88 Energy Limited · ASX:88E
88 Energy — Non-Deal Roadshow (February 2015)
28 slides from 88 Energy's roadshow presentation, February 2015
Slide 1: Project Icewine Roadshow
Project Icewine Roadshow February 2015 ABN 80 072 964 179
Slide 2: Objective and Why Tangiers NOW?
Objective and Why Tangiers NOW? Objective: Compelling oil play with unique logistics, market access, & fiscal incentives • 99,360 acres onshore North Slope, Alaska with 10 year lease term & 16.5% royalty • Formal lease award by the State of Alaska 1H 2015 and payment of US$2.98M • Two world class ob
Slide 3: Location Map & Explorers
Location Map & Explorers Alaskan Proven, prolific and Operators: productive petroleum province January 2014 Lease Map Kuparuk River Prudhoe Bay Oil Field 3.4 BN REC RESOURCES 15 BN REC RESOURCES Largest in USA Tarn 100 MMBBL REC N o r t h S l o p e GREAT BEAR ICEWINE BUSH FED #1 - - - - - 99,360 Acr
Slide 4: Essentials
Essentials Located in North America’s premier petroleum province which hosts the largest oil field complex in North America • Tangiers and partner, Burgundy Xploration, advantaged by a Early Mover Advantage specialised and technically-targeted low-cost strategic entry that optimises potential moneti
Slide 5: Corporate Information
Corporate Information KEY STATISTICS AS AT 23 JANUARY 2015 Registered Office: Level 2, 5 Ord Street, Perth WA 6005 Total Ordinary Shares: 452,026,723 Options: 34,525,087 Postal Address: Number of Shareholders: 2,715 PO Box 1674, West Perth WA 6872 Telephone: +61 8 9485 0990 Top 20 Shareholders (31.1
Slide 6: 2009 – 2014, 95 fold growth
Case Study: Aurora (ASX:AUT) 2009 – 2014, 95 fold growth Key Aurora Tangiers 2005: Average Crude Oil Price US$50/ Bbl Statistics Sugarkane, Icewine, Maiden 2P Marathon buys Ryder Scott A$4.10 $A4.20 Asset, Play, Reserves Hilcorp for $3.5b Reserves Baytex Offer May 2014 Eagle Ford, multiple, Drilling
Slide 7: Common DNA Tier 1 US Shale Plays
Common “DNA” Tier 1 US Shale Plays – Unique Differential Characteristics Common “DNA” includes Eagle Ford, TX Marcellus, PA • Overpressure Passive margin; calcite-rich Forearc “conventional” • High effective permeability Exceptional overpressure shale Tier 1 “fracability” • Low viscosity, liquids-ri
Slide 8: Shale Metrics & IP30
Shale Metrics & IP30 Degolyer-MacNaughton & BEX HRZ Assessment Comparative North American Shale Play Characteristics * 20.9 * Gas converted to oil equivalent on an energy basis at 6:1 ratio HRZ vs Eagle Ford Similarities • HRZ ID’d w EF “toolbox” • Vapor phase play • Width of sweetspot Differences •
Slide 9: HRZ Continuity & Petrophysics
HRZ Continuity & Petrophysics * *Located on Icewine acreage Keys Keys toto HRZ play: Keys shale play to play: • Keys to well Solid play:control Keys towell play:control • •• • History Solid Solid well control & diagenesis Tier 1•OIPe resource Solid wellresource control • • 1Tier Tier OIPe1 resource
Slide 10: Unconventional Resource Potential
Unconventional Resource Potential ESTIMATED PROSPECTIVE OIL RESOURCE * PROSPECT ICEWINE (HRZ, HUE, KINGAK, & SHUBLIK SHALES) NORTH SLOPE, ALASKA RISKED UNRISKED (41% Probability) CASE LOW AVERAGE HIGH MEAN RISKED MEAN GROSS (MMBO) 244.3 446.4 813.2 492.5 200.3 TANGIERS NET (MMBO) (Basis: 87.5%on awa
Slide 11: Unconventional Shale Oil Play
Unconventional Shale Oil Play Clinoform • Three prolific shales/ source rocks Hue/ HRZ Source Rocks • Unconventional • Hue Shale: • Hue / HRZ • includes HRZ primary target Clinoform • Kingak Shales Hue/ HRZ • Kingak Shale Hue/HRZ • Shublik Shales HRZ • Shublik Shale HRZ • Conventional • Estimated 2B
Slide 12: Conventional Oil Potential
Conventional Oil Potential Alaska ranked #1 in North America • Central North Slope ranked #1 in the USA for Mean Assessment of Technically Recoverable Conventional Resources (USGS 2013) remaining conventional oil potential: Rank Top Ten Provinces Mean Undiscovered • 4.0 BN barrels mean undiscovered
Slide 13: Conventional Plays & Shows
Conventional Plays & Shows Brookian Clinoform Play * 2.1 BBO potential (USGS, 2013) • Delta Topset: B R O O K I A N • Shallow marine to non-marine sands • Umiat Field DELTA • Brookian Turbidites - Icewine Focus TOPSET • Slope & deep water sands • Tarn & Meltwater Fields • Light oil sourced by HRZ CL
Slide 14: Brookian Clinoform Play
Brookian Clinoform Play 1.6 BBO potential (USGS, 2013) • Clinoform-related, high porosity Brookian Seismic Schematic: reservoirs represented by shallow- marine topsets through distal, deep- Prograding Clinoforms and Slope Play Types Seismic Schematic illustrating Eastward Prograding Clinoforms acros
Slide 15: Exploration Activity & Discoveries
Exploration Activity & Discoveries Great Bear 2015 (1H): Three Well Program* • “Large” Brookian prospects, based on new 3D, reportedly targeted • Talitha-1 is 2.5 miles north of Icewine 2012: Alcor #1 and/or Merak #1 • Hue / HRZ, Kingak, and Shublik - strong shows • High TOC, up to 8%, reported in H
Slide 16: Single Well Economics
Single Well Economics Unconventional Well Assumptions Fiscal Assumptions NPV10: $3.6m • Economics for unconventional become NPV10: $3.6m very attractive around $65 per bbl – NPV10: $1.6m likely decrease in full cycle costs will NPV10: $1.6m enhance economics NPV10: - $0.3m NPV10: - $0.3m • Modest co
Slide 17: One Big Reason For a Farm-in??
Compelling Immediate Investment Investment Thesis Oil-rich, dual conventional and unconventional super-giant opportunity, secured by U.S. Rule of Law, with immediate global marketability, and world’s premier exploration incentives Strategic asset calibre for a National Oil Company or Super-Major end
Slide 18: New Board and Management
New Board and Management Mr David Wall – Managing Director Mr Michael Evans – Non-Executive Chairman 4 years experience in strategy and planning at Extensive executive and Board level experience Woodside Petroleum. with publicly listed companies in the natural 6 years experience in financial service
Slide 19: Disclaimer
Disclaimer The information contained in these slides has been prepared by Tangiers Petroleum Limited (the “Company”). The information contained in these slides, the presentation made to you verbally and any other information provided to you (in writing or otherwise) in connection with the Company an
Slide 20: Disclaimer (cont.)
Disclaimer (cont.) Any failure to comply with this restriction may constitute a violation of securities laws. No action has been or will be taken by the Company that would permit a public offer of its securities in any jurisdiction in which action for that purpose is required. No offers of securitie
Slide 21: Project Icewine: HRZ Resource Potential
Project Icewine: HRZ Resource Potential Prospect Icewine: HRZ Shale – Primary Objective (Source: DeGolyer & MacNaughton as of December 31, 2014) Monte Carlo: Probability Distribution Parameter P90 P50 P10 Mean Productive area (acres) 16,619 39,331 79,107 43,809 Thickness (ft) 132 170 218 173 Porosit
Slide 22: Land Overview
Land Overview Strategic Acreage on Highway 99,360 contiguous gross acres comprising: • 90,720 acres subject to formal award by the State of Alaska (1H 2015) and payment of US$2.98M • 8,640 acres previously acquired by Joint Venture partner Burgundy Xploration Acreage: Leasehold Position Acreage
Slide 23: First Mover Explosive Growth Potential Analogy
First Mover Explosive Growth Potential Analogy Eagle Ford Shale History • In 2005, Conoco Philips/Burlington Resources began their Eagle Ford exploration program. It was an early mover to test the play and finished leasing before most companies had entered • Average crude oil price per barrel in 200
Slide 24: Unconventional Play Exploration Methodology
Unconventional Play Exploration Methodology Project Icewine originated utilizing the same prospect methodology that instigated ConocoPhilips early mover position in the Eagle Ford. Respectively, both the EagleFord and the HRZ shales are regionally pervasive and known to source supergiant oil fields,
Slide 25: Tax Credit Overview
Tax Credit Overview • The recently enacted tax reform Senate Bill 21, the “More Alaska Production Act”, transforms Snapshot of Incentive Program Alaska into one of the most compelling risk/reward ratios in the world for exploration Credit Incentive Detail and production. Exploration Credit 30-40% cr
Slide 26: Alaska North Slope Crude Marketable for Global Export
Alaska North Slope (ANS) Crude Marketable for Global Export Background: • Project Icewine will likely export oil to market via the Tanker Route Map Trans Alaska Pipeline, an ~800 mile, 48-inch pipeline that starts in Prudhoe Bay and terminates in Valdez, AK • Production is benchmarked to ANS West Co
Slide 27: Corporate Transactions
Corporate Transactions Implied Buyer Seller Trade Value/Acre Cost recoupment on ~ 494,000 acres, $2,200 Repsol Armstrong ORRI, carried 30% WI through minimum of $US 750MM of drilling Farmed in by drilling 2 wells and ~$1,600 Halliburton Great Bear acquiring 600km2 of 3D Seismic (internal estimate) E
Slide 28: North Slope Conventional: Early Exploration
North Slope Conventional: Early Exploration Exploration drilling campaign North Slope, Colville High 1982 – 2000: • Nine conventional oil accumulations discovered and/ or evaluated; the majority were secondary objectives with a combined OOIP greater than 5 BN barrels • An 85% success rate was report