Carnarvon Energy Limited · ASX:CVN
Carnarvon Energy — Shareholder Meeting (November 2019)
36 slides from Carnarvon Energy's shareholder meeting presentation, Nov 15, 2019
Slide 1: A Unique Exposure to the World Class Dorado Discovery
For personal use only A UNIQUE EXPOSURE TO THE WORLD CLASS DORADO DISCOVERY NOVEMBER 2019
Slide 2: Disclaimer
DISCLAIMER For personal use only The resource estimates outlined in this Presentation are based on and fairly represent information and supporting documentation prepared by the Company’s Chief Operating Officer, Mr Philip Huizenga, who is a full-time employee of the Company. Mr Huizenga has over 25
Slide 3: Key messages
Key messages For personal use only 1. Dorado resource large and de-risked Successfully appraised in 2019 2. Dorado development phase commenced Basis of Design ahead of FEED in 2020 3. Rich portfolio of growth potential Opportunities being progressively matured 4. Strong financial position with $133m
Slide 4: Section: Dorado Resource
For personal use only SECTION 1 DORADO RESOURCE
Slide 5: Results confirm hydrocarbons across the field
Results confirm hydrocarbons across the field For personal use only Dorado-1 Dorado-2 Dorado-3 2018 2019 2019 Sand 1 Caley Sand 2 Baxter Not Sand 3 Crespin expected Sand 4 Milne - = Hydrocarbon objectives achieved 5
Slide 6: Large resource delineated at Dorado
Large resource delineated at Dorado For personal use only 344 +22% Million Increase barrels in volume on of oil 2018 equivalent1 estimate 1. Refer to resources information contained in annexure slides, gross 2C resource, CVN 20% 6
Slide 7: Field contains both liquids (oil & condensate) and gas
Field contains both liquids (oil & condensate) and gas For personal use only 162 Million barrels of liquids (mmbbls)1 344 Million barrels of oil equivalent (mmboe)1 748 Billion cubic feet of gas (Bcf)1 1. Refer to resources information contained in annexure slides, gross 2C resource, CVN 20% 7
Slide 8: Additional upside in combining the Roc resource
Additional upside in combining the Roc resource For personal use only 162 + 20 = 188 Million barrels of liquids1 422 Million barrels of oil equivalent (mmboe)1 748 + 322 = 1080 Billion cubic feet of gas1 1. Refer to resources information contained in annexure slides, gross 2C resources, CVN 20% 8
Slide 9: Commercial flow rates confirmed
Commercial flow rates confirmed For personal use only Dorado-3 Caley interval is the main oil leg 11,100 bbls / day liquids & 21 mmscf / day gas1&2 30,000 bbls / day / well in production setting2 Dorado-3 Baxter gas & condensate interval 4,500 bbls / day liquids & 48 mmscf / day gas1&3 Roc-2 Caley g
Slide 10: Section - key messages
Section 1 - key messages For personal use only 1. Hydrocarbon resource de-risked across four reservoir intervals 2. Large hydrocarbon resource delineated 344 mmboe: being 162 mmbbls and 748 Bcf1 3. Commercial oil field flow rates ~30,000 bbls/day per well from Dorado Caley2 1. Refer to resources inf
Slide 11: Section: Dorado Development
For personal use only SECTION 2 DORADO DEVELOPMENT
Slide 12: Development stages 2019 to 2025
Development stages For personal use only 2019 to 2025 Resource confirmation – highest risk phase Basis of Design - now Engineering Design – FEED in 2020 Final Investment Decision Construction phase First production 12
Slide 13: Development concepts
Development concepts For personal use only Basis of Design work is in progress1 Oil & condensate field (leading development option) Comprises a facility producing the oil & condensate initially Gas production forms a second stage of the development 1. Development image is for illustrative purpos
Slide 14: Subsurface management
Subsurface management For personal use only FPSO WHP ~90m Water Depth Enhanced subsurface management Upper Caley and recoveries are possible with Caley multiple reservoirs and Baxter hydrocarbon fluid types1 Crespin Milne 1. Reservoir image and facility design is for illustrative purposes only 2. Gr
Slide 15: Section - key messages
Section 2 - key messages For personal use only 1. Development phase has commenced Basis of Design is in progress 2. FEED expected to commence in 2020 Final Investment Decision before construction 3. Production is a key goal for Carnarvon Material earnings and cash flow generation 15
Slide 16: Section: Growth Portfolio
For personal use only SECTION 3 GROWTH PORTFOLIO
Slide 17: Exploration driven value creation
For personal use only Phoenix Sth-1 well (2014) Roc-1 well Roc-2 well Phoenix Sth-2 well Exploration driven value creation Dorado-1 well Phoenix Sth-3 Dorado-2 well Roc Sth-1 well Dorado-3 well CVN price share (5 years) 17
Slide 18: Prospects near Dorado
Prospects near Dorado For personal use only Large number of prospects identified including Pavo (CVN 30%) and Apus (CVN 20-30%) Enhanced with new Keraudren 3D seismic data covering Dorado and near field prospects Potential to be highly valuable especially if utilising Dorado production facilit
Slide 19: Significant opportunity within Carnarvon's permits
Significant opportunity within Carnarvon’s permits For personal use only Large holding in new basin Five permits cover ~27,000km2 Prospect rich region Outline of in a proven petroleum system Carnarvon’s five permits Nearby permits awarded to Santos, BP and Equinor 19
Slide 20: Buffalo progress
Buffalo progress For personal use only Secured Timor-Leste PSC & EP approval to drill 3 Buffalo field wells targeting 31 mmbbls of oil1 Process commenced to explore partner joining the oil field project Advancing new prospects Australian permit particularly in the Australian permit 1. Refer to
Slide 21: Update on other projects
Update on other projects For personal use only Labyrinth farm out process in progress Condor & Eagle farm out process just commenced Buffalo Australian prospect maturity work is in progress Continuing focus on high grading opportunities 21
Slide 22: Section - key messages
Section 3 - key messages For personal use only 1. Dorado near field prospects Significant and valuable 2. Important new petroleum basin discovered Offers significant opportunity beyond Dorado 3. Buffalo advancing With Timor-Leste and Australian opportunities 4. Other projects Progressing within the
Slide 23: Section: Financial Strength
For personal use only SECTION 4 FINANCIAL STRENGTH
Slide 24: Corporate
Corporate For personal use only Balance sheet strength maintained Cash of $133 million held at Sept 20191 expected to comfortably fund CY2020 activities Banks have expressed strong interest to provide debt funding for Dorado development Increasing institutional interest reflects strong nature
Slide 25: Oil price upside around 2024/25
Oil price upside around 2024/25 For personal use only US shale production growth weakening credit squeeze and accelerating decline rates1 Lack of mega project sanctioning and non-OPEC field production declines1 Low sulfur crude demand increase for shipping to under IMO2020 rules 1. Concepts ta
Slide 26: Wrap up & Questions
For personal use only WRAP UP & QUESTIONS
Slide 27: Wrap up and questions
Wrap up and questions For personal use only 1. Excellent results achieved on Dorado It is a world class project! 2. Dorado development phase commenced Basis of Design being finalized for FEED 3. Rich portfolio of growth opportunities intended to be progressively matured 4. Strong financial position
Slide 28: Annexure Information
For personal use only ANNEXURE INFORMATION
Slide 29: Corporate
Corporate For personal use only ORDINARY SHARES ON ISSUE 1,562 million MARKET CAPITALISATION $563 million CASH (AS OF 30 SEPT 2019) $133 million DEBT NIL ENTERPRISE VALUE $430 million NET 2C RESOURCES 116 mmboe1 1. Refer to resource information contained in annexure slides 29
Slide 30: Oil & gas volume summary (contingent resources)
Oil & gas volume summary (contingent resources) For personal use only Gross Resources (100% basis) Oil & Condensate Natural Gas Barrels of Oil Equivalent1 MMbbl BCF MMboe 1C 2C 3C 1C 2C 3C 1C 2C 3C Dorado 86 162 285 367 748 1,358 176 344 614 Roc 12 20 35 205 332 580 48 78 137 Phoenix Project Sub-Tot
Slide 31: Oil & gas volume summary (selected prospective resources)
Oil & gas volume summary (selected prospective resources) For personal use only Gross Resources (100% basis) Light Oil Natural Gas Barrels of Oil Equivalent Pg MMbbl BCF MMboe % P90 P50 Mean P10 P90 P50 Mean P10 P90 P50 Mean P10 Pavo 11 63 82 179 3 31 108 249 11 68 101 223 34% Apus Caleyi 12 91 125
Slide 32: Top Triassic 3D depth visualisation
TOP TRIASSIC 3D DEPTH VISUALISATION For personal use only 32
Slide 33: 3D seismic over Dorado, Roc and Phoenix South
3D seismic over Dorado, Roc and Phoenix South For personal use only 33
Slide 34: Strong commercial flow test results
Strong commercial flow test results For personal use only Dorado-3 flow tests • Caley interval flow test result indicated very high potential flow rates of around 30,000 barrels per day per well • Caley interval flow tested at maximum equipment capacity of 11,100 barrels per day of oil per day and
Slide 35: Buffalo utilised the latest in seismic processing technologies
Buffalo utilised the latest in seismic processing technologies For personal use only Buffalo-1 3262m depth slice Crossline through Buffalo-1 Johnson Fm Turnstone Fm Buffalo-7 Fenelon Fm Buffalo-3 Buffalo-2 Buffalo-1 GibsonFm Woolaston Fm Up Jamieson Fm Outline of version 4 attic 3262m 3000m Darwin F
Slide 36: A Unique Exposure to the World Class Dorado Discovery
For personal use only A UNIQUE EXPOSURE TO THE WORLD CLASS DORADO DISCOVERY HEAD OFFICE Level 2, 76 Kings Park Road West Perth WA 6005 T. +61 8 9321 2665 E. admin@cvn.com.au
Carnarvon Energy — Shareholder Meeting (November 2019) on 6ix