Carnarvon Energy Limited · ASX:CVN
Carnarvon Energy — Carnarvon Petroleum — Macquarie Securities Group Mid Cap Oil & Gas Conference 2011
30 slides from Carnarvon Energy's conference presentation, Sep 15, 2011
Slide 1: Corporate Presentation
Corporate Presentation 15 September 2011 For personal use only ASX ANNOUNCEMENT Carnarvon Petroleum Limited (“Carnarvon”) (ASX:CVN) is pleased to provide shareholders with the attached Corporate Presentation given by Mr Adrian Cook, Carnarvon Managing Director, at the Macquarie Mid>cap Oil and Gas C
Slide 2: Macquarie Securities Group Mid Cap Oil & Gas Conference
For personal use only Macquarie Securities Group Mid Cap Oil & Gas Conference 15 September 2011
Slide 3: 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 4: Overview
For personal use only Overview 3
Slide 5: Overview
Overview For personal use only 50% 42.5% Production 7.5% Onshore oil L20/50 L44/43, L33/43 and SW1A 60% Thailand 40% L52/50 and L53/50 Reserves 50% 50% 51% Sandstone reservoirs 25% Volcanic reservoirs Rangkas PSC 24% 50% Exploration 50% Phoenix Blocks South East Asia Australia WA%399P 50% 15% 13% 12
Slide 6: Corporate snap shot
Corporate snap shot For personal use only Market Capitalisation $110m Cash (no debt) (30 June 2011) $15m Profit before exploration write offs (YE 30/6/11) $13m Enterprise value / 2P reserves US$4.50/bbl 2P Reserves (31 Dec 2010) 20mmbbls Proved reserves 4.7mmbbls 2P sandstone reserves 4.4mmbbls Shar
Slide 7: Thailand
For personal use only Thailand 6
Slide 8: Key region for Carnarvon
Key region for Carnarvon For personal use only 2001 – CVN farms in to SW1A producing field Wichian Buri Sandstones Operations Geology Core 2003 – CVN (with SW1A JV) applies for Competency Onshore L33 and L44 exploration permits Thailand Commercial Relationships 2005 new sandstone discoveries 2006 vo
Slide 9: L33/43, L44/43 & SW1A Concessions
L33/43, L44/43 & SW1A Concessions For personal use only Thailand L33/43, L44/43 & SW1A 40% 8
Slide 10: 2006 to 2010 strong reserves growth
2006 to 2010 % strong reserves growth For personal use only 2006 % 2P reserves of 3 mmbbls Since 2006 some 100 new wells drilled Over 10 additional oil fields discovered 2010 – 2P reserves of 20 mmbbls 5 mmbbls proved (1P); 52 mmbbls proved, probable & possible (3P) Sandstone Volcanic 9
Slide 11: 2011 – production
2011 – production For personal use only 2011 primarily centered on the WBEXT discoveries WBEXT wells generated flow rates of up to 5,000 bopd. The WBEXT wells suffered early water incursion Further WBEXT focused drilling couldn’t replicate the results from the earlier wells Production variability co
Slide 12: Future
Future For personal use only Sandstone Reservoirs – production history since 1995 Sandstone reservoirs produced ~400,000 bbls to end of 2010 2P reserves as at end 2010 in the order of 4 million bbls Currently undertaking studies for optimal development Awaiting EIA approval for new well sites to dev
Slide 13: L20/50 Concession
L20/50 Concession For personal use only Thailand L20/50 50% 12
Slide 14: Exploring for on trend oil
Exploring for on trend oil For personal use only On trend with 200 million barrel Sirikit Oil Field (produced over 150 mmbbls & still producing ~20,000bopd) Nong Bua 1 drilled by Shell with oil shows Sirikit Oil Field & potential oil column in sandstone Initial analysis suggested a simple pumping op
Slide 15: Encouraging results
Encouraging results For personal use only Two wells drilled by CVN in 2011 Trap...? Wells drilled in the basin to date have likely As indicated at the time, we were not been drilled on viable structures, due to not expecting a commercial complex geology and sparse 2D data coverage result. Reservoir:
Slide 16: Focus on valid traps
Focus on valid traps Complex faulting on basin margin: good potential for structural closures For personal use only W Chalawan E Chalawan prospect defined on ‘Unc A’ Horizon W E Migration from depocentre Complex faulting and multiple fault terraces on eastern flank of basin Good potential for trappi
Slide 17: L52/50 & L53/50 Concessions
L52/50 & L53/50 Concessions For personal use only Thailand L52/50 & L53/50 50% 16
Slide 18: Early stage exploration
Early stage exploration For personal use only Under explored basin with few valid well tests Close proximity to prolific offshore basins in the Gulf of Thailand Surface geological and structural mapping completed in 2010 Currently acquiring new 2D seismic to infill sparse 1988 vintage data CVN 50% &
Slide 19: Next 1-2 years in Thailand
Next 1%2 years in Thailand For personal use only Exploration – 1%2 wells Appraisal – 1%2 wells Acquire 3D seismic Exploit resources Exploration – 1%2 wells Develop reserves Exploration – 3%6 wells Appraisal – 3%6 wells Development Exploit resources Develop reserves Acquire 2D seismic Exploration – 1
Slide 20: Australia
For personal use only Australia 19
Slide 21: Phoenix – significant value potential
Phoenix – significant value potential For personal use only Material interests + large acreage + discovered gas Interests of 50% & 100% 28,300km2 acreage holding plenty of running room Gas discovered by BP in 1980 Focus on WA 435 P & WA 437 P contains the discovered gas contains new 3D seismic data
Slide 22: Gas discovered - Phoenix-1 well
Gas discovered % Phoenix%1 well For personal use only The Phoenix 1 well reduces key geological risks on multi Tcf accumulations, such as the Phoenix South prospect. Extracts from BP’s Phoenix%1 well Geological Completion Report (July 1980) and Well Evaluation Report (Nov 1980): “Thicker sandstones
Slide 23: New data - 3D and 2D seismic
New data % 3D and 2D seismic For personal use only Building valuable knowledge New image from IAN Phoenix 1 gas discovery Phoenix 2 – tight gas Kerauderan 1 – quality sands New 3D – 1,100km2 New regional 2D – 407km Prospect sizes are significant and range from 0.5 to 3.0 Tcf of recoverable gas. Dril
Slide 24: First images from the 3D seismic data set
First images from the 3D seismic data set For personal use only Phoenix%2 Preliminary 3D visualisation of the Phoenix well 3D seismic survey showing the Base Cossigny Limestone Formation two%way%time surface with Phoenix%1 indicative well, prospect and lead locations discovery well Roc prospect Phoe
Slide 25: Development – standard configuration
Development – standard configuration For personal use only Indicative development configuration from Granherne Concept Study Planning for: Gas & condensate, based on Phoenix well results & regional field assessments. LNG or domgas configuration options. Options to utilise existing domestic gas pipel
Slide 26: Markets – strong regional demand
Markets – strong regional demand For personal use only Asian LNG demand growing rapidly. Western Australian gas demand also growing & remains an important source of energy for the State. Potential gas supply / demand gap being projected by WA Government. Phoenix is close to existing domestic gas pip
Slide 27: Clear plan – achievable timeline
Clear plan – achievable timeline For personal use only Very clear strategy Minimising key risk elements Material prospects & leads Strong interest in the asset Material equity interests Multiple routes to crystalise value In a growing market for gas & LNG The time line above is indicative only 26
Slide 28: Conclusion
For personal use only Conclusion 27
Slide 29: Management's priorities
Management’s priorities For personal use only Steadily improve the base production from sandstone reservoirs (L44/43 & L33/43 Concessions, Thailand). Continue drilling high flowing volcanic reservoirs (L44/43 & L33/43 Concessions, Thailand). Farm%out Phoenix asset to accelerate the drilling of poten
Slide 30: 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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