Carnarvon Energy Limited · ASX:CVN
Carnarvon Energy — Carnarvon Petroleum — Good Oil Conference 2008
25 slides from Carnarvon Energy's conference presentation, Sep 2, 2008
Slide 1: Good Oil Conference
Good Oil Conference For personal use only September 2008 Presented by Ted Jacobson CEO
Slide 2: Carnarvon Snapshot
Carnarvon Snapshot For personal use only Capital Structure Directors & Management Ordinary Shares 673 million Chairman: Peter Leonhardt Options (ex @ 10c) 10 million Managing Director: Ted Jacobson Market Capitalisation: $300 million Non Exec Directors: Neil Fearis & Ken Judge (fully diluted @ 44c))
Slide 3: Carnarvon Project Areas
Carnarvon Project Areas For personal use only Production from onshore Thailand L44/43 Licence Thailand - Oil production, appraisal and exploration NV Focus on Thailand and surrounding countries Indonesia – Study group Evaluating new opportunities in Australia and South East Asia Australia - Ex
Slide 4: Thailand Reserves/Resources
Thailand Reserves/Resources For personal use only Rapidly growing Thailand oil reserves 11.4mmbbls 2P net recoverable reserves - increase in excess of 300% over the previous 12 months 45.7mmbbls 3P net recoverable reserves - large upside Doesn’t include recent new shallow oil discovery at Na S
Slide 5: Thailand Oil Reserves
Thailand Oil Reserves For personal use only Reviewed as at 31 December 2007 by independent consulting firm Gaffney Cline & Associates Ltd Over 300% increase in 2P reserves over 2007 OIL FIELD Proved Proved + Proved + Reservoir type THAILAND Probable Probable + Possible 1P 2P 3P Na Sanun East 2.2
Slide 6: Thailand Production
Thailand Production For personal use only Rapidly growing oil production Currently approaching 4,000 bopd net sales, an increase of over 1,000% over last 12 months Targeting 6,000 bopd net sales by end of 2008 calendar year NET PRODUCTION OPERATING COSTS Quarterly Production BOPD (Net) 6000 5000
Slide 7: Thailand Operations
Thailand Operations For personal use only Minimal Well Cost Well costs approx US$0.8mm ~ 20 days drilling trouble free Approx US$0.2mm per well to bring on production Very fast payback (at average flow rates - between 1 week to 1 month) Cost Effective Trucking Operation Trucking operation –
Slide 8: Thailand Cashflow
Thailand Cashflow For personal use only Oil Price PTT (Thai National Oil Co.) sales contract based on Singapore HSFO crude price Approx 85% of WTI - discount for wax content of oil Not hedged Operating Cost Operating costs per barrel decreasing with rising production rates ~US$1.60 per bar
Slide 9: Thailand Permits & Infrastructure
Thailand Permits & Infrastructure For personal use only Building a Long Term Business in Thailand New permit Oil L20/50 Production 50% 40% CVN 50% CVN 40% New applications 50% Simple operation Supportive Government 9
Slide 10: L33/43 & L44/43 - Overview
L33/43 & L44/43 - Overview For personal use only Carnarvon 40% - Pan Orient (Operator) 60% 2 rigs under long term contact 1 workover rig Wichian Buri Significant production and growing rapidly L33/43 Oil Field 6 mmbbls Significant reserves and growing rapidly L44/43 Bo Rang Gas discovery 7
Slide 11: Na Sanun East Field
Na Sanun East Field For personal use only North NSE 2P reserves of 20.69MM bbls (gross) 3 separate fault compartments – fractured volcanic reservoir 19 wells drilled to date with flow rates between 150 Central to 4,000 bopd per well NSE Full field development underway 3 development wells c
Slide 12: L33/43 & L44/43 - Upside
L33/43 & L44/43 - Upside For personal use only Reserves Upside – 3P Na Sanun East development 32 mmbbls 3P L33 prospects Wichian Buri development 9.8 mmbbls 3P Wichian Buri Oil Field 6 mmbbls L33/43 Resource Upside – 2C Bo Rang prospect L44/43 Na Sanun East resource 14 mmbbls 2C L44-F Bo Ran
Slide 13: Development Plan Update
Development Plan Update For personal use only 5 surface locations from which 14 wells will NSE-D be drilled in the Central fault compartment Drill Pads ~ 3 low angle deviated wells to be drilled NSE-E from each location Drill Pads Redundancy of wells will level out production variations from i
Slide 14: Na Sanun East Upside
Na Sanun East Upside For personal use only NSE North “A” A large part of NSE structure is undrilled Additional to published reserves estimates Undrilled Several wells planned for late 2008 NSE North “B” No reserves yet defined Resource estimates (recoverable net CVN): 2C 14mmbbls NSE Central
Slide 15: Fractured Volcanic Reservoir
Fractured Volcanic Reservoir For personal use only Image logs and drilling indicates major fracture system Massive lost circulation whilst drilling fracture reservoirs – e.g. up to 23,000 bbls lost drilling fluids in NSE-A4 Some fractures in excess of 1 metre thick Porosity comprises fractur
Slide 16: Structure and Faulting
Structure and Faulting For personal use only An extensive fault system With associated fracturing Time Slice from 3D Seismic 774 msecs level 3D Seismic Line Na Sanun East through Na Sanun East Na Sanun East 774 msecs LEGEND Faults Licence Boundaries 16
Slide 17: Geology
Geology For personal use only • Limited data available on the fractured reservoir igneous • Analogous Permo-Triassic and Tertiary volcanics outcrop throughout Central Thailand clastics • Some units exhibit extensive fracturing igneous • An integrated study is currently being undertaken.
Slide 18: Analogs
Analogs For personal use only Other Examples of Volcanic Reservoirs Jatibonico Field – Cuba: 1,200 wells into fractured serpentines Pina reservoir – Cuba: Production from Cretaceous tuffites Hilbigpool – Texas: Cretaceous palagonites McArthur River Field – Alaska: Jurassic tuffites & volcani
Slide 19: L44-R Oil Discovery
L44-R Oil Discovery For personal use only L44-R flowed ~ 30 bbls/day oil W E No fractured reservoir intersected in well Prospective Resource Estimates (CVN 40% - unrisked): 3.2MM bbls: 2C Not included in Dec 2007 Reserves Estimate Forward Plan – Drill L44-R2 and determine if fraccing and
Slide 20: Si Thep Appraisal
Si Thep Appraisal For personal use only Wichian Buri Oil Field 6 mmbbls L33/43 L44/43 New sandstone Producing prospects from Bo Rang sandstone Gas Field Na Sanun Oil Field 1 mmbbls 7 km Na Sanun East Oil Volcanic Field 21 mmbbls objective Si Thep Si Thep prospects Oil Field 1 mmbbls L44-R new discov
Slide 21: L44/43 Possible Reserves Growth
L44/43 Possible Reserves Growth For personal use only Over Next 12 -24 Months Carnarvon is: Appraising 65 mmbbls 2C net oil resource & further (possible) reserves Plus exploration from further drilling In addition to 11.4 mmbbls 2P net reserves already discovered (ie. proved plus probable) NET
Slide 22: 2008 Progress
2008 Progress For personal use only 10 wells drilled and completed for 2008 to date NSE-D Drill Pads Exploration wells NSE-E 1 successful (L44-R) and 1 failed (L33-3) - 50% success Drill Pads Appraisal wells NSE-B NSE-C 4 successful (L44-HD2, NS5-D1STH, POE-9A & NS3- Drill Pads Drill Pads D1ST
Slide 23: Drilling Programme
Drilling Programme For personal use only CONTINUOUS DRILLING NEXT 6 - 12 MONTHS Development wells on Na Sanun East Appraise resource area Na Sanun East Si Thep appraisal well Bo Rang appraisal well Exploration wells in L33/43 Further wells on Wichian Buri Field Order of wells depends on site prepara
Slide 24: Summary
Summary For personal use only 10 wells drilled, completed and tested for 2008 to date Currently drilling 2 development wells and testing 3 wells Targeting further 10-12 wells for remainder 2008 Development drilling of NSE underway Appraisal of further 31 mmbbls recoverable oil resources
Slide 25: Disclaimer
Disclaimer For personal use only The information is this document, that relates to oil exploration results and reserves, is based on information compiled by the Company’s Chief Operating Officer, Mr Philip Huizenga, who is a full-time employee of the Company. Mr Huizenga consents to the inclusion of