Synergia Energy Ltd · LSE:SYN

Synergia Energy — Oilex — Investor Presentation (February 2012)

33 slides from Synergia Energy's investor presentation, February 2012

  1. Slide 1: London Investor Presentation February 2012

    London Investor Presentation February 2012 India Potential Emerging 1

  2. Slide 2: Disclaimer

    DISCLAIMER The presentation in this projected form and as verbally presented (Presentation) is provided on the basis that none of the Company nor its respective officers, shareholders, related bodies corporate, partners, affiliates, employees, representatives and advisers make any representation or

  3. Slide 3: Corporate Overview

    CORPORATE OVERVIEW Share Price Performance and key events Capital Structure (at 24 February 2012) 40 12 Market listing AIM: OEX 35 10 ASX: OEX Daily Traded Volume (millions) 30 Share Price (GBp) 25 8 Shares issued 253.3M 20 6 Options and 34.1M 15 4 Performance rights 10 2 Free float 87% 5 0 0 Share

  4. Slide 4: Cambay Field Tight Reservoirs

    CAMBAY FIELD TIGHT RESERVOIRS Oilex : 45% Many favourable components to support a Commercial Project… Acreage  Large acreage position 161 km2 (39,783 acres)  Significant resource potential confirmed  Initial indications from C‐76 well encouraging Commercial Environment  High sustainable gas pric

  5. Slide 5: Indian Energy Market Fundamentals Attractive

    INDIAN ENERGY MARKET FUNDAMENTALS ATTRACTIVE  Gujarat; one of India’s fastest growing and most industrialised states  GDP growth rate 12.99% p.a. (2009‐10)  38% of Indian gas market  India gas demand rising fast with increasing LNG imports  Market gas prices > $6/mscf  Gujarat gas infrastructu

  6. Slide 6: Cambay 76H Well - Operations

    CAMBAY 76H WELL ‐ OPERATIONS  Well drilled with 610m horizontal section  8 stage frac stimulation completed in August  Milling assembly mechanically stuck after first stage milled  Retrieval operations interrupted by well control issues as well started to flow  Higher mud weight has stabilised

  7. Slide 7: Cambay 76H Well - Operations

    CAMBAY 76H WELL ‐ OPERATIONS  Well control issues resolved – currently stable  Fishing operations near completion – 38m coiled tubing + 12m milling assembly to recover  Milling operations to resume soon 2011 2012 Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr Drilling Milling Tool Stuck Well Contro

  8. Slide 8: Cambay 76H Well - Transfer of Technology

    CAMBAY 76H WELL ‐ TRANSFER OF TECHNOLOGY  First well of its kind in India  Drilled and completed horizontal well successfully  Applied modern technologies  Multiple Swellable Packers, Sliding Sleeve Completion, LWD and rotary steerable system  All 8 fracture stimulation stages successfully exec

  9. Slide 9: Cambay 76H Well - Transfer of Technology

    CAMBAY 76H WELL ‐ TRANSFER OF TECHNOLOGY  Large scale multi‐stage fracture stimulation through sliding sleeve completion  Surface micro seismic array recorded events during stimulation Frac tree program Baker Hughes hydraulic fracture stimulation equipment Completion stage isolation balls Interpre

  10. Slide 10: Revised Predicted Production Profiles

    REVISED PREDICTED PRODUCTION PROFILES  NuTech Fracture stimulation models updated using Cambay 76H injection test data  Updated models consistent with pre‐drill production profile models  Estimated Ultimate Recovery (EUR) > 3 BCFE gross 10

  11. Slide 11: Cambay Independent Hydrocarbon Assessment

    CAMBAY INDEPENDENT HYDROCARBON ASSESSMENT  Prepared by Netherland Sewell and Associates Unrisked Contingent Resources (Net OEX) 1C 2C 3C Natural Gas (BCF) 80 222 482 Oil (MMbbls) 14 37 80 Unrisked Prospective Resources (Net OEX) Low Best High Natural Gas (BCF) 116 420 1,634 Oil (MMbbls) 16 63 248 

  12. Slide 12: Cambay Stratigraphic Subdivision

    CAMBAY STRATIGRAPHIC SUBDIVISION C‐20 5.20 km C‐40 Arbitrary 3D seismic line Cambay‐ 20 to Cambay‐40 Top X Contingent Top Y Resources Top Z NSAI 180-200 Top 180–200 Top 200–300 NSAI 200-300 Prospective Resources Top 300 – 400 NSAI 300-400 Base 300‐400 12

  13. Slide 13: Indicative Work Program - Delineation Wells

    INDICATIVE WORK PROGRAM – DELINEATION WELLS D Location Cambay‐76H  Pilot + Horizontal Oil Prone Gas Prone  Core and log data to correlate with Area Area C76H production test  Optimised well + completion design  Book X + Y zone reserves + early D production potential A A Location G  Vertical  I

  14. Slide 14: Indicative Work Program - Early Production System

    INDICATIVE WORK PROGRAM ‐ EARLY PRODUCTION SYSTEM  Indicative EPS production rate up to 20 MMscf/d  Produce Cambay 76H and future delineation wells on $millions / mmscfd success through EPS  Unit of capacity cost reduces as production increases Economies of scale  Model – Farrell Creek developme

  15. Slide 15: Indicative Cambay Project Schedule

    INDICATIVE CAMBAY PROJECT SCHEDULE 2012 2013 Cambay-76H Test CPR Vertical Wells Further D, G, A wells wells? Core & Log Analysis CPR Horizontal Wells (D + C) G, D wells Production Test / Production CPR Early Production System 15

  16. Slide 16: Future Development Well Costs

    FUTURE DEVELOPMENT WELL COSTS  Cluster pad efficiencies e.g. Cambay 76H location  Minimise environmental footprint  Multi well drilling campaigns  Shared equipment mob & demob, roads, location, well site facilities  Purchasing power on service contracts  Central gas gathering and collection fa

  17. Slide 17: Timor Sea - JPDA

    TIMOR SEA ‐ JPDA JPDA 06‐103 Oilex:10%, Operator  Discussions for exploration well in H2 2012  Significant potential in northern part of contract area – higher risk  Infill 3D seismic survey and interpretation completed  Tutuala prospect confirmed  Mean Prospective Resources 67mmbo (100% basis)

  18. Slide 18: Success at Cambay Will Transform Oilex

    SUCCESS AT CAMBAY WILL TRANSFORM OILEX  OEX core strength is India  Indian market fundamentals very attractive  Demand/supply gap widening  Cambay close to infrastructure and markets  Potential near term cash flows  Cambay resource potential confirmed  New technology successfully transferred

  19. Slide 19: Appendix

    SSsq3x~s DILEXLTD APPENDIX 19

  20. Slide 20: Recent Take Off by Australian Listed Shale Plays

    RECENT TAKE OFF BY AUSTRALIAN LISTED SHALE PLAYS 350 Drillsearch (320% uplift) Indexed Price performance (1 Jul 2011 = 100) 300 Buru Energy(293% uplift) Senex Energy (273% uplift) 250 200 Beach Energy (185% uplift) 150 100 ASX All Ords (6% decline) 50 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12

  21. Slide 21: Valuation: Acreage Multiples

    VALUATION: ACREAGE MULTIPLES 30,000 25,000 average: $21,135/acre 20,000 average: $16,654/acre $/acre 15,000 Overall average of $13,920/acre 10,000 average: $8,421/acre average: $6,386/acre 5,000 - *Aurora: $85,572/acre US Transactions 2010 US Transactions 2011 AUS listed Shale peers US listed Shale

  22. Slide 22: Valuation: Comparative Transaction Multiples

    VALUATION: COMPARATIVE TRANSACTION MULTIPLES Transaction Announced Value Acreage Acquisition Date Acquirer Target Basin type (US$m) ('000 acres) value/acre Jun‐10 Reliance Pioneer Resources JV Eagle Ford 1,300 263 4,943 Oct‐10 CNOOC Chesapeake Asset Sale Eagle Ford 1,100 200 5,501 Oct‐10 Talisman/St

  23. Slide 23: Valuation: Comparative Trading Multiples

    VALUATION: COMPARATIVE TRADING MULTIPLES COMPANY MARKET EV LOCATION Exchange NET ACREAGE EV/ACRE 1P 2P 3P EV/1P EV/2P EV/3P CAP (Acres) ($/acre) (mmboe) (mmboe) (mmboe) Cooper, Gippsland, Beach 1,821.2 1,653.6 Other ASX 2,654,631 nm 77.0 ‐ 21.5 ‐ Aurora 1,317.3 1,378.7 Eagle Ford ASX 16,365 85,572 5

  24. Slide 24: Valuation: Comparative Trading Multiples

    VALUATION: COMPARATIVE TRADING MULTIPLES COMPANY MARKET EV LOCATION Exchange NET ACREAGE EV/ACRE 1P 2P 3P EV/1P EV/2P EV/3P CAP (Acres) ($/acre) (mmboe) (mmboe) (mmboe) Newfield Woodford, Granite 5,653.1 8,607.1 US 685,000 12,565 618.7 1,030.8 13.9 8.3 ‐ Exp. Wash, Rosetta Eagle Ford, Alberta, 2,764

  25. Slide 25: Cambay PSC and Fiscal Terms

    CAMBAY PSC AND FISCAL TERMS PSC Terms and Fiscal Terms 9 years remaining + 10 year extension for gas project. PSC Term Ends 2029 with extension. Cost Recovery 100% on Capex, Opex, Royalty, Cess . No production cap. Gas Royalty 10% Oil and Condensate Royalty & Cess Rs. 1,381 per tonne ‐ approx. $4.2

  26. Slide 26: Gas Market 1

    OILEXLTD GAS MARKET 1 Figure 9: Trend in gas consumption by sector 140.0 m@ Power @ Industrial WTea Domestic 120.0 Captive Fertilizer mw Petro-Chemicals OCNG 100.0 @ Other fa) Co — = = S [| 5 60.0 40.0 “ i FY06 FY07 FY08 FY09 FY10 Source: MOP&NG Note: 1. LNG usage not considered. 26

  27. Slide 27: Gas Market 2

    GAS MARKET 2 DBILEXLTD Figure 22: Comparison of sector- wise demand All India and Gujarat 50% 7 | % Sector-wise Demand Distribution- Gujarat 45% + =| % Sector-wise Demand Distribution- All India 40% + 35% 4 30% + 25% 7 MMSCMD 19% 20% + 14% 11% pix 14% 14% 15% 7 9% 10% + 5% 5% 5% 7 0% Industry CGD Pe

  28. Slide 28: Gas Market 3

    DBILEXLTD Figure 19: Year-on-year Gas demand - All India Consolidated Sector- wise Demand — All India 1000 ME industry = iCGD Petchem Refinery Sm Fertiliser [Power —*~Total oss 900 + 847 _—__ 9 __ 800 700 600 500 MMSCMD 400 300 200 100 i=] co > Source: CRIS Analysis & Industry sources FY15 FY20 FY25

  29. Slide 29: Gas Market 4

    DBILEXLTD RR. SNS GAIA ;—w GAS MARKET 4 Figure 21: Year-on-year Gas demand — Gujarat (MMSCMD) Consolidated Sector- wise Demand — Gujarat Ms Industry cGD Petchem ==" Refinery =m Fertiliser 1) Power —* Total 4 132 140 127 120 4 100 5 80 7 MMsScCMD 60 4 40 5 20 4 a 3 g a &R a ra ia i i i i i i Source:

  30. Slide 30: Gas Market 5

    DBILEXLTD GAS MARKET 5 Figure 10: Consumption by State — FY2009 Andhra Pradesh, 9% Tamil Nadu, 3% N-E States , 2% States coverd by HVJ (MP, Rajasthan, UP, Delhi & Haryana), 36% Gujarat, 38% Maharashtra, 12% Source: MoPNG 30

  31. Slide 31: Cambay-76H Drilling and Completion

    CAMBAY‐76H DRILLING AND COMPLETION  Cambay‐76H drilled and completed 610m lateral, no borehole problems, ahead of curve  Drill, complete and stimulate 30 days  Opportunities to reduce flat time identified  SBM, LWD, rotary steerable system employed  Sliding sleeve completion Cambay-05 NW SE 110

  32. Slide 32: Fluid Distribution

    FLUID DISTRIBUTION Cambay‐76H  Cambay‐73 Well Test (Jan 2011)  Gas Condensate Ratio of 40 barrels/MMcfg assessed Oil Prone Gas Prone  Western area oil prone  Test data from vintage wells Testing operations Cambay-73 gas condensate well 32

  33. Slide 33: Personnel

    PERSONNEL Board & Executive Management MAX COZIJN (Non‐Executive Chairman) ‐ 31 years in listed resource companies. Director of Carbon Energy, Magma Metals, Malagasy Minerals and Energia Minerals Ltd. BRUCE McCARTHY (Managing Director) ‐ Ex‐Cairn India manager. 32 years oil & gas experience with Cai

Oilex — Investor Presentation (February 2012) on 6ix