Zephyr Energy Plc · LSE:ZPHR
Zephyr Energy — Rose Petroleum — Investor Presentation (September 2017)
21 slides from Zephyr Energy's investor presentation, September 2017
Slide 1: Rose Petroleum plc - Paradox Basin 3D Seismic Presentation
Rose Petroleum plc (AIM: ROSE) OIL & GAS EXPLORATION September 2017 Paradox Basin 3D Seismic Presentation www.rosepetroleum.com www.rosepetroleum.com
Slide 2: Disclaimer
Disclaimer The information contained in this presentation (the "Presentation") has been prepared by and is the sole responsibility of the directors of Rose Petroleum PLC (the "Company"). The Presentation and any further confidential information made available to any recipient, either verbally or in
Slide 3: Executive Summary
Executive Summary • Earning 75% Working Interest (“WI”) in over 92,000 gross acres in one of the most prolific Unconventional Resource Oil & Gas plays in the U.S.A. • US$5.5m (including one well) carry for Rockies Standard Oil Company LLC (“RSOC”) retaining 25% WI • Fully funded and proceeding with
Slide 4: Highlights
Highlights Low risk • Proven hydrocarbon play surrounded by highly productive basins • Extensive existing infrastructure across the region • Cane Creek is a proven productive interval with high COS (“chance of success”) • 3D survey de-risks play significantly and will highlight drilling locations •
Slide 5: Board of Directors
Board of Directors Non-Exec Chairman – Phillip Jeffcock CEO – Matthew Idiens o Founder and Managing Partner of Cew Capital LLP o Co-founder of Rose / VANE o Previously Phillip worked at Barclays Capital and global head of o +20 years experience in the natural resources sector commercial real estate
Slide 6: Ops Team Backgrounds
Ops Team Backgrounds Ty Watson - President of Rose O&G David List - Consulting Geophysicist • Geophysicist with over 32 years of experience with MS in Geophysical Engineering from • Operations engineer with over 32 years of experience, BS in Colorado School of Mines Petroleum Engineering from Mariet
Slide 7: Paradox Basin, Utah, USA
Paradox Basin, Utah, USA • The Paradox Basin is a major emerging unconventional resource play in which Fidelity Exploration and Production Co. (“Fidelity”), a former subsidiary of MDU Resources Group (NYSE: MDU), was the lead operator in the development of the Cane Creek Field and adjoining holdings
Slide 8: Paradox Basin - Surrounded by Highly Productive Basins
Paradox Basin - Surrounded by Highly Productive Basins Rose’s acreage www.rosepetroleum.com 8
Slide 9: Existing Infrastructure
Existing Infrastructure Regional Oil Services Hub • Grand Junction (1.5 hours drive along Interstate 70) Oil Gathering: Road & Rail • 100% volumes trucked to refinery – Western’s Gallup Refinery • Four Corners area in New Mexico • Rail spur potential close to Kirkwood’s Dead Horse Point operations G
Slide 10: Relevant History & Current Operations in Paradox Basin, Utah
Relevant History & Current Operations in Paradox Basin, Utah Historical Operations • 1962: Southern Natural drilled Long Canyon 1-9 (First Cane Creek Clastic Producer, cum 1.2MMBO) • 1990-1993: Columbia Gas drilled 6 wells (4 produced from the Cane Creek Clastic) • 1993-2004: 4 wells drilled (2 Cane
Slide 11: Paradox Formation: Productive Fairway
Paradox Formation: Productive Fairway • The Paradox Cane Creek Clastic productive fairway is orientated in a northwest-southwest direction NE • The productive fairway is characterized by thickness greater than 2,000 feet NW Paradox • In this position, water depths were deep Isopach Rose 3D feet Seis
Slide 12: Paradox Structural Cross Section
Paradox Structural Cross Section SW Gunnison Valley 3D NE Salt Valley Mancos Fm. Dakota Ss. Navajo Ss. Cutler Fm. Honaker Trail Fm. depositional thinning Cane Creek Paradox Fm. loading Clastic salt salt 2 pillow wall 1 3 +14,000’ 4 Tilting (basin formation) 1 syndepositional faults salt weld reactiv
Slide 13: • Clastic layers are laterally • Clastic 21 (Cane Creek Clastic) has • The
• Clastic layers are laterally continuous across the productive fairway • Clastic 21 (Cane Creek Clastic) has been the most prolific producer historically • The Cane Creek Clastic is easily correlated from Cane Creek Unit into Gunnison Valley Unit • Clastics 18 & 19 have also demonstrated economic p
Slide 14: Paradox Basin Fracture Networks
Paradox Basin Fracture Networks • The creation of fractures after oil generation has Well: CCU 26-3 started is critical to the preservation of open Open fractures are often partially healed with halite or calcite fractures • Fractures created prior to oil generation are typically cemented with salt
Slide 15: State of The Art 3D Seismic Shoot
State of The Art 3D Seismic Shoot • High fold (>35 at 10,000 offset) wide-azimuth design. Fold: 0-10,000’ Offsets Better parameters than previous surveys • Tie seismic interpretation to log data for accurate identification of clastics • Identify Geo-hazards to avoid during well planning • Predict ar
Slide 16: 3D Seismic Summary
3D Seismic Summary 3D Seismic is critical to the success of the play as Fidelity demonstrated. Seismic will be used to: • Target areas that are likely to have open natural fractures • Avoid structurally complex and non-fractured areas Gunnison Valley 3D • Plan and steer horizontal wells in Paradox c
Slide 17: Additional Upside of Leadville Limestone
Additional Upside of Leadville Limestone Rose acreage location • In addition to the Ryder Scott resource numbers • Conventional play in formation directly below the Paradox Clastics • Produces on closed structures easily identifiable of 3D seismic • Sourced from the Paradox Formation • Horizontal dr
Slide 18: Ryder Scott's Paradox Resources
Ryder Scott’s Paradox Resources Ryder Scott’s Original Hydrocarbon in Place Volumes in the Paradox Formation Leasehold Interests of Rose as of 30th April, 2014: OOIP - MMBO OGIP – BCF P90 P50 P10 MEAN P90 P50 P10 MEAN 15,876 19,139 23,008 19,320 26,005 32,999 41,300 33,395 Ryder Scott’s Prospective
Slide 19: Ryder Scott Grand Main (incl. GVU) Estimated Resources
Ryder Scott Grand Main (incl. GVU) Estimated Resources – 15 Formations with Paradox GVU 40 3D seismic shoot outline 19
Slide 20: Key Event Work Programme
Key Event Work Programme Rose Petroleum (US) LLC GVU SEISMIC & DRILLING PROJECTED ACTIVITY TIMELINE - August 2017 to September 2018 Paradox Basin - Southern Gunnison Valley Unit Aug 2017 Sep 2017 Oct 2017 Nov 2017 Dec 2017 Jan 2018 Feb 2018 Mar 2018 Apr 2018 May 2018 Jun 2018 Jul 2018 Aug 2018 Sep 2
Slide 21: Contact Us
Contact Us Rose Petroleum plc Matthew Idiens First Floor Newmarket House Market Street Newbury Berkshire RG14 5DP United Kingdom +44 (0) 207 225 4595 www.rosepetroleum.com 21
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