Carnarvon Energy Limited · ASX:CVN
Carnarvon Energy — Carnarvon Petroleum — Investor Presentation (October 2012)
43 slides from Carnarvon Energy's investor presentation, Oct 4, 2012
Slide 1: Capital Raising
For personal use only Capital Raising October 2012 1
Slide 2: Disclaimer
For personal use only Disclaimer The information provided in this document is not intended to be relied upon as advice to investors or potential investors and has been prepared without taking into account the recipient’s investment objectives, financial circumstances or particular needs. This presen
Slide 3: Overview of equity raising
Overview of equity raising Equity raising structure and use of proceeds For personal use only Summary Carnarvon Petroleum Limited (“Carnarvon” or the “Company”) will raise up to approximately $15.0m million through the placement of approximately 182.9m new ordinary shares (“New Shares”) to selected
Slide 4: Work program to June 2013
Work program to June 2013 Funding sources and uses Work program highlights For personal use only Thailand L44/43 and L33/43 Sources and Uses (A$m) Development drilling program of 12 new wells and 15 work overs with an expected exit rate Thailand development drilling program of 3,000 bopd 12.0 and te
Slide 5: Indicative equity raising timetable
Indicative equity raising timetable Institutional Placement For personal use only Institutional Placement opens • Wednesday 3 October 2012 Carnarvon shares expected to recommence normal trading • Thursday 4 October 2012 Settlement of unconditional placement shares • Thursday 11 October 2012 Allotmen
Slide 6: Strategy
Strategy For personal use only Build sustainable production Plan to double production by 31 Dec 2012 is deliverable Production from sustainable sandstone reservoirs Aligned operator and collaborative working environment Maximise free cash flows and earnings From Thailand production Invest in growth
Slide 7: Investment highlights
Investment highlights Thailand Western Australia For personal use only Proven oil present Proven gas province L44/43 & L33/43 30 mmbbls gross (12 mmbbls Phoenix-1 discovery net CVN) on 2P basis L20/50 Production 1,400 bopd gross Two Tcf prospects (gross) (550 bopd net to CVN) Ready to drill on 3D se
Slide 8: Snapshot
Snapshot Short term oil production growth from Thailand Key metrics For personal use only operations As at 2 Oct Impact of Pro-forma Near term North West Shelf (NWS) drilling targeting gas 2012 offer1 + condensate Ordinary shares 693.4m 182.9m 876.3m Long term exploration opportunities in Thailand &
Slide 9: Investment proposition
Investment proposition 1,000 For personal use only 900 800 700 600 Key growth $’m opportunities 500 400 300 200 Towngas value for 40% of L44 & L33 100 CVN Enterprise - Value Proved Probable Possible Prospective NWS NWS leads reserves reserves reserves resources prospects Volumes (net mmboe) 3.8 8.3
Slide 10: Thailand activity
Thailand activity For personal use only Forward work program Develop WBEXT Sandstone Acquire additional 3D Seismic in L33 Pursue stable 4,000 to 5,000 bopd from each of the two producing concessions Key Activity Dec Qtr 2012 Mar Qtr 2013 Jun Qtr 2013 Sept Qtr 2013 Drill – WBEXT Sandstone wells 7-8 w
Slide 11: North West Shelf activity
North West Shelf activity For personal use only Forward work program Complete Farmout of Phoenix South & Roc prospects (in WA-435-P & WA-437-P) Licence additional 3D seismic data to commence next round of farm-outs Drill Phoenix South and Roc prospects Pursue oil play across the blocks Key Activity
Slide 12: Thailand L44/43 and L33/43 (40% CVN)
For personal use only Thailand L44/43 and L33/43 (40% CVN) 12
Slide 13: New operator
New operator For personal use only Hong Kong and China Gas Limited (“HKCG”) Acquired a 60% interest in L44/43 and L33/43 in June 2012 for US$170m Equivalent to 16c per Carnarvon share on a look-through basis HKCG acquired the interest through its energy business ECO HKCG is listed on the Hong Kong s
Slide 14: New team
New team For personal use only Geological Group: Exploration Group Qualification Professional Experience Qualification Professional Experience Senior Geologist with fractured Doctorate in Geophysics 27 years 25 years reservoir oil field experience University Professor, Senior Geologist with fracture
Slide 15: New Approach
New Approach Illustrating the operator’s new approach For personal use only to WBEXT sandstone development:- Sub-surface well locations in WBEXT sandstone area have been revised By operator’s multi-disciplined team covering geology, geophysics and engineering Based on 3D seismic data & well ties fro
Slide 16: Short term work program
Short term work program For personal use only Sandstone development, commenced end July 2012 to drill up to 10 wells in 2012 Minimum 2 infill fractured igneous wells At least one multiple-target exploration well Increasing the list of workover initiatives in 100+ shut-in wells … and anticipated prod
Slide 17: Reintroducing shut in production
Reintroducing shut in production For personal use only ALRO subsurface area dominated by Bo Rang dome – connection to aquifer by edge drive results in no early water ingress Working to reintroduce production by November 2012 Flowing 500 bopd (gross) when production shut-in Agricultural Land Reform O
Slide 18: Financial outcomes at 3,000 bopd
Financial outcomes at 3,000 bopd For personal use only Gross Net to CVN per month per month Revenue (using $100/bbl) $9,000,000 $3,600,000 Fixed operation costs ($1,250,000) ($500,000) Trucking costs ($250,000) ($100,000) Royalties ($450,000) ($180,000) Net operating cash flow before tax $7,050,000
Slide 19: Overall Development Plan (ODP)
Overall Development Plan (ODP) For personal use only The opportunity: Proposed 30 million bbls in 2P reserves (gross) New 100km2 of production licenses 2D 125 million bbls prospective resources Proposed (gross) within existing 3D New 365 km2 3D seismic acquired to date 3D in 2012 Untested areas with
Slide 20: North West Shelf WA-435-P & WA-437-P (50% CVN)
For personal use only North West Shelf WA-435-P & WA-437-P (50% CVN) 20
Slide 21: Robust Phoenix South and Roc Prospects
Robust Phoenix South and Roc Prospects Phoenix-2 Phoenix-1 Keraudren-1 240S For personal use only 4,000m 4,100m 2,900m Prospects independently assessed by consulting firm ISIS from detailed technical 241T work undertaken by the Joint Venture. 4,200m Technical work incorporated well results 4,300m 3,
Slide 22: Significant Volumes
Significant Volumes Mudlog gas wetness ( C2+ / total gas stream ) For personal use only Proven Triassic gas resource with Gas Initially In -20%- Condensate-gas ratio (bbls/mcf) Place (“GIIP”) estimate of 870 BCF (highside) at Phoenix-1. Prospect highside GIIP estimates for Phoenix South -10%- (~5.5
Slide 23: North West Shelf (WA-436-P, WA-438-P & WA-443-P)
For personal use only North West Shelf (WA-436-P, WA-438-P & WA-443-P) (50% CVN except WA-443-P at 100% CVN) 23
Slide 24: The bigger potential
The bigger potential For personal use only Potential for new oil and gas fairway between the Carnarvon and Browse Basins on the North West Shelf. Oil and gas has been discovered in the area with gas in Carnarvon’s WA-435-P permit and oil in the adjoining permit (namely in the Nebo-1 well in the WA-6
Slide 25: Identifying significant oil potential
Identifying significant oil potential 15 wells drilled in this large area For personal use only Phoenix 1 & 2 had extensive gas columns 4 wells had good oil shows At least 1 well had an oil column La Grange-1; 1983, tr. fluor. at JO; Mid Tr., charge limited by faults Bedout-1; 1971, dry; JO no struc
Slide 26: New data and technical work
New data and technical work For personal use only Basal Cretaceous structuring Oil potential The Phoenix 3D and regional 2D data acquired in 2010 has provided important new information. Significant oil shows in regional wells L Triassic structuring drilled on 2D (are being reassessed and Gas potenti
Slide 27: Thailand L52/50 and L53/50 (50% CVN)
For personal use only Thailand L52/50 and L53/50 (50% CVN) 27
Slide 28: Onshore oil in Khian Sa Basin
Onshore oil in Khian Sa Basin Oil-focused blocks on trend with the oil-producing Northern Chumphon Basin Schematic For personal use only Chumphon Basin, to the north in the Gulf of Nang Nuan B-01 Thailand prospects contain greater than 20 million bbls (gross) recoverable oil Khian Sa Basin is the la
Slide 29: Enhanced management team
Enhanced management team For personal use only • Mr Adrian Cook – Chief Executive Officer • Commercially and financially qualified executive with over 25 years experience including as Managing Director of Buru Energy Limited, a senior executive in Clough Limited’s oil and gas construction business a
Slide 30: Multiple upcoming catalysts
Multiple upcoming catalysts For personal use only • Increase oil production to 3,000 bopd gross • 10 well sandstone development drilling program commenced with positive initial results Near Term • Well work overs & reintroduction of Agricultural Land Reform Office (“ALRO”) production (by Dec 2012) •
Slide 31: Appendix 1. Key risks
For personal use only Appendix 1. Key risks 31
Slide 32: Key risks
Key risks For personal use only Risk factor Description Estimation of reserves The estimation of oil and natural gas reserves involves subjective judgements and determinations based on geological, technical, contractual and economic information. It is not an exact calculation. In particular, the str
Slide 33: Key risks
Key risks For personal use only Risk factor Description Exchange rate Carnarvon’s presentation currency, which is the currency in which it reports its financial results, is AUD. Accordingly, the fluctuations value of Carnarvon shares is exposed to fluctuations in the AUD/ USD and AUD/THB exchange ra
Slide 34: Key risks
Key risks For personal use only Risk factor Description Exploration risk Oil and gas exploration is a high risk operation. The future value of Carnarvon will depend on its ability to find and develop oil and gas that is economically recoverable. There can be no assurance that Carnarvon's planned exp
Slide 35: Key risks
Key risks Risk factor Description For personal use only Environmental matters Carnarvon requires approvals for production and development operations under various regulations and guidelines. Carnarvon’s operations are subject to numerous stringent and complex laws and regulations governing the disch
Slide 36: Key risks
Key risks For personal use only Risk factor Description Licensing and title Carnarvon requires approval from relevant regulatory bodies to operate petroleum properties in Thailand, Australia and any other countries in which it may operate. If these approvals are revoked in Thailand or not granted in
Slide 37: Key risks
Key risks For personal use only Risk factor Description General economic conditions Carnarvon’s operating and financial performance is influenced by a variety of general economic and business conditions including the level of inflation, interest rates and government fiscal, monetary and regulatory p
Slide 38: Appendix 2. Offer jurisdictions
For personal use only Appendix 2. Offer jurisdictions 38
Slide 39: Offer jurisdictions
Offer jurisdictions For personal use only International Offer Restrictions This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. New Shares may not be offered or sold in any country outside Australia except
Slide 40: Offer jurisdictions - New Zealand
Offer jurisdictions For personal use only New Zealand This document has not been registered, filed with or approved by any New Zealand regulatory authority under or in accordance with the Securities Act 1978 (New Zealand). The New Shares are not being offered or sold in New Zealand, or allotted with
Slide 41: Offer jurisdictions - Switzerland
Offer jurisdictions Switzerland For personal use only The New Shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange ("SIX") or on any other stock exchange or regulated trading facility in Switzerland. This document has been prepared without regard to the
Slide 42: Disclaimer
Disclaimer For personal use only The information in this document, that relates to oil exploration results and reserves, is based on information compiled by the Company’s Chief Operating Officer, Mr Philip Huizenga, who is a full-time employee of the Company. Mr Huizenga consents to the inclusion of
Slide 43: For personal use only
For personal use only Ground Floor 1322 Hay Street West Perth WA 6005 Telephone: +61 (8) 9321 2665 Fax: +61 (8) 9321 8867 www.carnarvon.com.au
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