Byron Energy — Investor Presentation (May 2013)
23 slides from Byron Energy's investor presentation, May 2013
Slide 1: Corporate Presentation May 2013
Corporate Presentation May 2013
Slide 2: Disclaimer
Disclaimer This document has been prepared for the purpose of providing a company overview to interested parties. The Company will be engaged in the exploration, development and production of oil and gas. An investment in the Company must therefore be considered speculative. Accordingly, the Company
Slide 3: Company Snapshot
Company Snapshot Name: Byron Energy Limited ASX code: BYE Issued capital: 128m ordinary shares 37.3m options exercisable at $0.50 before 31/12/16 Market cap: $51.2m @ $0.40 Cash: $17m First target: South Marsh Island 6 hosting 1P reserves of 3.2MMbbls of oil Portfolio: 21 blocks in shallow water Gul
Slide 4: Who is Byron?
Who is Byron? • Byron has generated a portfolio of oil and gas prospects in the shallow waters of the Gulf of Mexico (GOM). • Key executives have a more than 20-year track record of successful operations in the GOM, resulting in significant shareholder returns. • A high impact portfolio of targets a
Slide 5: Board of Directors
Board of Directors Doug Battersby – Non-Executive Chairman (MSc Petroleum Geology and Geochemistry) Petroleum geologist with over forty years’ technical and managerial oil and gas experience. Co-founded Eastern Star Gas, SAPEX and Darcy Energy. Formerly Technical Director at Petsec Energy. Maynard S
Slide 6: Management
Management Maynard Smith – Chief Executive Officer (BSc Geophysics) See biography on previous slide. Nick Filipovic – Chief Financial Officer/Company Secretary (FCPA) Qualified accountant with over thirty years’ experience in the financial services and natural resources industries, including oil and
Slide 7: Operating Track Record
Operating Track Record • Wells initiated by Byron executives Doug Battersby, Maynard Smith and Prent Kallenberger (prior to founding Byron) have produced 22 MMBbls of oil and 263 Bcf of gas since 1992. • This equates to an average of over 3,000 barrels of oil per day and 36 million cubic feet of gas
Slide 8: Corporate Track Record
Corporate Track Record Petsec Energy Limited From 1990 to 1997, Maynard Smith and Doug Battersby (joined by Prent Kallenberger in 1992) were directly in charge of the exploration and development activities that resulted in the outstanding early success of ASX listed Petsec Energy Limited. Darcy Ener
Slide 9: Why Gulf of Mexico?
Why Gulf of Mexico? • Prolific petroleum province with high exploration drilling success rates • GOM offshore accounts for 23% of US oil production and 7% of gas production • BOEM estimates technically recoverable oil and gas resources in undiscovered fields on the Outer Continental Shelf to be 48,0
Slide 10: Seismic Interpretation
Seismic Interpretation • Byron utilises established and cutting edge technology in its assessment of properties • As computer systems have become more powerful, migration techniques have become more complex and better able to image complex geologic environments • Each improvement in migration yields
Slide 11: Reverse Time Migration
Reverse Time Migration Byron uses a seismic reprocessing technique called Anisotropic Reverse Time Migration (ARTM) where appropriate to image steep dips and complex velocity fields - two things usually associated with salt domes. Full Wave Equation Migration • ARTM involves a two way WEM migration
Slide 12: Seismic imaging comparison: 1990s 2D, 3D and 2011 RTM
1990s Vintage 2D Late 1990s 3D Pre Stack Time Migration 2011 Anisotropic Proposed Byron Proposed Byron Energy SM6 #1 Well Energy SM6 #1 Well Reverse Time (dashed portion to be drilled in a future well) Late 1990s 3D Pre (dashed portion to be drilled in a future well) Migration Stack Time Migration N
Slide 13: South Marsh Island Block 6 (WI 100%)
South Marsh Island Block 6 (WI 100%) • Byron’s initial area of focus is South Marsh Island Block 6 (“SMI 6”) • Prospect is located in 17m of water, 216km southwest of SMI 6 New Orleans Byron WI 100% • Block covers the western flank of a salt dome structure that has produced 18.6 MMBbls and 37.14 Bcf
Slide 14: Other Prospects
Other Prospects Byron holds 100% working interests in 21 GOM blocks offshore Louisiana, as described on the following page. Blocks contain numerous salt structures and drilling prospects. 14
Slide 15: Blocks Owned
Blocks Owned Properties Operator WI/NRI (%) Properties Operator WI/NRI (%) South Marsh Island Block 6 Byron 100.00/81.25 East Cameron Block 154 Byron 100.00/81.25 South Marsh Island Block 70 Byron 100.00/81.25 East Cameron Block 155 Byron 100.00/81.25 South Marsh Island Block 71 Byron 100.00/81.25 E
Slide 16: Reserves
Reserves Oil & Gas Reserves (net to Proved Proved & Proved, Probable & Byron, based on Byron’s NRI) Probable Possible Oil (MBbls) SMI 6 3,239 4,181 5,402 Other Properties 26 597 2,418 Total 3,265 4,778 7,820 Gas (MMcf ) SMI 6 6,684 7,997 11,447 Other Properties 12,939 61,905 153,300 Total 19,623 69,
Slide 17: Directors' Shareholdings
Directors’ Shareholdings Byron’s directors have large shareholdings and option holdings, ensuring strong alignment of interests with shareholders. Directors’ Interest Shares Options Fully diluted million % million % million % Doug Battersby 18.9 14.8 6.4 17.1 25.3 15.3 Maynard Smith 15.4 12.0 6.0 16
Slide 18: South Marsh Island Block 6
South Marsh Island Block 6 NW Exploratory Prospect NW EXPLORATORY FB - Non-Pressured Exploratory well Exploration Fault Block Conventional Section 4843 MBbl + 5.5 Bcf (Possible + Prospective) NORTH PROSPECT – Attic Well with Deep Exploration Tail 2483 MBbl + 28.4 Bcf (PUD + Prospective) North Prospe
Slide 19: SMI6 South West Prospect
SMI6 South West Prospect ne eli ip lP • Attic prospect with deep Oi exploratory tail • Significant downdip SALT production from wells DOME such as B11 well SMI6 • This well produced 386,000 barrels of oil over five years from the G20 A A’ sand Byron Energy • Estimated to have drained SM6 #1 12 acres
Slide 20: Byron Energy SM6 #1 – Cross Section – South West Prospect
‘Byron Energy SM6 #1’ – Cross Section – South West Prospect Byron Energy SM6 #1 B11 F Sands G 20 Sand Gross 2P Reserves for Byron Energy SMI6 #1 H Sands well across all sands: 4,082 Mbbls oil I Sands 21.3 Bcf of gas Deep Sands Source: August 2012 report by PPI 20
Slide 21: Risk Factors
Risk Factors There are a number of risks which may impact on the operating and financial performance of the Company. A full list of risk factors can be found in Section 2.3 of the Byron Energy replacement prospectus released to ASX on 2 April 2013. • Oil and gas exploration and development is a high
Slide 22: Contact Information
Contact Information For more information please contact: Doug Battersby Peter Love Chairman Investor Relations Byron Energy Limited Byron Energy Limited Tel: 02 9247 4211 peter.love@byronenergy.com.au Tel: 07 3121 5674 22
Slide 23: Competent Person Statement
Competent Person Statement The references to hydrocarbon reserves in this announcement are based on information reviewed and compiled into an Independent Technical Report by Mr Andrew Andrejewskis BSc, GradDip B Admin, FAusIMM (CP), FAIM. This report can be found within the company’s replacement pro