Carnarvon Energy Limited · ASX:CVN
Carnarvon Energy — Carnarvon Petroleum — Investor Presentation (October 2011)
25 slides from Carnarvon Energy's investor presentation, Oct 24, 2011
Slide 1: Corporate Presentation
Corporate Presentation 24 October 2011 For personal use only ASX ANNOUNCEMENT Carnarvon Petroleum Limited (“Carnarvon”) (ASX:CVN) is pleased to provide shareholders with a copy of our Shareholders Presentation Update. For this presentation and further information on the Company please visit the CVN
Slide 2: Shareholder Presentation
For personal use only Shareholder Presentation October 2011
Slide 3: Contents
Contents For personal use only 1. Corporate snapshot 2. 2011 financial results 3. 2011 production 4. Forward plans for 2012 production 5. Other value drivers in the business 6. Key activities and timelines going forward 7. Management’s key priorities 2
Slide 4: Corporate snapshot
Corporate snapshot 50% For personal use only 42.5% 7.5% Clear strategy Build a profitable L44/43, L33/43 L20/50 and SW1A 60% 40% L52/50 and L53/50 company 50% 50% 51% from a diversified Rangkas PSC 25% 24% portfolio 50% of exploration & 50% Phoenix Blocks production assets 50% 15% WA-399P
Slide 5: Corporate snapshot
Corporate snapshot 50% For personal use only 42.5% 7.5% Significant portfolio L20/50 L44/43, L33/43 and SW1A 60% 10 million acres 40% L52/50 and L53/50 High equity interests Near existing 50% 50% 51% Rangkas PSC 25% 24% hydrocarbon trends Active 2011 FY 50% 50% Phoenix Blocks 25 wells dr
Slide 6: Corporate snapshot
Corporate snapshot Corporate overview 50% For personal use only 42.5% 7.5% L20/50 L44/43, L33/43 and SW1A 60% $100m market L52/50 and L53/50 40% capitalisation 50% 19% held by institutional 50% 51% 25% shareholders 11% held by directors Rangkas PSC 24% 50% 50% and management Phoenix Blocks 5
Slide 7: 2011 financial results
2011 financial results For personal use only Earnings 2011 FY 2010 FY Year on year summary ($’m) ($’m) Comparable earnings Oil sales $55m $64m before exploration costs Cost of sales ($19m) ($21m) (“CoS”) Oil price steady Administrative costs ($5m) ($5m) Production down 16% CoS carried capaci
Slide 8: 2011 financial results
2011 financial results For personal use only Year on year summary Cash flow 2011 FY 2010 FY Strong operating cash ($’m) ($’m) flows Oil receipts $62m $71m Oil receipts affected by Payments to ($24m) ($24m) lower production suppliers & employees Field costs steady on Taxes ($14m) ($15m) retaine
Slide 9: 2011 financial results
2011 financial results For personal use only Exploration summary Cash flow 2011 FY 2010 FY (continued) ($’m) ($’m) L44 – 25 wells, inventory and development costs Operating cash $23m $32m flows (“OCF”) Tuatara well in NZ was dry L44 exploration ($20m) ($29m) Two L20/50 wells warrant and develo
Slide 10: 2011 production
2011 production Natural field decline (“NFD”) For personal use only Wells are impacted by NFD & subsequent water incursion Water flows preferentially to oil thereby accelerating NFD JV has a history of successfully replacing NFD 2011 drilling in the WBEXT area didn’t replicate this history C
Slide 11: 2011 FY production
2011 FY production For personal use only WBEXT focus In 2011 nearly 2/3 thirds of rig time was in the WBEXT region Why - 3 WBEXT wells flowed between 3,500 & 5,300 bopd Further WBEXT drilling couldn’t replicate the results from the earlier wells, although sandstone successfully appraised 300,0
Slide 12: Forward plans for production
Forward plans for production Sandstone – greater stability and longevity For personal use only Drill WBEXT dedicated sandstone program of 10-15 wells Wells expected to produce ~100 to 300 bopd Preparing to commence development in Q1 of 2012 Volcanic – high flow, fast payback, high variability
Slide 13: Phoenix asset – Western Australia
Other value drivers in the business Phoenix asset – Western Australia For personal use only material interests + large acreage + discovered gas Interests of 50% & 100% 28,300km2 acreage holding plenty of running room WA-435-P & WA-437-P focus contains the discovered gas gas discovered by
Slide 14: Phoenix asset – 3D seismic showing key structures
Other value drivers in the business Phoenix asset – Western Australia For personal use only 3D seismic clearly showing key structures 13
Slide 15: Phoenix asset – 3D data is key
Other value drivers in the business Phoenix asset – Western Australia For personal use only 3D data is key to unlocking the resources Prospects of ~2.5 Tcf of recoverable gas identified Water depths of ~140m Well depths of ~5,000m 14
Slide 16: L20/50 asset – Thailand
Other value drivers in the business L20/50 asset – Thailand For personal use only 3D seismic required to better delineate fault terraces Complex faulting on basin margin: good potential for structural closures W E Migration from depocentre 2 wells drilled in early 2011 with positive geochem result
Slide 17: L52/50 & L53/50 asset – Thailand
Other value drivers in the business L52/50 & L53/50 asset – Thailand For personal use only Early stage exploration Close proximity to prolific offshore basins in the Gulf of Thailand Under-explored basin With few valid well tests Surface geological and structural mapping completed in 2010
Slide 18: Rangkas PSC – Indonesia
Other value drivers in the business Rangkas PSC – Indonesia For personal use only analysis indicates multiple staked play types are present 500 km Rangkas 2D seismic completed on 1 April 2011 1,000 km of existing 2D seismic data reprocessed Geophysical mapping shows some 15 significant leads 1
Slide 19: Key activities and timelines – Phoenix
Key activities and timelines going forward Phoenix asset – Western Australia For personal use only The “Phoenix” asset refers to Carnarvon’s 50% interest in the WA-435-P, WA-436-P, WA-437-P and WA-438-P Permits and its 100% interest in the WA-443-P Permit The time line above is indicative only 18
Slide 20: Key activities and timelines – L20/50
Key activities and timelines going forward For personal use only L20/50 Concession - Thailand The time line above is indicative only 19
Slide 21: Key activities and timelines – L52/50 & L53/50
Key activities and timelines going forward For personal use only L52/53 & L53/50 Concessions - Thailand The time line is indicative only 20
Slide 22: Summary of key activities & timelines – Rangkas
Summary of key activities & timelines For personal use only Rangkas PSC - Indonesia 21
Slide 23: Management's key priorities
Management’s key priorities Steadily improve production from sandstone reservoirs For personal use only (L44/43 & L33/43 Concessions, Thailand) Continue drilling high flowing volcanic reservoirs (L44/43 & L33/43 Concessions, Thailand) Farm-out Phoenix asset to accelerate the drilling of
Slide 24: Disclaimer
Disclaimer For personal use only The information in this document, that relates to oil exploration results and reserves, is based on information compiled by the Company’s General Manager (Operations), Mr Philip Huizenga, who is a full-time employee of the Company. Mr Huizenga consents to the inclusi
Slide 25: For personal use only
For personal use only Ground Floor 1322 Hay Street West Perth WA 6005 Telephone: +61 (8) 9321 2665 Fax: +61 (8) 9321 8867 www.carnarvon.com.au
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