Carnarvon Energy Limited · ASX:CVN
Carnarvon Energy — Carnarvon Petroleum — Non-Deal Roadshow (September 2010)
51 slides from Carnarvon Energy's roadshow presentation, September 2010
Slide 1: Investor Update
Investor Update CARNARVON September2010 0 REFROLEUM LTD
Slide 2: Disclaimer
Disclaimer The information in this document, that relates to oil exploration results and reserves, is based on information compiled by the Company's General Manager (Operations), Mr Philip Huizenga, who is a full-time employee of the Company. Mr Huizenga consents to the inclusion of the reserves and
Slide 3: Introduction / Latest News
Introduction / Latest News CARNARVON 2 Strategic Position 3 Current Asset Position 4 People 5 Key Metrics 6 1H, 2010 CY Highlights 7 Upcoming Activities
Slide 4: Strategic Position
Strategic Position Compelling technical & economic fundamentals Direct oil & gas asset holding Means to grow Experienced team Cash & cash flow Balance sheet Concentrating on Australasia & S.E Asia x CARNARVON PETROLEUM LTD Onshore & shallow water offshore
Slide 5: Current Asset Position
af a Current Asset Position CARNARVON New Zealand Thailand Indonesia 6 6 1 Cc ‘ > eyeticelam Onshore offshore onshore offshore aIarvon S permits permits permit permit growth plans are focused 3 ddin me g rNeyeyeclit-lmm Onshore assets that create a quality portfolio . permits Ne Ring 7 6 aceleleleai
Slide 6: People
People CARNARVON Peter Leonhardt — Chairman FCA, FAICD (Life) Independent non-executive director Finance, accounting, business management, governance Edward (Ted) Jacobson — Chief Executive Officer B.Sc (Hons) Geology Executive director Company founder, geologist, corporate strategy Neil Fearis — Ch
Slide 7: Key Metrics
ieee ee eee eee Key Metrics (as at August 2010) CARNARVON Production (net) 3,000 bopd Market capitalisation A$275m 2P reserves (net) 24.5 mmbblis 3P reserves (net) 57.0 mmbblis Reserve life 25 years : EV / 2P reserves A$11.25 / bbl < aw EBIT / bbl produced A$43.25 / bbl NPAT /bbl produced A$16.60/ b
Slide 8: 1H, 2010 CY Highlights
x 1H, 2010 CY Highlights CARNARVON * 48% reserves upgrade in L44/43 permit (Thailand) e« New discovery in volcanics at Wichian Buri produces >2,500 bopd from first well (Thailand) * New discovery in L33/43 Concession to be appraised & developed under new production licence (Thailand) « New venture -
Slide 9: Upcoming Activities
a inHg x Upcoming Activities CARNARVON ¢ L33/43 (Thailand) drilling appraisal and development wells in Q4, 2010 & Q1, 2011 e Phoenix (Australia) seismic acquisition program Q3/Q4, 2010 with farmout program commencing Q2, 2011 e Rangkas PSC (Indonesia) seismic acquisition Q3/Q4, 2010 ¢ L20/50 (Thaila
Slide 10: Operations - Thailand
Operations - Thailand
Slide 11: Operations - Thailand
Operations - Thailand CARNARVON 9 L44 & SW1A Overview 11 L44 & SW1A Overview and Production 13 L44, 1H, 2010 CY Drilling Results 15 L33/43 Drilling Results ce Fractured Reservoirs 19 L20/50 — Permit Overview 21 L52 & L53 — Permit Overview
Slide 12: L44 & SW1A Overview
L44 & SW1A Overview CARNARVON
Slide 13: L44 & SW1A Overview
L44 & SW1A Overview CARNARVON High margin production with exploration upside * Onshore close to quality infrastructure * Opex & trucking ~US$10.80/bbl * Depreciation / amortisation ~US$7.20/bbI () (*) Based on current accounting policy and estimates * — Production ~1.0 mmbbls p.a. net ee | * 2P rese
Slide 14: L44 & SW1A Field Overview
[ee ee ee es eee x L44 & SW1A Field Overview CARNARVON 2P Reserves by Field (mmbbls) * Reserves spread across several oil fields - notably Bo Rang A & B, = NSE Central NSE-F1 & NSE Central =NSE F1 "Bo Rang Volc B * Six production licences ™Bo Rang Volc A * 20 year life NSE South * optional 10 year e
Slide 15: L44 & SW1A Production Overview
a L44 & SW1A Production Overview CARNARVON ¢ Production predominantly from Daily Production fractured reservoirs (differs from Water Rate "Oil Rate sandstone reservoirs, refer slides 17 & 18) 18000. ¢ Production levels driven by: * number of wells on flush production in a given period; * number of p
Slide 16: 1H 2010 CY wells tested 2P perimeters
1H, 2010 CY wells tested 2P perimeters ¢ Drilling efficiently with ~3 wells per month being drilled c ¢ New discoveries in L33/43 & Fa WBEXT1 flowed strongly on test New discoveries in L33 and WBEXT 13
Slide 17: L44, 1H, 2010 CY Drilling Results
L44, 1H, 2010 CY Drilling Results cannanvon Well Permit Status NSE-G3 L44/43 Suspended exploration well L44V-D3 L44/43 On production at 650 bopd / currently 348 bopd L44V-D4 L44/43 On production at 800 bopd / currently 834 bopd NSE-E3-ST1 L44/43 Testing commenced at around 700 bopd / currently 318 b
Slide 18: L33 Drilling Results
L33 Drilling Results 4 es iz ; uy aia MW Nay ie CARNARVON PETROLEUM LTD = —
Slide 19: L33 Drilling Results
L33 Drilling Results CARNARVON ¢ L33-1 exploration well flow tested at 1,100 bopd gross ¢ L33-2 appraisal well flow tested at 2,370 bopd gross ¢ Application for Production Licence being prepared with production expected to commence ~ Feb 2011 ¢ Further infield appraisal wells being planned and consi
Slide 20: Fractured Reservoirs in L33, L44 & SW1A
Fractured Reservoirs in L33, L44 & SW1A CARNARVON ¢ L33,L44 & SW1A contain multi-layered fractured reservoirs ¢ Heterogenous nature of fracturing means individual well performance varies: * 100,000 bbls to 1.5 million bbls per well ¢ Potential for infill locations ¢ Fracturing also results in varyin
Slide 21: Fractured Reservoirs in Other Regions
7 7 . x Fractured Reservoirs in Other Regions —~nxarvow omer Bie, 298 an SS Example from fractured reservoir of _ Austin Chalk:- Ad oy ¢ Well production rate is dependent on } number of fractures intersected ¢ Wells that penetrate heavily fractured areas adjacent to fault outperform wells that miss
Slide 22: L20/50
L20/50 CAnanvOn * On trend with 200 million barrel Sirikit Oil Field eae located ~50 km to NW (now producing a a" ~20,000 bopd; over 150 mmbbls produced) A * Basin modelling and oil shows in Nong Bua -1 well indicate significant oil potential in concession L20/50 Sirikit Oil ¢ Interpretation of ~1,0
Slide 23: L20/50 Prospects
L20/50 a PETROLEUM LTD Tapao Kaew Prospect Chalawan Prospect Ea soe poe Stacked 4-Way and 3-Way =a Ve Hanging Wall Anticlines ~/| 3-Way Tilted i “|_| Fault Closures 4-Way Dip Closures with Mounded and Stacked Alluvial Fan-Deltas = = = * Interpretation reveals a deep basin and multiple plays, prospec
Slide 24: L52/50 & L53/50
[a ee Sr eS ee eee ios L52/50 & L53/50 CARNARVON ¢ Exploration concession formally granted February 2010 ¢ The combined area of the two blocks is large, comprising approximately 6,950 km? ¢ Both permits are lightly explored, with only two deep wells and limited seismic data available ¢ On trend, and
Slide 25: L52/50 & L53/50 Commitments
L52/50 & L53/50 CARNARVON Commitments — 1st Three Year Obligation * geological studies; * geophysical data acquisition; and * two wells Total expenditure of around US$2.6 million | gross (US$ 1.3 million net to Carnarvon). Work Program - 2010 & 2011 ¢ geological surface mapping; and e shallow geophy
Slide 26: Operations — Other Regions
Operations — Other Regions
Slide 27: Operations — Other Regions
Operations — Other Regions CARNARVON 24 Phoenix Blocks (Australia) 28 Rangkas PSC (Indonesia) 30 WA-399-P (Australia) 31 Tuatara (New Zealand)
Slide 28: Phoenix Blocks
Phoenix Blocks (*) CARNARVON (*) Blocks comprise WA-435-P, WA-436-P, WA-437-P, WA-438P & WA-443-P * Permits acquired when Permits secured most of the industry was through gazettal process distracted with GFC issues * 28,300 km? area in relatively shallow water close to WA shoreline WA-437-P ¢ Partne
Slide 29: Phoenix Blocks
Phoenix Blocks CARNARVON Phoenix-2 ¢ WA-435-P contains the Phoenix J seh = gas discoveries A Aghiy column *« Phoenix-1: ~110 metre net gas-bearing section Phoenix-1 767m * Key targets in ~100 m water Sei 110 mnet depth with multi-Tcf recoverable Phoenix WWM resource potential South Prospect ¢ New 2D
Slide 30: Phoenix Blocks
Phoenix Blocks CARNARVON * Acquisition of 1,100 km? of 3D data scheduled for September 2010 ¢ Acquisition of 407 km of onl 2D data scheduled for ran a September 2010 srewss Te ¢ Acquisition of 15,847 km? “tees of aeromagnetic data completed May 2010 PHOENIX 3D. 1,100 km? 80km * 2010 budget of A$3 mi
Slide 31: Phoenix Blocks
a Phoenix Blocks ¢ Gas discoveries in shallow water (~100 m) ¢ Field is within ~250 km of current and proposed onshore LNG plants ¢« The Joint Venture has a window of several years in which to realise value from the asset ¢ The Joint Venture intends to seek a farm-in partner prior to drilling a well
Slide 32: Rangkas PSC
Rangkas PSC cARNanvon ¢ Carnarvon farmed into the permit in September 2009 >| Carnarvon 25% Lundin Petroleum Operator ¢ Large permit located onshore West Java, close to Jakarta * Previous wells (last in 1991) targeted shallow Neogene carbonates; deeper Paleogene clastic play is untested = fg, [erate
Slide 33: Rangkas PSC
Rangkas PSC CARNARVON ¢ Acquisition of 474 km of 2D seismic data scheduled for September 2010 ¢ Data will refine geophysical mapping which reveals over 12 significant leads ¢ Environmental baseline study } complete ¢ Reprocessing of 1000 km of existing 2D data complete * Core/reservoir study complet
Slide 34: WA-399-P
WA-399-P CARNARVON ¢ Apache farmed into the permit in July 2010 ¢ 3D acquisition in planning stage, will be funded by Apache ¢ Multiple play types expected to be better assessed with the 3D seismic data ¢ Nearby and on trend with large oil and gas fields ¢ Acreage located in the Exmouth Sub-basin, ~
Slide 35: Tuatara (New Zealand)
x Tuatara (New Zealand) CARNARVON ¢ Well drilled August 2010 ¢ Exploration well commitment was ~US $3.2m (net to CVN) ¢ Target prospect 80-100 mmbbl ¢ Result: Intermittent gas and oil shows « Next Phase: Joint venture to undertake technical assessment of well results before assessing AWE (operator)
Slide 36: Corporate / Finance
Corporate / Finance
Slide 37: Corporate / Finance
Corporate / Finance CARNARVON 33 Capital Structure 34 Peer Comparison 35 Earnings Analysis 36 Reserves 37 Broker Valuations 39 Taxes Explained
Slide 38: Capital Structure
A x Capital Structure CARNARVON * Issued shares 687m Significant Shareholdings (12 Aug 2010) * Options nil Currently there are no significant . shareholders ¢ Share price (as at 4 Aug 2010) $0.40 * Market capitalisation $275m Directors & staff hold 9.0% XEJ - ENERGY INDUSTRY INDEX vs CVN sovug comme
Slide 39: Peer Comparison
eee ee ees Peer Comparison CARNARVON $400,000,000.00 $350,000,000.00 $300,000,000.00 $250,000,000.00 $200,000,000.00 $150,000,000.00 Mareket Capitalisation (A$) $100,000,000.00 $50,000,000.00 $- DS DP WP DS SP MDM PO PO PF MO Na SS wv € a & Ws & Pr & & we © é ¢ ee § S SEF SELES? PS S $ e ££ SF eS &
Slide 40: Earnings Analysis
Earnings Analysis CARNARVON 90 80 USS$/bbl WTI Sales Operating Trucking Corporate EBITDA Dep'n& Royalties Profits tax Income Income Net price costs costs costs perbarrel amort'n (SRB) tax tax earnings discount (CVN) (current) (deferred) per barrel
Slide 41: Reserves (net to CVN)
x Reserves (net to CVN) CARNARVON 30 25 7 20 an 3 £ 15 & tt 1. rT Reserve Production 2P Reserve Production Reserve Production Reserve Production Increase Reserve Increase Reserve Increase oe Increase Reserve | CY 2006 CY 2007 ; CY 2008 | { CY 2009 Strong base 57mmbbis in 3P reserves
Slide 42: Broker Reports
Broker Reports CARNARVON Austock CARNARVON PETROLEUM LTD PATERSONS Securities Bell Potter Research December 2009 Half Yearly Result Carnarvon Petroleum (CVN) Date of isu Investment Highlights ent 2000 04.09.09 Company Update Freriad ne Weekly Informer EUROZ RW Hartleys ; Ps CARNARVON PETROLEUM LTO J
Slide 43: Broker Valuations
: fet Broker Valuations CARNARVON CVN share price currently in the range of $0.35 to $0.40 Company value range $0.46 to $0.80 Consensus $0.63 Exploration and appraisal assets value range $0.11 to $0.23 Consensus $0.15 Production assets (reserves) value range $0.31 to $0.54 Gaffney, Cline & Associate
Slide 44: Thai SRB Explained
Se ee es Thai SRB Explained CARNARVON ¢ Thailand IIl regime Baht per Baht per e j si i ite’ metre metre Effective SRB Designed to tax ‘excessive profits pat, Ses rie a 0 4,800 0 0 0 4,801 14,400 240 0 40% e i H 14,401 33,600 960 40% 60% Applied to each concession area aaah oy (fa oo ‘Source: Hartley
Slide 45: Thai Royalty Explained
[[ SS a ae SS ee eee x Thai Royalty Explained CARNARVON Tiered Effective e Thailand lll regime Barrels perDay Barrelsper Royalty Royalty (From) Day (To) Rate Rate 0 2,000 0.0500 5 ¢ Royalty is applied over each 2,001 5,000 0.0625 5.0-5.8 . 5,001 10,000 0.1000 5.8-7.9 concession area 10,001 20,000 0.
Slide 46: Upcoming Activities
Upcoming Activities
Slide 47: Upcoming Activities
Upcoming Activities CARNARVON 42 2010 & 2011 Work Programme 43 Growth Plan
Slide 48: 2010 CY Work Programme
x 2010 CY Work Programme CARNARVON Indicative 2011 20 to 25 wells throughout the year 25 — 35 wells (possible 3D L33 exploration 3 to 8 wells throughout the year seismic) Studies Thailand L20/50 aiforaiwelle (possible 3D exploration seismic follow up to wells) Geophysical data acq’n ~1,100km? of 3D
Slide 49: Growth Plan
Growth Plan A CARNARVON PETROLEUM LTD : : New New Exploration Significant short term and medium term upside within the Pp existing exploration asset portfolio Significant Appraisal short term upside Strong long life cash flows to support growth Production
Slide 50: Contacts
PHILIP HUIZENGA General Manager (Operations) x lover nag x Elvi CARNARVON over soyojnaiz05 CAR aoe nee pat ‘Mobile: +81(0) 407 778 745 mal: phulzengag@omn wwrw.carnarvon.com.au ‘ADRIAN COOK ‘General Manager (Corporat) 1322 Hay toot, West Perth ‘Western Australia 6005, Telephone: +61 (8) 9321 2865 Fa
Slide 51: Carnarvon Petroleum Ltd
CARNARVON PETROLEUM LTD 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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