Melbana Energy Limited · ASX:MAY
Melbana Energy — MEO Australia — Shareholder Meeting (October 2014)
16 slides from Melbana Energy's shareholder meeting presentation, Oct 30, 2014
Slide 1: 20th Annual General Meeting: Repositioning our Company
20th Annual General Meeting “Repositioning our Company” October 30th 2014 1 MEO Australia Limited
Slide 2: Disclaimers
Disclaimers Forward-looking Statements and Resources Forward-looking Statements This presentation includes certain forward-looking statements that have been based on current expectations about future acts, events and circumstances. These forward-looking statements are, however, subject to risks, unc
Slide 3: Outline: Repositioning our Company
Outline “Repositioning our Company” in a rapidly changing business environment Ongoing Business Activities • NT/P68 – Blackwood & Heron • Tassie Shoal Projects • WA-454-P – Breakwater and Marina • Withdraw from selected acreage Business Environment MEO Australia Limited • Challenging environment for
Slide 4: Ongoing Business Activities: NT/P68 Heron & Blackwood
N N TT // PP 66 88 Ongoing Business Activities NT/P68 – Heron & Blackwood Farmin status: EVANS Eni provided formal notices under the Farmin SHOAL Evans Shoal North-1 Agreement on 28th October: BLACKWOOD , ,Evans Shoal-2 Evans Shoal-1 • Elected not to drill an additional well on the Blackwood Area
Slide 5: Ongoing business activities: Tassie Shoal business development
Ongoing business activities Tassie Shoal business development BAROSSA Continued existing strategy EVANS SHOAL Joint Petroleum • Ongoing business development and technical assessment Development BLACKWOOD Area CALDITA with potential midstream investors NT/P68 CHUDITCH HERON Tassie Shoal Projects Gas
Slide 6: WA-454-P: 50/50 JV with Origin Energy
Ongoing Business Activities WA-454-P: 50/50 JV with Origin Energy Breakwater: Darwin • Large prospect with potential for gas and oil Gulf of Mexico style Salt • Defined on high quality 3D seismic data dome Plays PETREL • 89m water depth suitable for jack-up drilling rig FRIGATE • Multiple objectives
Slide 7: Business environment
Business environment Challenging for junior explorers, compounded by softening oil prices • Suppressed risk appetite for conventional exploration • Increasing costs for offshore exploration • Oversupply in global LNG market • Rising costs impacting Australian LNG competitiveness • Soft farm-out mark
Slide 8: Adapting to the prevailing business environment
Adjusted business activities Adapting to the prevailing business environment • Value realisation initiative • Ongoing operating cost reductions • Relinquish/divest underperforming assets • New Venture focus on shorter cycle time projects • Preference for oil projects (faster payback) • Shift to onsh
Slide 9: Value realisation initiative
Adjusted business activities Value realisation initiative Tassie Shoal Value Realisation Initiative BAROSSA EVANS SHOAL Joint Petroleum • Appointed UBS to manage process Development Area BLACKWOOD NT/P68 CALDITA • Identified new parties with specific interest in the CHUDITCH HERON Tassie Shoal Metha
Slide 10: Operating cost reductions
Adjusted business activities Operating cost reductions • Salary freeze implemented since 2012 • Directors fee reductions with effect from 1st October 2014 • Targeted reduction in staffing numbers while retaining maximum capability • Head office relocating to smaller space • Jakarta Office reduced sp
Slide 11: Acreage management
Adjusted business activities Acreage management • South Madura PSC – Surrendered Oct 2013 on G2/48 Concession PSC expiry Seruway PSC • G2/48 Concession – Surrendered Jan 2014 after JV partner withdrawal left MEO with 100% well South Madura PSC Tassie Shoal obligation AC/P50 AC/P51 NT/P68
Slide 12: Forming strategic alliances with strong financial partners
Adjusted business activities Forming strategic alliances with strong financial partners Hongfu Strategic Alliance • Allowed us to screen several opportunities with material existing production • MEO unable to access such opportunities in its own right • MEO technical expertise supplemented by Hongfu
Slide 13: New Ventures focus – lower cost, shorter cycle time, preference for oil
Adjusted business activities New Ventures focus – lower cost, shorter cycle time, preference for oil Focus on: • Proven hydrocarbon plays International Onshore Oil Opportunity • Low cost entry • 1-3 contiguous PSCs • Established infrastructure • Adjacent to currently producing oil • Reserves based a
Slide 14: New Zealand farm-in – oil production plus exploration upside
Adjusted business activities New Zealand farm-in – oil production PLUS exploration upside Puka 3: • Targeted thicker, better quality sands above prognosed Puka oil water contact (OWC) PEP 51153 Waihapa • Encountered thicker than expected reservoir section but OWC shallower than expected Shannon Puka
Slide 15: Consider M&A where metrics make sense
Adjusted business strategy Consider M&A where metrics make sense Merger & Acquisition considerations • Consolidation amongst ASX listed junior E&P companies is inevitable – Too many undercapitalised companies – Cost synergies, capital allocation • Acquire projects that utilise MEO’s tax losses 1+1 >
Slide 16: The year ahead
The year ahead “Repositioning the company” Tassie Shoal Projects TSMP2 • Adapt business model LNG Plant Methanol Plants – Business environment to remain challenging TSLNG TSMP1 – Opportunities emerging – a buyers market LNG Storage • Crystallise value in portfolio • Sharp focus on reducing overheads