Carnarvon Energy Limited · ASX:CVN
Carnarvon Energy — Carnarvon Petroleum — Investor Presentation (January 2018)
48 slides from Carnarvon Energy's investor presentation, Jan 24, 2018
Slide 1: Corporate presentation January 2018
For personal use only Corporate presentation January 2018
Slide 2: Disclaimer
Disclaimer For personal use only The Resource estimates outlined in this report have been prepared by the Company’s Chief Operating Officer, Mr Philip Huizenga, who is a full-time employee of the Company. Mr Huizenga has over 25 years’ experience in petroleum exploration and engineering. Mr Huizenga
Slide 3: Snapshot
Snapshot For personal use only Business Oil & gas exploration / development in North Western Australia Financial Market capitalization ~A$108m, cash A$49m, enterprise value A$59m Ownership Top 20 hold ~24%, Board & management hold ~6% Catalysts 2018 Phoenix South-3 & Dorado-1 wells, Buffalo & Laybri
Slide 4: Extensive project portfolio
Extensive project portfolio For personal use only 4
Slide 5: 2018 Focus
2018 Focus For personal use only Project 2018 focus Phoenix Phoenix Sth-3 well (March 2018) 29 mmboe net CVN Dorado-1 well (May 2018) 25 mmboe net CVN (primary) 89 mmboe net CVN (secondary) Buffalo Progress to drill in oil field 31 mmbbls net CVN Labyrinth Farm out large oil target Condor Farm out /
Slide 6: Phoenix project
For personal use only 6 Phoenix project
Slide 7: 2018 focus on lower risk targets, massive upside
2018 focus on lower risk targets, massive upside For personal use only History 2014 Phoenix Sth-1 oil discovery in Barret interval 2015 Roc-1 oil & gas discovery in Caley interval 2016 Roc-2 appraisal of oil & gas discovery in Caley 2017 Phoenix Sth-2 oil & gas encountered in Caley 2018 focus (resou
Slide 8: Phoenix South-3 well
Phoenix South-3 well For personal use only Well spuds March 2018 - 550m from Phoenix South-2 discovery (PS-2); - PS-2 intersected oil and gas in Caley interval; - high confidence well will intersect oil and gas; - objective to evaluate reservoir & volumes. Existence of gas & condensate confirmed 8
Slide 9: Dorado-1 well
Dorado-1 well For personal use only Well spuds May 2018 - 15 km from Roc discoveries in Caley interval, - targeting oil and gas in the Caley interval; - also testing for oil and gas in deeper sands; - Trap similar to those working in Gippsland Basin 9
Slide 10: Buffalo project
For personal use only 10 Buffalo project
Slide 11: New technology better images oil field potential
New technology better images oil field potential For personal use only Previous field produced 20 mmbbls CVN focused on unproduced area 11
Slide 12: Clear and compelling project
Clear and compelling project For personal use only 31 million barrels US$2.0 billion in revenue at current oil prices Development costs expected to be ~US$5 per barrel Operating costs WIP – most sensitive to FPSO cost CVN owns 100% controlling current work flows Straight forward re-development Image
Slide 13: Current status
Current status For personal use only Subsurface Mapping is underway on stage III FWI processing being prepared for optimal development planning Drilling Drill locations and well plans will be finalized once the subsurface and modelling work are complete Development Development similar to the previou
Slide 14: Labyrinth project
For personal use only 14 Labyrinth project
Slide 15: 1.5 billion barrels recoverable
1.5 billion barrels recoverable For personal use only Opportunity interpretation of reprocessed 2-D seismic reveals significant prospects Source proprietary data and knowledge highlights key oil source in region Labyrinth prospect is the largest identified so far at 90 sq.km (Lower Depuch Formation)
Slide 16: Condor project
For personal use only 16 Condor project
Slide 17: Prospects in oil and gas rich basin
Prospects in oil and gas rich basin For personal use only Acquired November 2017 (AC/P62) Targeting oil near existing oil fields Differentiator new 3D seismic Plan farm out in 2018/19 17
Slide 18: Outtrim project
For personal use only 18 Outtrim project
Slide 19: Belgravia prospect
Belgravia prospect For personal use only Swell-1 well drilled in 2017 - Gas over 450m gross column - Gas in tight reservoir s Belgravia prospect - Updip of Swell - ~650m shallower than Swell Encouraging that Swell-1 proved there is a working petroleum system in the Triassic interval in this area. Th
Slide 20: Maracas project
For personal use only 20 Maracas project
Slide 21: Stacked pay potential in proven oil producing basin
Stacked pay potential in proven oil producing basin For personal use only FWI reprocessing aimed at Stag & deeper intervals 21
Slide 22: Wrap up
For personal use only 22 Wrap up
Slide 23: North West Shelf focus and expertise
For personal use only North West Shelf focus and expertise Extensive portfolio with a pipeline of opportunity Near term catalysts in next 12 months - Phoenix South-3 well (March 2018 spud) - Dorado-1 well (May 2018 spud) - Buffalo development plans and economic updates (throughout 2018) - Belgravia
Slide 24: Supplemental information
For personal use only Supplemental information
Slide 25: Supplemental information to the presentation
For personal use only Supplemental information to the presentation Content: 1. Project portfolio summary 2. Oil & gas volume summary 3. Buffalo project 4. Phoenix project 5. Labyrinth project 6. Outtrim project 7. Maracas project 8. Cerberus project 9. Board & management 10. Corporate 25
Slide 26: Portfolio – permit locations and equities
Portfolio – permit locations and equities For personal use only 26
Slide 27: Project portfolio - summary
For personal use only Project portfolio - summary Project Permits Equity holders Status Buffalo WA-523-P CVN 100% Appraisal to oil field redevelopment Phoenix WA-435-P & WA-437-P CVN 20% & Quadrant Appraisal and exploration of discovered oil and Energy 80% gas Phoenix WA-436-P & WA-438-P CVN 30% & Q
Slide 28: Oil & gas volume summary (51 million barrels recoverable net 2C)
For personal use only Oil & gas volume summary (51 million barrels recoverable net 2C) Refer to Carnarvon’s ASX announcements of 14 November 2016, 28 March 2017 & 28 August 2017 for comprehensive details of 28 these volume estimates. These resources were calculated using a combination of probabilist
Slide 29: Oil & gas volume summary (2,480 million barrels recoverable net Pmean)
For personal use only Oil & gas volume summary (2,480 million barrels recoverable net Pmean) Refer to Carnarvon’s ASX announcements of 14 November 2016, 28 March 2017, 8 May 2017, 13 June 2017 for comprehensive 29 details of these volume estimates. These resources were calculated using probabilistic
Slide 30: Oil & gas volume – SPE definitions
For personal use only Oil & gas volume – SPE definitions Carnarvon calculates reserves and resources according to the SPE/WPC/AAPG/SPEE Petroleum Resource Management System (“SPE-PRMS”) definition of petroleum resources. This was first published in 1997 by the SPE, and in an effort to standardise re
Slide 31: Oil & gas volume - summary
For personal use only Oil & gas volume - summary Buffalo project Buffalo contingent resources fall within the “Development Pending” category. Once Carnarvon finalises its redevelopment work the resources can be reclassified as reserves under the category “Justified for Development”. Phoenix project
Slide 32: Buffalo project - background
For personal use only Buffalo project - background The Buffalo field was discovered in October 1996, when BHP Petroleum tested the Buffalo-1 well. The well flowed at 12,000 bpd of light 53° API oil. The oil has a particularly low gas oil ratio of 110. The field was operated by BHP Petroleum and cont
Slide 33: Buffalo project – technology solution
For personal use only Buffalo project – technology solution Based on Carnarvon’s experience trialing the first use of FWI (Full Waveform Inversion) technology in Australia in the Phoenix project, Carnarvon was in a position to immediately foresee the potential for this technology in other areas; Buf
Slide 34: Phoenix project - background
For personal use only Phoenix project - background The Phoenix project (WA-435-P, WA-436-P, WA-437-P & WA-438-P) is located in the Bedout sub- basin approximately 150 kilometres offshore from Port Hedland in Western Australia. During the global financial crisis of 2008 and 2009 Carnarvon and its par
Slide 35: Phoenix project – Phoenix South
For personal use only Phoenix project – Phoenix South In late 2016 / early 2017 the Phoenix South-2 well intersected the top of the primary reservoir and discovered oil and gas, but did not fully evaluate the resource due to the level of pressure encountered. This was an encouraging result, and as s
Slide 36: Phoenix project - Dorado
For personal use only Phoenix project - Dorado The Dorado prospect is only some 15 kilometres south of the Roc discoveries with an interpreted multi sand reservoir covered by the same top shales that seal in the Roc oil and gas. Those shales are also interpreted as providing the side seal in a chann
Slide 37: Phoenix project – seismic cross section
For personal use only Phoenix project – seismic cross section 37 Refer to Carnarvon’s ASX announcements of 14 November 2016 and 28 March 2017 for comprehensive details of these volume estimates. These resources are calculated using probabilistic methodology.
Slide 38: Phoenix project – development concepts
For personal use only Phoenix project – development concepts The oil and gas discovered to date and to be targeted in 2018 very much suits a development that ties the oil and gas back to a central well head platform and offshore primary processing. Oil would be held in a Floating Production Storage
Slide 39: Phoenix project – market scenarios
For personal use only Phoenix project – market scenarios • Browse pipeline NWS JV (LNG) • Port Headland pipeline (domgas) • Pilbara mining (domgas) 39
Slide 40: Labyrinth project - background
For personal use only Labyrinth project - background The Labyrinth project (WA-521-P) is located in the Rowley Sub-basin, offshore North West Shelf, north of Carnarvon’s Roc and Phoenix South hydrocarbon discoveries. The interpretation of newly reprocessed 2D seismic in the permit has revealed sever
Slide 41: Labyrinth project - volumes
For personal use only Labyrinth project - volumes Three source rocks are mature and generating today in WA-521-P, comprising the proven Lower Jurassic Murat siltstone, Lower Depuch carbonaceous shales and Upper Triassic marine shale of the Upper Keraudren formation. Sizable structures and prolific s
Slide 42: Outtrim project - Belgravia prospect
For personal use only Outtrim project - Belgravia prospect The Outtrim project (WA-155-P(1)) is located in the Exmouth basin and contains the significant Belgravia prospect in the Triassic interval. The prospect is similar in size and geology to the nearby Woodside operated Swell Triassic prospect.
Slide 43: Maracas project - background
For personal use only Maracas project - background The Maracas project (WA-524-P) is situated on the flanks of the Dampier Sub-Basin, a part of the highly prospective Greater Carnarvon Basin, on Western Australia’s North West Shelf. This large 1,210km² permit is located on the Enderby Terrace, which
Slide 44: Board of Directors
For personal use only Board of Directors Peter Leonhardt – Chairman An independent company director and adviser with extensive business, financial and corporate experience. Peter is a Chartered Accountant, former Senior Partner with PricewaterhouseCoopers and Managing Partner of Coopers & Lybrand in
Slide 45: Management team
For personal use only Management team Adrian Cook – Managing Director & Chief Executive Officer Philip Huizenga – Chief Operating Officer Dr Stephen Molyneux – Exploration Manager Dr Jeff Goodall – Chief Geologist Andrew Padman – Chief Geophysicist Thomson Naude – Chief Financial Officer and Company
Slide 46: Roc-2 flow test
For personal use only 46 Roc-2 flow test
Slide 47: Corporate
For personal use only Corporate 1. ASX ticker CVN Shareholder analysis at 31 Dec 2017 2. Shares on issue 1,028 million 3. Share price (16/1/18) 10.5 cents 4. Market capitalization (16/1/18) $108 million 5. Cash on hand (31/12/17) $49 million 6. Substantial shareholders none Carnarvon’s 52 week share
Slide 48: Think Different, Act Different
For personal use only Think Different Act Different 48
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