Slide 1: Company Presentation - SEAAOC Conference, Darwin
22 August, 2014 For personal use only Companies Announcements Office Australian Securities Exchange Limited 10th Floor, 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam Company Presentation SEAAOC Conference, Darwin MEC Resources Ltd (ASX: MMR) is pleased to provide a copy of the presentation at the
Slide 2: SEAAOC - Bonaparte Basin
For personal use only SEAAOC- BONAPARTE BASIN August, 2014 Strictly private & confidential 1
Slide 3: Argentina wins shale lottery
If Chevron 1000 ft is winning the lottery what is 5000 ft in Advents Bonaparte basin shale plays?! For personal use only Argentina wins shale lottery Monday, 26 May 2014 ARGENTINA has won the shale “lottery” with a 1000- foot-thick Vaca Muerta formation, according to Chevron. While commercial layers
Slide 4: Further Information on Advent Energy's Bonaparte Basin Unconventional Assets
Further Information on Advent Energy’s Bonaparte Basin Unconventional Assets: For personal use only • The depositional environment in Australia is predominantly terrestrial vs. marine in North America. The predominant source rocks are coal and lacustrine shales as opposed to marine shales in North A
Slide 5: ADVENT Gas Projects
ADVENT Gas Projects For personal use only EP386 + RL1 RL1 Unconventional Resources Onshore Bonaparte Basin 9.8 TCF prospective Recoverable Conventional Resources Milligans (shale) Conventional Weaber Gas Field: Resources 356 BCF Prospective 45.8 BCF 3C Contingent Resources Recoverable 2,734 km2 PEP1
Slide 6: Advent Energy 100% of EP386 & RL1
Advent Energy 100% of EP386 & RL1 For personal use only Advent Note: The reservoir thickness from which the estimated 6 Tcf in the ACOLA report was based was 36m (120ft) of average net shale thickness in the Bonaparte Basin. The thickness estimated from Advent’s well logs shows elevated gas levels f
Slide 7: For personal use only
For personal use only Bonaparte Milligans Dry 2,752 6 1090 0.40 2.18 Source: Cook, P, Beck, V, Brereton, D, Clark, R, Fisher, B, Kentish, S, Toomey, J and Williams J (2013). Engineering energy: unconventional gas production. Report for the Australian Council of Learned Academies, www.acola.org.au
Slide 8: EP386 + RL1 Summary
EP386 + RL1 Summary The Bonaparte Basin is a proven hydrocarbon producing basin representing 19% of Australian liquids and 17% of gas (2005 GA report). EP 386 and RL 1 are located on the southern, onshore part of the Bonaparte Basin. EP386 covers 2568km 2 in Western Australia and RL1 For personal
Slide 9: This is an active hydrocarbon system
This is an active hydrocarbon system EP 386 & RL/1: 7 conventional gas discovery wells – Onshore High Technical Success Rate For personal use only Well Well Flow Rates Observed Classification (unstimulated) Bonaparte-1 Oil & gas shows Bonaparte-2 Gas Discovery 1.5 MMscf/d Keep River- Gas Discovery 3
Slide 10: Bonaparte Basin EP / RL-1 Shale and tight gas exploration
Bonaparte Basin (WA/NT) EP 386 / RL-1 Shale and tight gas exploration Ningbing-2: Elevated Gas Shows over Lower Milligans-Langfield Section For personal use only Bonaparte Basin, Australia Wide distribution of oil and gas shows and tests throughout basin Advent Energy has 100% of EP 386 & RL 1 inclu
Slide 11: Bonaparte Basin EP / RL-1 Shale and tight gas exploration
Bonaparte Basin (WA/NT) EP 386 / RL-1 Shale and tight gas exploration For personal use only Multiple petroleum targets are present in EP 386 & RL1 Vienta-1: Elevated Gas Shows over mid-Upper area: & Lower Milligans Section Proven conventional gas charged sandstone reservoirs in nearshore marine
Slide 12: Garimala-1 and Waggon Creek-1A gas shows
Garimala-1: Elevated Gas Shows over Milligans-Langfield Section For personal use only Waggon Creek-1A: Elevated Gas Shows over Milligans Section Elevated gas shows over 800m in shale/siltstone section. TOC from Lab matched well with computed value from logs and maximum TOC value can be up to 5% (rig
Slide 13: Bonaparte-2
Bonaparte-2 For personal use only Gas Producing Zone: Gas Produced Zone Sandstone with low GR, higher density, Rt-deep > Rt-nor, 1690-1694m/4m Potential Zones need further investigation: 1711-1712m/1m 1: Similar Log properties to the gas producing zone 2: Reservoir been contaminated by drilling mud
Slide 14: Bonaparte-2 (Con't)
Bonaparte-2 (Con’) For personal use only Gas Producing Zone: Gas Produced Zone Sandstone with low GR, SP higher density, Rt-deep > Rt-nor, Potential Zones need further investigation: 1: Similar Log properties to the gas producing zone 1940-1942m/2m 2: Reservoir been contaminated by drilling mud and
Slide 15: Waggon Creek-1
Waggon Creek-1 For personal use only Gas Producing Zone: Sandstone with low GR, higher density, Rt, SP anormaly Gas Producing Zone 416-417m/1m Potential Zones need further investigation: Similar Log properties to the gas producing zone 492-495m/3m 563-569m/6m Gas Producing Zone 606-612m/6m
Slide 16: Weaber-4
For personal use only Weaber-4 Gas Producing Zone: Sandstone with low GR, higher density, Rt, SP anormaly 1245-1246m/1m Potential Zones need further 1270-1281m/11m investigation: Similar Log properties to the gas 1289-1290m/1m producing zone 1333-1345m/12m Gas Produced Zone 15
Slide 17: Garimala-1
Garimala-1 1469--1479m/10m For personal use only Gas Producing Zone: Sandstone with low GR, higher density, Rt 1841--1850m/9m Potential Zones need further 1899--1902m/3m investigation: Similar Log properties to the gas 1955--1972m/17m producing zone 2210--2216m/6m Gas Producing Zone 2401--2211m/10m
Slide 18: Bonaparte Basin
For personal use only Bonaparte Basin Bonaparte Basin: The Bonaparte Basin is currently Australia’s third most prolific offshore hydrocarbon- producing basin. A proven hydrocarbon producing basin representing 19% of Australian liquids and 17% of gas (2005 Geoscience Australia report). EP386 and RL1
Slide 19: Bonaparte Basin
For personal use only Bonaparte Basin Bonaparte Basin: • Well-understood basin with readily available database of digital well and seismic. • Known very thick accumulations of shale mature source rocks (up to 5000 feet). • Multiple unconventional play types – tight gas, tight oil, shale gas and shal
Slide 20: Bonaparte Basin
For personal use only Bonaparte Basin Shale resource extent constrained by limits of seismic data Bonaparte Basin: Database on shale distribution. Thermally mature shale source packages thorughout basin. Potentially both wet & dry shale gas plays throughout basin. Advent Energy holds 2734km2 of pros
Slide 21: Bonaparte Basin
For personal use only Bonaparte Basin Bonaparte Basin: • Lower Milligans Formation shale is prospective for shale gas play with considerably large upside potential: Garimala-1: Elevated gas shows over • Marine shale with moderate organic richness: TOC of over 4% from samples in wells within or in 17
Slide 22: Bonaparte Basin - continuous gas column
For personal use only Bonaparte Basin 600 – • Tight gas recognised as a major play in onshore basin 1700m continuous (Geoscience Australia). gas column • Multiple tight gas & oil zones and discoveries in structural, stratigraphic and continuous accumulations
Slide 23: Basin Comparison
For personal use only Basin Comparison Advent Energy’s Bonaparte Basin EP386 & RL1 Cooper Basin Unconventional Assets (source: Drillsearch, Beach Energy, Chevron) Contribution to A proven hydrocarbon producing basin representing Australia’s largest onshore Oil & Gas Basin Australian 19% of Australia
Slide 24: Comparable acreage values
Chevron / Beach Cooper Basin SEA Mississippean Niobra, Eagle Ford For personal use only Beach / Sth Aust ~$900/acre; Feb US ~$5,000 /acre Adelaide Baytex/Aurora Cooper Basin 2013 (WSJ) Eagle Ford Texas Statoil / Sth Aust Beach core ~$100,000 /acre Petrofrontier ~$805/acre; Nappamerri (The Aus.) Geor
Slide 25: ACOLA Shale Gas Report
ACOLA Shale Gas Report EP386 & RL/1 Beach: HESS: $65 M Shale Advent Energy $36 M JV Gas JV with Falcon Mitsubishi Corp: 100% with Australia in Beetaloo $40m of work Territory Basin under Buru’s 2012 Oil unconventional For personal use only gas exploration Statoil: Contributing program $25M JV with A
Slide 26: EP 386: Well-Well Correlation in EP386
Tanmurra Fm For personal use only Upper Milligans Fm Waggon Creek-1 Lower Milligans Fm 1.3 MMscf/d 2.1 MMscf/d 1.5 MMscf/d Langfield Group Weaber-1 4.5 MMscf/d EP 386: Well-Well Correlation in EP386
Slide 27: U.S.G.S - Advent's conventional / unconventional gas area
U.S.G.S - Advent’s conventional / unconventional gas area / existing wells in EP386 / RL1 and U.S.G.S. inset showing “pod of Active Source Rocks Boundary”- U.S.G.S. onshore mean 56 MMBO (oil) and 460 B.C.F Gas Undiscovered Resource – Conventional Resource Assessment For personal use only U.S. Geolog
Slide 28: Bonaparte Basin: Key Information
Bonaparte Basin: Key Information For personal use only Carboniferous Milligans Formation: Tight Gas, Shale Gas & Liquid Hydrocarbon Potential Key gas-prone source rocks Over 500m marine shale/mudstone TOC up to 4.3% Mature for oil and gas generation Elevated gas shows while drilling throug
Slide 29: Australia tipped to overtake China in shale boom
Australia tipped to overtake China in shale boom MATT CHAMBERS, THE AUSTRALIAN, JANUARY 20, 2014 For personal use only AUSTRALIA is being touted as the place most able to replicate the shale gas and oil success of the US, overtaking China, where exploration is struggling to gain traction, and other
Slide 30: For personal use only
For personal use only Source: Australian Unconventional Oil & Gas; Time to Ride the Wave, September 2013, RFC Ambrian
Slide 31: Total organic carbon ranges for shale plays
For personal use only For shale gas, TOCs should ideally be Many of the North American plays have between 2.0% by weight (wt%) and TOC values that exceed the ideal range, 7.0wt%. whilst most Australian plays fall comfortably A value of approximately 0.5wt% is within the optimum range. considered the
Slide 32: Vitrinite reflectance of plays
The graph below shows that the average vitrinite reflectance values for most of the plays fall into the optimum range of 1.0-3.0%. For personal use only Source: Australian Unconventional Oil & Gas; Time to Ride the Wave, September 2013, RFC Ambrian
Slide 33: Geoscience Australia Report
For personal use only Geoscience Australia Report
Slide 34: EP 386: Key Deposition Centres in EP386
EP 386: Key Deposition Centres in EP386 Moogarooga Deep Vienta Deep For personal use only Waggon Creek Deep Tanmurra Fm Upper Milligans Fm TWT Lower Milligans Fm Langfield Group Ningbing Group+
Slide 35: EP 386 Shale Gas Unrisked Prospective Resource Estimates
Bonaparte Basin (WA/NT) EP 386 / RL-1 Shale and tight gas exploration For personal use only EP 386 Shale Gas Unrisked Prospective Resource Estimates Lower Milligans Fm EP 386 & RL 1 Parameters Unit Low Best High Area - A Acres 197,683 296,525 345,946 Pay Thickness -h Ft 1310 1640 1968 Shale resource
Slide 36: EP & RL/1: Prospects/Lead Summary
EP 386 & RL/1: Prospects/Lead Summary (showing Seismic lines) - mean conventional recoverable 556 BCF For personal use only Prospect on Top Ningbing Grp Prospect on Top Langfield Grp Unrisked OGIP & Prospective Recoverable Conventional Hydrocarbon Prospect on Top Lower Milligans Fm Resources in EP38
Slide 37: EP386 / RL1 Gas Composition
EP386 / RL1 Gas Composition compared with industry standard For personal use only Industry Bonaparte- Garimala-1 Average Ningbing-2 Ningbing-2 Weaber- Weaber- 2 (DST No6: (DST No2: Waggon Name Unit Natural Gas (DST No3: (DST No5: Vienta-1 EP 386 Average 1 4 4712- 2381- Creek-1 Composition 535-598m)
Slide 38: Bonaparte Basin - A Proven Hydrocarbon Producing Basin
Bonaparte Basin- A Proven Hydrocarbon Producing Basin For personal use only EP386 & RL1 Gas Reservoirs
Slide 39: Geological epochs of prospective shale gas basins
DVENT ENERGY LIMITED Geological Epochs with ages of the prospective shale gas basins shown (after Geoscience Australia).
Slide 40: State of Onshore Bonaparte Basin
State of Onshore Bonaparte Basin Western For personal use only Advent gas Australia project area Economy of Western Australia is equal to Resource 50th biggest country projects globally underpinned by resources proximal to including LNG, Iron Advent gas Ore, Diamonds, project area Coal, Agricultur
Slide 41: Lake Argyle: Ord Irrigation Area
Lake Argyle Ord Irrigation Area Phase II For personal use only Lake Argyle: Ord Irrigation Area Stage Two of the Ord River Surface area of scheme has significantly enhanced road access to the Vienta Gas 1,000 square km Field (18 times the size Stage Two Ord roads capable of of Sydney road train
Slide 42: EP386 & RL1 - Onshore Bonaparte Basin, Northern Australia
Blacktip Pipeline 75km For personal use only Ichthys Pipeline 260km WA Resources Ltd Sea Dragon Project Darwin-Amadeus Pipeline 300km Wyndham Port: Planned future Import/Export Facilities Sorby Hills Northern Pb/Zn/Ag Mine Territory Stage Ord Scheme Ord Phase 1 Stage Two Ord Scheme (2013) Dampier-Bu
Slide 43: Adjacent Port of Wyndham
For personal use only Adjacent Port of Wyndham: Wyndham Port is the only deep-water port between Broome and Darwin. Exports include oil, iron ore, live cattle and nickel. Imports include fuel oil, ammonium nitrate for the mining industry (in particular Argyle Diamond Mine) and general cargo. The por
Slide 44: LNG Plants
For personal use only LNG Plants Our LNG production facility in Snurrevarden, Norway, fully fitted with remote monitoring and control capabilities, was the first free-standing small scale LNG plant in Northern Europe. http://www.wartsila.com/en/oil-gas/onshore/applications/lng-terminals
Slide 45: CAPEX & OPEX
@ A TRE-ZEN CAPEX & OPEX ssenkrupp Uhde Energy & Power @ CAPEX Metrics — care not all LNG-FPSOs are created equal! @ OPEX @ Production Cost $/MMBTU @ LNG Value Chain ¢ Options to Improve economics i cum — FLOATING LIQUEFACTION ADVANCEMENTS ~ — NG a is . TT . $4bn/2.7 MTPA Ts (woo 195300 201 USD ton
Slide 46: LNG Production, Storage, Distribution & Use
LNG Production, For personal use only Storage, Distribution & Use
Slide 47: Advent Growth Strategy
Advent Growth Strategy use only PEP11 Field Development: Domestic Gas Offshore Sydney Basin Exploration / Sales / 5.7 Tcf Prospective Appraisal; Conventional Gas Resources Export Gas (LNG) personal to Value EP386 & RL1 Onshore Bonaparte Basin Exploration / Field Development 9.8 Tcf Prospective Appra
Slide 48: ADVENT Energy Ltd. - Summary
ADVENT Energy Ltd. – Summary For personal use only ADVENT’s four key petroleum titles contain all the elements seen in Late stage Exploration with other producing, world class petroleum basins, and have an aggregate Prospective recoverable Resources of over 15 TCF (Best early stage Production well
Slide 49: Public Disclaimer
Public Disclaimer For personal use only This company presentation (the “Company Presentation”) of Advent Energy Limited (the “Company”) has been prepared by the Company solely for information purposes and for the sole use of the person to whom it is delivered. The Presentation is prepared for discus
Slide 50: For personal use only
For personal use only David Breeze Advent Energy Limited Ph +61 8 9328 8711 david@adventenergy.com.au Director 14 View Street Fax +61 8 9328 8733 www.adventenergy.com.au North Perth WA 6006 Australia