Carnarvon Energy Limited · ASX:CVN
Carnarvon Energy — Investor Presentation (October 2018)
32 slides from Carnarvon Energy's investor presentation, Oct 16, 2018
Slide 1: The standout emerging oil and gas company on ASX
For personal use only The standout emerging oil and gas company on ASX October 2018
Slide 2: Disclaimer & Resource Information
DISCLAIMER & RESOURCE INFORMATION CVN The resource estimates outlined in this report have been prepared by the Company’s Chief Operating Officer, Mr Philip Huizenga, who is a full-time employee of the Company. Mr Huizenga has over 25 years’ experience in petroleum exploration and engineering. Mr Hui
Slide 3: The standout emerging oil & gas company on ASX
For personal use only THE STANDOUT EMERGING OIL & GAS COMPANY ON ASX CVN OIL WEIGHTED More than 60% of CVN’s 104 mmboe contingent resource is oil CONVENTIONAL Resources discovered are in quality conventional reservoirs DEVELOPMENT Projects are in shallow water close to infrastructure & services ECON
Slide 4: Corporate Snapshot and Executive Management
CORPORATE SNAPSHOT AND EXECUTIVE MANAGEMENT CVN Carnarvon has a market capitalisation of ~A$500m backed by an experienced management team with For personal use only extensive in-house technical capability, led by Managing Director Adrian Cook. Capitalisation Highly experienced team Ordinary shares o
Slide 5: Strategy focused on Australia's most prolific oil & gas region
For personal use only CARNARVON’S STRATEGY IS FOCUSED ON AUSTRALIA’S MOST PROLIFIC OIL & GAS REGION CVN WWW.CARNARVON.COM.AU | PAGE 5
Slide 6: 2018 - Carnarvon's strategy produced a world class discovery
For personal use only Million barrels of oil equivalent (mmboe) 1000 1500 2000 2500 3000 3500 4000 0 500 Zohr (Egypt) Yakaar (Senegal) Tortue (Mauritania) Liza (Guyana) Teranga (Senegal) Ballymore (USA) Oil Discoveries Payara (Guyana) Zama (Mexico) Whale (USA) Zalophus (Angola) Gas Discoveries Hamme
Slide 7: 2019 & 2020 - Focus is on Dorado and resources around Dorado
2019 & 2020 - FOCUS IS ON DORADO AND RESOURCES AROUND DORADO CVN Contingent resources1 Prospective resources1 For personal use only Discovered 362 mmboe (Gross, 2C) Undrilled 571 mmboe (Gross, P50) Carnarvon 20% interest Carnarvon 20-30% interest Resources 20km apart Resources 13, 43 & 30 km from Do
Slide 8: Carnarvon loaded up in the low of the cycle
CARNARVON “LOADED UP” IN THE LOW OF THE CYCLE TO SET UP FOR FUTURE GROWTH CVN Buffalo For personal use only WA-523-P 100% Eagle Project AC/P63 100% Condor Project AC/P62 100% Labyrinth Project WA-521-P 100% Dorado & Roc WA-435-P & WA-437-P 20% WA-436-P & WA-438-P 30% Maracas Project WA-524-P 100% Ou
Slide 9: Buffalo oil field redevelopment: low risk / high margin opportunity
For personal use only BUFFALO OIL FIELD REDEVELOPMENT REPRESENTS A LOW RISK / HIGH MARGIN OPPORTUNITY CVN Shallow water (25m) Conventional field development Low capital cost (US$150m) West East Contingent resources (CVN 100%) 1C 2C 3C Oil remaining Oil remaining MMbbl 15 31 48 WWW.CARNARVON.COM.AU |
Slide 10: Near term focus is primarily on 2019 drilling activities
For personal use only CARNARVON’S NEAR TERM FOCUS IS PRIMARILY ON 2019 DRILLING ACTIVITIES CVN DORADO OIL Prepare & drill two Dorado appraisal wells in 2019 DORADO OIL Progress oil field development plans to achieve FID in 2020 BUFFALO OIL Complete Production Sharing Contract with Timor-Leste BUFFAL
Slide 11: Mid term focus is on maximising value from discovered resources
For personal use only CARNARVON’S MID TERM FOCUS IS ON MAXIMISING VALUE FROM DISCOVERED RESOURCES CVN Carnarvon's share of discovered Contingent Resources Million barrels of oil / oil equivalent on a 2C basis (mmbbl /mmboe) 120 100 39 80 mmboe 60 31 mmbbls 40 20 34 mmbbls - Oil Dorado Oil Buffalo Ga
Slide 12: A unique oil & gas position with significant growth potential
For personal use only A UNIQUE OIL & GAS POSITION WITH SIGNIFICANT GROWTH POTENTIAL CVN UNIQUE Exposure to Australia’s most exciting exploration province around Dorado DISCOVERIES Of over 100 million barrels of oil equivalent to date net to Carnarvon BLUE CHIP Project in Dorado with Santos expected
Slide 13: 2016 - Highly successful Roc-2 well flow test
For personal use only 2016 – HIGHLY SUCCESSFUL ROC-2 WELL FLOW TEST CVN WWW.CARNARVON.COM.AU | PAGE 13
Slide 14: Additional Information
For personal use only ADDITIONAL INFORMATION THINK DIFFERENT ACT DIFFERENT
Slide 15: Set up for growth by securing acreage in the low of the cycle
For personal use only CARNARVON SET ITSELF UP FOR GROWTH BY SECURING ACREAGE IN THE LOW OF THE CYCLE CVN WWW.CARNARVON.COM.AU | PAGE 15
Slide 16: Substantial portfolio across the North West Shelf
For personal use only CARNARVON NOW HAS A SUBSTANTIAL PORTFOLIO ACROSS THE NORTH WEST SHELF CVN Buffalo WA-523-P 100% Eagle Project AC/P63 100% Condor Project AC/P62 100% Phoenix Project (inc. Dorado & Roc) WA-435-P 20% WA-436-P 30% Labyrinth Project WA-437-P 20% WA-521-P 100% WA-438-P 30% Maracas P
Slide 17: Snapshot of Carnarvon's key projects
SNAPSHOT OF CARNARVON’S KEY PROJECTS CVN Carnarvon’s portfolio of oil & gas assets include two near-term oil developments For personal use only DORADO OIL ▪ Potential near-term oil development (20% Carnarvon) ▪ Third largest oil resource ever discovered in the North West Shelf ▪ Appraisal drilling p
Slide 18: Dorado is a major discovery across stacked sands
DORADO IS A MAJOR DISCOVERY ACROSS STACKED SANDS CVN Top Caley interval 3D seismic map For personal use only Dorado WWW.CARNARVON.COM.AU | PAGE 18
Slide 19: Depiction of Dorado stacked sands
DEPICTION OF DORADO STACKED SANDS CVN Dorado-1 well For personal use only WWW.CARNARVON.COM.AU | PAGE 19
Slide 20: Roc has already confirmed flow rates at commercial levels
ROC HAS ALREADY CONFIRMED FLOW RATES AT COMMERCIAL LEVELS CVN Roc-2 appraisal well flow tested For personal use only 53 mmscf/d & 3,000 bpd in late 2016 Roc WWW.CARNARVON.COM.AU | PAGE 20
Slide 21: Dorado & Roc comfortably within tie-back distance
For personal use only DORADO & ROC COMFORTABLY WITHIN TIE-BACK DISTANCE CVN <20km Roc Dorado WWW.CARNARVON.COM.AU | PAGE 21
Slide 22: Four permits cover the entire hydrocarbon basin
For personal use only FOUR PERMITS COVER THE ENTIRE HYDROCARBON BASIN CVN WA-435-P & WA-437-P 20% Carnarvon WA-436-P & WA-438-P 30% Carnarvon WWW.CARNARVON.COM.AU | PAGE 22
Slide 23: "...and the upside is staggering"
For personal use only “.... AND THE UPSIDE IS STAGGERING” CVN Phoenix South Phoenix Peng Bewdy & Bottler Roc Roc satellites Dorado Roc South – stacked pay AND possibly connected to Dorado Roc South East Apus lead Very large structure near Dorado Pavo – trap style similar to Dorado WWW.CARNARVON.COM.
Slide 24: Why Dorado is an important discovery
For personal use only WHY DORADO IS AN IMPORTANT DISCOVERY CVN OIL 3rd largest discovery in the history of the NWS GAS Plus half a trillion cubic feet of gas and associated condensate PLAY TYPE The discovery de-risks similar prospects nearby LOCATION Ideal for development in shallow water Western Au
Slide 25: Oil & gas volumes can support separate developments
For personal use only OIL & GAS VOLUMES CAN SUPPORT SEPARATE DEVELOPMENTS CVN Gross Contingent Resources (CVN 20%) 1C 2C 3C Oil - Dorado MMbbl 82 171 320 Condensate - Dorado + Roc MMbbl 18 36 71 Gas - Dorado + Roc BCF 434 884 1,777 Total oil equivalent MMboe 176 362 702 WWW.CARNARVON.COM.AU | PAGE 2
Slide 26: Buffalo Oil
BUFFALO OIL CVN 100% owned low risk oil field re-development project For personal use only Summary Buffalo Development Field ▪ Gross 2C light oil contingent Buffalo Well resource of 31 MMbbls Drilling in Q3, 2019 (independently reviewed by RISC) ▪ Low risk and low cost development plan ▪ Development
Slide 27: Buffalo oil field redevelopment transitioning to Timor-Leste
BUFFALO OIL FIELD REDEVELOPMENT TRANSITIONING TO TIMOR-LESTE CVN New maritime boundary line For personal use only Timor-Leste Australia WWW.CARNARVON.COM.AU | PAGE 27
Slide 28: Other Projects
OTHER PROJECTS CVN CVN utilises its strong inhouse technical capabilities to access high growth opportunities For personal use only LABYRINTH ▪ Very large oil prospects with the project in the process of being farmed out (100% Carnarvon) ▪ Located in the Rowley Sub-basin in the North West Shelf (WA-
Slide 29: Outtrim Project
For personal use only OUTTRIM PROJECT CVN WWW.CARNARVON.COM.AU | PAGE 29
Slide 30: Oil & Gas Volume Summary (Contingent Resources)
OIL & GAS VOLUME SUMMARY (CONTINGENT RESOURCES) CVN Gross Contingent Resources (100% basis) For personal use only Light Oil Natural Gas Condensate Barrels of Oil Equivalent MMbbl BCF MMbbl MMboe 1C 2C 3C 1C 2C 3C 1C 2C 3C 1C 2C 3C Dorado 82 171 320 229 552 1,197 6 16 36 128 283 566 Roc - - - 205 332
Slide 31: Oil & Gas Volume Summary (Selected Prospective Resources)
OIL & GAS VOLUME SUMMARY (SELECTED PROSPECTIVE RESOURCES) CVN Gross Prospective Resources (100% basis) For personal use only Net Prospective Resources (CVN’s share) WWW.CARNARVON.COM.AU | PAGE 31
Slide 32: Investor Inquiries
For personal use only INVESTOR INQUIRIES: Thomson Naude Company Secretary Phone: (08) 9321 2665 Email: investor.relations@cvn.com.au MEDIA INQUIRIES: Luke Derbyshire Managing Director, Spoke Corporate Phone: 0413 809 404 THINK DIFFERENT Email: Luke@spokecorporate.com ACT DIFFERENT
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