Melbana Energy Limited · ASX:MAY
Melbana Energy — Investor Presentation (August 2016)
26 slides from Melbana Energy's investor presentation, August 2016
Slide 1: Corporate Presentation
Corporate Presentation August 2016
Slide 2: Disclaimer
Disclaimer 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 inve
Slide 3: Corporate Overview
Corporate Overview 3
Slide 4: Company Overview
Company Overview • ASX listed (ASX: MEO) petroleum exploration company • Only ASX listed company with Cuban energy industry exposure – 100%* interest in Block 9 PSC, Cuba • Identified potential in Cuba Block 9 for over 8 billion barrels of oil-in-place with Prospective Resources of 395 million barre
Slide 5: Corporate Snapshot
Corporate Snapshot Capital Structure Share Price Share price (as at 29/8/2016) A$0.035 Volume Share Price Shares on issue 938.1m 6 140 5 120 Options on issue (exercise price $0.50) 3.7m 100 4 Share Performance Rights 26.3m Millions 80 Cents 3 Market capitalisation ~A$32m 60 2 40 Approx cash position
Slide 6: Board & Management
New Leadership Under MD Peter Stickland and New Board Board & Management Board of Directors Peter Stickland Andrew Purcell Michael Sandy Managing Director Non-Executive Non-Executive & CEO Chairman Director Senior Team Colin Naylor Robert Zammit Errol Johnstone Dean Johnstone CFO & Exec Manager – Ch
Slide 7: Cuba
7 MEOAustralia
Slide 8: Cuba Block 9 - Positioned in oil rich highly prospective area
Cuba Block 9 - Positioned in oil rich highly prospective area On trend with existing producing fields, very significant oil potential Positioning • Block 9 PSC (2,380 km2 or 588,000 acres) located onshore and close to infrastructure • MEO (100%*) awarded Block 9 PSC in September 2015 for 25 year ter
Slide 9: Cuba Oil and Gas Potential - Untapped region of the Gulf of Mexico
Cuba Oil and Gas Potential - Untapped region of the Gulf of Mexico MEO has early mover advantage into this significantly under explored region Format?? Cuba – Significant Undiscovered Potential • The Gulf of Mexico is one of the world’s great petroleum mega provinces - Cuba represents the under-expl
Slide 10: Cuba Block 9 – Resource Potential
Cuba Block 9 – Resource Potential Multi-billion barrel oil potential identified so far in just 1 of 3 oil plays Technical Assessment Havana Bolanos-1 (1991) recorded a recovery Cuba • Identified the following three play types: Varadero Field is the largest oil field of 22° API oil from Upper Sheet i
Slide 11: Potential of A2 Lead at the Lower Sheet
Potential of A2 Lead at the Lower Sheet 222 million barrel high side potential with an estimated 25% chance of success • Large structure (up to 44km2) at Lower Sheet objective Depth B B’ m • Reservoir is a conventional, fractured carbonate Bolanos‐1 Guadal‐1 0 • Recoverable volumes conservatively es
Slide 12: Marti-5 highlights potential of Lower Sheet in Western Area of Block 9
Marti-5 highlights potential of Lower Sheet in Western Area of Block 9 Old well drilled off structure points to potential of nearby leads • Marti-5 (drilled 1984) recovered light oil (24°API) Depth A A’ and had oil shows over a 390 metre gross interval m Marti-5 from the Lower Sheet 0 Tertiary • Lat
Slide 13: Cuba - Re-emerging as an investment destination
Cuba - Re-emerging as an investment destination Internal changes and start of normalization of relations with US having positive impact • Cuba has implemented an attractive fiscal regime - New Law of Foreign Investment in 2014, including 8 year profit tax exemption • In December 2014 US President Ob
Slide 14: Cuba Block 9 – Near term activities
Cuba Block 9 – Near term activities Expand resource base and investigate potential for early drilling Havana Near term activities Bolanos-1 (1991) recorded a recovery Cuba of 22° API oil from Upper Sheet • Assess resource potential of Upper Sheet Varadero Field is the largest oil field in Cuba with
Slide 15: Australia & New Zealand Portfolio
Australia & New Zealand Portfolio 15
Slide 16: Onshore New Zealand - PEP 51153 (MEO 30%, non-operator)
Onshore New Zealand - PEP 51153 (MEO 30%, non-operator) Analysing production and exploration opportunities • Tag Oil subsidiary recently appointed operator Puka PEP 51153 • Considering potential operational synergies with nearby Tag producing Waihapa assets to reduce break-even oil production costs
Slide 17: Northern Australia Acreage and Projects
Northern Australia Acreage and Projects Discrete upstream projects adjacent to proven hydrocarbons ABADI GREATER SUNRISE BAROSSA Kupang Kupang EVANS SHOAL Joint Petroleum BLACKWOOD CALDITA Development HERON Area BAYU‐UNDAN Tassie Shoal Projects Concept TSMP2 TSMP1 TSLNG Darwin Darwin
Slide 18: WA-488-P (MEO 100%) – Beehive giant oil prospect
WA-488-P (MEO 100%) – Beehive giant oil prospect Beehive being upgraded with recent seismic reprocessing before farmout Darwin • Significant, multi billion barrel oil prospect • Potentially the largest undrilled oil prospect offshore Australia PETREL • Shallow water, suitable for lower cost jack-up
Slide 19: Corporate & Activity Pipeline
Corporate & Activity Pipeline 19
Slide 20: Fiscal Discipline
Fiscal Discipline Major cost reduction initiatives implemented & new capital raised • 2016: 20% reduction in cash component of annual salaries for CEO and senior staff, exchanged for exercisable performance rights: • Savings of ~$280,000 per annum • Exercisable Performance Rights build stronger alig
Slide 21: MEO Indicative Activity Pipeline
MEO Indicative Activity Pipeline Key activities in next 6 months in Cuba, NZ and at Australian Beehive prospect 2016 2017 Indicative Permit Activity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Cuba (Block 9) • Data gathering, studies and reprocessing • “Lower Sheet” prospectivity & resource assessment • Assessment of a
Slide 22: Investment Summary
Investment Summary Refocused strategy targeting projects with appropriate risk reward profile New leadership team - expertise in relevant petroleum geology & experience in international jurisdictions Unique Cuban leverage with early mover advantage Cuba has excellent oil & gas prospectivity and demo
Slide 23: Appendix
Appendix Peter Stickland Managing Director / CEO +61 3 8625 6000 Peter.Stickland@meoaustralia.com.au
Slide 24: AC/P50 & AC/P51 (MEO 100%*): Multiple oil targets
AC/P50 & AC/P51 (MEO 100%*): Multiple oil targets MEO fully carried through 3D seismic reprocessing • Identified material Ramble On and Jur’maker oil prospects in proven petroleum system defined on modern 3D seismic data • Suitable for lower cost jack-up drilling rig • Potential highlighted by Aurig
Slide 25: Tassie Shoal Projects
Tassie Shoal Projects Shallow water site, innovative low cost development paths for regional stranded gas • 100% owned by MEO • Region has substantial undeveloped high CO2 gas that needs a low cost development solution • Methanol manufacturing uses gas with high CO2 (up to 30%) as feedstock for valu
Slide 26: Appendix – MEO Group Assets
Appendix – MEO Group Assets Country Asset MEO % 2016 Work Program Value Driver Cuba Onshore Block 9 PSC 100%* 200km 2D reprocessing Proven oil trend with very significant Studies prospective oil resource identified Investigating potential for near term drilling New Onshore Taranaki 30% Subject t