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© Coastal Energy Company 2010 | All Rights Reserved Corporate Presentation July 2010
Corporate PresentationAugust 2010
2Copyright Coastal Energy Company 2010 | All Rights ReservedCorporate Presentation August 2010
Forward Looking StatementsThis presentation contains ‘forward-looking statements’ as defined by the applicable securities legislation.Statements relating to current and future drilling results, existence and recoverability of potential hydrocarbonreserves, production amounts or revenues, forward capital expenditures, operation costs, oil and gas priceforecasts and similar matters are based on current data and information and should be viewed as forward-lookingstatements. Such statements are NOT guarantees of future results and are subject to risks and uncertaintiesbeyond Coastal Energy’s control. Actual results may differ substantially from the forward-looking statements. Thispresentation does not contain all of the information contained in the preliminary prospectus of Coastal EnergyCompany, which should reviewed for complete information.
3Copyright Coastal Energy Company 2010 | All Rights ReservedCorporate Presentation August 2010
Company Overview International Oil and Gas Company with assets in Thailand
Balanced portfolio of production, development and exploration assets:
– Offshore Thailand: Oil production with appraisal and exploration upside
– Onshore Thailand: Gas production with appraisal and exploration upside
Established Reserve and Production Base:
Note: Reserve numbers are net working interest before royalties from the Competent Person’s Report dated 12/31/2009 prepared by Huddleston & Co.
3P
70.5 mmboe
2P
55.0 mmboe
Contingent & Prospective Resources
668 mmboe
Total Production: 13,800 boepd Reserves
1P
23.2 mmboe
Sinphuhorm Gas 2,000 boe/d
Offshore Oil11,800 bbl/d
4Copyright Coastal Energy Company 2010 | All Rights ReservedCorporate Presentation August 2010
Investment Highlights
Established Production
Base
Active Drilling &
Development Program
Potential High impact
Assets
Cost Efficient Operations
Currently producing from both Onshore and Offshore Thailand
Total production is approximately 13,800 boe/d
– Offshore Oil: 11,800 bbl/d
– Onshore Gas: 2,000 boe/d
Offshore 2P Reserves of 32.9 mmbbl provide significant near term cash flow profile
Onshore 2P reserves of 22.2 mmboe provide long-term contracted cash flows
Prospective Resources of 325 mmbbl
Testing two exploration wells on Benjarong Eocene and East -1 prospects
Cost effective shallow-water development
– Songkhla & Bua Ban between 50 - 80 ft water depth
Ability to leverage existing offshore infrastructure in future development
– Use of FSO / processing platforms across multiple fields to minimize costs
5Copyright Coastal Energy Company 2010 | All Rights ReservedCorporate Presentation August 2010
Songkhla A Field: production is approx 8,000 bbl/d
Bua Ban Field: Drilling commenced late May, production is averaging approx 3,800 bopd
Untested exploration potential in Songkhla Basin and three other under-explored Tertiary Basins
– 4,000 sq. km 2-D seismic shoot on northern acreage is complete
Offshore Thailand Onshore Thailand
EU1 / E5N contains the Sinphuhorm Gas Field
– Currently producing 2,000 boepd
– Gas sold to Nam Phong power plant under a 15-year Gas Sales Agreement
A 3D seismic program is planned for the exploration acreage surrounding the Sinphuhorm field
Block G5/43(100%)
Block G5/50(100%)
E5N & EU1
(12.6%)
Block L27/43(36.1%)
Block L15/43(36.1%)
Block L13/48(21.7%)
32.9 mmbl of 2P Reserves11,800 bopd avg. production
22.1 mmboe of 2P Reserves2,000 boe/d avg. production
Note: Reserve numbers from Competent Person’s Report dated 12/31/2009 prepared by Huddleston & Co.
© Coastal Energy Company 2010 | All Rights Reserved Corporate Presentation July 2010
Offshore Thailand
7Copyright Coastal Energy Company 2010 | All Rights ReservedCorporate Presentation August 2010
Offshore Development Plan2 0 1 0
May Jun Jul Aug Sep Oct Nov Dec
Drill 10 Development & 2 Injection wells
Bua
Ban
B L
O C
K
G 5
/ 4
3B
enja
rong
Legend
In Progress
Planned
Test A-01 & A-02
Song
khla
A
Drill Oligocene Wedge Wells
Bua Ban North Exploration
Wells
8Copyright Coastal Energy Company 2010 | All Rights ReservedCorporate Presentation August 2010
Block G5/43: Fields and ProspectsSongkhla
4 wells producing approximately 8,000 bopd
Reserve and production upside potential in the Songkhla Wedge and Eocene
Field 2P reserves of 11.1 mmbbl
Bua Ban
5 wells producing approximately 3,800 bopd
A-03 Micoene well is under evaluation
Field 2P reserves of 21.8 mmbbl
5 prospects surrounding Bua Ban
Benjarong Eocene & East 1Flow test rate was uncommercial; potential fracture stimulation of the Eocene and acid stimulation of the Oligocene limestone section of the East 1 well
Existing 3-D coverage over discovered fields and several undrilled mapped prospects
9Copyright Coastal Energy Company 2010 | All Rights ReservedCorporate Presentation August 2010
Block G5/43: Bua Ban Field A-01, A-02, A-03, A-05 & A-06 are online and producing
approximately 3,800 bopd combined;
Bua Ban A-06 came online mid-August producing over
800 bopd from 40 feet of net pay with 17.5% porosity;
Bua Ban A-03 encountered the Miocene and is producing
80 bopd; prospectivity of the play is under evaluation
Bua Ban A-05 encountered 170 feet of total net pay in the
Upper and Lower Oligocene reservoirs with 15% porosity;
the 85 feet of net pay in the Lower Oligocene is higher
than the previous 68 feet of known thickness
The presence of the Upper Oligocene zone could open up
a new reservoir for development
A further 3 development wells and 2
exploration wells planned through end of
September
Bua Ban 3
Bua Ban 1
Bua Ban 2 Bua Ban A-01
Bua Ban A-02
Bua Ban A-03
Bua Ban A-04
Bua Ban A-05
Bua Ban A-06
Bua Ban A-07
Bua Ban A-08
Bua Ban 2A
10Copyright Coastal Energy Company 2010 | All Rights ReservedCorporate Presentation August 2010
Block G5/43: Bua Ban Field Bua Ban - Miocene Play
The Bua Ban A-03 well was drilled off structure and
encountered 20 feet of net pay in a Lower Oligocene
section 310 feet below the previous lowest known oil
The A-03 well also encountered 24 feet of net pay in the
Miocene reservoir at approximately 3,400 feet TVD
This is the first time that productive Miocene sands have
been encountered on Block G5/43
The Company is currently evaluating the prospectivity of
this new Miocene play
closing contour results in ~ 3600 acres
Strongest amplitude within closing contour results in ~ 1600-2000 acres
Bua Ban Mid-Miocene -3400 ft sand (tvd) Amplitude Map
Mid Miocene Sand Penetration
Shows or tested oil
11Copyright Coastal Energy Company 2010 | All Rights ReservedCorporate Presentation August 2010
Block G5/43: Songkhla AFour development wells have been drilled on the Lower Oligocene formation– All wells encountered oil in the Lower Oligocene primary
reservoir– Three water injection wells have been drilled– Strong water drive should increase ultimate recovery
The Songkhla A-08 well was drilled east of the original reservoir limit into the Songkhla Oligocene Wedge– Reserves of 3 mmbbl were assigned to the Wedge in 3P
numbers as of 12/31/2009– Well performance supports the existence of the Wedge
An exploration well (A-07) was drilled into the Eocene reservoir and encountered oil– Well was damaged during workover operations; plan to
redrill at time of development of Oligocene Wedge (Q1 11)– The Songkhla Eocene Fault Block B is included in 3P
reserves
Structure Map Top Oligocene Reservoir
Songkhla Oligocene(Main)
Songkhla Eocene
Songkhla Oligocene
Wedge
Limit of Oligocene Sand
12Copyright Coastal Energy Company 2010 | All Rights ReservedCorporate Presentation August 2010
Block G5/43: Songkhla A Seismic Line
Oligocene Sand
Oligocene WedgeOligocene
Main
Eocene
Line 853W E
13Copyright Coastal Energy Company 2010 | All Rights ReservedCorporate Presentation August 2010
Low
er O
ligoc
ene
Lowest Known Oil, -7526
N< S-1 S-A01 S-A03 S-A04 S-A08 >S
Oligocene Erosional Wedge
S-A07
Eoce
ne
Songkhla Field Structural Cross Section
14Copyright Coastal Energy Company 2010 | All Rights ReservedCorporate Presentation August 2010
BenjarongBenjarong Eocene A-01 well
– 83.5 feet of net pay with 12% porosity in Eocene
reservoir
– Additional 16.5 feet of net pay with 15% porosity
seen in a shallower section of the Eocene
Benjarong East 1
– 30 feet of net pay with 15% average porosity in the
Eocene
– Non conventional Lower Oligocene limestone
section encountered oil shows
Flow test rate was uncommercial; potential fracture
stimulation of the Eocene and acid stimulation of the
Oligocene limestone section of the East 1 well
Structure Map Top Eocene Reservoir
15Copyright Coastal Energy Company 2010 | All Rights ReservedCorporate Presentation August 2010
G5/50 Exploration Potential
Areas of Interest
G5 / 43 N
G5 / 50
Northern Block of G5/43 and G5/50
4,000 sq. km of 2-D seismic acquired in Q4 2009
– Seismic is currently being interpreted
– Three lead areas have already been identified
Exploration wells are planned for 1H 2011
© Coastal Energy Company 2010 | All Rights Reserved Corporate Presentation July 2010
Financial Information and Reserves
17Copyright Coastal Energy Company 2010 | All Rights ReservedCorporate Presentation August 2010
Total Production Growth
0
2,000
4,000
6,000
8,000
10,000
12,000
Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10
Qua
rter
ly P
rodu
ctio
n (B
OE
/ D)
Onshore Offshore
18Copyright Coastal Energy Company 2010 | All Rights ReservedCorporate Presentation August 2010
Improving Offshore Operating Netbacks
$15.98 $19.12$29.55
$23.77
$39.42$50.08 $52.68
$11.16$14.63
$16.96 $29.41
$22.19
$14.21$14.67
$3.35
$3.85
$4.64$5.12
$5.45
$2.38
$1.50
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10
Off
shor
e N
etba
cks
($ /
bbl)
Cash Operating Netback Production expense Royalties Cash Taxes
19Copyright Coastal Energy Company 2010 | All Rights ReservedCorporate Presentation August 2010
Increasing EBITDAX
29,85435,496
12,5206,820
14,967
3,557(264)1,680
(5,000)
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 '10
US
$000
s
(1)
Note (1): EBITDAX in Q2 ’10 is lower than in Q1 ’10 due to the timing of liftings. The Company had approximately222,000 bbls of crude oil inventory at the end of Q2 ’10.
20Copyright Coastal Energy Company 2010 | All Rights ReservedCorporate Presentation August 2010
2010 Estimates
Metric 2010E
Company Estimates
Production (boe/d) 12,000
Cash Flow from Operations US$160MM
OCFPS – fully diluted C$1.50
Capex* US$145MM
*Capex estimate revised to reflect rig contract extension announced August 16, 2010
Equity Research Estimates
NAV (2P) C$7.75
Price Target C$7.25
CEN Stock Price (8/17/10) C$4.95
Discount to Target Price (32%)*Average of most recent analyst estimates from Canaccord Capital, Macquarie Capital, Royal Bank of Canada Capital Markets , Thomas Weisel Partners and GMP Europe
21Copyright Coastal Energy Company 2010 | All Rights ReservedCorporate Presentation August 2010
Significant Discount to 2P Net Asset ValueCase 10% Pre-tax
(US$ MM)10% Post-Tax
(US$ MM)NAV per Share (US$ Pre-tax)
NAV per Share (US$ Post-tax)
NAV per Share (C$ Post-tax)
Offshore
Proved $609.3 $345.2 $5.37 $3.04 C$3.20
Proved +Probable $1,454.9 $577.1 $12.83 $5.09 C$5.35
Proved + Probable + Possible $2,134.6 $737.1 $18.83 $6.50 C$6.83
Onshore
Proved $154.6 $107.3 $1.36 $0.95 C$0.99
Proved +Probable $299.2 $203.5 $2.64 $1.80 C$1.89
Proved + Probable + Possible $299.2 $203.5 $2.64 $1.80 C$1.89
Total
Proved $763.9 $452.6 $6.73 $3.99 C$4.19
Proved + Probable $1,754.1 $780.6 $15.47 $6.89 C$7.23
Proved + Probable + Possible $2,433.9 $940.6 $21.47 $8.30 C$8.72
Market Price as of August 17, 2010(C$) Premium/(Discount) to 1P Value (Post-Tax)
Premium/(Discount) to 2P Value (Post-Tax)
C$4.95 8% (32)%
Notes: All amounts in US dollars except where notedAfter-tax NAVs include effect of Thai Petroleum Income Tax (PIT) and Special Remuneratory Benefit (SRB)NAVs determined using Forecast Pricing from Gilbert Lausten Jung (www.gljpc.com)Per share amounts calculated using fully diluted shares outstanding at March 31, 20101 CAD = 0.952 USD as of June 30, 2010
22Copyright Coastal Energy Company 2010 | All Rights ReservedCorporate Presentation August 2010
Total Reserve Base
License Area Proved (1P) Proved +Probable (2P) Proved + Probable + Possible (3P)
Offshore – Oil (mmbbl)
Songkhla Lower Oligocene 7.8 9.8 15.0
Songkhla Eocene 0.2 1.3 5.6
Bua Ban 7.2 21.8 27.8
Total Offshore (mmbbl) 15.2 32.9 48.4
Onshore
Sinphuhorm - Gas (bcf) 46.7 128.4 128.4
Sinphuhorm – Condensate (mmbbl) 0.3 0.7 0.7
Total Onshore (mmboe) 8.0 22.1 22.1
Grand Total (mmboe) 23.2 55.0 70.5Note: Gross Reserves taken from the Competent Person’s Report prepared by Huddleston & Co., effective December 31, 2009
23Copyright Coastal Energy Company 2010 | All Rights ReservedCorporate Presentation August 2010
Offshore Reserves & ResourcesReserves (mmbbl) 1P 2P 3PSongkhla Lower Oligocene 7.8 9.8 15.0Songkhla Eocene 0.2 1.3 5.6Bua Ban Main 7.2 21.8 27.8
Total 15.2 32.9 48.4
Prospective Resources*Songkhla North 4.1Songkhla West Oligocene Unit 2 8.8Songkhla West Oligocene Unit 4 8.3Songkhla South-West 2.6Songkhla B Oligocene 2.6Songkhla South 2.7
Songkhla Total 29.1
Bua Ban North A 11.1Bua Ban North B 89.0Bua Ban North C 44.1Bua Ban North D 23.1Benjarong Lower Oligocene 144.4
Bua Ban Total 311.7G5/43 Total Prospective Resources 340.8
Contingent Resources*Benjarong 17.5Songkhla South-West 3.6
G5/43 Total Contingent Resources 21.1
Grand Total Offshore Prospective & Contingent Resources 361.9
Additional Coastal Prospects**Songkhla A Miocene 23.7
Songkhla Total 23.7
Bua Ban Northeast A 23.4Bua Ban Northeast B 10.2Benjarong East 1 & 2 21.9
Bua Ban Total 55.5
Songkhla B Oligocene (Contingent) 1.0
Total Coastal Additional Prospects 80.2
Gross Working Interest Reserves*Huddleston & Co. estimates as of 12/31/2009**Coastal Reserve Estimates Only
High Case (mmboe)
High Case (mmboe)
High Case (mmboe)
24Copyright Coastal Energy Company 2010 | All Rights ReservedCorporate Presentation August 2010
109,066,282113,365,135
US$10.2 millionUS$29.6 millionUS$3.5 million
Total number of shares outstandingFully diluted share countCash (as of 3/31/2010)Reserve Based Credit Facility Outstanding (as of 3/31/10)Other Short Term Debt (as of 3/31/10)Trading Symbols: “CEN” on TSX-V and “CEO” on London AIM
Corporate Information
© Coastal Energy Company 2010 | All Rights Reserved Corporate Presentation July 2010
Appendix
26Copyright Coastal Energy Company 2010 | All Rights ReservedCorporate Presentation August 2010
Sinphuhorm Gas Field
Coastal net 12.6% interest (Hess Operator)
Coastal net 2,000 boe/d
Feedstock for 750 MW power plant at Nam Phong;
gas sold under 15-year gas sales agreement
expiring 2021
Contingent gas resources of 5.4 tcf (high case)
3-D seismic shoot planned for 2010
Onshore Blocks EU1, E5N, L15/43
Indosinian 1 Unconformity TWT Structure
PK-1
Proposed Phu Horm South Well
27Copyright Coastal Energy Company 2010 | All Rights ReservedCorporate Presentation August 2010
Bua Ban Mid-Miocene -3400 ft sand (tvd)Time Structure Map
Bua Ban Miocene
PK-1
Proposed Phu Horm South Well
Closing contour results in ~ 3600 acres
Mid-Miocene -3400 ft sand
Mid Miocene Sand Penetration
Shows or tested oil
Miocene shows in the Bua Ban A-03 well could open up a
new play in the basin
Oil tested from the Miocene formation in the A-03 was
sweet and had API gravity of 34 degrees
The Company is evaluating go forward plans for future
appraisal of the Miocene
28Copyright Coastal Energy Company 2010 | All Rights ReservedCorporate Presentation August 2010
“Thai III” regime
Royalty payable on a sliding scale determined by monthly production volume (5 – 15%)
Current monthly production volume results in 7% effective royalty rate; monthlyproduction of 20,000 bopd results in 10% effective royalty rate
Petroleum Income Tax (“PIT”) payable on net income after deductions
Allowable deductions: Royalty, Operating Expenses, Depreciation Allowance, SpecialRemuneratory Benefit, Loss Carryforward
Tangibles depreciated straight-line over 5 years
Pre-production intangibles depreciated straight-line over 10 years
Post-production intangibles expensed as incurred
Resulting net income taxed at 50% rate
Coastal expects its overall effective tax rate to be approximately 5 - 10% in 2010*
Coastal does not expect to incur any SRB liability in 2010
Thailand Fiscal Terms – G5/43
*Assumes $115MM capex for development of Bua Ban and Benjarong; $70/bbl realized; Average daily offshore production of 10K bopd in 2010
29Copyright Coastal Energy Company 2010 | All Rights ReservedCorporate Presentation August 2010
Designed as a “Windfall Profits Tax” for high oil price environmentsAssessed on a sliding scale basis determined by “Revenue per Meter Drilled”
Petroleum Revenue applied to sliding scale is adjusted for inflation and exchange ratefluctuations (0 – 75%)
Coastal’s offshore concessions provide a 600,000 meter “allowance” to be added to actualdrilling footageTax assessed on “Petroleum Profit”
Allowable deductions: Royalty, Capital Expenditures, Operating Expenses, LossCarryforwardAll Capex is expensed as incurred, with a special 35% “uplift” on facilities capexAllows for full capital recovery plus uplift
SRB is deductible for PIT purposes
Special Remuneratory Benefit
30Copyright Coastal Energy Company 2010 | All Rights ReservedCorporate Presentation August 2010
Special Remuneratory Benefit ExampleRevenue: $250MM
Adjusted Revenue: $200MMDeductible Expenses - $345MM
Royalty (10%): $25MMOperating Expenses: $50MMCapital Expenditures: $120MM ($80MM intangible, $30MM facilities +35% facilities uplift)Loss Carryforward: $150MM
Petroleum Profit: -$95MM ($250MM - $345MM), $95MM loss carried to next yearAdjusted Revenue per Meter Drilled
$200MM / (600,000 + 15 wells X 3,000 meters) = $310 per meterResulting SRB rate is approximately 25% per sliding scale (USD/THB rate of 35 was used);applied to negative Petroleum Profit results in no SRB payable
Adj. Revenue per Meter SRB Rate
<137 0
137 – 411 1% for each $7
411 – 960 1% for each $27
>960 1% for each $110
31Copyright Coastal Energy Company 2010 | All Rights ReservedCorporate Presentation August 2010
Legal DisclaimerThe information contained in this presentation (“Presentation”) has been prepared by Coastal Energy Company (“Company”) and is being delivered for informational purposes only to a limitednumber of persons to assist them in deciding whether or not they have an interest in investing in the Company. The Presentation has not been independently verified and the information contained init is subject to updating, completion, revision, verification and further amendment. The Presentation does not purport to contain all information that a prospective investor may require. While theinformation contained in it has been prepared in good faith, neither the Company nor its shareholders, directors, officers, agents, employees, or advisors give, has given or has authority to give, anyrepresentations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this Presentation, or any revision thereof, or of any other writtenor oral information made or to be made available to any interested party or its advisers (all such information being referred to as “information”) and liability therefore is expressly disclaimed.Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct, express or implied,contractual, torturous, statutory or otherwise, in respect of the accuracy or completeness of the information or for any of the opinions contained in, or for any errors, omissions or misstatements or forany loss, howsoever arising from the use of this Presentation. In furnishing this Presentation, the Company does not undertake or agree to any obligation to provide the recipient with access to anyadditional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation which may become apparent.Information contained in this Presentation is confidential information and the property of the Company. It is made available strictly for the purposes referred to above.The Presentation and any further confidential information made available to any recipient must be held in complete confidence and documents containing such information may not be reproduced,used or disclosed without the prior written consent of the Company. This Presentation must not be copied, published, reproduced or distributed in whole or in part at any time without the prior writtenconsent of the Company and by accepting the delivery or making to it of this Presentation, the recipient agrees not to do so and to return any written copy of this Presentation to the Company at therequest of the Company.This Presentation should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisors. Each party to whom thisPresentation is delivered or made must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. In particular,any estimates or projections or opinions contained in this Presentation necessarily involve significant elements of subjective judgement, analysis and assumption and each recipient should satisfyitself in relation to such matters. Neither the delivery or making of this Presentation nor any part of its contents is to be taken as any form of commitment on the part of the Company to proceed withany transaction and the right is reserved to terminate any discussions or negotiations with any prospective investors. In no circumstances will the Company be responsible for any costs, losses orexpenses incurred in connection with any appraisal or investigation of the Company.This Presentation does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to subscribe for or purchase any securities in the Company, nor shall it, orthe fact of its delivery, making or distribution, form the basis of, or be relied upon in connection with, or act as any inducement to enter into, an contract or commitment whatsoever with respect tosuch securities. Any such solicitation or offer will be made by means of a prospectus to be issued by the Company in due course and any decision to subscribe for securities in the Company shouldbe made solely on the basis of the information contained in such prospectus.
The delivery, making or distribution of this Presentation in or to persons in certain jurisdictions may be restricted by law and persons who receive this Presentation should inform themselves about,and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of the laws of the relevant jurisdiction. In particular, this Presentation has not beenapproved by an authorised person pursuant to Section 21 of the Financial Services and Markets Act 2000 (“FSMA”) and accordingly, it is being communicated in the United Kingdom only to personsto whom this Presentation may be communicated without contravening the financial promotion prohibition in Section 21 of the FSMA. Those persons are described in the Financial Services andMarkets Act 2000 (Financial Promotion) Order 2005 (“Order”) and include persons who fall within the category of person set out in Articles 19 and 49 of the Order. Any investment activity to whichthis Presentation relates in the United Kingdom is available to, and will only be engaged with such persons and this Presentation should not be acted or relied upon in the United Kingdom by personsof any other description. This Presentation has not been approved as a prospectus by the UK Financial Services Authority (“FSA”) under Section 87A of the FSMA and has not been filed with theFSA pursuant to the United Kingdom Prospectus Rules. No offer of securities in the Company is being or will be made in the United Kingdom in circumstances which would require such a prospectusto be prepared.The securities proposed to be issued by the Company (the "Common Shares") have not and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and maynot be offered or sold in the United States except pursuant to an exemption from, or transactions not subject to, the registration requirements of the Securities Act. In addition, other than to a limitednumber of persons reasonably believed to be qualified institutional buyers (as defined in Rule 144A under the Securities Act), neither this Presentation nor any copy of it may be taken or transmittedinto the United States or America or distributed directly or indirectly, in the United States of America or to any resident thereof except in compliance with the applicable U.S. securities laws. Anyfailure to comply with these restrictions may constitute a violation of applicable U.S. securities laws.By accepting this Presentation, the recipient represents and warrants that it is a person to whom this Presentation may be delivered or distributed without a violation of the laws of any relevantjurisdiction. This Presentation is not to be disclosed to any other person or used for any other purpose and any other person who receives this Presentation should not rely or act upon it.