Slide 1: Nilde Field Redevelopment Update (ASX Release)
ASX Release 29 March 2017 Nilde Field Redevelopment Update Updated economic assessment of the Nilde Redevelopment Project based on recently updated Contingent Resources and the previously announced Development Concept utilising a leased self-installing platform facility. ADX Energy Ltd (ASX:ADX) is
Slide 2: ASX Release continued: economics and next steps
Material Post tax NPV10 of approximately US$200 - 650 million (across the predicted resource range of 22 million barrels 1C to 50 million barrels 3C); Project pay back across all three resource cases of less than one year, and Break even oil price for the 1C resource case less than US$30 per b
Slide 3: Qualified Resource Evaluator Statement
Qualified Resource Evaluator Statement The information in this report and the contingent resources, related supporting documentation and data have been reviewed by Mr. Paul Fink who is a petroleum consultant to ADX and serves on the board of ADX as an Executive Director. He holds an MSc from the Min
Slide 4: Nilde Oil Redevelopment Update
NILDE OIL REDEVELOPMENT UPDATE OFFSHORE SICILY CHANEL ADX 100% EQUITY INTEREST 29 March 2017 www.adx-energy.com 1
Slide 5: 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 6: Nilde Area Strategic Summary
Nilde Area Strategic Summary Mediterranean Acreage Position 5000 km contiguous acreage position with an oil redevelopment project (Nilde), gas appraisal project (Dougga), follow up oil and gas discoveries and material 3D defined exploration prospect portfolio Nilde Area Potential Nilde Oil R
Slide 7: Nilde Redevelopment Summary
Nilde Redevelopment Summary Background – Acquired as exploration permit, remaining potential of Nilde identified by ADX in late 2015, independently audited in February 2016 and project feasibility in 2016 / 2017 Resource Attributes – Substantial remaining resource (2C of approximately 33 MMBBL)
Slide 8: Nilde Redevelopment - Current Status
Nilde Redevelopment - Current Status Remaining resource potential and future oil production defined Gross Contingent Oil Resource Volumes (MMstb) (1) 1C² Estimate 2C² Estimate 3C² Estimate Nilde & Nilde Bis 21.7 32.8 49.8 Matured preferred development concept Notes regarding Oil Resource Volumes
Slide 9: Nilde Oil Project History
Nilde Oil Project History Nilde Field Discovered 1873 by AGIP(now ENI)/Shell – 20.5million barrels of 39oAPI oil produced – Field averaged 9,400bopd for 5+years until water breakthrough at main well and rapid decline – Field abandoned 1989 (prematurely) • Previous development concept not capable of
Slide 10: Permit Evaluation Program
Permit Evaluation Program Permit Evaluation Kickoff (2015-1Q2016) • 2015 Licence award • Initial permit assessment • Nilde • Satellite discoveries (Norma, Naila) • Exploration • Probabilistic volumetrics • Independent Certification – Senergy Two-pronged attack to accelerate work program Detailed Sub
Slide 11: Key Subsurface Attributes
Key Subsurface Attributes • Nilde Formation : Fractured shallow SW NE water carbonates – Good matrix properties; 8-19% matrix porosity contains bulk of oil in place – Excellent productivity; Extensive, connected fracture system at top reservoir observed in cores from multiple wells OWC ~ 1610 m ss –
Slide 12: Dynamic Simulation Findings (1)
Dynamic Simulation Findings (1) • High confidence in the model – Honours all available data – Excellent history match to 20.5 mmbbl production • Base Case OIIP range 176-237 mmbbl barrels with upside to 300mmbbl – 20.5 million barrels produced with low 3D Reservoir Simulation Model historical recove
Slide 13: Dynamic Simulation Findings (2)
Dynamic Simulation Findings (2) • Base Case model will be confirmed with appraisal – Present-day oil column – “Open” Faults; no compartmentalisation – Fracture System/Productivity in lower reservoir layers and Nilde-5 fault block • Ideal for efficient development – Minimise CAPEX : Horizontal wells
Slide 14: Contingent Resource Definition
Contingent Resource Definition • 2C Contingent Resource (most likely) of 33 million barrels Nilde/Nilde Bis Contingent Resources1 1C2 2C2 3C2 2017 – Detailed Reservoir Modelling 21.7 32.8 49.8 2016 – Probabilistic Volumetrics (Senergy)2,3 18.0 28.4 38.8 Variance 3.7 4.4 11.0 Note 1&2 below right; No
Slide 15: Development Concept Selection (1)
Development Concept Selection (1) MCP & RPSO Facilities Option MCP – Leased Production Platform Calm Oceans Pte Ltd (COPL) COPL has developed and constructed a self- installing Mono Column Platform (MCP) The MCP is capable of supporting a drilling rig, production processing equipment water and g
Slide 16: Development Concept Selection (2)
Development Concept Selection (2) COPL and ADX Collaboration RPSO - Gravity Based Storage ADX and COPL entered into an MOU in December & Offloading Solution 2016 to jointly progress the redevelopment of the Nilde field COPL has offered to supply the MCP and RPSO to ADX on a lease dry boat charte
Slide 17: Redevelopment Economics (1)
Nilde Redevelopment Economics (1) Basis for Indicative Economics Economic Summary ADX has progressed project definition work on Resource Classification 1C 2C 3C (90% chance to (50% chance to (10% chance to the (100% owned) potential redevelopment of exceed) exceed) exceed) the Nilde field. Key sourc
Slide 18: Redevelopment Economics (2)
Nilde Redevelopment Economics (2) Comments on Economic Results Post Tax NPV 10 vs's Oil Price $1,200 NPV10 Range at current oil price between $1,000 US$ 200 – 650 Million Value US$ millions $800 All resources cases demonstrate high Range profitability, rapid paybacks and low oil price $600 profi
Slide 19: Redevelopment Economics (3)
Nilde Redevelopment Economics (3) Project Production Profile and Cash flows - Base Resource Case (2 C Resources), and US$ 40 per barrel oil price 2C Resource "Production Profile" Oil Prod. Cumulative Yearly Oil Production 35000 8000 30000 7000 [mbbls] 6000 [mbbls] 25000 5000 20000 4000 15000 3000 10
Slide 20: Redevelopment Economics (4)
Nilde Redevelopment Economics (4) Project Lease and Opex Assumptions - Assuming leased MCP and RPSO Development Option Facilities Lease Rates Field Operating Costs Facility Operating Minimum Annualised Comments Daily Rate Annual Lease Rate Lease Term Lease Rate Cost Description Number (US $ /day) (U
Slide 21: Redevelopment Economics (5)
Nilde Redevelopment Economics (5) Project Appraisal and Development Drilling Assumptions Assuming Appraisal Drilling from Mobile Drilling Unit & MCP Development Drilling Option Appraisal, Development Drilling and Completion Costs Summary Operational Summary US$ 000 Comments Appraisal Development Wel
Slide 22: Redevelopment Project Status
Nilde Redevelopment Project Status Extensive technical work accomplished to deliver credible resources estimates (honouring all available data) and securing an highly desirable development option with an aligned and capable partner Project offers material cash flow Average US$ 150 million per
Slide 23: Way Forward
Nilde Way Forward Funding and Farmout Taken longer than expected to get all required data & information for credible value proposition Resource, project feasibility and economics results to date are highly compelling Asset already generating significant interest in UK Ready to commence for
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 21