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April 4, 2017 • Volume 09, No. 05

InternatIonalDealsServing the marketplace with news, analysis and business opportunities

Point Resources buys Exxon’s Norwegian E&P operations

Confirming months of rumors, ExxonMobil agreed to sell its operated upstream business in Norway to Point Resources, a portfolio company of Stavanger private equity firm HitecVision. The Exxon-operated fields have liquids-weighted 2016 net production of 54,000 boe/d, enough to increase Point’s output nine-fold to 60,000 boe/d and make it one of the top independent operators on the Norwegian Continental Shelf. The enlarged company will also have 350 MMboe of reserves and contingent resources.

This is the third big supermajor pullback from the North Sea in less than a year. BP merged its Norwegian oil and gas business into domestic producer Det Norske in a US$1.47 billion deal that closed last September, forming AkerBP. Then in February, Shell agreed to sell most of its UK North Sea properties to privately held Chrysaor for $3.0 billion.

The deal includes Exxon’s producing Balder, Ringhorne and Ringhorne Ost fields (100%, 100% and 77% WI), partially developed Forseti field (100%) and Jotun unit, where production ceased last year (90%). CNOOC pre-empts half of Tullow’s Uganda farmout

China’s state-owned CNOOC exercised preemptive rights over half of Tullow Oil’s proposed US$900 million Lake Albert sell-down onshore Uganda to Total. The French supermajor agreed in late January to acquire an incremental 21.57% WI in all four of the oil project’s license areas, hiking its stake to 54.9%. Now CNOOC and Total will

each take 10.785% WI for $450 million under the same terms. Thus, each will pay $100 million cash—$50 million at closing and $25

million each at FID and first oil—plus a $350 million carry on Tullow’s costs for the upstream development and export pipeline.

Tullow’s stake will drop to 11.76%, further diluted to 10% when the government exercises back-in rights. Total and CNOOC will each own 44.12%. Tullow’s press release did not specify which company would take over its operatorship of license EA2, which would have gone to Total under the original terms. The transfer will end Tullow’s role as an operator in Uganda. Total already operates EA1 and EA1A; CNOOC operates EA3.

Tullow picked up the Lake Albert licenses near the Congolese border in 2004 via its $500 million acquisition of Johannesburg-listed Energy Africa and made its Mputa, Waraga and Kingfisher discoveries there in 2006.

Carlyle startup Assala buys Shell’s Gabon assets for $872MMAfter months of talks, Shell is selling its onshore operations in Gabon to a new

portfolio company of The Carlyle Group for US$872 million, including assumed debt of $285 million. Carlyle has tapped a management team with extensive experience in

Gabon to lead London-based Assala Energy, which will seek expansion there and across sub-Saharan Africa with a focus on mid-life and mature assets. All of Shell’s ~430

employees in Gabon will transfer to Assala.Shell has been active in Gabon since

1960 and is one of the West African nation’s biggest oil and gas investors. Both of its operating units in the country are being acquired by Assala: wholly owned Shell Upstream Gabon and Shell Gabon, which is 25% owned by the national government. The supermajor had oil-weighted 2016 net production of 41,000 boe/d onshore Gabon from the operated Rabi, Toucan/Robin, Gamba/Ivinga, Koula/Damier and Bende/M’Bassou/Totou fields as well as four non-op properties.

Robust international M&A in Q1 despite 52% value dropThe global upstream deal market held onto its late 2016 momentum in Q1, racking

up US$65.5 billion from 138 deals with disclosed values versus 4Q16’s $63.4 billion from 162 deals, according to the PLS Global M&A Database. That 4Q16 total rescued what would have been a dismal 2016 and brought it closer to historical norms with values totaling $137.7 billion. If Q1 is representative of what’s in store for 2017, the total will approach the recent high point in 2012, which exceeded $270 billion. This is particularly remarkable because Brent oil averaged $55.32/bbl in Q1 versus $111.67 in 2012.

While US activity stayed relatively flat at $24.7 billion in Q1, there was a notable momentum shift from the international market ($15.9 billion, down 52%) to Canada ($25.0 billion, up more than 600%). Driving that change were multibillion-dollar divestments by three globally active oil and gas companies to dramatically reduce their exposure to Canadian oil sands (PG. 2). Despite the 52% drop in deal value versus 4Q16, the international upstream deal market looks stronger than at any time since the downturn.

ASIA-PACIFIC BANKRUPTCY SALE 6-Licenses. 7-Exploration Wells.ONSHORE PAPUA NEW GUINEA5-DISCOVERIES. DSWORLD-CLASS NG/LNG PLAYGas Columns: 200m to 700m. BANKRUPTCY1.2% Indirect Participation InterestWorld Class Flow Rates: 700 MMCFDExxon Acquiring Interoil As OperatorYE 2015 2C Resource Potential: 10 TCFCONTACT PLS ENERGY ADVISORSDS 1101PP

DEALS FOR SALE

Upstream sales gain momentum: $3B UK, $7.3B oil sands, $900MM Thailand.

Tullow still gets $200MM cash, $700MM carry to bring Lake Albert to first oil.

Supermajors in North Sea pullback as ambitious independents step up.

PLS tracks thousands of deals for sale www.plsx.com/listings

At $15.9B, best quarter since mid-2014 excluding megadeals in 2Q15 & 4Q16.

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InternatIonalDeals 2 April 4, 2017

Petrobras hits reboot on Bauna/Tartaruga Verde sale processA series of court challenges prompted Petrobras to definitively cancel the sale of

its stake in two post-salt offshore oil projects. The Brazilian producer will restart the marketing process for 100% WI in the Santos Basin’s producing shallow-water Bauna field and 50% WI in the Campos Basin’s deepwater Tartaruga Verde development despite having received a binding $1.5 billion offer from Karoon Gas Australia. Karoon was reportedly planning to bring Woodside Petroleum in as a partner on the assets.

A Brazilian court in November ordered Petrobras put a hold on the Bauna/Tartaruga Verde sale after a lawsuit from the Brazilian oil tankers union charged that negotiations bypassed the required bidding process. In mid-March, Brazil’s Federal Accounting Court gave Petrobras the greenlight to complete the Bauna/Tartaruga deal and the sale of its interest in the Chevron-operated St. Malo field in the US Gulf of Mexico but ordered new divestment processes under revised rules for other sales in progress.

After the oil tankers union won a new injunction freezing the Bauna/Tartaruga sale, Petrobras announced March 29 that

it would begin the marketing process for these assets anew under the revised rules. Karoon managing director Robert Hosking expressed disappointment but said the Australian company remains committed to the deal.

“Reinitiating the divestment process under Petrobras’ revised methodology will help to reduce the risk of any future court action against a potential sale, providing greater certainty for the successful bidder,” Hosking added.

Amerisur acquires Colombian assets from Pacific E&P

Pacific E&P will sell its interests in four exploration blocks in Colombia’s Caguan-Putumayo Basin to Amerisur Resources for US$4.85 million cash plus royalty interests in two of the blocks. Amerisur is picking up 60% WI in PUT-9, 58% in Mecaya, 100% in Terecay and a 50% in Tacacho. Pacific will receive a 2% ORRI on production from Terecay and a 1.2% ORRI on production from PUT-9. The sale will also eliminate $30 million in regulatory commitments for Pacific.

For London-listed Amerisur, the deal increases ownership in PUT-9, Terecay and Tacacho to 100%. The company acquired its current 40% PUT-9 stake and an operated 50% WI in PUT-30 in a recent deal with Repsol. Amerisur has upstream assets in Colombia and Paraguay and operates the OBA pipeline into Ecuador.

Latin America

Conoco’s $13B Canada sale marks biggest deal since Shell/BGFor the fourth time in as many months, a global oil and gas producer announced

a major Canadian divestment. This time it’s ConocoPhillips selling its main oil sands projects and most of its Deep Basin assets to Cenovus Energy for US$13.3 billion. The Conoco deal follows asset sales by Shell for $8.5 billion and Marathon Oil for

$2.5 billion involving one of Canada’s largest mining

operations earlier in March and Statoil’s $444 million exit from the sector in December. It is also the largest upstream transaction globally since Shell announced its $82.7 billion acquisition of BG in April 2015.

Conoco is transferring its 50% WI in the producing Foster Creek and Christina Lake thermal oil sands projects—with net production of 178,000 bo/d—and the development-stage Narrows Lake project to operating partner Cenovus, along with

3.0 million net acres and 120,000 boe/d (26% liquids) and associated infrastructure in the Deep Basin. In exchange, it will get

$10.6 billion cash and 208 million Cenovus shares, along with contingent payments based on Canadian oil prices. Conoco plans to liquidate the Cenovus shares over time.

Closing is expected in Q2, with the cash proceeds earmarked to reduce Conoco’s debt from $27 billion to $20 billion by YE17 and double its share repurchase program to $6.0 billion. On conference call, exploration and technology EVP Matt Fox said these moves will allow Conoco to realize three-year goals announced last November with regard to its value proposition within just one year.

US & Canada

Latin America

Trinidad-focused Range Ltd.buys back drilling firm

Australia-based Range Resources Ltd., which has core assets in Trinidad, will pay US$5.5 million cash to repurchase a drilling contractor it sold to Hong Kong-listed LandOcean nearly two years ago. Range also agreed to accelerated repayment of a $19.5 million LandOcean loan.

Range sold Range Resources Drilling Services Ltd. to LandOcean in May 2015 to focus on E&P amid depressed oil prices. Since then LandOcean has injected more than $25 million into RRDSL—buying four new rigs, equipment and cementing facilities while reducing staff by 24%.

RRDSL now has 12 rigs and employs more than 160 people. It has continued to provide service for Range’s core E&P operations in Trinidad. Range believes the repurchase will lower its costs and provide operational flexibility.

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CanadianaCquirerServing the marketplace with news, analysis and business opportunities

EAST ALBERTA PROPERTY10-Wells. 2,048-Gross/Net Acres.WAINWRIGHT FIELD. T45.EDGERTON VILLAGE PPHeavy Oil Prospect With ----- Shallow Gas Production. ~35100% OPERATED WI AVAILABLE BOEDMonthly Cash Flow: ~$17,000/MonthCONTACT SELLER FOR MORE INFOPP 11478

SASKATCHEWAN PROPERTIES9-Oil Producers; 1-SWD; >10-PUDMANOR AREA. IMMEDIATE UPSIDE PPManor Tilston Oil Pool.Frobisher & Midale Oil Wells.100% OPERATED WI FOR SALE ~502Expected Future Production: 600 BOPD BOPDManor Proved Reserves: 445 MBOEManor Net Proved PV10: $23,443,000CONTACT AGENT FOR STATUSPP 13109DV

FEATURED DEALS

Canadian upstream M&A activity quadruples in 2014

Repsol’s $15.2 billion Talisman buy caps a busy 2014 in the Canadian oilpatch with $46.0 billion in upstream deals—roughly quadrupling 2013’s $11.8 billion. Of the previous six years, only 2012 had a higher tally at $54.7 billion and that included CNOOC’s $18.1 billion acquisition of Nexen. By deal count, activity declined 15% YOY to 269 transactions in 2014 from 319 in

2013 although deals with disclosed values actually rose slightly to 213 from 191.

This Canadian M&A analysis includes Repsol/Talisman because Talisman is a flagship Calgary company with a large domestic asset base, despite the fact that it operates globally and produces more oil and gas from the US and Indonesia than it does at home. However, even excluding this transaction Canada racked up $30.9 billion in 2014 deals, up more than 160% YOY.

Veresen & KKR nab Montney midstream for $600 millionEncana and Mitsubishi are selling Montney midstream assets in the Dawson area

of northeast British Columbia for $600 million to a new 50:50 partnership formed by Veresen Inc. and private equity giant KKR. Encana will receive $412 million for interests owned both directly and through its 60% stake in Cutbank Ridge Partnership (CRP),

its JV with Mitsubishi.Veresen Inc.-KKR

venture Veresen Midstream LP will acquire 500 km of gas gathering pipelines and 675 MMcfd of compression capacity. The deal also includes the Saturn compression station currently under construction, which will add 200 MMcfd of compression capacity when completed. The infrastructure gathers gas production from Encana and CRP and delivers it to various processing plants including the nearby Hythe/Steeprock facilities, which Veresen Inc. is contributing to Veresen Midstream.

Encana will continue to operate the assets on a contract basis, while Veresen Midstream will provide gathering and compression services to Encana and CRP under a 30-year fee-for-service arrangement in a 240,000-acre AMI.

Woodside enters shale patch with Kitimat buy from ApacheExecuting on a promise made to investors back in July, Apache agreed to sell

its interests in the Kitimat gas venture in British Columbia and Wheatstone project off Australia to Woodside Petroleum for $4.34 billion (US$3.75 billion). While the Australian project is a natural fit for Woodside’s offshore and LNG operational expertise, Kitimat is uncharted territory—its first

venture into onshore shale gas.Woodside is getting 50%

WI in the proposed ~1.3 Bcfd Kitimat LNG plant (10 million tonnes per annum), 460-km Pacific Trail Pipeline and 322,000 net acres (644,000 gross) of shale gas assets in British Columbia’s Liard and Horn River Basins. The acreage will provide an estimated 15 Tcf of net 2C resources. The entire project is owned in a JV with Chevron, which will operate the pipeline and LNG plant while Woodside takes over the shale acreage from Apache.

Talisman to be acquired by Spain’s Repsol for $15 billionMarking the first multi-billion-dollar foreign acquisition of a Canadian oil and gas

company since 2012, Spain’s Repsol agreed to buy Talisman Energy for $15.2 billion (US$13.0 billion). The price consists of $9.33/share in cash plus Talisman’s $5.4 billion

debt. The companies were able to strike the deal after months of on-again, off-again negotiations largely because falling oil prices cut the value of Talisman’s stock in half in less than five months. Nonetheless this is the largest deal seen

in Canada since China’s CNOOC paid $18.1 billion for Nexen in 2012.

That year saw two other Canadian producers bought up by foreign firms: Progress Energy Resources by Malaysia’s state-owned Petronas for $6.0 billion and Celtic Exploration by ExxonMobil for $3.1 billion. Following the CNOOC deal, Ottawa enacted new limits on oil sands ownership by overseas state-owned companies. These rules have had a chilling effect on foreign investment over the past two years but do not affect Talisman, whose assets in Canada target conventional oil and gas or shale rather than oil sands.

Biggest deal in Canada since CNOOCbought Nexen for $18 billion in 2012.

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Acquires 320,000 net acres with 15 Tcfof 2C gas in Horn River & Liard Basins.

Encana takes in $412 million fromsale with Mitsubishi getting the rest.

Driven by dividend-plus-growth firms, return of foreign buyers & royalty appetite.

US$3.75 billion deal also includesWheatstone in Australia.

InternationalDeals Dec. 18

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Cenovus doubles output, debuts in Deep Basin via Conoco deal.

Next CanadianAcquirer

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January 2, 2015 • Volume 04, No. 16

OilfieldServiceSServing the marketplace with news, analysis and business opportunities

TUSCALOOSA DRILLING PROJECT~20,000-Contiguous Gross Acres.MAJORITY IN PIKE CO., MISSISSIPPI TUSCALOOSA MARINE SHALEAlso Tangipahoa & St. Helena Ph., LA DV169-Drilling Locations. 80-Acre Spacing.SEEKING JV PARTNERSHIP; 75% NRI TMS2-D Seismic Available PLAYArea EURs: 600-800 MBO/WellLeases Expiring in 2018-2019DV 3395L

ALASKA ROYALTY ACREAGE 15,930-Gross/Net Acres.UPPER COOK INLET BASINKITCHEN LIGHTS UNIT (N. BLOCK) RRMiocene Tyonek & Oligocene HemlockDeep Sands: 11,000-16,500 Ft.Multi Pay Intervals Present~4.45% ORRI In Leases.Offset Well Tested Over 5,000 BOPD ORRI-- From Tyonek Deep Channel Sands.Estimated Project Reserves: 89 MMBO3rd Party Reserve Report Available.Continued Development by Furie.CALL SELLER FOR DETAILSRR 5100

FEATURED DEALS

Technip spies other deals after withdrawing CGG offer

Technip has formally withdrawn efforts to take out fellow French seismic leader CGG following the rebuffing of an unsolicited $1.83 billion cash bid for the company by Technip. The offshore E&C leader said that following CGG’s refusal, Technip proposed a number of alternate options to a tender offer, but said these efforts were similarly unfruitful. In a separate

statement, CGG said that none of the proposed options created value for the company, and The Financial Times reported that board members viewed the offer as opportunistic in light of lower oil prices. Regardless, CGG asserted it was in position to weather current difficult market conditions.

Canadian service firms give signs of things to comeIn an early indicator of where service capex budgets are headed in the Lower 48 as

they are announced in coming months, Canadian service firms have been announcing drastically reduced 2015 spending plans and newbuild construction halts in anticipation

of lower producer cash flows. Many of these firms also have US operations, for even better visibility on things to come. Number one Canadian driller Precision Drilling cut next year’s budget

44% to C$493 million from 2014’s C$885 million and idled its new rig construction program “until we see an improved commodity price environment and rising customer newbuild demand,” said CEO Kevin Neveu. The 2014 plan is also being cut slightly from a prior C$908 million. Precision will complete 16 currently under construction rigs, 15 headed for the US and one for Kuwait, but is planning no further deliveries next year.

Precision is trimming excess fat for leaner times as well, announcing it has sold its US coiled tubing assets for C$44 million cash to an undisclosed buyer. As of YE13, Precision’s C/T fleet consisted of eight units in the Marcellus and Bakken shales, and Peters & Co. believes the price tag represented replacement cost.

GE guides down for oilpatch efforts in pivotal 2015 General Electric is positioning to weather the downcycle with stoicism while

picking up new business, and businesses, along the way. GE is calling 2015 a “pivot” year, as it digests the massive ~$15 billion acquisition of Alstom’s power assets (closure in Q2), raises proceeds from non-industrial, non-core asset sales and cuts

costs to mitigate the impact of cheaper oil. GE anticipates industrial profits up 10% or more next year, but as for oil and gas specifically,

while the division saw $4.9 billion in orders in Q3, it is already seeing headwinds. GE cut its growth outlook from high single- to low double-digit growth down to mid-single digit expectations. CEO Jeff Immelt called crude pricing issues a short term industry challenge. The company now hopes to keep oil and gas profits and revenues fairly flat through cost controls, although acknowledging that they very well may slide as much as 5%, particularly under capex freeze scenarios. Its exposure to the space is more geared toward production and less than peers on more volatile onshore unconventionals.

Assessing the service sector damagePrognosticators parse impact of crude plunge on services

With crude now down about 50% from its summer highs and E&Ps slashing capex left and right, some sense of the impact on the service sector is starting to come to light. Fortunately, with ongoing projects unlikely to have their plugs pulled, there is still probably a month or two of “full steam ahead, ” but some time next quarter activity decreases should begin to be more heavily felt, and it is worthwhile to examine who is best and worst positioned, how large the damage is likely to be, and how long a

trough could last. As for fracking,

PacWest Consulting recently did a deep dive conference call on its expectations, and the firm anticipates an 8% demand (as measured by hp) and price cut next year in US land. The drop represents a 12% decline in the number of horizontal wells fracked, offset somewhat by the continued shift toward more sand, stage-count and HP-intensive fracs. That said, frac stages are still expected to decrease 6%.

CGG deal dead in water; company cited opportunism by Technip.

PacWest sees frac demand & pricing down 8% next year.

Oil & Gas segment sales & profits projected down 0-5% next year.

Precision cut its 2015 budget 44% to C$493 million from 2014’s C$885 million.

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Rowan’s three jackups in Trinidad all get contract extensions.

OilfieldServices Feb. 28

Global industry increasingly turning oil sands over to Canadian firms.

Cash proceeds will fund faster debt reduction, doubling of share buyback.

Despite a binding $1.5B offer, Karoon must compete again for offshore fields.

$21B in 2017-2018 asset sales planned to help Petrobras reduce $123B debt.

InternationalDealsAccess PLS’ archive for previous A&D newsFor general inquiries, email info@plsx.com

Volume 09, No. 05 3 a&DMacquarie scores with revised $121MM Central takeover bid

The board of Australian conventional gas producer Central Petroleum gave its stamp of approval to an improved takeover bid of A$0.20 per share from primary lender Macquarie after rejecting an initial A$0.175 per share offer last November. Macquarie already owns a 2.3% stake in Central, which operates the Northern Territory’s only

producing onshore gas fields: Mereenie, Palm Valley and Dingo. The revised

deal is valued at A$161 million (US$121 million) including assumed net debt of A$76.3 million (US$57.4 million), which is primarily held by Macquarie.

The A$0.20 per share represents a 21% premium to the prior-day closing price and a 60% premium to share value prior to November’s offer. In addition to the base price, Macquarie will make up to A$19.62 per share or A$83.0 million in contingent payments based on exploration success over the next four years.

Central had net production of 10.5 MMcfe/d (82% gas) for the six months that ended Dec. 31. It is being advised by Origin Securities on the Macquarie deal, which will be submitted to a shareholder vote in late May.

Oceania Buyers & sellers tie up loose ends to make late Q1 deals

The culmination of multiple long-drawn-out deal processes pulled upstream activity for Q1 to US$15.9 billion (PG. 1). The Carlyle Group, which had been

in talks with Shell about its operations onshore Gabon, launched a new company

called Assala Energy to acquire the assets for $872 million (PG. 1). Another private equity firm, HitecVision, agreed to acquire ExxonMobil’s upstream operations in Norway via portfolio company Point Resources, confirming a widely reported divestment effort (PG. 1).

Another rumored North Sea deal was brought to light after the quarter’s end when BP announced it will sell its 42-year-old Forties pipeline to petrochem company Ineos for $250 million (PG. 9). In Australia, Macquarie’s takeover efforts for gas producer Central Petroleum finally bore fruit when Central’s board accepted an increased offer (PG. 3). And the yearlong divestment process for Chevron’s South African downstream business yielded a $900 million bid from Sinopec, beating rival offers from a multitude of suitors including Total, Glencore, Gunvor, Vitol and Sasol (PG. 6).

The Sinopec deal was just one of many recent buy-side moves by reinvigorated Chinese NOCs. Most recently, CNOOC agreed to pay $450 million to preempt half of Tullow Oil’s Lake Albert interest sell-down to partner Total (PG. 1) and farmed into a highly prospective exploration block offshore West Africa (PG. 7).

Meanwhile, other deal processes continue to face challenges. Petrobras is going back to market with its Bauna and Tartaruga Verde fields after a series of lawsuits scuttled a $1.5 billion sale to Karoon Gas Australia (PG. 2). And Cobalt International Energy had to write down its Angolan discoveries after state-owned Sonangol made its sale effort more difficult by refusing to extend the licenses, although Cobalt continues to work with the government to reach an agreement and sell the assets (PG. 7).

Top 10 New International Energy Deals in this Issue

Date Buyer SellerValue

(US$MM) Type Location03/21/17 Sinopec Chevron $900 Refining S. Africa

03/24/17 Assala Energy Shell $872 Property Gabon

03/17/17 CNOOC Tullow Oil $450 Farmout Uganda

04/03/17 Ineos BP $250 Pipeline UK North Sea

03/27/17 MedcoEnergi Inpex $167 Property Indonesia

03/10/17 Macquarie Central $121 Corporate Australia

03/27/17 Far Ltd. Erin Energy $13 Farmout Gambia

03/13/17 Jadestone Energy Repsol $6 Property Indonesia

03/13/17 Range Resources LandOcean $6 Drilling Trinidad

03/16/17 Amerisur Pacific E&P $5 Property Colombia

Total $2,789

Note: Based on deals with disclosed values. Source: PLS Global M&A Database

IN THIS ISSUE

Asia

Medco hikes S. Natuna B stake for $167MM as Inpex exitsJapan’s Inpex agreed to sell its 35% stake in the mature South Natuna Sea

Block B offshore Indonesia for US$167 million to Jakarta-based integrated energy company MedcoEnergi, which also acquired ConocoPhillips’ operated 40% late last year. Chevron owns the remaining 25% WI in the shallow-water block off the northern coast of Borneo, which has three producing oil fields and 16 gas fields in

various stages of development and generated gross 2016 production of 353 MMcfe/d (34% oil, 10% LPG).

Inpex is divesting South Natuna B as part of a global portfolio optimization program, saying it expects the block to contributed limited income and cash flow after nearly 40 years of production. The company bought into South Natuna B in 1977 ahead of first oil in 1979 and first gas in 2001. It expects to take a ¥13.5 billion (US$122 million) writedown on the assets for the fiscal year ending March 31 as a result of ¥16.0 billion in non-operating expenses.

Sale will eliminate debt, free up capex to meet high Australian gas shortage.

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InternatIonalDeals 4 April 4, 2017

Jadestone acquires Indonesian producing field from RepsolRepsol shed another legacy Talisman Energy asset, its 50% WI in the

producing Ogan Komering field onshore South Sumatra, Indonesia. Singapore-based but Toronto-listed Jadestone Energy, formerly known as Mitra Energy, paid US$5.8 million for the stake, funded with cash on hand. Jadestone will jointly operate the field with Indonesia’s state-owned Pertamina, which owns the other 50% WI. A team of

operational personnel from Talisman will join Jadestone to help manage Ogan Komering, which had 2H16 gross production of 3,000 boe/d (70% oil).

The Ogan Komering deal follows the sale in December of Repsol’s 3.06% stake in Indonesia’s Tangguh LNG project—also a legacy Talisman asset—to BP for $312.8 million. The Spanish energy company acquired Canada-based Talisman for $13 billion in 2014.

Jadestone executive chairman Paul Blakeley said Ogan Komering offers “potential for low-cost, early development of recent gas discoveries” and opens a new core area with “a wider set of M&A options.” Jadestone has interests in exploration licenses in Indonesia, Vietnam and the Philippines and 100% WI in the producing Stag oil field offshore Western Australia.

Petronas buys into Shell ultra-deepwater blocks off MyanmarShell has farmed out stakes in two ultra-deepwater exploration permits offshore

Myanmar to Petronas. The Malaysian state-owned oil company took 36% WI each in Blocks AD-9 and AD-11, which lie in the Bay of Bengal 300 km offshore in water depths of 1,800-2,700 m. Shell continues to operate with 54% WI and an affiliate of

Japanese trading house Mitsui retains 10%.Shell and Mitsui Oil Exploration Co. (MOECO) were awarded the two

blocks in the Rakhine Basin in Myanmar’s 2014 licensing round as well as MD-5 to the south in the Thanintharyi Basin. Mitsui owns a 74.26% equity stake in MOECO. The partners have acquired 12,800 sq km of 3D seismic over AD-9 and AD-11 and face a drill-or-drop decision by year’s end. Petronas was already present in Myanmar as operator of the mature Yetagun gas and condensate field.

Valeura closes NW Turkey deals with TransAtlantic & StatoilIn an operational update released in mid-March, Calgary-based Valeura Energy

highlighted the recent closing of three interrelated deals signed in 2016 that dramatically scale up its presence in northwest Turkey’s Thrace Basin while providing operational control and increased financial capacity. Valeura expects these deals to help it ramp up

drilling and grow production.The US$22 million buyout of JV partner and operator TransAtlantic

Petroleum, completed Feb. 24, boosted Valeura’s ownership from 40% to 81.5% in the ~294,000-acre Thrace Basin Natural Gas project, a core shallow gas producing property. This acquisition increased Valeura’s net sales from Turkey 45% to 6.9 MMcfe/d from a 4Q16 average of 4.8 MMcfe/d (98% gas).

To help fund this deal, Valeura closed a $12 million sale on Jan. 6 of 40% WI in deep rights on the western part of the TBNG acreage to Statoil. The companies subsequently agreed on an additional 10% WI for $3.0 million, pending government approval. Also on Jan. 6, Banarli closed a farm-out of half its deep rights on the adjacent Banarli licenses to Statoil. The Norwegian producer paid $6.0 million up front to cover back costs and will carry Valeura on a $36 million exploration program including two deep wells and 3D seismic.

Asia EAST AFRICASOMALIA RE-ENTRY OPPORTUNITY8-Potential. 7-UnDrill. 1,100,000-Acres.2x-Well Re-Entries 11,541 & 13,661 Ft. RE2D, Subsurface & GeophysicsNegotiable WI. OPERATIONS AVAILABLE REENTRYExpected IP: 700 BOPDExpected IP: 19 MMCFDRsrvs: 2.0 BBO & 6.0 TCFRE 2359DV

FORMER SOVIET UNIONCENTRAL ASIA OPPORTUNITYMultiple Licences Covering 3,000km2.DRILL READY PROSPECTS PPMesozoic & Cenozoic Stratigraphy.Existing 2D Seismic Data Available. 250SEEKING JV PARTNER BOEDExisting Production: 250 BOEDComb. Prospective Rsrcs: 550 MMBOECONTACT AGENT FOR MORE INFOPP 1191FO

MIDDLE EASTKURDISTAN AREA OPPORTUNITYLight Sweet Crude With No Water.Development Plan Approved In May 2016. PP3D Seismic Data Available.50% WORKING INTEREST FOR SALEGross Production: 5,000 BOPD 5,000Gross 2P Reserves: 21 MMBO BOPDUnrisked Prospective Resources: 66 MMBOCONTACT INVESTMENT BANKERCONTACT AGENT FOR MORE INFOPP 2975DV

MIDDLE EAST ASSET OPPORTUNITYProductive Formation Depths: 750-1,750m25 Year Service Agreement. Expiring 2040. PP15% NonOperated WI FOR SALE 17,000Nov 2016 Gross Production: 17,000 BOPD BOPD2P Gross Reserves: 35.5 MMBOCONTACT BLOCK OWNER FOR INFOPP 2106DV

TURKEY OPPORTUNITYOne Producing Field. 10 Year License.53 D&M Approved PUD Drilling Locations. PP3D Seismic Data Available.20% NonOperated WI For Sale 2,750Current Production: 2,750-3,100 BOPD BOPDAcquisition Includes InfrastructureCONTACT AGENT FOR MORE INFOPP 1043FO

DEALS FOR SALE

CALL PLS FOR

INFO

BUYERS! NO COMMISSIONS

Formerly Mitra Energy, renamed after $10MM Stag field buy closed at YE16.

FSU and Eastern Europe

January 15, 2015 • Volume 06, No. 01

CanadianCapitalServing the marketplace with news, analysis and business opportunities

ALBERTA PROPERTIES SALE5-Non-Core PropertiesCENTRAL & WESTERN ALBERTA PPAbee, Highvale, Kakut, Majeau & MorinvilleUp to 100% OPERATED WI FOR SALE 5.7Net Production: ~400 BOED (82% Gas) MMCFEDAvg Net Operating Income: ~$189,166/MoCALL AGENT FOR MORE INFOPP 14403DV

CANADIAN JOINT VENTURE1-Prospect. 43,000-Acres. 67-Sq Miles.MAGDALEN BASIN. GULF OF ST LAWRENCE DV80-km West of SW Tip of Newfoundland.Water Depth 470 m. Drill Depth 2,500 m.>1,000 km 2D Defines FourWay Closure. MAGDALEN100% OPERATED WI; JOINT VENTURETotal Resource Potential: 5.0 BBO or --- 7.0 TCF Carboniferous Clastic Targets.CALL AGENT FOR UPDATEDV 15009

FEATURED DEALS

Eagle Energy Trust becomes a Canadian asset holder

Eagle Energy Trust unitholders have approved a special resolution to amend the investment restrictions in Eagle's trust indenture, enabling it to invest in energy assets in Canada. Eagle had been previously been limited to investing on non-Canadian assets—the company currently has production of 1,900 boepd from properties in Texas and Oklahoma. The changes won’t have any impact

on its US operations or the taxes on distributions from those operations; the company’s Canadian investments will be structured so that its Canadian operations will be taxed in the same manner as other Canadian energy companies.

Eagle wasted no time taking advantage of the change, signing a deal with Spyglass Resources Corp. to buy a 50% non-op interest in producing properties under waterflood in the Dixonville Montney C oil pool in north central Alberta, paying $100 million. The acquisition adds 1,250 boepd of low-decline production.

Producers banking on service company savingsAs producers scale back their capital spending plans in the wake of falling oil

prices, many are looking to the service sector to help them prop up their bottom lines. Crescent Point Energy is already factoring a 10% reduction in service costs into its 2015 budget and will be pushing for more if prices remain low. Others are expected

to approach their capital budgets with the same mindset.

According to a survey con-ducted by Barclays, capital spending in the US and Canada is expected to fall by as much as 30% from last year to $138.1 billion. In turn, about half of producers expect drilling and completion costs to fall 10% in 2015, including in areas such as pressure pumping, drilling fluids and directional drilling. And while producers may see the service savings as a slight respite from the decline in oil prices, the news is doubly disheartening for those service providers. Not only are they seeing declines in their own businesses, they’re being asked to take less for the services they do provide.

Service companies are already feeling the impact.

Crescent Point banking on service cost & efficiency savingsHalf of oil hedged at US$90/bbl for 2015

Although Crescent Point Energy is setting its capital budget for 2015 about 28% lower than 2014, the company expects the slimmed down budget to deliver 9% YOY production growth to 152,500 boepd. The company set its budget for the year at $1.45 million, down 28% from the $2.0 billion

forecast for 2014. The budget assumes an

initial 10% reduction in service costs. Crescent Point expects to see even greater cost reductions if low prices persist. The company is looking at ways to improve its operational efficiency and is working on a number of drilling and completion technologies that could cut costs even further.

“When prices fell dramatically in 2008 to 2009, we were able to realize a 30% reduction in our Bakken drilling and completions costs,” said CEO Scott Saxberg.

“We'll be working hard with our service providers and fully expect to see rates come down even more than they already have.”

Canadian Natural Resources cuts capex by $2.4 billionOil sands player Canadian Natural Resources is the latest producer to revisit its

capital spending plan for 2015, cutting it back by $2.4 billion to $6.2 billion. That’s down 30% from the $8.6 billion budget it laid out in November 2014 and about half

the $12 billion it expected to spend in 2014. The bulk of the reductions will come via reduced drilling and related facility capital for its North

America and International conventional operations. The company will also defer $470 million in spending at its Kirby North Phase 1 in situ oil sands project, cutting spending by 82% to $105 million from its previous forecast of $575 million. The reduced budget wasn’t a complete surprise; when it released the original budget the company warned that it was prepared to cut $2.0 billion from that if conditions warranted. CNRL said the reduced spending would allow it to continue its dividend unchanged.

CFO Corey Bieber told the Globe and Mail he did not know when spending at Kirby North might be restored.

Will defer $470 million in spending at Kirby North Phase 1 project.

Viewfield Bakken & Shaunavon plays to get nearly half of spending.

Half of producers expect drilling & completion costs to fall 10% in 2015.

Continues On Pg 6

Continues On Pg 8

Continues On Pg 13

To be taxed at rate other E&P firms pay, not at prior 34% on distributions.

Cont’s On Pg 10

Valeura closes C$11MM receipts offering to fund Turkey buy.

CanadianCapital Jan. 20

www.plsx.ca/reports

Canadian energy news & analysis

InternationalDealsAccess PLS’ archive for previous A&D newsFor general inquiries, email info@plsx.com

Volume 09, No. 05 5 a&D

Date Location AbstractAfrica

Mar. 31 Guinea- Blocks B4, C4, D3, E3, F2, F3

A farmout agreement between Hyperdynamics and Sapetro will grant Sapetro a 50% participating interest in the license in exchange for paying 50% of the Fatala well cost.

Mar. 30 Nambia- PEL 37 Africa Energy has terminated farmout agreement entered into on Nov. 29 with a subsidiary of Pan-continental O&G.

Mar. 28 Tanzania- multipleOctant Energy's acquisition of Blocks 1 and L17/L18 and Tanga block in Tanzania is expected to be fi-nalized by end of April. Octant has signed a term sheet with Rosseau Asset Management to receive a $10MM fund for the acquisition. $1MM will be used to acquire Tanga.

Mar. 28 Gambia- Block A2 & A5

Erin has agreed to farm out 80% WI in blocks A2 and A5 to FAR Ltd. FAR will become operator and pay Erin $5.18MM and fund $8MM for the first exploration well.

Mar. 24 Gabon- multiple Shell has reached an agreement with Assala Energy Holdings (Carlyle Group) to sell 100% of its Gabon onshore interests for $587MM.

Mar. 23 MultipleChevron Global Energy has signed an agreement with a wholly owned subsidiary of Sinopec for the sale of a 75% interest in its assets in South Africa and a subsidiary in Botswana, subject to regula-tory approval. Consideration is around $1B.

Americas

Mar. 31 Brazil- multiple Petrobras is eyeing five assets for renewed divestment program to be formalized in next two weeks, after a court forced it to restart most of its $21B asset sale program from scratch.

Mar. 31 Brazil- ChinookSinochem is expected to open a data room for the sale of its 40% interest in Peregrino field in April. The asset was purchased by the company in 2010 for $3.07B, but the sale price is expected to come in below this number.

Mar. 30 Brazil- Tartaruga Verde & Bauna

Karoon Gas Australia remains interested in acquiring stakes in Bauna and Tartaruga Verde oilfields despite a court decision forcing Petrobras to start a new bidding process.

Mar. 24 Brazil- multipleQueiroz Galvao E&P has opened a data room to sell stakes inSEAL-M-351 and SEAL-M-428 in the Sergipe-AlagoasBbasin, PAMA-M-265 and PAMA-M-337 in the Para-Maranhao Basin, and FZA-M-90 in the Foz do Amazonas Basin.

Asia

Mar. 31 Essar Oil Purchase of Essar Oil by a consortium led by Rosneft has been delayed by a few weeks because some Indian lenders to Essar have yet to sign off on the deal.

Mar. 24 Myanmar- AD-11 & AD-9

Petronas has farmed into Block AD-11 & AD-9, taking 36%WI. The remaining shares are held by Shell (54%) and Mitsui Oil (10%).

Australia/Oceania

Mar. 31 Australia- Cliff Head

Triangle and Royal Energy have negotiated a share purchase agreement to acquire Roc Oil's 42.5% interest in the field for $3.75M. The partners will appoint Tamarind as operator of the field on behalf of the JV.

Mar. 31 Australia- ATP-855-P Icon is seeking a partner to invest in the Nappamerri Trough natural gas project.

Mar. 27 Indonesia- Block B INPEX has decided to sell its shares in INPEX Natuna to Medco. Transaction involves a 35% in the block.

FSU/Eastern Europe

Mar. 31 Sladkovsko-Zarechnoye

Neftisa has completed the acquisition of Sladkovsko-Zarechnoye from SZ RegionOil Holdings. Sladkovsko-Zarechnoye owns production licences in Sladkovsko-Zarechnoye, Yasnopolyansky and Koshinskoye fields in the Orenburg region, Russia.

North Sea/Western Europe

Mar. 31 Greece- Ioannina & Aitoloakarnania

Energean O&G has agreed to farm out 60% interest in its Ioannina and Aitoloakarnania blocks to Repsol. Repsol will also become the operator for both blocks.

Mar. 30 Reinertsen Aker Solutions will buy oil-services provider Reinertsen for US$25MM. The deal will close in 3Q17, but must be approved by Norwegian competition authorities.

See more at wire.petrowire.com Email rbenoche@plsx.com to begin your trial!

Database International M&A Activity wire.plsx.com

To learn more about PLS, call +1 713-650-1212www.plsx.comFind more on the A&D marketplace at

InternatIonalDeals 6 April 4, 2017

Sinopec acquires Chevron’s South African downstream

A yearlong divestment effort for Chevron’s downstream unit in South Africa and Botswana culminated in a US$900 million deal with Sinopec. The NOC will acquire the supermajor’s 75% equity in the South African unit, which operates a 110,000 bo/d refinery in Cape Town, owns a stake in a lubricants plant in Durban, and has one of the country’s top five retail networks. The remaining 25% is owned by employees and a consortium of local partners. Sinopec will also acquire 100% of Chevron’s retail subsidiary in Botswana.

The deal secures Sinopec’s first major refinery in Africa as the company seeks profits abroad to offset falling diesel demand in China. In contrast, South Africa’s products demand has increased nearly 5% annually over the last five years to 27 million tonnes per year. Sinopec partnered with South Africa’s state-owned PetroSA in 2012 to build a new refinery but shelved the project because of high costs. It plans to maintain Chevron’s entire local workforce and keep the Caltex brand for its 845 service stations for five or six years before rebranding.

Sinopec reportedly beat multiple suitors including Total; trading houses Glencore, Gunvor and Vitol; and Johannesburg energy and petrochem firm Sasol in bidding run by Rothschild. Chevron said it selected Sinopec because of its better offer and longer-term strategy in Africa. The supermajor listed South Africa among assets targeted for monetization as early as March 2016.

One motivation for the sale was stricter South African clean fuel standards, which Chevron estimates would require it to spend $1.0 billion on refinery upgrades. Sinopec said it plans to invest in technological upgrades for the facility.

Additional oil finds and appraisals led to a commercial declaration in 2009 and eventually increased the project’s resource estimate to 1.7 Bbo. During 2010 and 2011, Tullow increased its ownership across the project to 100% before farming down a unitized 33.33% apiece to Total

and CNOOC for a total of $2.9 billion cash.

Last August the government approved a $5.2 billion upstream development plan to produce the first 1.2 Bbo at Lake Albert, of which $3.0 billion will be spent to reach first oil. Uganda also signed off on an export route through Tanzania for the pipeline, which is expected to cost $3.5 billion and be funded by a combination of debt and equity. Lake Albert is expected to achieve first oil about three years after FID and produce 230,000 bo/d at plateau. The partners have commenced FEED work

for both the upstream and pipeline projects.Tullow will now work with Total

and CNOOC to conclude definitive sale agreements. The partial preemption by CNOOC shouldn’t affect the farm-down’s main benefits for Tullow: helping the company reduce its $4.8 billion debt and reducing its Lake Albert project costs, which should smooth the path to a speedy FID.

For China, the CNOOC acquisition in Uganda coincides with state-owned refinery Sinopec’s $900 million acquisition of Chevron’s downstream business in South Africa (sidebar). It also follows two deals totaling $2.7 billion by fellow NOC CNPC and private Chinese conglomerate CEFC China Energy in February to buy a combined 12% stake in Abu Dhabi’s onshore ADCO concession from ADNOC. Last November, Hong Kong-listed Beijing Enterprises bought into a Siberian gas field for $1.1 billion. These large acquisitions follow nearly two years of relative inactivity by China in the international deal markets, potentially indicating a return to aggressive overseas buying.

Africa

Uganda Farm-Down Supports Lake Albert Development FID

0

5

10

15

20

25

0

50

100

150

200

250

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

kbd$m

Phase 1 capex covered Phase 1 capex exposureProduc�on - Phase I Produc�on - Phase II

Net upstream & midstream development capex & produc�on

Mone�sa�on delivers ~23,000 bopd of long-term, low-cost net produc�on whilst elimina�ng

Tullow’s capex exposure

Source: Tullow Oil Feb. 8 Presentation via PLS docFinder www.plsx.com/finder

CNOOC preempts half of Tullow farm-down Continued From Pg 1

Total & CNOOC each bought one-third of Lake Albert in 2011 for $2.9B total.

All Standard Disclaimers & Seller Rights Apply.

December 31, 2014 • Volume 06, No. 15

InternatIonalCapItalServing the marketplace with news, analysis and business opportunities

TUNISIA PROJECT1-Permit. 556,481-Acres. (2,252km2)GHADAMES BASINContains One Discovery. FO8 Identified Leads: Silurian SandstoneSeismic Data Available.Also Re-Entry Project for 2-Wells. RE-ENTRYSEEKING JV PARTNER FOR -----EXPLORATION PROGRAM.Est Mean EUR: 57 MMBOEst Total In-Place Reserves: 385 MMBOExploration Term Expires April 2016.CA Required To View Data Room.CONTACT AGENT TO LEARN MOREFO 1022DV

OFFSHORE AFRICA FARMOUT1-PSC. 420,079-Acres. (1,700km2)SENEGAL & GUINEA-BISSAUAGC MARITIME COMMISSION ZONE DVContains One Identified Prospect.Shallow Water: 328 Ft. (100m)3-D Seismic Data Available. SHALLOW40% WORKING INTEREST AVAILABLEEstimated Reserves: 475 MMBOCA Required To View Data Room.CALL AGENT FOR MORE INFORMATIONDV 5234L

FEATURED DEALS

Petrobras scandal, possible default spurs lawsuits

The ongoing investigation into the Petrobras scandal could soon have implications outside Brazil. That’s because the company and its executives have been named as the target of a new, $98-billion US class-action lawsuit alleging Petrobras made material misstatements about the value of

its assets. The suit, filed in Manhattan’s federal court on behalf of the city of Providence, Rhode Island by the Labaton Sucharow law firm, covers all securities Petrobras sold since 2010: including debt issued by Petrobras International Finance Co. and Petrobras Global Finance from February, 2012.

Oil-linked contracts put many LNG projects in limboWhile BG Group celebrates the loading of the first commercial cargo at its Gladstone

LNG plant on Queensland’s Curtis Island, the current pricing climate has already altered the fate of the Pacific NorthWest LNG megaproject in Canada and may affect investment

decisions in other large-scale LNG projects worldwide. While not an oil drilling project, conventional or otherwise, the $32 billion, multi-partnered Petronas-led effort has been put on hold as the Malaysian NOC defers a final

investment decision on the gas project with a list of entirely Asian prospective customers that are used to paying for LNG based on oil-indexed contracts.

With the drop in crude, LNG prices landing in Asia have now sunk below $10/MMbtu, down from $16/MMbtu as recently as April 2014. In North America alone, nearly 40 mtpa of LNG projects are under construction with another 30 mtpa expected to reach FID in the next twelve months. In Australia, LNG breakeven prices are $13-$14/MMbtu. Globally, as with oil, LNG landed prices will adjust to market dynamics.

Oil prices the scourge of noted investors in 2014Some of the world’s most astute and followed investors couldn’t escape the grip

that a slumped oil price had on various securities during 2014, and has given the $2.8 trillion hedge fund sector its worst year since 2008. Most notable is the loss

incurred by legendary activist investor Carl Icahn courtesy of his investment in Talisman Energy, now prepping for a

Repsol takeover (see story on page 7). After accumulating more than 7% of Talisman’s shares and gaining board seats

and influence in the company, the golden Icahn touch was no match for oil prices this year—his almost $900 million investment was down $540 million until the Repsol offer and the resulting share price boost cut his losses down to $286 million. His company’s total portfolio was up 4.4% through the end of Q3, filings show. Looking at his Talisman experience, Icahn told the Wall St. Journal: “In this oil environment, I’m certainly glad a bidder came along for it.

Analysts assess project risk at various price pointsIn perhaps the most extreme prognostication to date, Goldman Sachs analysts

say $1.0 trillion in projects could fall by the wayside as $60/bbl Brent renders certain higher-priced projects around the world unprofitable. Projects aggregating $930 billion worth of future investment were no longer profitable with Brent at $70/bbl, the investment bank said, and that $10/bbl less would push that number to the $1.0 trillion

mark. The Goldman analysis looked at 400 of the world's largest new fields excluding US shale.

Led by Canadian oil sands projects at $80/bbl and certain US shale plays and other tight oil plays at $76, Energy Aspects say more than 12% of global oil production would be uneconomic if the majors were to move forward on existing projects at today’s prices. Brazil’s deepwater fields just wouldn’t be worth the expense at $75 and Mexican projects would cease to be profitable at $70. The group told the Financial Times it believes 1.5 MMbopd of the world’s planned 2016 projects are at risk at $70 and that over 1.0 MMbopd of 2017 projects are chancy at that price point.

Goldman estimates that more than $1.0T in projects are at risk at current prices.

Icahn's investment was down 40% at one point before rebounding somewhat.

LNG prices in Asia now below $10/MMbtu, disturbing to profitability.

S&P says Petrobras would be junk-rated if not for government support.

Continues On Pg 4

Continues On Pg 6

Continues On Pg 10

Continues On Pg 12

Tullow Oil launches rights offering to raise $750MM.

Next InternationalCapital

Pays $900MM, beating rival bids from Total, Glencore, Gunvor, Vitol & Sasol.

2nd long-awaited Chevron sale after Asian geothermal assets in December.

Drilling carry for Tullow smooths path to FID in 2017, first oil in 2020.

China getting more aggressive with buys in Uganda, S. Africa, UAE & Siberia.

InternationalDealsAccess PLS’ archive for previous A&D newsFor general inquiries, email info@plsx.com

Volume 09, No. 05 7 a&D

Far Ltd. grabs prospects offsetting SNE find in West AfricaHouston-based Erin Energy is farming out an operated 80% WI in its A2 and A5

blocks offshore Gambia to Far Ltd. for US$13.18 million. The licenses are adjacent to and on trend with the 641 MMbo SNE oil discovery operated by Cairn Energy off Senegal, where Far owns 15% WI. Erin will retain 20% WI in each block and be

carried by Far on $8.0 million of its costs for an exploration well slated for late 2018. Australia-listed Far will also pay $5.18 million cash up front.

A2 and A5 lie 30 km offshore in water depths ranging 164-3,900 ft and have unrisked best-estimate prospective resources exceeding 1.0 Bbo. Based on 1,504 sq km of 3D seismic, Far has mapped three potentially drillable prospects and leads similar to the “shelf edge” plays it is targeting off Senegal. The companies plan to reprocess the seismic data this year to mature the prospects.

Far managing director Cath Norman touted the emerging Mauritania-Senegal-Guinea-Bissau Basin as a “hot spot attracting the attention of the world’s oil majors,” adding, “Our large equity position gives us the option to farm down an interest before drilling.”

Total closes acquisition of East Africa retailer GAPCOIndian private-sector energy company Reliance Industries and its East African

partner Fortune Oil Corp. closed the cash sale of their jointly owned terminal and retail operator Gulf Africa Petroleum Corp. to Total after obtaining necessary

regulatory approvals and consents. Announced last May, the deal bolsters Total’s position as Africa’s leading petroleum product retailer, adding two logistical terminals in Mombasa, Kenya, and Dar es Salaam, Tanzania, and

108 service stations in Tanzania, Kenya and Uganda.Since Reliance acquired its controlling 76% stake in 2007, Mauritius-based

GAPCO has grown into one of East Africa’s largest petroleum marketing companies with an expansive retail network and 1.64 MMbbl of storage capacity. According to a Reliance filing, GAPCO had 2015 net income of US$22 million and net worth of $165 million.

CNOOC farms into W. Africa block after Woodside bows outPrivate Africa explorer Impact Oil & Gas farmed out an operated 65% stake in its

AGC Profond block offshore West Africa to CNOOC after a similar agreement signed more than a year ago with Woodside Petroleum was terminated in February. The exploration block lies in the joint development area between Senegal and Guinea-Bissau

and covers 6,700 sq km in water depths of 4,600-12,100 ft. The CNOOC deal closed March 23, leaving Impact with 20% WI. The remaining 15% belongs to Enterprise AGC, an entity jointly owned by the governments of Senegal

and Guinea-Bissau.Awarded to Impact in October 2014

and covered by 2D and 3D seismic, the block lies west of the Dome Flore and Dome Gea oil accumulations and south of Cairn Energy’s SNE and FAN oil discoveries. Similar to the Cairn discoveries, AGC Profund has prospectivity in Cretaceous deepwater clastics in the west and Jurassic and Cretaceous platform margin plays in the east.

“Impact continues to deliver on its strategy of building an attractive group of exploration assets and securing major oil companies as partners,” Impact chairman Mike Doherty said, touting CNOOC’s knowledge of Atlantic Margin conjugate basins. The Woodside deal fell apart after conditions required for closing were not satisfied. In the interim, the Australian company bought ConocoPhillips’ 35% WI in SNE and FAN for $350 million.

Cobalt’s Angolan sale effort complicated by license expiry

Houston-based Cobalt International Energy wrote off nearly US$1.7 billion for its investments offshore Angola even as it continues to work with state-held

Sonangol to extend the licenses and sell the assets. Last summer Sonangol pulled out of a deal to

buy Cobalt’s discoveries for $1.75 billion. More recently it refused to extend the licenses past YE16, complicating Cobalt’s efforts to find another buyer.

Seven pre-salt finds with estimated gross oil resources of 1.3 Bbo on Cobalt-operated blocks 20 and 21 (40% WI) have attracted the attention of supermajors, NOCs and mid-sized E&P firms. Sonangol prefers for Cobalt to present a committed buyer before it grants the extension, but the lack of an extension will likely discourage suitors from committing to a deal. While talks with Sonangol continue, CEO Tim Cutt told investors Cobalt is prepared to take the matter to international arbitration

“if an amicable solution is not reached in the near term.”

Bowleven weighs merger & farm-outs after Bomono deal

Prompted by activist investor Crown Ocean Capital, London-listed Bowleven launched a strategic review of options including a merger, corporate sale, asset sales and farm-outs. It will also consider becoming a holding company as proposed by Crown. Bowleven is focused on Camaroon with two main assets: the NewAge-operated shallow-water Etinde permit (20% WI) with multiple discoveries holding net P50 contingent resources of 58 MMboe and the gas-prospective onshore Bomono permit (100% WI).

The strategic review was announced just two weeks after Bowleven agreed to farm out 80% WI in Bomono to Victoria Oil & Gas. Bowleven will continue to operate the largely unexplored 575,300-acre block under the deal, with produced gas to be sold to a Victoria subsidiary that owns a distribution network serving industrial customers in Douala.

Africa

January 29, 2016

InternatIonal ScoutServing the international upstream industry with information, analysis & prospects for sale Volume 08, No. 02

All Standard Disclaimers & Seller Rights Apply.

CARIBBEAN LEASES 4-Key Blocks.FOR SALE OR JV DVOFFSHORE GAS PLAY2014 3-D Seismic On Blocks. CARIBBEANGas Infrastructure Nearby.Analogous To Major Fields In Trinidad.OPERATED WI AVAILABLEEstimated Recoverable: 15+ TCFDV 5350L

SOUTH AMERICA OPPORTUNITY Massive Acreage Position.SHALLOW ONSHORE2-D Seismic Defined. EXOffsets Prolific Basin.Emerging Province. Low Cost.Access To Local Markets. EXPLORATIONOPERATED WI AVAILABLEOperatorship To Buyer If Qualified.$15 Oil Breakeven Projected.EX 1033L

FEATURED DEALS

Eni’s third West Hub field on stream in Angolan deepwater Eni started up the Mpungi oil field offshore Angola in Block 15/06. Mpungi is part of

the West Hub development project, which lies 350 km northwest of Luanda, and its start-up follows that of Sangos field in November 2014 and Cinguvu field in April 2015. With three fields now producing to the N'Goma FPSO, West Hub’s output is projected to grow to 100,000 bo/d during 1Q16. The field was brought on stream on time and on budget.

Approved in 2010, West Hub taps or will tap Block 15/06’s Sangos, Cinguvu, Mpungi,

Mpungi North and Vandumbu fields. They hold a gross 3 Bbbl (24-34° API), all in Lower-Middle Miocene formations that feature normal pressure and temperature ranges. Of the oil in place, 850 MMbbl can be recovered via 21 planned wells, all producing 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.

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.

Premier expands Falklands potential with Isobel Deep re-drillOff the Falkland Islands, Premier Oil’s Well 12/20-2 re-drill confirmed the

Isobel Deep discovery as well as found pay in additional sandstones. Drilled to 3,014 m, the well intersected oil-bearing intervals in a number of reservoir sands between

2,564-2,861 m. No oil-water contact was detected by the deepened well, and Premier estimates that it has found gross oil pay of ~300 m. The partners will plug and abandon the well and combine these results with existing 3D

seismic to better estimate the size of the discovered reservoir.

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 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 hydrocarbons (26-29°API), but the well registered higher-than-expected pressure that resulted in borehole influx.

ExxonMobil leads work in hot Guyanese offshoreOffshore work is on the decline most everywhere in 2016, but Guyana is

continuing to attract interest because of ExxonMobil’s Liza-1 discovery in the Stabroek Block. The supermajor will drill four wells there this year starting in

1Q16, assisted by more than 6,000 sq km of 3D data recently collected by CGG and Fugro. In addition to determining Liza’s

size, the campaign will target the separate Ranger prospect—an Upper Jurassic-Lower Cretaceous carbonate build-up with draped Lower Tertiary clastics that could support up to 20,000 bo/d per well.

Exxon has been tight-lipped about how much oil Liza-1 found, saying only that the well intersected a 90-m pay column. However, signs indirectly point to a substantial find. The Guyanese government estimates peg the find at 700 MMbbl-1.5 Bbbl, and officials have said hydrocarbons worth 12 times Guyana’s entire economy 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 replaced by a 150,000-200,000 bo/d offshore unit.

Re-drill extends initial 23-m gross oil column to 300 m.

Start of Mpungi will bring West Hub to 100,000 bo/d during 1Q16.

Drilling program will size up Liza find in the deepwater Stabroek block.

Continues On Pg 10

Continues On Pg 6

Continues On Pg 10More listings at plsx.com/listings

Who dat?Readers will notice a change in the

mastheads for our international products. Changing the “Explorer” name to

“Scout” is the first step in bringing our international report in step with our U.S. reports, where we have been publishing Regional Scouts for three-plus years in plays like the Bakken and Eagle Ford. The new name is also an effort to dovetail our global E&P report with our

acquisition of Paris-based PetroWire last April, and PLS plans to integrate Twitter-like abstracts, original content and research archives in the perfect complement to the new (wire.PetroWire.com) and the old (traditional publishing).

Herein we are also adding new content like page 13, which shows additional permit data taken from PetroWire that might not be worthy of a story but interesting just the same.

Mardi Gras offers the promise that the good times will roll again.

Continues On Pg 3

8th successful Senegal well to boost SNE’s 641 MMbo 2C.

Next InternationalScout

Fast turnaround for Impact after year-long Woodside deal process terminated.

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InternatIonalDeals 8 April 4, 2017

Assala will also acquire Shell’s interests in onshore infrastructure including the Rabi-to-Camba pipeline and Gamba Southern export terminal. The deal includes up to $150 million in contingent payments depending on production performance and commodity prices.

Leading the new company as CEO is David Roux, a former Central and West Africa business manager for Tullow Oil. Assala head of corporate affairs Caroline Sourt hails from the same Tullow business unit, while COO

Jereome Garcia worked in Gabon and Cameroon in senior positions for European independent Perenco and state-owned Dubai Petroleum.

The acquisition, Carlyle’s biggest to date in Africa, is financed by equity from two funds: broad-based Carlyle International Energy Partners ($2.5 billion) and regional, buyout-focused Carlyle Sub-Saharan Africa Fund ($698 million). Carlyle believes Assala can cut costs and increase production from the onshore fields by dedicating more capital to infill drilling than the assets would be able to command within a larger, more diverse portfolio like Shell’s.

“Assala Energy will build on Shell’s 55-year legacy in Gabon by continuing to deliver responsible operations through best-in-class safety, environmental and social performance and transparent stakeholder partnerships,” Roux said. “We are committed to ensuring long-term, sustainable growth and creating value. Assala Energy will invest responsibly to secure and increase production levels as well as oil fields’ life.”

Shell will take a $53 million post-tax impairment for Q1 as a result of the transaction, which has an effective date of Dec. 31, 2015, and is expected to close this summer. The supermajor’s trading business will continue to own lifting rights from the assets for the next five years.

“The decision to divest was not taken lightly, but it is consistent with Shell’s strategy to concentrate our upstream footprint where we can be most competitive. Shell will continue to pursue opportunities in sub-Saharan Africa,” Shell upstream director Andy Brown said. “Together with recent divestments in the UK, Gulf of Mexico and Canada, this transaction shows the clear momentum behind Shell’s $30 billion divestment program, and it helps us to high-grade and simplify our upstream portfolio following the acquisition of BG.”

Africa

Shell Upstream Interests Being Sold To Carlyle's Assala EnergyLicense Shell

Gabon 1 SUG 2 Shell Eff.⁴

Total Gabon 3 Addax Sinopec Expiry

Atora (N) 20% 40% 55% 40% 0% 0% 2021Avocette (N) 42.50% 0% 32% 57.50% 0% 0% 2031Coucal (N) 42.50% 0% 32% 57.50% 0% 0% 2031Tsiengui-W (N) 40% 0% 30% 0% 40% 20% 2028Koula (O) 40% 0% 30% 0% 40% 20% 2028Toucan/Robin (O) 44.25% 50% 83% 0% 0% 5.75% 2023/ 2033 Rabi (O) 42.50% 10% 42% 47.50% 0% 0% 2022Bende/Totou (O) 90% 0% 68% 0% 0% 0% 2021Gamba/Ivinga (O) 100% 0% 75% 0% 0% 0% 2042

(N) – Non-Op; (O) – Operated1 Shell has a 75% equity interest in Shell Gabon, with the other 25% held by the government.2 Shell Upstream Gabon has the interests of Amerada Hess (Troika deal) and is 100% Shell-owned.3 75% of Shell Gabon's interest plus 100% of Shell Upstream Gabon's interest. ⁴ In Avocette, Coucal and Rabi: combination Total Gabon & Total Participations Petrolieres Gabon.Source: Shell March 24 press release.

PE-backed small firms hope to squeeze more value than IOCs from mature fields.

Carlyle startup buys Shell’s Gabon assets Continued From Pg 1

ADTransacTionsServing the marketplace with news, analysis and business opportunities

March 3, 2017 • Volume 28, No. 03

All Standard Disclaimers & Seller Rights Apply.

DEALS

Conoco moves forward with $5-8B divestment effort

Marketing processes have begun for multiple parts of ConocoPhillips’ US upstream portfolio as it progresses toward a $5.0-8.0 billion divestment target for 2017-2018. Having put the San Juan Basin up for sale late last year, Conoco is also actively seeking buyers for its entire Barnett position and mostly gas-weighted assets in the Williston and Anadarko basins, the Texas and Oklahoma panhandles, the Permian and Western Canada.

Conoco hired Wells Fargo to sell the San Juan assets, which cover 900,000 net acres primarily in northwest New Mexico with 2016 net production of 746 MMcfe/d (22% liquids) from more than 12,600 active wells. Bids were due Feb. 16. After meeting with management, Barclays analysts wrote in a March 1 note that the company expects to announce a sale by midyear.

Kimbell Royalty poised for multi-basin M&A post-IPOA group of major Texas investors that have been quietly buying mineral and

royalty interests in the Permian and other US onshore basins plans to dramatically increase acquisitions through their new upstream MLP vehicle Kimbell Royalty Partners. The investor group is led by KRP CEO Bob Ravnaas and Fort Worth’s Kimbell Art Foundation. KRP raised $103.5 million in a Feb. 8 IPO and will distribute net proceeds of $96 million to its sponsors, which contributed assets to and retain a

64.8% LP stake in the MLP.President and CFO Davis

Ravnaas (Bob’s son) told PLS that KRP’s sponsors made $200 million in acquisitions from 1998 to 2012 and then ramped up to ~$100 million annually from 2013 through 2016 as the expansion of horizontal development plays brought new assets to the market. Even so, he said,

“we’ve missed out on deals in the last few years because we didn’t have enough capital,” so the access to public capital provided by the MLP “will give us the opportunity to make more acquisitions.”

KRP is currently considering 15 acquisition opportunities and expects “robust deal flow going forward,” Ravnaas said.

Linn Energy spins off Berry, prepares asset salesThe largest E&P firm to fall into bankruptcy during the downturn has re-emerged as

two separate companies and is marketing non-core assets to further reduce debt. After taking on heavy debt at the height of the market to buy Berry Petroleum for $4.9 billion

in 2013, Houston-based Linn Energy filed for Chapter 11 protection in mid-2016 and has now exited the process with debt reduced by more than $5.0 billion to ~$1.0 billion. As part of the reorganization, Linn is spinning out

Berry as a private standalone company.Berry will once again be

headquartered in its historic home of Bakersfield, Calif. Led by veteran oil and gas exec and consultant Trem Smith as CEO, it will have assets in California’s San Joaquin Basin, Utah’s Uinta Basin and Colorado’s Piceance Basin—three of its pre-merger operating areas—as well as Kansas’ Hugoton field. Notably absent is Berry’s pre-merger Permian position, which Linn mostly sold to ExxonMobil and others in 2014 and 2015.

EQT’s $527MM bid beats Tug Hill for Stone’s Marcellus/UticaStone Energy sold its entire Appalachian position to EQT Corp., which won

a bankruptcy auction for the assets with a $527 million cash bid. The sale included 86,000 net acres with net production of 80 MMcf/d mostly in northern West Virginia. It was approved by the bankruptcy court Feb. 10 and closed Feb. 27. Combined with a restructuring completed the next day, the sale repositions Stone as a pure Gulf of Mexico

and Gulf Coast operator.Stone struck a deal

last October as it was heading into Chapter 11 to sell the Appalachian assets to Tug Hill for $350 million. But it opened the sale to bidding from EQT and another suitor following court orders in January, with Tug Hill’s offer as the stalking horse bid. Stone used part of the proceeds from EQT to pay Tug Hill a $10.8 million break fee and a $1.85 million reimbursement for expenses.

“With the successful conclusion of the auction, we are now poised to move forward with our pre-packaged plan, with Stone, its noteholders and the bank group all in agreement on a plan of action,” Stone CEO David Welch said.

$527 million sale is up 46% from Tug Hill's $350 million stalking horse bid.

Mineral/royalty MLP follows in Viper’s footsteps, but ventures beyond Permian.

Continues On Pg 15

Continues On Pg 16

Berry, founded in 1908 & purchased by Linn in 2013, returns home to Bakersfield.

San Juan deal expected by midyear, Barnett & Canada a few months later.

Continues On Pg 13

Continues On Pg 11

SOUTH TEXAS NONOPERATED 18-Active Wells.FRIO & ZAVALA COUNTIESBRISCOE RANCH PP5-10 PUD Wells Scheduled Near Term.10%-20% NonOperated WI; 74.5% NRI NONOPNet Production: 200 BOPD & 66 MCFDNet Cash Flow: ~$170,000/Mn (6-Mn Avg)Estimated PUD AFE: ~$4,300,000/WellPP 5953DV

NORTH TEXAS ASSETS FOR SALE17-SWD Wells. ~80,000-Net Acres.JACK, PALO PINTO & CLAY COUNTIES PPTargets: Marble Falls, Barnett, Strawn,Conglomerate & Caddo Formations. ~2,600~100% OPERATED WI; ~75% NRI BOEDTotal 2P Reserves: 82,160 MBOEAGENT WANTS OFFERS MAR 9, 2017PP 2550DV

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PLS tracks thousands of deals for sale www.plsx.com/listings

Shell markets Haynesville, nets $2.2B from Motiva split.

A&D Transactions March 24

NORTH AFRICAONSHORE EGYPT FARMOUTFormations Abu Roash & Bahariya.SEEKING FARMOUT PARTNER PPUP TO 50% INTEREST AVAILABLEAvg. Production: ~1,100 BOPD ~1,100New 26km 6-Inch Pipeline For Exports. BOPD2P Gross Reserves: 6.2 MMBOEP50 Gross Resources: 1.9 MMBOE2C Contingent Resources: 13.5 MMBOECONTACT BLOCK OWNER FOR INFOPP 2108DV

TUNISIA FARMOUT OPPORTUNITYMULTI-ZONE POTENTIALTriassic, Silurian, Ordovician & Cambrian. PP2D Seismic Data Available.40% OPERATED WI AVAILABLE FARMOUTQ1 2015 Average Production: 68 BOEDP10 Recoverable Resources: 93 MMBOCALL CONCESSION OWNER FOR TERMSPP 5156FO

TUNISIA FARMOUT OPPORTUNITYSilurian & Devonian Resource Play.Upside Potential In Triassic & Ordovician. PP3D Seismic Data Available.40% WORKING INTEREST AVAILABLE 27Q1 2015 Production: 27 BOED BOEDDevonian Ouan Kasa Production.Est Recoverable Reserves: 777 MMBOCALL CONCESSION OWNER FOR TERMSPP 5091FO

NORTHERN EUROPEUK STRATEGIC ALTERNATIVES55-Onshore Licences.UNITED KINGDOM & SCOTLAND PPWEALD, GAINSBOROUGH TROUGH--BOWLAND & MORAY FIRTH BASINS >2,500SEEKING STRATEGIC ALTERNATIVES BOED2015 Avg Net Production: 2,570 BOEDNet 2P Reserves: 13.33 MMBOEPP 1340CO

UNITED KINGDOM COMPANY SALEConventional & Unconventional Prospects.3D Shows Crest Seismic Amplitude.Suggests Improved Reservoir Potential. CO100% OPERATED WI AVAILABLEAppraisal Well Drilled Q! 2016.Remaining 2P Reserves: ~700 MBO ONSHOREPossible 3P Reserves: ~2.1 MMBOFavourable Fiscal Terms.CORPORATE SALE OF ALL ASSETSCALL AGENT FOR ADDITIONAL INFOCO 2017PP

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Volume 09, No. 05 9 a&D

PGNiG joins Aker BP in Storklakken oil find offshore NorwayAker BP reduced its stake in the 2010 Storklakken oil discovery offshore Norway,

selling 35% WI in North Sea license PL460 to Poland’s state-controlled PGNiG. Storklakken is planned for development as a subsea tieback to the Alvheim FPSO with first oil in 2020. Aker BP continues to operate the license with 65% WI. The deal is

part of PGNiG’s long-term strategy to export Norwegian gas back home via new gas transport infrastructure to be built by pipeline operators in Norway, Denmark and Poland within the next five years.

The acquisition provides PGNiG with estimated net recoverable resources of 3.85 MMboe and deepens the Polish company’s relationship with Aker BP, which already operates its two largest producing fields in Norway: nearby Vilje (24.24%) and Skarv in the Norwegian Sea (11.92% WI). PGNiG will fund the acquisition and future Storklakken capex with operating cash flow from its Norwegian properties, which it expects to generate net production of 20,000 boe/d (60% oil) this year. PGNiG president Piotr Wozniak said the company anticipates a “short payback period from this investment.”

Ineos buys Forties pipeline from BP for $250 millionBP is selling the North Sea’s largest pipeline to petrochemical producer Ineos

for up to US$250 million, consisting of $125 million up front plus earn-out payments of up to $125 million over the next seven years. In operation since 1975, the Forties pipeline (100% WI) transports 450,000 bo/d from ~85 fields, representing ~40% of

UK oil production. It stretches 105 miles from the unmanned Forties Unity platform in the

UK North Sea to an onshore terminal near Aberdeen, then 130 miles onshore to the Kinneil terminal near Ineos’ Grangemouth oil refinery. The deal will not affect BP’s rights to capacity on the Forties pipeline, which can carry up to 575,000 bo/d.

Negotiations started about a year ago but stalled last summer over the price. BP sold its Forties oil field to Apache in 2003 for US$630 million and the Grangemouth refinery to Ineos in 2005. In 2015, BP received $486 million from private equity house Antin Infrastructure Partners for its 36% stake in another major UK North Sea pipeline, the 404-km, 1.7 Bcf/d Central Area Transmission System.

Ineos acquires 15 onshore UK licenses from Engie

As part of a long-term plan to move away from upstream oil and gas, French utility Engie sold its minority interests in 15 onshore UK licenses to Ineos. The

Swiss petrochem firm already owns stakes

in seven of the licenses and operates three; the other eight will complement its existing footprint in Yorkshire, Cheshire and East Midlands. Eight of the acquired licenses are operated by IGas Energy and four by Cuadrilla.

Engie is moving away from fossil fuels toward low-carbon operations, in part to reduce its exposure to commodity price fluctuations. The UK onshore sale comes less than three months after it sold part of its interest in seven Norwegian Sea licenses containing developed fields and discoveries to partner DEA. In December, Engie sold its Polaniec power plant in Poland (100% WI) to state-owned utility Enea for US$160 million. Divesting the 1.9 gigawatt coal-fired plant will reduce Engie’s CO2 emissions by 6.2%.

Decipher acquires Atlantic’s Orlando oil development

North Sea explorer Atlantic Petroleum agreed to sell its 25% WI in the Orlando development offshore the UK to Decipher Energy for a share

in the proceeds from future production. Under the deal, it will receive 2% of production

revenue until Orlando has produced 5.0 MMbo, after which its share will increase to 4.35%. The first US$1.0 million will be paid up front at closing.

Iona Energy operates Orlando and owns the remaining 75%. Discovered in 1988 northeast of Shetland in the Viking area of the UK North Sea, Orlando holds an estimated 8.5-15.3 MMbo recoverable and is expected to produce at an initial rate exceeding 10,000 bo/d with first oil in 2018. Atlantic closed the sale of its Norwegian business earlier this year, saying it would focus on Orlando and its Kells discovery off the UK going forward.

North Sea & Western Europe

BP growth portfolio in UK has moved toward West of Shetland area.

PGNiG To Increase Production Outside Poland ~140% By 2022

41%

2017

30 Poland

Abroad9

mboe

33

22

55

39

2022

What is our objective?Increasing total output of hydrocarbons by 41%.

How to achieve it?We will increase the annual output of hydrocarbons in Poland by 10%.

We will more than double the annual output of hydrocarbons abroad (mainly in Norway and Pakistan).

Additionally, after 2022 we intend to increase production in Norway to 2.5 bcm per year (equity gas for the Norwegian Corridor).

Source: PGNiG March 17 Presentation via PLS docFinder www.plsx.com/finder

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InternatIonalDeals 10 April 4, 2017

OCEANIA/SOUTH PACIFICNEW ZEALAND OPPORTUNITY1-Producing Well & 3-Shut In Wells. RESEEKING JV PARTNER FOR FARMOUTComb Est. In-Place Reserves: 7.4 MMBO OFFSHORECONTACT PERMIT OWNER FOR INFORE 1284FO

SOUTH AMERICABRAZIL SHALLOW WATER ASSETS9-Concessions.SHALLOW WATER ASSETS PPOil & Natural Gas Exploration Fields.WORKING INTEREST FOR SALE FOR SALEAvg. 2015 Production: 13,000 BOEDCONTACT INVESTOR RELATIONS DEPTPP 1102

SOUTH-CENTRAL ASIABANGLADESH PROPERTYPRODUCING ASSET PPAnticline W/ Hydrocarbons Trapped----In Multiple Reservoirs. 110NONOPERATED WI AVAILABLE MMCFDProduction Between 105 - 110 MMCFDCONTACT BLOCK FOR INFOPP 2985FO

PAKISTAN PORTFOLIO SALE6-Gas Fields.ONSHORE GAS PRODUCING FIELDSUpside Potential Includes: Infill Drilling- PPFacilities Optimization, Exploration Targets-And Material Shale Gas Opportunities. FORVARIED NON-OP WI FOR SALE SALENet 1H 2015 Production: 69 MMSCFDNet 2P Gas Reserves: 102 BCFCONTACT AGENT FOR MORE INFOPP 1167CO

SOUTHEAST ASIAINDONESIA OPPORTUNITYOpportunity To Create Foothold In On Of---Asia’s Most Significant Provinces. PPTargeting 20,000 BOEPD By 2018 -----From The Indonesia Portfolio. SEEKING JV PARTNERS2016 Peak Production: 9,500 BOPDCONTACT AGENT FOR MORE INFOPP 2859DV

SOUTHEAST ASIATHAILAND OPPORTUNITYPRODUCING ASSET PP4-Oil Discoveries.WORKING INTEREST FOR SALE PATTANIProduction Began August 2015.CONTACT BLOCK OWNER FOR INFOPP 1801FO

THAILAND PRODUCING PROPERTYOil & Gas Discoveries. PPSeveral Prospects & Leads Identified.NONOP WORKING INTEREST AVAIL PATTANIProduction Began July 2015.CONTACT BLOCK OWNER FOR INFOPP 2986FO

SOUTHERN AFRICASOUTH AFRICA DEVELOPMENT1 Exploratory Well, 5 Appraisal Wells.Water Depth: 118m to 400m PP2D & 3D Seismic Data Available.10% EQUITY IS AVAILABLE NONOPSEEKING JV PARTNER FOR FARMOUTResource Potential: 748 BCFCONTACT AGENT FOR MORE INFOPP 1662FO

EUROPEGERMANY COMPANY SALE7-Production & 6-Exploration Licences. COWORKING INTEREST FOR SALE FOR SALEDISSOLUTION PROCESS TO BEGINCO 1560

HUNGARY OPPORTUNITYOne Producing Field Discovered In 2008. DVSEEKING JV PARTNER FARMOUTCONTACT EXPLORATION MANAGERDV 1562FO

CENTRAL ALBERTACENTRAL ALBERTA ASSET SALE47,616-Gross Acres.KAYBOB SOUTH, VIKING-KINSELLA& WASKAHIGAN AREAS. PPCardium, Glaucontice, Mannville &Montney Zones. 47,600High Working Interest For Sale GROSSFebraury 2017 Production: 628 BOPD ACRES2017 Net Operating Income: $11 MMProved Reserves: 2,481 MBOECONTACT ADVISOR FOR INFOPP 13009

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Volume 09, No. 05 11 a&DThe company is also acquiring adjoining exploration areas with multiple undrilled

prospects, the Jotun A floating production facility and Exxon’s Sandnes offices, near Stavanger. Point says it will absorb ~300 Exxon employees with no layoffs and plans to make material investments to extend field life and maximize recovery.

Norwegian financial daily Dagens Naeringsliv said Point is paying nearly NOK8.0 billion ($935 million), citing unnamed

sources. This is close to the $1.0 billion estimate that multiple media outlets have given for the assets in recent months amid reports that Exxon was in talks for a sale.

HitecVision formed Point in 1H16 by merging three of its Norwegian E&P companies: Pure E&P (previously Rocksource), Spike Exploration and Core Energy. The company has more than 70 licenses with production mainly from Brage, Snore, Hyme and Boyla fields and a substantial inventory of development-stage assets, which it believes will allow it to grow pro forma production organically by one-third to 80,000 boe/d by 2022. CEO Jan Harald Solstad said the company plans to invest more than NOK20 billion

($2.35 billion) on the NCS over the next five years.

“The combined company will build on ExxonMobil Norway’s world-class operating organization, Point Resources’ excellent exploration track record and HitecVision’s financial strength and M&A capabilities, creating a strong platform for further growth,” Solstad said. “The two portfolios are highly complementary with strong near-term production and a portfolio of top-tier, low-cost development projects.”

Closing is expected in Q4 pending regulatory approval and license partner consents. Exxon will retain a hefty non-op presence producing 168,000 boe/d (61% liquids) from more than 20 properties including the Statoil-operated Snorre oil field (11.58% WI) and Shell-operated Ormen Lange (6.34%).

Exxon is the only IOC with a complete oil and gas value chain in Norway, but it agreed in February to sell its retail business there—the country’s third largest—to Dublin-based oil and LPG supplier DCC Energy for NOK2.43 billion ($294 million). It also owns the 116,000 bbl/d Slagen refinery.

RockRose working on 3 UK buys totaling 1,400 boe/d

London startup RockRose Energy signed a conditional agreement to acquire privately held Egerton Energy Ventures, which has non-op interests in two small gas fields in the southern UK North Sea. Egerton owns 27.8% WI in Galahad and 8.33% WI in Mordred, both of which are operated by European independent Perenco with combined gross production of ~2.0 MMcf/d.

RockRose is also moving toward closing of a deal signed last December for the acquisition of Maersk Oil’s 5.16% WI in the offshore Scott oil and gas field and 2.36% in neighboring Telford field, both operated by CNOOC subsidiary Nexen in the UK North Sea’s Central Graben area. However, multiple participants in the Perenco-operated Wytch Farm oil field onshore southern England have exercised preemptive rights to acquire Maersk’s 7.43% WI there, which was originally included in the deal. Maersk will pay RockRose to exit Scott and Telford as part of a wider divestment campaign.

In addition, RockRose signed non-binding heads of terms to acquire a subsidiary of a trading company with minor stakes in southern UK North Sea gas fields and significant tax assets. If all three deals close, they will provide combined net production of 1,400 boe/d.

North Sea & Western Europe

Pre-Exxon Point Has Assets In Four Core AreasArea Operator Asset highlights

Njordarea

oHyme was discovered in 2009 and developed as a fast track subsea tie-back to the Njord A platform, before starting production in 2013

oBauge was discovered in 2013 and is planned developed as a subsea tie-back to Njord with first oil in 2020

oPil& Bue was discovered in 2014 and is one of the most significant discoveries on the NCS since 2011. First oil planned for 2021

oSeveral low risk near-field exploration opportunities

TampenNortharea

oSnorre was discovered in 1979 and production started in 1992. Snorre is one of top 10 NCS fields by production and top 3 in terms of remaining oil reserves

oGarantiana was discovered in 2012 and first oil is planned 2021

Bøylaarea

oBøyla was discovered in 2009 and has been developed as a fast-track subsea development tied back to the Alvheim FPSO. Bøyla production started in 2015

Bragearea

oBrage is located in the North Sea, between the Troll and Oseberg fields oBrage was discovered in 1980 and production started in 1993oBrasse discovery made in June 2016, located 13 km from Brage with

82 mmboe of resources (Point 50% WI) oSeveral low risk near-field exploration opportunities

Source: Point Resources March 23 Presentation via PLS docFinder www.plsx.com/finder

Point Resources buys Exxon’s Norwegian E&P Continued From Pg 1

Step change for HitecVision in terms of scale of assets under its control.

Exxon cash flow & expertise to support Point’s development inventory.

RockRose formed in late 2015 by iGas founder & ex-CEO Andrew Austin.

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InternatIonalDeals 12 April 4, 2017

Q1 had the highest quarterly international value since 2Q14, excluding 4Q16, which was skewed by two deals exceeding $10 billion apiece in Russia, and 2Q15, which was dominated by Shell’s $82.7 billion BG acquisition. Unlike those past quarters, Q1 had no deals above $4.0 billion but 16 above $100 million (4Q16 had 13; 2Q15 had six).

Q1 also saw the return of dealmakers that had been inactive in the upstream market. On the sell-side, the supermajors executed upstream asset sales after focusing their multibillion-dollar divestment programs last year on less price-sensitive downstream

assets. Shell sold more than half its UK North Sea production for $3.0 billion, its stake in a major Thai gas field for $900 million and its onshore operations in Gabon for $872 million—even as it let go of the lion’s share of its Canadian E&P business for $8.5 billion. Total also sold properties in Gabon for $350 million and shed non-op Norwegian fields for $300 million.

On the buy-side, the most impactful change was the return of Chinese companies to the market. For years state-owned CNPC, CNOOC and Sinopec had reliably acquired stakes in large-scale projects worldwide to feed China’s growing appetite for oil and gas, but these companies had been largely inactive overseas in the past two years. In recent months they have made a comeback, joined by a handful of large private-sector Chinese companies that had tested the waters during the downturn and

are now leaping in.In February, CNPC and private

Chinese conglomerate CEFC China Energy spent $2.7 billion for a combined 12% stake in Abu Dhabi’s prolific onshore ADCO concession. Also, CNOOC stepped in to pre-empt half of Tullow Oil’s Uganda farm-out to Total for $450 million (PG. 1) and farm into a highly prospective license off West Africa with privately held Impact Oil & Gas (PG. 7). In Q4, Hong Kong-listed Beijing Enterprises bought into a Siberian gas field for $1.1 billion.

Private equity is also emerging as an aggressive international buyer after playing a major role in the US market for years. Two of Shell’s big upstream divestments were to private equity-backed companies: EIG-backed Chrysaor in the UK North Sea and Assala Energy, a newly formed portfolio company of The Carlyle Group, in Gabon (PG. 1).

Global Marketplace CENTRAL ALBERTASOUTH ALBERTA SUB PKG 16,240-Gross Acres.RED DEER AREA. T36-41.Glauconitic, Mannvilla, Nordegg, Ellerslie, PPCardium, Ostracod, Comingled, SSPK,HSCN, NRDG, PKSK & Rock Creek ZonesVarying NonOperated WI AvailableNovember 2016 Production: 60 BOED 60Net Operating Income: $26,000/Mn BOEDGross Proved Reserves: 113 MBOEGross 2P Reserves: 167 MBOETotal 2P PV10: $1,748,000AGENT WANTS OFFERS APRIL 27, 2017PP 13961DV

EAST ALBERTAWESTERN ALBERTA PROPERTIES28,064-Net Acres. 2-Hz Wells Drilled.VALHALLA & PROGRESS AREA.Production From Montney/Doig Resource.Middle & Upper Montney, Basal Doig, --- PP--And Upper Charlie Lake Formations.>80 Horizontal Well Potential. ~255WORKING INTEREST FOR SALE BOPDNet Production: 256 BOPD2016 Net Operating Income: $150,000/MnProgress Total Proved: 1,410 MBOEProgress Total Plus Probable: 3,665 MBOEAGENT WANTS OFFER APRIL 6, 2017PP 13032DV

WEST ALBERTAWESTERN ALBERTA PROPERTY5-Key Areas.PROGRESS/VALHALLA, SPIRIT RIVER,POUCE COUPE, BONANZA & JOSEPHINE PPDoig, Charlie Lake, Montney, Halfway &Boundary Lake UpsideVarying Working Interest Available 190Aggregate Production: 190 BOED BOEDExpected 2017 Income: ~$123,167/MonthTotal Proved Reserves: 787 MBOETotal Proved PV10: $6,942,000AGENT WANTS OFFERS APR 6, 2017PP 13658DV

NORTHERN ALBERTAALBERTA RECEIVERSHIP PROCESS17-Key Areas. 259,136-Gross Acres.NORTHWEST ALBERTA AREAS.Low Decline Oil & Gas Development COOpportunties.~85% Working Interest For Sale ~260,000Dec 2016 Production: 1,223 BOPD GROSS2016 Net Operating Income: $1.4 MM ACRESProved Reserves: 3,542 MBOE2P Reserves: 4,991 MBOEAGENT WANTS OFFER APRIL 20, 2017CO 13037PP

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Top 10 International Upstream Deals In Q1Date Buyer Seller US$MM Type Location

01/31/17 Chrysaor Shell $3,024 Property UK

03/09/17 ExxonMobil Eni $2,800 Property Mozambique

03/05/17 OMV Uniper $1,850 Property Russia

02/19/17 CNPC ADNOC $1,770 Property UAE

02/06/17 Delek Group Ithaca Energy $1,004 Corporate UK

01/31/17 Kufpec Shell $900 Property Thailand

01/09/17 Total Tullow Oil $900 Farmout Uganda

02/21/17 CEFC China ADNOC $888 Property UAE

03/24/17 Assala Energy Shell $872 Property Gabon

03/17/17 CNOOC Tullow Oil $450 Farmout Uganda

Total $14,458

Note: Based on deals with disclosed values. Source: PLS Global M&A Database

Supermajors return to the upstream market on sell-side, China on buy-side.

PE-backed startups stepping up to take over mid-life fields & extend production.

Robust international M&A in Q1 Continued From Pg 1

Continues On Pg 13

InternationalDealsAccess PLS’ archive for previous A&D newsFor general inquiries, email info@plsx.com

Volume 09, No. 05 13 a&D

With a management team drawn from European independent Perenco and a focus on extending production from mid-life fields, Assala follows a similar blueprint to Warburg Pincus’ Trident Energy, launched at YE16.

The North Sea turnover from supermajors and state-run energy giants to large independents continues to unfold. Chrysaor will emerge from the Shell deal as the UK’s

largest independent. That followed the 4Q16 sale of state-run Austrian oil and gas company OMV’s UK North Sea business to private startup Siccar Point Energy for $875 million. This was the second acquisition for Siccar

Point, which launched in Aberdeen two years ago with a $500 million initial commitment from Blackstone Energy Partners, Blue Water Energy and Singaporean sovereign wealth fund GIC.

Publicly traded North Sea independents are also experiencing consolidation, highlighted by Ithaca Energy’s acceptance of a $1.0 billion takeout offer by Israel’s Delek Group, already a 19.7% shareholder. In a late March conference call, Delek management said it has a nearly €800 million ($850 million) war chest at its disposal and is eyeing additional acquisitions in the North Sea as well as North America.

Africa and the North Sea were the busiest regions during Q1 with values of $5.2 billion and $4.6 billion, respectively. The African total was driven by the long-

awaited announcement of ExxonMobil’s $2.8 billion buy-in to Eni’s gas discoveries offshore Mozambique, which had been in

the works for over the year. Deal value was well distributed regionally with upstream totals also exceeding $1.0 billion in the Middle East ($2.7 billion), the former Soviet Union ($1.9 billion) and Asia ($1.2 billion)—another indication of a robust market recovery.

Looking forward, many producers still have large remaining divestment programs to work through, and for companies such as Shell and ConocoPhillips these efforts are likely to focus on international assets now that they have largely monetized their Canadian oil sands positions. (Conoco exceeded its $8.0 billion target with a $13.3 billion Canadian sale but is still working on a phased deepwater exploration exit.) Combine this with a strong lineup of aggressive buyers and improving access to capital, and there is ample reason to expect further growth in the international deal market throughout 2017.

Global Marketplace SOUTHERN ALBERTASOUTHERN ALBERTA ASSET SALE116,406-Gross Acres.JOFFRE, DELBURNE &MAPLE GLEN AREAS PP30% NONOP WI AVAILABLE FOR SALEOct 2016 Net Production: 582 BOPD2016 Net Operating Income: $1.9 MM NONOPProved Reserves: 2,748 MBOE2P Reserves: 3,543 MBOEExisting Transportation & FacilitiesAGENT WANTS OFFER APRIL 13, 2017PP 13043

MULTIPLE ALBERTAALBERTA CORPORATE DIVESTITURE3-Producing Wells. 4-NonProducing Wells.HARMATTAN, PEMBINA, LEDUC------ AND RED EARTH AREAS. COCardium, Mannville, Nisku And------Slave Point Formations. ~34OPERATED & NONOP WI FOR SALE BOEDRecent Net Production: 34 BOEDDeemed Net Asset Value: $321,137CONTACT AGENT FOR UPDATECO 29901PP

SASKATCHEWANSW SASKATCHEWAN PROPERTY6,463-Gross Acres. 102-Wells.SHACKLETON AREA. T21-22.Milk River Natural Gas. PP99.2% OPERATED WI AVAILABLENet Production: ~2,778 MCFD ~2,778Recent Operating Income: $50,000/Mn MCFD2016 Proven Reserves: 10,697 MMCF2016 2P Reserves: 14,210 MMCFNet Proven PV10: $5,521,000AGENT WANTS OFFERS APRIL 6, 2017PP 13035

BRITISH COLUMBIAALTARES & ATTACHIE AREAS~42-Net Sections. ~26,506-Net Acres.Montney Formation PotentialUpside In Doig & Gething - CO-- CBM FormationsCOMPANY FOR SALETotal Proved Reserves: 1,764 MBOE STRATEGICTotal Proved PV10: $154,000,000 ALTERNATIVES2 Gas Plants, Transportation --- & FacilitiesCONTACT AGENT FOR UPDATECO 13228L

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Robust international M&A in Q1 Continued From Pg 12

Global Upstream Deal Values 2014-1Q17 (US$B)2014 2015 2016 1Q16 2Q16 3Q16 4Q16 1Q17

US $97.86 $31.77 $70.08 $5.67 $17.79 $20.44 $26.17 $24.65

Canada $24.48 $11.17 $16.16 $5.63 $3.68 $2.70 $4.15 $24.95

Intl. $56.84 $107.18 $51.47 $6.30 $3.76 $8.35 $33.06 $15.87

Africa $7.73 $4.43 $3.97 $0.28 $0.05 $0.59 $3.05 $5.21

Asia $9.58 $3.26 $1.62 $0.02 $0.24 $0.03 $1.34 $1.19

Europe $11.63 $0.52 $0.63 $0.48 $0.06 $0.04 $0.05 $0.01

FSU $5.39 $8.99 $27.12 $3.36 $0.02 $1.04 $22.70 $1.85

Mideast $1.01 $0.24 $2.80 $0.00 < $0.00 $0.52 $2.28 $2.66

North Sea $4.64 $3.36 $4.60 $1.22 $2.33 $0.12 $0.93 $4.58

Oceania $5.42 $3.05 $3.13 $0.01 $0.03 $2.90 $0.19 $0.01

Latin Am. $11.43 $83.33 $7.59 $0.93 $1.03 $3.11 $2.53 $0.37

Global $179.18 $150.12 $137.71 $17.61 $25.22 $31.49 $63.39 $65.47

Source: PLS Global M&A Database www.plsx.com/ma

Large private & public independents consolidating North Sea positions.

Ongoing divestment, strong buyers & access to capital spell strong M&A in 2017.

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InternatIonalDeals 14 April 4, 2017

MULTIPLE AREASWESTERN CANADA ASSETS73,326-Net Acres.ALBERTA & SASKATCHEWANProducing From Mannville Group PPMajority Of Acreage Undeveloped.306 Drilling Locations Identified.400 Recompletion & Ractivation Locations93% OPERATED WORKING INTEREST ~2,000Current Production: 2,063 BOED BOEDEst 2017 Cash Flow: $1,450,000/MonthTotal Proved Reserves: 5,101 MBOETotal Proved PV10: $80,117,000CONTACT AGENT FOR UPDATEPP 13187DV

NORTH LOUISIANANORTH LOUISIANA SALE PKG 26-Wells. 3,235-Net Acres. 19-HBP Units.HAYNESVILLE, CV, HOSSTONBienville, Caddo, DeSoto & Red River PPHigh Gas Content. OverPressured.80 Potential Locations. Plus ReFracs28-PUD Locations.Upside In Extended Laterals & ReFracs ~400NonOperated WI Available BOEDRecent Production: ~1,900 MCFDNet Proved Reserves: 600 BO & 100.5 BCFNet Proved PV10: $65,270,67011-ReFracs: $900,000-$2,800,000 EachPP 9051DV/RE

SOUTH TEXASATASCOSA CO., TX PROPERTY38-Active Wells. 9-Injection Wells.CHARLOTTE WATERFLOOD FIELDNavarro Formation PPOperational & Development Opportunities95% OPERATED WI; 81-84% NRI ~110Net Production: 93 BOPD & 99 MCFD BOEDGross Prod: 114 BOPD & 120 MCFDQ4 2016 Avg Net Cashflow: $63,560/MnAGENT WANTS OFFERS APR 18, 2017PP 2811WF

MULTISTATE PERMIANWEST TEXAS SALE PACKAGE49-Total Properties.PERMIAN BASINMultiple Counties PP4 Properties In Pecos County ~110Varying Operated & NonOperated WI BOEDGross Prod: 63 BOPD & 291 MCFDCONTACT AGENT FOR MORE INFOPP 9686

PERMIAN / NEW MEXICOLEA CO., NM SALE PACKAGE66-Total Wells.PERMIAN BASIN21-Producing. 11-Injections. 34-ShutIn. PPRhodes Waterflood PoolWaterflood Conformance. ~50Varying OPERATED WI, ORRI & RI BOED6-Mn Gross Prod: 43 BOPD & 15 MCFD6-Mn Avg Net Income: $16,225/MonthAGENT WANTS OFFERS APR 12, 2017PP 2386RR

PERMIAN / WEST TEXASIRION CO., TX PROPERTY2-Active HZ Wells. 2,900-Gross & Net Acres.PERMIAN BASIN - WOLFCAMPWolfcamp B Bench PPWolfcamp A, B, C & Ellenburger Potential6 Sq. Miles Of Proprietary 3D Seismic ~220100% OPEARTED WI; 74-83.375% NRI BOEDNov 2016 Net Production: ~220 BOEDGross Prod: 90 BOPD & 1,114 MCFDNov 2016 Net Cash Flow: ~$157,000/MnCONTACT AGENT FOR UPDATEPP 9201DV

REEVES CO., TX PROPERTY1-Producing Well. ~3,108-Net Acres.WEST TOYAH UNDEVELOPED LEASEPERMIAN BASIN PP512-Net Acres Held By Production. ~120OPERATED WI AVAILABLE BOEDGross Prod: 28 BOPD & 568 MCFDCONTACT AGENT FOR MORE INFOPP 9170DV

OKLAHOMACENTRAL OKLAHOMA ASSETS59,746-Net Acres. 127-Sections. 4-SWD.ANADARKO BASIN - STACKGarfield & Kingfisher Counties PPOsage, Meramec & Oswego FormationsTitle Opinions Covering 100% Of Acreage ~2,20074% OPERATED WI AVAILABLE BOEDCurrent Net Production: ~2,200 BOEDPV10: >$50,000,000AGENT WANTS OFFERS MAY 3, 2017PP 2000DV

COLORADODJ BASIN NONOP ASSET SALE~3,800-Net Acres. 7-Producing Wells.ADAMS & WELD CO., CO PPSouth Wattenberg Brighton AreaCodell & Niobrara A, B & C5 Wells Being Completed - 940-- & Online Q2 2017 BOED450+ Gross Potential Locations.NONOPERATED WI AVAILABLENet Production: 940 BOED (70% Oil)AGENT WANTS OFFERS EARLY MAY 17PP 2351DV

WYOMINGWYOMING NONOP SALE PACKAGE3-Lots. ~270-Net Acres.POWDER RIVER BASINConverse & Natrona Counties PP6 Permitted HZ Wells In Frontier Formation6 Permitted Wells In --- Frontier & Niobrara ~290Varying NonOperated Working Interest BOED6-Mn Gross Prod: 228 BOPD & 348 MCFDOperated By: Helis Oil & Gas Company12-Mn Avg Net Income: $3,003/MonthAll Acreage Expires October 2024.AGENT WANTS OFFERS APR 13, 2017PP 2544L

MULTISTATEMULTISTATE ROYALTY SALE114-Active Wells. 11-DCUs. +/-300-NMA.TEXAS, OKLAHOMA, NORTH DAKOTA& GULF OF MEXICO RRMultiple Productive & Additional Zones30+ PUD Locations Identified. NONOPROYALTIES AVAILABLE FOR SALE62% Oil, 27% Gas & 11% NGL’sCurrent Cash Flow: $18,200/monthOperators: Marathon, Oasis, Continental,EOG, Walter, White Star & Penn VirginiaCONTACT SELLER FOR MORE INFORR 9511

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InternationalDealsAccess PLS’ archive for previous A&D newsFor general inquiries, email info@plsx.com

Volume 09, No. 05 15 a&DExxonMobil (XOM:NYSE; US$82.02–March 29; Sell)

Exxon Norway sale: Disposing low reserve life assets so we’d expect a low $ per flowing barrel. Deal makes sense as buyer can offset tax from assets bought with its new developments given Norway’s tax regime. This continues the trend of

majors paring back on the North Sea and PE buying assets. … We estimate XOM retains net ~130kboe/d (60% liquids) in Norway.

No price was announced, we’d assume a $500-750mm transaction which implies ~$6-9/boe or $9-14 per kboe/d based on recent deals, the fields’ low reserve life and tax benefit against its development-heavy portfolio (Pil & Bue, Bauge, Garantiana and Brasse projects). The company plans to deploy NOK 20B (~$2.5B) over the next 5 years taking the new entity to 80kboe/d and 350mmboe of 2P+2C by 2022. —Tudor, Pickering, Holt & Co.

Cobalt International Energy (CIE:NYSE; US$0.42–March 14; Hold; PT: $1.25)Angola assets in dispute. CIE recorded an impairment on its Angolan assets

for failure to make sufficient progress in development. Sonangol has yet to provide extensions on Blocks 20/21, which CIE believes is impeding its ability to negotiate a potential sale. While CIE continues to market the assets, it has filed a Notice of Dispute against Sonangol and expects to resolve the matter

through negotiation or arbitration. … We are maintaining our Hold rating pending greater clarity on future liquidity and the outcome of the dispute with Sonangol in Angola. —Stifel

Petrobras (PBR:NYSE; US$9.37–March 15; Hold)Company allowed to sell assets again but has to restart sales process. Brazil’s

federal audit tribunal (TCU) has removed the suspension order which had prevented PBR from continuing with its divestment programme, but Petrobras must restart the

sales process on all the assets with the exception of the sale of the St Malo field in the US Gulf of Mexico and Bauna/

Tartuga Verde fields to Karoon (although still blocked by a separate injunction by oil worker unions). The other assets in the disposal programme must be sold under new a new methodology so any existing sale processes must be restarted—this means that it will likely take some time for further disposals to be announced putting strain on PBR’s finances in the interim. Petrobras reaffirmed it divestment target of $21 billion for 2017/2018. —Tudor, Pickering, Holt & Co.

ConocoPhillips (COP:NYSE; US$45.95–March 29; Overweight; PT: $62)Here comes the cash. With the $10.6 billion in cash proceeds, COP plans to retire

~$7 billion worth of company debt by November of this year, already bringing it in-line with what was its medium-term target debt level. In the near term, this paves the way

for a doubling of the buyback authorization to $6 billion and tripling the 2017 program to $3 billion, as well as savings of ~$300 million in interest

expense. ... We also believe the transaction unlocks value that COP would have been hard-pressed to otherwise realize. Not only did the FCCL assets have a lower cash margin than the remainder of the company’s portfolio, and thus should be accretive to per unit profitability, but it was a poorly guarded secret that the company was less intent on allocating capital to these assets, and so they were clearly more valuable on the market, in our view. —Barclays

What the Analysts Are Saying About A&D ■ Cairn India hired Melody Meyer

and Atul Gupta as senior oil and gas advisors to direct the company’s oil

production growth effort. Meyer has 37 years of

experience with Chevron, most recently as president of the supermajor’s Asia-Pacific unit. Gupta’s 36-year career has included leadership roles including CEO at multiple oil and gas companies and, more recently, advising private equity firms.

■ Egypt’s oil ministry named new leadership to state-owned oil company EGPC and gas company EGAS. Abed Ezz el-Regal will take over as head of EGPC from Tarek al-Hadidi, who was appointed last April. At EGAS, Osama Al Bakly will replace Mohamed al-Masry.

■ Petrobras’ board approved CEO Pedro Parente’s reelection for a new two-year term. Parente was initially elected last May to head the state-controlled Brazilian producer, replacing Aldemir Bendine.

■ Sinopec named Li Yunpeng as a group VP and deputy secretary of the Chinese state-owned refiner’s party committee. Before joining Sinopec, Li worked from 1998-2015 at China Ocean Shipping Co., ultimately rising to president of the party committee. Sinopec also announced the retirement of board of supervisors chairman Liu Yen.

People & Companies

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