Pantheon Resources Plc · LSE:PANR
Pantheon Resources — Investor Presentation (December 2009)
30 slides from Pantheon Resources's investor presentation, Dec 15, 2009
Slide 1: Corporate Presentation
Corporate Presentation 15 December 2009
Slide 2: Disclaimer
Disclaimer THESE PRESENTATION MATERIALS ARE FOR INFORMATION PURPOSES ONLY AND DO NOT CONSTITUTE AN OFFER OR INVITATION TO SUBSCRIBE FOR OR PURCHASE ANY SECURITIES, AND NEITHER THE PRESENTATION MATERIALS NOR ANYTHING CONTAINED THEREIN NOR THE FACT OF THEIR DISTRIBUTION SHALL FORM THE BASIS OF OR BE R
Slide 3: Summary
Summary Tyler County considered proven as a development play by operator. Up to 50 wells may be drilled across the 30,000 gross acres. First well confirmed existence of Austin Chalk and petroleum system. Upside potential in Austin Chalk from higher average reserves per well and increased liqui
Slide 4: Tyler County Project- Austin Chalk
Tyler County Project- Austin Chalk Partners Regional Context. Location Maps. Pantheon JV Acreage. VRU#1 Well Review. Upside Potential. 4
Slide 5: Partners in Tyler County JV
Partners in Tyler County JV Company Working Comments Interest Vision Resources LLC (operator) 37.5% Private company. Long term presence in East Texas. Majority owned by George Kaiser. Kaiser Francis Oil Company 25.0% Private company. Owned by George Kaiser. “Amongst world’s biggest private energy pr
Slide 6: Regional Context – Proven Hydrocarbon Basin
Regional Context – Proven Hydrocarbon Basin Brookeland field has produced for over 20 years. Austin Chalk directly above source rock. Whole area hydrocarbon charged. 6
Slide 7: Location Map
Location Map Pantheon’s Tyler County Venture Southern US Producing Basins and Trends Map 7
Slide 8: JV Acreage Position
JV Acreage Position Vision-No.2 LP Vision-No.1 Ergon-No.1 Ergon-No.1 Well Rice Rice Well Ratcliff Well Double A Wells Field 8
Slide 9: Tyler County Acreage
Tyler County Acreage Production from Austin Chalk adjacent to JV acreage. Historic vertical wells drilled on JV acreage were targeted at deeper horizons but proved existence of Austin Chalk. Prolific Ergon Ratcliff and Ergon Rice wells both offset JV acreage. Since farm-in in May 2008, Brook
Slide 10: Analysis of VRU #1 - Success
Analysis of VRU #1 - Success Proven petroleum system on acreage. Natural gas, condensate and oil flowed to surface. Acreage now considered as a proven development project by operator. Appears connected to deeper Austin Chalk down-dip. Indicative of much larger drainage area. Rubble zones typ
Slide 11: Analysis of VRU #1 - Issues Encountered
Analysis of VRU #1 - Issues Encountered Pressures encountered greatly exceeded well design parameters. Existence of the unconsolidated rubble zone not anticipated. Caused well bore blockages. Caused time overruns from scheduled 75 days to nine months. Caused cost overruns . Ultimately le
Slide 12: Analysis of VRU #1- Positive Attributes from High Pressure and Rubble Zone
Analysis of VRU #1- Positive Attributes from High Pressure and Rubble Zone Expected to deliver production rates in upper tier of Austin Chalk producers. Has led to estimates of gross reserve per well increasing by 60% from 5 bcfe to 8 bcfe.* Potential for future cost savings with drilling fewe
Slide 13: Flare at VRU#1 Presence of Hydrocarbons
Flare at VRU#1 Presence of Hydrocarbons 13
Slide 14: Rubble Zone Enhances permeability and porosity
Rubble Zone Enhances permeability and porosity 14
Slide 15: Austin Chalk - Upside Potential
Austin Chalk - Upside Potential Average JV reserve estimates of 8 bcfe per well potential may be exceeded. VRU#1 shows similarities to down-dip Giddings Field (Austin Chalk) wells. Average down-dip Giddings wells >10 bcfe per well. Pantheon’s JV acreage is down-dip portion of the Brookeland
Slide 16: Illustrative Individual Well NPV ($USD) Austin Chalk
Illustrative Individual Well NPV ($USD) Austin Chalk Pricing Sensitivities* NPV10 US$ million based on average Chalk well gross bcfe (Pantheon 25% working interest) 5 8 20 US$4 per mcf natural gas and US$65 per bbl 1.5 3.5 11.4 oil Forward Curve 3.0 6.0 17.8 Forward Curve Minus 3.8 4.9 15.0 US$1 per
Slide 17: Illustrative Individual Chalk Well Production Profile
Illustrative Individual Chalk Well Production Profile Very high initial production = early cash flow AUSTIN CHALK 8 BCF WELL GROSS PRODUCTION PER DAY 35,000 30,000 25,000 20,000 MCFD 15,000 10,000 5,000 - Month 1 Month 4 Month 7 Month 10 Month 13 Month 16 Month 19 Month 22 Month 25 Month 28 Month 31
Slide 18: Illustrative Individual Austin Chalk Well Cash Flow
Illustrative Individual Austin Chalk Well Cash Flow* AUSTIN CHALK - TYPICAL 8 BCF CASE PRE-TAX CUMULATIVE CASH FLOW 8 Net to Pantheon AFTER Royalties, Prodn taxes, Op Cost & Capex 6 4 $MM 2 0 -2 -4 Month 2 Month 5 Month 8 Month 11 Month 14 Month 17 Month 20 Month 23 Month 26 Month 29 Month 32 Month
Slide 19: Tyler County Project- Upside Potential in Woodbine
Tyler County Project- Upside Potential in Woodbine Introduction Woodbine Regional Context Location Map 19
Slide 20: Woodbine - Introduction
Woodbine - Introduction Formed part of original farm-in of May 2008. Woodbine is an independent and totally separate play from Pantheon’s Austin Chalk project. Sits directly below Austin Chalk target. Existing Woodbine fields are generally prolific producers. Austin Chalk remains primary t
Slide 21: Woodbine Regional Context
Woodbine Regional Context East Texas and Double A Wells fields are both producing from Woodbine (see map ). East Texas field reserves 5,400 mmboe (see map). Double A Wells field around 90 mmboe (reserves>500 bcfe). Approx. six miles from Pantheon’s acreage. Ultimate recovery average > 20 b
Slide 22: Tyler County - Woodbine
Tyler County - Woodbine Reservoir/Geology Geologically complex. Woodbine situated immediately below (ca. 500ft) Austin Chalk zone. Sandstone reservoir with extremely high flow rates and recoveries. Woodbine zone proven to exist on Pantheon’s acreage Vision LP#2 (pre-farm in) well is curr
Slide 23: JV Acreage Position
JV Acreage Position Vision-No.2 LP Vision-No.1 Ergon-No.1 Ergon-No.1 Well Rice Rice Well Ratcliff Well Double A Wells Field 23
Slide 24: Illustrative Woodbine Potential NPV10 Upside Net to Pantheon
Illustrative Woodbine Potential NPV10 Upside Net to Pantheon* Single well financial analysis indicates major potential Pricing Sensitivities NPV10 US$ million Pantheon 25% working interest based on Woodbine gross bcfe 6 18 30 US$4 per mcf natural gas US$2.7 US$10.7 US$19.3 and US$65 per bbl oil Fo
Slide 25: Tyler County – Future drilling programme
Tyler County – Future drilling programme Second location identified. Targeting both Austin Chalk – primary target. Woodbine – secondary target. Offsets Vision’s existing and producing LP#2 well on JV acreage. Future wells now engineered for the encountered high pressure/rubble zone condi
Slide 26: Planned New Well Design Engineered for Revised Conditions
Planned New Well Design Engineered for Revised Conditions Item New VRU#1 Casing (inches) 13 , 9 , 7 10 and 7 Drill pipe 5 inches to top of 7 4 inch in 7 liner Unconsolidated 7 set within upper chalk isolating 7 set above chalk above this zone Fracture this zone Directions Drilling Mo
Slide 27: Illustrative Purposes Only - Corporate NPV10 Based on Tyler County Austin Chalk Only
Illustrative Purposes Only - Corporate NPV10 Based on Tyler County Austin Chalk Only The following figures are presented for illustrative purposes only and should not be taken as management’s view of the true underlying value of the company. Any figures should be viewed in conjunction with the a
Slide 28: Model Assumptions
Model Assumptions Austin Chalk success case only. Includes corporate overheads, operating costs, production tax and royalties (21%). Bullseye modelled on existing wells. Excludes Woodbine. Pantheon working interest 25% (NRI 19.75%) in Austin Chalk. Gross reserves of eight bcfe per well dri
Slide 29: Base Oil and Natural Gas Price Assumptions
Base Oil and Natural Gas Price Assumptions Using forward curves for oil and US natural gas prices estimated and provided by financial institution. Year Oil Natural gas US$ per barrel US$ per mcf 2009 79.50 4.50 2010 75 5.50 2011 80 6.50 2012 85 7.00 2013 90 7.30 flat nominal thereafter flat nomina
Slide 30: Full Cycle Corporate NPV10 Sensitivities Tyler County Austin Chalk
Full Cycle Corporate NPV10 Sensitivities Tyler County Austin Chalk For Illustrative Purposes Only Pricing Scenario NPV10 US$ million based on average Chalk well Gross Bcfe 5 8 20 US$4 per mcf gas/US$65 oil $15 $65 $263 per barrel flat Forward curve* $63 $142 $455 Forward curve* Less US$1 per $46 $11
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