Karoon Energy Ltd · ASX:KAR
Karoon Energy — Investor Presentation (September 2015)
28 slides from Karoon Energy's investor presentation, Sep 17, 2015
Slide 1: Santos Basin Brazil: Resource Volumes and Development Concepts
Santos Basin Brazil: Resource Volumes and Development Concepts 17 September 2015 © Rodrigo Hill / Amago Images ”Olinda Star” Semi Submersible Drilling Rig, Echidna-1 Production Test
Slide 2: Disclaimers
Disclaimers This presentation has been prepared by Karoon Gas Australia Ltd for professional and sophisticated investors. The information contained in this presentation is for information purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial prod
Slide 3: Corporate Overview: Managing Director, Robert Hosking
Corporate Overview: Managing Director, Robert Hosking 3
Slide 4: Corporate Overview
Corporate Overview Karoon seeks to create shareholder value through an exploration led growth strategy - Karoon is a global oil and gas independent - Current market cap A$460 million (17/9/15, A$1.87ps) - A$553 million cash at bank as at 30/6/15, No debt - 246.8 million ordinary shares on issue, 6.2
Slide 5: The Development Pathway
The Development Pathway Upon appraisal success in the Santos Basin, Karoon is looking to transition into an oil producer - The Kangaroo and Echidna oil discoveries have a combined gross contingent 2C resource of 129mmbls (84mmbbls net to Karoon) - Further appraisal drilling will better define the co
Slide 6: Resource Update: Exploration Manager, Antonio Tisi
Resource Update: Exploration Manager, Antonio Tisi 6
Slide 7: Santos Basin Brazil: The Setting
Santos Basin Brazil: The Setting 7
Slide 8: Field Evaluation Progress
Field Evaluation Progress Geoscience Evaluation: Engineering and Economic Evaluation: - Detailed mapping with 2 millisecond 3D seismic - Pre-FEED studies identifying and assessing a data set, geological correlation and facies range of development options interpretation - Evaluate early production sy
Slide 9: Contingent Resource Volumes
Contingent Resource Volumes* Contingent Resource Volumes Gross Interest Type 1C 2C 3C Echidna 100% Oil (mmbbls) 25 75 152 Kangaroo 100% Oil (mmbbls) 20 54 100 Total** 45 129 252 Net Interest Type 1C 2C 3C Echidna 65% Oil (mmbbls) 16 49 99 Kangaroo 65% Oil (mmbbls) 13 35 65 TOTAL NET TO KAROON** 65%
Slide 10: Mapping and Seismic Attributes
Mapping and Seismic Attributes Puggle Lead Echidna Emu Updip Prospect AVO calibrated at Paleocene level shows; - Excellent match of AVO anomaly results with mapping and pressure data defining the Platypus Paleocene distribution of oil at Echidna and Kangaroo Lead - Additional potential identified at
Slide 11: Kangaroo Field
Kangaroo Field Joey Prospect Kangaroo Area Top Paleocene Depth Map Greater confidence in resource certainty at Kangaroo due to: - Greater well control post Kangaroo-2 and side tracks - Higher quality 2 millisecond 3D seismic data - Core samples (MSCT*) obtained, providing good data on reservoir char
Slide 12: Echidna Field
Echidna Field Echidna Area Top Paleocene Depth Map. Greater confidence in resource certainty at Emu Updip Prospect Echidna due to: - A good match between the seismic amplitude anomalies and the oil water contacts calculated from pressure data. - Higher quality seismic indicates faulting intensity an
Slide 13: ANP Approved Appraisal Plan
ANP Approved Appraisal Plan The Appraisal Plan (‘PAD’) was approved by the Brazilian oil and gas regulator, the Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (‘ANP’) during August 2015. Firm Commitments – Period ends 31 December 2018 - Two wells (expected) in the Emu / Echidna area - A
Slide 14: Project Management Team & Development Concepts
Project Management Team & Development Concepts: Project Development Advisor, José Formigli Project Manager, Ricardo Abi-Ramia 14
Slide 15: Project Development Team
Project Development Team > A petroleum enginner with over 30 years experience in planning, designing, implementing and operating production systems in shallow, deep and ultra-deep waters in Brazil José Formigli > Worked for 32 years with Petrobras in several activities related to well construction,
Slide 16: Planning the Field Development
Planning the Field Development Offshore projects are capital intensive and complex undertakings requiring a phased ‘gated’ process to select and execute on development. Key Phases and Elements: Appraisal and Selection: - Develop a robust reservoir model - Maximise well performance - Select the right
Slide 17: Development Considerations
Development Considerations Key Attributes of Karoon’s Blocks - Water Depth: 270 – 400 meters - Oil API Gravity: 33 – 40 degrees - Estimated oil production per well: 10,000 bpd Key Development Drivers - Flexibility to adapt to reservoir behaviour - Minimise technical risks - Maximise hydrocarbon reco
Slide 18: Development Strategy
Development Strategy A FPSO facility with subsea completions connected through flexible lines is the primary choice for this kind of offshore field scenario in Brazil Consideration Strategy / Advantages - Flexibility for expansion - Minimise technical risks - Proved field development solution FPSO P
Slide 19: Early Production System (EPS)
Early Production System (EPS) The objective of an EPS is to evaluate reservoir behavior and as a result get technical parameters required for a better design of the Definitive System. The EPS likely comprises: - Leased FPSO - 2 horizontal production wells - 1 gas injector well - Estimated production
Slide 20: EPS Example: Baúna e Piracaba
EPS Example: Baúna e Piracaba An EPS followed by FFD is a proven field strategy. This approach was used recently in Brazil in the following development: 1 - Tiro e Sidon (now Baúna e Piracaba) EPS Full Field Development Early Production System: 20.000 bpd Definitive System 2 Production Wells Product
Slide 21: Significant Cost Components
Significant Cost Components Capital Expenditure - Appraisal wells (vertical) US$30-40 million per well - Horizontal producers US$140-185 million per well* - Gas and water injectors US$100-145 million per well* Capex includes: - Well costs - Subsea completions, well heads, umbilicals, risers and flow
Slide 22: Concept 1. Echidna and Kangaroo
Concept 1. Echidna and Kangaroo Development Concept: Contingent 2C Resource: 129mmbbls (84mmbbls net to Karoon) EPS - Production per well: 10kbpd - 2 Horizontal Producers - 1 Gas Injector FFD* - Production per well: 10kbpd - 10 Horizontal Producers - 4 Gas Injectors - 4 Water Injectors * The FFD tot
Slide 23: Concept 2. Echidna Standalone
Concept 2. Echidna Standalone Development Concept: Contingent 2C Resource: 75mmbbls (49mmbbls net to Karoon) EPS - Production per well: 10kbpd - 2 Horizontal Producers - 1 Gas Injector FFD* - Production per well: 10kbpd - 5 Horizontal Producers - 2 Gas Injectors - 2 Water Injectors * The FFD total w
Slide 24: Concept 3. Echidna and Kangaroo
Concept 3. Echidna and Kangaroo Development Concept: Contingent 3C Resource: 252mmbbls (164mmbbls net to Karoon) EPS - Production per well: 10kbpd - 2 Horizontal Producers - 1 Gas Injector FFD* - Production per well: 10kbpd - 13 Horizontal Producers - 4 Gas Injectors - 6 Water Injectors * The FFD to
Slide 25: Current Estimate Milestones
Current Estimate Milestones 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 PHASE Task Name Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Reservoir Modeling Appraisal Campaign Subsea Detailing Design Early Production System (EPS)
Slide 26: Summary: Managing Director, Robert Hosking
Summary: Managing Director, Robert Hosking 26
Slide 27: Key Points
Key Points - Increased confidence in the contingent resource volumes, strong production test results, and the shallow water and shallow reservoir setting continue to support the potential for a combined or standalone development option - The development type under consideration, subsea development t
Slide 28: Contact Information
Contact Information For further information please see the Karoon website or contact: Investor Relations Manager James Wootton T: +613 9616 7520 E: jwootton@karoongas.com.au Collins Street Media Ian Howarth T: +614 0782 2319 E: ian@collinsstreetmedia.com.au 28
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