Carnarvon Energy Limited · ASX:CVN
Carnarvon Energy — Carnarvon Petroleum — Investor Presentation (May 2012)
43 slides from Carnarvon Energy's investor presentation, May 3, 2012
Slide 1: CVN Corporate Presentation
CVN Corporate Presentation 3 May 2012 For personal use only ASX ANNOUNCEMENT Carnarvon Petroleum Limited (“Carnarvon”) (ASX:CVN) is pleased to provide shareholders with the attached CVN Corporate Presentation given by Mr Adrian Cook, Managing Director, Carnarvon Petroleum to shareholders and investo
Slide 2: Corporate Presentation May 2012
For personal use only Corporate Presentation May 2012 1
Slide 3: Disclaimer
For personal use only Disclaimer The information in this document, that relates to oil exploration results and reserves, is based on information compiled by the Company’s Chief Operating Officer, Mr Philip Huizenga, who is a full$time employee of the Company. Mr Huizenga consents to the inclusion of
Slide 4: Strategic focus
Strategic focus For personal use only Carnarvon is an oil and gas exploration and production company pursuing material returns from exploration, appraisal, development and production assets, focusing on: 1. S.E Asia & Australia Asia and Australia contain some of the largest producing basins in the w
Slide 5: Current asset holding
Current asset holding For personal use only 55% L20/50 45% L44/43, L33/43 and SW1A 60% 40% L52/50 and L53/50 Phoenix WA#435 & WA#437 50% 50% 50% 50% Greater Phoenix WA#399P WA#436 & WA#438 50% 50% 15% 50% 13% 12% WA#443 100% Exploration/Appraisal Production 4
Slide 6: Why Carnarvon now?
Why Carnarvon now? For personal use only 1. Current share price underpinned by reserves (*) Independently (GCA) certified Proved Reserves (1P) of 3.8mmbbls valued at $84m (NPV10) or $0.12 per CVN share • Upside – Probable Reserves of 8.3mmbbls, valued at an additional $138m • Upside – Possible Reser
Slide 7: Indicative activity schedule 2012/13
Indicative activity schedule 2012/13 For personal use only 2012 2013 Australia Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 WA-435-P (CVN 50%) Farmout Well planning Well WA-437-P (CVN 50%) Farmout Well planning Well WA-436-P (CVN 50%) 3D Survey Licence Data Process 3D Interpret 3D Farmout WA-443-P (CVN 100%) 3D Survey L
Slide 8: Key priorities
Key priorities For personal use only Carnarvon’s three key priorities in Q2 and Q3, 2012 are: 1. Commence WBEXT sandstone drilling in Thailand (L44/43) • Currently the joint venture is ready to commence an initial circa 10 well programme and is awaiting environmental approval from the government 2.
Slide 9: Corporate overview
Corporate overview For personal use only Key capital statistics Shareholder base Shares on issue 693.3 million Foreign Held by directors & staff 69.0 million institutions Domestic 6% Market capitalisation (A$0.13/share)* ~$90 million institutions 9% Liquidity (% of stock traded per annum) ~90% Direc
Slide 10: Historical sources and uses of funds
Historical sources and uses of funds For personal use only 1. Capital raised of $16m in 2007 was used to discover and fund the development of Carnarvon’s Thailand oil field (L44/43 & L33/43) 2. Funds from oil field operations in Thailand also funded Carnarvon’s acquisition and exploration activities
Slide 11: Status of current assets
Status of current assets For personal use only Exploration Appraisal / Development Production / Revenue Australia Farmout for drilling beside Phoenix-1 WA-435-P (CVN 50%) discovery & on 3D seismic data Farmout for drilling near Phoenix-1 WA-437-P (CVN 50%) discovery & on 3D seismic data New 3D seism
Slide 12: Conclusion
Conclusion For personal use only 1. Actively drilling in Thailand in 2012 • Producing volcanic reservoir wells and conventional sandstone development underpinning current share price. • Success in volcanic reservoir drilling provides upside in the share price. • WBEXT sandstone drilling will commenc
Slide 13: Appendix 1. Directors & Management
For personal use only Appendix 1. Directors & Management 12
Slide 14: 1.1 Directors and Management
1.1 # Directors and Management For personal use only Peter J Leonhardt – Chairman FCA, FAICD (Life) Peter is an independent company director and adviser with extensive business, financial and corporate experience. He is a Chartered Accountant, former Senior Partner with PricewaterhouseCoopers and Ma
Slide 15: 1.2 Directors and Management
1.2 # Directors and Management For personal use only Ted Jacobson $ Non$Executive Director $ BSc (Hons Geology) Ted is a petroleum geophysicist with 44 years experience in petroleum exploration principally in the European North Sea, South East Asia, South America and Australia. Prior to joining Carn
Slide 16: Appendix 2. Australian asset overview
For personal use only Appendix 2. Australian asset overview 15
Slide 17: 2.1 Phoenix (WA-435-P & WA-437-P)
For personal use only 2.1 # Phoenix (WA#435#P & WA#437#P) 16
Slide 18: 2.2 Phoenix South & Roc Prospects
2.2 # Phoenix South & Roc Prospects For personal use only 1. Working petroleum system proven by the Phoenix$1 discovery. 2. 3D and 2D seismic data acquired in late 2010 and early 2011 provided greater CVN Assets detail around the Phoenix 1 and 2 wells and contributed to our understanding of the surr
Slide 19: 2.3 3D visualisation of the Phoenix 3D seismic survey
2.3 # 3D visualisation of the Phoenix 3D seismic survey near top gas depth surface (241T) For personal use only Phoenix#2 Phoenix#1 Roc Phoenix South New Lead New Lead 18
Slide 20: 2.4 Proven gas in place in Phoenix wells
2.4 # Proven gas in place in Phoenix 1 & 2 wells Phoenix 2 Phoenix 1 Keraudren 1 Phoenix#1 well, drilled by BP in 1980 For personal use only 240S 4,000m 4,100m 1. Intersected a gross 767m gas column in 241T Mid$Late Triassic sandstones (4113$4880m) with gas influx as TD. 4,200m 4,300m 2. Phoenix$2 e
Slide 21: 2.5 Phoenix South & Roc prospects
2.5 # Phoenix South & Roc prospects For personal use only 1. Drillable prospects in Phoenix South and Roc • Supported by 3D seismic data and Phoenix$1 gas discovery. The key objective is to find the proven gas in better quality reservoir. 2. Material volumes independently assessed • 1 to 2 Tcf mean
Slide 22: 2.6 Routes to realise value
2.6 # Routes to realise value For personal use only Routes to Realise Value Explore and Other Develop Activities Asset Domestic Liquids LNG Feed Domestic Asset LNG Project realisation Gas Stripping Supply Gas Swaps Swaps (all or part) Significant volume potential • Interest in farmout includes major
Slide 23: 2.7 Greater Phoenix
For personal use only 2.7 # Greater Phoenix (WA#436#P, WA#438#P & WA#443#P) 22
Slide 24: 2.8 New Zeester 3D seismic survey
2.8 # New Zeester 3D seismic survey For personal use only 1. Strategic timing of survey, Zeester 3D data expected to be available late Q4, 2012. Zeester 3D The multi client survey is currently being conducted by Fugro. It is 76% complete and Phoenix#1 gas discovery & is expected to be finished in Ph
Slide 25: 2.9 Upside Potential – Leads covered by 3D
2.9 # Upside Potential – Leads covered by 3D Leads For personal use only Minilya Bedout Prospects Deep updip Zeester 3D (30 km2) Phoenix 3D 2D Seismic Phoenix South (76km2) Bandy Salamander WA#435#P (100 km2) (70 km2) WA#436#P WA#443#P New Leads (5 # 10 km2) Roc (81km2) WA#437#P WA#438#P 30km 24
Slide 26: 2.10 Bandy lead
2.10 # Bandy lead For personal use only WA#435#P WA#436#P 1. Woodside identified the Bandy lead as a potential multi Tcf resource. Reprocessing of the 2D data in 2011 improved the quality and provided greater 239T Base Cossigny Limestone Depth Map confidence in this lead. ReproUpdated far data Finde
Slide 27: 2.11 Gazelle (WA-399-P)
For personal use only 2.11 # Gazelle (WA#399#P) 26
Slide 28: 2.12 WA-399-P
2.12 # WA#399#P For personal use only 1. Exploration success in the Exmouth Sub$basin has resulted in numerous material oil and gas fields. 2. Apache’s new Gazelle 3D seismic survey covers the entire permit. Exmouth Sub$basin Final processing is now ~91% complete. WA$399$P 3. Technical interpretatio
Slide 29: 2.13 Macedon fan play fairway
2.13 # Macedon fan play fairway For personal use only Macedon Play Fairway Basin Enfield Crosby Laverda Scafell Macedon Pyrenees N Trend 10km WA$399$P 1. Macedon play fairway is well established in the area and seismic mapping suggests extension of the play into WA$399$P. 2. High quality 3D seismic
Slide 30: Appendix 3. Thailand asset overview
For personal use only Appendix 3. Thailand asset overview 29
Slide 31: 3.1 Positives of Thailand
3.1 # Positives of Thailand For personal use only 1. Proven, producing petroleum basins present onshore and in shallow water offshore. 2. Low cost operating and drilling environment, coupled with stable fiscal terms result in high margin operations. 3. Operating environment is world class with regul
Slide 32: 3.2 Oil Fields (L44/43 & L33/43)
For personal use only 3.2 Oil Fields (L44/43 & L33/43) 31
Slide 33: 3.3 Background
3.3 # Background For personal use only 1. Active exploration and L33 development since 2005 Current Area included: • 580 km2 of 3D seismic • 11 wells in L33/43 • 164 wells in L44/43. Proposed L33 Reserved Area ~ 500 km2 2. Nine new oil fields discovered Current production which have produced 11 mmbl
Slide 34: 3.4 Historical production
3.4 # Historical production For personal use only 1. Significant resources have been invested to understand these complex volcanic fields. 2. High Initial flow#rates realised significant cash flows. Subsequent appraisal and development has proven more challenging. 3. Forward drilling activities will
Slide 35: 3.5 Dec 2011 GCA Reserves
3.5 # Dec 2011 GCA Reserves For personal use only 1. 1P reserves valued at $84m Net CVN GCA Reserves 1P 2P 3P (by GCA on an NPV10 basis) Volcanic requiring ~25 wells in 2012.* L33 NSE 0.1 1.1 0.4 3.4 1.4 6.4 Bo Rang 1.7 3.9 5.7 2. 2P reserves valued at $222m WBExt 0.1 0.9 1.7 (by GCA on an NPV10 bas
Slide 36: 3.6 Proposed exploration program
3.6 # Proposed exploration program For personal use only The proposed 5 year exploration program incorporates: 1. 100#200 km2 3D seismic data acquisition across L33/43 and L44/43 • To enhance prospectivity of currently mapped leads 2. 200km 2D seismic data acquisition in the northern area in L33/43
Slide 37: 3.7 Surat-Khiensa basin (L52/50 & L53/50)
For personal use only 3.7 # Surat#Khiensa basin (L52/50 & L53/50) 36
Slide 38: 3.8 Exploring carbonate plays
3.8 # Exploring carbonate plays For personal use only 1. Large structures have Offshore Nang Nuan Oil Field: been interpreted in the Permian Limestone “Buried hill” play type, proven in new 2D seismic data Chumphon Basin to the north 2. Carbonate plays akin to offshore basins hold potential for mate
Slide 39: 3.9 Phitsanulok basin (L20/50)
For personal use only 3.9 # Phitsanulok basin (L20/50) 38
Slide 40: 3.10 Exploring for on trend oil
3.10 # Exploring for on trend oil For personal use only 1. 200 mmbbl Sirikit Oil Field, which has produced over 150 mmbbls and still producing ~25,000bopd, is analogous to L20/50. 2. Shell drilled Nong Bua#1 well in 1982 with oil shows and potential oil column in sandstone. 3. Carnarvon as Operator
Slide 41: 3.11 Current status
3.11 # Current status For personal use only 1. Post well technical work Interpreted extent of hydrocarbon kitchen completed with matured leads supporting material volumes of oil. • ~40 structural features • Individual leads up to 70 mmbbls OOIP. Lead polygons 2. Stacked reservoir potential mapped at
Slide 42: 3.12 Reservoir
3.12 # Reservoir For personal use only 5km ~13m net sand Petrophysics on >100m net sand Reservoir quality penetrated in Nong Bua (Crocker, identified from Tapao sands were Krai Thong$1, with 2009) identifed Kaew petrophysics penetrated in all porosities ranging several potential with porosities rang
Slide 43: For personal use only
For personal use only Ground Floor 1322 Hay Street West Perth WA 6005 Telephone: +61 (8) 9321 2665 Fax: +61 (8) 9321 8867 www.carnarvon.com.au
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