Karoon Energy Ltd · ASX:KAR
Karoon Energy — Karoon Gas Australia — Shareholder Meeting (November 2006)
27 slides from Karoon Energy's shareholder meeting presentation, Nov 3, 2006
Slide 1: Karoon Gas Australia
' Karoon Gas Austtalis
Slide 2: NNN
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Slide 3: Karoon Snapshot
Karoon Snapshot a) QO a QO Listed on the ASX on the 8th of June 2004. Approximately 93.4 million shares and 7 million options. Market Capitalization approximately AS208 million (@A$2. 10 share price) Cash in the bank after farmout and fundraising is $A45 million. Browse Basin Acreage(100% Market cap
Slide 4: Key Personnel
Key Personnel Robert Hosking Executive Chairman Founding Director of Karoon Gas with 30 years of commercial experience. Involved in the oil and gas industry for ten years. Founding director of Nexus Energy. Mark Smith Executive Director and Exploration Manager 26 years experience as a geologist and
Slide 5: WA-314-P & WA-315-P Setting
_WA-314-P &WA-315-P_ _Setting Argus Gas/condensate field 2tcf ? Inpex plans to spend US$6 billion on LNG development {77 7 Woodside plans to spend US$20 billion on LNG development Brewster/Dinicthys Gas/condensate field 9.5tcf + Scott Reef / Brecknock giant 312mmbis condensate Gas/condensate fields
Slide 6: WA-314-P & WA-315-P Farmout
WA-314-P & WA-315-P Farmout Karoon Gas Australia Ltd has entered into agreements to farm out up to a 60% interest in its Browse Basin permits, WA 314 P and WA 315-P, to the ConocoPhillips Group subsidiary company, ConocoPhillips SH2 Ply Lid. Acquisition of 51% Interest Pursuant to the agreements the
Slide 7: WA-314-P & WA-315-P Farmout Impact
WA-314-P & WA-315-P Farmout Impact The farmout to Conoco Phillips positions Karoon as highly leveraged small player in the rapidly expanding global LNG business, now having; A very significant acreage and equity position Australia’s prolific Browse Basin. A joint venture with enormous reserves poten
Slide 8: WA-314-P & WA-315-P Permit conditions
WA-314-P & WA-315-P Permit conditions : Minimum Guaranteed Work Program for each permit WA-314-P and WA-315-P_ Permit Year Permit Year Starts Permit Year Ends Minimum Work Requirements Estimated Expenditure Constant Dollars (indicative AS only at time of award) Primary Term Secondary Term First 42-N
Slide 9: WA-314-P & WA-315-P 2D mapping results
WA-314-P & WA-315-P _ 2D mapping results 350000 eono0 370000 L L 380000 — 330000 ~~ 400000 NT 9 ! Lou %, 410000 ~~ 420000 ~~ 430000 ~~ 440000 1 il n n 1 L 1 sia Seven large high relief TP prospects with areas ranging from 60 to 350 square km. The same play type as Scotit- Reef immediately to the sou
Slide 10: WA-314-P & WA-315-P seismic dip line
14-P &WA-315-P a ee lay eT es Seismic dip line NW-SE. w/ indicative gas columns "aroon Gas Australia
Slide 11: WA-314-P & WA-315-P New 2D & 3D Seismic surveys
WA-314-P & WA-315-P — New 2D & 3D Seismic surveys -31 UDB The seismic program was designed to provide a range “| of options for the planned 2 well drilling program . High graded Prospects to date are: *Prospect-A *Updip Buffon and *Prospect-D Prospect-A UDB, 3D acquisition completed 1° Jan 06 with d
Slide 12: WA-314-P & WA-315-P Potential reserves
/WA-314-P & WA-315-P__ | Potential reserves: Karoon Gas Australia Le: Browse Basin Reserves Potential Exploration Permits WA-314-P & WA-315-P Totals here include extensions outside the permits. Gas In Place Gas Recoverable Condensate Most Likely High Case Water Prospect Risk Most High Most High Low
Slide 13: WA-314-P & WA-315-P Comparisons
/WA-314-P & WA-315-P___—_— Comparisons_ WA fields reserves Vv Karoon’s exploration prospects ; Seudwyn hast FB | Ravers Demmeeie ™ ii Woodside’s Northwest Shelf Project a. ic ro WA PRODUCING FIELD RESERVES (Source; WA DOIR) VOLUMES TCF GAS & MMBL CONDENSATE 10 100 1300 Focea PerseusVWA-T-L = t 1 Nor
Slide 14: WA-314-P & WA-315-P The Buffon-1 Story
Slide 15: WA-314-P & WA-315-P 3D results
WA-314-P & WA-315-P 3D results | Greatly increased resolution at all levels. / _ Now able to better differentiate the varying. volcanic and Plover reservoir interval i) ; relationships across the structures. Reservoir =< _ (volume and distribution) Was recognized as _ one of the key risks that the 3
Slide 16: WA-314-P & WA-315-P 3D results
WA-3 14-P & WA-31 5-P 3D results Top Voleanics to Base Volcanics amplitude sum __ ae ARG earth We Highly variable seismic character indicates a wide ~ range in expected — ) volcanics asseenin __ Buffon-1 to, for example, interbedded volcanics and reservoir as seen in theScott Reef field This is an a
Slide 17: WA-314-P & WA-315-P Prospect examples
'WA-314-P & WA-315-P —— Prospect examples Prospect D Co) is / or Ce Cases Most likely {P50} High case {P10} Oo Prospect D Le Water depth {m) 480 480 430000 440000 Top depth{mss} 4440 4440 f 4 lores: : Spill point {mss} 4660 AGE Trap height {mj 220 220 Area {Kim sq.} 132.6 7232.6 GRY (m*} 7 .O738E +0
Slide 18: WA-314-P & WA-315-P Prospect examples
'WA-314-P & WA-315-P Prospect examples _ _ SCOTT REEF FIELD | _KAROON’S ProspectD Nth Scott Reef-1 Lead D is the closest analog to the Scott Reef eld D Prospect mapping and comparison with Scott Reef
Slide 19: Supply and demand setting
‘Supply and demand setting Worldwide reducing discovery siz Asia a Pacific Demand Forecasts to 0204 an J. oN pot Binoty LNG (mtpa) Forecast Bats ‘ate som panies currently positioned to take advantage of this situation: will ie Karoon Gas benefi it greatly. ; : Australia
Slide 20: WA-314-P & WA-315-P Analog economic cases
WA-314-P & WA-315-P Analog economic cases Conoco-Phillips et. al. Undan-Bayu Gas-Condensate field - Darwin LNG Plant. Estimated reserve is 3.4 TCF. An export deal to Japan of 3 mill. tonnes. (150 BCF) per year for 17 years (2.551CF total) @ $250 USD per tonne. This equates to an annual sales value o
Slide 21: Gippsland Basin PEP162
Gippsland Basin PEP162__ “e AgHE 06 718.16 don EOCENE 34, 14 200 49¢ 0 : Megascolides-1 drilting program Q_ Discovered oil bearing porous and sao permeable rocks atthe Crayfish Gp co equivalent level Nov-Dec 2004. ‘Sune Facemot oy 7 Proved presence of gas oe L Heewee coal across me Narracan T roy h.
Slide 22: Gippsland Basin PEP162 Megascolides-1 well results
Gi psiand Bas n PEP162 ‘Megascolides-1 well results - Oilz zone 1 SW -S55 OE PHIE-S55 0/0 Yel -S55 i SSRHOS 2 SWT_-S55_ 0], 5 PHIT-S55 UST -S55 NP USAN-SSS UHUM-S55 PHYE-€se a pel fluorescence and high mud gas feadings. oyo/oloy [= eee =) alee avet3% . cki Gp volcanoclastic j (small core chip) Hs —v
Slide 23: Gippsland Basin PEP162 Top Crayfish Group equ. leads
Gippsland Basin PEP162 Top Crayfish Group equ. leads 4 x Orange areas show structural prospects additional leads in red. Megascolides-1 sidetrack. If oil is flowed, proving the presence of a Karoon Gas working trap, then this would likely prove the presence of a stratigraphic, — trap the magnitude o
Slide 24: Gippsland Basin PEP162 Megascolides-2 location
Gippslan and Basin PEP162 Megascolides-2 location | Kates, 323.04 cote! GDAGBAG DT, 198) 86. SP: 581.0 1 1 1 C ! it i 1 1 t 1 1 101-0 Offset 5000". bara pa | 00500_purcle {0800_Toptrayt Karoon Gas Anstnalia
Slide 25: Basin PEP162 Raniformis-1 location
Basin PEP162 Raniformis-1 location _ prmis-1
Slide 26: Gippsland Basin PEP162 Potential Reserves
Gippsland Basin PEP162 Potential Reserves < PEP 162 VOLUMETRICS Ka ‘oon’ s Gippsland | program. coul i provide an excellent strategic fit with the 5 Browse Basin operations, where early cash flow would support Browse Basin exploration. wg 358/bb| mM 70$/bb| Prospect Raniformis Megascolides Reserves
Slide 27: Drilling program
Drilling program Century Rig 11 being set up. a Karoon Gas h Australia
Karoon Gas Australia — Shareholder Meeting (November 2006) on 6ix