oberan-2 and Minidiogboro), two single-well discoveries (Engule and Udoro) and nine $200.5 million debt. Located on license identified prospects. Both licenses lie in 550-1,100 ft of water. They have combined OPL 283, Umusadege produced 16,340 gross contingent resources of 2.7 MMboe unrisked and 1.5 MMboe risked. bo/d in December and is being developed Eni also agreed to farm into Chariot Oil & Gas’ unexplored Rabat Deep permits by Midwestern and Suntrust Oil under I through VI offshore Morocco. To earn an operated 40% stake, the Italian energy Nigeria’s marginal fields program. company will carry Chariot on a deepwater well at the 3D seismic-defined JP-1 oil As part of the deal, San Leon Energy prospect as well as geological and administrative costs related to the next license will acquire up to 9.72% WI in Nigeria’s period and pay back costs. The Jurassic structure has mean-case prospective resources producing OML 18 license, which Mart, of 768 MMbo. The deal will leave Chariot with 10%; Woodside Petroleum and state- Midwestern and Suntrust acquired from owned ONHYM retain 25% each in the permits, which lie in 150-3,500 m of water in Shell, Total and Eni in late 2014. San the Northern Atlantic Margin. Leon has placed $73 million in escrow for an initial 4.05% stake in OML 18 and can pay up to $100 million more to earn Chevron marketing South African downstream business the full 9.72%. As part of a US$5-10 billion divestment program for 2016 and 2017, Chevron is reportedly working with investment bank Rothschild & Co. to sell its South African unit. Mart Resources Share The supermajor listed its South African downstream business among assets targeted for monetization in a March 8 presentation, along with New Zealand marketing, Hawaiian of Umusadege Field downstream, US Gulf of Mexico shelf and Western Canadian gas-storage operations. 3Q15 3Q14 According to a Bloomberg story citing unnamed sources, the South Africa sale Mart’s share of the Umusadege field: includes Chevron’s assets in Botswana and indicative bids may come this summer. Barrels of oil 767,680 438,247 produced & sold Chevron owns 75% equity in the South African business, the remainder Average sales price of which is owned by employees and a consortium of local partners. The business unit $56.07 per barrel $108.56 operates a 110,000 bo/d refinery in Cape Town and has a stake in a lubricants plant Mart’s percentage share in Durban. It also has a network of more than 845 Caltex-branded service stations, 50.0% 82.5% of total Umusadege making it one of the country’s top five petroleum brands. Funds flow from continuing production $20,009 $33,114 operations ($M) Chevron Targets $5-10 Billion in Asset Sales for 2016-2017 Per share – basic 2014 – 2017 proceeds (continuing $0.056 $0.093 $ Billions Successful program operations) $ 11.5 Net income/(loss) Target •Well-timed transactions $ ~$5–10 from continuing $931 $7,362 6.0 Downstream & • Captured good value operations ($M) Chemicals / Other Loss from discontinued - Caltex Australia operations ($M) ($1,333) West Texas LPG

Net income/(loss) for In public domain: $931 $6,029 New Zealand marketing Divestment criteria the period ($M) Upstream Hawaii downstream $ • Non-strategic fit Earnings/(loss) per share from continuing 5.5 Gulf of Mexico shelf operations Western Canada Chad gas storage facilities • Unable to compete Duvernay Per share – basic ($0.003) $0.021 Nigeria South Africa downstream for capital

Per share – diluted ($0.003) $ 0.021 2014 – 2015 2016 – 2017 • Receive fair value Source: Mart Resources 3Q15 MD&A, Nov. 13, 2015 Source: Chevron March 8 Presentation via PLS docFinder www.plsx.com/finder

For general inquiries, email [email protected] Access PLS’ InternationalDeals archive for previous A&D news InternationalDeals 8 April 6, 2016 FSU & Eastern Europe Asia Indian producers buy stakes in Rosneft oil Continued From Pg 1 Rosneft nears finish line for Multiple media sources valued that transaction at $750 million when it was 49% Essar Oil equity buy announced last summer, implying $1.1 billion for the current Taas-Yuryakh deal. During a visit to India where However, a Reuters story citing an unnamed source put the deal value higher at $1.7 he signed deals with state-owned billion. The source also said the Indian companies plan to spend $180 million each on companies to sell stakes in major future Taas-Yuryakh capex. Siberian oil projects, Rosneft CEO Igor After Rosneft and ONGC announced their second Vankor deal, the Russian Sechin also advanced negotiations with government approved the Indian NOC’s initial 15% acquisition, which is the Essar Group regarding expected to close soon. Vankor is not ONGC’s first Russian acquisition: The Indian the acquisition of a 49% equity NOC is already partnered with Rosneft on the ExxonMobil-operated Sakhalin-1 stake in refiner Essar Oil Ltd. project in Russia’s Far East, with both companies owning 20% stakes. ONGC also The companies signed a non-binding owns West Siberia producer Imperial term sheet for the acquisition last July Energy Corp., which it acquired in 2009 $4 billion estimate based on reported values for recent BP & ONGC deals. and aim to close it by the end of June. for $2.1 billion. The deal will give the Russian producer If all of the deals go through, Rosneft will retain 50.1% WI each in Vankor and access to the energy-hungry Indian Taas-Yuryakh. The Taas-Yuryakh project is developing the Srednebotubinskoye oil market, which imports 80% of its oil. and gas condensate field, which has current gross production of 20,000 bo/d from 51 wells. Field reserves total 975 MMbbl of oil and condensate along with 4.8 Tcf of Essar owns India’s 2nd-largest refinery, gas. The partners plan to increase output to a peak of 100,000 bo/d in 2021 and build one of the world’s most complex. infrastructure for further exploration and Rosneft will begin delivering ONGC already active in Russia via development in the region. Sakhalin-1 & Imperial Energy Corp. crude this year to Essar’s 400,000 bo/d The Vankor project encompasses the Vadinar refinery in Gujarat under a 10- Suzunskoye, Tagulskoye and Lodochnoye oil fields in the Krasnoyarsk territory that year, 200,000 bo/d agreement signed began commercial production in 2009 and had 2015 gross output of 568,000 boe/d in December 2014. The refinery is (75% oil). Recoverable resources total 3.37 Bboe. India’s second largest and one of the With the Vankor acquisitions, the Indian companies will gain entry to one of most complex in the world with a Russia’s most technically sophisticated upstream projects with advanced drilling Nelson complexity index of 11.8. It has techniques and fully automated production processes and lifting costs that Rosneft processed more than 75 varieties of crude boasts are among the lowest in the industry. They will also expand their access to Asia- including tough heavy and ultra-heavy Pacific markets: Vankor is a key supply source for Transneft’s East Siberia Pacific oils and has access to a deepwater port Ocean pipeline, which exports Russian that accommodates VLCCs. crude to China, South Korea and Japan. Taas-Yuryakh producing 20,000 bo/d, A modernization plan is being targeting 100,000 bo/d peak by 2021. Rosneft has been forced to look implemented to increase capacity to eastward for investments and economic funding as Western sanctions imposed over 500,000 bo/d. In addition to the refinery, Russian involvement in the Ukraine have closed off access to European and North Essar Oil owns a network of 2,000 American capital. The company has been selling assets to pay down debt incurred fueling stations in India, which it plans from its $60 billion acquisition of to expand to 5,000 within the next Vankor offers low lifting costs, cutting- TNK-BP in 2013. two years to take advantage of retail- edge tech, access to Chinese markets. For India, the acquisitions come price deregulation. amid a drive by Prime Minister Narendra Modi to cut oil imports by 10% in six years. The government is pushing foreign oil and gas acquisitions to capitalize on low prices Controlling Ruia family reportedly in while rival China takes a break from its overseas buying spree of the last several years. talks with traders to sell another 26%. Rosneft has held talks with Chinese investors interested in buying stakes in both In addition to the Rosneft deal, the Vankor and Taas-Yuryakh. conglomerate’s controlling Ruia family Rosneft gets development capital & Following the signing ceremony in has also initiated talks to sell a 25% stake cash to pay down debt, India in buy mode. New Delhi, Sechin praised the deals as a in Essar Oil to international trading firms step-change for Russian-Indian cooperation in the energy sector. “The cooperation and other investors, according to a story formula, designed at the corporate level, is aimed at the creation of a vertically integrated in Indian business daily The Economic model allowing India partners to participate in the upstream sector while opening the Times citing unnamed sources. Together, growing India market to Rosneft,” Sechin said. “The reached agreements represent a these deals will reduce the Essar Group’s shift from energy dependency to energy partnership of both countries.” Sechin also debt by 40% but leave the Ruia’s with just said the Taas-Yuryakh deal will facilitate significantly accelerated development “as a 26% stake in Essar Oil, currently the well as open new prospects for marketing the East Siberian hydrocarbons.” group’s only cash-generating unit. Find more on the A&D marketplace at www.plsx.com To learn more about PLS, call +1 713-650-1212 Volume 08, No. 05 9 A&D Africa Asia Ophir adds Cote d’Ivoire & Pan Orient in talks with potential Sumatra drilling partners Malaysia blocks for $23MM Since December, Calgary-based Pan Orient Energy has been in talks with Despite initiating a process last year multiple potential partners for its operated Batu Gajah permit onshore Sumatra, Indonesia to exit low-priority projects in Kenya, (77% WI). Pan Orient’s Akeh-1 discovery last fall flowed 8.4 MMcfe/d (19% condensate) Seychelles, Indonesia and Tanzania, during a DST of Akeh-1 discovery flowed 8.4 MMcfe/d four zones in the Ophir Energy has been taking advantage last fall during DST of four zones. of the lack of competition Lower Talang Akar sands. for exploration acreage However, the Indonesian government is asking the company to drill an appraisal to expand its portfolio. well before classifying the well as a conclusive discovery. Pan Orient’s farm-out talks During March, the company closed its have occurred in parallel with pre-drill tasks for the Akeh-2, a deviated appraisal well first acquisition in Cote d’Ivoire and to be drilled from the Akeh-1 pad. added a new block in Malaysia for total FSU & Eastern Europe consideration of $23.1 million. Condor seals acquisition of Turkey explorer Marsa Energy Ophir entered Southeast Asia in 2014, After gaining approval in late February from Canadian and Turkish authorities and mostly via $1 billion Salamander buy. from both companies’ shareholders, Condor Petroleum closed its all-stock acquisition In Cote d’Ivoire, Ophir acquired an of fellow Calgary-based explorer Marsa Energy. Net of Marsa’s US$1.6 million cash operated 45% WI in the CI-513 block by balance, the deal is valued at $3.3 million. It adds Marsa’s 2013 Poyraz paying US$16.9 million toward Africa Ridge gas discovery in Turkey’s onshore Thrace Basin to Condor’s Petroleum’s back costs. The companies three oil finds in Kazakhstan’s onshore Pre-Caspian Basin, boosting the company’s have signed a new PSC for the block, YE15 2P reserves 119% to 6.81 MMboe. which lies in an underexplored part Adds Poyraz Ridge gas find to Kazakh Condor expects to gain commercial oil discoveries, doubling 2P reserves. of the transform margin play fairway. production licenses for the Kazakh fields Exploration opportunities have similar in Q2 and is targeting first gas at Poyraz Ridge in mid-2017 at an initial rate of 10 geology and scale to discoveries in the MMcf/d. Additional Turkish gas discoveries, such as the 2011 Destan find, will be Tano Basin to the east. Ophir expects to tied into the Poyraz Ridge infrastructure. The Marsa assets also include a number of being drilling in 2017. Africa Petroleum exploration leads and prospects, two of which are slated for drilling this year. announced the deal last June and revealed Condor issued ~1.84 common shares for each Marsa common share, implying Ophir as the buyer in December. a purchase price of $0.06/share (C$0.08/share) based on Condor’s closing price Jan. In Malaysia, Ophir paid $6.2 million 6, the day before the deal was announced. Upon closing, Condor’s common shares to acquire 40% WI in the Murphy Oil- were consolidated on a 10-to-1 basis and the Marsa shares were delisted from the operated offshore SK-2A block Sarawak, TSX Venture Exchange. Dundee Capital Markets advised Condor and Black Spruce which extends an existing Sarawak Basin Merchant Capital advised Marsa on the transaction. play into deeper water. Murphy recently completed 3D seismic on the block, and there is potential for a one-well Condor Petroleum Snapshot Following Marsa Acquisition drilling commitment in the next period Capital Markets 2016 Focus and Catalysts running 4Q16-4Q18. Develop the Poyraz Ridge gas field TSX Symbol CPI Begin facility and pipeline construction Drill up to 4 development wells Obtain a debt facility for Poyraz Ridge Common Shares 432.7 million Initiate Kazakhstan oil production Commercial licenses in Q2 2016 allow access to Market export markets and positive netbacks $35 million ($.08/share) Capitalization+ Drill one additional Shoba horizontal well to achieve 2016 exit rate of 800 – 900 bopd Drill 2 exploration wells in Turkey The industry’s # Working Capital $41 million Prospects within 2 km of Poyraz Ridge gas field only global Mature ZW1 Primary Basin drill-ready prospects for 2016 Debt None multiple listing service 3D seismic is now calibrated to geological age of Primary Basin sediments 1P = 3.4 MMboe PLS manages the oil and gas industry’s Proven Reserves* 2P = 6.8 MMboe +All amounts in this presentation are in Canadian dollars unless otherwise stated # Estimated as at 3/24/16 3P = 10.7 MMboe premier multiple listing service. * See Reserves Advisory www.plsx.com/listings Source: Condor Petroleum March 20 Presentation via PLS docFinder www.plsx.com/finder

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MANAGEMENT SPONSOR/EXHIBITION REGISTRATION [email protected] Duncan Clarke: [email protected] Amanda Wellbeloved [email protected] Tel: +27 11 880 7052 MEDIA Sonika Greyvenstein: [email protected] [email protected] Tel: +31 70 324 6154

www.africa-independentsforum.com Volume 08, No. 05 11 A&D People & Companies FSU & Eastern Europe • Canada and Argentina driller Chinese E&P Geo-Jade to acquire Bankers Continued From Pg 1 Madalena Energy announced the Bankers also operates the inland Kucova oil field (100% WI), where it drilled its first departure of president and CEO Kevin horizontal wells in 2014 and has booked 2P reserves of 12 MMbo. The company is also Shaw, who took the company’s helm investigating oil and gas leads extending the Patos-Marinza hydrocarbon system on the in November 2012. Chairman 183,000-acre Block F. Adding exploration upside, Bankers was awarded a 3.5-year contract Steven Sharpe has been named last November for the 217,000-acre Block P in Hungary, which contains the abandoned interim president and CEO and Biharnagybajom oil field and multiple will direct the search for a permanent prospects identified by Bankers owns Patos-Marinza field, producing more than 18,000 bo/d. replacement. Activist hedge fund 2D and 3D seismic. Maglan Capital has been calling for a Under the terms of the arrangement agreement, Bankers’ corporate and technical leadership change since buying into the headquarters will remain in Calgary with operational offices in Albania, Hungary and company two years ago. Maglan has Romania. The deal has been unanimously approved by Bankers’ board. Closing will increased its stake from 9% to 17% over require a two-thirds vote at a special shareholders’ meeting to be held before the end the past year. Madalena also appointed to of May as well as Canadian and Chinese regulatory approval. Bankers’ board and its board Eric Mark, a managing director senior management have signed agreements to vote their shares, representing 6% of at middle-market merchant bank Batuta the company’s equity, in favor of the deal. Capital Advisors. “The proposed transaction provides Bankers with the opportunity to return value • Maersk Oil plans to reduce its staff to our shareholders at a significant premium to the current market valuation,” CEO in Angola and close its Houston office in David French said, “while offering Bankers added financial resources to accelerate light of challenging market conditions for our activity in Albania and capitalize deepwater development. The Bankers faces audit in Q2 as Albania on the potential created by the current seeks to recover $75MM in back taxes. company’s Luanda office will commodity-price environment.” be reduced by 40 employees The deal comes shortly after Bankers agreed to an audit following accusations to 18, with some responsibilities for from the Albanian government that it understated earnings to avoid the 50% profit tax. the unsanctioned Chissonga project It expects the audit to be concluded in June. The government is trying to collect $75 moving to its Copenhagen headquarters. million from Bankers and said in January that it will renegotiate production sharing The Houston closing will impact 60 contracts to limit the expenses that oil companies can deduct. employees, with responsibility for FirstEnergy Capital is acting as financial adviser andMcCarty Tetrault as legal non-op US Gulf of Mexico activities counsel to Bankers, while Geo-Jade is receiving legal advice from Dentons. Both transferred to Copenhagen. Bankers and Petro-Jade have agreed to pay a $20 million break fee if they terminate • Niko Resources chairman and the deal. Closing is expected in June. interim CEO Kevin J. Clarke plans to Geo-Jade is one of the largest Petro-Jade reached out to Bankers for heavy-oil expertise in Kazakhstan. resign upon closing of a restructuring independent E&P firms listed on the announced March 14 with the Calgary- Shanghai Stock Exchange with a market cap exceeding $2.7 billion and main assets in based company’s institutional lenders Central Asia, North America and China. In an interview with the Calgary Herald, French and noteholders. Clarke took these said the company produces ~13,500 bo/d of heavy oil in Kazakhstan and originally made positions in October 2014, two months contact with Bankers to learn from its heavy-oil experience to improve its Kazakh wells. after joining the board. CSL Capital The companies became interested in a partnership after Petro-Jade toured Bankers’ facilities Management partner Vivek Raj and in Albania last summer, prompting Bankers to run the alternative process that led to the deal. Whippoorwill Associates co-portfolio manager Steven K. Gendal also resigned from the board. Niko has appointed one Bankers Petroleum Reserves Value & Metrics new board member: Robert S. Ellsworth December 31, 2015 1P 2P Jr., former global co-head and COO of Reserves 126 Mbbls 202 Mbbls BlackRock’s ~$20 billion hedge fund Patos-Marinza 123 Mbbls 190 Mbbls business. Niko’s main asset is 10% WI in Kucova 3 Mbbls 12 Mbbls the gas-producing KG-D6 block operated Reserve Life Index 18 Years 29 Years by Reliance Industries offshore India. Net Present Value at 10% After Tax (US$ Millions) $648 $1,420 Per Share ($CDN) Exchange Rate as of 2/29/2016 $3.42 $7.49 Finding & Development Costs $21.39/bbl $12.22/bbl Subscribe today! Future Capital (Millions) $1,888 $1,918 Call +1 713-650-1212 Number of HZ Wells (at Patos-Marinza) 803 817 www.plsx.com/subscribe Source: Bankers Petroleum March 15 Presentation via PLS docFinder www.plsx.com/finder

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FORMER SOVIET UNION SOUTH AMERICA USA KAZAKHSTAN OPPORTUNITY ARGENTINA OPPORTUNITY MIDLAND BASIN ASSETS FOR SALE 1-Licence. 1-Block. 100,000-Acres. 14-Wells On Production. 2,080-Acres. ONSHORE KAZAKHSTAN DV NEUQUEN BASIN HOWARD & GLASSCOCK COUNTIES One Identified Prospect. Existing Conventional Oil Production. PP Multiple Completions Per Well. PP One Exploration Well Drilled In Sept 2011. DRILL Unconventional Upside Potential. Obj 1: Fusselman. 9,500’ - 10,000’ 2-D Seismic Data Available. TO EARN 3D, Geophysical & Geological Data Avail. Obj 2: Wolfcamp, Upper & Lower Cline -- ~175 DRILL TO EARN ROYALTY INTEREST SEEKING JV PARTNER FOR FARMOUT ONSHORE -- Shale. 5,000’ - 9,500’ BOED Mean Prospective Resources: 422 MMBO Dec 2015 10% WI Prod: 140 BOEPD Up To 90% Working Interest & Operations DV 1215RR 2P Reserves: 536 MMBOE Avg 2015 Gross Production: ~175 BOED Contingent Resources: 26 MMBOE PP 4946 MIDDLE EAST PP 6199FO WEST TEXAS PROPERTIES TURKEY PROPERTY USA 27-Total Wells. 3,201-Net Acres. >9,000-Acres. 66-Producing Wells. WARD, REEVES, LOVING & PP ONSHORE TURKEY PP FRANKLIN CO., TX WATERFLOOD CULBERSON COUNTIES One Producing Field. 2-New Drills. 1-Production. 1-Injection. Targets: Wolfcamp & Bone Springs 53 D&M Approved PUD Drilling Locations. 2,750 SMACKOVER PP 18-PDP Wells. 9-In Progress. WOLFCAMP 3-D Seismic Data Available. BOPD SECONDARY RECOVERY Avg 12.2% NonOperated WI; 9.2% NRI 20% WORKING INTEREST AVAILABLE Est Smackover Depth: ~13,100 Ft. Wolfcamp Well IPs: 2,100 BOED Producing: 2,750 BOPD 50% Working Interest; 78% Lease NRI WATER- AGENT WANTS OFFERS APRIL 20, 2016 PP 1043FO OPERATIONS NEGOTIABLE FLOOD PP 4934DV Primary Recovery Oil: ~1.063 MMBO NORTHERN EUROPE New Engineering Report Underway. NORTH DAKOTA ASSEST FOR SALE PP 5798WF 3-Prospect Areas. 8,364-Net Mineral Acres. UNITED KINGDOM COMPANY SALE STANLEY, LINDAHL & SLOUGH PP 1-License. Production & Development. DESOTO PH., LA ROYALTIES Montrail, Williams & Burke Counties EAST MIDLANDS BASIN 1-Well. ~50.77-Net Acres. 180-Gross Acres. RR Targets: Bakken & Three Forks Field Surrounded By 4-Carboniferous -- CO BETHANY-LONGSTREET FIELD Target Depths: 9,500 Ft. - 9,800 Ft. ~1,000 -- Leads & Prospects. NOTHWEST LOUISIANA ROYALTY SEEKING OUT RIGHT PURCHASE BOED 3D Shows Crest Seismic Amplitude. Objective: Cotton Valley INTEREST Production: ~1,000 BOED Suggests Improved Reservoir Potential. ONSHORE 0.079337 ROYALTY INTEREST PP 4871 100% OPERATED WI AVAILABLE Monthly Cash Flow: ~$500/Month Avg 1-Well Production: 50 BOPD RR 3102 CALIFORNIA SALE PACKAGE Remaining 2P Reserves: ~700 MBO 690-Acres Unit. 29-Total Wells. Possible 3P Reserves: ~2.1 MMBO SOUTH TEXAS ASSETS FOR SALE LOS ANGELES COUNTY PP CO 2017PP ~120-Wells. 9,904-Net Acres. (100% HBP) Productive Zones: Hill Sand At 2,000 Ft. -- DUVAL, HIDALGO, KENEDY, ZAPATA, -- Broadway Sand At 3,000 Ft. & -- UNITED KINGDOM PROJECT & MCMULLEN COUNTIES PP -- Massive Sand At 4,500 Ft. 130 1-Licence. RE Producing From: Wilcox & Vicksburg 100% OPERATED WI; 83.339% NRI BOPD NORTHERN IRELAND Low Risk Proved Upside Of Workovers -- Current Prod: 130 BOPD, 100 MCFD -- 18 BCF Gas Storage Project. ONSHORE -- & Behind Pipe Recompletion Potential ~10 -- & 3,100 BWPD (From 11 Wells) Mature Field Rehabilitation. Mostly OPERATED WI Available MMCFED Total Proved Rsrvs: 5.9 MMBO & 6.9 BCF SEEKING JV PARTNER FOR FARMOUT Current Net Production: ~11 MMCFED PV10: $132,292,000 RE 6821FO 6-Mn Avg Net Operating Cash: ~$300,000 PP 4520 Fields Have Cumm’d >1.0 TCF. EUROPE AGENT WANTS OFFERS APRIL 28, 2016 KERN CO., CA PROPERTY PP 4751 15-Active; 3-TA’d; 1-SWD; >2,000-Acres. HUNGARY OPPORTUNITY NORTH WEST LOST HILLS FIELD 2-Licences. 5,410 km2 PP JEFFERSON CO., TX LEASE IMMEDIATE UPSIDE PP PANNONIAN BASIN 2-Oil. 1-Gas. 1-SWD. 140-Total Acres. Antelope (Monterey Shale); 3,300-4,300’. One Producing Field Discovered In 2008. FARMOUT GULF COAST - PORT ACRES FIELD Etchgoing Sand; Depth: ~2,300 Ft. SEEKING JV PARTNER MARG TEX to FRIO TREND PP 100% OPERATED WI; ~82% NRI ~15 PP 1562FO Drilling Intervals 8,154-8,940 Ft. Current Gross Prod: ~8 BOPD (Wells dn) BOPD 40 Acre Drilling Units MULTIPAY Total Proved Reserves: 390 MBO 100% OPERATED WI; 75% NRI 3P Reserves: 747 MBO & 1.6 BCF Gross Production: 18 BOPD & 45 BWPD -- Plus 250 MBO Shallow Waterflood. No Commissions LOE (12Mn Avg): $10,664/Month PP 3839DV Get Listed! Gross Monthly Revenue: $21,522/Month PP 4136DV WANT MORE NEGOTIATED For more information on listing, e-mail DEALS FROM PLS? [email protected] Subscribe at plsx.com/subscribe Visit www.plsx.com/deals

Find more listings at www.plsx.com/listings No commission! List today, call +1 713-650-1212 Volume 08, No. 05 13 A&D People & Companies FSU & Eastern Europe • Brazilian tycoon Eike Batista’s oil Cadogan floats offer for Slovenia explorer, then retracts firm OGP, formerly known as OGX, Ukraine explorer Cadogan Petroleum made a preliminary approach to acquire announced the appointment of Marcia London-listed Ascent Resources, but retracted two days later after Ascent’s Lemos Mainenti as CFO and investor stock jumped to a two-year high. Ascent’s primary asset is an operated 75% WI relations officer. These roles were in northeast Slovenia’s Pettisovci previously being fulfilled by CEO Paulo tight-gas project, where it conducted After Ascent Resources stock spiked 658%, Cadogan rescinded offer. Narcelio Simoes Amaral. Mainenti joined extensive 3D seismic in 2009. Batista’s EBX Group in 2010 after working Ascent announced the approach March 24 following a rise in its stock price, at financial institutions. OGP is one of six which then spiked to close at US$0.10/share (7.05p/share) March 30, up 658% companies that make up the group. from the trading day before the announcement and pushing Ascent's market cap • PetroFrontier announced the to $16 million (£11.1 million). It had $14 million (£9.7 million) in borrowings in departure of president and CEO Earl Scott, mid-2015. Following the retraction of Cadogan’s offer, the stock dropped back who joined the company as below $0.03/share (2p/share). COO in February 2012 and was appointed its head in November China’s Silk Road Fund closes $1.2 billion Yamal LNG buy-in 2013. Chairman Robert J. Iverach will be Novatek closed the sale of a 9.9% stake in its Yamal LNG project to Silk interim president and CEO. The Calgary- Road Fund and disclosed a purchase price of ~US$1.2 billion (€1.087 billion). The based firm’s operations are focused on Russian gas producer, the country’s second largest after Gazprom, announced the Australia’s South Georgina Basin. deal early last September and • Malaysia terminated Mahathir won government approval Novatek retains control with 50.1% stake, Total & CNPC have 20% each. Mohamad’s position as adviser to state- in February. Novatek now owned Petronas after he joined opposition owns 50.1% WI in the plant, which is under construction; Total and CNPC each leaders in calling for Prime Minister Najib have 20%. Silk Road is a $40 billion medium- to long-term investment fund Razak to step down. Mohamad established in Beijing in December 2014 and focused on energy and infrastructure took the adviser position at to connect the Chinese economy with Petronas after stepping down as Novatek gets 15-year loan from SRF the rest of the world. for $800 million in support of Yamal. Malaysian’s longest-serving prime minister As part of the transaction, Novatek in 2003. Najib has faced pressure to resign received a 15-year loan from Silk Road in December for ~$800 million (€730 following an investigation last year found million) to support the $27 billion project, in which $15 billion has been invested that hundreds of millions of dollars were to date. Yamal LNG has struggled to entered into his personal bank accounts raise additional funds in the face of The first train at Yamal LNG is expected to come online in 2017. via institutions linked to state investment international sanctions against Novatek. fund 1Malaysia Development. According The first liquefaction train at Yamal LNG is expected online in 2017 with to the attorney general, the funds were a capacity of 5.5 mtpa. The project is supposed to ramp to 16.5 mtpa by 2021. Situated legal donation from Saudi Arabia and most in the estuary of the Ob River near the Kara Sea, it is one of the largest industrial of the money was returned. undertakings in the Arctic. The LNG plant will rely on feedstock from the onshore • Vancouver-based Renaissance Oil South Tambeyskoye gas field, which has 32.7 Tcf of YE15 2P reserves. Corp. appointed Harpreet Dhaliwal as its CFO and Willem Veltman as its operations manager in Mexico. Dhaliwal is a chartered PLS Home docFinder M&A PetroWire Learn More Help About Us Contact Us Register accountant with eight years of experience Log In or Sign Up Now! at natural resources companies including Endeavour Mining and Uranium One.

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For general inquiries, email [email protected] Access PLS’ InternationalDeals archiveview table for previousview slides A&D news Reset Filters Getting started with docFinder Frequently asked questions (FAQ) Advanced searching Additional help InternationalDeals 14 April 6, 2016 Oceania People & Companies China’s ENN acquires 11.7% Santos stake for $750 million • Statoil elected former Shell CEO Making its first move into the upstream sector, private Chinese gas distributor Jeroen van der Veer to its board. Van der Veer ENN Group is acquiring Beijing private equity fund Hony Capital’s 11.7% equity joined Shell in 1971 and led the supermajor stake in Santos for US$750 million to become the Australian gas producer’s largest from 2004 until his retirement in shareholder. Santos has approved the transfer of shares, most of which Hony acquired 2009. He continued to serve on in a private placement last November. Hony has also agreed to become a strategic Shell’s board until 2013. Van der investor in ENN via a $380 million Veer chairs the supervisory boards of the private placement. Top private gas distributor in China Nethrlands’ ING Bank and Royal Philips buys into growing regional LNG supplier. “This introduction to the upstream Electronics and serves on the supervisory sector takes us a step forward in our aim to generate value across the entire natural board of Dutch marine infrastructure gas value chain and allows us to learn and build experience,” ENN chairman company Boskalis Westminster. Wang Yusuo said. • Central Asia producer Tethys The Santos stake will lock in supplies for ENN’s growing LNG import business Petroleum has named John Bell and and reduce its dependence on state-owned CNPC, CNOOC and Sinopec. Santos is Alexander Abramov as co-executive targeting 2016 production of 0.93-1.03 Bcfe/d from Australia and the Asia-Pacific chairmen. Bell has served as region and has a growing portfolio of LNG projects that liquefied ~8 Bcf last year, Tethys’ executive chair since up 68% YOY. ENN distributes 1.88 mtpa or 20% of China’s LNG volumes and is November 2014, and Abramov building the country’s first private LNG import terminal in Zhoushan, expected online is chair of Olisol Investments. The in 2018 with 3 mtpa capacity. change is being made in connection with an equity and debt financing by Olisol US & Canada announced in December. AWE & Empyrean close deals to exit Eagle Ford shale project • As part of a larger cost-cutting Australia-listed AWE Ltd. and London-listed Empyrean Energy completed initiative, Calgary-based WesternZagros the divestments of their respective 10% and 3% stakes in Marathon Oil’s Sugarloaf Resources closed its offices and Iraq’s Block B development in South Texas’ Eagle Ford shale. Both stakes were bought Kurdistan region and further reduced its by Carrier Energy Partners II for combined consideration of US$251.5 Calgary workforce. Among the changes, million, giving the privately held company 15,000 net acres and more than exploration and reservoir development 7,000 boe/d (49% condensate, 24% NGLs) of net production in a “core of Michael Tinkler and VP and Kurdistan the core” area of the play. In addition, Empyrean may receive contingent payments up general manager Bill Jack left the company. to $10 million if oil prices exceed $55/bbl Also, Grant Harms and Bruce Garland in 2016 and $60/bbl in 2017. The UK & Australian companies sell a joined the Kurdistan-focused company’s combined 13% WI for $251.5 million. Empyrean used a portion of its sale senior management team as operations proceeds to close out its existing debt facility with Macquarie and settle cash-call general manager and drilling and payments to Marathon. Although Sugarloaf Block B has been Empyrean’s main focus completions general manager, respectively. in recent years, it still has three active non-op US projects in California’s San Joaquin Both have more than 30 years’ operational Basin, the Wilcox play of East Texas and and business development experience AWE also selling Cliff Head oil field the ConocoPhillips-operated Sugarloaf worldwide. Harms joined WesternZagros back home, focusing on Waitsia gas field. Block A project in the Eagle Ford. in November 2014; Garland returned to AWE will pay of all of its debt and be left with an estimated A$50 million the company last November. net cash position. The sale marks AWE’s exit from the US upstream, as it turns its focus to development of the Waitsia gas field in Western Australia. AWE also continues to work toward closing an October deal December 31, 2014 • Volume 25, No. 18 to sell its 57.5% Cliff Head field stake offshore Transactions Serving the marketplace with news, analysis and business opportunities Western Australia to Elixir Petroleum. The Roc Repsol strikes, snapping up Talisman for $13 billion Whiting seals buyout of Capitalizing on falling oil prices to gain a substantial upstream foothold in North Bakken peer Kodiak America, Repsol has struck a deal to acquire Talisman Energy for $13 billion. The There is one less publicly listed purchase price consists of $8.00/share (C$9.33/share) in cash plus the Calgary company’s Bakken producer following the closing $4.7 billion debt. Unanimously approved by both companies’ boards, the deal will of Whiting Petroleum’s acquisition Oil-operated oil field in the Perth Basin came boost Repsol’s pro forma 2014 production by 76% to over 4.08 Bcfed immediately and of rival Kodiak Oil & Gas. significantly expandNext its exploration portfolio. A&D The combined company Transactions will have a presence The deal created a combined in more than 50 countries with Bids $8.00/share after Talisman company with a market cap 27,000 employees. tagged a low of $3.46/share. north of $6.0 billion based on the stock Transactions Cash-rich Repsol had price the day before closing. Whiting online in May 2006. Elixir will pay A$1 million been gearing up for a strategic upstream acquisition, building up a $12 billion-plus war now has the highest Bakken/Three Forks chest this spring through the divestment of its equity in Argentine explorer YPF, a $5.0 billion settlement with Argentina over the 2012 seizure of a 51% stake in YPF, and the Creates largest producer in Bakken with Q3 output of 125,000 boepd. Getsale to Shell ofthe its Latin America-focused latest LNG business. Atintel the time, Repsol saidon it the US was shopping for companies or assets within the OECD with development potential, Metrics and production at a pro forma 125,000 boepd up front plus up to $9 million contingent on field scale, extra growth capacity and above 8% return on capital. Continues On Pg 12 for Q3, squeaking by long-time leader Oxy in talks to buy private Permian driller Three Rivers Continental Resource's 121,600 boepd. upstreamCash-rich after receiving $6.0 billion deal in the spin-off of itsmarket. California business, The deal also increased Whiting’s Occidental Petroleum is looking to supercharge its core Permian growth engine Bakken/Three Forks inventory by by pursuing privately held Three Rivers Operating Co. II LLC. Industry sources 158% to 3,460 net drilling locations Comparables performance over the next five years. contacted by PLS have estimated values in the $1.20-1.35 billion for the deal. A across 855,000 net acres. YE14 proved Bloomberg story citing an unnamed source said the companies are discussing a price reserves for the combined company total below $20,000/acre—implying a value below $1.75 billion based on Three Rivers’ 780 MMboe (83% crude, 7% NGLs), 82,000 net acres at YE13 plus 5,400 net up 29% compared to Whiting and PLS sources value deal for Riverstone- Kodiak’s YE13 sum. Cont'd On Pg 17 acres picked up this summer. backed company at $1.20-1.35 billion. Austin, Texas-based Three FEATURED DEALS Rivers II launched in August 2012 with the acquisition of 15,000 net acres and 1,900 boepd in the Midland Basin from Meritage Energy. Backed by Riverstone EAST TEXAS SALE PACKAGE Holdings, the company at YE13 touted 25,000 net acres in the Midland Basin, 22,000 12-Active Wells. 3-SWD. ~3,700 Acres. Providing critical valuation in the southern Delaware Basin and 5,000 in the Central Basin Platform representing a BUNA WEST & SILSBEE FIELDS drilling inventory exceeding 1,800 locations (average 90% WI) targeting the Wolfcamp, HARDIN & JASPER COUNTIES PP Cline and Wolfberry combo play. Continues On Pg 11 Wilcox Sands 10,000 Ft.-15,000 Ft. Additional Drilling Locations Identified 58-100% Operated WI; ~73 Lease NRI 191 Southwestern buys more Marcellus/Utica for $394 million Gross Production: 77 BOPD & 888 MCFD BOED information on oil and gas deals. Also closes $5.4 billion initial acquisition from Chesapeake Net Production: 44 BOPD & 530 MCFD Statoil is selling a 5.8% stake in its Marcellus and Utica JV assets in northern June 2014 Cash Flow: ~$156,600/Mn Increase deal flow & business opportunities. PDP PV10: $4,826,000 West Virginia and southern Pennsylvania to new partner Southwestern Energy for BIDS DUE BY JANUARY 15, 2015 $394 million and retaining ~23% WI. Having also closed its $5.4 billion purchase of PP 2351DV Chesapeake’s 67.5% WI, Southwestern’s newly acquired interests will rise to 73.3% WI, representing 443,000 net acres. KERN CO., CA PROPERTY Gets additional 30,000 net acres & ~18,000-Contiguous Net Acres. www.plsx.com/ma The Statoil deal adds 29 MMcfed from Statoil interest. BEER NOSE FIELD Subscribe to PLS! For available options, e-mail [email protected] October Bloemer Tight Sandstone Objective. PP net production of 29 MMcfed and 30,000 net acres targeting the Marcellus, Utica Estimated Depth: 10,000-15,000 Ft. and Upper Devonian for Southwestern. Statoil had a preferential right to buy Also Monterey, Belridge, Gibson, Oceanic, Chesapeake’s stake when that company’s deal with Southwestern was announced Santos, Tumey & Kreyenhagen Potential. 100% OPERATED WI; ~77% NRI in October, but chose not to exercise it. Including these properties and others in the TIGHT Gross Production: 36 BOPD & 57 MCFD SAND play, Statoil retains a strong Marcellus position covering ~570,000 net acres with Net Production:27 BOPD & 44 MCFD pro forma Q3 net production of 759 MMcfed. 6-Mn Avg. Net Cash Flow: ~$28,800/Mn The Statoil deal is expected to close in 1Q15 and will be financed from PP 5217DV Southwestern’s revolver. Continues On Pg 15 Find more on the A&D marketplace at www.plsx.com All Standard Disclaimers & Seller Rights Apply. To learn more about PLS, call +1 713-650-1212 Volume 08, No. 05 15 A&D US & Canada Meidu unit expands SE Texas footprint more than 50% • Australia-listed Austin Exploration MD America Energy, a US E&P-focused subsidiary of Chinese real estate negotiated the sale of its non-op 50% WI developer Meidu Holdings, announced its second acquisition of the year in the (37% NRI) in the Board of Education oil Woodbine play of southeast Texas. The company is picking up 136 operated and non-op project in Mississippi. A private company wells on 18,400 net acres (85% HBP), expanding its 35,000-net-acre footprint by more will pay US$925,000 for Austin’s stake than 50%. The deal is expected to close March 25, funded by cash from Meidu. It has in the property, which as of November drilled and operates more than 160 oil wells producing principally from the Woodbine included five producing oil wells on 120 with continued drilling planned for this acres. Proceeds were used to extinguish year, contingent upon commodity prices. Chinese real estate developer entered Woodbine via $535 million deal in 2H13. Austin’s remaining $350,000 debt after In January, MDAE announced an the $1.1 million sale of a non-op Eagle agreement to acquire operated bolt-on assets and associated midstream infrastructure. Ford shale property in February. This It also announced its voluntary pre-payment of US$100 million of principal on its concludes a divestment program to outstanding $525 million facility in anticipation of a $985 million equity infusion from free up capital for operated projects in Meidu to further grow its position. Colorado and Kentucky. Meidu jumped into the US oil patch in 2H13 with a $535 million acquisition of • BP acquired Texas Panhandle gas Woodbine Acquisition LLC, picking up 15,097 net acres and 5,000 boe/d from 39 properties with 137 wells from EnerVest Woodbine horizontals, along with gathering systems. Woodbine Acquisition changed for US$4.7 million. The assets were put its name to MD America Energy in March 2014. up for sale in 3Q15 via a sealed- Shell & Saudi Aramco to break up US downstream JV Motiva bid offering run by EnergyNet. After 18 years of partnership, Shell and Saudi Aramco plan to break up their Motiva They include 112 operated wells Enterprises refining and marketing JV in the US. Aramco will retain the Motiva name (89.9% WI, 68.0% NRI) of which 95 are and get full ownership of Motiva’s 600,000 bo/d refinery in Port Arthur, Texas, plus producing and 25 non-op wells (47.6% WI, 26 distribution terminals. It will also have an exclusive license to sell Shell- 37.3% NRI), of which 21 are producing. branded gasoline and diesel in Texas, most of the Mississippi Valley, the Six-month average production was 3.9 Southeast and the Mid-Atlantic. Shell will take two ~230,000 bo/d refineries in MMcfe/d (3% oil). In addition, there were Norco and Convent, Louisiana, nine distribution terminals and Shell-branded markets in 34 PUD locations on the acreage. Florida, Louisiana and the Northeast. The supermajor operates a chemical plant in Norco. • Australia-based Pryme Energy Shell downstream director John Abbott said bringing these assets under its larger sold its 9,300-acre Capitola project in downstream North American organization is consistent with the company’s goal of the Permian Basin to a private US energy creating a simpler and more highly integrated business. Aramco downstream SVP company for US$2.2 million. Pryme Abdulrahman F. Al-Wuhaib said full ownership of the Port Arthur refinery will advance acquired the Texas project for $300,000 the company’s global downstream integration strategy “through supply and trading, in 2014 but suspended development last refining and fuels marketing, chemicals and base oils.” year after poor initial results and reduced its stake from 75% WI in shallow rights What the Analysts are Saying About A&D and 50% in deep rights to 37.5% and ExxonMobil (US$80.15–Feb. 29; Sell) 25%, respectively. Capitola is producing Exxon’s 10-K takeaways and debt issuance supports our view of a potential ~100 boe/d and was valued at $5.6 million material acquisition to come. XOM’s Proved-Undeveloped reserves were down 23% before YE15 impairments. Most leases y/y to 6.8Bboe (~27% of total 1P), despite a 1.7Bboe addition, mainly as a result of expire this year. Kearl coming on-stream. ... On 7 successful exploration wells in ’15 vs. 11 in ’14 and • Samson Oil & Gas’ primarily lender 16 in ’13. These facts, as well as XOM’s capex cut and lack of projects coming on- expanded its borrowing base to US$30.5 stream post-2017 suggest to us that yesterday’s $12B bond issuance could be used to million to enable the Australia-listed finance a material acquisition in the short term. —Tudor, Pickering, Holt & Co. company’s $16.5 million acquisition of North Dakota Petrobras (PBR/PBR.A:NYSE; US$5.77–March 22; Neutral; PT: US$6.50) and Montana properties from Messy 4Q15 given considerable impairments; debt remains in focus. With Oasis Petroleum, announced in January. the company’s expected operating cash flow offset by the combination of capex and The expansion is conditional upon closing, an estimated US$5 billion cash outflow for judicial guarantees (deposited in escrow which was pushed to March 31 from related to ongoing litigation), PBR anticipates bridging the majority of the remaining an original target of Feb. 1. The assets cash deficit gap created from total debt payments through US$14 billion in divestment include 51,305 net acres with 41 net wells proceeds. While we view this target of divestments coupled with net decreases in debt producing 720 bo/d from conventional levels as a positive, we are hesitant on the ability to receive sufficient value through Madison intervals and two SWD wells. asset sales, given what we see as a saturated market. —Barclays All acreage includes Bakken rights. For general inquiries, email [email protected] Access PLS’ InternationalDeals archive for previous A&D news Find your next business opportunity.

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