Petro Matad Limited · LSE:MATD
Petro Matad — Investor Presentation (January 2019)
27 slides from Petro Matad's investor presentation, January 2019
Slide 1: Mongolia: Low Cost, Multi-well Onshore Exploration
C o r p o r a t e P r e s e n t a t i o n Mongolia: Low Cost, Multi-well Onshore Exploration RUSSIA MONGOLIA BLOCK - IV BLOCK - V
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Petro Matad Limited (the Company) and is for information purposes only. Some statements contained in this presentation or in documents referred to in it are or may be forward-looking statements. Such statements reflect the Company’s current views wit
Slide 3: Corporate Overview
Corporate Overview Petro Matad Limited ▪ London, AIM Listed (MATD), Mongolia focused ▪ Experienced Board and Management Team - Track record of discovering and monetizing oil/gas fields ▪ Large acreage position held, 3 blocks in Mongolia, 100% working interest, >60,000 km2 - Basins geologically simil
Slide 4: Mongolia Overview
Mongolia Overview ▪ Stable Central Asian democracy after 70 years as a Soviet satellite ▪ Very little petroleum exploration activity in Mongolia in 20th Century due to previous geopolitical constraints despite having numerous prospective basins adjacent, and geologically similar, to prolific oil pro
Slide 5: Proven Petroleum System in Mongolia and China
Proven Petroleum System in Mongolia and China Recent Discovery Hilar-Tamsag Basin 0.5 Bbbls Rec Mongolia Oil in shallow boreholes Songliao Basin Junggar Basin 20 Bbbls Rec 10 Bbbls Rec PETRO MATAD Proven Petroleum Systems 3 1 2 Erlian Basin 0.62 Bbbls Rec East Gobi Basin 0.05 Bbbls Rec Santanghu Bas
Slide 6: Acreage Map and Recent Activity
Acreage Map and Recent Activity Gladwell Uvs Pet LLC NPI LLC 2 wells 2014/15 5 wells 2016/17 2 tested oil PetroChina Blocks XIX & XXI Production PetroMatad PetroMatad Shaman Resources LLC 2D seismic 2017 3D seismic 2017 2 wells 2011-12 1 well 2018 1 well 2018 Wild Horse-1 Snow Leopard-1 MAKS Group 1
Slide 7: 2018/2019 Work Schedule
2018/2019 Work Schedule 2018 2019 Block Activity Q3 Q4 Q1 Q2 Q3 Q4 J A S O N D J F M A M J J A S O N D XX Seismic Reprocessing Re-interpretation/mapping Drilling Location Definition Permitting/Contracting Heron - 1 Gazelle - 1 Red Deer - 1 V Snow Leopard -1 Drilling Post-Well Studies Re-interpretati
Slide 8: 2019 Programme - Block XX Near Field Exploration and Appraisal
2019 Programme - Block XX Near Field Exploration and Appraisal 8
Slide 9: Block XX Proximity to Producing Basins
Block XX Proximity to Producing Basins Heron Block XIX Hilar- Tonson Ul Oilfields Tamsag (~8500 bopd) Block XX Basin Gazelle Erlian Antelope Basin Red Deer Aer Sag Wuliyashitai Sag Bayindulan Sag 40km Abei-Anan Sag Oil Fields 9
Slide 10: Near Field Exploration and Appraisal - Block XX North
Near Field Exploration and Appraisal - Block XX North Block XIX Tonson Ul Oilfields Regional Top Lower Tsagaantsav Fm Time Structure Map 19-30 19-52 (55MMbo ) 19-7 Block XIX 19-12 19-26 19-124 Block XX 19-80 (Total Complex 19-57 (70 MMbo) c. 3-400 MMbo) 19-8 19-20 (3 MMbo) 19-51 19-28 19-46 (15 MMbo
Slide 11: Heron Prospect - Block XX North
Heron Prospect - Block XX North ❑ Heron 1 will test the extension of proven oil in the 19-46 Oilfield that spills updip into Block XX ❑ Commercial flow rates achieved in 19-46 wells ❑ 19-46 believed to contain c.15 MMbo oil in place in Block XIX ❑ Upside STOOIP in greater Heron trap of c.75 MMbo ❑ A
Slide 12: Gazelle Prospect - Block XX North
Gazelle Prospect - Block XX North ❑ Fault bounded structure immediately updip of proven oil generating kitchen area in Block XIX ❑ Closure against normal fault is the proven trapping style in the basin ❑ Structural configuration the same as 19-30 Oilfield on strike to North which is PetroChina’s bes
Slide 13: Red Deer Prospect - Block XX Southwest
Red Deer Prospect - Block XX Southwest ❑ New basin opening well in Asgat Sag, 100km southwest of existing production ❑ Targeting Early Cretaceous Petroleum System proven in surrounding basins ❑ Outcrop and shallow borehole data confirm presence of oil prone source rocks ❑ Basin centre 3-way dip faul
Slide 14: Antelope Prospect - Block XX North
Antelope Prospect - Block XX North ❑ Well defined fault panel on 2D and 3D seismic updip of proven charge kitchen in Block XIX ❑ Oil tested updip of prospect in Davsan Tolgoi-4 (DT-4) proves effective migration ❑ Reservoir presence proven by DT-4 and DT-9 wells drilled by Petro Matad in 2011 ❑ Adjac
Slide 15: Block XX Success Case Economics
Block XX Success Case Economics ▪ 5% crude differential discount to Brent prices assumed based on pricing of adjacent production Case 15 MMBO 50 MMBO ▪ 50 MMbo case assumes own production facilities are constructed NPV10 ($MM) 76 299 ▪ 15 MMbo case assumes minimal facilities (pumps and IRR % 37 39 t
Slide 16: Block V: Post-Drilling Analysis
Block V: Post-Drilling Analysis Two Proven Basins with large Prospects in each 2018 Taats Basin Opener, Snow Leopard-1 16
Slide 17: Block V Prospects & Leads Portfolio
Block V Prospects & Leads Portfolio Tugrug Basin Prospects Taats Basin Leads 3D Seismic 2D Seismic 0 25 50 100 km 0 10 20 40 km 0 5 10 20 km 17
Slide 18: Snow Leopard-1 Results Summary
Snow Leopard-1 Results Summary Well Summary Drilling Component Gases (ppm) ACTUAL 1 10 100 1000 10000 100000 Depth m MD LITH CSG WLL 0 Depth m 0 100 20" 100 C1 ▪ Gases to C5 from 1100m encouraging for source GR TO SURFACE MD KBE TVD SS C2 200 Cond 200 C3 rock development 21m iC4 Top Huhteeg Formatio
Slide 19: Velociraptor Prospect - Block V
Velociraptor Prospect - Block V ❑ 4-way dip closure over thick depocentre ❑ Source intervals seen in SL-1 thicken into depocentre, short vertical migration pathways into Raptor Trend ❑ Shallow, good quality, sandstone reservoirs seen in SL-1. sourced from basin bounding fault scarp - Raptor Trend we
Slide 20: Fox Prospect - Block V
Fox Prospect - Block V ❑ Basin centre 3-way dip fault closure with multiple targets, 206 MMbo mean resource potential ❑ Oil shows in TSC-1 core 8km northwest prove active petroleum system in the basin ❑ Basin margin follow on potential being evaluated ❑ Additional stratigraphic upside potential mapp
Slide 21: Block V Success Case Economics – 150 MMBO
Block V Success Case Economics – 150 MMBO ▪ Early production via trucking to Chinese Block V - 150 MMBO Recoverable Case refineries NPV10 ($MM) 1297 ▪ Reserves would justify pipeline and will further support development/upgrade of IRR % 119 domestic refining capacity Sensitivities (NPV10 $MM) ▪ 5% c
Slide 22: Conclusions
Conclusions ▪ Fully funded for remaining 4 wells of 6 well drilling programme 2018/19 ▪ Portfolio balanced between near field exploration/appraisal and high impact prospects with drilling to start in Q2 2019 and rig contracting underway 2019 Programme – Block XX ▪ 3 wells planned in Block XX, two of
Slide 23: Appendix
Appendix 23
Slide 24: Board of Directors
Board of Directors Chief Executive Officer: Mike Buck ▪ 38 years of international E&P experience including 9 years as COO of Salamander Energy ▪ Proven track record of exploration success in S. America, N. Africa and Asia. Directly involved in the discovery of more than one billion barrels of recove
Slide 25: Block IV: Post-well analysis underway
Block IV: Post-well analysis underway 2018 Baatsagaan Basin Opener, Wild Horse-1 25
Slide 26: Wild Horse-1 Results Summary
Wild Horse-1 Results Summary DEPTH M KBE (above GLE): 6.9m Well Summary Drilling Component Gases (ppm) MD GLE (above MSL):1350.8m PROGNOSIS 1 10 100 1000 10000 LITH CSG WLL 0 m TVDGL TVD SS 0 C1 C2 ▪ Sand development below unconformity with 100 13 3/8" 100 C3 Cond iC4 best drilling gas levels and to
Slide 27: Block IV Prospects & Leads Portfolio
Block IV Prospects & Leads Portfolio Biger Basin Prospects Baatsagaan Basin Leads 2D Seismic 0 50 100 200 km 0 10 20 40 km 0 12.5 25 50 km 27