TSX: OER Stock Price (as at 10 April, 2014) $1.45 EnergyResources Shares Outstanding 573,705,160 Market Capitalization $723 Million 52 Week Range $0.94 - $1.90
Oando Energy Resources (OER) is the new trading name of Exile Resources lnc (Exile) post the acquisition of certain Shareholding interests in Oando PLC’s upstream A Truly Indigenous subsidiary in respect of Oil Mining Leases (”OMLs”) and Oil Prospecting Licenses Oil & Gas Company (”OPLs”). It is publicly traded on the Toronto Stock Exchange. The Company is an independent oil and gas company focused on exploration and Listed on the TSX production opportunities in the highly prolific Niger Delta region of Nigeria and the Exclusive Economic Zone of São Tomé and Príncipe
ConocoPhillips Acquisition E G A M ~$1.57BN G E R H A N Acquisition price after C customary adjustments 36.5kboepd Net Oil & Gas average production for 2013: 11kbopd (Oil) & 25kbopd (Gas) 221MMBOE 2P Reserves Onshore: OMLs 60, 61, 62 & 63 492MMBOE 2C Resources Onshore: 210MMBOE Offshore: OML 131 & OPL 214 (282MMBOE
In May 2012, ConocoPhillips (“COP”) offered for sale its entire Nigerian business comprised of the sale of 100 percent interest in the issued share capital of the Proven + Probable (2P) Reserves and Contingent (2C) Resources following: Onshore Business 700 Phillips Oil Company Nigeria Ltd (“POCNL”): 20% interest in OMLs 60, 61, 62 and 63 and related infrastructure and facilities through the NAOC-NNPC Mmboe 600 Joint Venture. NAOC is operator. Offshore Business 500 Conoco Exploration and Production Nigeria Ltd. (“CEPNL”): 95% interest in OML 131. CEPNL is operator. Shell is operator of unitized discovery area 400 (Bolia-Chota field). 210 Phillips Deepwater Exploration Nigeria Ltd. 629 300 (“PDENL”): 20% interest in OPL 214. ExxonMobil is 559 operator Closing : 30th April, 2014 200
The summary evaluation highlights the economics and 100 221 provides an indicative valuation of the: Onshore Business: 2P Reserves (boe): 221 mmboe 0 2C Reserves (boe): 210 mmboe COP NAOC OER 2P + 2C Reserves (boe): 431 mmboe
NPV10 Base Case valuation of US$ 2.18 billion 2P 2C $/boed $50,628 Offshore Business:
Contingent Resources at 282 mmboe OER’s reserves and resources are in accordance with NI 51-101 while NAOC and COP are in accordance with Nigeria Offer price of US$100m ($/bbl US$0.35) Reporting Standards. Valued at US$354 million Total Production, Capital Expenditure & Operating Cash Flows
Oil Production Profile (Net to COP) CAPEX (Net to COP)
60 300
50 250
40 200
30 150
20 100 mbpod US$ MIllions
10 50
0 -
Vendor Case Oando Base Case Vendor Case Oando Base Case
350
300
250
200 Gas 150 Oil
US$ Millions 100 Kwale IPP
50
- * Before working capital adjustment Net Operating Cash Flows*
Valuation Onshore Assets – Oando Case Valuation Offshore Assets – Oando Case
3,500 1,200 1,168 1,100 US$, millions 3,000 US$, millions 115 1,000 409 2,500 150 900 800 2,000 1,124 700 600 1,500 Purchase Price: US$ 1.44Bn 500 2,701 2,851 112 2,177 400 1,000 154 354 300 200 500 788 200 **Effective Purchase Price: : US$ 130 million 152 100 - - 2012 FCFs* Oil Kwale IPP Existing gas Bid Case 2C 3P Total Exploration Total OML131 OPL214 Contingent Woodmac Prospects Resources Valuation* NPV * Wood MacKenzie M & A Service, December 2012 Crude Oil Price (US$) 2C MMboe US$millions** “ConocoPhillips to divest its Nigerian business unit 80 Oando Price Deck 90 100 110 to Oando Energy Resources for US$1.79 billion” US$, millions 2,118 2,177 2,211 2,302 2,406 OML 131 200 37 ** Valuation based on Uge field (OPL 214 ); 214 2P Reserves, mmboe 431 431 431 431 431 OPL 82 154 and unitized Bolia Chota field (OML 131), with Shell being the operator US$/2P boe 4.91 5.05 5.13 5.34 5.58 Total 283 191 *2012 Operating CFs less WC and CAPEX
Announced Date Buyers Value Oil Prod 2P Reserves Implied Value Implied Value
US$millions bopd MMboe US$/2P boe US$k/bopd 1-Aug-12 OML 34 - Niger Delta 600 6,750 115 5.2 89 1-Jul-12 OML 30 - Heritage/Shoreline 850 15,750 501 1.7 54 9-May-11* OML 42 - Kulczyk/Neconde 585 9,000 162 3.6 65 Source - IHS Herold; Reserves - Oando
ransactions 31-Mar-11* OML 40 - Eland, Elcrest, Starcrest 154 - 32 4.8 - 21-Oct-10 OML 26 - Afren/First Hydrocarbon 148 2,700 18 8.1 55 * 2P : MMbbls 26-Mar-10 China Petroleum & Chemical Corporation 2,457 55,840 131 18.8 44 2-Oct-09 Perenco S.A. 282 7,341 21 13.5 38 ** Recoverable Resources : Buyer's News Release (Nigerian & Algerian Assets) Mean 454 9,450 151 4.7 47 Median 486 7,875 95 4.9 54 †† NI51-101 Compliant Reserve Estimates
21-Jun-13* Block 31 (Angola) - Sinopec 1,520 14,600 53.3 28.5 104 18-Dec-12** Block 405A - PT Pertamina 1,750 23,000 100 17.5 76 19-Nov-12** OML 138 - Sinopec 2,460 24,000 100 24.6 103
1,441 43,000 431 3.3 34 Selected Nigerian T 20-Dec-12 Oando Energy Resources ††221 6.5
INVESTOR CONTACT Pade Durotoye +234 (1) 2601290 Tokunboh Akindele +234 (1) 2702496 Chief Executive Officer [email protected] Head, Corporate Development & Investor Relations [email protected] www.oandoenergyresources.com