Carnarvon Energy Limited · ASX:CVN
Carnarvon Energy — Investor Presentation (March 2022)
26 slides from Carnarvon Energy's investor presentation, Mar 8, 2022
Slide 1: Corporate Presentation
Corporate Presentation For personal use only 8 March 2022 GENERATING VALUE THROUGH THE ENERGY TRANSITION 1
Slide 2: Disclaimer
Disclaimer The resource estimates outlined in this presentation are based on and fairly represent information and supporting documentation prepared by Carnarvon’s Chief Operating Officer, Mr Philip Huizenga, who is a full-time employee of the company. Mr Huizenga has over 25 years experience in petr
Slide 3: Today's presentation highlights
Today’s presentation highlights For personal use only ➢ Dorado oil Strong macro & Dorado specific product demand ➢ Dorado development 2022 will be transformational for Carnarvon on FID ➢ Bedout basin holding Very large potential & Pavo de-risks many prospects GENERATING VALUE THROUGH THE ENERGY TRAN
Slide 4: Dorado crude properties
Dorado crude properties (% by volume) For personal use only Examples of Dorado crude uses ➢ Petrochemicals ➢ Jet & other transport fuels Dorado crude is categorized as ➢ Light / extra light (51o API) ➢ Sweet (defined by its low 189 ppm Sulphur content) GENERATING VALUE THROUGH THE ENERGY TRANSITION
Slide 5: Changes in product demand from light / extra light crudes
Changes in product demand from light / extra light crudes For personal use only ✓ Naphtha demand growth (petrochemical feedstock) ✓ Jet/kerosene demand growth ✓ Dorado crude refined products Majority of Dorado oil weighted to growth areas projected to be produced ✓ Dorado production well timed into
Slide 6: Dorado positioned to support Asian demand growth
Dorado positioned to support Asian demand growth For personal use only GENERATING VALUE THROUGH THE ENERGY TRANSITION 6
Slide 7: Changes in regional demand for light / extra light crudes
Changes in regional demand for light / extra light crudes For personal use only ✓ Strong demand growth ✓ Driven from Asia Pacific Majority of ✓ Dorado production timing Dorado oil projected to and location is ideal be produced GENERATING VALUE THROUGH THE ENERGY TRANSITION 7
Slide 8: Dorado refined products and demand forecasts are attractive
Dorado refined products and demand forecasts are attractive For personal use only ✓ Dorado refined products right ➢ Naphtha for petrochemicals ➢ Jet and other transport fuels ✓ Dorado timing right ➢ Demand growth projected in Dorado’s main production window ✓ Dorado location right ➢ Well located to
Slide 9: Recap on the Dorado project (CVN 20%)
Recap on the Dorado project (CVN 20%) For personal use only ➢ Contingent resource of 162mmbbls (gross 2C basis) ➢ Phase 1 – liquids production ✓ Working to be FID ready by mid-2022 ✓ Targeting initial 75,000 to 100,000 bopd flow rate (gross) in 2026 ➢ Phase 2 – gas and LPG production Dorado discover
Slide 10: Dorado phase current status (CVN 20%)
Dorado phase 1 current status (CVN 20%) For personal use only ➢ Conceptual design work complete on subsurface, WHP and FPSO ➢ FEED work advancing to finalise capital cost and execution plan, along with required contracts ➢ Production License and Offshore Project Plan prepared for regulatory The deve
Slide 11: Optimizing Carnarvon's Dorado funding position
Optimizing Carnarvon’s Dorado funding position For personal use only ➢ Technical DD commenced Sept 2021 Dorado’s attraction ➢ Commercial engagement commencing Senior debt in Q2, 2022 for financiers ➢ In discussion with >10 quality lenders ➢ Finance in addition to senior debt ➢ Strong debt servicing
Slide 12: Dorado phase (CVN 20%)
Dorado phase 2 (CVN 20%) For personal use only Indicative facility ✓ Near field discoveries are compelling spare capacity ➢ Value in utilizing existing facilities ➢ Pavo & or Apus near term wells ➢ Substantial future Bedout potential ✓ WHP has options to expand capacity ✓ Flexibility exists in timin
Slide 13: Pavo-1 exploration well (CVN 30%)
Pavo-1 exploration well (CVN 30%) For personal use only In Progress A Location 42 km east of Dorado A’ Key Risks Charge & top-seal (pre-drill) Status ✓ Elevated gas & increased resistivity A Pavo-1 A’ over 57m interval ( 2,944-3,001m MD) Cossigny ✓ Strong indications of hydrocarbons ✓ Wireline loggi
Slide 14: Apus-1 exploration well (CVN 20%-30%)
Apus-1 exploration well (CVN 20%-30%) For personal use only To follow Pavo-1 Location 31 km southeast of Dorado Targets Caley & Milne Member sands A A’ Key Risks Charge & Top-seal Volumes* ✓ Liquids: 235 mmbbl; and ✓ Gas: 408 Bcf (100%, mean) Risk ✓ 23% Pg ✓ Pavo-1 positive for key risks ✓ HRDZ’s po
Slide 15: Bedout basin is being de-risked
Bedout basin is being de-risked For personal use only Apus Pavo Roc Dorado SE NW All geological elements are in place • Reservoir – clean, porous, quartzose, preserved at depth • Source – widespread, interbedded, rich (liquids/gas) • Seal – four excellent regional; many semi-regional seals Cossigny
Slide 16: Quality 3D seismic data are contributing to Bedout results
Quality 3D seismic data are contributing to Bedout results For personal use only 2D (1987, repro.) 3D (2019) 3D (2021 repro.) C D C D C D Dorado Dorado canyon canyon C Dorado D GENERATING VALUE THROUGH THE ENERGY TRANSITION 16
Slide 17: An exciting possibility for seismic data to de-risk future prospects
An exciting possibility for seismic data to de-risk future prospects For personal use only Dorado Pavo N S N Cossigny S Fluid Escape Features (FEF’s) Caley Fluids that escape from a structure can create a seismic signature – often a sign that hydrocarbons are, or were, present Apus In N the Bedout S
Slide 18: Quality 3D seismic data now covers most of the Bedout basin
Quality 3D seismic data now covers most of the Bedout basin For personal use only Two new 2021 3D seismic surveys will mature and de-risk key leads and prospects • Archer 3D, 595 km2 – Dorado near-field prospects • Keraudren Ext. 3D, 2,534km2 – eastern lead complex Processed data available early 202
Slide 19: Bedout basin offers significant potential (CVN 20%-30%)
Bedout basin offers significant potential (CVN 20%-30%) For personal use only ✓ ~100 drill targets identified ✓ Prospective for both liquids and gas ✓ ~70% of the basin now covered in modern 3D seismic data ✓ Only <10% of the area, and 2 of 12 plays, have been explored up to 2022 Pavo-1 outcomes ver
Slide 20: Renewable "oil"
Renewable “oil” Plan to produce renewable diesel and biochar in Western Australia (CVN 50%) For personal use only Commercial highlights: RENEWABLE BIODIESEL DIESEL Needs to be Replacement blended with for End-use conventional conventional Renewable diesel Complements our Strengthens Business has Car
Slide 21: Carnarvon's ESG commitments and investment in the transition
Carnarvon’s ESG commitments and investment in the transition For personal use only Net zero Sustainability Renewable diesel commitment reporting investment GENERATING VALUE THROUGH THE ENERGY TRANSITION 21
Slide 22: Corporate snapshot (ASX code: CVN)
For personal use only 1. Corporate snapshot (ASX code: CVN) 2022 will be transformational for Carnarvon upon Dorado liquids development FID Dorado funding plans advancing across senior and mezzanine debt and divestment Substantial growth potential with ~100 Bedout exploration targets & positive dril
Slide 23: Appendix 1: Resource tables
For personal use only Appendix 1: Resource tables
Slide 24: Bedout Basin Contingent Resources
Bedout Basin Contingent Resources Gross resources (100% basis) For personal use only Oil and Condensate Natural Gas Barrels of Oil Equivalent 1 MMbbl BCF MMboe 1C 2C 3C 1C 2C 3C 1C 2C 3C Dorado 86 162 285 367 748 1358 176 344 614 Roc 12 20 35 205 332 580 48 78 137 Bedout Project Sub Total 98 182 320
Slide 25: Bedout Basin Selected Prospective Resources
Bedout Basin Selected Prospective Resources Prospective Resources (100% basis) Light Oil Natural Gas Barrels of Oil equivalent Pg For personal use only MMbbl BCF MMboe % P90 P50 Mean P10 P90 P50 Mean P10 P90 P50 Mean P10 Pavo Resource estimate to be revised following completion of the Pavo-1 well Ap
Slide 26: Generating value through the energy transition
For personal use only Generating value through the energy transition – a contemporary approach that integrates conventional assets and renewables HEAD OFFICE Level 2, 76 Kings Park Road T. +61 8 9321 2665 West Perth WA 6005 E. admin@cvn.com.au
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