H3 Energy Limited · ASX:H3E
H3 Energy — Transerv Energy — Non-Deal Roadshow (August 2015)
15 slides from H3 Energy's roadshow presentation, August 2015
Slide 1: Unlocking the Value of Australia's Largest Undeveloped Onshore Gas Field
UNLOCKING THE VALUE OF AUSTRALIA’S LARGEST UNDEVELOPED ONSHORE GAS FIELD Stephen Keenihan Executive Director
Slide 2: Key Points
KEY POINTS •1 Transerv owns the Warro gas field ‐ Australia’s largest undeveloped onshore gas field •2 Warro has an in‐place resource of 8‐10 TCF, independently assessed •3 Located in the Perth Basin just 30km from the two key pipelines running into WA’s south‐ west (Australia’s largest domestic gas
Slide 3: Transerv Corporate Summary
TRANSERV CORPORATE SUMMARY Capital Structure Directors and Management Existing ordinary shares 807m Craig Burton Chairman Management options ex 2.5c 28m Stephen Keenihan Director Implied Market Cap at 4.3c (undiluted) $34.7m Ian Cockerill Director Current Cash and liquid assets $4.6m Jo‐Ann Long Com
Slide 4: Focused Oil & Gas Opportunities
FOCUSED OIL & GAS OPPORTUNITIES UNLOCKING ONSHORE GAS MONTNEY TIGHT LIQUIDS PLAY PERTH BASIN, W. AUSTRALIA BC, CANADA WESTERN ALBERTA AUSTRALIA WARRO FIELD R6 / R7 67,000 net acres MONTNEY LIQUIDS 33,000 net acres EXPLORATION PERMIT 321 100,500 net acres Edmonton BRITISH COLUMBIA Perth 50km 200km 4
Slide 5: Perth Basin
PERTH BASIN • Warro is a GIANT gas field with Gas‐In‐Place estimates ranging 8‐10 TCF. WESTERN Waitsia • Two appraisal wells, Warro‐5 & 6, to Gas Discovery AUSTRALIA AWE ‐ Origin commence drilling at Warro August/September. WARRO FIELD • Fully funded by Alcoa for an estimated cost of A$30 – $40 mill
Slide 6: Warro – The Independent Expert's View
WARRO – THE INDEPENDENT EXPERT’S VIEW US expert Dr Keith Shanley reviewed the results from Warro‐3 & 4 wells and concluded: • Warro contains significant gas accumulation with potential to flow at high rates: o 8 ‐ 10 Tcf in place; o 3 ‐ 4 Tcf recoverable. • Wells capable of 4 ‐ 10 Bcf each (50 acre
Slide 7: Warro Reservoir Properties
WARRO RESERVOIR PROPERTIES 7
Slide 8: Warro Well History
WARRO WELL HISTORY WARRO‐3 (2009) WARRO‐4 (2011) Fracked in 4” casing with gel Fracked in 7” casing with Slick‐water Limited frac capacity and poor frac penetration Excellent hole and frac placement Flowed 1‐3mmcfd Gas with water Flowed 0.6mmcfd Gas with water INTRA YARRAGADEE INTRA YARRAGADEE LWR Y
Slide 9: Warro 3D - Structure and Fault Image Analysis
WARRO 3D ‐ STRUCTURE AND FAULT IMAGE ANALYSIS Base Reservoir (Top Cadda) TWT Structure Map Base Reservoir (Top Cadda) Incoherence 5km 5km Area of field currently tested INSET 2 1 2 1 4 4 3 3 Warro 6 Warro 6 (Proposed) (Proposed) INSET Warro 5 Warro 5 (Proposed) (Proposed) 2 1 44 3 Warro 3D Warro 3D
Slide 10: Stakeholder Support
STAKEHOLDER SUPPORT • All Government approvals in place. • Native Title completed. • Three years of environmental monitoring to date – soil, air and water. • CSIRO monitoring project in place. • Local Community – “The community association is completely supportive of the project and recognises the b
Slide 11: Western Australia Gas Market
WESTERN AUSTRALIA GAS MARKET Warro is one of a few onshore WA gas discoveries potentially capable of meeting the Browse JV’s offset requirement, reported to be 800PJ.
Slide 12: Dandaragan Deep Prospect
DANDARAGAN DANDARAGAN DEEP D EEP PROSPECT PROSPECT • And there’s more – Dandaragan Deep is lookalike follow‐up to Warro W Dandaragan‐1 (1995) E TD 1103m Otorowiri 819m‐834m 10o API biodegraded Oil Otorowiwi Upper Yarragadee Intra‐Yarragadee Lower Yarragadee Cadda 62km Closure 1.6 Tcf Mean EUR Intra‐
Slide 13: Share Price History and Capitalisation
SHARE PRICE HISTORY AND CAPITALISATION • Three main events – farmout agreement, Warro‐3 and Warro‐4. • Historically resulted in ~4x uplift of current share price. c/share Farmout Warro‐3 Warro‐4 Warro‐5 & 6 25.0 Mkt Cap $31.4m Mkt Cap $24.3m Mkt Cap $133.1m Mkt Cap ?? 20.0 15.0 10.0 5.0 ? 0.0 Jan‐07
Slide 14: Conclusions
CONCLUSIONS • Transerv aims to unlock potentially immense value of Warro gas field in WA with two imminent wells. • Warro has the key ingredients to create significant shareholder value: – Substantial reserve potential; – Close to key pipeline infrastructure; – Strong market, robust pricing and larg
Slide 15: Disclaimer
DISCLAIMER No representation or warranty, expressed or implied, is made by Transerv that the material contained in this presentation will be achieved or prove to be correct. Except for statutory liability which cannot be excluded, Transerv, their officers, employees and advisers expressly disclaim a