Carnarvon Energy Limited · ASX:CVN
Carnarvon Energy — Carnarvon Petroleum — Macquarie Securities Australia and New Zealand Corporate Day (September 2011)
30 slides from Carnarvon Energy's conference presentation, Sep 1, 2011
Slide 1: Corporate Presentation - ASX Announcement
Corporate Presentation 1 September 2011 For personal use only ASX ANNOUNCEMENT Carnarvon Petroleum Limited (“Carnarvon”) (ASX:CVN) is pleased to provide shareholders with the attached Corporate Presentation given by Mr Adrian Cook, Carnarvon Managing Director, to investors in Hong Kong and Singapore
Slide 2: Investor Presentation September 2011
For personal use only Investor Presentation September 2011
Slide 3: Disclaimer
Disclaimer The information in this document, that relates to oil exploration results and reserves, is based on information compiled by the Company’s Chief For personal use only Operating Officer, Mr Philip Huizenga, who is a full-time employee of the Company. Mr Huizenga consents to the inclusion of
Slide 4: Corporate Overview
For personal use only Corporate Overview 3
Slide 5: Corporate Strategy & Overview
Corporate Strategy & Overview Our strategy is to build a profitable company, from a diversified portfolio of exploration & production assets, For personal use only which creates value for our shareholders over the long term Carnarvon currently has low cost, high margin, oil production in Thailan
Slide 6: Performance and Track Record
Performance and Track Record For personal use only Develop plan for Production from fractured volcanic reservoirs in Thailand continues to be highly variable sandstone reservoir Production Carnarvon has converted reserves to production historically, recent production volatility Continue to d
Slide 7: Thailand Production Asset
For personal use only Thailand Production Asset 6
Slide 8: Overview
Overview For personal use only L44/43 and L33/43 Concessions reside in a highly prospective basin in Thailand Oil is present in most wells drilled. Flow rates vary significantly - 2011 financial year high of 15,000 bopd field capacity. - 2011 financial year low flow rate of 2,500 bopd. Low cos
Slide 9: 2P Reserves – analysis by field (net to CVN)
2P Reserves – analysis by field (net to CVN) Reserves are diversified across multiple producing fields For personal use only Reserves are also contained in volcanic and sandstone reservoirs 4.7 mmbbls proved (1P); 20.4 mmbbls proved and probable (2P); and 51.9 mmbbls proved, probable and possi
Slide 10: Production
Production For personal use only Oil is present in low cost, highly scalable operations Production variability will always exist in fractured volcanic reservoirs 9
Slide 11: Exploration Portfolio
For personal use only Exploration Portfolio 10
Slide 12: Phoenix – Western Australia
Phoenix – Western Australia For personal use only Significant value potential with material interests, large acreage & discovered gas Carnarvon holds substantial interests in 5 key Permits covering the Bedout Sub-basin north of Port Hedland. The 5 permits cover a significant 28,300km2 containing
Slide 13: Phoenix – Western Australia: Bedout Sub Basin
Phoenix – Western Australia For personal use only Bedout Sub Basin The time line above is indicative only 12
Slide 14: Phoenix – Western Australia
Phoenix – Western Australia The Phoenix asset has the potential to generate material value for shareholders and with a For personal use only high level of interest in the asset, value may occur sooner than planned. Gas discovered at Phoenix 1 & 2 wells by BP in 1980 and 1982 respectively New dat
Slide 15: Rangkas PSC - Indonesia
Rangkas PSC - Indonesia Part of a very productive NW Java Basin For personal use only Indonesia 14
Slide 16: L20/50 Concession - Thailand
L20/50 Concession - Thailand Same basin as the prolific 200mmbbl Sirikit field For personal use only Thailand L20/50 50% The time line above is indicative only 15
Slide 17: L20/50 Concession - Thailand
L20/50 Concession - Thailand For personal use only The presence of a working petroleum system has been de-risked by geochemical analyses of samples from recent wells Potentially good source rocks were penetrated by both Krai Thong-1 and Tapao Kaew-1 wells with oil-mature organic matter in the ba
Slide 18: L52/50 & L53/50 Concessions - Thailand
L52/50 & L53/50 Concessions - Thailand Early phase exploration in an under-explored basin close to successful offshore fields For personal use only Thailand L52/50 & L53/50 50% The time line is indicative only 17
Slide 19: L52/50 & L53/50 Concessions - Thailand
L52/50 & L53/50 Concessions - Thailand For personal use only Under-explored basin Close proximity to prolific offshore basins in the Gulf of Thailand Surface geological and structural mapping completed 2010 Currently acquiring new 2D seismic to infill sparse 1988 vintage data Few valid wel
Slide 20: Conclusion
For personal use only Conclusion 19
Slide 21: Conclusion
Conclusion For personal use only Management’s priorities: Steadily improve the base production from sandstone reservoirs (L44/43 & L33/43 Concessions, Thailand). Continue drilling high flowing volcanic reservoirs (L44/43 & L33/43 Concessions, Thailand). Farm-out Phoenix asset to accelerate the
Slide 22: Annexure of Supplementary Material
For personal use only Annexure of Supplementary Material 21
Slide 23: Broker's perspectives
Broker’s perspectives For personal use only Brokers see significant upside from the current share price – initially as a production turnaround situation then from exploration Potential catalysts identified for a share price rerate include — Strong results from Thailand volcanic reservoir focused d
Slide 24: Share Price Performance
Share Price Performance For personal use only 23
Slide 25: Shareholder base
Shareholder base For personal use only Beneficial share register analysis Carnarvon has a predominantly retail investor base with almost 10,000 shareholders Investor 30 Jun 11 Directors/Employees/Related Parties 10.9% Whilst there are a number of high quality institutions on Blackrock 2.5% the r
Slide 26: Fractured Reservoirs in Thailand
Fractured Reservoirs in Thailand For personal use only Example well production from L33, L44 & SW1A contain multi layered oil filled L44 fractured reservoir fractured reservoirs Massive lost circulation – no returns over Flush reservoirs production Heterogeneous nature of fracturing means indi
Slide 27: WBEXT Area in Thailand
WBEXT Area in Thailand For personal use only Multiple, stacked pay zones in volcanic and sandstone reservoirs Multiple fault compartments that require a large number of wells to define reserves Recent successes resulting in excellent flow rates Highest flow from sandstone of 550 bopd from WB
Slide 28: Thailand's SRB Explained
Thailand’s SRB Explained For personal use only Sliding scale 0% to 75% on profit before income tax Thailand III regime Designed to tax ‘excessive profits’ Applied to each concession area Source: Hartley's, Department of Mineral Fuels, Thailand Paid annually SRB Rate Sliding scale from 0% t
Slide 29: Thailand's Royalty Explained
Thailand’s Royalty Explained Sliding scale 5% to 15% on profits before SRB and income tax For personal use only Local Sub • Thailand III regime Royalty Distribution District 20% • Royalty is applied over each concession area Ministry of Finance • Sliding scale from 40% 5% to 15% based on production
Slide 30: For personal use only
For personal use only Ground Floor 1322 Hay Street West Perth WA 6005 Telephone: +61 (8) 9321 2665 Fax: +61 (8) 9321 8867 www.carnarvon.com.au