Melbana Energy Limited · ASX:MAY
Melbana Energy — Shareholder Meeting (November 2016)
25 slides from Melbana Energy's shareholder meeting presentation, Nov 3, 2016
Slide 1: Annual General Meeting: Managing Director's Presentation
Annual General Meeting: Managing Director’s Presentation 3 November 2016
Slide 2: Disclaimer
Disclaimer Forward-looking Statements and Resources Summary of information: This presentation contains general and background information about MEO’s activities current as at the date of the presentation and should not be considered to be comprehensive or to comprise all the information that an inve
Slide 3: Corporate Overview
Corporate Overview 3
Slide 4: Company Overview
Company Overview • ASX listed (ASX: MEO) petroleum exploration company • Only ASX listed company with Cuban energy industry exposure – 100%* interest in Block 9 PSC, Cuba • Identified exploration potential in Cuba Block 9 for over 8 billion barrels of oil-in-place with Prospective Resources of 395 m
Slide 5: Corporate Snapshot
Corporate Snapshot Capital Structure Share Price Share price (as at 31/10/2016) A$0.030 Volume Share Price Shares on issue 953.2m 5 140 Options on issue (exercise price $0.50) 2.5m 120 4 Share Performance Rights 26.3m 100 3 Millions 80 Cents Market capitalisation ~A$29m 2 60 Approx cash position ~A$
Slide 6: Board & Management
New Leadership Under MD Peter Stickland and New Board Board & Management Board of Directors Peter Stickland Andrew Purcell Michael Sandy Managing Director Non-Executive Non-Executive & CEO Chairman Director Senior Team Colin Naylor Robert Zammit Errol Johnstone Dean Johnstone Dr. Rafael Tenreyro CFO
Slide 7: Cuba
7 MEOAustralia
Slide 8: Cuba Block 9 - Positioned in Oil Rich Highly Prospective Area
Cuba Block 9 - Positioned in Oil Rich Highly Prospective Area On trend with existing producing fields, very significant oil potential Positioning • Block 9 PSC (2,380 km2 or 588,000 acres) located onshore and close to infrastructure • MEO (100%*) awarded Block 9 PSC in September 2015 for 25 year ter
Slide 9: Cuba Oil and Gas Potential - Untapped Region of the Gulf of Mexico
Cuba Oil and Gas Potential - Untapped Region of the Gulf of Mexico MEO has early mover advantage into this significantly under explored region Format?? Cuba – Significant Undiscovered Potential • The Gulf of Mexico is one of the world’s great petroleum mega provinces - Cuba represents the under-expl
Slide 10: Cuba Block 9 – Resource Potential
Cuba Block 9 – Resource Potential Multi-billion barrel oil potential identified so far in just 1 of 3 oil plays Technical Assessment Havana Bolanos-1 (1991) recorded a recovery Cuba • Identified the following three play types: Varadero Field is the largest oil field of 22° API oil from Upper Sheet i
Slide 11: Potential of A2 Lead at the Lower Sheet
Potential of A2 Lead at the Lower Sheet 222 million barrel high side potential with an estimated 25% chance of success • Large structure (up to 44km2) at Lower Sheet objective Depth B B’ m • Reservoir is a conventional, fractured carbonate Bolanos‐1 Guadal‐1 0 • Recoverable volumes conservatively es
Slide 12: Marti-5 highlights potential of Lower Sheet in Western Area of Block 9
Marti-5 highlights potential of Lower Sheet in Western Area of Block 9 Old well drilled off structure points to potential of nearby leads • Marti-5 (drilled 1984) recovered lighter oil (24°API) Depth A A’ and had oil shows over a 390 metre gross interval m Marti-5 from the Lower Sheet 0 Tertiary • L
Slide 13: Cuba - Re-emerging as an investment destination
Cuba - Re-emerging as an investment destination Internal changes and start of normalization of relations with US having positive impact • Cuba has implemented an attractive fiscal regime: - New Law of Foreign Investment in 2014, including 8 year profit tax exemption • In December 2014 US President O
Slide 14: Investigating Cuba Block-9 Operating Environment
Investigating Cuba Block-9 Operating Environment Accessible area in close proximity to active oil industry • Block 9 consists largely of low-lying farm land • A number of sealed roads cross Block 9 • Largest nearby city is Cardenas (population ~100,000) approximately 5km west of Block 9 Modern drill
Slide 15: Cuba Block 9 – Near Term Activities
Cuba Block 9 – Near Term Activities Expand resource base and investigate potential for early drilling Havana • Further updates on resource potential in Bolanos-1 (1991) recorded a recovery Cuba coming months Varadero Field is the largest oil field of 22° API oil from Upper Sheet in Cuba with over 11
Slide 16: Australia & New Zealand Portfolio
Australia & New Zealand Portfolio 16
Slide 17: Onshore New Zealand - PEP 51153 (MEO 30%, non-operator)
Onshore New Zealand - PEP 51153 (MEO 30%, non-operator) Potential 2017 drilling of Pukatea prospect • Considering drilling Pukatea in Q4 2017. Decision by Joint Venture Puka expected by end 2016 PEP 51153 Waihapa • Tag Oil subsidiary recently appointed operator • Pukatea (formerly Shannon) Prospect:
Slide 18: Northern Australia Acreage and Projects
Northern Australia Acreage and Projects Discrete upstream projects adjacent to proven hydrocarbons ABADI GREATER SUNRISE BAROSSA Kupang Kupang EVANS SHOAL Joint Petroleum BLACKWOOD CALDITA Development HERON Area BAYU‐UNDAN Tassie Shoal Projects Concept TSMP2 TSMP1 TSLNG Darwin Darwin
Slide 19: WA-488-P (MEO 100%) – Beehive Giant Oil Prospect
WA-488-P (MEO 100%) – Beehive Giant Oil Prospect Beehive being upgraded with recent seismic reprocessing before farmout Darwin • Significant, multi billion barrel oil prospect • Potentially the largest undrilled oil prospect offshore Australia PETREL • Shallow water, suitable for lower cost jack-up
Slide 20: Tassie Shoal Projects
Tassie Shoal Projects Shallow water site, innovative low cost development paths for regional stranded gas • 100% owned by MEO • Region has substantial undeveloped high CO2 gas that needs a low cost development solution • Methanol manufacturing uses gas with high CO2 (up to 30%) as feedstock for valu
Slide 21: AC/P50 & AC/P51 (MEO 100%*): Multiple oil targets
AC/P50 & AC/P51 (MEO 100%*): Multiple oil targets MEO fully carried through 3D seismic reprocessing • Identified material Ramble On and Jur’maker oil prospects in proven petroleum system defined on modern 3D seismic data • Suitable for lower cost jack-up drilling rig • Potential highlighted by Aurig
Slide 22: Corporate & Activity Pipeline
Corporate & Activity Pipeline 22
Slide 23: Fiscal Discipline
Fiscal Discipline Major cost reduction initiatives implemented & new capital raised • In total a 70% reduction in net administration expenses in past 18 months to ~$2 million p.a. • Discontinued involvement in 5 lower ranking offshore exploration permits in past 12 months • Continually review the po
Slide 24: MEO Indicative Activity Pipeline
MEO Indicative Activity Pipeline Key upcoming activities in Cuba, NZ and Australia 2016 2017 2018 Indicative Permit Activity Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Cuba (Block 9) • Data gathering, studies and reprocessing • “Lower Sheet” prospectivity & resource assessment • Assessment of additional prospectivity
Slide 25: Investment Summary
Investment Summary Refocused strategy targeting projects with appropriate risk reward profile Building a portfolio of high impact drilling opportunities in Cuba and Australia/NZ Unique Cuban leverage with early mover advantage Cuba has excellent oil & gas prospectivity and demonstrated modest operat