Carnarvon Energy Limited · ASX:CVN
Carnarvon Energy — Carnarvon Petroleum — Shareholder Meeting (November 2011)
25 slides from Carnarvon Energy's shareholder meeting presentation, Nov 18, 2011
Slide 1: AGM Presentation
AGM Presentation 18 November 2011 For personal use only ASX ANNOUNCEMENT Carnarvon Petroleum Limited (“Carnarvon”) (ASX:CVN) is pleased to provide shareholders with the attached AGM Presentation given by Mr Adrian Cook, Carnarvon Managing Director, at Carnarvon Petroleum’s Annual General Meeting, on
Slide 2: Annual General Meeting
For personal use only Annual General Meeting 18 November 2011
Slide 3: Contents
Contents For personal use only 1) Introduction 2) Overview of 2011 financial year (“FY”) 3) Production activities and plans 4) Other value drivers 5) Key priorities in 2012 6) Conclusion and questions 2
Slide 4: Introduction: Asset portfolio and company ownership
Introduction For personal use only Asset portfolio ü High equity interests ü 10 million acres ü In three countries Company ownership ü 19% held by institutional shareholders ü 11% held by directors and management ü No significant holdings (namely over 5%) 3
Slide 5: Introduction: 2011 FY activities
Introduction 2011 FY activities For personal use only ü Produced 731,544 bbls ü Drilled 2 wells in L20/50 ü Drilled the Tuatara well, New Zealand ü Drilled 22 wells in L44/43 & L33/43 ü Acquired seismic in Thailand, Indonesia & Australia • 1,290 km of 2D seismic • 1,160 km2 of 3D seismic 4
Slide 6: 2011 FY overview
2011 FY overview For personal use only 2011 FY 2010 FY Earnings summary ($’m) ($’m) Oil sales $55m $64m § Oil price steady Cost of sales (“CoS”) ($19m) ($21m) § Production down 16% Administrative costs ($5m) ($5m) § CoS carried capacity Unrealised foreign ($4.5m) ($0.5m) for higher production exchan
Slide 7: 2011 FY overview: Cash flow summary
2011 FY overview For personal use only Cash flow summary 2011 FY 2010 FY ($’m) ($’m) § Oil receipts impacted by Oil receipts $62m $71m production Payments to ($24m) ($24m) § Field costs steady on suppliers & retained capacity for employees higher production Taxes ($15m) ($15m) § Tax payments include
Slide 8: 2011 FY overview: Cash flow summary (cont.)
2011 FY overview For personal use only Cash flow summary (cont.) 2011 FY 2010 FY ($’m) ($’m) L44 Exploration OCF $23m $32m § 22 wells, inventory and (from previous page) development costs L44 exploration ($20m) ($29m) Other Exploration and development § Two L20/50 wells (Thailand) Other exploration
Slide 9: Positives of onshore Thailand
Production activities and plans For personal use only Positives of onshore Thailand § Hydrocarbons present § Low operating costs § Low cost drilling § Easily scalable operations § World class operating environment § Stable fiscal terms § High margin operations (500 bopd well pays back in ~ one month
Slide 10: Natural field decline
Production activities and plans Natural field decline (“NFD”) For personal use only § Wells are impacted by NFD & subsequent water incursion § Water flows preferentially to oil thereby accelerating NFD § JV has a history of successfully replacing NFD § 2011 drilling in the WBEXT area didn’t replicat
Slide 11: WBEXT focus in FY 2011
Production activities and plans WBEXT focus in FY 2011 For personal use only § In 2011 nearly 2/3 thirds of rig time was in the WBEXT region § Why - 3 wells flowed between 3,500 & 5,300 bopd § Two more wells in the north flowed at 1,100 & 2,300 bopd § Discovered and appraised new sandstone oil field
Slide 12: Forward Plans
Production activities and plans Forward Plans For personal use only Sandstone – greater stability and longevity § Drill 10-15 WBEXT dedicated sandstone wells § Wells expected to produce ~100 to 300 bopd gross § Preparing to commence development in Q1 of 2012 Volcanic – high flow, fast payback, high
Slide 13: L20/50 asset – Thailand
Other value drivers L20/50 asset – Thailand For personal use only 3D seismic required to better delineate fault terraces Complex faulting on basin margin: good potential for structural closures W E Migration from depocentre § 2 wells drilled in 2011 achieved their minimum objectives § Identifying re
Slide 14: L20/50 Concession - Thailand
Other value drivers L20/50 Concession - Thailand For personal use only The time line above is indicative only 13
Slide 15: L52/50 & L53/50 asset – Thailand
Other value drivers L52/50 & L53/50 asset – Thailand For personal use only Early stage exploration § Close proximity to prolific offshore basins in the Gulf of Thailand § Under-explored basin § With few valid well tests § Surface geological and structural mapping completed in 2010 § Currently acquir
Slide 16: L52/53 & L53/50 Concessions - Thailand
Other value drivers L52/53 & L53/50 Concessions - Thailand For personal use only The time line is indicative only 15
Slide 17: Rangkas PSC – Indonesia
Other value drivers Rangkas PSC – Indonesia For personal use only Valid traps + good source + multiple staked play types § Pertamina discovered oil nearby (2007-10), flowed up to 3,000bopd § 500 km Rangkas 2D seismic acquisition completed on 1 April 2011 § Geophysical mapping has identified some 15
Slide 18: Rangkas PSC - Indonesia
Other value drivers Rangkas PSC - Indonesia For personal use only 17
Slide 19: Phoenix asset – Western Australia
Other value drivers Phoenix asset – Western Australia For personal use only material interests + large acreage + discovered gas § Prospects of ~2.5 Tcf (recoverable gas) The “Phoenix” asset refers to Carnarvon’s 50% interest in the WA-435-P, WA-436-P, § Water depths of ~140m WA-437-P and WA-438-P Pe
Slide 20: Phoenix asset – Western Australia
Other value drivers Phoenix asset – Western Australia For personal use only 3D seismic clearly showing key structures 19
Slide 21: Phoenix asset – Maximise shareholder value
Other value drivers in the business Phoenix asset – Maximise shareholder value For personal use only Maximise Value Explore and Other Develop Options Asset Domestic Liquids LNG Feed Domestic Asset LNG Project realisation Gas Stripping Supply Gas Swaps Swaps (all or part) • Strong interest in farmout
Slide 22: Phoenix asset – Western Australia
Other value drivers Phoenix asset – Western Australia For personal use only The “Phoenix” asset refers to Carnarvon’s 50% interest in the WA-435-P, WA-436-P, WA-437-P and WA-438-P Permits and its 100% interest in the WA-443-P Permit The time line above is indicative only 21
Slide 23: Key priorities in 2012 CY
Key priorities in 2012 CY For personal use only 1. Drill 10-15 sandstone reservoir wells (Thailand) § Objective – increase the level of stable production 2. Trial new production technologies (Thailand) § Objective - improve production & reduce volatility 3. Drill high impact volcanic reservoir wells
Slide 24: Conclusion and Questions
Conclusion and Questions For personal use only Phoenix 2012 Increasing regional focus (eg: WPL) Buoyant LNG & domgas markets New 3D data Discovered gas Potential Value L44 Phoenix L44 Volcanic 2009 Volcanic with Entry 2010 Technology L44 Sandstone Development Plan & Production 2012 L44 Volcanic 2011
Slide 25: 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
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