Karoon Energy Ltd · ASX:KAR
Karoon Energy — Shareholder Meeting (November 2019)
36 slides from Karoon Energy's shareholder meeting presentation, Nov 29, 2019
Slide 1: Annual General Meeting
FPSO Cidade de Itajaí Annual General Meeting 29 November 2019
Slide 2: Resources summary
Resources summary AGR assessed Reserves and Contingent Resources estimates for the Baúna assets are the probabilistic sum of individual well reserves and not the arithmetic sum of the individual well reserves. These have been produced on the basis of reserves contained in the BM-S-40 concession and
Slide 3: Section 1 – Corporate Review
Section 1 – Corporate Review Robert Hosking, Managing Director 3
Slide 4: Corporate overview
Corporate overview Karoon has an exciting portfolio focused on South America and now diversified between production, development and exploration • The acquisition of Baúna gives Karoon a strong foundation of cashflow generated from ~19,000bopd with plans to grow production >50% over the next 2 years
Slide 5: Application of corporate strategy in the short term
Application of corporate strategy in the short term The acquisition of Baúna delivers on pillar one in Karoon’s three pillar corporate strategy 1 Acquire a high quality cash generating production asset 2 Realise value by operating efficiently, monetising tie-in opportunities and developing existing
Slide 6: Why are we so focused on South America?
Why are we so focused on South America? More than 10 years of knowledge and working experience in South America places Karoon at an advantage when navigating regulatory regimes and searching for quality opportunities in the region Karoon has built a business in South America from the ground up for o
Slide 7: Baúna acquisition complements the existing portfolio
Baúna acquisition complements the existing portfolio Baúna cash flows to underpin Karoon’s growth via optimization of capital allocation to highest value assets • Baúna includes a large proven and probable reserves base and opportunity to draw additional value from the development of existing contin
Slide 8: Baúna transaction detail and progress
Baúna transaction detail and progress Expected financial close of the Baúna transaction is during first quarter 2020, with an effective transaction date of 1 January 2019 Transaction • Karoon acquires 100% interest in Concession BM- S-40 from Petrobras for US$665 million • A purchase price adjustmen
Slide 9: Baúna production and peer comparison
Baúna production and peer comparison Long-term production profile Karoon ranks fourth against ASX producing oil companies 2018 2P and 2C reserves 2018 Production rate per annum 9
Slide 10: Peru drilling, on target for spudding in January 2020
Peru drilling, on target for spudding in January 2020 Stena Forth – modern, powerful drillship • Drillship mobilised from Ghana on 22 November 2019 and on target for Q1 2020 spud • Drilling time expected to be 4-6 weeks • Marina is a 256 mmbbl gross mean prospective oil prospect with multibillion-ba
Slide 11: HSSE: our People and those around us
HSSE: our People and those around us HSSE and Stakeholder engagement - commitment to world’s best practice • Karoon’s objective is to undertake safe and secure operations, which protect employees, local communities, the environment and material assets • Karoon is committed to the safety and security
Slide 12: Section 2 – Development and Operations Review
Section 2 – Development and Operations Review José Formigli, Production and Development Project Advisor 12
Slide 13: Brazil: Baúna asset overview
Brazil: Baúna asset overview Baúna has favourable reservoir characteristics and identified production growth opportunities Asset summary BM-S-40 Concession • Concession BM-S-40 is in the southern Santos Basin, 50-60km from Karoon’s Neon and Goiá discoveries and 50km from Karoon’s Clorita exploration
Slide 14: Key people in Brazilian operations
Key people in Brazilian operations Production and Development Steering Committees include two former senior executives from Petrobras José Coutinho Barbosa (Karoon Board Member) José Formigli (Project Advisor) Petrobras Executive Vice President and CEO of Braspetro from Petrobras E&P Director from 2
Slide 15: Key people in Brazilian operations
Key people in Brazilian operations Karoon Brazil has hired personnel with extensive experience in Brazilian production operations • Karoon is close to having filled all key roles for Ricardo Abi-Ramia (Asset Manager) Silvia Latorre (Operations Manager) the Brazilian Operations Team and Baúna takeove
Slide 16: Baúna operations transfer
Baúna operations transfer Karoon is well prepared to take over field operations • Karoon is well advanced in preparing all necessary resources to successfully operate the Baúna field FPSO contract transfer (negotiations ongoing with Teekay/Ocyan) Support vessels & helicopters (selected and Karoo
Slide 17: Baúna revitalisation program
Baúna revitalisation program Karoon is performing a complete review of the asset to identify all production enhancement opportunities Current Operations Plan • Karoon intends to replace up to three failed Electrical 2019 2020 2021 Submersible Pumps (ESPs) and perform additional well interventions to
Slide 18: Contingent resource opportunities
Contingent resource opportunities Short term, low cost production upgrades Depth Structure Reservoir Depth Mapping High SPS-57 Patola: Discovered, undeveloped oil • Discovered and drilled in 2011 by SPS-91. Seismic amplitude response similar to Baúna and Piracaba accumulations Low • Similar fluid an
Slide 19: Neon: Progressing toward FID
Neon: Progressing toward FID Value add with Baúna operational synergies Key Development Milestones • Karoon is evaluating options to drill Neon control well during the Baúna work program in 2021, taking advantage of the rig synergies / rig slots • Preliminary well cost estimated at US$30 million • D
Slide 20: Brazil: Santos Basin, Neon & Goiá fields
Brazil: Santos Basin, Neon & Goiá fields Progressing field development planning and nearfield exploration target evaluations • Risk sharing and funding flexibility with possible deferred capex payment, equipment financing • Aim to achieve a cost effective solution with expected opex of approx. $18-$
Slide 21: Brazil: Prolific proven petroleum systems – value potential
Brazil: Prolific proven petroleum systems – value potential Karoon’s portfolio includes assets in some of the world’s most prolific basins – scope for growth • Karoon has a decade of Experience in the southern Santos basin • Surrounding acreage expected to be offered in upcoming ANP permanent Offer
Slide 22: Pre-salt exploration
Pre-salt exploration1 1. ANP Presentation “The Oil and Gas Industry in Brazil, R, D & I Perspective”, 13 November 2019 22
Slide 23: ANP Bidding Rounds 2019
ANP Bidding Rounds 20191 2019 Year to Date 1. ANP Presentation “The Oil and Gas Industry in Brazil, R, D & I Perspective”, 13 November 2019 23
Slide 24: Brazilian Proven Reserves
Brazilian Proven Reserves1 1. ANP Presentation “The Oil and Gas Industry in Brazil, R, D & I Perspective”, 13 November 2019 24
Slide 25: Expected impact of 2017-2019 Bidding Rounds
Expected impact of 2017-2019 Bidding Rounds1 1. ANP Presentation “The Oil and Gas Industry in Brazil, R, D & I Perspective”, 13 November 2019 25
Slide 26: Section 3 – Technical Review
Section 3 – Technical Review Mark Smith, Exploration Director 26
Slide 27: Brazil: Santos Basin, Baúna geological summary
Brazil: Santos Basin, Baúna geological summary Excellent subsurface characteristics Baúna Well Log Piracaba Well Log Depth Structure Vcl Poro Vcl Reservoir Depth Mapping Poro High 10m Low Piracaba Baúna Patola • Work undertaken by Karoon and independently assessed by AGR supports Karoon’s interpreta
Slide 28: Brazil: Santos Basin, Neon and Goiá fields
Brazil: Santos Basin, Neon and Goiá fields Subsurface summary - high quality 3D seismic Neon Neon Neon PSDM RTM- Fullstack Amplitude map at Top PalB • Water depth: 300 m • Reservoir depth: 1700 m Contingent Resource (Statistical Aggregation), Oil (mmbbls) • Paleocene: 70 m net pay with 39°API light
Slide 29: Brazil: Santos Basin, S-M-1537 Clorita prospect
Brazil: Santos Basin, S-M-1537 Clorita prospect Leveraging a decade of geological knowledge and operational experience in Bid Round 14 • The 171 sq. km. block is located in the Southern Santos Basin, a known oil and gas producing region in a water depth of less than 400m • Targeting good quality Oli
Slide 30: Peru: Tumbes Basin, exploration
Peru: Tumbes Basin, exploration The undiscovered potential of offshore NW Peru Wrench basin model History • The presence of petroleum in coastal northwest Peru has been Oblique known for centuries subducting of Nazca oceanic • Spanish sailors used oil seeps on the Peru Bank as a navigation plate (40
Slide 31: Peru: Tumbes Basin, drilling of the Marina-1 well during 2020
Peru: Tumbes Basin, drilling of the Marina-1 well during 2020 This frontier well has the potential to be a play opener for the offshore Peruvian E&P industry • Karoon 40% (Operator), Tullow 35%1, Pitkin 25%2 • Tullow (joint-venture partner) has an established track record of Marina-1 successful expl
Slide 32: Peru: Tumbes Basin, Block Z-38 Marina Prospect
Peru: Tumbes Basin, Block Z-38 Marina Prospect Large Marina Prospect with nearby follow-up SW NE Anchoveta Prospect Marina Prospect Merluza Prospect • The Marina exploration prospect is a large fault bounded • There are no wells drilled in the permit structure in the central Tumbes Basin with prospe
Slide 33: Peru: Tumbes Basin, Block Z-38 Marina Prospect
Peru: Tumbes Basin, Block Z-38 Marina Prospect Advanced geophysical studies have identified targets • Detailed mapping and seismic pore-fill attribute extraction support the presence of trapped hydrocarbons • Reservoirs are stacked, ponded turbidite sands • Reservoir pore-fill attribute distribution
Slide 34: Australia: Carnarvon Basin, WA-482-P
Australia: Carnarvon Basin, WA-482-P The right address - Australia’s newest oil province • Permit extended with G&G work program only • Karoon 50%, Santos 50% (Operator) • Western WA-482-P has the same play type as Io/Jansz • The right address - nearby oil discoveries in Dorado, Phoenix South, Roc,
Slide 35: A bright and prosperous future
A bright and prosperous future Karoon is now looking to forward to a fully funded and very exciting near-term operational phase with long term benefits for Shareholders. This will comprise production, development and exploration activities, all with great upside potential. This operational phase sta
Slide 36: Karoon Energy
Ki Karoon Energy