PROJECTS

Indicative company acquisition pipeline can be found  in presentation

PROJECT A

The project is the most profitable project for the Company and investors. The field is located on the territory of the oil-rich Arabian Peninsula. The exploration area is more than 18 000 km2. CHF 32mln have been invested up-to-date in exploration and test drilling. Large array of data collected in the period from 1959 to 2017, provides enough reasons to assume the existence of large hydrocarbon resources. During this period, three test drillings were made on this field, all wells showed the presence of oil and gas. Evaluation of drilling results of the wells done by the leading industrial experts, suggests the presence of reserves (category STOIP/OGIP) volume of 5 billion barrels of oil and 2.87 trillion m3 of gas.

Table. Summary of Project A

Items Units 2018 2019 2020 2021 2022 – 2046 TOTAL
Oil production tcm 1 095 6 570 15 067 223 642 246 374
Production wells, average for the period wells 4 20 36 48 48 48
Revenues from crude oil and natural gas sales thCHF 28 900 179 500 396 400 3 946 900 4 551 700
CAPEX thCHF 49 000 240 400 172 000 100 500 561 900
OPEX thCHF 5 900 23 000 40 400 67 900 1 491 100 1 628 300
Depreciation thCHF 1 100 37 000 57 300 63 700 355 000 514 100
EBITDA thCHF – 5 900 5 900 139 100 328 500 2 455 800 2 923 400
EBITDA margin % na 20% 77% 83% 62% 64%
Net profit thCHF –   5 600 -24 880 65 440 211 840 1 680 640 1 927 440
 
Performance indicators
NPV thCHF 973 121
IRR % 112%
ROI % 3 834%

PROJECT B

Project B is the most promising for the Company and investors. It includes fields, which are among the ten biggest recent discoveries in the region. Net land area of the fields covers about 1,160 km2.

Fields are conventional sandstone reservoir with a depth of 2500 – 3000 meters below the surface and contain light oil, natural gas and gas condensate.

Reserves of hydrocarbons are in process of assessment by the world leading reserve auditor.  In accordance with the estimates of the world leading industrial experts:

RESERVES BOE, mln.
2P (proved and probable) 129
1P (proved) 56

Last reserve audit clearly stated significant upside of reserves 2P (proved and possible) up to 260 mln. BOE.

By the present moment more than 19 wells have been already drilled and commercially flow tested, which allows with high degree of probability to predict low risk of fields exploration and achievement of the targeted results of production. Similarity and continuity of oil bearing formations, and also high gas saturation underpin high profitability of the project. Analysis of available wells drilling and testing results gives 30% probability of reserves increase in that area.

Table. Summary of Project B

items Units 2018 2019 2020 2021 2022 2023 – 2038 TOTAL
Oil production tcm 198 847 884 900 6 242 9 072
Gas production mcm 115 602 929 925 4 227 6 797
LPG production mcm 1 26 82 136 1 516 1 761
Production wells, average for the period wells 12 34 42 42 42 42
Revenues from crude oil and natural gas sales thCHF 22 100 117 000 179 500 207 700 1 682 700 2 209 000
CAPEX thCHF 54 300 39 800 41 400 19 600 14 600 169 700
OPEX thCHF 2 800 7 100 33 700 45 800 50 100 567 900 707 300
Depreciation thCHF 2 700 4 700 6 800 7 800 7 800 8 500 38 200
EBITDA thCHF – 2 800 15 000 83 300 133 700 157 700 1 114 800 1 501 700
EBITDA margin % 68% 71% 74% 76% 66% 68%
Net profit thCHF – 4 400 8 200 61 200 100 800 119 900 885 100 1 170 800
               
Performance indicators              
NPV  thCHF  528 300          
IRR  % 82%          
ROI  % 982%          

Please be informed that nowadays the Company also applies for an additional exploration permit covering the area of 1,053 km2 to the west of the B field.

PROJECT C (OPTIONAL)

The founders of the Company keep holdings in the fields in CIS with oil and gas reserves 2 P (proved and probable) of 40 mln. BOE according to the report of DeGolyer and MacNaughton.

 Natural Gas (106m3) BOE, mln
2P (proved and probable) 6 300 40
1P (proved) 4 193 26
  • Exploration stage finalized.
  • 6 wells had already been drilled and well tested, with flow debit of 260-500 thousand m 3 per day.  Pipelines run through the fields.

The Company needs to construct about 6 km of gas-collecting network to connect to main pipeline.  Besides this, CAPEX program includes drilling of horizontal wells to increase daily gas flow rate. The total remaining CAPEX is CHF 9 mln. Up to date more than CHF 19,4 mln have been invested in exploration and appraisal drilling and pilot testing.

Table. Production and financial indicators of Project C

Items Units 2018 2019 2020 2021 2022 2023 – 2043 TOTAL
Production of natural gas mcm 781 781 781 758 3 266 6 366
Production wells, average for the period wells 3 6 6 6 6 4
Revenues from crude oil and natural gas sales thCHF 52 100 52 100 52 100 50 600 218 200 425 100
Costs thCHF
CAPEX thCHF 8 400 200 200 200 200 2 500 11 700
OPEX thCHF 400 21 000 21 000 28 800 20 400 103 900 195 500
Depreciation thCHF 400 900 900 900 900 5 000 9 000
EBITDA thCHF –             400 38 600 38 600 28 900 37 500 149 300 292 500
EBITDA margin % 74% 74% 56% 74% 56% 69%
Net profit thCHF –             800 30 200 30 200 22 400 29 300 115 600 226 900
Performance indicators
NPV thCHF 112 300
IRR % 351%
ROI % 1255%

 

Table.  Summary of A, B and C projects

Items 2018 2019 2020 2021 2022-2046
Oil production 000 tons 1 293 7 417 15 952 229 884
Gas production mcm 896 1 382 1 709 7 493
LPG production mcm 1 26 82 1 516
Revenue thCHF 103 100 348 600 628 000 5 847 800
OPEX thCHF 9 100 51 100 95 100 142 500 2 300 100
EBITDA thCHF –            9 100 59 500 261 000 491 100 3 719 900
Transfer to the Pool of Tokens thCHF 6 760 78 420 167 520 1 340 670
CAPEX, incl. acquisition cost thCHF 111 700 280 400 213 600 120 300 17 100
IRR % 110%
NPV thCHF 1 613 721
ROI % 1 326%