Emerald Resources Nl · ASX:EMR
Emerald Resources Nl — Emerald Oil & Gas NL — Investor Presentation (May 2008)
24 slides from Emerald Resources Nl's investor presentation, May 7, 2008
Slide 1: Appalachian Basin Gas Producer & Reserve / Resource Developer
For personal use only Emerald Oil & Gas NL Appalachian Basin Gas Producer & Reserve / Resource Developer May 2008
Slide 2: Company Overview
Company Overview For personal use only • Perth based company, listed on ASX in June 2006 • New major US Appalachian Gas Development project – 90,000 acres in Kentucky and West Virginia – 3 conventional gas horizons – Deeper Marcellus & Knox shale potential – 50+ wells per year drilled and completed
Slide 3: A New Growth Strategy
For personal use only A New Growth Strategy • Development of production and reserve / resource base via 50 well Appalachian basin drilling programme in 2008/09 • Proven undeveloped Reserve status (PUD) for undrilled locations (shallow and deep) surrounding each well. • Staged divestment of developed
Slide 4: Appalachian Basin – Largest USA onshore potential
Appalachian Basin – Largest USA For personal use only onshore potential • Oldest producing basin in U.S. • Long-life gas reserves • Huge potential • Proximity to markets • Renewed Interest • Increased infill and deeper drilling and horizontal wells • New Frac Technologies
Slide 5: Appalachian Basin, USA West Virginia and Kentucky Acreage
For personal use only Appalachian Basin, USA West Virginia Acreage Kentucky Acreage
Slide 6: P&J Resources Agreement
For personal use only P&J Resources Agreement • Access to 45,000 acres in Eastern Kentucky, 45,000 acres in western West Virginia under 10 year agreement (AMI) • Continuous drilling to earn 80% working interest • Turnkey well pricing • Each unit earned includes 4,000 foot radius spacing including se
Slide 7: Spacing unit and PUD locations
Spacing unit For personal use only Well Well • Each P & J well earns acreage within 4,000ft PUD radius spacing unit (8,000’ dia) • Includes 4x 4,000ft Well deep locations PUD PUD plus PUDs • PUD’s PUD included in reserve estimate Well Well
Slide 8: Infrastructure (P&J)
For personal use only Infrastructure (P&J) • 2 new amine plants installed (Ky. and W.V.) • 4 compressors • Completion May 08 • No cost to Emerald • Transmission costs approx $0.60/Mcf • Links to major lines operated by El Paso, Colombia, Jefferson, Chesapeake • All gathering lines in place
Slide 9: New Compressor (P.&J. Owned)
New Compressor (P.&J. Owned) For personal use only
Slide 10: Existing production
For personal use only Existing production • Shallow wells • Long life, +60 yrs! • Offset locations available • Deeper horizons untapped
Slide 11: Appalachian Pipeline Infrastructure
For personal use only Appalachian Pipeline Infrastructure • Interstate Pipeline options • Amine plants installed - Kentucky - W. Virginia • Pricing reference to TICO GPL T DTI price (Premium to H.Hub) W. Virginia Acreage • Gathering lines complete Kentucky Acreage - Expandable capacity TCO - Fixed c
Slide 12: Drilling program & Funding
Drilling program & Funding For personal use only • P&J providing 2 rigs for continuous drilling program • Emerald to commit to 50 well program • Emerald to drill mix of – Shallow – Deep vertical – Deep horizontal – Shale (vertical & horizontal) – Re-works • MOU signed with US investment fund Avanti
Slide 13: Greenbush Project North Dakota
Greenbush Project North Dakota For personal use only Location: Ward & Renville Counties North Dakota Objectives: Primary: Sherwood & Mohall Formation Carbonates Secondary: Kisbey sandstone & Devonian Reefal Carbonates, Bakken Shale (fractured) Well depth: 6200+ FT (MISS) 9000+ FT (DEV) Emerald inter
Slide 14: Greenbush Project North Dakota
Greenbush Project North Dakota For personal use only • Structural closure varies from 20 to over 40 vertical feet on some closures. A fractured Bakken shale playexists caused by intersection of two major fault trends within a portion of the acreage block. A potential Devonian Pinnacle Reef “build up
Slide 15: NW Alice Project, South Texas
NW Alice Project, South Texas For personal use only • Jim Wells County, South Texas • Objectives: Yegua Sands • Emerald interest: 10% WI in project • Royalties: 23% NRI: 77% • Reserve potential: - 100 Bcf gas, 2.5 million bbls condensate • Operator: Noble Energy • First well drilled March 07, discov
Slide 16: NW Alice Project area
For personal use only NW Alice Project area showing location of RJ Hunter #1 well offsetting the Delta-Gulf 1954 well. Large anticline structure under lease with potential for several well locations following 3D seismic interpretation. RJ Hunter #1 well location Delta-Gulf well drill in 1954
Slide 17: Australia - Canning Basin Acreage
Australia - Canning Basin Acreage For personal use only
Slide 18: Stokes Bay – well, EP104
Stokes Bay – 1 well, EP104 For personal use only Stokes Bay #1 well was deepened to the Nullara formation at 2,755m. Further testing July / Aug 08. Valentine #1 vertical well tested the Virgin Hills formation. P & A.
Slide 19: EP104 - Stokes Bay Prospect
EP104 - Stokes Bay Prospect For personal use only • Location: EP104, Canning Basin, WA • Objectives: All sands within Anderson formation / Nullara Carbonates • Emerald interest: 12.75% WI Royalties: 10% Government • Hydrocarbon potential: Top Deltaic member: 4.3 Mmbo Unit ‘A' Sand: 33.5 Bcf gas Unit
Slide 20: Canning Basin - EPA 4/05-6
For personal use only Canning Basin - EPA 4/05-6 • Location: EPA 4/05-6, Canning Basin, WA • Objectives: All sands within Anderson formation / Nullara Carbonates • Emerald interest: 100% • Royalties: 10% Government, 2% other • Hydrocarbon potential (Eve Rose Prospect): Top Deltaic member: 20 Mmbo Un
Slide 21: Drilling Program
Drilling Program For personal use only Project Emerald Emerald Timing Interest attributable potential resource (unrisked) * Appalachian Development – 80% Approx 0.4 Bcf per First well (acquired) hooked up continuous drilling upon well Deep well May 08 funding Commence ~50 well program upon funding *
Slide 22: Conclusion
For personal use only Conclusion To develop cashflow and reserves / resources in producing on-shore US Appalachian basin and establish positions in low risk onshore exploration assets in WA and the US • High potential gas development play • Developing cashflow + resource/reserve • Project level fund
Slide 23: Contacts
For personal use only Contacts • Office Address: Level 2, 16 Altona Street, West Perth WA 6005 • Phone: (+61 8) 9482 0510 • Fax: (+61 8) 9482 0505 • Web: www.emeraldoilandgas.com • Email: Bob Berven - Executive Director, Technical bberven@emeraldoilandgas.com John Hannaford - Executive Director, Fin
Slide 24: Thank you
For personal use only Thank you Disclaimer This presentation contains forward looking statements that are subject to risk factors associated with the oil and gas industry. It is believed that the expectation reflected in the statements are reasonable but they may be affected by a variety of variable
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