Corpus Resources Plc · LSE:COR
Corpus Resources — Curzon Energy — Oil Capital Conference, London, 1 February 2018
15 slides from Corpus Resources's conference presentation, Feb 1, 2018
Slide 1: February 1st 2018 London with Curzon Energy
FEBRUARY 1st 2018 LONDON WITH CURZON ENERGY
Slide 2: Important Notice
IMPORTANT NOTICE By attending this presentation and/or accepting these slides you agree to be bound by the following It is not intended that the Presentation Materials be distributed or passed on, directly or indirectly, to anyone conditions and will be taken as having represented and undertaken tha
Slide 3: Coos Bay Gas Field: Fast Track to Cashflow at Premium Prices
THOMAS WAGENHOFER EXECUTIVE DIRECTOR COOS BAY GAS FIELD FAST TRACK TO CASHFLOW AT PREMIUM PRICES
Slide 4: Curzon in Brief
CURZON IN BRIEF • LISTED ON THE MAIN MARKET OF THE LSE • OCT 4TH 2017 FIRST DAY OF TRADING • FUNDS RAISED ON IPO £2.3 MILLION • MARKET CAP ON IPO £7.2 MILLION • CURRENT MARKET CAP CIRCA £7.4 MILLION • ASSET 100% OWNERS OF COOS BAY CBM GASFIELD OREGON-USA 45,000 ACRES UP TO 1.0 TCF OF GAS IN PLACE 27
Slide 5: Coalbed Methane in Brief
COALBED METHANE IN BRIEF COAL MATRIX HOLDS METHANE BY ADSORBPTION WATER IS PUMPED 1 FROM THE COALBED REDUCTION IN 2 PRESSURE RELEASES METHANE WATER IS RECOVERED, 3 TREATED AND DISPOSED OF GAS FLOWS TO THE WATER PRESSURE TRAPS 4 PIPELINE METHANE IN COAL MATRIX GAS ANTICIPATED TO BE NATURALLY OCCURING
Slide 6: 1.2 Tcf of CBM Gas Was Produced in the USA in 2015
US-CBM 1.2 TCF OF CBM GAS AN ESTABLISHED INDUSTRY WAS PRODUCED IN THE USA IN 2015 COOS BAY (LATEST EIA DATA) FIELD BIG PLAYERS ARE IN THE US-CBM BUSINESS, CHEVRON,EXXONMOBIL & BP POWDER RIVER BASIN CBM DEAL FLOW CENTRAL APPALACHIAN IN 2016, YATES PETROLEUM CO. UINITA & ILLINOIS BASIN BASIN SOLD 1.6
Slide 7: Coos Bay Asset History
COOS BAY ASSET HISTORY • HISTORIC COAL MINING ACTIVITY • REGIONAL GAS PIPELINE BUILT 2003 • $37 MILLION HISTORIC SPEND ON PRIOR DEVELOPNENT OF COOS BAY CBM • 12 EXPLORATORY CBM WELLS ON 3 TEST 12” COOS SITES (2004-2006) BEAVER HILL, RADIO COUNTY HILL, WESTPORT PIPELINE • EXTENSIVE GEOLOGIC AND COAL
Slide 8: Premium Gas Prices: Margin of Safety
PREMIUM GAS PRICES MARGIN OF SAFETY 1. EIA , 2 LOI with Northwest Natural dated 15 Feb 2017 EXPECTED PRODUCTION COST 2010 2011 2012 2013 2014 2015 2016 2017 THE OREGON GAS PRICE HAS TRADITIONALLY TRADED AT PREMIUM TO THE NATIONAL GAS PRICE. LSE:CZN CORPORATE PRESENTATION WWW.CURZONENERGY.COM 7
Slide 9: Fast Track to Cashflow
FAST TRACK TO CASHFLOW PHASE I PL Connection & Compression FIELD PICTURE (9-21) 16-16 1-21 (68 Mscf/d test) 13-15 9-21 15-21 LSE:CZN CORPORATE PRESENTATION WWW.CURZONENERGY.COM 8
Slide 10: What Have We Done So Far
WHAT HAVE WE DONE SO FAR PHASE 1 DEVELOPMENT KICKS OFF 1 27 NOV 2017 RIG CONTRACT FOR THE UPCOMING WORKOVER OF FIVE EXISTING WELLS AT COOS BAY CBM PROJECT 2 6 DEC 2017 WORKOVER AND CLEAN-OUT OPERATIONS COMMENCE ON WELL 9-21, THE FIRST OF FIVE EXISTING WELLS AT COOS BAY 3 13 DEC 2017 WORKOVER OPERATI
Slide 11: CBM Wells Are Different from Conventional Wells
CBM WELLS ARE DIFFERENT FROM CONVENTIONAL WELLS! WE EXPECT RATES TO INCREASE OVER TIME IN LINE WITH OUR TYPECURVES Type Curves from CPR Report 9-21 200 to 500 Mscf/d short term tests at Beaver and Radio Hill Sites Well 1-21 Up to 68 Mscf/day long term test with increasing trend at Westport Site (100
Slide 12: Strong Well Economics
STRONG WELL ECONOMICS SINGLE WELL 15 YEAR CYCLE 3,000 2,718 LOW 2,500 MID BASED ON 100 MSCF/DAY ONE WELL CAN GENERATE 1,989 HIGH 2,000 US$ (thousand) FREE CASH FLOW OF $128,000 PER ANNUM 1,500 1,214 1,000 759 657 512 493 45,000 ACRES 500 320 182 0 OVER 400 POSSIBLE Net Revenue 1 Net 2Opex NPV10 3 WE
Slide 13: We Are Aiming Big
WE ARE AIMING BIG PHASE II (5,200 ACRES) PHASE III (45,000 ACRES) Westport Area Westport 273 BCF 2C Resources AVERAGE Beaver Hill WELL COST $350K Radio Hill PHASE II EXPECTED TO SEE FREE CASHFLOW IN EXCESS OF $5 MILLION PER YEAR, WITH AN NPV(10) OF OVER $34 MILLION AND THE INITIAL CAPITAL INVESTMENT
Slide 14: We Are Delivering! Ideal Location
WE ARE DELIVERING! 1 COMPLETION OF INITIAL WELL WORK ON TIME AND BUDGET 2 COMMENCEMENT OF EXTENDED TESTING PROGRAM ONGOING WORK ON WATER DISPOSAL SYSTEM AND 3 COMPRESSION STATION 4 PROGRESSING GAS CONTRACT AND TRUNKLINE HOOK UP 5 ON TRACK FOR FIRST GAS AND CASHFLOW IN Q2 2018 LARGE RESOURCE IDEAL
Slide 15: Thank You for Listening
QUESTIONS THANK YOU FOR LISTENING OUR TICKER IS CZN LSE:CZN CORPORATE PRESENTATION WWW.CURZONENERGY.COM 14
Curzon Energy — Oil Capital Conference, London, 1 February 2018 on 6ix