Carnarvon Energy Limited · ASX:CVN
Carnarvon Energy — Carnarvon Petroleum — Investor Presentation (May 2018)
47 slides from Carnarvon Energy's investor presentation, May 11, 2018
Slide 1: Capital Raising Presentation
For personal use only Capital Raising Presentation 11 May 2018
Slide 2: Disclaimer
Disclaimer For personal use only The Resource estimates outlined in this report have been 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 years’ experience in petroleum exploration and engineering. Mr Huizenga
Slide 3: Corporate Snapshot
Corporate Snapshot For personal use only Shareholder analysis after placement 1. ASX code CVN 2. Share price (09/05/18) 17.5 cents 3. Market capitalization (09/05/18) $180 million 4. Shares on issue before placement 1,029,569,809 5. Shares on issue after placement 1,152,569,809 6. Cash on hand (31/0
Slide 4: Equity Raising
Equity Raising For personal use only Placement • Placement of approximately 123 million new fully paid ordinary shares to institutional and sophisticated investors to raise approximately $16 million (before costs) under Carnarvon’s available placement capacity pursuant to ASX Listing Rules 7.1 • Sha
Slide 5: Snapshot
Snapshot For personal use only Phoenix project Successfully proven the existence of an entirely new oil and gas basin Now proving the presence of economically recoverable oil and gas Buffalo project Redeveloping a high value oil field with the aid of new technology Other projects Working up “gems” c
Slide 6: Extensive project portfolio
Extensive project portfolio For personal use only Clear & consistent strategy To commercialise high value projects on the North West Shelf 9 projects in the portfolio with 2 progressing to commercialisation 6
Slide 7: Active portfolio
Active portfolio For personal use only Phoenix project NOW Phoenix South-3 well oil & gas appraisal well May Dorado-1 well oil & gas exploration well Buffalo project 2018 Buffalo-10 well planning oil field appraisal & first production well Other projects 2018 Farm-out(s) building additional value in
Slide 8: Phoenix project
For personal use only 8 Phoenix project
Slide 9: Oil & gas resources
Oil & gas resources For personal use only Discovered to date 82 million barrels of oil equivalent (2C, CVN 20%) being 332 billion cubic feet of gas plus 27 million barrels of oil & condensate1 Phoenix South-3 and Dorado-1 well primary targets 255 million barrels of oil equivalent (mean, CVN 20%) bei
Slide 10: Drilling snapshot
Drilling snapshot For personal use only Phoenix South-3 well Successful Roc-2 well Dorado-1 well drilling NOW flow test in 2016 starting in May 2018 using Development Driller-1 rig 55 mmscf/d + 3,000 bopd using the Ensco 107 rig 10
Slide 11: Drilling snapshot
Drilling snapshot Phoenix Phoenix Roc-2 Dorado-1 For personal use only Roc-1 South-3 South-2 well well well well well (2016) (2016) (2018) (2018) (2017) Material target + upside Dorado-1 will target the same interval successful at Roc & PS with upside in deeper sands 71% Probability of success Phoen
Slide 12: Oil and gas revenue streams
For personal use only Oil revenue stream Asian markets Dual income Gas revenue stream stream asset Domestic markets Diesel replacement in mining Export markets Port Hedland Karratha Iron ore gas plant mining Potential future 12 gas pipelines
Slide 13: Strategic asset
Strategic asset For personal use only Proof of geological model achieved Four oil, gas and condensate discoveries from four wells drilled confirms new basin Commercial project Phoenix South-3 and Dorado-1 intended to cement Phoenix project commerciality Strategic asset Dual income stream asset in 10
Slide 14: Buffalo project
For personal use only 14 Buffalo project
Slide 15: Opportunity
Opportunity For personal use only W E Fact: Opportunity: Buffalo field has produced Produce 31 million barrels more from 20 million barrels of oil untapped attic & unswept areas OOWC 31 million barrels is an independently audited 2C recoverable resource 15 Refer to Carnarvon’s ASX announcement of 28
Slide 16: 1996 - BHP Petroleum tests Buffalo-1 well
1996 - BHP Petroleum tests Buffalo-1 well For personal use only The first mobile phone Buffalo 3D seismic to have MP3 music capability reservoir is difficult to identify 16
Slide 17: 2018 – clear technological advances
2018 – clear technological advances For personal use only LG’s curved screen Buffalo 3D seismic smart phone reservoir is clear with new technology 17
Slide 18: Economics
Economics For personal use only High margin field expected to be producing before Phoenix Oil 31 mmbbls1 with 40,000 bopd expected initial flow rate1 Revenue US$2.2 billion2 Development cost US$150 million3 Operating costs US$400m to $500m (over 5 year life)3 Notes 1. recoverable 2C resource indepen
Slide 19: Buffalo-10 well
Buffalo-10 well For personal use only Plan to drill Buffalo-10 well Buffalo-10 drilling in 25 metres of water with jackup rig preparations are well advanced 19
Slide 20: Field development plan
Field development plan For personal use only Plan is for a well head platform A leased FPSO will receive oil to host 3 production wells from the well head platform 20
Slide 21: Buffalo moves to Timor-Leste
Timor-Leste For personal use only Buffalo moves to Timor-Leste Under Treaty signed 7 March 2018 Australian equivalent Security of title, legal rights, fiscal terms Actioning now Production Sharing Contract Buffalo-10 drilling plans Field redevelopment plans 21
Slide 22: Other projects
Other projects For personal use only Labyrinth project Farm out commenced Feb 2018 The plan is to acquire 3D seismic over the preferred prospect Then drill the preferred prospect 22
Slide 23: Wrap up
Wrap up For personal use only NOW Phoenix South-3 oil & gas appraisal well May Dorado-1 oil & gas exploration well 2018 Buffalo-10 planning high margin oil production 2018 Farm-outs building additional value in oil & gas assets 23
Slide 24: Supplemental information
For personal use only Supplemental information
Slide 25: Supplemental information to the presentation
For personal use only Supplemental information to the presentation Content: 1. Project portfolio summary 2. Buffalo project 3. Phoenix project 4. Labyrinth project 5. Board & management 6. Key risks 7. Foreign selling restrictions 25
Slide 26: Portfolio – permit locations and equities
Portfolio – permit locations and equities For personal use only 26
Slide 27: Project portfolio - summary
For personal use only Project portfolio - summary Project Permits Equity holders Status Buffalo WA-523-P CVN 100% Appraisal to oil field redevelopment Phoenix WA-435-P & WA-437-P CVN 20% & Quadrant Appraisal and exploration of discovered oil and Energy 80% gas Phoenix WA-436-P & WA-438-P CVN 30% & Q
Slide 28: Buffalo project - background
For personal use only Buffalo project - background The Buffalo field was discovered in October 1996, when BHP Petroleum tested the Buffalo-1 well. The well flowed at 12,000 bpd of light 53° API oil. The oil has a particularly low gas oil ratio of 110 scf/bbl. The field was operated by BHP Petroleum
Slide 29: Buffalo project – technology solution
For personal use only Buffalo project – technology solution Based on Carnarvon’s experience using new FWI (Full Waveform Inversion) technology in Australia in the Phoenix project, Carnarvon was in a position to foresee its potential for this and other new technology in other areas; Buffalo being one
Slide 30: Phoenix project - background
For personal use only Phoenix project - background The Phoenix project (WA-435-P, WA-436-P, WA-437-P & WA-438-P) is located in the Bedout sub- basin approximately 150 kilometres offshore from Port Hedland in Western Australia. During the global financial crisis of 2008 and 2009 Carnarvon and its par
Slide 31: Phoenix project – Phoenix South
For personal use only Phoenix project – Phoenix South In late 2016 / early 2017 the Phoenix South-2 well intersected the top of the primary reservoir and discovered oil and gas, but did not fully evaluate the resource due to the level of pressure encountered. This was an encouraging result, and as s
Slide 32: Phoenix project - Dorado
For personal use only Phoenix project - Dorado The Dorado prospect is only some 15 kilometres south of the Roc discoveries with an interpreted multi sand reservoir covered by the same top shales that seal in the Roc oil and gas. Those shales are also interpreted as providing the side seal in a chann
Slide 33: Phoenix project – development concepts
For personal use only Phoenix project – development concepts The oil and gas discovered to date and to be targeted in 2018 very much suits a development that ties the oil and gas back to a central well head platform and offshore primary processing. Oil would be held in a Floating Production Storage
Slide 34: Labyrinth project - background
For personal use only Labyrinth project - background The Labyrinth project (WA-521-P) is located in the Rowley Sub-basin, offshore North West Shelf, north of Carnarvon’s Roc and Phoenix South hydrocarbon discoveries. The interpretation of newly reprocessed 2D seismic in the permit has revealed sever
Slide 35: Labyrinth project - volumes
For personal use only Labyrinth project - volumes Three source rocks are mature and generating today in WA-521-P, comprising the proven Lower Jurassic Murat siltstone, Lower Depuch carbonaceous shales and Upper Triassic marine shale of the Upper Keraudren formation. Sizable structures and prolific s
Slide 36: Board of Directors
For personal use only Board of Directors Peter Leonhardt – Chairman An independent company director and adviser with extensive business, financial and corporate experience. Peter is a Chartered Accountant, former Senior Partner with PricewaterhouseCoopers and Managing Partner of Coopers & Lybrand in
Slide 37: Management team
For personal use only Management team Adrian Cook – Managing Director & Chief Executive Officer Philip Huizenga – Chief Operating Officer Dr Stephen Molyneux – Exploration Manager Dr Jeff Goodall – Chief Geologist Andrew Padman – Chief Geophysicist Thomson Naude – Chief Financial Officer and Company
Slide 38: Key Risks
Key Risks For personal use only • This section discusses some of the key risks associated with an investment in Carnarvon's Shares. The risks may affect the future operating and General financial performance of Carnarvon and/or the value at which the Shares may trade in the future. • The risk factor
Slide 39: Key Risks
Key Risks For personal use only • The future profitability of Carnarvon and the value of its Shares are directly related to the results of exploration, development and production Exploration & activities as well as costs and prices as noted above. Oil and gas exploration and production however invol
Slide 40: Key Risks
Key Risks For personal use only • It may not always be possible for Carnarvon to participate in the exploitation of successful discoveries made in any areas in which Carnarvon has Ability to an interest. exploit • Such exploitation will involve the need to obtain the necessary licences or clearances
Slide 41: Key Risks
Key Risks For personal use only • Carnarvon is planning to operate in Timor-Leste where there may be a number of associated risks over which it will have no, or limited control. Risk of foreign These may include economic, social, or political instability or change, nationalisation, expropriation of
Slide 42: Key Risks
Key Risks For personal use only • Carnarvon is currently, and may in the future become a party to joint venture or joint operating agreements for the licences, leases and permits in Joint Ventures which it holds interests. Subject to any sole risk development rights which may exist in the joint vent
Slide 43: Key Risks
Key Risks For personal use only • Carnarvon is exposed to risks arising from the manner in which Australian, Timor-Leste and other international tax regimes may be Tax amended, applied, interpreted and enforced. Any actual or alleged failure to comply with, or any change in the interpretation, appli
Slide 44: Foreign Selling Restrictions
Foreign Selling Restrictions For personal use only International Offer Restrictions This document does not constitute an offer of new shares of CVN in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offe
Slide 45: Foreign Selling Restrictions
Foreign Selling Restrictions For personal use only Singapore This document and any other materials relating to the New Shares have not been, and will not be, or registered as a prospectus with the Monetary Authority of Singapore. Accordingly, this document and any other document or materials in conn
Slide 46: Foreign Selling Restrictions
Foreign Selling Restrictions For personal use only United Kingdom Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services
Slide 47: Think Different, Act Different
For personal use only Think Different Act Different 47
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