Synergia Energy Ltd · LSE:SYN
Synergia Energy — Oilex — Investor Presentation (July 2012)
37 slides from Synergia Energy's investor presentation, July 2012
Slide 1: Investor Presentation July 2012
Investor Presentation July 2012
Slide 2: Disclaimer
DISCLAIMER The presentation in this projected form and as verbally presented (Presentation) is provided on the basis that none of the Company nor its respective officers, shareholders, related bodies corporate, partners, affiliates, employees, representatives and advisers make any representation or
Slide 3: Contents
CONTENTS Investment Proposition Cambay Current Status Cambay Forward Plan Exploration Conclusion Appendices Cambay-76H work over rig operations 3
Slide 4: Investment Proposition
OILEX LTO INVESTMENT PROPOSITION
Slide 5: Company Overview
COMPANY OVERVIEW Oilex Ltd Listed on AIM and ASX Flagship project is the Cambay Project onshore Gujarat, India 45% interest and Operator Partner - Gujarat State Petroleum Corporation Ltd Transferring US “shale gas” technology to large tight reservoirs Attractive exploration target offsho
Slide 6: Cambay Tight Reservoir Project Summary
CAMBAY TIGHT RESERVOIR PROJECT SUMMARY Large acreage position ~40,000 acres SUBSTANTIAL Independent assessment by Netherland Sewell & Associates Inc. (Oct 2011) RESOURCE 222 BCF gas and 37 MMbbl oil Unrisked Contingent Resources (2C net OEX) Substantial prospective resource upside in deeper
Slide 7: Market and Infrastructure
MARKET AND INFRASTRUCTURE Gujarat - Oil and Gas Hub of India India’s Natural Gas Deficit Cambay Project Indian gas market is one of the fastest growing in the world Source: international Energy Agency Gas demand to increase at 5.4% per annum over 1,400km integrated gas grid operated on an open
Slide 8: Cambay Project
CAMBAY PROJECT NSAI Independent Resource Assessment Unrisked Contingent Resources (Net OEX 45%) 1C 2C 3C Natural Gas (BCF) 80 222 482 Oil (MMbbls) 14 37 80 Unrisked Prospective Resources (Net OEX 45%) Low Best High Natural Gas (BCF) 116 420 1,634 Oil (MMbbls) 16 63 248 Assessment based on extensiv
Slide 9: Cambay Project stratigraphic subdivision
CAMBAY PROJECT Stratigraphic Subdivision Well tests from vertical wells confirm productivity of X + Y zones Limited well intersections in prospective resources zones– substantial upside to be evaluated C‐20 5.20 km C‐40 C‐76H Depth m msl Top X Contingent Top Y Resources Top Z NSAI 180-200 Top 18
Slide 10: Cambay Current Status
CAMBAY CURRENT STATUS DRILLING COMPLETION STIMULATION OPERATIONS WELL RESULTS
Slide 11: Cambay-76H Well
CAMBAY-76H WELL Tight Reservoir Technology Transfer Long reach horizontal well with large scale fracture stimulation - first in India Applied modern North American technologies (SBM, LWD, rotary steerable system) Drilled, completed and stimulated successfully in 37 days All 8 stimulation sta
Slide 12: Cambay-76H Well: Formation Over Pressure
CAMBAY-76H WELL Formation Over Pressure Unexpected abnormal overpressure C76H Formation Pressure Uncertainty experienced Drilling Mud Weight High pressure is normally advantageous for tight reservoir exploitation Injection Tests Milling operations disrupted – well Well Control Operations succe
Slide 13: Cambay-76H Well: Operational Issues
CAMBAY-76H WELL Operational Issues Coil tubing milling assembly stuck Down hole obstructions required milling Operations suspended while fishing equipment manufactured and mobilised Well control issues - gas flared Drill pipe integrity issues Value proposition intact 13
Slide 14: Cambay-76H Well: Positive Well Results to Date
CAMBAY-76H WELL Positive Well Results to Date Hydrocarbons flow to surface Sustained formation over-pressure Micro-seismic interpretation Stimulated rock volume comparable to North American tight reservoir analogues Target fracture lengths (av. ~112m) achieved Revised production models i
Slide 15: Cambay-73 Y Zone Production and Flow Data
CAMBAY-73 Y Zone Production and Flow Data Vertical well drilled and completed in 2008 Small scale fracture stimulation (86 tonnes) 10 metres active perforations in Y Zone Geologically representative of Cambay-76H section Liquids rich gas composition Flow back, production and test started
Slide 16: Cambay Forward Plan
CAMBAY FORWARD PLAN OFFSET WELL APPRAISAL & DEVELOPMENT OPERATIONAL CAPABILITY
Slide 17: Offset Well
OFFSET WELL Offset Well Propose to drill into Cambay-76H stimulated rock volume C76H New Production test Horizontal Technical well design studies using identified North American drilling experts Comprehensive subsurface analysis of Access to Stimulated offset well test results – integrate wi
Slide 18: Cambay Project Indicative Forward Work Programme
CAMBAY PROJECT Indicative Forward Work Programme D Location Pilot development project • Vertical Pilot + Horizontal • Core and log data to correlate C76H production test for early production and • Optimised well + completion design • Book X + Y zone reserves + early production potential cash flow
Slide 19: Cambay Project Indicative Project Schedule
CAMBAY PROJECT Indicative Project Schedule Propose to drill Offset Well, 3 vertical + 2 horizontal wells in the next 18 – 24 months 2012 2013 Production Offset Well test result Vertical Wells D, G, A wells Core & Log Analysis Book contingent resources Horizontal Wells (D + G) D, G wells Production
Slide 20: Exploration
EXPLORATION TIMOR SEA JPDA PROSPECT
Slide 21: Timor Sea Exploration
TIMOR SEA EXPLORATION Joint Petroleum Development Area JPDA 06‐103 Oilex:10%, Operator 2 prospects identified Bazartete prospect 70.8 million barrels of oil Mean Prospective Resources (unrisked 100% basis) 23% chance of success. Key risk - charge Discussions for exploration well and rig sl
Slide 22: Timor Sea Exploration: PSDM Interpretation
TIMOR SEA EXPLORATION Joint Petroleum Development Area Recent PSDM processing provided breakthrough in upgrading Bazartete structure PSDM Interpretation Bazartete Map Area 73 sq. km LCC 3470 mss Depth Range 3300 – 3470 m Bazartete B Original PSTM LCC 3470 m Interpretation Map Area 15.9 sq. km Baza
Slide 23: The Opportunity
OILEXLTD THE OPPORTUNITY
Slide 24: Conclusion
CONCLUSION The opportunity to invest in… Approaching production test to assess the commerciality of the significant Cambay Project – Substantial independently verified resource base – Strong energy market fundamentals – Strategic location – hub of Indian distribution network – Near term production
Slide 25: Appendix
APPENDIX CORPORATE CAMBAY BASIN INDIA GAS MARKET TIGHT OIL AND GAS RESERVOIRS NORTH AMERICAN COMPARISON
Slide 26: Corporate Overview
CORPORATE OVERVIEW Share Price Performance Capital Structure (at 20 July 2012) Market Listing AIM:OEX ASX:OEX Shares issued 253.3 million Options and performance rights 31.75 million Share price $0.095 £0.059 Market capitalisation $24.1 million £14.9 million 12 months share price range $0.09 - $0.43
Slide 27: Board of Directors and Management
BOARD OF DIRECTORS AND MANAGEMENT Max Cozijn (Non-Executive Chairman), BComm, CPA MAICD Chairman since the Company listed on the ASX in 2003, Mr Cozijn has over 31 years experience in the administration of listed mining and industrial companies. He is a Non-Executive Director of Carbon Energy Limi
Slide 28: Cambay Project History and Location
CAMBAY PROJECT Project History Project Location 1957 • Field discovered by ONGC • 50 BCF produced from Oligocene shallow 1957-92 reservoirs • 63 wells drilled (36 into deeper Eocene) 1994 • PSC awarded to Niko and GSPC • Oilex farms in (45%, Operator) 2005-06 • 3D seismic acquired over contract area
Slide 29: Cambay Basin
CAMBAY BASIN N – S Section along Basin Axis 29
Slide 30: NSAI's Assessment of Hydrocarbons In-Place
CAMBAY PROJECT NSAI’s Assessment of Hydrocarbons In-Place Discovered In-Place Volume Estimate Low Best High Zone Oil MMbbl Gas BCF Oil MMbbl Gas BCF Oil MMbbl Gas BCF X 309 311 667 654 1,170 1,110 Y 522 360 965 660 1,718 1,186 Total – Gross 831 672 1,633 1,314 2,887 2,296 Total – Net to Oilex 374 30
Slide 31: Cambay Project Well Tests
CAMBAY PROJECT Well Tests Cambay-11 16 historical wells with Cambay-63 Y – flowed trace oil and gas Y – produced little oil evidence of oil /gas Cambay-05 Cambay-20 X – 0.20 MMscfgd + 157 bcpd Y – 3.8 MMscfgd + 125 bcpd Y – 4.1 MMscfgd + 170 bcpd Short term tests from Cambay-73 Cambay-19z Y – 1
Slide 32: Cambay Project Log Interpretation
CAMBAY PROJECT Log Interpretation NuTech Payzones Large number of well penetrations – X zone – 41 wells X Zone Pay is not interpreted – Y zone – 39 wells by conventional ?? X Zone analysis – Deeper Zones – up to 29 wells Log responses Y Zone Pay is similar to indicative of Y Zone conventional pr
Slide 33: Indicative Work Program – Modular Early Production System
CAMBAY PROJECT Indicative Work Program – Modular Early Production System Modular system application for ramp up production Indicative EPS production rate up to 20 MMscf/d $millions / mmscfd Produce Cambay 76H and future delineation wells on success through EPS Unit of capacity cost reduces a
Slide 34: Cambay Project – PSC Terms
CAMBAY PROJECT – PSC TERMS One of first PSCs in India No relinquishment requirement Maximum government share is 35% (recent PSC’s government share as high as 85%) 34
Slide 35: Strong Domestic Demand for Natural Gas
STRONG DOMESTIC DEMAND FOR NATURAL GAS Primary Energy Composition India’s Natural Gas Deficit 2,500 BCF 500 India World Average 442 444 408 394 2,000 400 339 15% 1,500 300 31% 32% 37% 1,000 200 23% 500 100 6% - - 1990 2007 2008 2009 2010 26% 30% Nature Gas Production Nature Gas Consumption Coal Oil
Slide 36: Unconventional Gas Industry Overview
UNCONVENTIONAL GAS INDUSTRY OVERVIEW Horizontal Drilling and Hydraulic Fracturing Shale Gas Production in the USA 3,500 3,110 3,000 2,500 2,116 2,000 1,500 1,293 1,000 1,000 800 700 500 ‐ 2004 2005 2006 2007 2008 2009 USA Tight/Shale Oil and Gas production has increased substantially over the last
Slide 37: North American Tight Reservoirs
NORTH AMERICAN TIGHT RESERVOIRS Cambay Eocene - North American Comparison Basin / Block Barnett Fayetteville Eagle Ford Cambay* Haynesville Marcellus Woodford Antrim New Albany X + Y Zones Estimated Basin 5,000 9,000 12,000 4,000 9,000 95,000 11,000 12,000 43,500 Area, sq miles Depth, ft 6, 500-8,50