Melbana Energy Limited · ASX:MAY
Melbana Energy — Good Oil Conference 2019
22 slides from Melbana Energy's conference presentation, Sep 12, 2019
Slide 1: Melbana Energy Good Oil Conference 2019
For personal use only Melbana Energy Good Oil Conference 2019 11 – 12 September 2019
Slide 2: Disclaimer: Forward-looking Statements and Resources
Disclaimer Forward-looking Statements and Resources For personal use only Summary of information: This presentation contains general and background information about Melbana Energy’s activities current as at the date of the presentation and should not be considered to be comprehensive or to comprise
Slide 3: Company Overview
Company Overview For personal use only Company Data 12 Month Share Price Performance Listed 1998 Exchange ASX (“MAY”) Shares on issue ~1,875 million Options/Rights ~180/~4 million Market Cap (30 Aug 19) ~A$20.6 million Cash (30 Jun 19) ~A$3.7 million Shareholders Board and Management Cadence Capital
Slide 4: Melbana offer for Metgasco
Melbana offer for Metgasco For personal use only 1. On 15 July 2019 Melbana Energy announced its intention to offer four of its shares for each share of Metgasco Limited (ASX:MEL) 2. Key conditions include Melbana Energy receiving acceptances for a minimum of 50.1% of Metgasco shares on issue and no
Slide 5: Projects Summary
Projects Summary For personal use only Cuba - Block 9, 100% USA • Onshore block in Cuba’s northern fold belt trend USA USA Cuba • Potential of ~14.8 billion barrels of oil in place, Block 9 recoverable Prospective Resources of 676 million Santa Cruz IOR barrels of oil1 Cuba - Santa Cruz2 • Enhanceme
Slide 6: Northern Australia: WA-488-P: Beehive Prospect
Northern Australia: WA-488-P : Beehive Prospect Seismic Funding/Farmin Option Agreement with Santos and Total. For personal use only • Largest undrilled oil prospect offshore Darwin Australia • Independent Expert McDaniel & Associates PETREL Report assessed 388 MMboe best estimate FRIGATE TERN • Tot
Slide 7: Beehive Prospect
Beehive Prospect Beehive – an enormous feature analogous to giant Tengiz oil field For personal use only • Recent deep drilling in the offshore Canning by Santos (Dorado area) has highlighted deep success in new deeper, play ideas Beehive • Beehive – undrilled new play type in Petrel Basin • Isolate
Slide 8: New 3D seismic survey acquired in 2018
New 3D seismic survey acquired in 2018 • Santos/Total acquired ~700km2 3D seismic survey For personal use only as part of their option (506km2 on WA-488-P) • Survey extended to cover “Egret” Lead which is partly within WA-488-P 2017 2D DUG broadband repro Top carbonate map • Beehive 3D seismic cover
Slide 9: Beehive 3D seismic: Significant Improvement in platform definition
Beehive 3D seismic: Significant Improvement in platform definition Comparison between 2D seismic with 1999 King Shoals 2D line 64 For personal use only original processing, 2D with DUG Broad Reprocessing and the equivalent line Beehive from new Beehive 3D seismic data. The benefits of 3D migration a
Slide 10: Beehive 3D seismic: Improvement in Top Reservoir Map
Beehive 3D seismic: Improvement in Top Reservoir Map 2017 reprocessed King Shoals 2D seismic Beehive 3D seismic For personal use only 5km 5km Preliminary interpretation reveals: • Overall resolution of the Beehive isolated platform has improved with sharper edges providing more confidence in structu
Slide 11: Next Steps
Next Steps • Complete the Interpretation of the new Beehive 3D seismic For personal use only • Decision by Santos/Total to notify the intent to exercise their option by 2 October 2019 • Well Planning is advancing in parallel in order to be prepared for drilling in late 2020 • Potential ground breaki
Slide 12: Australia - Industry changes around Tassie Shoal Projects
Australia - Industry changes around Tassie Shoal Projects For personal use only • Melbana (100%) has Federal & State Government Environmental approvals valid to 2052 to build two methanol and one LNG plant • Evans Shoal and Barossa in race to replace declining Bayu-Undan production into Darwin LNG f
Slide 13: Cuba – Why?
Cuba – Why? • Under-explored For personal use only • Huge oil potential • Produce half of domestic needs • Investment climate − No evidence of corruption − Government support for oil industry − Tax rate − Tax holiday • Good local infrastructure • Educated workforce • Early mover advantage achievable
Slide 14: Cuba, Block 9 – Resource Assessment
Cuba, Block 9 – Resource Assessment McDaniel & Associates assess Prospective Resources up to 1.5 billion barrels For personal use only • Large footprint - 2,344km2 • Lightly explored • Along trend from Varadero oil field • 3 prospects, 16 leads identified • Potential for large Varadero type structur
Slide 15: Cuba, Block 9 – Leads in Conventional Play
Cuba, Block 9 – 19 Leads in Conventional Play For personal use only Highlights • Varying qualities of oil recovered • Motembo, oldest oil field in Cuba is very light oil • Sherritt active in Block 10 • 3 key targets • Work program requires one well by November 2019. MAY have submitted proposals for
Slide 16: Block 9: Outcrop Expression of Structural Elements
Block 9: Outcrop Expression of Structural Elements For personal use only Mid Level Detachment (Vega Alta fm) Block 9 Exposed Lower Sheet Duplex Folded Upper sheet Melbana Structural work has concluded that the following observations can be made: • Suture between Upper Plate rocks (Arc complex / Ophi
Slide 17: Block 9 - Preparations for drilling
Block 9 - Preparations for drilling For personal use only Securing permits, equipment and services • Initiated field work with experienced local Cuban contractors • Field work surveys completed for Alameda-1 and Zapato-1 well sites, camp sites and access roads • Flat accessible well site locations •
Slide 18: Cuba, Block 9 - Alameda Prospect
Cuba, Block 9 - Alameda Prospect Multi-target exploration drilling close to historic oil recoveries For personal use only • Three individual target zones for Alameda, two up-dip of known oil recoveries • Marti-5 (1988) recovered oil (24°API) with oil shows over an 850 metre gross interval • 32% chan
Slide 19: Cuba, Block 9 – Zapato Prospect
Cuba, Block 9 – Zapato Prospect Prominent structure with 200 million barrel oil exploration potential For personal use only • Large fractured carbonate objective • Working oil system - adjacent to shallower Motembo oil field which produced high quality light crude (50 – 64.5° API) • Crest of structu
Slide 20: Block 9 Opportunity
Block 9 Opportunity For personal use only Cuba has excellent oil & gas prospectivity Existing fields, oil recoveries and seeps demonstrate a high quality active petroleum system in Block 9. Good quality oil Melbana’s technical assessment has demonstrated world class, large scale exploration potentia
Slide 21: Cuba, Santa Cruz – Incremental Oil Contract
Cuba, Santa Cruz – Incremental Oil Contract Accelerated path to becoming an oil producer and booking reserves in Cuba For personal use only • Incremental Oil Recovery (IOR) contract finalised in Dec 2018 − Multiple phases, initial study period then optional implementation phase • Part of Cuba’s nort
Slide 22: In conclusion: an active phase for Melbana
In conclusion: an active phase for Melbana For personal use only Takeover offer for Metgasco in train Australia: Beehive decision imminent Australia; Tassie Shoal projects keenly poised Cuba: Farming out Block 9 - looking to drill in 2H 2020 Cuba: Working to finalise a contract for Santa Cruz. 22