Melbana Energy Limited · ASX:MAY
Melbana Energy — Investor Presentation (May 2015)
29 slides from Melbana Energy's investor presentation, May 2015
Slide 1: Investor Presentation May 2015
Investor Presentation May 2015
Slide 2: Disclaimer I
Disclaimer I Forward-looking Statements and Resources Summary of information: This presentation contains general and background information about MEO’s activities current as at the date of the presentation and should not be considered to be comprehensive or to comprise all the information that an in
Slide 3: Disclaimer II
Disclaimer II Risks associated with an investment in MEO Since the Mosman Announcement Date, the MEO Share price has fluctuated between $0.025 and $0.012, and closed at $0.014 on 23 February, being the last practicable date prior to the finalisation of the MEO Target's Statement. If the Mosman Offer
Slide 4: Company Overview
Company Overview • Independent ASX-listed oil and gas company • High impact portfolio of projects in Australia, NZ and potentially Cuba • Revamped Strategy under new MD focused on risk managed exploration and strict financial discipline • Material near term news flow in Cuba and Australia/NZ ASX: ME
Slide 5: People, Investment Highlights & Strategy
People, Investment Highlights & Strategy 5
Slide 6: Board & Management
Board & Management New leadership under MD Peter Stickland Board of Directors Greg Short Peter Stickland Stephen Hopley Non-Executive Managing Director Non-Executive Chairman & CEO Director Senior Team Colin Naylor Robert Zammit Errol Johnstone Dean Johnstone CFO & Exec Manager – Chief Geoscientist
Slide 7: Investment Highlights
Investment Highlights Revitalised business and refocused strategy under new leadership High impact and undervalued exploration asset portfolio Material near term value drivers from Australian & NZ assets Long term potential value from Tassie Shoals project Pre-qualified Operator in multiple internat
Slide 8: Focused Strategy
Focused Strategy Fresh leadership, focused on managing costs & delivering value Key Pillars Strict Risk Rapid Leverage Strong core financial managed expansion quality competencies discipline approach to of Cuban existing of MEO across exploration portfolio portfolio team organization 8
Slide 9: Immediate Action Taken
Immediate Action Taken Reshaped and refocused business under new MD Peter Stickland Key actions Exit Blackwood (NT/P68) as part of portfolio discipline Vary permit commitments to provide greater flexibility Farming down equity stake in WA-488-P from 100% to 70% (see slide 13) Reducing overheads by 6
Slide 10: Australian & NZ Asset Portfolio
Australian & NZ Asset Portfolio 10
Slide 11: Portfolio Overview
Portfolio Overview Diverse, high impact portfolio MEO Net Resources 1,355 1,400 AC/P51 WA-488-P WA-454-P NT/P68 • Over 1.3 billion barrels of oil equivalent Million Barrels of Oil Equivalent (MMboe) 1,200 prospective resources (unrisked) 1,000 • 9 Australian/NZ exploration permits 800 • Tassie Shoal
Slide 12: Northern Australia Acreage
Northern Australia Acreage Discrete upstream projects adjacent to proven hydrocarbons ABADI GREATER SUNRISE BAROSSA EVANS SHOAL Joint Petroleum BLACKWOOD CALDITA Development N T/P 6 8 HERON Area BAYU-UNDAN Tassie Shoal Projects TSMP 2 TSMP TSLNG 1 A C/P 5 3 (MEO 100%) A C/P 5 0 (MEO 100%) MONTARA A
Slide 13: WA-488-P (MEO 70%): Beehive Prospect
WA-488-P (MEO 70%): Beehive Prospect Giant Beehive dual objective oil prospect • Shallow water, suitable for lower cost jack-up drilling rig Darwin • Farmout to Rex International Holding defines potential path to funding PETREL - 30% working interest FRIGATE TERN - Provision to increase equity by fu
Slide 14: WA-454-P (MEO 50%): Breakwater Prospect
WA-454-P (MEO 50%): Breakwater Prospect MEO partly carried. Aiming to farm down to cover well cost Farmed out 50% to Origin in 2013 for: Darwin Gulf of Mexico - $5.6m cash PLUS style Salt dome Plays - 80% of Breakwater-1 (~A$35m well cost cap) PETREL FRIGATE • Multiple prospects, near existing infra
Slide 15: NT/P68: Blackwood & Heron Gas Accumulations
NT/P68: Blackwood & Heron Gas Accumulations MEO focusing on 100% retained interest in Heron field Heron gas discovery (MEO 100%) EVANS SHOAL • Heron-2 (2008) flowed gas at 6 MMscfd Evans Shoal North-1 , BLACKWOOD , Evans Shoal-2 • Heron South-1 (2012) intersected 131 metres Blackwood Area Evans Sho
Slide 16: Tassie Shoal Projects (MEO 100%)
Tassie Shoal Projects (MEO 100%) Shallow water, low cost development paths for regional stranded gas • Methanol: 2 x 1.75MTA plants, built in two stages (TSMP1 & TMSP2) Tassie Shoal Projects TSMP2 • LNG: 3MTA LNG plant (TSLNG) • Federal & State Government TSLNG TSMP1 Environmental approvals in place
Slide 17: Tassie Shoal Projects
Tassie Shoal Projects Commercial framework progressing to support commercialisation Methanol TSMP2 • Offtake Letters of Intent signed with three multinational buyers • Indicative purchase offers made at US$3.15MMBTU to purchase raw gas (including CO2) TSMP1 TSLNG LNG • Significant cost advantage of
Slide 18: AC/P50 & AC/P51 (MEO 100%): Ramble On Prospect
AC/P50 & AC/P51 (MEO 100%): Ramble On Prospect Multiple oil targets in proven petroleum system • Suitable for lower cost jack-up drilling rig • Ramble On and Jur’maker oil prospects identified in proven petroleum system defined on modern 3D seismic data • Permits recently renewed for 5 year term wit
Slide 19: New Zealand: Onshore Production & Exploration
New Zealand: Onshore Production & Exploration PEP51153 (MEO 30%) • Puka oil accumulation Puka - Produced at 110-115 barrels/day under long term test PEP 51153 before shut-in January 2015 due to mechanical Waihapa problem and low oil price • Exploration potential Shannon Prospect - Shannon prospect i
Slide 20: Cuba
Cuba MEOAustralia
Slide 21: Why Cuba?
Why Cuba? MEO has early mover advantage • Cuba has excellent oil & gas prospectivity - Currently producing ~70,000 boe per day - Varadero field: >5 billion barrels OOIP • Limited application of modern exploration techniques • Improving geopolitical environment and US diplomatic relations • Attractiv
Slide 22: Early Mover Advantage
Early Mover Advantage MEO has unique opportunity in Cuba MEO is the only ASX listed company with Cuban energy exposure MEO has pre-qualified with Cupet (NOC) as an onshore/shallow water operator Strong Cuban relationships/networks in place based on 3 year engagement Well positioned to capitalise on
Slide 23: Cuba Block 9: Positioning and Value Drivers
Cuba Block 9: Positioning and Value Drivers Oil rich area with low upfront commitment Positioning • MEO has agreed terms for entry to an onshore exploration PSC in the Republic of Cuba • Award of Block 9 PSC (MEO 100%*) is subject to final regulatory approval (anticipated Q2 ’15) • Block 9 lightly e
Slide 24: Corporate & Activity Pipeline
Corporate & Activity Pipeline 24
Slide 25: Funding Overview
Funding Overview Healthy cash position – geared for growth Modest firm committed exploration program Corporate overheads reduced to Cash balance at end ~A$2.5m/year of March 2015 of A$7.2m 25
Slide 26: Mosman Unsolicited Takeover Offer
Mosman Unsolicited Takeover Offer Directors Recommendation to MEO Shareholders: REJECT Why: • Mosman has limited cash and its ability to continue as a going concern is uncertain - It has only conducted a small capital raising since announcing the original offer and its cash position is compounded by
Slide 27: MEO Activity Pipeline
MEO Activity Pipeline Actively managing program to optimise value 2015 2016 2017 Permit Activity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 New Zealand (PEP 51153) • Joint Farmout Process • Potential Shannon-1 drilling Breakwater (WA-454-P) • Farmout Well Timing Uncertain • Breakwater-1 Drilling Beehive (W
Slide 28: Summary and Conclusion
Summary and Conclusion • Revitalised business and refocused strategy under new leadership • High impact and undervalued exploration asset portfolio • Pre-qualified in multiple international jurisdictions • Unique Cuban Leverage with early mover advantage • Material near term value drivers from Austr
Slide 29: Appendix – MEO Group Assets
Appendix – MEO Group Assets MEO Group Country Location Permit equity Status New Onshore Taranaki PEP 51153 30% Production/appraisal/exploration Zealand Australia Bonaparte Gulf WA-454-P 50% Appraisal/exploration Australia Bonaparte Gulf WA-488-P 70% Exploration Australia Vulcan Sub-Basin AC/P50, 100