Carnarvon Energy Limited · ASX:CVN
Carnarvon Energy — Carnarvon Petroleum — Good Oil Conference 2012
29 slides from Carnarvon Energy's conference presentation, Sep 4, 2012
Slide 1: Corporate Presentation - ASX Announcement
Corporate Presentation 4 September 2012 For personal use only ASX ANNOUNCEMENT Carnarvon Petroleum Limited (“Carnarvon”) (ASX:CVN) is pleased to provide shareholders with the attached Corporate Presentation given by Mr Philip Huizenga, Carnarvon’s Chief Operating Officer, at the Good Oil Conference
Slide 2: Introduction and change of operator
For personal use only Hello and welcome. Today I am going to concentrate my talk on our production assets onshore Thailand in the Phetchabun basin. Recently our partner, Pan Orient, sold their 60% operating share to ECO investments, a subsidiary of US$20 billion Hong Kong listed Hong Kong and China
Slide 3: Disclaimer
For personal use only This is our usual disclaimer. I would like to emphasise the “forward looking statements” clause as essentially I will be talking about the future potential rather than on the historical results. 2
Slide 4: Company background and market cap
For personal use only By way of background, Carnarvon Petroleum is listed on the Australian Stock Exchange, with a share price ranging from 9 to 11c recently resulting in a market cap of around $70 million. We have around $7 million in the bank, no debt and operating cash flow from the production in
Slide 5: Focus on Thailand producing assets
For personal use only While Carnarvon has world class assets in the Phoenix blocks in the North West of Australia, today I will focus on our producing assets onshore Thailand. 4
Slide 6: Phetchabun basin location
For personal use only Carnarvon is currently active in three basins onshore Thailand, however our producing fields are all located within the Phetchabun basin, which is located around 200km north of Bangkok. 5
Slide 7: Operational aspects of the assets
For personal use only Just a reminder about the operational aspect of these assets. There are currently some 15 producing oil fields consisting of stacked reservoirs that range in depth from around 1,200 m to as shallow as 250m. The sweet spot for production is in the 500 to 700 m range. Operating o
Slide 8: Discovery history and 2P reserves
For personal use only While there has been production in this basin since the mid 90’s, and Carnarvon has been a 40% partner in these blocks since the year 2000, the real excitement commenced with the POE-9 fractured igneous discovery in 2007 which flowed at rates of around 350 bopd. Since that peri
Slide 9: New exploration phase area
For personal use only As of July this year we renewed the next phase of exploration for these blocks in the Phetchabun basin with a new 5 year exploration program. The area for exploration covers the central, oil prone section of the basin. 8
Slide 10: Remaining exploration area and oil in place
For personal use only The remaining exploration area, after some relinquishments, still totals a large area of around 1,000 km2. This remaining exploration area is all outside the current production area of 100 km2. To put this into perspective, the 100km2 of production licence areas originally cont
Slide 11: Proposed 3D and 2D seismic program
For personal use only Along with the new 5 year exploration period we proposed to the government of Thailand a new 5 year exploration program. The exploration program consists of an additional 200 km2 of 3D data as highlighted in the dashed blue, and some new 2D to the North. The 3D in the area in t
Slide 12: Optimising exploration and development
For personal use only So with extensive exploration acreage with significant exploration upside, proved and probable reserves exceeding 30 million barrels, sandstone and fractured igneous reservoirs, our question for ourselves and our partners is how do we optimise our exploration and development pr
Slide 13: Focus on fractured igneous reservoirs
For personal use only Initially, exploration, appraisal and development activities were focussed on the high flow rate potential fracture igneous reservoirs. Since the 2007 POE-9 well flowed in excess of several hundred bbls of oil per day, the joint venture has been concentrating on these reservoir
Slide 14: New operator ECO
For personal use only As I touched on earlier, our new partner, and operator of the Phetchabun assets is a company callled ECO. ECO are a wholly owned subsidiary of Hong Kong and China Gas Company Ltd, a substantial US$20 billion Hong Kong listed company. ECO, which was established early 2000, focus
Slide 15: ECO's new approach and oil development plan
For personal use only ECO intend to introduce a whole new approach to the exploration, exploitation and development of the Phetchabun basin fields and extended exploration acreage. This incorporates, for the first time in the joint venture, multi-disciplined teams reviewing not only all the existing
Slide 16: Fractured igneous reservoir potential
For personal use only What will be the difference between what has been done before and what is proposed now? Let me give you an example, and also that will lead into an example on what is the potential from a change of operator. Without doubt, the fractured igneous reservoir is the unconventional p
Slide 17: Fractured igneous reservoir detail
For personal use only A bit more detail in what we mean by these fractured igneous reservoir. Essentially it is a combination of micro matrix porosity and macro fracture porosity. The macro fractures are literally sections were the rock is cracked and missing, and there have been instances where we
Slide 18: Ingredients in place
For personal use only So all the necessary ingredients are now in place. Significant oil (circa 400 million bbls oil in place), prolific flow rate potential, exploration acreage and new data being acquired, a new operator in place. But where to next? 17
Slide 19: Shift to technology driven development
For personal use only The development requires a shift from a statistical model to a technology driven model. What was a good execution project but lacked some feedback used a “ventilate the earth” approach to reservoir development. This was successful in the early days but we struggled through the
Slide 20: Execution factory and design factory
For personal use only I have borrowed this slide from an approach to unconventional shale gas development – but the concept to fractured igneous is similar. Previously we had been predominantly operating in the Execution Factory. Our execution phase, that is to drill and complete wells, has always b
Slide 21: Sirikit field change of operator example
For personal use only So far all this is has been theoretical – so let me show you an example from just to the West of our producing fields of what is possible. The Sirikit field onshore Thailand in the Phitsanulok basin is an excellent example of what is possible with a change of operator. The Siri
Slide 22: Current work program
For personal use only Carnarvon is working closely with the new operator ECO to develop an overall oil development plan. However, we are continuing work on the field to increase production while waiting for the ODP. The WBEXT sandstone development program has commenced. We are undertaking a few obvi
Slide 23: WBEXT sandstone development
For personal use only The WBEXT sandstone development has commenced. If I recall – this time last year I was up here saying that environmental approvals for the 60 odd production wells were imminent. Well the Environmental Impact Assessment, or EIA, that was submitted around this time last year was
Slide 24: Well review example
For personal use only Here we see an example of what is possible from an overall review of all wells. This is a well that was drilled back in 2006 as part of the original sandstone redevelopment of Wichian Buri. It originally flowed around 60 bopd and has cumulative production of just over 40,000 ba
Slide 25: Infill fractured igneous wells
For personal use only There are still infill fractured igneous locations. As mentioned earlier, the overall plan for these wells has gone from looking for the biggest hitters, with associated high risk, to more sure wells albeit potentially lower rates, but still in the range of 200-500 bopd. This i
Slide 26: Exploration well example
For personal use only Exploration is still part of the mix and this well, due to be completed soon, is a good example of where we have multiple targets. This has both sandstone and igneous targets. The sandstone is intriguing as the sand was first targeted in the Na Sanun West well that unfortunatel
Slide 27: Production outlook and 2012 exit rate
For personal use only So, while we are waiting for the ODP which will give us a road map of how to develop the 30 million barrels of gross 2P reserves, the joint venture continues to work on increasing production. From our current rate of around 1,400 bopd, we see near term increases from bringing t
Slide 28: Conclusion
For personal use only In conclusion, the title of my talk was how much difference can a new operator make. Initial signs are very positive with sandstone development commenced and on prognosis, and as I mentioned the new operator did change downhole location of first well, sensible igneous program a
Slide 29: Thank you
THANK YOU CARNARVON PETROLEUM EID 28