The following is a Stockhouse Q&A with Oracle Energy Corp.
, Stock Forum
) Executive Chairman Darrell McKenna.
What is the investment case for Oracle Energy?
Oracle Energy is a Toronto Venture Exchange listed emerging exploration and producing company, focused on African hydrocarbon plays in onshore and offshore areas. Oracle has an attractive pipeline of opportunities currently under evaluation. Our growth model focuses initially on discovered resources and development opportunities in Nigeria, with an ultimate goal to identify further exploration and development opportunities throughout Africa. Oracle’s Investment case is based on an extremely well seasoned management team, with extensive experience in working international oil and gas projects, with specific emphasize on West Africa.
Oracle Energy has recently added some strong leaders to the team, including yourself, can you tell us a bit about the experience the Management team brings?
My background is primarily international business development and production/drilling and operations. My particular strengths are taking projects from discovery thru development to production and cash flow.
Oracle has a well seasoned leadership team equipped with strong finance, government relations, community relations, exploration, development and operations capability. Oracle is committed to applying these core competencies to growth in Africa and building a substantial world class African E&P Company.
Oracle has signed MOU’s with two Nigerian indigenous companies, Greenacres Energy and Bolad Energy. Both groups have a solid track record of finding oil and gas and developing oil fields. Our target assets are the further onshore divestments by Shell and the divestment of shallow water producing assets of ExxonMobil Corp.
, Stock Forum
), plus participation in the new Marginal Field Round.
Oracle Objectives Include:
Oracle Energy has a strong hold in the current market, what aspects of Oracles business structure differentiate you from others in this market?
Partnering with world-class companies and people to build a globally competitive E&P company
Build early cash flow with proved undeveloped Nigerian assets, then expand as opportunities are identified
Deliver best in class development and maintain operational costs that are competitive within the Gulf of Guinea, utilize latest technologies to leverage value of combined organization.
Foster and build relationships with financial cornerstone investment groups, to ensure our forward opportunities are fully funded, without any delays
Oracle has all the requisite capabilities to build a successful oil and gas business in West Africa. We have current state of the art technology acquired by successful hands on experience finding, developing and producing these oil and gas fields. We have the contacts and relationships with the industry and with the governing agencies to allow us to identify the opportunities and to effectively bid for, or negotiate, asset acquisition. We have also identified investors who understand the capability of our team and are prepared to support us in the asset acquisition and development process.
Tell us a bit about your progress in Nigeria, is Africa going to be your primary focus?
Through our contacts and strategic relationship with various Nigerian companies we have a number of opportunities we are pursuing. These are currently in various stages of screening within Oracle. . Our primary focus, at least in the short term, will be discovered underdeveloped resources or field redevelopments. Africa will be our primary focus for many years to come. We are well situated in terms of our relationships and understanding to be successful in the region. The track record of several companies similar to Oracle verifies our understanding of the opportunities.
Can you describe the advantages and disadvantages of being in Nigeria and what this means to Oracle Energy?
Clearly the biggest advantage of the Nigerian oil business is is the potential of the Niger Delta and the ability to transact commercial deals within the context of the new Nigerian petroleum rules. There are many undeveloped opportunities waiting for the right combination, both commercially and technical, to put new production on line.
Disadvantages to me are more around the lack of full understanding of Nigeria in the global financial circles. In the short term securing appropriate financing for various projects will be challenging for some companies. Security on shore remains a challenge however we feel with the appropriate community relations effort m these concerns can be managed.
Oracle Energy expressed enthusiasm for the unconventional oil and gas play in the European markets, what is the progress on your property in Portugal?
We continue to work Portugal as a promising long-term growth area. Our current focus is on studying the available data.
These plays take time to mature and ensure commerciality can be achieved.
On June 17th you announced a new private placement of up to $800,000, can you elaborate on the how things are going to unfold cash-flow-wise over the next 12 months?
While we always welcome the interest of new investors and shareholders we have had a number of investor groups express interest in participating in the Oracle Energy private placement. Our new team has built investor confidence and with a number of opportunities under evaluation our growth model is creditable.
What are your key goals for the remainder of 2014 and on into early 2015?
Achieve positive market response to our private placement offering and ensure Oracle is well funded for the next 12 months. Continue to build our Nigerian asset base with an eye to production in 2015 or early 2016. Maintain our relationship and strategic alliances with various Nigerian partners and secure funding to competitively bid on upcoming Marginal Round properties and assets that the various IOC’s will be offering in the next two years.
Full Disclosure: Oracle Energy is a Stockhouse client.