Carnarvon Energy Limited · ASX:CVN
Carnarvon Energy — Carnarvon Petroleum — Investor Presentation (April 2018)
43 slides from Carnarvon Energy's investor presentation, Apr 9, 2018
Slide 1: Corporate presentation April 2018
For personal use only Corporate presentation April 2018
Slide 2: Disclaimer
Disclaimer For personal use only The Resource estimates outlined in this report have been prepared by the Company’s Chief Operating Officer, Mr Philip Huizenga, who is a full-time employee of the Company. Mr Huizenga has over 25 years’ experience in petroleum exploration and engineering. Mr Huizenga
Slide 3: Strategy
For personal use only Strategy Intense North West Shelf focus Leverage specialist inhouse skills Utilise comprehensive data base Target high value projects 3
Slide 4: Extensive project portfolio
Extensive project portfolio For personal use only Projects 9 projects covering 15 permits Pipeline of maturing projects 2 progressing to commercialisation 4
Slide 5: 2018 activities
2018 For personal use only Phoenix project NOW Phoenix South-3 appraisal well oil & gas May Dorado-1 exploration well oil & gas Buffalo project Well planning Field re-development oil Other projects Farm-out(s) pipeline of opportunity oil & gas 5
Slide 6: Phoenix project
For personal use only 6 Phoenix project
Slide 7: Project snapshot
Project snapshot For personal use only 2018 wells Phoenix South appraisal Phoenix South Dorado exploration 4 discoveries already Roc Successful flow test Dorado Economic resource at Roc Additional targets close by 7
Slide 8: 3D seismic image
3D seismic image – red line is top of Caley interval Phoenix Phoenix Roc-1 Roc-2 Dorado-1 For personal use only South-3 South-2 well well well well well (2018) (2018) Phoenix Sth Roc Dorado 8 Confirmed gas & oil (condensate)
Slide 9: Phoenix South-3 (PS-3)
Phoenix South-3 (PS-3) Phoenix Phoenix Roc-1 Roc-2 Dorado-1 For personal use only South-3 South-2 well well High confidence well well well (2018) PS-3 is 560m from PS-2 (2018) Funded With existing cash Near term April 2018 drilling Roc + Phoenix South Aggregate oil & gas 9 Confirmed gas & oil (conde
Slide 10: Dorado-1
Dorado-1 Phoenix Phoenix Roc-1 Roc-2 Dorado-1 For personal use only South-3 South-2 well well well Quality target well well (2018) Same interval / updip (2018) 15 km from Roc Upside in deeper sands Funded With existing cash Near term May 2018 drilling 10 Confirmed gas & oil (condensate)
Slide 11: Gas & oil volumes (mid case recoverable)
Gas & oil volumes (mid case recoverable) Phoenix Phoenix Roc-1 Roc-2 Dorado-1 For personal use only South-3 South-2 well well well well well (2018) (2018) Phoenix South (Caley) Roc Field (Caley) Dorado (Caley) 489 Bcf of gas 332 Bcf of gas 545 Bcf of gas 57 mmbbls of oil 20 mmbbls of oil 30 mmbbls o
Slide 12: Oil and gas market routes
For personal use only Oil Export from offshore facility Gas Domestic supply Diesel replacement in mining Port Hedland Export Karratha Iron ore gas plant mining Potential future 12 gas pipelines
Slide 13: Buffalo project
For personal use only 13 Buffalo project
Slide 14: New technology better images oil field potential
New technology better images oil field potential For personal use only Target - unproduced areas within the field Four wells produced 20 mmbbls between 1999 and 2004 14
Slide 15: Target - unproduced oil in the field
Target - unproduced oil in the field For personal use only W E Buffalo 5 Attic volume above Buffalo-5 perforations (namely unproduced oil) OOWC ~8.5 mmbo produced 15
Slide 16: Structural attics clear on new data
Structural attics clear on new data For personal use only W E Buffalo 5 Attic volume above Buffalo-5 perforations (namely unproduced oil) OOWC ~8.5 mmbbls produced 16
Slide 17: Compelling economics
Compelling economics For personal use only Oil volume 31 mmbbls recoverable (RISC audited 2C) Development plan low risk in replicating previous facilities Development cost US$150m¹ Operating costs US$80m to $100m p.a. (4 year life) ¹Based on independent studies commissioned by Carnarvon Petroleum 17
Slide 18: Buffalo oil field in Timor-Leste
Buffalo oil field in Timor-Leste For personal use only Treaty Signed 7 March 2018 Equivalent conditions Australian domestic law • Security of title and legal rights • Fiscal terms Going forward Production Sharing Contract - in progress Well & redevelopment - clear to progress 18
Slide 19: Other projects: Labyrinth project
Other projects For personal use only Labyrinth project Farm out commenced Feb 2018 19
Slide 20: Other projects: Condor project
Other projects For personal use only Condor project Farm out commencing mid 2018 20
Slide 21: Other projects: Outtrim project
Other projects For personal use only Outtrim project High graded by Swell-1 result 21
Slide 22: Wrap up
Wrap up For personal use only NOW Phoenix South-3 upside if it’s a stratigraphic structure May Dorado-1 upside if multiple stacked pay Buffalo development 31 mmbbl resource to reserves to production Farm-out alpha leverage to the oil sector 22 Refer to Carnarvon’s ASX announcement of 28 August 2017
Slide 23: Supplemental information
For personal use only Supplemental information
Slide 24: Supplemental information to the presentation
For personal use only Supplemental information to the presentation Content: 1. Project portfolio summary 2. Oil & gas volume summary 3. Buffalo project 4. Phoenix project 5. Labyrinth project 6. Outtrim project 7. Maracas project 8. Condor & Eagle projects 9. Board & management 24
Slide 25: Portfolio – permit locations and equities
Portfolio – permit locations and equities For personal use only 25
Slide 26: Project portfolio - summary
For personal use only Project portfolio - summary Project Permits Equity holders Status Buffalo WA-523-P CVN 100% Appraisal to oil field redevelopment Phoenix WA-435-P & WA-437-P CVN 20% & Quadrant Appraisal and exploration of discovered oil and Energy 80% gas Phoenix WA-436-P & WA-438-P CVN 30% & Q
Slide 27: Oil & gas volume summary (2C)
For personal use only Oil & gas volume summary (51 million barrels recoverable net 2C) Refer to Carnarvon’s ASX announcements of 14 November 2016, 28 March 2017 & 28 August 2017 for comprehensive details of 27 these volume estimates. These resources were calculated using a combination of probabilist
Slide 28: Oil & gas volume summary (Pmean)
For personal use only Oil & gas volume summary (2,480 million barrels recoverable net Pmean) Refer to Carnarvon’s ASX announcements of 14 November 2016, 28 March 2017, 8 May 2017, 13 June 2017 for comprehensive 28 details of these volume estimates. These resources were calculated using probabilistic
Slide 29: Oil & gas volume – SPE definitions
For personal use only Oil & gas volume – SPE definitions Carnarvon calculates reserves and resources according to the SPE/WPC/AAPG/SPEE Petroleum Resource Management System (“SPE-PRMS”) definition of petroleum resources. This was first published in 1997 by the SPE, and in an effort to standardise re
Slide 30: Oil & gas volume - summary
For personal use only Oil & gas volume - summary Buffalo project Buffalo contingent resources fall within the “Development Pending” category. Once Carnarvon finalises its redevelopment work the resources can be reclassified as reserves under the category “Justified for Development”. Phoenix project
Slide 31: Buffalo project - background
For personal use only Buffalo project - background The Buffalo field was discovered in October 1996, when BHP Petroleum tested the Buffalo-1 well. The well flowed at 12,000 bpd of light 53° API oil. The oil has a particularly low gas oil ratio of 110. The field was operated by BHP Petroleum and cont
Slide 32: Buffalo project – technology solution
For personal use only Buffalo project – technology solution Based on Carnarvon’s experience trialing the first use of FWI (Full Waveform Inversion) technology in Australia in the Phoenix project, Carnarvon was in a position to immediately foresee the potential for this technology in other areas; Buf
Slide 33: Phoenix project - background
For personal use only Phoenix project - background The Phoenix project (WA-435-P, WA-436-P, WA-437-P & WA-438-P) is located in the Bedout sub- basin approximately 150 kilometres offshore from Port Hedland in Western Australia. During the global financial crisis of 2008 and 2009 Carnarvon and its par
Slide 34: Phoenix project – Phoenix South
For personal use only Phoenix project – Phoenix South In late 2016 / early 2017 the Phoenix South-2 well intersected the top of the primary reservoir and discovered oil and gas, but did not fully evaluate the resource due to the level of pressure encountered. This was an encouraging result, and as s
Slide 35: Phoenix project - Dorado
For personal use only Phoenix project - Dorado The Dorado prospect is only some 15 kilometres south of the Roc discoveries with an interpreted multi sand reservoir covered by the same top shales that seal in the Roc oil and gas. Those shales are also interpreted as providing the side seal in a chann
Slide 36: Phoenix project – development concepts
For personal use only Phoenix project – development concepts The oil and gas discovered to date and to be targeted in 2018 very much suits a development that ties the oil and gas back to a central well head platform and offshore primary processing. Oil would be held in a Floating Production Storage
Slide 37: Labyrinth project - background
For personal use only Labyrinth project - background The Labyrinth project (WA-521-P) is located in the Rowley Sub-basin, offshore North West Shelf, north of Carnarvon’s Roc and Phoenix South hydrocarbon discoveries. The interpretation of newly reprocessed 2D seismic in the permit has revealed sever
Slide 38: Labyrinth project - volumes
For personal use only Labyrinth project - volumes Three source rocks are mature and generating today in WA-521-P, comprising the proven Lower Jurassic Murat siltstone, Lower Depuch carbonaceous shales and Upper Triassic marine shale of the Upper Keraudren formation. Sizable structures and prolific s
Slide 39: Outtrim project - Belgravia prospect
For personal use only Outtrim project - Belgravia prospect The Outtrim project (WA-155-P(1)) is located in the Exmouth basin and contains the significant Belgravia prospect in the Triassic interval. The prospect is similar in size and geology to the nearby Woodside operated Swell Triassic prospect.
Slide 40: Shareholder analysis at Dec 2017
For personal use only 1. ASX ticker CVN Shareholder analysis at 31 Dec 2017 2. Shares on issue 1,028 million 3. Share price (27/3/18) 13.5 cents 4. Market capitalization (27/3/18) $139 million 5. Cash on hand (31/12/17) $49 million 6. Substantial shareholders none Carnarvon’s 52 week share price Ins
Slide 41: Board of Directors
For personal use only Board of Directors Peter Leonhardt – Chairman An independent company director and adviser with extensive business, financial and corporate experience. Peter is a Chartered Accountant, former Senior Partner with PricewaterhouseCoopers and Managing Partner of Coopers & Lybrand in
Slide 42: Management team
For personal use only Management team Adrian Cook – Managing Director & Chief Executive Officer Philip Huizenga – Chief Operating Officer Dr Stephen Molyneux – Exploration Manager Dr Jeff Goodall – Chief Geologist Andrew Padman – Chief Geophysicist Thomson Naude – Chief Financial Officer and Company
Slide 43: Think Different, Act Different
For personal use only Think Different Act Different 43
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