Prominence Energy Limited · ASX:PRM
Prominence Energy — Shareholder Meeting (November 2019)
23 slides from Prominence Energy's shareholder meeting presentation, Nov 29, 2019
Slide 1: AGM Presentation Bowsprit Project
BEING RENAMED TO AGM PRESENTATION BOWSPRIT PROJECT CONVENTIONAL OIL DEVELOPMENT: OFFSHORE LOUISIANA Alex Parks Managing Director and CEO 29 November 2019
Slide 2: Important Information - Disclaimer
IMPORTANT INFORMATION - DISCLAIMER This presentation has been prepared by Sun Resources NL (“Sun”) for the purpose of providing a company and technical overview to interested parties to enable recipients to review the business activities of Sun. This presentation is limited in scope and is not inten
Slide 3: Executive Summary
EXECUTIVE SUMMARY ▪ Focus on Gulf of Mexico High Profit Margin Conventional Oil ▪ Sun has 100% Working Interest in 1,154 acres leased in the Breton Sound Area, inland shallow waters offshore Louisiana, 70km southeast of New Orleans ▪ Conventional exploration and development, with good quality reserv
Slide 4: Corporate Snapshot
CORPORATE SNAPSHOT Capital Structure: As at 30 October 2019 Share Price History: As at a 30 October 2019 ASX code SUR Ordinary shares on issue as at July 2019 1,319m Listed options (A$0.01) exp. 19 October 2020 393.8m Unlisted options (A$0.004) exp. 31 Dec 2020 147.33m (+153.75m once AGM approved) S
Slide 5: Sun Resources Board & Management
SUN RESOURCES BOARD & MANAGEMENT Ian McCubbing William Bloking Patrick Glovac Alex Parks Jo-Ann Long Chairman Director Director Managing Director CFO/Co Sec ➢ GAICD Professional ➢ FAICD - Leading Energy ➢ Resources and ➢ GAICD - Petroleum Engineer ➢ FCA, GAICD – Chartered Director & Chartered expert
Slide 6: Focus Area - Breton Sound, Louisiana
FOCUS AREA - BRETON SOUND, LOUISIANA Prolific Hydrocarbon Province ▪ St Bernard & Plaquemines Parishes (Red Oval) have produced 1.2billion bbls of oil and 5.2Tcf of gas since 1978 ▪ Favourable sedimentary circumstances combine with a variety of structures to provide excellent conditions for accumula
Slide 7: Background
Background ▪ The Bowsprit Lease ▪ The lease area contains several historical fields, including an undeveloped oilfield ▪ Lease overlies a field first developed by Shell in the 1960s for deep gas (450ft column, ~46bcf produced) ▪ Oil & gas has been proven to flow from shallower oil and gas zones but
Slide 8: Breton Sound - Bowsprit Project cont…
BRETON SOUND – BOWSPRIT PROJECT cont… Bowsprit Redevelopment Potential ▪ Low drilling costs using readily available Barge Drilling Rigs ▪ Low cost production facilities: in < 3m of water, extensive existing infrastructure, ready offtake arrangements and low unmanned operating costs ▪ Horizontal Dril
Slide 9: Bowsprit RISC Interpretation (April 2018)
BOWSPRIT RISC INTERPRETATION (April 2018) ▪ Field schematic RISC interpretation ▪ The Bowsprit Field is covered by high quality 3D seismic; it has an area of approximately 1,000 acres (4km2) ▪ The 7,200’ sand has a strong structurally conforming seismic amplitude anomaly. The 7,200’ sand is juxtapos
Slide 10: Sun's Deterministic Interpretation
SUN’S DETERMINISTIC INTERPRETATION 7400 pick event is a well documented recognised Type I sequence boundary separating the Middle and Upper Miocene (10.5my SB) The 7,400 Sand is an Upper Miocene Sand. The 7,400 Deep is a Middle Miocene Sand The 10.5 Sequence boundary is a disconformable surface with
Slide 11: RISC Resource Summary (April 2018)
RISC RESOURCE SUMMARY (April 2018) RISC Advisory Ltd probabilistically estimated the following contingent and prospective resources for the Bowsprit Project as of 15 March 2018: RISC’s independent estimate of resources for the field within polygon of held leases is tabulated below (Sun increased fro
Slide 12: RISC STOIIP Summary (April 2018)
RISC STOIIP SUMMARY (April 2018) RISC Advisory Ltd has probabilistically estimated the following STOIIP & GIIP for the Bowsprit Project as of 15 March 2018: Potential Hydrocarbons Initially in Place Sand P90 P50 P10 Units Status Proven in Place Flowed 1Bscf in 1960’s 7,200’ 1.47 1.89 2.37 Bscf Prove
Slide 13: Bowsprit 3D Modelled Structure
BOWSPRIT 3D MODELLED STRUCTURE Map and Area of Contingent Resources, Prospective Resources and Suns Top Structure Map ▪ RISC maps an onlap (7,400’ sand) and underlying deeper sand (7,400’ deep) ▪ Subsequently with digitised logs and facies modelling ▪ Sun mapped a package of sands under the 200ft th
Slide 14: Sun's Deterministic Mapping to Locate Well-1
SUN’S DETERMINISTIC MAPPING TO LOCATE WELL-1 7,400’ T2 Structural Well 1 in Proven Area – Closure to show commercial Rate possible (~1,000bopd) from Horizontal well. T2 76,000bbls flowed in 1960’s at ~100bopd. Potential for early tie 7,400’ Middle Miocene Sand (Above Flowed oil) 7,400’ Upper Miocene
Slide 15: Appraisal Well - Vertical Pilot + Horizontal
APPRAISAL WELL - VERTICAL PILOT + HORIZONTAL Sun’s Target Timetable & Work Program Permit appraisal well surface location Sept – November 2019 Permitted to drill by December 2019 Drill pilot hole to test Middle Miocene and Horizontal Well to flow test Upper Miocene Q1 2020 First Commercial Oil Produ
Slide 16: Fit for Purpose, Low Cost Development Options
FIT FOR PURPOSE, LOW COST DEVELOPMENT OPTIONS Shallow-draft barge drilling rig Suspended well with protection cage Typical production facility Production facility Typical well head with walkway to facilities Storage tanks with walkway to facilities 16
Slide 17: Bowsprit Development Plan
BOWSPRIT DEVELOPMENT PLAN ▪ T1 (Upper Miocene Proven Oil) • Initial horizontal crestal well will be tied back to Yuma/Cox Production facility for early cashflow. • IP ~1,000bopd, EUR ~100-750kbbls ▪ T2 (Middle Miocene Prospective Oil) • If/once proven to contain mobile hydrocarbons, 1-2 horizontal w
Slide 18: The Project - Single Well Tie Back Options
THE PROJECT – Single Well Tie Back Options Four Potential Local Facilities that could be tied back to. Tie back costs ~US$0.5- $1million 3rd Party Processing cost Gas Hub • Less than US$ 2/bbl oil/water • ~US$0.2 / Mscf The appraisal well may be produced via tie back pipeline to a nearby facility at
Slide 19: The Project - Field Development Plan (T1 + T2)
THE PROJECT – FIELD DEVELOPMENT PLAN (T1 + T2) Conceptual Field Development Plan Assuming Middle Miocene (T2) 7,400’ sand contains oil 5.75MMbbls & 7Bcf of associated gas is produced 2nd hand production facility installed and Middle Miocene well drilled in ~ November 2020 Essentially covered by cash
Slide 20: Sun's Growth Plan
SUN’S GROWTH PLAN ▪ Foundation Asset – Bowsprit Lease (Sun 100%) ▪ Primary field on known accumulation with redevelopment potential ▪ 3D modelling and visualization, permitting in progress ▪ Farm –out & funding support for drilling ▪ Drill & flow test well 1 to prove commercial rates & prove whole s
Slide 21: Expected Newsflow Over the Next Months
EXPECTED NEWSFLOW OVER THE NEXT 6 MONTHS Permit surface location ~3 months ▪ State Permit 1: Louisiana Office of Coastal Management – Granted ▪ State Permit 2: St. Bernard Parish Drilling Permit - Granted ▪ Federal Permit – U.S. Army Corps of Engineers – Granted Farm-in Partner Q4 2019 ▪ Farm out Pr
Slide 22: Conclusion
CONCLUSION ▪ Sun seeks to deliver project value for Shareholders from its 100% holder and Operator of a Low CAPEX, high margin, oil appraisal / development project. ▪ Project offers significant potential compared to current Market Cap of A$2.64million ▪ Sun intend to raise funds to drill and/or farm
Slide 23: For Further Information
ABN 69 009 196 810 Level 2, 30 Richardson Street, West Perth WA 6005 Telephone: +61 8 9321 9886 Facsimile: +61 8 9321 8161 Email: admin@sunres.com.au Website: www.sunres.com.au For further Information Media and Investor Enquiries Mr Alex Parks (Managing Director and CEO) Email: alex@sunres.com.au De
Prominence Energy — Shareholder Meeting (November 2019) on 6ix