Key Petroleum Limited · ASX:KEY
Key Petroleum — Good Oil Conference 2010
15 slides from Key Petroleum's conference presentation, Sep 7, 2010
Slide 1: Good Oil Conference
GOOD OIL CONFERENCE SEPTEMBER 2010 1
Slide 2: Presentation Disclaimer
PRESENTATION DISCLAIMER The information in this presentation is an overview and does not contain all information necessary for investment decisions. In making investment decisions, investors should rely on their own examination of Key Petroleum Ltd and consult with their own legal, tax, business and
Slide 3: Australia, England, Tanzania, Suriname asset and drilling overview
AUSTRALIA ENGLAND TANZANIA SURINAME EP 437 BROCKHAM & LIDSEY WSS & NYUNI CORONIE Key - 45% Key - 100% Key - 20% & 50% Key - 1.75% DRILLING DRILLING ONSHORE ONSHORE OFFSHORE/ ONSHORE ONSHORE (Island) PERTH BASIN SOUTHERN ENGLAND NYUNI BLOCK 2 WELL 1 WELL 1 WELL 5 WELLS EXPLORATION LIDSEY #2 DEVELOPME
Slide 4: EP 437 Regional Picture
EP 437 REGIONAL PICTURE ¾ Key Earning 45% ¾ Drilling Rig – DCA Rig #7 ¾ Spud - first well - Mid October 2010 ¾ TD of wells ≈ 550 and 720 m ¾ Oil charge - evident in several EP437 wells, including Conder- 1 (brown oil stain and blebs of waxy oil in cuttings) ¾ Kockatea Shale - one of the best, oil pr
Slide 5: EP 437 - Prospective Resource
EP 437 - PROSPECTIVE RESOURCE CONDER-1 COMPOSITE LOG Prospective Resource P90 P50 P10 (Rec) MM bbl MM bbl MM bbl Oil Staining Unrisked DIBBLER 0.14 0.36 0.56 DUNNART 0.20 0.40 0.95 4MMcfd on 3/4 “ Prospects reasonably constrained for 1.7MMcfd on 3/8” Dibbler onshore 2D seismic coverage & good we
Slide 6: Payback and Cumulative Cash Flow Charts
PAYBACK AND CUMMULATIVE CASH FLOW CHARTS Potential Dunnart Unrisked P10 (Net to KEY) Dibbler Unrisked P10 (Net to KEY) 400 20.0 250 10.0 350 200 8.0 300 15.0 250 150 6.0 BOPD $ MM BOPD $ MM 200 10.0 100 4.0 150 100 5.0 50 2.0 50 0 0.0 0 0.0 Cumm Cash Flow BOPD Cumm Cash Flow BOPD ‐50 ‐50 ‐2.0 ‐100 ‐
Slide 7: Production (Brockham & Lidsey) and Lidsey #2 drilling
Production (Brockham & Lidsey): Acquired beginning of Q4 2009 Provided oil sales revenue to Key Petroleum from day one (Priced to Brent). Currently ≈ 80 BOPD (One low producing well giving production problems). Decline rate of fields curtailed. Worked over one well – Corrosion in tubing, pum
Slide 8: Activity on East African coast increasing
Activity on East African coast increasing – Offshore Tanzania – • Deepwater action : Petrobras, Shell, Exxon, Statoil, BG & Ophir (September drilling ?) Onshore Tanzania – • Ongoing drilling by Maurel & Prom and Tullow in Ruvuma Northern Mozambique – • Anadarko 6 well 2010 • 2-3 discoveries so far •
Slide 9: West Songo Songo and Nyuni PSA
WEST SONGO SONGO NYUNI PSA 50% Key & Operator 20% Key 1 Tcf undiscovered gas Appraisal seismic shot over Kiliwani North gas Tanzania gas market niche discovery (40 MMscfd) over next 4 years Kiliwani North Sheltered, shallow water, commercialisation simple development discussions continue
Slide 10: West Sardinia, Lampedusa, Elba South and Borsano Licence
WEST SARDINIA, LAMPEDUSA, & BORSANO LICENCE (100%) ELBA SOUTH Close to industrial City of Milan, (100%) Po Valley Extension Requested, Prospective West Sardinia (Awarded Exploration Status) for both oil and gas Frontier shelf area, Dual plays – Shallow oil, deep gas. Borsano Lampedusa East &
Slide 11: The Play
THE PLAY Pelagian Shelf (7 BBOE discovered off Tunisia & Libya - Oilsearch 2008) Oil prone Cretaceous source rock Italian Govt “take” <40% Lampedusa unexplored since 1980’s Key has mapped original seismic data Leads with unrisked mean STOIP up to 250MM bbl Next step: New seismic needed
Slide 12: Activity: Uitkijk and Coronie blocks, Suriname
ACTIVITY: Uitkijk – Uitkijk Block 7 mm bbls Staatsolie announced 7 mm Coronie Block est’d barrels estimated reserves 5 wells Q4 2010 Reserves 10 wells drilled - 2008/2009 Awaiting development plan Coronie – 5 wells to be drilled, (Tullow dg recently announced drilling to commence Q4 2010) Ke
Slide 13: Shares on Issue, Share Price, Options and Core Assets
Shares on Issue 149,677,405 Share Price 5.0 c (06/09/2010) Options 5,000,000 @ 50c - expiring on 30/11/2010 Unlisted 700,000 @ 20c - expiring on 30/11/2010 250,000 @ 30c - expiring on 30/11/2011 8,200,000 @ 7.5c - expiring on 30/11/2011 Market Cap Approx $7.5 Million (06/09/2010) Debt Nil Cash on Ha
Slide 14: Drilling Programme and country outlook
Australia (45%) EP 437 - Drilling Programme and building on its success United Kingdom (100%) Maintaining & Improving Current Production Preparations for drilling of development well Lidsey #2 Looking at number of onshore opportunities for drilling participation in 2011 Tanzania (20% & 50%) Divestme
Slide 15: www.keypetroleum.com
www.keypetroleum.com Tel: + 61 8 9327 3500 15