January 20, 2017 • Volume 09, No. 01 InternationalCapital Serving the marketplace with news, analysis and business opportunities

Petrobras kicks off 2017 with $4B notes sale 5x oversubscribed E&P capex to hit $450B among Owes $122.7B, last in the bond market in May for $6.75B world’s biggest companies priced $4.0 billion in US-denominated notes for sale globally on Sixty of the world’s leading E&P Jan. 9 with a Jan. 17 closing for both issues. Issued by its sub Petrobras Global companies will spend about $450 Finance B.V., the company offered $2.0 billion principal amount of 7.375% senior billion in capex this year, up 3% YOY unsubordinated unsecured global notes due 2027 at 100 and $2.0 billion and stopping the two-year spending principal amount of 6.125% senior unsubordinated unsecured global notes decline, projected Wood Mackenzie. due 2022. The company said book order size for the combined offerings hit These companies will also make final more than $20 billion, making them more investment decisions on more than 20 than 5x oversubscribed. S&P rates Petrobras’ debt issuance a new upstream projects this year, up from B+, below investment grade. Banco Bradesco BBI, Citigroup, nine last year, while 40 large upstream HSBC, Itau BBA USA and Morgan Stanley underwrote the issues. Neither the projects are in the queue for decision. notes nor their offer for sale were registered with ’s Comissão de Valores Mobiliários, therefore they can’t be offered or sold in Petrobras’ home country except WoodMac sees 3% growth, Barclays 7% in their samples’ capex spending. in circumstances that do not constitute a public offering or distribution under Brazilian laws and regulations. Continues On Pg 16 Barclays surveyed more than 100 considering up to $12B retail unit IPO—again E&P companies and concluded their capital spending will increase an average 3 Chinese & 3 American banks will advise on offering of 7% this year, and research group China & Chemical Corp., better known as Sinopec, is once again Rystad Energy sees the production considering an initial public offering of its gas station and convenience store unit, of 15.0 Bboe being approved in 2017 which could fetch up to $12 billion, people familiar with the matter told The Wall compared with just 6.0 Bboe last year. Street Journal and Reuters. The company is talking to banks about bringing Sinopec Macquarie analyst Iain Reid told the Marketing Co. public this year possibly on the Hong Kong Exchange, that companies are the sources said. finally seeing a “floor beneath oil prices The company mandated Hong Kong listing possible, IPO an option among others. and their breakeven points are coming six banks to advise it on a restructuring down towards the same level.” of its fuel distribution unit. It tapped China International Capital, China Merchants Continues On Pg 10 Securities, CITIC Securities, Citigroup, Goldman Sachs and Morgan Stanley for the financial advisory role. Sinopec had invited 14 banks to pitch for the assignment, DEALS FOR SALE which would transition Sinopec Marketing from a LLC with fewer than 50 shareholders into a corporation that could accommodate more shareholders. Continues On Pg 8 ONSHORE AUSTRALIA FARMOUTS 7-Permits. 12,000 sq km. Faroe Petroleum enters new lending facilities worth $366MM COOPER-EROMANGA BASIN Delek now Faroe’s largest outside shareholder with 13.2% stake SURAT-BOWEN BASIN DV Faroe Petroleum signed two banking facilities, one denominated in US dollars One Ready To Drill Prospect. Active Exploration Programme And --- and one in Norwegian kroner, to help the UK- and Norway-focused independent --Flexible Farm-In Terms. ONSHORE finance growth plans. The company entered into a seven-year $250 million reserve- SEEKING JV PARTNERS based lending facility with a $100 million accordion feature that refinances a previous Unrisked Comb. Prospective: 70-100MMBOE RBL facility with a 2018 maturity. The company said it had no funds drawn CONTACT AGENT FOR UPDATE DV 8330FO down on the 2018 facility. The company can also $250MM RBL maturing 2023 replaces 2018-ending RBL, which was undrawn. SOUTHEAST ASIA GAS RESERVES borrow up to NOK 1.0 billion ($116.1 8-Wells. million) under a Norway Exploration Financing Facility for exploration and appraisal HIGH IMPACT OPPORTUNITY costs incurred specifically for work on the Norwegian Continental Shelf. In addition to Some Land & Title Issue To Resolve. DS the committed NOK 1.0 billion, the facility has an NOK 500 million accordion feature. NONOPERATED WI POSITION BANKRUPTCY DS 1013PP The facility matures in December 2019. BNP Paribas, BMO Capital Markets, Commonwealth Bank of Australia, Danske Bank, DNB Bank, ING, Royal Bank of Scotland, SEB, SR-Bank and PLS tracks thousands of deals for Wells Fargo are the committed lenders to the facilities. Rothschild and Pinsent sale at www.plsx.com/listings Masons advised Faroe. Continues On Pg 4 All Standard Disclaimers & Seller Rights Apply. InternationalCapital 2 January 20, 2017 Xxxxx Europe International Upstream Market Movers—Last 30 Days Statoil will take $500-550MM $/Share $/Share % % Change Company Exchange 1/17/17 12/16/16 Change YOY loss on divestment After nearly 10 years, Statoil pulled YPF BASE:YPFD $21.10 $15.36 37% 51% out of Canada’s entirely, Ithaca Energy TSX:IAE $1.29 $1.07 21% 435% selling its two 100% operated Kai Kos QGEP BOVESPA:QGEP3 $1.87 $1.59 18% 67% Dehseh (KKD) lease areas to Athabasca Oil Corp. for Kosmos Energy NYSE:KOS $6.56 $5.73 14% 73% C$832MM ($626MM). Statoil Origin Energy ASX:ORG $5.40 $4.72 14% 94% will take a loss of $500-550MM on the sale, for which it received $435 million

Top 10 Top Petrobras BOVESPA:PETR4 $4.93 $4.35 13% 288% Tatneft MISX:TATN $7.12 $6.47 10% 95% in cash, 100 million common shares of Athabasca valued at $147 million and up Oil Search ASX:OSH $5.51 $5.02 10% 27% to $250 million in a tranche of contingent Aker BP OB:AKERBP $18.66 $17.16 9% 268% payments triggered when and if WTI Cairn Energy LSE:CNE $3.01 $2.77 9% 60% tops $65/bbl. Statoil now owns nearly 20% of the equity in Athabasca, and Japex TSE:1662 $22.25 $23.58 -6% -8% it will manage that stake as a financial Pakistan investment rather than a strategic one. Petroleum KASE:PPL $1.72 $1.81 -5% 74% Inpex TSE:1605 $9.95 $10.45 -5% 16% Statoil gains nearly 20% stake in Athabasca, $435MM in cash from sale. Delek Drilling TASE:DEDR.L $3.63 $3.80 -4% 37% Novatek LSE:NVTK $125.20 $129.80 -4% 77% The company said Dec. 14 that its rationale for accepting Athabasca’s InterOil NYSE:IOC $48.21 $49.66 -3% 100%

Bottom 10 offer was to “optimize” its portfolio by LSE:TLW $3.85 $3.96 -3% 107% focusing on new core assets in places like Noble Energy NYSE:NBL $40.05 $41.16 -3% 45% US, Brazil and Norway. It also identified CNOOC SEHK:883 $1.27 $1.30 -2% 40% offshore Newfoundland as one of its core global areas. Chevron NYSE:CVX $116.28 $118.08 -2% 39% Note: data includes public, international companies operating in the oil & gas space, limited Core assets for Statoil are in US, Brazil to companies >$100MM market cap & >$1.00/share Source: CapIQ & home in Norway. Statoil entered the oil sands in 2007 Major Global Indices—% Change Past 30 Days when it bought North American Oil 3.0% Sands for $2.2 billion. It sold 40% of 2.5% it to Thailand’s PTTEP, which spun- off its assets into a separate business 2.0% in 2014. Statoil indefinitely postponed 1.5% development after that, citing profitability concerns amid low oil prices. 1.0% “The energy market has changed 0.5% since 2007 quite considerably, and the oil price has been a lot lower for longer, we 0.0% are focused on spending capital on core -0.5% assets, and our own portfolio has changed in that time,” said Paul Fulton, president -1.0% of Statoil’s Canadian affiliate. -1.5% S&P500 Dax Nikkei 225 FTSE 100 -2.0% Save time

1/2/17 1/4/17 1/6/17 1/8/17 sourcing

1/10/17 1/12/17 1/14/17 1/16/17 plus 12/15/16 12/17/16 12/19/16 12/21/16 12/23/16 12/25/16 12/27/16 12/29/16 12/31/16 critical data Source: Google Finance www.plsx.com/docFinder Find more on the energy finance arena at www.plsx.com To learn more about PLS, call +1 713-650-1212 Volume 09, No. 01 3 EnergyFinance 2017 capital raising off to Premier Oil & lenders agree to refinance $2.8 billion in debt placid but solid start Three fiscal quarters of discussion between Premier Oil and its 40-bank lending Crude oil prices have settled lower syndicate have finally resulted in consensus on the commercial terms of avery recently as the market wonders whether complicated financial restructuring of the company’s £2.28 billion ($2.8 billion) debt pledges to cut production made by load. The company expects to receive the long-form term sheet next month. various producers will actually stick. In a news release, Premier said the lenders will be offered warrants to NYMEX had WTI at purchase equity as a sweetener, Premier teases on restructuring plan IN THIS $52.37/bbl, and ICE had but it is not part and parcel of the ISSUE but says it will disclose all in Feb. Brent at $55.45/bbl on Jan. restructuring and would not be materially 13, down slightly from past contracts. dilutive to existing shareholders. The same economic terms given to bankers would Libyan production is back online in a big also be offered to the retail bondholders, and the company said all would be disclosed way could make promises of lower output at the same time in February. Negotiations are still ongoing with the advisers to an ad hard to keep (PG. 11), Vitol’s $1.0 billion hoc committee of Premier’s convertible bondholders. investment into Iran could be plowed CEO Tony Durrant said he’d be “astonished” if any further changes were made back into production enhancements (PG. to the proposed restructuring at this point. “The terms really haven’t moved much 5), and Glencore’s supply deal with in the last few months. We’re now into the rather painful process of paperwork, (PG. 5) puts the trader in more but by mid-February we should have Expects to report 11% lower revenue entered into lock-up with our private control over oil from Russia. YOY in 2016. lenders,” he said. World’s biggest companies plan to The company expects to report 2016 revenue of $980 million, down from 2015’s spend $450B in capex this year. $1.1 billion, with higher production partially offsetting the effect of lower realized Fundraising hasn’t really kicked commodity prices. Its average realized oil price last year was $43.10/bbl compared in to full gear for the sector as a whole, with $52.60/bbl without hedges and $51.00/bbl with hedges. but it is starting up again after a much- The company also announced that non-executive board member David Lindsell improved year overall. There is always will retire at the annual meeting in May and be replaced as chairman of the audit and at least one Australian private placement, risk committee by fellow director Iain Macdonald. Senior independent director Joe such as XState’s (PG. 14) and it’s Darby will also resign from the board at the meeting. Finally, chairman Mike Welton frequently to Asian investors. One of will also step down at that time. the biggest Aussie companies, Santos, closed on $1.5 billion in placements sells €750MM in notes, awaits $1.125B from Rosneft (PG. 14) while Serinus Energy (PG. Eni sold €750 million principal amount of 1.5% notes due 2027 at 99.229 under 7), SD Standard Drilling (PG. 7), its euro medium-term note program. The notes were bought by institutional investors Oman’s Masirah Energy (PG. 10) mainly in Germany, France and the UK. The company said it would use net proceeds for and a marketing division of SOCAR general corporate purposes. Barclays, Citigroup, ING, Santander, Société (PG. 15) all placed equity privately this Générale, SMBC Nikko and UniCredit were joint bookrunners on the bond. cycle. Sinopec (PG. 1) is looking to Eni has €19.136 billion of senior Notes issued under medium-term IPO its marketing unit again and expect bonds and notes outstanding. note program for general purposes. In December, Eni agreed to sell Clean energy investment down 18% Rosneft a 30% participating interest in the Shourouk concession offshore Egypt, to $287.5B last year. where the supergiant gas field Zohr is located. Eni, through its subsidiary IEOC, holds more IPOs from Russia as its ex-finance a 90% stake in the block following the recent dilution of 10% to BP. Rosneft will buy minister wants to privatize everything the stake for $1.125 billion and reimbursement of past expenses proportional to the (PG. 13). On the debt side, Eni sold size of the stake, which amounts to about $450 million. Rosneft has an option to buy medium-term notes (PG. 3) and of an additional 5.0% under the same terms. Sold 30% stake in Zohr’s concession to course Petrobras (PG. 1) issued more Eni said the agreement confirms Rosneft, touts dual exploration model. debt to kick off the new year. success of its “dual exploration model” Three of Southeast Asia’s largest— which, together with accelerated development of the hydrocarbons reserves, seeks to PTTEP (PG. 9), (PG. 7) monetize the asset’s value through the dilution of the high participating interest owned and (PG. 9) all announced in huge exploration discoveries. Eni said the model, including this deal, has generated 2017 capex plans, as did YPF (PG. 15), about $6.3 billion in cash during the last four years. GranTierra (PG. 19) and Tullow (PG. 12), and a tweet by a sheikh (PG. 10) said A simpler way to track global O&G activity the UAE would spend $164 billion on its A unique tool for monitoring global activity by country, project, etc. wire.plsx.com energy sector by 2050. For general inquiries, email [email protected] Access PLS’ InternationalCapital archive for previous energy finance news InternationalCapital 4 January 20, 2017 Europe E.ON not interested in spinning off power grid business FX as of January 18, 2017 Activist investor Knight Vinke is once again calling for E.ON’s management to One US Dollar ($) = spin its power-distribution business off into a separate entity, much like it spun off Euro 0.936 Uniper in September to split the company into two. Uniper represented the pooling of E.ON’s coal- and gas-fired power stations, energy trading and Pound 0.812 gas production into a new entity, while the newer suggestion is for Yen 113.382 E.ON’s regulated grid assets. E.ON has Spun off gas, coal & trading assets indicated it would not be interested in RMB 6.838 into Uniper last September. pursuing the idea. Canadian Dollar 1.318 An E.ON spokesman reported that nearly 97% of votes at the company’s annual shareholders meeting in June supported the company’s strategy to focus on all three of Australian Dollar 1.324 its business areas, and that the company is now implementing that shareholder-approved Rubles 59.273 strategy. “A disposal of the networks would conflict with that,” the spokesman said. Vinke said there is high demand among institutional investors for a pure network Norwegian Krone 8.455 business, and the value would be “substantially greater than that of [E.ON] as a whole.” Mexican Peso 21.854 It’s exactly the type of asset that investors looking for dividend yield would want to own, he said. Vinke owns about 1.0% of the company. Romanian Leu 4.211 Petroleum Geo-Services strikes $238MM debt off books Saudi Riyal 3.751 Norwegian seismic company Petroleum Geo-Services completed an exchange Brazilian Real 3.224 offer for its 7.375% senior notes due 2018. For each $1,000 principal amount of 2018 notes tendered by the Dec. 20 deadline, PGS paid out $500 aggregate principal amount Venezuelan Bolivar 9.995 of new 7.375% senior notes due 2020 and $445 in cash, or $475 if they Indian Rupee 68.141 were tendered by Dec. 6. The company had $450 million outstanding of the 2018s—its sole public debt outstanding—as of Sept. 30, and it accepted Singapore Dollar 1.424 for exchange $423,998,000 in aggregate principal amount of the old notes, Malaysian Ringgit 4.445 or nearly 94.2%. The company issued $211,999,000 aggregate principal amount DNB & Nordea led an NOK 304MM Thai Bhat 35.294 equity offering for PGS in Nov. of its new notes. Hong Kong dollar 7.756 The exchange offer was one component of a series of events to help strengthen PGS’ balance sheet that included a private placement of 5.5 million common shares at NOK 22.5 each to gross NOK 1,923,750,000 ($225 million) to help pay for the cash ABOUT PLS portion of the exchange offer. The company also got its lenders to extend the maturity of some of its revolving credit facility due in 2018 to 2020. The facility was also cut by InternationalCapital is published every $100 million to $400 million and will be reduced further in September 2018. three weeks by PLS Inc. PLS InternationalCapital covers the energy finance sector of budgets, spending, Faroe Petroleum enters new lending facilities Continued From Pg 1 financial performance and tracking trends CEO Graham Stewart said the company’s combination of existing cash, the new credit in available capital from commercial banks facilities and cash flow from its producing assets would provide ample funding to “take and other providers. advantage of the material development upside in our portfolio” as well as to invest in more To obtain additional PLS product details, exploration on the Norwegian Continental Shelf. To that end, Faroe had announced it was drill www.plsx.com/publications. interested in Danish NOC Dong’s package of North Sea assets but was too small PLS Inc. to take it all on its own. One Riverway, Ste 2500 • Houston, Texas 77056 Specific funds strictly for Norwegian A 13.2% stake in Faroe, Continental Shelf activity. +1 713-650-1212 (Main) comprised of 48.06 million shares, was +1 713-658-1922 (Facsimile) sold to Delek Group Ltd. by Dana Petroleum Ltd. in a Dec. 22 transaction worth £42.8 million, or 89p a share ($52 million, or $1.08). The To obtain additional listing info, contact us at +1 713-650-1212 or [email protected] sale comprised Dana’s total stake in Faroe and per January 29, 2016 InternatIonal Scout with the listing code. . UK share register data makes Delek the company’s 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 development project, which lies 350 km northwest of Luanda, and its start- mastheads for our international products. up follows that of Sangos field in November 2014 and Cinguvu field in April 2015. With Changing the “Explorer” name to © Copyright 2017 by PLS, Inc. new largest singular shareholder, ahead of Fidelity 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. InternationalScoutApproved in 2010, West Hub reports, Oct. where we have 6 taps or will tap Block 15/06’s Start of Mpungi will bring West Hub to been publishing Regional 100,000 bo/d during 1Q16. Sangos, Cinguvu, Mpungi, Scouts for three-plus years Mpungi North and Vandumbu fields. They hold a gross 3 Bbbl (24-34° API), all in in plays like the Bakken and Eagle Any means of unauthorized reproduction is Investments, BlackRock Investment Management Lower-Middle Miocene formations that feature normal pressure and temperature ranges. Ford. The 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 Faroe to fast track Brassethe good times but will roll again. prohibited by federal law and imposes fines East Hub in turn aims to develop 230 MMbbl at the Cabaca Norte and Cabaca and Aviva Investors, which owned 9.29%, 7.93% and South East discoveries, which also lie in Block 15/06. Continues On Pg 6 acquisition of Paris-based PetroWire Premier expands Falklands potential with Isobel Deep re-drill last April, and PLS plans to integrate Twitter-like abstracts, original content Off the Falkland Islands, Premier Oil’s Well 12/20-2 re-drill confirmed the needs partner for Northand research Sea archives in thefind. perfect Isobel Deep discovery as well as found pay in additional sandstones. Drilled to 3,014 up to $100,000 for violations. 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). 6.87%, respectively, of Faroe’s shares outstanding. 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 Find more on the energy finance arena at www.plsx.com 14/20-1 reached 2,526 m in water 400-450 m deep and intersected the top 23 m of To learn more about PLS, call +1 713-650-1212 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 09, No. 01 5 EnergyFinance Traders Vitol makes $1 billion loan to Iran’s state oil company ’s FY16 profits off Vitol will lend the equivalent of $1.0 billion in euros to Iran’s state-owned oil company 12% to $975 million National Iranian Oil Co. (NIOC) secured by future exports of refined products, sources familiar with the matter told Reuters. The pre-finance deal is the first major contract Commodities trader Trafigura Group signed between a trading house and Iran since sanctions were relaxed a year ago. Pte Ltd. reported a 12% drop in 2016 annual The agreement was reportedly signed in October and takes effect this net profit to $975 million for its fiscal year month, one of the Tehran-based sources said. “It is in euro...with the interest ended Sept. 30, while EBITDA was down rate of around 8% in exchange for oil products,” the source said, adding that 13% to $1.63 billion. Gross some of those products could be provided margin was squeezed to 2.3% First contract between a trader & Iran by the private sector rather than NIOC. from 2.7% for FY15, which since loosening of sanctions. Traders have been doing more deals boasted “exceptional market conditions due that involve pre-finance in order to secure long-term access to volumes of oiland to contango,” CFO Christophe Salmon said. products. The practice has kept Iraqi Kurdistan afloat for the past two years while The trading house showed a sharp it battles ISIS. rise in volumes—oil up 42% to an Oil companies like , Eni and BP have been very slow to resume average of 4.3 MMbbl/d, while the relationships with Iran for fear of violating laws stemming from EU and US sanctions, metals and minerals division was up but private traders are more flexible and have fewer of those concerns. On the flipside, 13% at 59 million tons. Trafigura’s oil- though, traders are not usually the first choice for Middle East crude producers because trading volumes have more than doubled they prefer to control pricing and destination themselves. since 2012. Trafigura, owned by nearly Prior fiscal year was ‘exceptional’ Glencore starts taking shipments from Rosneft sub because of contango, CFO said. Further to the Glencore-led purchase of 19.5% of Rosneft via a “privatization” 600 of its staff, paid out $719 million to deal with the Russian government for €10.2 billion ($10.8 billion), Rosneft confirmed shareholders in 2016 via a share buyback, Jan. 10 that it had signed a five-year deal to supply up to 55 million metric tons, or down from $776 million in FY15. about 403 MMbbl, of oil to Glencore’s JV with Qatar Investment Earlier, the company had disclosed $33 Authority, its partner in the Rosneft share purchase. Annual volumes billion of direct deals with state-controlled attributable to the agreement, which was effective as of Jan. 1, will be 4.5-11 mt. Glencore confirms that it has producers during 2014 and 2015 in its annual completed purchase of stake in Rosneft. responsibility report, Trafigura included The financial size of the deal depends payments to all state oil companies, not just on the market price for oil in the long term. The price of each shipment will be determined those that are members of the Extractive using a formula based on market prices for crude oil at the time of delivery, the document Industries Transparency Initiative (EITI), said. While Glencore did not comment on the closing of the supply agreement, it did a disclosure program meant to stop confirm on Jan. 3 that the purchase of the stake in Rosneft had indeed closed. corruption and enhance visibility. In 2014 and 2015, Trafigura’s purchases from EITI Glencore’sTargeting Net greater Debt balanceEstimated sheet to bestrength $17B and flexibility member countries were $3.5 billion and $1.4 billion respectively, while purchases • Strong BBB/Baa ratings target Net debt/Adjusted EBITDA and maintenance remains a top from non-members totaled $14.9 billion priority Historical maximum 3.0 and $12.7 billion. • Our proactive actions in 2015/2016 leverage target of 3x 2.9 demonstrate our commitment 2.8 • Targeting maximum 2x Net 2.8 debt/EBITDA through the cycle 2.7 2.7 • Lower gearing = less risk/more flexibility/stability of distributions • Should result in lower overall cost of capital 2.4 • Bond maturity profile smoothed • Recent $1.5bn bond tender caps post- Worldwide 2017 maturities around $3bn in any one year Now targeting energy news maximum through • We currently remain net buyers of our the cycle leverage of & analysis debt 2x – New $1bn bond tender offer announced December 1st 2016 1.8 Global oil and gas intelligence H1 FY H1 FY H1 FY H1 FY delivered straight to you. 2013 2013 2014 2014 2015 2015 2016 2016F*

www.plsx.com/reports/international Source: Glencore Dec. 1 Presentation via PLS docFinder www.plsx.com/finder

For general inquiries, email [email protected] Access PLS’ InternationalCapital archive for previous energy finance news InternationalCapital 6 January 20, 2017 Europe ■■ AIM-listed Baron Oil Plc signed a 12-month 6.0% loan facility Transmission network owner National Grid won’t have to split agreement on Jan. 6 with fellow AIM- UK’s National Grid will not be forced to break up after all. The company that listee InfraStrata plc to borrow up to runs Britain’s electricity system agreed to boost protections against conflicts of £300,000 ($365,000) secured mainly interest in a deal announced by energy regulator Ofgem. The system operator unit will against a 90% interest in the Islandmagee become a separate legal entity within National Grid but with a more gas storage project in Northern Ireland. distinct separation for the system operations unit with employees, The company can extend the term of the offices and a board apart from the rest agreement by an additional 12 months. of National Grid. Certain MPs cited conflicts of interest over NG’s control of UK’s grid. The loan will convert to an on-demand National Grid generates most of its facility on April 30. revenue in the UK by charging utilities for access to its high-voltage transmission ■■ French geophysical network. As operator, it has control of the system and a lot of sway in government company CGG got a waiver energy policy, something that some members of parliament believe created “intractable from the various lenders attached to its and growing” conflicts. Ofgem CEO Dermot Nolan told the Financial Times that credit facilities in the US and France, a legally separate system operator should mitigate any of those conflicts while and to its Nordic loan, on leverage and allowing National Grid to do its job. National Grid CEO John Pettigrew had argued coverage ratio covenants as of Dec. 31, against a breakup saying it would be too disruptive while the energy industry was 2016. The company said it is working undergoing rapid change. toward a debt restructure and will propose measures to its creditors and shareholders Energean will seek & invest $1.5B to develop gas fields shortly. The company expects to report Greece’s only energy production company, Energean Oil & Gas, said it will YE16 net debt of about $2.3 billion, up spend up to $1.5 billion to build its own eastern Mediterranean production system less than a percentage point from the end to tap into the deepwater Tanin and Karish gas fields about 62 miles off the coast of Q3 and below its $2.4 billion year end of Israel. Energean target, but it warned that the market for its Will turn to domestic Greek & foreign bought the fields, banks for funding. sales remained difficult. with combined ■■ Romanian-focused Claren Energy reserves of about 2.4 Tcf, last August for $148 million from Delek Group and sold 9.96 million units at C$0.08 each to Noble Energy and hopes to bring in a gross $796,000 in the first tranche of a financial partner sometime this year to Seeking $1.5B for Tanin/Karish private placement that will ultimately sell share development risk. 25 million units to raise $2.0 million. Each Instead of using Noble’s and § Deal signed in August 2016 with Delek unit consists of one common share and a Delek’s infrastructure, Energean would Drilling and Avnerfor the sale of 100% of their holdings in the Karish and Tanin warrant to buy another common share at lease its own FPSO and build a separate natural gas fields, offshore Israel $0.15 each for two years. $1.0 million pipeline to Israel. CEO Mathios Rigas § Implementaon of the Israeli Gas of the proceeds from the 25-million unit FID contingent upon Israeli approval, Framework and the strategy to develop sale will go toward clients of Haywood gaining sales contracts. the Israeli energy market Securities. The remainder will go toward § Gas sales limited to Israeli domesc working capital and to pay for Phase 2 at market –no export told Reuters that Energean’s totally the Bobacu gas field. § Discovered Gas fields with independent system will be financed ■■ Fred. Olsen Energy ASA obtained with $1.3-1.5 billion from local and - 2.4 Tcf, (NSAI), 2C Conngent Resources approval from its syndicate banks to international banks. - 25mm bbls light oil (STOOIP). amend its $2.0 billion credit facility to The company will make its final § Energean commied to subming a change the minimum cash covenant to investment decision next December, development plan to the Israeli $80 million, and to restore the original after the Israeli government approves government within 6 months of closing amortization schedule starting 2018 after the development plan and the company the transacon. prepaying $95.5 million in scheduled secures contracts within Israel for Source: Energean Oct. 25 Presentation via amortizations for January and July of this 105.9 Bcf of gas per year. Production is PLS docFinder www.plsx.com/finder year prior to YE16. The company said anticipated for 2020. the available amount under the revolving credit facility of $210 million will be Information. PLS provides clients with the research, marketing reduced by 50% and the remaining 50% Transactions. & consulting services they need to better manage their will be temporarily suspended during the portfolio & facilitate profitable transactions. waiver period. Interest went up to 2.7% Advisory. For more information on PLS services, please call +1 713-650-1212 p.a. from 2.3% through 1H18.

Find more on the energy finance arena at www.plsx.com To learn more about PLS, call +1 713-650-1212 Volume 09, No. 01 7 EnergyFinance Europe Stock buyback rejection foreshadows Bowleven brawl ■■ Cyprus-based SD Standard Africa-focused Bowleven had to end its share-buyback program after a Drilling Plc placed over 111 million resolution for its continuation was rejected at a mid-December annual general shares for gross proceeds of NOK 100 meeting by main opponent activist shareholder Crown Ocean Capital. Chairman million ($11.76 million) for investment Billy Allan called Monaco-based private investor Crown’s actions opportunities in the oil services part of a broader agenda to frustrate the strategy of the management segment. These investments aim to team and to try to obtain control of the Crown Ocean Capital votes against plan give the company control over a larger future direction of the company for its to buy back up to 15% from the market. fleet of assets and may take the form own interests on the cheap. of direct investment into a company, or The company said that excluding Crown’s votes, all resolutions tabled would have into securities or independent assets. been passed with a vast majority of votes cast in favor of each resolution. Among all the Saga Tankers, Strata Marine & major institutional shareholders who voted, they voted in favor of all the resolutions. Offshore, QVT Financial LP, Apollo Barclays, Credit Suisse and Deutsche Chairman Allan called Crown move Asset Management and HRF Marine Bank have stakes in Bowleven. part of an agenda to seize control. intended to buy a minimum 16,666,666 Allan said that Crown has provided shares under the offer, which ended up “no satisfactory explanation” for the vote against the resolutions nor has it made oversubscribed. its intentions clear. The share repurchase program was implemented after the 2015 ■■ Serinus Energy Inc. plans to sell annual general meeting to buy back up to 48,619,857 ordinary shares, or 14.99% up to C$25.2 million ($19.14 million) of its shares outstanding. Bowleven had Bowleven has 317.5MM shares worth of common shares in an offering bought back over 2.4 million shares outstanding & $78.5MM market cap. led by GMP First Energy. 50.76% through Nov. 8. owner Kulczyk Investments, with Separately, the company announced the departure of exploration director Ed almost 40 million shares, said Willett, who had been with the company since 2007. In November, the company it would buy slightly more than announced that Crown had unsuccessfully tried to oust three non-executive directors $12.79 million of the equity to from its board and replace them with Crown nominees. be offered in order to maintain Asia its ownership position. Net proceeds will be used to fund development of the Petronas capex spending not likely to rise in 2017, bank says Moftinu Gas Plant and pre-work for the Company and partners will make FID on $11.4B LNG project in April 2018 drilling program in the Satu Mare Capital spending at Malaysian NOC Petronas is expected to be static this year, Concession in Romania and production according to Kuala Lumpur’s Hong Leong Investment Bank. Malaysia’s portion of enhancement in the Sabria block in Tunisia, the OPEC output decrease commitment and for general corporate purposes. is 20,000 bo/d, so the bank is Final spending for 2016 estimated at $10.76B, $8.05B actual through 3Q16. ■■ The Eastern Caribbean Supreme “adamant that Petronas will not Court in the British Virgin Islands spend more capex this year compared to last year.” The company had appointed liquidators for XCite Energy spent MYR 35.938 billion ($8.05 billion) through the first nine months of 2016, on Ltd. in December. Now in liquidation, track for an estimated MYR 48 billion Cutting 648,000 bo/d production by the company is seeking a ($10.76 billion) on an annualized basis. 3% to comply with OPEC commitment. fast sale. Prior to the joint Last year at this time, CEO Wan liquidators’ appointment, Zulkiflee Wan Ariffin said the company would reduce its capex and opex over the next Xcite’s directors tried a futile marketing four years by MYR 50 billion ($11.2 billion). process for the company’s assets, which The company will also decide the fate of the $11.4 billion Pacific NorthWest LNG are licenses in four UK North Sea terminal project in Canada in April, a government official confirmed. Petronas holds blocks including the Bentley field. The 62% interest in the proposed 19.2 mtpa project with Sinopec, Indian Oil Corp., Japan company’s sub Xcite Energy Resources Petroleum Exploration and Petroleum Pacific NorthWest LNG FID would plc is not in liquidation. Brunei splitting the remaining 38%. come with major modifications if a go. The group had originally planned to begin construction by the end of 2015, although falling commodity prices derailed those plans. Recent reports say the group is considering moving part of the project to a new island off the British Columbia coast—leaving the liquefaction plant on Lelu Transactions Island and moving the docking facilities to Ridley Island that wouldn’t require the Metrics and construction of a costly mile-long suspension bridge. The company said it would Comparables invest more in commodity chemicals and refined product in India. A recent investment www.plsx.com/ma in an Indian urea plant makes it Asia’s second biggest granular urea maker. For general inquiries, email [email protected] Access PLS’ InternationalCapital archive for previous energy finance news InternationalCapital 8 January 20, 2017 Asia ■■ China Life Insurance and State CNOOC increases 2017 capex budget by 39% YOY Development & Investment Corp. invested a total of RMB22.8 billion China National Offshore Oil Co. plans to spend between RMB 60-70 billion ($8.7- (US$3.3 billion) in Sinopec’s 1.2 Bcf/d 10.2 billion) this year, which at the high end of the range represents a 39% increase in Sichuan-to-East China gas pipeline. The spending from 2016’s RMB 50.3 billion. While production will decrease about 4% this year 2,170-km line runs from the Puquang gas to an estimated high of 460 MMboe, the company is prepping for five projects that it hopes field to some of China’s main industrial to have onstream this year, and 20 projects under construction that would bring production centers. CLI now owns 43.86% and SDIC up to 470 MMboe in 2019. owns 6.14% of the line. The investments CNOOC is the first Chinese CNOOC’s onshore gas production is under unlisted parent company. are part of the Chinese government’s state-owned energy enterprise to reform effort, albeit a slow one, to sell off disclose 2017 capex, so it serves as the first indication of potential investment plans by stakes in state-owned assets. peers such as Petrochina and Sinopec, and as the Financial Times points out, “a good ■■ Emas Offshore will avoid proxy for the position of the Chinese industry.” When oil prices fell in 2014, CNOOC was a drawn-out legal battle with the most aggressive of the Chinese SOEs to cut spending. All the Chinese oil companies Perisai Petroleum Teknologi by agreeing then used the “lower for longer” period to retire aging and uneconomic fields. to “full and final” settlement of disputes relating to a put option from 2012 giving Sinopec considering retail unit IPO—again Continued From Pg 1 Perisai the right to sell its 51% stake in Sinopec had originally planned to take the unit public in 2015, aiming to raise $5- SJR Marine to Emas for S$62.2 million 10 billion at the time. However, Sinopec chairman Fu Chengyu resigned and the idea ($43 million), exercisable Nov. 26, 2016. was put on hold. The company gave the possible 2015 IPO a huge build-up, parceling Emas, which will have to pay $20 million off stakes in the company in a over the next few months and the remaining highly publicized process that Original 2015 IPO delayed after Fu Chengyu resigned. over a 15-year period, commented that this sold off nearly 30% of the unit settlement “significantly reduces the cash to 25 separate investors for a total RMB 107.1 billion ($15.52 billion). All approved upfront vis-à-vis what would have been investors were either incorporated in China or affiliated with Chinese entities. under the previous terms of the put option.” Sinopec still owns 70.01% of the unit and the IPO is one of several options being ■■ Honghua Group Ltd. reported discussed as the company considers a restructuring, the sources said. A Hong Kong that China Aerospace Aerospace listing would provide access to the deal to more non-Chinese investors than listing Science and Industry Corp. bought on any of the other Chinese exchanges. It over 1.6 billion common shares and More than 30,000 gas stations & would also bring more eyes and scrutiny 23,000 convenience stores in China. Jianhong Capital Fund I LP bought on the company’s financial reporting and 508 million common shares through a prompt the company to act in the best interests of shareholders, which is a mindset that private placement at HK$0.77 ($0.10) would need to shift from one serving the state. each. The new purchases give China Aerospace about 30%, and Jianhong over Retail & Marketing Operations Show Growth 9.4% of Honghua’s stock outstanding. In addition, three people attached to China (mm tonnes) 1-9'15 1-9'16 YoY Change % Aerospace are joining Honghua’s board and acquiring an aggregate 39.47% of the Total Sales Volume of Refined Oil 140.75 145.72 3.5 Products company, boosting its shares outstanding Domestic Sales Volume of Refined to more than 5.35 billion. Honghua is a Oil Products 126.71 129.58 2.3 holding company involved with land Retail 88.19 89.79 1.8 drilling rigs, offshore drilling modules, and related parts and components. Direct Sales and Distribution 38.52 39.79 3.3 ■■ Integrated Energy HK Ltd. placed 7.8 million shares privately at KRW 156 Annualized Average Throughput 3,857 3,899 1.1 per Station (tonne/station) ($0.13) each for gross proceeds of more As of Dec. As of Sep. than KRW 1.216 billion ($1.02 million) 31 2015 30 2016 Change % on Jan. 5. The company is an investment holding company that owns companies Total Number of Sinopec-branded Service Stations 30,560 30,721 0.5 engaged in marine bunkering services. It was formerly called Nitgen Eco & Company-operated 30,547 30,708 0.5 Energy International Ltd. and is a Source: Sinopec Oct. 28 Presentation via PLS docFinder www.plsx.com/finder subsidiary of Integrated Energy Ltd.

Find more on the energy finance arena at www.plsx.com To learn more about PLS, call +1 713-650-1212 Volume 09, No. 01 9 EnergyFinance Asia PTTEP plans to spend $2.9B on capex & opex in 2017 Rupee demonetization leads PTT Exploration and Production Public Co., Thailand’s largest oil and gas to less Indian fuel demand E&P, set its budget at $2.9 billion for E&P operations this year, consisting of $1.64 After demand for fuel in India last year billion in capex and $1.26 billion in opex. Projects in Thailand will receive 64% of rose at the fastest rate in at least 16 years, the estimated capex, with most of the funds allocated for the offshore Arthit, growth in demand may slow by as much S1, Bongkot, Contract 4 and MTJDA developments. Neighboring Southeast as 40% this year because of a government- Asian countries account for 24% of capex, mainly for producing assets Almost two-thirds of capex to be spent induced cash shortage. “We see Indian in Thailand, 24% elsewhere in SE Asia. demand growth slowing ... due to the offshore Myanmar. recent currency demonetization drive Spending in Australia, Africa and North and South America will take up the by the Indian government,” said remaining 12% of capex, primarily operational activities in the PTTEP Australasia Wood Mackenzie. project and the pre-development of the Rovuma Offshore Area 1 project in Mozambique. India will still come in at No. 3 An estimated $138 million in exploration expenditure will be used mainly for seismic in the world for fuel demand behind acquisition, geological and geophysical studies and drilling and appraisal activities. China and the US, Wood Mac said. Oil PTTEP also set its investment budget for the next five years (2017-2021) at product demand this year will be in the $14.95 billion. President and CEO Somporn Vongvuthipornchai said the plan reflects 1.6 MMbbl/d range compared with 2.7 the “strategic directions of 3Rs—Reset, Refocus, Renew—with priority on maintaining the production MMbbl/d last year. January 29, 2016 level to effectively serve domestic energy demand, Prime Minister Narendra Modi’s 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? as well as accelerating the development of existing Eni started up the Mpungi oil field offshore Angola in Block 15/06. Mpungi is part of Readers will notice a change in the the West Hub development project, which lies 350 km northwest of Luanda, and its start- mastheads for our international products. currency crackdown has led to 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. projects in the pipeline.” Approved in 2010, West Hub reports, where we have InternationalScoutStart of Mpungi will bring West Hub to Oct. 28 taps or will tap Block 15/06’s been publishing Regional 100,000 bo/d during 1Q16. a cash crunch that has hurt India’s overall Sangos, Cinguvu, Mpungi, Scouts for three-plus years Mpungi North and Vandumbu fields. They hold a gross 3 Bbbl (24-34° API), all in in plays like the Bakken and Eagle Lower-Middle Miocene formations that feature normal pressure and temperature ranges. Ford. The new name is also an effort to Somporn added that the company has closely 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 output and consumer demand. Factory the good times will roll again. PTTEP East Hub in turn aimspulls to develop 230 MMbbl trigger at the Cabaca Norte and Cabaca on South East discoveries, which also lie in Block 15/06. Continues On Pg 6 acquisition of Paris-based PetroWire Premier expands Falklands potential with Isobel Deep re-drill last April, and PLS plans to integrate monitored the oil price situation, with the flexibility 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 MyanmarIsobel Deep discovery as well as found field pay in additional sandstones. upgrade. Drilled to 3,014 activity fell by its sharpest rate in eight 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 to adjust its investment plan appropriately. 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 years last month and car sales were down Re-drill extends initial 23-m gross oil not be worthy of a story but interesting discovered reservoir. 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 CARIBBEAN LEASES the most in 16 years. an oil-bearing reservoir in the F3 sands. The formation’s oil is similar to Sea Lion’s 4-Key Blocks. hydrocarbons (26-29°API), but the well registered higher-than-expected pressure FOR SALE OR JV DV that resulted in borehole influx. Continues On Pg 10 OFFSHORE GAS PLAY 2014 3-D Seismic On Blocks. CARIBBEAN Pertamina spending less in 2017 but couldExxonMobil leads work use in hot Guyanese offshore $75BGas Infrastructure Nearby. Analogous To Major Fields In Trinidad. Advocates say demonetization was 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 Indonesia’s state-run Pertamina said it would need 10 yearscollected by CGG and and Fugro. In addition an to determining investment Liza’s SOUTH AMERICA OPPORTUNITY of Massive Acreage Position. the right long-term decision despite short- 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 IDR 1.0 quadrillion ($74.9 billion) to catch up with its Malaysian neighborOPERATED Petronas WI AVAILABLE term disruptions. Consumer demand 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 across the Java Sea, Antara News reported. The investmentof Liza and inis looking at timea 60,000 bo/d early-production and FPSO that would money later be More listings at plsx.com/listings would is expected to be normal by Q2, after replaced by a 150,000-200,000 bo/d offshore unit. Continues On Pg 10 All Standard Disclaimers & Seller Rights Apply. dropping 20% during the first 50-day increase the company’s assets 2.5x its current base to outdo Petronas, said period after the ban on notes. Dwi Soetjipto, Pertamina’s president director, who Spending $6.67B in 2017, off 3% YOY, and will be more aggressive. added that at around IDR 40 trillion ($3.0 ■■ Indian E&P Prabha Energy Pvt. billion) last year, his NOC made more than Malaysia’s. For 2017, though, Pertamina Ltd. placed $20 million of its compulsorily will have to make do with the $6.67 billion it plans to spend on capex, slightly lower convertible debentures with parties than the $6.9 billion spent in 2016. including new investor Tridevi Capital Dwi said the company has benefited from improved efficiency in the past two Ltd. The debentures will be convertible years. “In 2015, efficiency saved around $800 million and in the first 11 months of into 40% of the company’s common 2016 efficiency of $2.88 billion was a breakthrough project,” he said. The company’s shares on fully diluted basis. Prabha said president commissioner Tanri Abeng told the press in late 2016 that Pertamina will the round was being raised at a post money face many challenges in 2017 and must be '17 profit target set at $3.04 billion, 6% valuation of $50 million. The company “more aggressive in order to outperform” higher YOY, on expected EBITDA of $7.43B. explores and produces conventional and its 2016 results. and gas, and CBM. The Jakarta Post reported that Pertamina’s shareholders agreed to set the company’s ■■ Sunshine Oil Sands closed the net profit target at $3.04 billion in 2017, up 6.0% from 2016’s net profit, based on an remaining 98 million-plus common assumption that the company’s revenue and EBITDA would increase by 15.01% to share placement at HK$0.75 ($0.10) $42.6 billion and 6.0% to $7.43 billion, respectively. each for gross proceeds of about $9.64 million. The issued shares represent just Over 1.5 million slides under 2.0% of the company’s common Save time sourcing at your fingertips in seconds. outstanding. Net proceeds will go toward plus general working capital and for future critical data www.plsx.com/docFinder development, as well as operating costs of the company’s West Ells project. For general inquiries, email [email protected] Access PLS’ InternationalCapital archive for previous energy finance news InternationalCapital 10 January 20, 2017 Supermajors Woods takes over as Exxon Shell may face UK courts for Nigerian spill, or may not chairman & CEO A London court will soon decide whether Shell can face trial in the UK over oil ExxonMobil has a new chairman and spill allegations in Nigeria. Legal experts predict that a decision that lets the case CEO as of the first of the year. It’s Darren move forward could attract more cases against multinationals in the UK. The question Woods—a 24-year employee who started specifically is whether members from the Bille and Ogale groups, two communities as a planning analyst. in Nigeria’s oil-rich Delta region, can sue the Anglo-Dutch company in British courts. He progressed The communities say that Nigerian courts are unfit to hear the case through a number of domestic and against the Shell subsidiary Shell Petroleum Development Company of international assignments for Exxon Co. Nigeria while Shell says the jurisdiction should be Nigeria because it is International, ExxonMobil Chemical Co. “uniquely a Nigerian problem.” In addition, Shell has denied responsibility for the and ExxonMobil Refining and Supply Co. spills, which it says were due to sabotage and illegal refining. before being appointed VP of ExxonMobil Bille and Ogale launched their claim shortly after Shell agreed to settle a $68 million Chemical in 2005 and then director of claim with another Nigerian group, the Bodo community. Victory by the communities are refining for Europe, Africa and the Middle raising concerns that residents would let oil spills worsen at remote sites by denying the East in 2008. In 2010, he was named VP company access to clean them up because payouts are often linked to the scale of the damage. of supply and transportation, and in 2012 he became president of the company’s Capex among world’s biggest companies Continued From Pg 1 refining and supply unit. Woods became The slow but evidently steady recovery in oil prices has invited confidence among SVP of ExxonMobil Corp. in 2014. E&Ps to start investing again. Brent oil is at $55/bbl, double the 12-year low hit a Middle East & North Africa year ago, after OPEC members and other producers said they’d cut output to stabilize prices. On top of that, rampant cost-cutting and more economical technology have ■■ Turkey-focused Condor Petroleum made projects feasible at lower price points—still expensive, but less so. established a $10 million credit facility, “The industry has moved out of survival mode, through a phase of adaptation which it could borrow in a single tranche, to lower prices and now it is beginning to think about renewed growth,” which bears interest at 14% and matures Wood Mackenzie analyst Malcolm Dickson told the Financial Times. three years from the date the loan proceeds Among the big-ticket items that are received. Condor also granted the E&P spending still 40% below level may see FIDs this year are Total’s lender a three-year warrant certificate for three years ago. Libra deepwater field in Brazil and C$1.0 million common shares of Condor Absheron gas project in Azerbaijan; Eni’s Coral South gas field in Mozambique; at $2.35 each. Proceeds will be used to and ExxonMobil’s Liza oil discovery offshore Guyana. Of course, BP’s November fund capex at Condor’s Poyraz Ridge field announcement of its $9.0 billion commitment to Mad Dog 2 in the Gulf of in northwestern Turkey. kicked it all off. ■■ Masirah Oil Ltd. placed 20,000 E&P investment this year will still be 40% below 2014 levels and the number common shares privately at $400 of projected FIDs will still be about half the annual rate from 2010-2014, Wood each to gross $84 million. Among Mac says, but it’s a movement in the right direction. Uncertainty over long-term the investors was Rex International demand for oil, doubt about OPEC cuts sticking and CEO promises to shareholders Holding Ltd., which returned to pick up to preserve and grow dividends above all else are the things that could derail the another 7.41% stake in Masirah to bring forward trajectory. Moody’s analyst Steve Wood said the five largest Western oil its total ownership interest to 86.09%. companies want to get back to being Masirah provides oil and gas exploration, Factors like dividends, OPEC & doubt cash flow-positive and not lock in a production, and drilling services in could derail upward growth. capital budget at $55/bbl. Oman. It owns and operates the Block Investment rebound will be strongest in US shale production, especially in the 50. Masirah will use proceeds for drilling Permian Basin where new production opportunities are comparatively cheaper. activities and general working capital. Average well costs of about $5.0 million allow companies to be much more flexible ■■ The UAE will invest more than $164 than mega projects that could be a decade or more before first oil. billion in its energy sector by 2050, per Prime Minister Sheikh Mohammed bin US spending— Rashid Al Maktoum. “Our energy plan for Barclays reported that US shale oil producers, the first to cut activity when the next three decades envisages the usage crude prices fell in 2014, are also likely to be the quickest to recover. The US’ EIA of diverse sources of energy, including said production would increase significantly this year through 2018, and Citigroup renewable, nuclear and organic energy. analysts said US E&P companies would spend around 36% more this year if oil stays We will invest AED 600 billion until the at $55/bbl. If it goes up to $65, Raymond James analyst Praveen Narra thinks E&P year 2050, in order to ensure a persistent companies could double spending. economic growth,” the sheikh tweeted.

Find more on the energy finance arena at www.plsx.com To learn more about PLS, call +1 713-650-1212 Volume 09, No. 01 11 EnergyFinance Middle East & North Africa Libya rebounding & exporting, could crimp OPEC plans Saudis plan to float sukuk The militias that once suppressed Libya’s oil production and blocked its ports after $17.5B raise last Oct. from shipping its primary export are now friendly with the country’s National Oil Co. and have helped revive the industry there. As a result, Libya’s production was at Saudi Arabia will sell Islamic bonds, a three-year high of 708,000 bo/d as of the beginning of the year, rebounding from otherwise known as sukuk, as early as next under 200,000 bo/d last year, and exports are starting up again. In late December, an month following its first-ever sovereign oil tanker at the largest Libyan export terminal at port El Sider was loading its first debt sale of $17.5 billion in bonds to the cargo after two years. El Sider was one of four ports closed by blockade since 2014. global market last October. The sharia- It reopened in mid-September but needed compliant sukuk would appeal more to Output could hit 900,000 bo/d this repairs before being able to take tankers. regional investors whose investment year, up from 200,000 bo/d last year. While positive for Libya, the tripling parameters may not have enabled them to of the country’s oil production is now a fly in OPEC’s ointment as the cartel moved to participate in last fall’s sale, which ran up cut output in order to raise prices. The move worked as the oil price has risen 19% to $67 billion in book orders. $55/bbl since its Nov. 30 decision. But OPEC exempted Libya from any output cuts. Some of the underwriters NOC believes production could hit 900,000 bo/d this year, or over 55% higher than from the conventional bond Libya’s production at the time OPEC decided to cut. Not only would that extra oil on offering who have the capabilities the market erase the benefit of Russia’s curtailing its output in concert with OPEC, but associated with the special needs of it may also give Saudi Arabia no choice but to cut more of its output than planned so Islamic financing will return to help the that the combined members of OPEC are Saudis launch the as-of now unquantified No requirement for OPEC member able to stick to its targets. Libya to cut production. Neither amount nor currency The NOC is one of Libya’s last denomination chosen for bonds as of yet. functioning institutions, and it’s gotten stronger recently. The Wall Street Journal reported that NOC’s 61,000 employees make it the largest Libyan company, and it sukuk offering. The Financial Times accounts for 95% of the country’s annual export revenue. “It’s the oil company as a reported that Citigroup, HSBC and nation,” North Africa Risk Consulting’s Geoff Porter told WSJ. “The real driving force JPMorgan, which participated last fall, behind rebuilding Libya as a nation state is the NOC.” are in “a strong position to be mandated.” Setting the stage for Libya’s rebound were western governments, including Last year, Pakistan, Indonesia the US, who told militia leaders it would benefit and Malaysia sold $9.4 billion of January 29, 2016 them to revive the oil industry. Jomode Elie Getty, sukuk in sovereign issues, up from InternatIonal Scout Serving the international upstream industry with information, analysis & prospects for sale Volume 08, No. 02 president of the Toubou Revolutionary Council, 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 $6.3 billion in 2015, per data from the West Hub development project, which lies 350 km northwest of Luanda, and its start- mastheads for our international products. up follows that of Sangos field in November 2014 and Cinguvu field in April 2015. With Changing the “Explorer” name to three fields now producing to the N'Goma FPSO, West Hub’s output is projected to grow “Scout” is the first step in bringing our to 100,000 bo/d during 1Q16. The field was brought on stream on time and on budget. international report in step with our U.S. which represents one of the militias abroad, told InternationalScoutApproved in 2010, West Hub reports, Oct. where we have 28 Dealogic. While a 49% YOY rise in taps or will tap Block 15/06’s Start of Mpungi will bring West Hub to been publishing Regional 100,000 bo/d during 1Q16. Sangos, Cinguvu, Mpungi, Scouts for three-plus years Mpungi North and Vandumbu fields. They hold a gross 3 Bbbl (24-34° API), all in in plays like the Bakken and Eagle Lower-Middle Miocene formations that feature normal pressure and temperature ranges. Ford. The new name is also an effort to WSJ the western governments persuaded his group 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 volume, global head of Islamic finance Mardi Gras offers the promise that WahaMpungi North and Vandumbu restart finds after start-up of West addsHub’s sister project, East 50,000Hub. bo/d 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 to address its grievances with Tripoli through legal Premier expands Falklands potential with Isobel Deep re-drill last April, and PLS plans to integrate Twitter-like abstracts, original content to OffLibyan the Falkland Islands, Premier output.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). Investors closer to home may invest 2,564-2,861 m. No oil-water contact was detected by the deepened well, and Herein we are also adding new content means instead of violence. 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 because of sukuk’s sharia-compliance. 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 Middle East industryGas Infrastructure Nearby. players borrowed 26% less in 2016 at S&P Mohamed Damak said that the 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 Energy companiesSOUTH AMERICA OPPORTUNITY in the six-nation Gulf Cooperation Council borrowed an collected by CGG and Fugro. In addition to determining Liza’s complexity of sukuk issuance would 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 aggregateExxon has been tight-lipped about how$17.5 much oil Liza-1 found, sayingbillion only last year, down 26% from the record $23.7 billion in loans affect volume unless there is increased 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 executedof Liza and is looking at a 60,000 bo/din early-production 2015 FPSO that would lateraccording be More listings at plsx.com/listings to data gathered by Bloomberg. Moreover, nearly all the market standardization or large issuance Continues On Pg 10 replaced by a 150,000-200,000 bo/d offshore unit. programs are established. borrowing occurredAll Standardduring Disclaimers & Seller Rights Apply. the first half of the year—Dubai oil traderBB Energy Gulf DMCC was the only borrower in 2H16 with a $200 million refi. Kuwait plans first $US- Lending had been on track for another record year before stability started creeping denominated debt sale— into oil prices mid-year, followed by 16% crude price rally in Q4. The region’s energy Kuwaiti officials met with bankers companies turned to banks and investors for cash as borrowing costs fell and oil to discuss raising up to $10 billion this prices stayed low. “If oil prices go up a few notches, it will help them rely less on year by selling dollar-denominated debt international borrowing,” said John Sfakianakis, director of economics research at globally. No mandated lead arrangers Jeddah-based Gulf Research Center. “There’s more money available for oil companies signed on yet, and it may be April or May to keep within rather than go out and borrow.” before the issue is launched, Financial While the industry borrowed less, the region’s governments borrowed more. Times reported. The country hopes to Mideast sovereign debt raises of $17.5 billion for Saudi Arabia, $9.0 billion for Qatar take advantage of lower interest rates and $5.0 billion for Abu Dhabi helped raise funds for governments to make up for to meet it needs with bonds, timing the deficits related to the slowdowns in their budgets brought on by reduced oil revenue. market in step with its reaction to new US Sfakianakis said continually rising oil prices and a US Federal Reserve rate hike President Donald Trump. this year would thwart industry borrowing but probably not government borrowing. For general inquiries, email [email protected] Access PLS’ InternationalCapital archive for previous energy finance news InternationalCapital 12 January 20, 2017 Sub-Sahara Africa Nigeria plans to hit the Tullow spending 45% less YOY on capex at $500MM road for new investment 2017 cash flow of $700MM & revenue of $1.3B Ibe Kachikwu, Nigeria’s minister for Tullow Oil plans to spend $500 million on capital expenditures this year, down petroleum resources, unveiled plans for from the nearly $900 million spent in 2016. The company had earlier mentioned that 2017 that include visits to the UK and US with TEN up and running since last September, it simply doesn’t have to spend as much to stimulate interest in investment in the this year. But it will put money toward other projects, and it’s looking at drilling its country’s oil sector. He said the country’s first exploration well away from its African base off the coast of Suriname. roadshow invitees will include new US Exploration and appraisal President Donald Trump, Nigeria’s Daily With TEN development spending work will get about $125 Post reported. “We are going to be seeking done, Tullow capex is lower. million, with some of it finding its way to to attract investments and complete all a wildcat well in Suriname’s Araku prospect, which could have up to 500 MMbbl of oil. the MOUs we have in China and India. Ghanan operations will get nearly $90 million, Kenya pre-development almost $100 We are looking to do a roadshow to the million and Uganda $125 million. In fact, Uganda will be cheaper for the company UK, we are looking to do a roadshow now that Tullow has agreed to sell 21.57% of its 33.33% stake in four Ugandan blocks to the US with President Donald Trump to Total for $900 million. coming in,” he said. Looking outside of historical West Tullow’s West African operations Africa base to Suriname. President Trump among roadshow should produce 78,000-85,000 bo/d, attendees, hopes Nigeria. including the effects of production-equivalent insurance payments related to Jubilee. TEN will average a net 23,600 bo/d, and European production is expected to be 6,000- Kachikwu said he would build upon 7,000 boe/d this year. relationships that Nigerian President The company anticipates revenue of CEO Heavey leaving in April, will be Muhammadu Buhari has established with replaced by Paul McDade. $1.3 billion, gross profit of $500 million other leaders in addition to conducting and operating cash flow of about $700 million. It also warned of a goodwill impairment oil block allocations and marginal flow of about $200 million and $300 million in post-tax exploration write-offs. awards to raise money. Refineries need to CEO Aidan Heavey is slated to resign his post after the company’s annual be revamped, he insisted, so they at least general meeting on April 26. He will assume the position of non-executive chairman, operate at 60% capacity, and Kachikwu succeeding Simon Thompson. Paul McDade, current COO, will succeed Heavey as said the country has a goal of reducing CEO. The company also appointed Les Wood as interim CFO while its usual CFO Ian fuel imports by 60% by 2018 and Springett is taking an extended leave of absence from the company in order to undergo substantially stopping them a year later. treatment for a medical condition. Wood is VP of finance and commercial and has been with Tullow since 2014, and with BP for 28 years prior.

For Tullow, Lack of TEN Means Less to Spend

2500 2016 Capex of c.$1bn Jubilee Turret Complete Exploraon • Includes Jubilee turret project c.$35m East Africa 2000 • Final year of TEN first oil capex of c.$600m transaction West Africa non-op (incl Europe) TEN services Jubilee 2017 Capex reducon 1500 • Low oil price, near term cash flow management for sellers +1 713-650-1212 scenario c.$275m $m - West Africa c.$100m

1000 - East Africa c.$100m Helping clients market non-core - Exploraon c.$75m 1H assets since 1987. 2016 • Jubilee turret project esmated at c.$80m 500 Capex PLS Advisory Services has helped opons • Addional Capex opons of up to c.$250m - Jubilee infill drilling c.$75m sellers market operated assets, - Progressing East Africa c.$100m non-operated working interests, 0 - Exploraon c.$75m 2014 2015 1H 2016 2H 2016f 2017f conventional prospects, large Notes: • Expectaon of posive FCF in 2017 at $50/bbl i) Exploraon expenditure is net of Norwegian tax refund ii) Capital costs exclude decommissioning costs and onerous rig contracts using higher addional capex scenario unconventional acreage plays,

royalty interests and

Ability to adjust future capex to reflect oil price and market condions assets for over 25 years. www.plsx.com/advisory Source: Tullow Oil Nov. 15 Presentation via PLS docFinder www.plsx.com/finder

Find more on the energy finance arena at www.plsx.com To learn more about PLS, call +1 713-650-1212 Volume 09, No. 01 13 EnergyFinance Sub-Sahara Africa Russia & FSU ■■ Oslo Børs-listed African Petroleum borrows €800MM from Japan & US banks Corporation Ltd. sold NOK 32 million Gazprom entered into a four-year €800 million credit facility with a banking group ($3.76 million) worth of common shares consisting of Japanese institutions Mizuho Bank and Sumitomo Mitsui Banking privately in a book building process Corp. and American bank JP Morgan Chase. through broker Mirabaud Securities. The The parties closed the deal during Russian President Vladimir Putin’s visit to company said the shares Japan on Dec. 15-16. At the same time, Gazprom discussed the cooperation were tradeable on Jan. 18. with another Japanese bank, Japan Bank for International Cooperation to London-based APCL is an finance the construction of the third phase Discussing loan for Sakhalin 2 LNG independent E&P company with interests of the Sakhalin 2 LNG project. plant with another Japanese bank. in 10 licenses in Côte d’Ivoire, Gambia, Separately, the company announced Senegal, Liberia, and Sierra Leone that its directors had approved entering a €310 million term loan for 3.5 years with comprising a combined net acreage of South Stream Transport B.V. to finance the Turkish Stream pipeline project. The 27,797 sq km. The company’s shares, money would cover expenses related Will put €310MM into Turkish Stream of which more than 106.7 million are to the concluded contracts on pipe and pipeline, the South Stream replacement. outstanding, currently trade at NOK equipment supplies, storage, assembly 2.79 ($0.33) each. and construction. Turkish Stream was announced by Russia over two years ago as a ■■ Angola NOC Sonangol CEO Isabel replacement for the South Stream project. January 7, 2015 • Volume 08, No. 01 dos Santos, the daughter of the country’s Gazprom was included in US sanctions on MidstreaMNews Serving the marketplace with news, analysis and business opportunities President Jose Eduardo dos Santos, fired Cheniere’s Corpus Christi LNG plans coming together Midstream sector a pipeline cooperation between American entities and Russian 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 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 the executive committee of subsidiary Bcfe and two LNG carrier docks. Cheniere believes LNG exports gets underway, midstream MLPs that energy companies with respect to technology and from the facility could begin Midstreamin 2018. Right now, the plant is awaiting US Department News operate under long-term fee-based 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 Sonangol Exploration and Kinder Morgan Tejas Pipeline and the income brings and the growth that needs services related to deepwater and shale exploration. Tennessee Gas Pipeline Co. have entered a multi-year storage and 15-year transport to occur due to booming US production. agreement to ship gas to the proposed Corpus Christi LNG plant. Under the terms Imperviousness to price swings as Stayof the agreement, up Kinder Morganto will date provide 563 MMcfd on of transportation pipeline service well as high projectsdemand 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 increased to include up to 820 MMcfd of capacity if warranted. Continues On Pg 12 Production on accusations of midstream investors so far this year. The company has expressed several times that US Veresen & KKR will spend billions in Montney buildout withVeresen Inc. PLS’and legendary investment Midstream firm Kohlberg Kravis Roberts & Co. News. midstream investment flowing freely last 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 “management weakness” and on the Alberta-British Columbia border. Veresen Midstream’s keystone investment similarly this year, staying buoyant due sanctions have no impact on its operations. 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 financial concerns in late December. She Midstream will provide compression and transportation services to the sellers for 30 FEATURED DEALS 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 told the Financial Times she planned to The assets are in the Dawson, BC area operated by Encana both independently and Also Tangipahoa & St. Helena Ph., LA via its Cutbank Ridge Partnership JV with Mitsubishi Corp. Continues On Pg 8 169-Drilling Locations. 80-Acre Spacing. TMS Abu Dhabi fund, possibly others, may want pieces of RosneftSEEKING JV PARTNERSHIP; 75% NRI PLAY DOT railcar regulations may need more time, study says Area EURs: 600-800 MBO/Well Area Also Contains High BTU Gas. separate the company into three units— A railcar industry trade group says one-third of the oil transported out of the DV 3395L Bakken by railcars could be forced onto trucks in the next four years. The Railway After the sale of 19.5% of Rosneft’s shares to GlencoreSupply Institute and claims that there the simply aren’t enoughQatar resources to retrofit all theInvestment 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 of cars. The DOT is expected to complete standards and compliance MISSISSIPPIAN & WOODFORD M exploration and production; logistics; and 71 Active Permits Offsetting Position deadlines for tank cars early this year DOT says over 16,000 cars a year can CURRENT & ONGOING DEVELOPMENT after initial proposals made last July. Authority for $11.3 billion in early December, reports by Russian newspaperbe retrofitted, reality says 6,400-6,600. 3/16thsVedomosti Royalty On Most Current Leases. “They can’t all be modified by the Net Prod: 8 BOPD, 27 MCFD, 4 BNGLD MISSISSI- 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 a division that handles its concessions Woodford EUR/Unit: 772 MBO & 4.8 BCF for the study. About 75,000 older tank cars, known as DOT-111s, fall into the category requiring Mississippian EUR’s: ~350 MBOE/Well claim that new potential shareholders might want to get into the act. Among themMiss Lime EUR/Unit: 1.4 MMBO is & 5.6 BCF Abu the upgrades as they have been determined to have the least crash-resistant components. Offers Due: January 15, 2015 It was DOT-111s that crashed and exploded in Lac Megantic, Quebec in July 2013, M 2098RR to international oil companies—to help killing 47 people, prompting continent-wide safety concerns. Continues On Pg 10 Dhabi sovereign wealth vehicle Mubadala Fund, sources said, which is lookingAll Standard Disclaimers & Seller Rights Apply.at a improve transparency. Non-oil interests Rosneft stake that may be resold from the stake acquired by the “Glencore consortium,” will be placed in a fund. as it has been called. Possible stakeholder Mubadala has ■■ UK’s Serious Fraud Office dropped The sale of the stake, almost portfolio valued at $63.5B. its corruption investigation into Soma equal in size to BP’s 19.75% Oil and Gas, which had been exploring interest in Rosneft, was heralded as a “privatization” of sorts as the government in Somalia. The SFO said there was holding company Rosneftegaz let go of some of its shares, but kept enough for the Russian “insufficient evidence to provide a realistic government to retain a majority stake. As part of the agreement, Glencore and Rosneft [prospect of] conviction” following 17 struck a five-year supply agreement for 220,000 bo/d to Glencore’s oil-trading division. months of investigating alleged bribes of Somali officials. The company, majority- ‘We should privatize everything’— owned by Russian billionaire Georgy Evidently pleased with the way Rosneft’s “privatization” ended up with investors Djaparidze’s family, claimed the SFO that weren’t Rosneft—which was the plan most were expecting—former finance probe left the company down to its last minister Alexey Kudrin, now chairman of the Center for Strategic Development, said £500,000 in cash. Unable to raise funds that all state-owned enterprises, including Former finance minister Kudrin all of the ones in the oil and gas sector, while investigated, Soma’s exploration advocates privatization, especially O&G. activities were suspended. should be privatized. Kudrin, who was the Russian finance minister from 2000-2011, said, “We have thousands of state- owned companies. With the exception of the security sector, scattered instances of social mission or cases of unprofitability, all other enterprises should be privatized, including those in the oil and gas industry. Anyway, we're going to move forward to Transactions privatization.” Metrics and He said the state doesn’t need to keep the oil and gas sector but Gazprom could Comparables be postponed for “some time.” He also said private companies should develop the gas www.plsx.com/ma industry further. For general inquiries, email [email protected] Access PLS’ InternationalCapital archive for previous energy finance news InternationalCapital 14 January 20, 2017 Australia & Oceania Russia & FSU XState grossing $25MM to buy California assets Tethys partially prepays loan Xstate Resources Ltd. is placing 657,894,737 common shares at A$0.038 each & amends debt agreement with four Asian investors for gross proceeds of $25 million. Each investor will own Tethys Petroleum prepaid about up to 15% of XState on a diluted basis. The company received 5% of the sale’s gross US$322,161 of the US$3.5 million proceeds within seven business days of the Dec. 29 agreement date and expects to non-convertible loan due in March receive the remainder by Jan. 25. The company explained that all four investors are from Annuity & Life clients of Sanston Securities Australia Reassurance Ltd., an affiliate Four unrelated investors from Asia Pty Ltd. and that they are unrelated parties. of Pope Asset Management will each own up to 15% of company. Xstate said it will use $18.5 million Inc. It has also entered amendment to fund its proposed Los Angeles Basin oil fields acquisition, $2.3 million for capex agreements with ALR to the loan as and the rest for drilling and working capital. The completion of the transaction will well as to the US$1,760,978 convertible transition the company from a pure explorer to a producer, and deliver its first transaction debenture due this June. The partial loan in line with its low-risk production acquisition strategy of working onshore California. repayment was satisfied through the issuance of 20,227,854 shares. Following Santos raises A$1.5B through placements & rights offering the issuance of the prepayment shares, Also increasing ’17 capex up to US$750MM, will streamline Pope owned or controlled almost 88 Santos Ltd. placed A$1.04 billion in new ordinary shares with institutional investors million ordinary shares, or about 17.3% at $4.06 a share, representing a 7.9% discount to its Dec. 14 closing price on the ASX. The of Tethys’ shares outstanding. company sold 256 million new ordinary shares, which settled Dec. 20. CEO and managing In feud with Olisol over private director Kevin Gallagher said the equity raise was “significantly oversubscribed with strong placement agreement gone bad. demand from existing shareholders and high-quality new investors.” The proceeds from the institutional placement will be used The Caspian-focused company sold to strengthen the company’s balance sheet and provide it with 43,951,698 shares each, at $0.01593 financial flexibility to take advantage of growth opportunities aligned to itscore a share, to Winston Sanjeev Kumar business and new strategic plan. Soosaipillai and Medgat Kumar and In step with the placement, Santos Institutional equity placement granted each of them three-year brought Santos’ gearing to 31%. issued a rights offering to existing warrants to buy 96.15 million ordinary ordinary shareholders in Australia and New Zealand at A$4.06 a share. In a letter shares at $0.031 a share, giving each to shareholders of record as of Dec. 14, the company said that the offering period investor 19.9% of the company’s shares extended from Dec. 22, 2016-Jan. 31, outstanding. Soosaipillai and Kumar Rights offering for A$500MM worth 2017, and that trading would begin Feb. were appointed to the board of directors of ordinary shares will expire Jan. 31. 7. The rights offering allows eligible and entered into voting agreements with shareholders to subscribe for up to A$15,000 worth of new ordinary shares without Pope under which they would vote or incurring brokerage or other transaction costs. The company is looking to raise a total use commercially reasonable efforts to A$500 million from this offering. cause the voting of shares held by them to exercise the warrants. New strategy to enhance shareholder value— Soosaipillai co-owns State Oil Gallagher told investors at the company’s open day that it would implement a Group, an independent trading, storage, disciplined, three-phase strategy to reduce net debt by US$1.5 billion to less than $3.0 distribution and retail company dealing in billion by the end of 2019, increase cash flow from operations and monetize non-core petroleum products and biofuels. Kumar assets all in the name of creating more shareholder value. is the owner and director of Petro Impex Santos will spend about US$700-750 million this year on capex after cutting those Trade LLP, a Kazakhstan-based oil and costs by 53% last year to $640 million. It expects to produce 55-60 MMboe this year products trader. and generate sales volumes of 73-80 MMboe compared with production of 60-62 MMboe and volumes of 81-83 MMboe in 2016. The company said it would simplify to focus on five core, long-life natural gas assets: Cooper Basin, GLNG, PNG, Northern Australia and Western Australia. The remaining assets will be packaged and run separately as a standalone business. It plans to identify additional gas supply. Gallagher said the company reduced the free cash The industry’s flow breakeven oil price to US$39/bbl by YE16 down from $47 at the start. He said, only global “Our turnaround strategy also brings significant oil price leverage, with operating cash multiple listing service flow forecast to increase by US$300 million in 2017 for a US$10 per barrel oil price move above US$50 per barrel.” www.plsx.com/listings Find more on the energy finance arena at www.plsx.com To learn more about PLS, call +1 713-650-1212 Volume 09, No. 01 15 EnergyFinance Russia & FSU The Americas ■■ The increase in oil prices by $10 a YPF & others putting $7.3B into Vaca Muerta this year barrel means RUB 1.75 trillion more for creates positive investment conditions the Russian budget, and RUB 750 billion Argentina now stands ready for some serious investments in its prolific Vaca for domestic oil companies, Russian Muerta shale formation after negotiating a deal with labor unions and energy President Vladimir Putin told the press in companies to tackle challenges related to high production costs and the lack of “labor late December. He also said that gradual flexibility,” the country’s government said Jan. 10. State-owned YPF plans to invest reduction of oil production, in accordance $2.3 billion in the Vaca with the agreement with OPEC, will not Muerta this year, Argentine Subsidized price of $7.50/MMBtu for gas from new wells. affect the Russian economy. But, he President Mauricio Macri told the warned that by 2H17, there would be no country on television. In addition, Chevron, Total, Royal Dutch Shell and BP unit surplus of oil on the market and the prices Pan American Energy will invest $5.0 billion and double that in coming years. YPF’s will stabilize. Putin said Russia’s economy investment is 20-30% more than it would have been without a deal in place, chairman had adapted to current energy prices. Miguel Gutierrez said. ■■ Russia plans to reduce oil supplies Under terms of the deal, Argentina will offer a subsidized price of $7.50/MMbtu to neighboring Belarus in Q1, people of natural gas produced at new wells through 2020. The high price, double NYMEX’s familiar with the matter told news agency current front month contract, would be Kommersant. It will cut volume to 4.0 Just 2 of 19 awarded Vaca Muerta “indispensable for attracting long-term concessions have production. million tons (33.8 MMbbl) per quarter investment,” the government said. It from 4.5 million tons (38 MMbbl). also let a 15-year-old export tax on oil Belarussian officials expressed discontent and oil products expire without renewal. Neuquen province, where most of the 308 with the decision. Kommersant suggests Tcf Vaca Muerta is located, will stabilize taxes and labor unions will be more flexible. that Moscow may further reduce supply Argentina has a serious energy shortage, and the government says long-term in order to encourage Belarus to redeem investment of $200 billion in the Vaca Muerta is needed to change the situation. more than $400 million in debt for gas. ■■ Azerbaijan’s state-owned ’s $5B in sov debt bought by state-run bank SOCAR Petroleum placed 179,617 Venezuela issued $5.0 billion in new sovereign bonds to its own state-run Banco shares privately at $166 each to gross de Venezuela in order to generate cash to import staples such as food and medicine $29,816,422 on Jan. 11. The as shortages become more critical. The 6.5% bonds due 2036 were the country’s Financial Market Supervisory first sovereign debt issue in five years. Chinese investment bank Haiton Securities Authority had registered the issue underwrote the issue, two bonds trader who saw the preliminary details told the of the shares. The entity, a sub of SOCAR, Financial Times. markets oil products through the network French firm Global Analysts suggest various uses for of SOCAR’s retail stations. It did not proceeds, but food & medicine a certainty. Emerging Markets Group, disclose the buyer nor use of proceeds nor which advised on structuring and executing the deal, said the bond proceeds will boost how many shares it had outstanding. Venezuela’s economy and ease shortages. Christopher Brown of GEM’s New York office told FT he believed the funds would be used as a foreign exchange mechanism “for companies in the productive sector to access US dollars,” thus reactivating the sector and bring imports back into Venezuela. Other analysts surmise the funds could be used to pay the country’s $9.0 billion in bond payments that come due this year or to guarantee loan payments to China. Econalatica analyst Asdrúbal Oliveros said that proceeds from the private placement of the bond were for paying creditors in the oil, Worldwide pharmaceutical and food industries. PDVSA & govt. have over $120B Venezuela has more than $120 billion outstanding, some to China. energy news of its debt in the hands of bondholders, & analysis commercial creditors and China, FT reported. Last year, holders of $2.8 billion in PDVSA bonds agreed to swap them. Caracas Capital’s Russ Dallen said the Venezuelan government has “reached the bottom of the barrel” as the country and Global oil and gas intelligence PDVSA paid $9.5 billion in bond payments last year and will have to pay out a similar delivered straight to you. amount in 2017. On this recent issue, though, he said, “There’s no way anyone in a market would buy this, I thought it was a New Year’s joke, or fake news.” www.plsx.com/reports/international Other analysts say Venezuela’s oil reserves—the world’s largest—would ultimately provide solvency for the country, so investing in its debt is a long-term bet.

For general inquiries, email [email protected] Access PLS’ InternationalCapital archive for previous energy finance news InternationalCapital 16 January 20, 2017 The Americas Petroperu working to secure Petrobras kicks off 2017 with $4B notes sale Continued From Pg 1 $3 billion in loans Petrobras’ last visit to the global debt markets was in May 2016 when it issued Petroperu is in line to close $3.0 $6.75 billion of 8.375% senior unsecured notes due 2021 and $3.0 billion of 8.75% billion in financing, ’s finance senior unsecured notes due 2026. The company has five senior unsecured debt issues minister Alfredo Thorne said. He told maturing this year that approach $1.3 billion in aggregate amount outstanding. media that the state-run oil company will get the money from a group led by Concurrent $4.0 billion tender offer launches— Spanish insurance company Cesce. The The company intends to use a part of the proceeds to repurchase up to $4.0 billion funds would, among other things, help aggregate principal amount of five series of fixed-rate global notes and two issues of complete the remaining upgrades at floating rate global notes, all maturing by 2020, per its concurrent tender offer which the company’s Talara refinery and to started out with a $2.0 billion Global notes not for sale in Brazil via repair a four-decades old pipeline still cap but was subsequently public offerings. shut down after a dozen oil spills in the doubled. While the company Amazon last year. will not reduce its total debt, which currently stands at more than $122.7 billion, it will create some breathing room for itself with respect to some of its nearer-maturing debt. PetroPeru about halfway done with Petrobras’ global finance arm said it would offer cash for its 3.0% global notes $3.5B upgrade of Talara refinery. due 2019, 7.875% global notes due 2019, 3.25% global notes due 2019, 5.75% global “We’re going to talk with banks, with notes due 2020, 4.875% global notes due 2020 and floating rate global notes due the Spaniards, we’re going to talk with 2019 and 2020. Offering to repurchase up to $4.0B of the minister who’s giving us this Cesce near-maturing notes by Feb. 6. In the aggregate, Petrobras has more loan and we’re going to try to close this than $8.5 billion outstanding in the notes as soon as possible to obtain $3.0 billion it seeks to repurchase. Holders who tender before the early tender deadline of Jan. in financing,” Thorne said on Radio RPP. 23 will receive a $30 premium per each $1,000 face amount of notes they tender in Petroperu is going the financing addition to the payout, which ranges from $1,006.25 for the 3.0% notes to $1,048.75 route with Cesce, the World Bank and for the 5.75% notes. The 3.25% notes are denominated in euros and would receive a a lending syndicate instead of selling payout of €1,051.25 for each €1,000, plus a €30 early tender premium. The ordinary bonds as originally planned. A goal of tender deadline is Feb. 6. Peru’s President Pedro Pablo Kuczynski Missed asset sales goal— is to restructure the company to make it The company said it closed out 2016 with $13.6 billion in total asset sales, off more efficient. from the $15.1 billion target it set for itself for 2015-2016. The shortfall was attributed to a court order that blocked the sale of some Brazilian oil fields. In the last week of the year, the company finished the sale of $752 million in assets including a Japanese refinery for $165 million to Taiyo Oil. It also said it was selling its stake in Brazilian ethanol and sugar company Guarani to French company Tereos Internacional for $202 million and petrochem assets to Mexican firm Alpek for $385 million. Also right at the end of 2016, $13.6B in divestments in 2015-2016 A simpler way falls short of $15.1B goal. Petrobras announced a strategic alliance to track global with Total that would include the sale of oil concessions and other assets from which it would receive proceeds of $1.6 billion in the next two months. O&G activity Though it missed its 2015-2016 target, Petrobras raised its 2017-2018 asset sales target to $21 billion from $19.5 billion. Petrobras remains the world’s most indebted A unique tool for monitoring global oil company. Upside Investor analyst Pedro Galdi told The Wall Street Journal activity by country, project, etc. that the big question was whether Petrobras will find the buyers. “The scenario will remain challenging because of the uncertainty surrounding the global economy and oil PetroWire combines a robust process, prices,” he told WSJ. experienced analysts, leading-edge Looking to sell $21 billion in assets in Since Pedro Parente took over as technology and effective tools for 2017-2018. Petrobras CEO last June, the company extracting and retrieving oil and gas has been somewhat successful in restoring confidence among investors after scandals business information. that rocked the Brazilian NOC for the past couple of years. XP Investimentos equity analyst Marco Saravelle explained that Petrobras’ shares are now “much more linked wire.plsx.com with oil prices than to domestic political factors.”

Find more on the energy finance arena at www.plsx.com To learn more about PLS, call +1 713-650-1212 Volume 09, No. 01 17 EnergyFinance Corporate Updates Database wire.plsx.com

Date Company Abstract Advent International has agreed to acquire a controlling interest in offshore vessel management 13-Jan V. Group and support services provider V. Group from OMERS Private Equity. YPF entered into an agreement with ENAP Sipetrol Argentina on Jan. 12 to acquire 50% of the 13-Jan Petrofaro capital stock of Petrofaro for $5.36MM. Hoegh LNG has set up a new operations division to handle the technical and commercial manage- 13-Jan Hoegh LNG ment of all the company’s assets that are in operation. Odebrecht acknowledged in a US plea deal that it distributed $29MM in bribes to win public work 12-Jan Odebrecht contracts in Peru from about 2005 to 2014, part of hundreds of millions in corrupt payments across the region. Samson Resources and its creditors have reached an agreement that will allow for a restructuring plan to be implemented. First lien lenders will receive a full recovery in cash and new secured debt, 12-Jan Samson Resources and second-lien lenders will receive 100% equity in the restructured company. Holders of general unsecured claims will receive at least $168.5MM. North Energy Capital will through a series of transactions become the new major shareholder of 12-Jan Reach Subsea Reach Subsea controlling a strategic stake of approx. 30%. Premier Oil still has not released details of a $2.8B refinancing deal it has been negotiating for nine 12-Jan Premier Oil months. African Petroleum announces that a private placement has been successful, raising $3.1MM gross 12-Jan African Petroleum proceeds through the allocation of 10.7MM offer shares. Kosmos Energy announces that funds affiliated withWarburg Pincus and The Blackstone Group 11-Jan Kosmos Energy have agreed to sell an aggregate 30MM of Kosmos’ common shares in a registered underwritten public offering. Petrobras Pampa Energia chairman wants to use assets he picked up in Petrobras' fire sale last year to become 11-Jan Argentina one of Argentina’s top natural gas producers. SDX Energy entered into non-binding heads of terms with a 30-day exclusivity period to buy some 11-Jan Circle Oil Circle Oil's assets in Egypt (Block 8) and Morocco (Sebou, Oualad N'Zala, Lala Mimouma). Trinity E&P announces that the restructuring is now completed. The gross proceeds from the fund- raising will be applied in part towards the payments to creditors. The balance of the gross proceeds 11-Jan Trinity E&P alongside current cash balances and organic cash flow will be deployed towards certain one-off restructuring and infrastructure costs and the re-initiation of drilling activities. The joint liquidators have completed reviewing 4 offers received for the shares held by XEL in Xcite 11-Jan Xcite Energy Energy. They are now in negotiations with a party to conclude a transaction. Additional offers will be considered if an interested party has the financing available to conclude a transaction in a short time. Greece now wants to keep a majority stake of 51% in DESFA and divest 14% to investors. The plan to 11-Jan Desfa sell 66% to Socar collapsed in late 2016. 10-Jan i3 Energy i3 Energy, which has acquired the Liberator field off the UK, plans an IPO on the London AIM. Dundee Energy announces initiation of strategic review process. Strategic alternatives may include a 10-Jan Dundee Energy debt restructuring, outright sale of DELP, or business combination or other transaction involving DELP and third party. Heurtey 10-Jan Petrochem Axens announces that its takeover bid on Heurtey has been successful. Eco Atlantic intends to seek admission for trading its shares on AIM, a market of the London Stock 10-Jan Eco Atlantic Exchange. Antrim intends to delist its shares from the TSX Venture Exchange, which delisting is anticipated to 9-Jan Atrim Energy occur at the close of business on Jan. 20. Texada Capital Management, a corporation controlled by William Wheeler, an independent director 9-Jan Bengal Energy of Bengal, reports that he acquired 13,201,418 common shares of Bengal. Global Petroleum has appointed Cantor Fitzgerald Europe to act as Nominated Adviser and Joint 9-Jan Global Petroleum Broker to the Company with immediate effect.

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For general inquiries, email [email protected] Access PLS’ InternationalCapital archive for previous energy finance news InternationalCapital 18 January 20, 2017 The Americas Madalena sells $3 million Warburg Pincus & Blackstone sell part of Kosmos stakes Point Loma debenture Kosmos Energy Ltd. priced 30 million common shares at $6.65 each for selling Argentina-focused Madalena shareholders Warburg Pincus and Blackstone. The offering closed Jan. 18. Kosmos Energy sold its C$3.0 million convertible did not receive any of the proceeds from the sale, and its share count stays the same. debenture of Point Loma Resources Warburg Pincus’ stake in Kosmos decreased to 26.25%, or 101,508,651 shares post- Ltd. for $700,000 (US$522,000). completion and Blackstone saw its The company had received stake reduced to 21.47%, or Kosmos Energy has new governance the instrument as part of the responsibilities stemming from offering. 83,052,512 shares. consideration for the Canadian Because the two selling private equity groups no longer control the assets it sold last May, which also majority of the company’s voting power and common shares outstanding, Kosmos is included 6,244,814 Point Loma shares, no longer a “controlled company” as defined by the NYSE. Therefore, it must put at 10% of which are currently free trading. least one independent director on each of The balance of the shares is escrowed its nominating and corporate governance, and began to be released at six-month and compensation committees upon Kosmos’ Liquidity Picture intervals starting Dec. 30. completion of the offering; a majority of Kosmos Liquidity1 $1,500 Debenture sold for $0.23 on the Selling stakes in exploration blocks in $1,250 dollar to unnamed party. $1,000 Mauritania & Senegal for $160MM. Madalena closed the sale of its $750 $ in millions independent directors on those committees $500 Canadian assets in July to become an within 90 days after completion; and it $250 Argentina pure-play. The company is must populate those committees with only $- active in the Vaca Muerta and Lower Agria RBLRCF Cash Liquidity fully independent directors, and have a Kosmos Debt Maturies1 shales as well as the Loma Montosa tight majority independent board, within one $500 oil and Sierras Blancas conventional plays. year after the closing of the offering. $400 Last fall, the company launched a Bermuda-based Kosmos explores for, $300 review of its strategic alternatives, with and produces, oil and gas in Africa, Europe, $ in millions $200 No near-term options to include asset sales, a merger, maturies and South America. Among its assets $100 sale or recapitalization transaction or are production and other development $0 a JV. The debenture sale will help the 2016 2017 2018 2019 2020 company tackle current liquidity problems projects offshore Ghana, and exploration (1) As of June 30, 2016 Note: Excludes maturies beyond 2020 as will the anticipated completion of the licenses offshore Portugal, Sao Tome Source: Kosmos Energy Oct 16 sale of a 55% stake in Coiron Amago and Principe, Suriname, Morocco, and Presentation via PLS docFinder Western Sahara. Sur Este to Pan American Energy. In connection with that sale, Madalena PDVSA hit with lawsuits over deal borrowed $40 million from Pan American PDVSA is being sued by Canadian mining company Crystallex International to fund its share of capex on the property. Corp. and ConocoPhillips based on accusations that Venezuela’s state-run company engaged in efforts to mortgage the assets of Citgo Holdings, its US subsidiary, and repatriate the proceeds to Venezuela. In October, both companies filed lawsuits in Delaware after PDVSA pledged its 50.1% stake in Citgo as collateral for investors that agreed to exchange $2.8 billion in 2017 bonds for $3.4 billion in bonds due in 2020. Conoco Complete said the bond swap was another attempt to prevent it from collecting the compensation it was awarded over PDVSA’s 2007 transaction Swap gave PDVSA ‘breathing space’ expropriation of Conoco assets. to address oil output slump. services The plaintiffs have requested that for sellers the court cancel the lien on Citgo’s stock and deem the decree a fraudulent transfer. +1 713-650-1212 The swap decreased the Venezuela government’s debt between now and 2018 to $13 billion from about $15 billion. Conoco still waiting for compensation Helping clients market non-core In November, PDVSA mortgaged from 2007 PDVSA asset swipe. assets since 1987. its remaining 49.1% stake in Citgo to Rosneft Trading GA, according to court filings. And in a Dec. 23 statement cited www.plsx.com/advisory by The Wall Street Journal, the company confirmed it allocated the remainder of its Citgo stake “to raise financing.” Find more on the energy finance arena at www.plsx.com To learn more about PLS, call +1 713-650-1212 Volume 09, No. 01 19 EnergyFinance The Americas Gran Tierra plans to spend up to $250MM this year PetroRio buys majority of Gran Tierra expects its core Colombian operations to account for $185-235 Brasoil’s common shares million of its 2017 spending, or 93% of the total anticipated $200-250 million budget. PetroRio agreed to buy a 29.21% With the recent purchases of PetroLatina and PetroAmerica for $600 million firmly stake in Brasoil do Brasil Exploração establishing the company’s Colombian footprint, Gran Tierra plans to drill development and exploration oil wells. Petrolífera from Fundo Brascan 2017 guidance includes 1,200-1,500 At the midpoint of the de Petróleo, Gás e Energia. This boe/d of Brazil production. agreement plus the acquisition of guidance, 57% of the capital Goldman Sachs’ indirect interest in budget is expected to be spent on development and 43% on exploration this year. The Brasoil would bring PetroRio’s total company plans to allocate 15-20% of its 2017 capex to facilities, a large portion which stake in the company to 52.4%. will be dedicated to expanding Acordionero field to boost oil production capacity to Brasoil owns 10% of the field 15,000 boe/d by YE17. concession contract in Manati, Gran Tierra operates over 90% of its production and 23 out of 33 blocks in Brazil’s eighth-largest gas field. It also . CEO Gary Guidry said the development of the company’s enlarged portfolio of reserves can be paced with oil price owns the concession of the Pirapema Capex assumes up to 6 drilling rigs recovery. At its budgeted 2017 Brent oil field and Block FZA-M0254 at the being active this year. Amazon River’s mouth. price of $56/bbl, Gran Tierra forecasts that it will generate cash from operating activities of $240-260 million, which is Extinguishing global depositary expected to equal or surpass its 2017 planned spending. The company aims to drill 30 shares on TSX-Venture. to 35 exploration wells over the next three years, all funded from operating cash flow. PetroRio will voluntarily delist its Peruvian spinoff considered— global depositary shares from the TSXV Separately, the company announced that it is looking to spin off its assets in Peru, in connection with the termination of the which are non-core, into a new entity in which it would retain an equity interest. The deposit agreement among the owners and spun-off company would initiate external capital raising efforts on its own to fund holders of the GDSs, Deutsche Bank development of the Peruvian assets. Gran Tierra had advised in the past that the non- Trust Co. Americas, and the company. core assets may be sold, farmed out or spun off January 14, 2015 • Volume 07, No. 01 PetroRio’s shares will continue to but has yet to enter into any binding agreement for InternatIonalDeals Serving the marketplace with news, analysis and business opportunities

BP in talks with Rosneft to buy 20% in Siberian field International M&A falls 21% trade on Bovespa. such transactions. Russian companies blocked by sanctions on other oil & gas deals to $60 billion in 2014 Rosneft is reportedly in talks to sell BP a direct 20% WI in subsidiary Taas- Global upstream deal activity saw an Yuriakh Neftegazodobycha, the license holder of its Srednebotuobinsk oil and gas impressive 30% rise in terms of total deal field in Eastern Siberia. The deal would result in an effective 35.8% stake in the field for value to US$185.0 billion during 2014. BP, which is the Russian company’s largest private shareholder with 19.75% However, this upswing was due entirely Its Peruvian assets consist of five exploration equity. According to unnamed sources cited by Russian daily Kommersant, to skyrocketing acquisition InternationalDealsthe negotiations could result in activity Aug. in the US (up 79% 30 to Current ~20,000 bopd projected up a US$700-800 million deal with closing $98.3 billion) and Canada (up 400% to ~100,000 bopd by 2017. expected in early 2015. 132% to $26.6 billion). Looking just at Rosneft acquired an initial 35.3% WI in Taas-Yuriakh for $444 million during the the international picture, activity was development phase in March 2012 and increased its stake to 100% WI in October 2013, down 21% in terms of deal value to $60.0 blocks. In 3Q16 the company spent $1.4 million shortly after reaching first oil. At that time the company projected 2014 production billion and 30% in terms of deal count of 1.0 million tonnes (~20,000 bopd), increasing to 5.0 mtpa (~100,000 bopd) by (including transactions without disclosed Gran2017. It also assignedTierra the field C1+C2 reserves closes of 134 million tonnes of liquids$525MM (~1.0 values) to 399. Bbbl) plus 5.47 Tcf. Continues On Pg 8 Out of the top 30 international deals, ■■ Brazil’s energy minister, Fernando in capex for work on those blocks, with $500,000 Chinese group offers $100 million for Kazakh oil project not one buyer was a US producer. Continuing 2014’s trend of non-traditional Chinese oil and gas buyers entering the Major increases in deal value were acquisitionE&P space into the new year, a consortium ledof by publicly PetroLatina. listed Xinjiang Zhundong seen in Asia (69% to $8.0 billion), the Petroleum Technology Co. plans to acquire the Galaz contract area in central Kazakhstan South Pacific (442% to $11.3 billion), for US$100 million in cash and debt. The oil development is operated by South Korea’s and the North Sea/Europe (118% to Coelho Filho, said Jan. 12 that the LG International (40% WI) partnered with London-listed Roxi Petroleum (34.22%) $12.7 billion). However, these increases alone going to Block 95. and Baverstock (23.78%), a company controlled by Roxi board member and top were overwhelmed by a combined $35.0 shareholder Kuat Oraziman. Consortium led by publicly listed billion decrease in activity in Africa The 44,200-acre block in oilfield service firm Xinjiang Zhundong. (54% to $9.6 billion) and the FSU (72% Kyzylorda province contains to $9.0 billion). Continues On Pg 15 country would likely earn BRL 3.5-4.5 the Northwest Konys project plus exploration upside on the east side of the Karatau fault system. Seventeen wells have been drilled at Galaz since 2008 and Northwest Konys FEATURED DEALS pilot production began in January 2012. Five wells are on extended test producing an aggregate 1,000 bopd and four more are being prepped to begin production testing. THAILAND CONCESSION FOR SALE Under the non-binding heads of terms, the Chinese consortium will acquire JV firm 1-Onshore Concession. Galaz & Co. for $50.4 million cash plus $49.6 million in debt. Continues On Pg 11 PHETCHABUN BASIN billion ($1.10-1.41 billion) in revenue 2-Onshore Exploration Assets. PP 8-Production Licenses. Seplat’s Afren takeover bid threatened by Kurdish writedown Contains 12 Individual Oil Fields. Just days after Nigerian oil firm Seplat Petroleum Development confirmed 20% WORKING INTEREST FOR SALE 4,000 making a preliminary approach to acquire Afren, the target company’s takeover Gross Production: ~4,000 BOPD BOPD prospects took a hit when it released a drastically reduced resource estimate for its 2P Net Reserves: 30 MMBOE this year from three licensing rounds Gran Tierra’s Strategy Barda Rash oil development (60% WI) in the Kurdistan region of Iraq. CONTACT AGENT FOR MORE INFO PP 6089 Based on reprocessed 3D seismic and its drilling campaign, the report eliminates 190 MMbbl of previously estimated proved plus probable oil SURINAME OFFSHORE BID ROUND reserves and reduces the 2C resource 3-Blocks. ~6,420,000-Acres.(26,000 km2) estimate by 80% to 250 MMbbl New Barda Rash estimate eliminates SURINAME-GUYANA BASIN 2P reserves, cuts 2C by 80% to 250 MMbbl. for oil and gas exploration. Next up will from 1,243 MMbbl. Huge Prospective Blocks B Water Depths:~50-7,380 Ft. The previous estimate reported in 2012 had been the basis from the London- --- (15-2,250m) based company’s approved development plan. It is now considering strategic WORK PROGRAM BIDDING ROUND BID options for the project in light of the update. Afren’s stock fell 30% on the London Proven Petroleum System ROUND CORPORATE STRATEGY Stock Exchange to close at 27.31 pence on January 12, the day the update was Production: 16,000 BOPD released—eliminating the bump experienced when rumors of the takeover bid broke Bid Round is Closing January 30, 2015 be a licensing round for four pre-salt CONTACT PETROLEUM MANAGER in mid-December. The news comes one week ahead of the January 19 deadline for BR 5103PP Grow Net Asset Value per share by 3-5x within 5 years Seplat to make a formal offer for Afren. Continues On Pg 6 areas during H1 that could be the most All Standard Disclaimers & Seller Rights Apply. attractive one this year with about BRL 3.0 billion ($841 million) generated. Discovered Resources Undiscovered Resources New Inventory ■■ Trinidad & Tobago’s Trinity Exploration rejoined the AIM trading BIA venue after raising $14.5 million from institutional investors. The company COLO M re-applied to the exchange with 187.6 million new 1 ordinary shares, which form

Maximize Value of Brazil and Peru the placement and subscription of its Longer Term Growth Strategy restructuring and fundraising. The ZIL/PERU company was on the road to insolvency EXICO M after restructuring talks for $13 million BR A in debt with lender Citibank collapsed last July. The company suspended Source: Gran Tierra Nov. 7 Presentation via PLS docFinder www.plsx.com/finder trading July 16. For general inquiries, email [email protected] Access PLS’ InternationalCapital archive for previous energy finance news InternationalCapital 20 January 20, 2017

CENTRAL AFRICA EAST AFRICA MIDDLE EAST EQUATORIAL GUINEA FARMOUT MADAGASCAR FARMOUT TURKEY PROPERTY ~322,473-Acres. (1,305 Km2) >7,000km2 (1,729,737-Ac). 3,500-Metres. >9,000-Acres. 66-Producing Wells. OUTER BASIN MORONDAVA BASIN ONSHORE TURKEY Mid Miocene Objectives. DV One Prospect Is Confirmed As Largest -- DV One Producing Field. PP 2D & 3D Seismic Data Available -- UnDrilled Location In Basin. 53 D&M Approved PUD Drilling Locations. SEEKING JV PARTNERS SEEKING Prospective For Isalo Sandstone Play. 3D Seismic Data Available. 2,750 Reserves: >200 MMBO & 700 BCF JV >2,000 km Existing 2D Seismic, HEAVY 20% WORKING INTEREST AVAILABLE BOPD --From Largest Miocene Objective. 100% OPERATED WI AVAILABLE OIL Producing: 2,750 BOPD CA Required to View Data Room. SEEKING JV PARTNERS CONTACT AGENT FOR MORE INFO CALL AGENT FOR ADDITIONAL INFO Major In-Place Heavy Oil Reserves PP 1043FO DV 5015FO Mid Case Reserves: >420 MMBO DEALS (OR > 3.4 TCF If Gas) FOR SALE NORTH AFRICA OFFSHORE GUINEA FARMOUT CONTACT AGENT FOR MORE INFO 1-Block. 244,881-Acres. (991 km2) DV 4691FO MOROCCO OPPORTUNITY OFFSHORE - STACKED PAYS 1-Licence. RIO MUNI BASIN DV FORMER SOVIET UNION OFFSHORE Santonian-Turonian Sands. 16,404 Ft. One Plugged & Abandoned Well. EX 3D Seismic Data Available. STACKED CENTRAL ASIA OPPORTUNITY Total Depth: 2,825m SEEKING JV PARTNER PAYS Multiple Licences Covering 3,000km2. SEEKING JV PARTNER PERMITS Mean Prospective Resources: 542 MMBO ONSHORE CENTRAL ASIA Prospective Resources: 400 MMBOE DHC: $75,000,000 - $85,000,000 DRILL READY PROSPECTS PP CONTACT LICENCE OWNER FOR INFO DV 5085FO Mesozoic & Cenozoic Stratigraphy. EX 1977 Existing 2D Seismic Data Available. 250 GABON OPPORTUNITY SEEKING JV PARTNER BOED TUNISIA PROJECT 1-Licence. 1,120km2. Existing Production: 250 BOED 1-Permit. 556,481-Acres. (2,252km2) SOUTH GABON BASIN Comb. Prospective Rsrcs: 550 MMBOE GHADAMES BASIN Multiple Well-Imaged Prospects. DV CONTACT AGENT FOR MORE INFO One Discovery. DV Stacked Lower Cretaceous Targets. PP 1191FO 8 Identified Leads: Silurian Sandstone 3D Seismic Data Available. 2D & 3D Seismic Data Available. Production Sharing Contract. OFFSHORE MIDDLE EAST Also Re-Entry Project for 2-Wells. 40% EQUITY AVAILABLE FOR FARMOUT SEEKING JV PARTNER FOR --- RE-ENTRY Comb. Resource Potential: 1,000 MMBO NORTHERN IRAQ FARMOUT ---EXPLORATION PROGRAM. Confidentiality Agreement Required. ~5,900,000-Acres Recoverable Reserves: 64 MMBO BUYER! NO CONTACT AGENT FOR MORE INFO CALL ONSHORE OPPORTUNITY Unrisked STOIIP: 425 MMBO COMMISSIONS DV 1728FO PLS FOR Proven Production. DV CONTACT FOR ADDITIONAL INFO INFO 2D Seismic Data Available. DV 1022FO WEST AFRICA OPPORTUNITY OPERATED OR NONOP WI AVAILABLE 1-Shallow Water Permit. Reserves: ~3.5 BBOE ONSHORE NORTHERN EUROPE OFFSHORE GABON Total AFE: $7,000,000 PRE-SALT PROVINCE DV CALL AGENT FOR ADDITIONAL INFO UNITED KINGDOM COMPANY SALE Water Depth: 50-500m DV 2020FO Total Acreage 250 sq km. 3D Seismic Data Available. OFFSHORE EAST MIDLANDS BASIN SEEKING JV PARTNER FOR FARMOUT ISRAEL OPPORTUNITY Conventional & Unconventional Prospects. CO Mean Prospective Resource: 1,344 MMBO 1-Block. 3D Shows Crest Seismic Amplitude. DV 5050FO LEVANT BASIN Suggests Improved Reservoir Potential. PALMYRA RIFT TREND EX 100% OPERATED WI AVAILABLE EAST AFRICA Large Undrilled Leads. Appraisal Well Drilled Q! 2016. ONSHORE UP 51% CORPORATE INVESTMENT Remaining 2P Reserves: ~700 MBO ETHIOPIA OPPORTUNITY SEEKING JV PARTNER FARMOUT Possible 3P Reserves: ~2.1 MMBO 1-Block. >4,900,000-Acres. >20,200km2 P50 Potential Resources: >60 MMBO CORPORATE SALE OF ALL ASSETS NORTH EAST ETHIOPIA CONTACT AGENT FOR MORE INFO CALL AGENT FOR ADDITIONAL INFO One Identifed Prospect. DV EX 1762FO CO 2017PP Petroleum Production Sharing Agreement 2D Seismic Data Available. SEEKING OFFSHORE OMAN FARMOUT SEEKING JV PARTER JV 1-Block. 16,900 sq km. Prospective Resources: 800 MMBOE ARABIAN SEA DV CONTACT AGENT FOR MORE INFO Multiple Identified Prospects. The industry’s DV 8153FO Water Depth: 10-1,500m OFFSHORE only global multiple SEEKING JV PARTNER listing service Potential Mean Resources: >150MMBO More listings at plsx.com/listings CONTACT AGENT FOR MORE INFO DV 1786FO www.plsx.com/listings

Find more listings at www.plsx.com/listings No commission! List today, call +1 713-650-1212 Volume 09, No. 01 21 EnergyFinance People Developments & Trends ■■ Blue Sky Energy appointed World spends 18% less YOY on clean energy at $287.5B corporate secretary Neil Said as VP and Global investments in clean energy decreased 18% in 2016 to $287.5 billion as to the board following its acquisition Chinese and Japanese investments in renewables dropped 26% to $87.86 billion and of Sonoro Energy’s Iraqi exploration 46% to $22.8 billion, respectively. Bloomberg Energy New Finance said that years of and development assets. The company record-breaking investment driven by generous feed-in tariffs led to overcapacity that changed its name in July from China and Japan have been trying to digest, thus not as many new large-scale projects Brookwater Ventures and began trading are needed right now. on the TSX Venture exchange as BSI. China, in fact, has seen less power demand and curtailed wind and solar projects. ■■ Cairn Energy plc announced the In order to benefit fully from its capacity potential, the government has put its money appointment of Nicoletta Giadrossi as an in power grids and market reform, Bloomberg said. In Japan, the trend is rooftop solar independent non-executive director starting systems that consumers themselves can Jan. 10. She will join the M&A in clean energy segment totaled install, rather than utility projects. a record $117.5 billion, up 20% YOY. remuneration committee. While overall investment was down, Giadrossi is currently an spending on offshore wind projects was up 40% in 2016 to $29.9 billion, on better independent non-executive board member at construction methods and bigger turbines. In Europe, the UK saw the most clean energy Fincantieri, Bureau Veritas and Faiveley investment at $25.9 billion, up 2% YOY, but the highest percentage YOY growth was Transport, as well as on the board of senior in Denmark where 102% more spending equaled $2.7 billion, largely on new wind advisors for Bain Capital Partners. projects erected by Dong, the country’s national energy company. ■■ South America-focused CGX Investment fell among developing nations—South Africa fell 76% to $914 million, Energy’s board of directors lost four of was off 80% to $821 million; Mexican investment fell 59% to $1.0 billion, Uruguay its seven members: co-chairman Serafino spent 74% less at $429 million and Brazil’s $6.8 billion in spending had fallen 5%. Iacono, Ronald Pantin, Marino Ostos and Michael Galego. All four were nominated to the board by Pacific Mexico speculation becoming increasingly riskier Rubiales when it acquired a Riverstone has over $1B in Mexican energy investments already majority stake in CGX. Pacific Mexico’s now deregulated energy sector continues to attract investment despite the Rubiales was subsequently renamed shaky peso and fears that new US President Donald Trump will pull the US out of the Pacific E&P and recently emerged from North America Free Trade Agreement. Since his election, the peso has dropped 15% in bankruptcy. CGX has named two new value against the US dollar and 27% since Mexico’s first oil field auctions in board members, Pacific technical VP July 2015. The peso’s drop makes local costs cheaper for companies funded Erik Lyngberg and Blackhill Partners with dollars, and Riverstone Holdings, which has already committed over co-founder Dan Gillett. Lyndberg will $1.0 billion to Mexican energy projects, has raised some of its funds in pesos, Peso down 27% against US dollar serve as co-chairman along with Trent since July 2015, 15% since Trump won. University senior professor Suresh Narine. which make costs higher. ■■ Dragon Oil appointed Saif Humaid Riverstone is funding E&P Sierra Oil & Gas and midstream company Avant Al Falasi as CEO, succedding Abdul Energy. “We’re determined to be players here,” Riverstone managing director Alfredo Jaleel Al Khalifa, who had been the Marti told The Wall Street Journal. “We decided that this was a very real, genuine company’s CEO since 2008. Al Falasi opening involving high-quality assets.” has 37 years of experience. Then there’s the political risk. Along with energy deregulation came a lot of anger ■■ Engie hired Franck Bruel as an EVP and protest. Recent cuts to gasoline subsidies have raised prices for consumers and to run its business-to-business operations they’re protesting in the streets. Privatization could stall if current Mexican President Enrique Peña Nieto doesn’t win the in France. Bruel joins from electrical Riverstone, EnCap & BlackRock election next year. material distribution firmSonepar , where invested combined $525MM in Sierra. he has served as CEO since 2013. He will “Regarding any potential political succeed Jerome Tolot, who is retiring. risk, our partners are local Mexican pension funds and many of our companies active ■■ Grupa Lotos Spólka Akcyjna in Mexico, such as Sierra and Avant, are established in Mexico, staffed by Mexicans named acting CEO Marcin Jastrzebski and with a Mexican identity, rather than the stereotypical foreign oil interests,” a as the permanent CEO, while Jaroslaw Riverstone spokesman said. The PE group decided that first-mover advantage in Kawula was given the post of VP Mexico was worth the risk, a Wood Mackenzie analyst said. production. Jastrzebski had previously Peña Nieto’s political opponents “can’t stop the process, but it could throw sand in occupied the post of Lotos' VP operations. the gears and really slow things down,” said Steven Otillar, a partner with Akin Gump The new CEO has been a member of the Strauss Hauer & Feld LLP who has worked on deals in Mexico’s energy industry for Lotos managing board since last May. two decades. It could “really be bad for business,” he told WSJ. For general inquiries, email [email protected] Access PLS’ InternationalCapital archive for previous energy finance news InternationalCapital 22 January 20, 2017 People NORTHERN EUROPE NORTHERN EUROPE ■■ Gulf Keystone Petroleum Ltd. UNITED KINGDOM FARMOUT UNITED KINGDOM PROSPECT named Stuart Catterall as COO. He has 1-Block. 1-Drilled Well. 1-Block. over 30 years experience in oil and gas EAST IRISH SEA BASIN CENTRAL NORTH SEA in senior leadership and technical roles Triassic Sandstones Discovery. DV One Upper Jurassic Prospect. DV Dinantian Limestones. Reprocessed 3D Seismic Data Available. with Amerada Hess, BHP Billiton, 3D Seismic Data Available. OFFSHORE 100% EQUITY AVAILABLE FOR SALE OFFSHORE Celtique Energy and as a consultant for Promote Period Extended Until Dec 2017. Unrisked Mean Resources: 68 MMBOE PA Resources, Enquest and Petroceltic. SEEKING JV PARTNER CONTACT AGENT FOR STATUS UPDATE ■■ LGO Energy PLC appointed P50 Reserves: 291 BCF BUYER! NO DV 1474FO DV 1696FO COMMISSIONS Gordon B. Stein to its board of directors, OCEANIA/SOUTH PACIFIC replacing Stephen Thomas Horton, UNITED KINGDOM OPPORTUNITY who retired after six years. Stein will 1-Licence. 2-Blocks. 157 sq km. AUSTRALIA EXPLORATION FARMOUT become the chairman of the company's UK NORTH SEA 1-Permit. 800 sq km. audit committee and a member of the OUTER MORAY FIRTH DV NORTH CARNARVON BASIN remuneration committee. One Identified Prospect. Large Structural Prospect Identified With- DV Exploration Well Required By Nov 2018. -Additional Structural & Stratigraphic Leads. ■■ Singapore-based Mitra Energy 3D Seismic Data Available. NORTH UP TO 50% WORKING INTEREST AVAIL changed its name to Jadestone Energy 40% OPERATED WI FOR SALE SEA Est Mean Prospective: 1.4 TCF following the acquisition of Australia’s Unrisked Prospective Rsrce: 67 MMBOE P10 Upside: 2.0 TCF CARNCARVON Stag oil field and is now trading on the CONTACT AGENT FOR MORE INFO CONTACT AGENT FOR MORE INFO TSX Venture exchange as JSE. DV 1919 DV 8005FO In addition, the company hired UNITED KINGDOM PROSPECTS AUSTRALIA EXPLORATION PROJECT Dan Young as CFO effective Jan. 1-Licence. 4-Blocks. 1-Block. 18, succeeding Will Mathers. Young joins UK CONTINENTAL SHELF PERTH BASIN from Wood Mackenzie, where he was Two Identified Prospects & One Lead. DV Two Identified Prospects. DV SVP and head of Asia-Pacific consulting. Upper Jurassic Appraisal & Exploration. SEEKING JV PARTNER SEEKING JV PARTNER FARMOUT Recoverable Reserves: 34 MMBO PERTH ■■ Nobel Upstream named Larry Up To 50% NonOp Working Interest Avail CONTACT AGENT FOR AN UPDATE Bates as CEO and managing director, Drilling Planned For Q4 2016. DV 6786FO succeeding Jeremy Huck, who resigned. Potential Gross Reserves: 107 MMBOE Huck has led privately held Nobel since Potential Upside Reserves: 200 MMBOE OFFSHORE AUSTRALIA FARMOUT its founding in 2014 by Azeri oil and CONTACT AGENT FOR MORE INFO 1-Permit. 560 sq km. DV 1585FO NORTH CARNARVON BASIN gas tycoon Nasib Hasanov, building an Three Identified Prospects. DV international E&P portfolio in Azerbaijan, UNITED KINGDOM OPPORTUNITY Water Depth: 180-400m. the UK North Sea and the US Permian 2-Licences. 4-Blocks. 729.6 sq km. 3D Seismic Data Covers Permit. FARMOUT Basin. Bates has more than 27 years of SOUTHERN NORTH SEA UP TO 50% WORKING INTEREST AVAIL oil and gas experience, including with Permian Zechstein Carbonate Play. DS Mean Potential: 275 MMBO CALL Multiple Leads Identified. CONTACT AGENT FOR MORE INFO PLS FOR Rosneft, BP and TNK-BP. Awarded In 28th Promote Round. NORTH DV 1383FO INFO ■■ OMV named SVP of investor 3D Seismic Survey Planned. SEA relations Magdalena Moll to SVP of 2D Seismic Data Available. OFFSHORE AUSTRALIA FARMOUT corporate affairs as the company unifies EQUITY & OPERATORSHIP AVAILABLE 1-Permit. 12,400 sq km. communications, IR and SEEKING JV PARTNER NORTH PERTH BASIN sustainability into a single Est. Prospective Resource: >1.0 TCF Multiple Untested Structural Trends. EX CA Required To View Data Room. Recently Acquired Rocket 2D Seismic. PERTH department. Moll joined OMV CONTACT AGENT FOR MORE INFO UP TO 50% WORKING INTEREST AVAIL last April after being SVP of IR at BASF. DS 1970FO CONTACT AGENT FOR MORE INFO ■■ Reliance Industrial Infrastructure EX 8080FO OFFSHORE UK PROSPECT Ltd. named Salil Kumar Mishra as CFO 1-Licence. 3-Blocks. SOUTHERN NORTH SEA Lower Carboniferous Sandstone. DV 3D Seismic Survery Planned. Awarded In 28th Promote Round. The industry’s PLS runs the oil and gas industry’s Vintage 2D Seismic Data Available. NORTH premier multiple listing service. EQUITY & OPERATORSHIP AVAILABLE SEA only global SEEKING JV PARTNERS multiple listing www.plsx.com/listings Est Prospect Resources: >200 BCF service CONTACT AGENT FOR MORE INFO DV 1971FO Find more listings at www.plsx.com/listings No commission! List today, call +1 713-650-1212 Volume 09, No. 01 23 EnergyFinance People OCEANIA/SOUTH PACIFIC WEST AFRICA effective Jan. 12, succeeding Tapas Mitra, who resigned. OFFSHORE AUSTRALIA PROJECT COTE D’IVOIRE OPPORTUNITY ■■ Royal Dutch Shell CFO Simon 1-Permit. 1,225,643-Acres. (4,960km2) 1-Block. 481,114-Acres. (1,947km2) Henry will retire next March after 34 OTWAY BASIN OFFSHORE READY TO DRILL DV One Identified Prospect & Several Leads. DV years with the company. Jessica Uhl, One Identifed Prospect. SEEKING JV PARTNER OFFSHORE who joined the company in 2004 and Five Additional Leads Mapped. Mean Reserves: 150 MMBO currently serves as EVP of finance of its Water Depth. 328 Ft. (100m) CONTACT AGENT FOR MORE INFO integrated gas business, will 2D & 3D Seismic Data Available. OFFSHORE DV 1211FO succeed Henry. In addition, SEEKING JV PARTNER Est. Prospect Resources: 1.4 TCF COTE D’IVOIRE PROSPECT Shell named Linda Szymanski Total Prospective Resources: 6.8 TCF 1-Block. 436,882-Acres. (1,768km2) as company secretary to replace Michiel CONTACT AGENT FOR MORE INFO DEALS FOR ABIDJAN BASIN Brandjes, who will retire at year’s DV 6798FO SALE Multiple Defined Prospects. DV end after 36 years with the company. Lower Cretaceous Albian To Upper-- Szymanski will also continue in her PAPUA NEW GUINEA PROJECT --Cretaceous Maastrichtian Miocence. ABIDJAN 1-Permit. 4,139,509-Acres. (16,752km2) SEEKING JV PARTNER FOR FARMOUT current role of corporate general counsel, CORAL SEA Licence Awarded In 2011. to which she was appointed Aug. 1. One Identified Prospect. DV Recoverable Oil Volumes: 2,000 MMBO ■■ Slavneft-YANOS, known as Water Depth: 656 Ft. (200m) CALL AGENT FOR ADDITIONAL INFO SEEKING JV PARTNER FOR FARMOUT DV 6828FO Yaroslavl for short, terminated the powers BUYER! NO Reserves: 860 MMBO & 58,000 BCF FARMOUT of Aleksandr Nikitin as the company’s COMMISSIONS Data Room Now Open. GHANA FARMOUT general director effective Dec. 26, 2016. CONTACT AGENT FOR MORE INFO 1-Block. 381,036-Acres. (1,542-Km2) The board of directors appointed Nikolay DV 6337FO OFFSHORE Karpov as general director for a three- 3 Prospective Areas DV year term starting the next day. SOUTHEAST ASIA UnderExplored Block In Shallow Water. SHALLOW ■■ Trinity Exploration & Production Newly Acquired High Quality 3D WATER LAOS OPPORTUNITY OPERATED WI FOR FARMOUT elected Jeremy Bridglalsingh, David 1-PSC. >3,000,000-Acres. >11,000km2. CALL AGENT FOR ADDITIONAL INFO Segel and Angus Winther to its board of SAVANNAKHET BASIN DV 1283FO directors. Bridglalsingh, who is Trinity’s One Identifed Prospect. DV CFO, worked in financial services at SEEKING JV PARTNER ONSHORE GHANA OPPORTUNITY PricewaterhouseCoopers Total Recoverable Resources: 3.4 TCF 1-Block. 69,061-Acres. (279.48km2) CONTACT AGENT FOR MORE INFO TANO BASIN and Operis Group in DV 1096FO Six Drillable Prospects. DV advisory roles on various Water Depths: 300 - 1,500m. OFFSHORE transactions. Segel is the founding SOUTHERN AFRICA 40% WORKING INTEREST AVAILABLE partner and chairman of London Potential In-Place Reserves: 3,500 MMBO financial services business Mako Group. NAMIBIA EXPLORATION PROJECT CONTACT AGENT FOR MORE INFO 1-Block. 1,414,678-Acres. (5,725km2) DV 1068FO He is expected to join the audit and WALVIS & HUAB BASINS remuneration committees. Winther was Block Awarded July 2012. EX GUINEA-BISSAU PROJECT senior adviser at Evercore until October SEEKING JV PARTNER FOR WORK--- WALVIS 19,768-Acres (8,000 Sq Km). when he left the firm to pursue other --PROGRAMME. OFFSHORE GUINEA BASIN interests. He will also join the audit and CONTACT AGENT FOR MORE INFO Upper Cretaceous. 10,000 Ft. DV EX 1417FO Jurassic. 12,000 Ft. remuneration committees. 2D & 3D Seismic, Geophysics and -- JURASSIC SOUTHERN AFRICA OPPORTUNITY -- Well Tie Package, Basin Modeling. 2-Permits. HIGH OPERATED WI AVAILABLE OFFSHORE NAMIBIA Reserves (Upper Cretaceous): 3.0 BBO 5 Principal Cenomanian Sand Prospects. DV Reserves (Jurassic): 3.0 BBO Water Depth: 300-700m DV 3669 High Quality 3D Seismic Data Available.

plus SEEKING JV PARTNER OFFSHORE OFFSHORE NIGERIA FARMOUT Total Rsrce Potential: 2,325 MMBBLS 1-Block. 442,071-Acres. (1,789 Km2) Well Costs: $40,000,000 WESTERN NIGER DELTA CONTACT AGENT FOR MORE INFO Miocene Agbada Formation. DV Save time DV 1880FO Water Depths: ~6,561 - 8,858 Ft. sourcing Predominantly Structural Trap Type. SEEKING critical data Total Reserves: >1.1 BBOE JV More listings at plsx.com/listings CALL AGENT FOR ADDITIONAL INFO www.plsx.com/docFinder DV 5028FO

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