Athabasca Resources. Athabasca Resources Limited Investor Overview Overview & Strategy Santiago Investor Conference. 21 June 2014. Important Notice
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Athabasca Resources Limited
Overview & Strategy
Santiago Investor Conference
21 June 2014
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, JAPAN OR CANADA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION
This Presentation is not a prospectus for the purposes of the Prospectus Rules of the Financial Services Authority and has not been approved by the Financial Services Authority. This Presentation is for information purposes only and does not constitute or form part of, and should not be construed as constituting or forming part of any offer, invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the Company or securities in any other entity, nor shall any part of this Presentation nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of the Company or of any other entity.
The information and opinions expressed in this Presentation are provided as of the date of this Presentation. The information contained herein is for discussion purposes only and does not purport to contain all information that may be required to evaluate the Company and/or its financial position. Some of the information in this Presentation is still in draft form has not been independently verified. [In particular, it should be noted that (i) resources data and (ii) certain financial information and certain prospective information) contained herein have not been finalised or audited]. No reliance may be placed for any purpose whatsoever on the information contained in this Presentation or on its completeness, accuracy or fairness. No representation or warranty, express or implied, is given by or on behalf of the Company or any of its directors, officers, advisers, agents or employees or any other person as to the accuracy or completeness of the information or opinions contained in this Presentation and, to the extent permitted by law, no liability whatsoever (in negligence or otherwise) is accepted by the Company or its members, directors, officers, advisers, agents or employees nor any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising in connection therewith. In particular, no representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed on, any projections, targets, estimates or forecasts contained in this Presentation and nothing in this Presentation is or should be relied on as a promise or representation as to the future. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change materially. The Company is not under any obligation to update or keep current the information in this Presentation.
This Presentation and its contents are confidential and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose and are intended for distribution in the United Kingdom only to: (i) persons who have professional experience in matters relating to investments falling within Article 19(1) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”); or (ii) persons falling within Article 49(2)(a) to (d) of the Order or to those persons to whom it can otherwise lawfully be distributed (all such persons together being referred to as “relevant persons”). This Presentation must not be acted upon by persons who are not relevant persons. Any investment or investment activity to which this Presentation relates is available only to relevant persons and will be engaged in only with relevant persons. Any recipient of this Presentation who is not a relevant person should return it to Company immediately, not attend the physical presentation and take no other action.
The distribution of this Presentation in certain jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. This Presentation does not constitute an offer to sell or a solicitation of an offer to purchase any securities in any jurisdiction in which such offer or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any jurisdiction. The securities proposed to be offered by the Company have not been and will not be registered under the US Securities Act of 1933, as amended (the Securities Act) or under any securities laws of any state of the United States and may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.
Certain statements in this Presentation are forward-looking statements. The forward-looking statements include statements typically containing words such as “intends”, “expects”, “anticipates”, “targets”, “plans”, “projects”, “estimates” and words of similar import. Statements relating to "reserves" and "resources" are deemed to be forward looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated, and can be profitably produced in the future. These forward-looking statements speak only as at the date of this Presentation and you should not place undue reliance on them. These statements are based on current expectations and beliefs and, by their nature, are subject to a number of known and unknown risks and uncertainties that could cause actual results, performances and achievements to differ. The forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and environments in which the Company will operate in the future and such assumptions may or may not prove to be correct. No statement in this Presentation is intended to be nor may it be construed as a profit forecast. The Company does not undertake any obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. Forward-looking information is based on management's current expectations and is subject to a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Company and described in the forward-looking information. The material risk factors affecting the Company and its business are similar to those of other companies engaged in the business of exploring for and producing oil and gas, both domestically and in foreign countries and include, but are not limited to: risks in identifying and acquiring oil and gas interests on acceptable terms; the ability of the Company to obtain financing on acceptable terms; geological risks; drilling risks; oil and gas industry operational risks in development, exploration and production (including encountering unexpected formations or pressures, premature declines of reservoirs, potential environmental damage, blow-outs, fires and spills); delays or changes in plans with respect to exploration or development projects or capital expenditures; the ability to attract and retain key personnel and to acquire equipment and services in a timely and cost efficient manner; the risk of commodity price and foreign exchange rate fluctuations; competition risks; general economic risks, risks associated with the timely receipt of any required regulatory approvals and changes to the regulatory impacting levels of royalties and taxes and the risks associated with international activity (including the uncertainty associated with negotiating with foreign governments, adverse determinations or rulings by governmental authorities, changes in energy policies or the personnel administering them, nationalization, arbitrating and enforcing claims against entities that may claim sovereignty and other risks arising out of foreign governmental sovereignty). References to boes may be misleading, particularly if used in isolation. In addition, design capacity is not necessarily indicative of the stabilized production levels that may ultimately be achieved. Moreover, reported average or instantaneous production levels may not be reflective of sustainable production rates and future production rates may differ materially from the production rates reflected in this Presentation due to, among other factors, difficulties or interruptions encountered during the production of bitumen or other hydrocarbons.
By attending the physical presentation or by accepting the Presentation you will be taken to have represented, warranted and undertaken that: (i) you are a relevant person (as defined above); (ii) you have read, acknowledge and agree to comply with the contents of this notice; and (iii) you will not at any time have any discussion, correspondence or contact concerning the information in this Presentation with any of the directors or employees of the Company, its subsidiaries nor with any of their suppliers, customers, sub-contractors or any governmental or regulatory body, or otherwise distribute this Presentation, without the prior written consent of the Company.
Source: DeGolyer & MacNaughton 2012
Source: www.eia.gov/emeu/cabs/Canada; Canadian Association of Petroleum producers; MIT Technology Review, January 2012;
Source: DeGolyer & MacNaughton 2012
Source: DeGolyer & MacNaughton 2012; www.oilsands.infomine.com/commodities
Athabasca Resources’ Chard Field
Meg Energy’s Christina Lake field is approx 15 km south of Chard and is currently producing in the same formation as Chard Meg Energy has 2P reserves of 1.7bn barrels in 80 sections
Source: The Terracon Group
Source: Public presentations and announcements from the respective companies listed above and
Source: www.eia.gov/emeu/cabs/Canada ; www.oilsands.infomine.com/commodities/nd; MIT Technology Review, January 2012; http://en.wikipedia.org/wiki/Steam-assisted_gravity_drainage
New Technologies Provides Access To Thinner Layers & Incentives Are In Place To Promote Further Innovation
Source: www.energy.alberta.ca/OilSands/pdfs/FactSheet_OilSands.pdf, http://en.wikipedia.org/wiki/Steam-assisted_gravity_drainage; McDaniel & Associates Consultants Ltd. (McDaniel THAI® Transition Report); www.e-tengergy.com: Sinopec China
WHAT DOES ORS DO?
1-3 Year Growth Strategy – Upgrade, Acquire, Produce
Source: Company Analysis
Management Team & Board
Julian Hamilton Barns, aged 54, Founder Director
Julian Hamilton Barns qualified as a Solicitor in England and Wales in 1984 and in Hong Kong in 1992 having graduated in Business Law in London. He has specialized in corporate law since qualification and has acted for many international clients in the corporate finance and mergers and acquisitions sectors with particular focus on the oil and gas and natural resources industries. He has extensive Northern American clients and business connections.
Conditional upon completion of the Private Placing, the following individuals have agreed to join the Board:
Atul Gupta, aged 50, Director
Atul Gupta served as CEO of Burren Energy Plc until 2008. He has worked in the international upstream oil and gas industry for over 25 years. He serves on a number of boards. He holds a Bachelors degree in chemical engineering from Cambridge University and a Masters degree in petroleum engineering from Heriot-Watt University in Edinburgh Scotland.
Richard Bonnycastle, aged 78, Director
Richard Bonnycastle has been the Chairman and the President of Cavendish Investments Limited since 1968. He also serves as the Chairman of the Harvest Fund Inc. He currently holds substantial investments in numerous private and public companies and sits on the board of many of these companies. He has wide ranging experience as a corporate financier and adviser in the oil and gas industry with particular focus in Canada.
Other Directors with suitable skills and experience will be appointed during the IPO Process.
Joint Operating Committee Will Control The Work Program
Athabasca Resources Ltd
Nordic Petroleum AS
Joint Operating Agreement/Committee
Nordic Americas Inc *
Norwegian Oil Sands Corp**
*): Nordic Americas Inc is a licensed operator and Nordic America and Athabsaca Resources Limited will each be presented at the JOA Committee
**): Norwegian Oil Sands Corp acquired the three licences from Keppoc Energy Ltd and Pan Pacific Land Corporation on the in October 2007
Use Of Funds
Assumption: 1 USD = 1 CAD = 0.64 GBP
*): Based on an equity raise of £4 million
Company Details & Corporate Advisors
McGuire Woods London LLP
11 Pilgrim Street
London EC4V 6RN
An independent Firm associated w/
Moore Stephens International Limited
701 Evans Avenue, 8th Floor
Toronto ON M9C 1A3, Canada
Devonshire House60 Goswell Road
London, EC1M 7AD
Nomad & Broker
ZAI Corporate Finance Limited
1 Hobhouse Court
London, SW1Y 4HH
Barclays Bank Plc
City of Cardiff Branch
Independent Reserve Engineers
DeGolyer & MacNaughton Canada Limited
1430-311 Sixth Avenue,
Calgary, AB T2P 3H2
Athabasca Resources Limited
Castleton CardiffCF3 2UZ
Reg. Number: 08
Description: ISIN: SEDOL:
Athabasca Resources Limited
117 Waterloo Road
SE1 8 UL
Phone +44 7768 461528
Phone : +44-20-7921 0070
Fax: +44-20-7902 1133
Athabasca’s Oil Sands
Geological Overview: Middle & Lower Channel
Source: DeGolyer & MacNaughton 2012