Adx Energy Ltd · ASX:ADX
Adx Energy — Corporate Update (December 2017)
24 slides from Adx Energy's corporate update, Dec 20, 2017
Slide 1: Letter from Chairman – Dougga Appraisal Project Update
ASX Release 20 December 2017 Letter from Chairman – Dougga Appraisal Project Update Dear Shareholder, I am pleased to report to you our progress with ADX Dougga Gas Condensate Project “Dougga” in the Kerkouane Licence, offshore Tunisia which is now ready for appraisal drilling in the later half of 2
Slide 2: Factors creating a compelling investment proposition for Dougga
Now a combination of factors have come together to create a very compelling investment proposition for Dougga. They can be summarised as follows; • After a year of lobbying, the Tunisian Authorities have agreed to vary the license work program from further 3D seismic and an exploration well to the d
Slide 3: Dougga Gas & Liquids Project Summary (December 2017)
The key project parameters can be summarised as follows; Dougga Gas & Liquids Project Summary (December 2017) CONTINGENT RESOURCES "note 1" 1C 2C 3C Sales Gas (BCF) 368 564 851 Liquids (MMBBLS) 54 83 125 Total Oil Equivalent (MMBOE) 108 165 250 DAILY PRODUCTION RATE "note 2" 1C 2C 3C Sales Gas (MMSC
Slide 4: Development cost per barrel and funding interest
gas 30 months from project sanction. This translates to an attractive development cost per barrel of approximately US$ 5.50 per barrel based on the 2C resources case. Of particular consequence for the funding of Dougga is the unsolicited interest received for the project which has led us to fast-tra
Slide 5: Dougga Gas Appraisal and Development Project Update
DOUGGA GAS APPRAISAL AND DEVELOPMENT PROJECT UPDATE KERKOUANE LICENSE OFFSHORE TUNISIA 20 DECEMBER 2017
Slide 6: Disclaimer
DISCLAIMER This document has been prepared by ADX Energy Ltd for the purpose of providing an activity update to interested analysts/investors and shareholders. Any statements, opinions, projections, forecasts or other material contained in this document do not constitute any commitments, representat
Slide 7: Appraisal & Development Portfolio
APPRAISAL & DEVELOPMENT PORTFOLIO Parta Gas ReDrill Project 33BCF 2C & Prospective Resource Close to Calacea Gas Plant Nilde Oil Field Redevelopment 33 MMBBLS (2C) Contingent Resource Dougga Gas Condensate Appraisal & Development 165 MMBOE 2C Contingent Resource
Slide 8: Dougga Asset Strategy
DOUGGA ASSET STRATEGY Convert Large Resource Base to Reserves Convert Large 100% Working Interest in large, existing Contingent Resources base Resource Base to of 165MMBOE (564BCF Sales Gas and 83MMBBL LPGs and Condensate) Reserves Negotiated appraisal focussed work program with partner & NOC
Slide 9: Dougga – Project Overview
DOUGGA – PROJECT OVERVIEW 100% Operated Working Interest: Large 70km2, 3D-defined gas-condensate discovery 165MMBOE 2C Resource with potential for high liquids yields and long- lived revenue streams; 56MMCFD sales gas and 8500BPD liquids (C3/4 +condensate). High productivity, dual-porosity sys
Slide 10: Kerkouane PSC Permit History
KERKOUANE PSC PERMIT HISTORY ADX has been associated with the Kerkouane PSC since 2008 At the time, 2 sub-commercial gas condensate discoveries had been made in block, namely Dougga and Kerkouane In 2010, the JV acquired a Geostreamer 3D seismic survey in Italy and Tunisia and drilled the Lamb
Slide 11: New Integrated Subsurface Analysis
NEW INTEGRATED SUBSURFACE ANALYSIS Summary of recent work: 3D seismic identifying updip potential as well as highlighting reservoir sweet-spots New petrophysics and regional analogues support important 3 layer subdivision of Abiod limestone reservoir An upper, better quality layer in Petrophys
Slide 12: 3D Seismic Shows Updip Potential
3D SEISMIC SHOWS UPDIP POTENTIAL - AT ABIOD RESERVOIR LEVEL A Dougga-1 B Additional reservoir B section updip Dougga-1 A Updip potential confirmed in seismic time and depth Some internal geometries can be seen, although Abiod thickness is at the resolution of seismic 8
Slide 13: Abiod Reservoir Geometries
ABIOD RESERVOIR GEOMETRIES Dougga-1 Isochron map of Abiod – Near Sidi Khalif proj. Canyon A A’ Canyon? A A’ Abiod Carbonate Reservoir Potential: Undrilled Reservoir Upside Clear indications of strata truncation on seismic Dougga-1 did not intersect the complete (Upper) Abiod section. The young
Slide 14: Fracture Network Modelling Results
FRACTURE NETWORK MODELLING RESULTS 2 possible models derived from 3D seismic : 1. Transtensional, Max Hz Stress N150° 2. Transpressional, MaxHz Stress N60° Closer to regional observation Petrel Model driven, determined from seismic Tectonic strike slip environment fault orientation Diffuse F
Slide 15: Reservoir Attributes - Dual Porosity System
RESERVOIR ATTRIBUTES - DUAL POROSITY SYSTEM Micro-scale Macro-scale Vugs / Karsts? (Upper Abiod Only) Fractures Matrix (U,M,L Abiod) (Abiod, Fahdene & Sidi Kilani) Matrix Porosity Fracture Porosity Good matrix reservoir quality in Abiod Abiod, Fahdene & Sidi Kilani petrography, well Formation; u
Slide 16: Updated Contingent Resource Estimates
UPDATED CONTINGENT RESOURCE ESTIMATES DOUGGA CONTINGENT RESOURCES1 (2017) 1C 2C 3C Total Oil Equivalent (MMBOE) 108 165 250 Sales Gas (BCF) 368 564 851 Liquids: LPG (MMBBLS) 29 44 66 Liquids: Condensate (MMBBLS) 25 39 59 2012 Contingent Resource Estimate2 (MMBOE) 88 173 268 Difference +20 -8 -14 Whi
Slide 17: Dougga Sud Appraisal Well Objectives
DOUGGA SUD APPRAISAL WELL OBJECTIVES Appraisal is required to facilitate a development decision, confirm development well numbers/location and detailed facilities design Appraisal Data acquisition Base Case Expectation Objectives program to include… Well • Stabilised flow 15-25MMCFD productivity • D
Slide 18: Dougga Sud Well Cost Estimate
DOUGGA SUD WELL COST ESTIMATE Dougga Sud – Time Depth Curve Dougga Well Days US$ (Drill, Test and Suspend) million Drilling Days 32 Mob / Demob $0 Well Cost without $16.7 Contingency Drilling Cost $17.7 Testing Days 16 (Preparation + Testing) Testing Cost without $6.3 Contingency Testing Cost $6.7 T
Slide 19: Dougga Project – Development Potential
DOUGGA PROJECT – DEVELOPMENT POTENTIAL Production forecasting from subsurface modelling indicates: 1. Long-lived revenue streams from both gas and liquids 2. 100MMCFPD raw gas is expected to deliver 56MMCFDPD sales gas and 8500 BBLPD liquids (C3/C4 and condensate) Dougga Development Concept: • Techn
Slide 20: Dougga Project – Development Concept
DOUGGA PROJECT – DEVELOPMENT CONCEPT The Development Concept has significantly matured during 2017 resulting in reduced CAPEX estimate of $905 million and <30 month FID to first gas schedule Technip FMC Screening and Selection Study recommended a 45km Subsea tie-back to Beach development concept
Slide 21: Onshore Gas Processing Facilities
ONSHORE GAS PROCESSING FACILITIES The Tunisian Sales Pipeline Gas Specification requires the following gas plant configuration: • Slug catcher and primary separation & MEG regen • Acid Gas (CO2 & H2S) Removal Unit (AGRU)– utilising MDEA solvent technology • Dehydration utilising molecular sieve te
Slide 22: Dougga Project – Development Cost & Schedule
DOUGGA PROJECT – DEVELOPMENT COST & SCHEDULE In Q4-2107 ADX approached a number of Tier 1 & 2 contractors/vendors through an “Expressions of Interest” process for three separate Scopes of Work: • On-shore Gas Plant & Onshore pipeline • Offshore Pipelines & Umbilical Supply & Installation • Subsea
Slide 23: Dougga Schedule – First Gas Possible Q2/3-2021
DOUGGA SCHEDULE – FIRST GAS POSSIBLE Q2/3-2021 Project Sanction Ready to Install XTs FIRST GAS Start Sun 30/05/21 Sun 18/08/19 Wed 14/10/20 Mon 01/01/18 Half 1, 2018 Half 2, 2018 Half 1, 2019 Half 2, 2019 Half 1, 2020 Half 2, 2020 Half 1, 2021 Half 2, 2021 Farminee / Appraisal Well Financing mechani
Slide 24: Contact details
Ian Tchacos Executive Chairman Paul Fink Chief Executive Head Office: Level 2, Suite 14 210 Bagot Road, Subiaco, WA, 6008 Tel: 61 8 9381 4266 Fax: 61 8 9381 4766 Website www.adxenergy.com.au Email admin@adxenergy.com.au ASX Code ADX 20