Zephyr Energy Plc · LSE:ZPHR
Zephyr Energy — Rose Petroleum — Investor Presentation (December 2017)
29 slides from Zephyr Energy's investor presentation, December 2017
Slide 1: Rose Petroleum plc TPI Investor Presentation
Rose Petroleum plc TPI Investor Presentation (AIM: ROSE) OIL & GAS EXPLORATION December 2017 Strictly Private and Confidential www.rosepetroleum.com www.rosepetroleum.com
Slide 2: Disclaimer
Disclaimer The information contained in this presentation (the "Presentation") has been prepared by and is the sole responsibility of the directors of Rose Petroleum PLC (the "Company"). The Presentation and any further confidential information made available to any recipient, either verbally or in
Slide 3: Executive Summary
Executive Summary • Disposing of historic mining assets: closed US$1.5m sale of SDA Mill, Mexico and early stage discussions underway on Uranium assets • Earning 75% Working Interest (“WI”) in over 92,000 gross acres in one of the most prolific Unconventional Resource Oil & Gas plays in the U.S.A. •
Slide 4: Highlights
Highlights Low risk • Proven hydrocarbon play surrounded by highly productive basins • Extensive existing infrastructure across the region • Cane Creek is a proven productive interval with high COS (“chance of success”) • 3D survey de-risks play significantly and will highlight drilling locations •
Slide 5: Board of Directors
Board of Directors Non-Exec Chairman – Phillip Jeffcock CEO – Matthew Idiens o Founder and Managing Partner of Cew Capital LLP o Co-founder of Rose / VANE o Previously Phillip worked at Barclays Capital and global head of o +20 years experience in the natural resources sector commercial real estate
Slide 6: Ops Team Backgrounds
Ops Team Backgrounds David List - Consulting Geophysicist Gregor Maxwell- Technical Advisor to the Board • Geophysicist with over 32 years of experience with MS in Geophysical Engineering from • Geologist with 25 years experience, PhD in reservoir geology from Colorado School of Mines the University
Slide 7: Paradox Basin, Utah, USA
Paradox Basin, Utah, USA • The Paradox Basin is a major emerging unconventional resource play. • Fidelity E&P Co., a former subsidiary of MDU Resources Group (NYSE: MDU), was the lead operator developing the Cane Creek Field and adjoining holdings, now owned by Kirkwood Resources. • Rose’s leases ar
Slide 8: Paradox Basin
Paradox Basin Rose acreage Prolific Rocky Mountain Basin • Exploration and production from 1961 • Major fields – Aneth, Lisbon have produced over 550mmbo and 1.2 TCF www.rosepetroleum.com 8
Slide 9: Relevant History & Current Operations in Paradox Basin, Utah
Relevant History & Current Operations in Paradox Basin, Utah Historical Operations • 1962: Southern Natural drilled Long Canyon 1-9 (First Cane Creek Clastic Producer, cum 1.2MMBO) • 1990-1993: Columbia Gas drilled 6 wells (4 produced from the Cane Creek Clastic) • 1993-2004: 4 wells drilled (2 Cane
Slide 10: Paradox Formation: Productive Fairway
Paradox Formation: Productive Fairway • The Paradox Cane Creek Clastic productive fairway is orientated in a northwest- southwest direction NE • The productive fairway is characterized by thickness greater than 2,000 feet NW Paradox • In this position, water depths were deep Isopach Rose 3D feet Sei
Slide 11: Paradox Structural Cross Section
Paradox Structural Cross Section SW Gunnison Valley 3D NE Salt Valley Mancos Fm. Dakota Ss. Navajo Ss. Cutler Fm. Honaker Trail Fm. depositional thinning Cane Creek Paradox Fm. loading Clastic salt salt 2 pillow wall 1 3 +14,000’ Lead Tilting (basin formation) ville L s. 1 Devo nian syndepositional
Slide 12: Clastic layers are laterally continuous across the productive fairway
• Clastic layers are laterally continuous across the productive fairway (green shading) • Clastic 21 (Cane Creek Clastic) has been the most prolific producer historically • The Cane Creek Clastic is easily correlated from Cane Creek Unit into Gunnison Valley Unit • Clastics 18 & 19 have also demonst
Slide 13: Paradox Basin Fracture Networks
Paradox Basin Fracture Networks • The creation of fractures after oil generation has Well: CCU 26-3 started is critical to the preservation of open Open fractures are often partially healed with halite or calcite fractures • Fractures created prior to oil generation are typically cemented with salt
Slide 14: 3D Seismic Summary
3D Seismic Summary 3D Seismic is critical to the success of the play as Fidelity demonstrated. Seismic will be used to: • Target areas that are likely to have open natural fractures • Avoid structurally complex and non-fractured areas • Plan and steer horizontal wells in Paradox clastics Gunnison Va
Slide 15: 3D Seismic Summary: Acquisition
3D Seismic Summary: Acquisition Receivers Dynamite Vibroseis • Survey laid out using helicopter • Drill rigs flown into areas inaccessible for Vibroseis trucks • Charges laid ~40’ deep and detonated in co-ordination with central control and team on the ground www.rosepetroleum.com 15
Slide 16: 3D Seismic Summary: Acquisition
3D Seismic Summary: Acquisition Receivers Dynamite Vibraseis • Vibroseis trucks working in team of 3, over manageable ground • Shot point timing precisely coordinated between trucks and central control www.rosepetroleum.com 16
Slide 17: 3D Seismic Summary: Acquisition
3D Seismic Summary: Acquisition Receivers Dynamite Vibroseis • 6 geophones per recording station • Recording data at all locations during the entire shoot • Multiple geophones to reduce random noise. E.g. wind & traffic www.rosepetroleum.com 17
Slide 18: Gunnison Valley 3D – Data Quality
Gunnison Valley 3D – Data Quality Quick Look Evaluation §Fast track data – data processing still ongoing §Exceptional quality sub-salt imaging Mud filled fluvial channel §High fold data delivering excellent resolution at the clastic target intervals §Example: late stage fluvial channel abandoned as
Slide 19: Gunnison Valley 3D – Target Geometries
Gunnison Valley 3D – Target Geometries Productive structural geometries present at Cane Creek Van Gent 2010 §Constriction Folding § Salt tectonic features related to larger scale overall salt movement Fractures aligned parallel Senanyake 2013 to fold axial plane §Large scale structural flexures § Co
Slide 20: Gunnison Valley 3D – Quick Look
Gunnison Valley 3D – Quick Look 14/02/18 Amplitude extraction @ Cane Creek level Interpreted Section Preliminary data review §Basement fault geometries analogous to Cane Creek features evident on the GVU 3D Basement Faults Basement Faults §Positive early indications www.rosepetroleum.com 20
Slide 21: Gunnison Valley 3D – Quick Look
Gunnison Valley 3D – Quick Look Constriction Folds Cane Creek Thrust Fault Cane Creek Amplitude extraction @ Cane Creek level Interpreted Section Preliminary data review §Constriction folds similar to Cane Creek evident on GVU 3D §Positive early indications www.rosepetroleum.com 21
Slide 22: Gunnison Valley 3D – Summary
Gunnison Valley 3D – Summary Acquisition §Safe, efficient 3D acquisition delivered under budget and ahead of schedule §Initial data quality appears to be excellent – ability to map the Cane Creek internal and also shallower, prospective clastic intervals (e.g. – Clastic 18) §Processing near completi
Slide 23: Ryder Scott’s Paradox Resources
Ryder Scott’s Paradox Resources Ryder Scott’s Original Hydrocarbon in Place Volumes in the Paradox Formation Leasehold Interests of Rose as of 30th April, 2014: OOIP - MMBO OGIP – BCF P90 P50 P10 MEAN P90 P50 P10 MEAN 15,876 19,139 23,008 19,320 26,005 32,999 41,300 33,395 Ryder Scott’s Unrisked Pro
Slide 24: Ryder Scott Grand Main (incl. GVU) Estimated Resources
Ryder Scott Grand Main (incl. GVU) Estimated Resources – 15 Formations with Paradox www.rosepetroleum.com 24
Slide 25: Field Development
Field Development Regional Oil Services Hub • Grand Junction (1.5 hours drive along Interstate 70) Oil Gathering: Road & Rail • 100% volumes trucked to refinery – Western’s Gallup Refinery • Four Corners area in New Mexico • Rail spur potential close to Kirkwood’s Dead Horse Point operations Gas Gat
Slide 26: Paradox Economics Price Sensitivity
Paradox Economics Price Sensitivity Price: US$ Current price deck & US$10m Price: US$ Current price deck & $8 mm well cost NPV10: US$218 mm NPV10: US$365 mm ROR: 20% ROR: 32% • 617,000 BO EUR • 288 well inventory • 75% WI • Production profile, Capex and Opex, based on existing Paradox producing well
Slide 27: Key Event Work Programme
Key Event Work Programme Rose Petroleum (US) LLC GVU SEISMIC & DRILLING PROJECTED ACTIVITY TIMELINE - August 2017 to September 2018 Paradox Basin - Southern Gunnison Valley Unit Aug 2017 Sep 2017 Oct 2017 Nov 2017 Dec 2017 Jan 2018 Feb 2018 Mar 2018 Apr 2018 May 2018 Jun 2018 Jul 2018 Aug 2018 Sep 2
Slide 28: Forward Plan
Forward Plan • GVU Cane Creek represents a high value potential play • Continue to progress GVU area evaluation and plan for drilling and permitting • Portfolio development now the next step in overall corporate development • Identify low activity, non-core and unfashionable assets with upside • Acq
Slide 29: Contact Us
Contact Us Rose Petroleum plc Matthew Idiens First Floor Newmarket House Market Street Newbury Berkshire RG14 5DP United Kingdom +44 (0) 207 225 4595 www.rosepetroleum.com 29
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