Carnarvon Energy Limited · ASX:CVN
Carnarvon Energy — Carnarvon Petroleum — Investor Presentation (September 2017)
40 slides from Carnarvon Energy's investor presentation, Sep 12, 2017
Slide 1: Corporate presentation September 2017
For personal use only Corporate presentation September 2017
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: Investment highlights (ASX code: CVN)
For personal use only Investment highlights (ASX code: CVN) Market value $90m* - cash $53m** with no debt Project catalysts - multiple in the next 12 months eg. Phoenix and Buffalo Project cash flows - Return on investment focus and leverage to oil price rise (* 8.8c per share at 31 August 2017 ** a
Slide 4: Buffalo redevelopment project
For personal use only Buffalo redevelopment project 20 million barrels produced over 5 years. CVN focus on central crestal locations 11,000 barrels per day average flow rate. & unswept area in eastern region. 4
Slide 5: Buffalo redevelopment project
For personal use only Buffalo redevelopment project 31 million barrels (2C) independently verified Aug. 2017 - Revenue of US$1.5 billion at current oil prices Attractive field economics - Development cost expected to be <US$5 per barrel (2C case) Low risk oil field redevelopment - Working within hig
Slide 6: Phoenix project
For personal use only Phoenix project Production rate equivalent on Roc-2 flow test could supply 20% of WA’s gas needs Roc-2 well tested 53 mmscf & 2,943 bbls per day 6
Slide 7: Phoenix project
For personal use only Phoenix project Oil and gas in all four wells drilled 2018 drilling objective to firm up commercial volumes - 1.4 Tcf & 108 mmbbls in Roc, Phoenix South & Dorado, gross mid case Phoenix South-3 well - 450m from Phoenix South-2 with oil & gas in Caley interval - Q1 / 2018 start
Slide 8: Phoenix project (Dorado prospect)
For personal use only Phoenix project (Dorado prospect) Caley interval primary target - 545 Bcf of gas & 31 million barrels (gross, Pmean) Dorado-1 well to drill through Caley, Crespin & Milne intervals. 2.5 Tcf of gas & 147 million barrels (gross, Pmean) potential across all sands (Caley to Milne)
Slide 9: Labyrinth project
For personal use only Labyrinth project 1.5 billion barrels in several oil prospects (Pmean) CVN owns 100% of this project beside Phoenix project Finalising technical work now Planning 3D seismic over a 400mmbbl prospect 9 Refer to Carnarvon’s ASX announcements of 13 June 2017 for comprehensive deta
Slide 10: Outtrim project (Belgravia prospect)
For personal use only Outtrim project (Belgravia prospect) s 10
Slide 11: Outtrim project (Belgravia prospect)
For personal use only Outtrim project (Belgravia prospect) 440 Bcf of gas and 18 mmbbls of oil in Belgravia (Pmean) Woodside estimate Swell contains >100 mmboe* Swell-1 well commenced Aug 2017 Belgravia near Macedon gas field facilities * Woodside 2017 Half Year Report 11 Refer to Carnarvon’s ASX an
Slide 12: Wrap up – Business model
For personal use only Wrap up – Business model Oil and gas in North West Shelf of Australia CVN’s portfolio is being progressively matured Clear business model - Low entry cost & high margin project potential - Creating early value through technical work - Managing early risk & cost with partners -
Slide 13: Wrap up – Investment highlights
For personal use only Wrap up – Investment highlights Return on investment focus Leverage to oil price rise Catalysts in next 12 months - Buffalo plans and economics (2017 & 2018) - Belgravia link to Swell-1 well result (Q4, 2017) - Phoenix South-3 well (Q1, 2018) - Dorado-1 well (mid 2018 spud plan
Slide 14: Supplemental information
For personal use only Supplemental information
Slide 15: Supplemental information to the presentation
For personal use only Supplemental information to the presentation Content: 1. Project portfolio summary 2. Oil & gas volume summary 3. Buffalo project 4. Phoenix project 5. Labyrinth project 6. Outtrim project 7. Maracas project 8. Cerberus project 9. Board & management 10. Corporate 15
Slide 16: Project portfolio – permit locations and equities
For personal use only Project portfolio – permit locations and equities Buffalo CVN 100% Labyrinth CVN 100% Maracas CVN 100% Phoenix CVN 20 – 30% Outtrim Cerberus CVN 28.5% CVN 100% 16
Slide 17: 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% & Appraisal and exploration of discovered oil and gas Quadrant Energy 80% Phoenix WA-436-P & WA-438-P CVN 30% & E
Slide 18: Oil & gas volume summary (51 million barrels recoverable net 2C)
For personal use only Oil & gas volume summary (51 million barrels recoverable net 2C) Refer to Carnarvon’s ASX announcements of 14 November 2016, 28 March 2017 & 28 August 2017 for comprehensive details of 18 these volume estimates. These resources were calculated using a combination of probabilist
Slide 19: Oil & gas volume summary (2,480 million barrels recoverable net Pmean)
For personal use only Oil & gas volume summary (2,480 million barrels recoverable net Pmean) Refer to Carnarvon’s ASX announcements of 14 November 2016, 28 March 2017, 8 May 2017, 13 June 2017 for comprehensive 19 details of these volume estimates. These resources were calculated using probabilistic
Slide 20: Oil & gas volume – SPE definitions
For personal use only Oil & gas volume – SPE definitions Carnarvon calculates reserves and resources according to the SPE/WPC/AAPG/SPEE Petroleum Resource Management System (“SPE-PRMS”) definition of petroleum resources. This was first published in 1997 by the SPE, and in an effort to standardise re
Slide 21: Oil & gas volume - summary
For personal use only Oil & gas volume - summary Buffalo project Buffalo contingent resources fall within the “Development Pending” category. Once Carnarvon finalises its redevelopment work the resources can be reclassified as reserves under the category “Justified for Development”. Phoenix project
Slide 22: 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. The field was operated by BHP Petroleum and cont
Slide 23: Buffalo project – technology solution
For personal use only Buffalo project – technology solution Based on Carnarvon’s experience trialing the first use of FWI (Full Waveform Inversion) technology in Australia in the Phoenix project, Carnarvon was in a position to immediately foresee the potential for this technology in other areas; Buf
Slide 24: 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 25: 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 26: 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 27: Phoenix project – seismic cross section
For personal use only Phoenix project – seismic cross section 27 Refer to Carnarvon’s ASX announcements of 14 November 2016 and 28 March 2017 for comprehensive details of these volume estimates. These resources are calculated using probabilistic methodology.
Slide 28: 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 29: Phoenix project – market scenarios
For personal use only Phoenix project – market scenarios • Browse pipeline NWS JV (LNG) • Port Headland pipeline (domgas) • Pilbara mining (domgas) 29
Slide 30: 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 31: 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 32: Outtrim project - Belgravia prospect
For personal use only Outtrim project - Belgravia prospect The Outtrim project (WA-155-P(1)) is located in the Exmouth basin and contains the significant Belgravia prospect in the Triassic interval. The prospect is similar in size and geology to the nearby Woodside operated Swell Triassic prospect.
Slide 33: Outtrim project - Belgravia prospect
For personal use only Outtrim project - Belgravia prospect The Swell prospect is located within WA-483-P (Woodside-60% and operator, KUFPEC-40%), which neighbours WA-155-P(1). Swell-1 aims to target an undrilled Triassic fault block (Woodside first quarter report 2017), and is located approximately
Slide 34: Maracas project - background
For personal use only Maracas project - background The Maracas project (WA-524-P) is situated on the flanks of the Dampier Sub-Basin, a part of the highly prospective Greater Carnarvon Basin, on Western Australia’s North West Shelf. This large 1,210km² permit is located on the Enderby Terrace, which
Slide 35: Cerberus project - background
For personal use only Cerberus project - background The Cerberus project (EP-490, EP-491, TP/27 & EP-475) covers a large 3,700 square kilometre area in the heartland of the prolific Northern Carnarvon Basin, relatively close to a number of producing oil and gas fields. The Company has been recently
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: Roc-2 flow test
For personal use only 38 Roc-2 flow test
Slide 39: Corporate
For personal use only Corporate 1. ASX ticker CVN Shareholder analysis at 30 June 2017 2. Shares on issue 1,028 million 3. Share price (31/8/17) 8.8 cents 4. Market capitalization (31/8/17) $90 million 5. Cash on hand (30/6/17) $53 million 6. Substantial shareholders none Carnarvon’s 52 week share p
Slide 40: Think Different Act Different
For personal use only Think Different Act Different 40
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