Carnarvon Energy Limited · ASX:CVN
Carnarvon Energy — Investor Presentation (March 2022)
32 slides from Carnarvon Energy's investor presentation, Mar 23, 2022
Slide 1: Investor presentation – Pavo discovery
Investor presentation – Pavo discovery 23 March 2022 Following the material Pavo oil discovery, which was separately announced today, Carnarvon Energy Limited (“Carnarvon”) (ASX:CVN) is pleased to provide the attached presentation that the company will use to brief investors. Approved by: Adrian Coo
Slide 2: Corporate Presentation March 2022
Corporate Presentation March 2022 ASX listed energy company (ASX:CVN) Developing high quality assets in Western Australia GENERATING VALUE THROUGH THE ENERGY TRANSITION 1
Slide 3: Disclaimer
Disclaimer The resource estimates outlined in this presentation are based on and fairly represent information and supporting documentation prepared by Carnarvon’s Chief Operating Officer, Mr Philip Huizenga, who is a full-time employee of the company. Mr Huizenga has over 25 years experience in petr
Slide 4: Carnarvon Energy – highly valuable energy projects in WA
Carnarvon Energy – highly valuable energy projects in WA Dorado oil development - One of the few ASX listed companies with quality oil exposure, via the Dorado field in the Bedout basin in Western Australia Bedout basin exploration – With ~100 prospects in this basin, Carnarvon holds an enviable sta
Slide 5: Dorado oil field development
Dorado oil field development
Slide 6: Dorado field overview (CVN 20%)
Dorado field overview (CVN 20%) Contingent resource of 162mmbbls (gross 2C basis) Phase 1 – oil production ➢ Targeting an initial 75,000 to 100,000 bopd flow rate (gross) in early 2026 Phase 2 – gas and LPG production ➢ In concept phase, with timing objectives to align with oil production decline Do
Slide 7: Dorado development phase 1 – FID ready by mid-2022
Dorado development phase 1 – FID ready by mid-2022 ➢ Conceptual design complete on subsurface, WHP and FPSO ➢ FEED work advancing to finalise capital cost and execution plan, along with required contracts ➢ Production License and Offshore Project Plan prepared for regulatory approval, Field Developm
Slide 8: Increasing opportunity to sequence oil & gas production
Increasing opportunity to sequence oil & gas production ➢ Pavo oil discovery confirmed 23 March 2022 ➢ Apus-1 well is drilling in April 2022 ➢ Dorado gas is to be reinjected for future production, timing is flexible ➢ Roc gas (discovered and appraised in 2016) has the potential to tie-into Dorado ➢
Slide 9: Compelling value in producing additional oil in Dorado facilities
Compelling value in producing additional oil in Dorado facilities Illustration of the merits of tying back production from new fields into Dorado facilities with predominantly fixed operating costs ➢ Spreading operating costs over a larger resource pool maintains low operating costs per barrel Barre
Slide 10: Dorado funding plans are advancing across multiple avenues
Dorado funding plans are advancing across multiple avenues ➢ Technical DD commenced Sept 2021 Dorado’s attraction ➢ Commercial engagement commencing Senior debt in Q2, 2022 for financiers ➢ In discussion with >10 quality lenders ➢ Finance in addition to senior debt ➢ Strong debt servicing capacity M
Slide 11: Dorado field contains a sought after light sweet crude
Dorado field contains a sought after light sweet crude Examples of Dorado crude uses ➢ Petrochemicals ➢ Jet & other transport fuels Dorado crude is categorized as o ➢ Light / extra light (51 API) ➢ Sweet (defined by its low 189 ppm Sulphur content) (%’s by volume) GENERATING VALUE THROUGH THE ENERGY
Slide 12: Strong projected demand for light crude products like Dorado's
Strong projected demand for light crude products like Dorado’s ➢ Naphtha demand growth (petrochemical feedstock) ➢ Jet/kerosene demand growth ➢ Dorado crude refined products suited to growth areas Majority of Dorado oil ➢ Dorado production well timed into projected to forecast growth profile be prod
Slide 13: Dorado positioned to support Asian demand growth
Dorado positioned to support Asian demand growth GENERATING VALUE THROUGH THE ENERGY TRANSITION 12
Slide 14: Asian demand projections strong for light crudes like Dorado's
Asian demand projections strong for light crudes like Dorado’s ➢ Strong demand growth ➢ Driven from Asia Pacific ➢ Dorado production timing and Majority of location is ideal Dorado oil projected to be produced GENERATING VALUE THROUGH THE ENERGY TRANSITION 13
Slide 15: Dorado refined products and demand forecasts are attractive
Dorado refined products and demand forecasts are attractive Dorado refined products ➢ Naphtha for petrochemicals ➢ Jet and other transport fuels Dorado timing ➢ Demand growth projected in Dorado’s main production window Dorado location ➢ Well located to supply growth projections in the Asian markets
Slide 16: Focused growth in the Bedout basin
Focused growth in the Bedout basin
Slide 17: Around 100 targets identified in the Bedout basin (CVN 20%-30%)
Around 100 targets identified in the Bedout basin (CVN 20%-30%) Carnarvon’s objectives across the basin*: 2022 – Exploration drilling at Pavo and Apus 2024 2023 – Pavo appraisal drilling 2024 – Dorado development drilling 2025 Baxter appraisal drilling Northern basin exploration drilling 2023 2024 2
Slide 18: Pavo-1 exploration well (CVN 30%) Material oil discovery
Pavo-1 exploration well (CVN 30%) Material oil discovery Location 46 km east of Dorado development Highlights ✓ 46 metres net pay ✓ Quality reservoir ✓ Light oil (52o API) ✓ Tie back to the proposed Dorado production facility attractive ✓ Unlocks suite of nearby prospects Map showing Dorado, Pavo an
Slide 19: Apus-1 exploration well (CVN 20%-30%)
Apus-1 exploration well (CVN 20%-30%) To follow Pavo-1 Location 31 km southeast of Dorado Targets Caley & Milne Member sands Key Risks Charge & Top-seal A A’ Volumes* ✓ Liquids: 235 mmbbl; and ✓ Gas: 408 Bcf (gross, mean) Risk ✓ 23% Pg ✓ Pavo-1 result positive for key risks ✓ HRDZ’s possible mitigat
Slide 20: Quality 3D seismic data are contributing to Bedout results
Quality 3D seismic data are contributing to Bedout results 2D (1987) 3D (2019) 3D (2021) C D C D C D Dorado Dorado canyon canyon C Dorado D GENERATING VALUE THROUGH THE ENERGY TRANSITION 19
Slide 21: An exciting possibility for seismic data to de-risk future prospects
An exciting possibility for seismic data to de-risk future prospects Dorado Pavo N S N Cossigny S Fluid Escape Features (FEF’s) Caley Fluids that escape from a structure can create a seismic signature – often a sign that hydrocarbons are, or were, present Apus In N the Bedout S • A FEF looks to have
Slide 22: Quality 3D seismic data now covers most of the Bedout basin
Quality 3D seismic data now covers most of the Bedout basin Two new 2021 3D seismic surveys will mature and de-risk key leads and prospects • Archer 3D, 595 km2 – Dorado near-field prospects • Keraudren Ext. 3D, 2,534km2 – eastern lead complex Processed data available early 2022 2,534 km2 Permits no
Slide 23: Renewable Fuel Development
7. CARNARVON ENERGY LTD Renewable Fuel Development
Slide 24: Carnarvon is committed to be part of the energy transition
Carnarvon is committed to be part of the energy transition Net zero Sustainability Renewable diesel commitment reporting investment GENERATING VALUE THROUGH THE ENERGY TRANSITION 23
Slide 25: Renewable diesel is a part of Australia's Bioenergy Roadmap
Renewable diesel is a part of Australia’s Bioenergy Roadmap ➢ In November 2021, the Australian Federal Government released its roadmap to guide the growing bioenergy sector and its role in Australia’s future energy mix ➢ Renewable diesel was identified by ARENA to play a role in lowering emissions i
Slide 26: About renewable diesel
About renewable diesel ➢ Key benefits of the fuel vs. petroleum diesel: ➢ Lower tailpipe emissions ➢ including particulate matter, CO and NOx ➢ Higher fuel efficiency, milage, power ➢ Reduces engine wear ➢ Indicative lifecycle GHG emissions show fuel has the potential to be carbon neutral ➢ Meets Eu
Slide 27: Carnarvon's first project is to be in the Narrogin Shire (WA)
Carnarvon’s first project is to be in the Narrogin Shire (WA) ➢ Technip Energies is currently undertaking project FEED covering the technology and proposed site ➢ Rights to acquire a 64 ha site in the Narrogin Shire have been secured ➢ Significant inbound interest has been received from companies in
Slide 28: Additional products associated with renewable diesel production
Additional products associated with renewable diesel production Biochar - applications include: • Carbon Soil Enhancer • Water Reduction & filtration • Metallurgical Charcoal • Animal feed Approx. 8,300 tons / annum projected production Wood vinegar - applications include: • Fertiliser • Fungicide &
Slide 29: Appendix Supporting material
Appendix Supporting material
Slide 30: Bedout Basin Contingent Resources
Bedout Basin Contingent Resources Gross resources (100% basis) Oil and Condensate Natural Gas Barrels of Oil Equivalent 1 MMbbl BCF MMboe 1C 2C 3C 1C 2C 3C 1C 2C 3C Dorado 86 162 285 367 748 1358 176 344 614 Roc 12 20 35 205 332 580 48 78 137 Bedout Project Sub Total 98 182 320 572 1080 1938 224 422
Slide 31: Bedout Basin Selected Prospective Resources
Bedout Basin Selected Prospective Resources Prospective Resources (100% basis) Light Oil Natural Gas Barrels of Oil equivalent Pg MMbbl BCF MMboe % P90 P50 Mean P10 P90 P50 Mean P10 P90 P50 Mean P10 Pavo Resource estimate to be revised following completion of the Pavo-1 well Apus 26 160 235 537 537
Slide 32: Generating value through the energy transition
Generating value through the energy transition – a contemporary approach that integrates conventional assets and renewables HEAD OFFICE Level 2, 76 Kings Park Road T. +61 8 9321 2665 West Perth WA 6005 E. admin@cvn.com.au
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