88 Energy Limited · ASX:88E
88 Energy — Investor Presentation (June 2016)
21 slides from 88 Energy's investor presentation, Jun 17, 2016
Slide 1: Project Icewine, North Slope of Alaska
PROJECT ICEWINE NORTH SLOPE OF ALASKA For personal use only PROJECT ICEWINE JUNE 2016 ICEWINE#2H AND HRZ PLAY UPDATE
Slide 2: Disclaimer
Disclaimer For personal use only The information contained in these slides has been prepared by 88 Energy Limited (the “Company”). The information contained in these slides, the presentation made to you verbally and any other information provided to you (in writing or otherwise) in connection with t
Slide 3: Disclaimer (cont.)
Disclaimer (cont.) For personal use only Any failure to comply with this restriction may constitute a violation of securities laws. No action has been or will be taken by the Company that would permit a public offer of its securities in any jurisdiction in which action for that purpose is required.
Slide 4: Project Icewine: World Class Location, World Class Prize
Project Icewine: World Class Location, World Class Prize For personal use only Alaskan Armstrong/Repsol Explorers: 1.4b barrels (2C) CY2015#4 Kuparuk River Prudhoe Bay 3.5b barrels#3 15b barrels#3 Alpine 0.7b barrels#3 BP Caelus ConocoPhillips ENI Repsol 70 & 148 Great Bear ** PROPOSED ExxonMobil IC
Slide 5: Company Snapshot
Company Snapshot Corporate For personal use only 88 Energy Limited Current 88E Board and Management Burgundy Xploration (ASX, AIM: 88E) JV Partner Shares on Issue 3,893m David Wall Managing Director Paul M. Basinski, Founder & CEO Options on Issue 548m Michael Evans Non-Exec Chairman Michael R. McFa
Slide 6: Project Icewine Highlights
Project Icewine Highlights For personal use only PREMIER ACREAGE POSITION IN STRATEGIC TIER 1 LOCATION • 271,119 gross acres (210,250 net to 88 Energy) • First acres leased by Burgundy Xploration in 2012, expanded in 2015 / 2016 in Joint Venture with 88 Energy • Acreage straddles the Dalton Highway
Slide 7: Project Icewine Timeline
Project Icewine Timeline For personal use only Phase I De-Risking Complete Phase II Appraisal Underway Successful Evaluation of Icewine#1 Icewine#2H Flow Test 1H 2017 Multiple fund raisings for A$26m Gross acreage Drill, stimulate 2D seismic expanded to and flow test Completed 2D preliminary 272,000
Slide 8: HRZ Liquids Rich Play: Phase I Formation Evaluation
HRZ Liquids Rich Play: PHASE I Formation Evaluation - COMPLETE For personal use only Metric (Unit) Result Comment / Comparison Thermal Maturity Volatile Oil High rate, recovery, & performance GRI Matrix Permeability >10X Eagle Ford Very good for volatile oil resource plays Gross / Net Pay 197’ / 186
Slide 9: What Fundamentals Make a Top Tier Liquids-Rich Resource Play?
What Fundamentals Make a Top Tier Liquids-Rich Resource Play? For personal use only FLOW RATE IS KEY DRIVER–AHEAD OF OIL PRICE AND COST WHAT CHARACTERISTICS DETERMINE FLOW RATE? HOW DOES ICEWINE MEASURE UP TODAY? VISCOSITY PRESSURE Measure of how easily hydrocarbon Reservoir energy that improves wel
Slide 10: Phase II - Icewine#2H Appraisal Well
Phase II - Icewine#2H Appraisal Well Horizontal Multi Stage Stimulation Icewine#2H Overview – Spud 1Q2017 For personal use only • Objective to prove production potential of HRZ reservoir • Permitting and planning commenced Feb 2016 • Scheduled for completion by year end • Design scheduled for comple
Slide 11: Project Icewine HRZ Prospective Resource
Project Icewine HRZ Prospective Resource Internal Assessment For personal use only 2.6 Billion Barrels Gross Mean Prospective Recoverable Resource from HRZ - Liquids Only P90 P50 P10 Mean Pc# Gross Liquids Resource (mmbbl) 1,594 2,471 3,830 2,602 50% Net Attributable to 88 Energy (mmbbl) 1,236 1,916
Slide 12: HRZ Prospective Resource: Internal Assessment - Type Curves
HRZ Prospective Resource Internal Assessment – Type Curves For personal use only Type curves used as basis for internal Project Icewine - Volatile Oil Type Curves 10000 prospective resource assessment - based on HRZ reservoir analysis from data obtained in Icewine#1 1000 Oil Rate (bpd) P10 Decline a
Slide 13: HRZ Prospective Resource: Internal Assessment - Cost Assumptions
HRZ Prospective Resource Internal Assessment – Cost Assumptions For personal use only Metric High Costs Mid Costs Low Costs Lower 48 Comparison Per Well Cost US$17m US$13m US$9m US$7.8m#1 (tied in to sales) Variable Opex US$20/bbl US$15/bbl US$10/bbl $5.00-$12.00/bbl#1 TAPS Tariff US$6.50/bbl US$6.5
Slide 14: HRZ - Full Field Case
HRZ - Full Field Case# Internal Project Analysis Well data based on type curves for P10-P90 prospective resource For personal use only Cost data based on Low-High cost scenarios • Up to 1200 wells drilled across acreage, connected by gravel roads* *(subject to necessary environmental and regulatory
Slide 15: Resource Play Performance Evolution
Resource Play Performance Evolution For personal use only Base Assumption: First well will not be the best well in the play but can expect significant improvement over time both from a cost and performance perspective Representative Examples: EIA 2014: all tight oil plays USA – illustrates four fold
Slide 16: Alaska North Slope: Strong History of Major Oil Development
Alaska North Slope Strong History of Major Oil Development For personal use only Alaska’s North Slope has a strong history of major oil development • Like any other region, it is not without unique challenges • Track record of historic innovation and success in Alaska: • Major Trans Alaska Pipeline
Slide 17: Peer Case Study – Kodiak Oil and Gas
Peer Case Study – Kodiak Oil and Gas# Early Mover Pay Off For personal use only Kodiak (KOG) 2009 2014 Kodiak (KOG) – SP Growth 2009-2014 Net Acres (start) (at offer) Williston Basin 30,000 173,011 18 Other 16,200 10,127 2008 July 2014: WLL announce 16 KOG announces acquisition of KOG, paying Reserv
Slide 18: Project Icewine 2D Seismic
Project Icewine 2D Seismic • 750km 2D seismic acquisition commenced March 2016 For personal use only • Part funded via Bank of America Credit Facility (secured against 75% State of Alaska rebate) • Completed in May 2016 – initial results expected in August 2016 • Designed to: • De-risk drilling of h
Slide 19: Summary and Next Steps
Summary and Next Steps For personal use only Summary: • Phase 1: Icewine#1 Evaluation Complete • Indicating Icewine#1 cored a new resource play in the HRZ shale • Large liquid hydrocarbon resource potential 985mmbbl to > 2.6 billion barrels • Phase 2: Icewine#2H Production Test Planning Has Commence
Slide 20: Board and Key Management
Board and Key Management For personal use only Mr David Wall – Managing Director Ms Elizabeth Pattillo – General Manager Exploration 4 years experience in strategy and planning at Woodside Over 20 years experience in the upstream petroleum Petroleum. 6 years experience in financial services industry
Slide 21: Contacts
Contacts For personal use only Managing Director: Brokers: David Wall Australia dwall@88energy.com Hartleys Ltd As Corporate Advisor: Mr Dale Bryan + 61 8 9268 2829 Registered Office: Level 1, 83 Havelock St, West Perth United Kingdom WA 6005 Cenkos Securities Plc As Nominated Adviser and Broker: Mr