Key Petroleum Limited · ASX:KEY
Key Petroleum — Shareholder Meeting (November 2009)
21 slides from Key Petroleum's shareholder meeting presentation, Nov 23, 2009
Slide 1: Annual General Meeting
For personal use only ANNUAL GENERAL MEETING Monday 23rd November 2009 QV1 Building, 250 St Georges Terrace, Perth 10:00am PRESENTATION DISCLAIMER The information in this presentation is an overview and does not contain all information necessary for investment decisions . In making investment decisi
Slide 2: Resolution voting results
For personal use only RESOLUTION # FOR AGAINST CHAIRMAN'S ABSTAINED DISCRETION #1 19,448,548 2,119,162 2,728,167 0 #2 21,296,461 311,249 2,728,167 10,000 #3 16,356,917 5,260,793 2,728,167 0 #4 13,690,299 7,927,411 2,728,167 0 2
Slide 3: For personal use only
For personal use only 3
Slide 4: Company objectives
For personal use only Increase shareholder value through the discovery and development of commercial oil & gas deposits Undertake systematic and cost effective exploration of its oil & gas concessions using modern techniques Fund exploration in joint venture with other companies and in its own
Slide 5: Year in review
For personal use only Became an oil producer & Operator, onshore U.K. Carried out successful capital raising. Started preparing to drill first onshore U.K. well. Continued with field appraisal, Kiliwani North. Worked to obtain offshore Italian acreage And is awaiting Suriname drilling –
Slide 6: Board and management
• 32 yrs + oil & gas expertise For personal use only Ted Ellyard • Chairman / CEO of ASX / AIM companies Chairman • Creator of shareholder wealth, Hardman, Minemakers & others Ken Russell • 35 yrs + international oil industry experience Managing Director /CEO • E&P assignments with multi-national co
Slide 7: Corporate snapshot and main assets
Shares on Issue 129 Million For personal use only Price 12cents (23/11/09) Options Unlisted 5,000,000 @ 50c, 750,000 @ 20c - expiring on 30/11/2010 Market Cap Approx $15.5 Million (23/11/09) Debt Nil Cash on Hand AUD$4.75 Million– plus oil production income MAIN ASSETS Onshore Southern England • Bro
Slide 8: Strategy and results for the year
For personal use only The strategy for the year was; • Commericalisation of Kiliwani North • Expansion of business in Italy • Seek further opportunities for wealth creation Results for Year; • Acquired 2 producing UK Onshore Oil Fields • Slow progress in Tanzania • Exit from Namibia • Have completed
Slide 9: Strategy going forward
For personal use only Strategy going forward • Maintain focus on growing company • Production optimization at UK oilfields • Continue to seek out growth opportunities The company’s management have been actively pursuing acquisitions throughout the year however the company’s management are not always
Slide 10: Why southern UK onshore
For personal use only Top tier international fiscal regime – 50% Govt take, less tax losses Oily region, neglected for 20 years Under-developed fields and immediate cashflow – build a business Increasing interest and business activity in Southern UK Favourable A$:£ exchange rate trends L
Slide 11: UK oil field acquisition
For personal use only Purchased for £ 2.0 million(A$4.00) Tax credits >£1.5 million (A$3.00) 85 BOPD with upside Established, simple operations Oil production revenue to Key Petroleum from day one 11
Slide 12: Brockham and Lidsey locations
For personal use only City of London Brockham Lidsey 12
Slide 13: Operations since acquisition
For personal use only Since acquisition we have; • Pulled rod pump, cleaned out tubing contents. • Revised some operational procedures . • Commenced IT and communication upgrade between locations. 13
Slide 14: Operations since acquisition and drilling preparation
Since acquisition we have; For personal use only • Pulled rod pump, cleaned out tubing contents. • Revised some operational procedures • Commenced IT and communication upgrade between each location • Started preparation work for new drilling 14
Slide 15: Greater Oolite reservoir and potential
Greater Oolite is the main Weald Basin oil reservoir For personal use only High porosity / low permeability Productivity commonly enhanced by penetrating natural fractures, accessing more reservoir (horizontal drilling) and stimulation What will it deliver? We have a number of models; Base case – 12
Slide 16: East African activity
East African activity continues – For personal use only Offshore Tanzania – • Deepwater action : Petrobras, Shell, Statoil & Ophir Onshore Tanzania – • Ongoing drilling by Maurel & Prom and Tullow Northern Mozambique – • Anadarko 6 wells over 2009-10 16
Slide 17: West Songo Songo and Nyuni PSA
WEST SONGO SONGO NYUNI PSA For personal use only 50% Key & Operator 20% Key 1 Tcf undiscovered gas Appraisal seismic shot Tanzania gas market niche over Kiliwani North gas over next 4 years discovery (40 MMscfd) Sheltered, shallow water, Kiliwani North simple development commercialisat
Slide 18: Key in Italy
BORSANO LICENCE (100%) KEY IN ITALY Close to industrial City of Milan For personal use only LAMPEDUSA, WEST SARDINIA & • Prospective for both oil and gas ELBA SOUTH Borsano Application areas (100%) Elba South Under-explored shelf, prospective for gas, close to major markets West Sardinia Front
Slide 19: The play: Pelagian Shelf
THE PLAY For personal use only Pelagian Shelf (7BBOE discovered off Tunisia & Libya - Oilsearch 2008) Oil prone Cretaceous source rock Italian Govt “take” <40% Lampedusa unexplored since 1980’s oil price crash Key has mapped original seismic data Leads with unrisked mean STOIP up to 250M
Slide 20: Suriname activity
ACTIVITY: For personal use only Uitkijk – Staatsolie announced 7 mm barrels estimated reserves Uitkijk 10 wells drilled - 2008/2009 Block 7 mm bbls est’d Coronie – Coronie Block 5 wells Q4 2009 Reserves 5 wells to be drilled, now scheduled for Nov / Dec start. (Waiting on rig arrival) Key Petr
Slide 21: Upcoming activities
Onshore Southern England For personal use only Optimisation and Drilling. Field development programme. Drilling scheduled Q1 2010 Tanzania Kiliwani North Gas commercialisation process ongoing Italy Offshore Permits Granting of up to 4 offshore licences and Continue search for new asset acquisitions