80% operated interest in shallow water Bahar PSA in Azerbaijan with SOCAR 20%
- Two mature fields with 3.4 bn boe of original oil & gas in place, cumulative production of >1 bn boe
- Limited investments since the Soviet era, low recovery factors (9% for oil and 65% for gas)
Existing gross production of approximately 4,400 boe/d
- Greenfields net revenue of US$32MM(1)
- Balanced exposure to oil price volatility, 75% of production is sold as gas at fixed price to SOCAR
Near-term development opportunities to deliver >30,000 boe/d within 3-4 years(2)
- Significant operational leverage due to largely fixed cost base
- Low to Moderate execution risk, existing production/export infrastructure in place
Large 2P reserve base of 94 MMboe gross, with 3P reserves of 155 MMboe gross(3)
- High geological certainty – underpinned by 1P reserves of 52 MMboe gross (3)
- PV10 of 1P = $231MM, 2P = $504MM, 3P = $791MM net to Greenfields
Attractive and stable fiscal terms with generous contractor take
- PSA structure with good commercial terms and no Azeri taxes
- Large unrecovered cost recovery pool ($240MM)
1) Based on 2018 Q1-Q3 actual, annualized to full year
2) GLJ Reserves Report 7.31.2018 Gross License Production
3) GLJ Reserves Report 7.31.2018 Gross License Reserves