Key Petroleum Limited · ASX:KEY
Key Petroleum — Investor Presentation (July 2009)
22 slides from Key Petroleum's investor presentation, Jul 20, 2009
Slide 1: Presentation Disclaimer
For personal use only PRESENTATION DISCLAIMER The information in this presentation is an overview and does not contain all information necessary for investment decisions . In making investment decisions, investors should rely on their own examination of Key Petroleum Ltd and consult with their own l
Slide 2: Location of Key Petroleum's Assets
LOCATION OF KEY PETROLEUM’S ASSETS For personal use only UK Onshore Oil fields Slide 2
Slide 3: For personal use only
• 32 yrs + oil & gas experience For personal use only Ted Ellyard • Chairman / CEO of ASX / AIM companies Chairman • Hardman Resources, Minemakers, Bonaparte, others • Creator of shareholder wealth • 35 yrs + international oil industry experience Ken Russell • Schlumberger, Shell, BHP Petroleum, Che
Slide 4: For personal use only
Shares on Issue 86 Million Trading Range 11 to 21 cents For personal use only Options Unlisted 5,000,000 @ 50 cents / 750,000 @ 20 cents) Market Cap Approx $15.5 Million (16/07/09) Debt Level Nil Cash on Hand $2.00 Million - plus (AUD$) income from oil production ≈ $1.875 MM yr / $156k mth (at US$60
Slide 5: Share Price Movements
SHARE PRICE MOVEMENTS For personal use only Previous 6 Months Share Price Chart Current Months Share Price Chart 17 July 2009 Slide 5
Slide 6: Amount to be Raised (AUD): 4.73 MM
AMOUNT TO BE RAISED (AUD) : 4.73 MM On a 1 for 2 basis, @ 11 cents / share, adding = 43 Million Shares For personal use only Total Shares then on market = 129 Million CAPITAL REQUIRED TO FUND; Drilling Of Horizontal Well In Lidsey Oil Field Increase Daily Oil Production Estimated cost = 3.50 M
Slide 7: For personal use only
For personal use only Brockham Oilfield Kimmeridge Producing since 1950’s BP - Wytch Farm Largest onshore UK oil field Lidsey Oilfield Weald Basin - General Area Produced to date over 400 MM Number of oil and gas fields bbls. Peaked at over 100,000 bbls including the Lidsey and oil /day Brockham Oil
Slide 8: Potential Farm-in Opportunities Surrounding Producing Fields
For personal use only Potential Farm-in Opportunities Surrounding Producing Fields. At least 4 wells planned in adjacent acreage Slide 8
Slide 9: Acquisition Costs and Potential Return on Investment
ACQUISITION COSTS (AUD$) • Purchase of UK Company & Oilfields 4.00 • Cost to Drill 1 x Horizontal Well 3.50 For personal use only • Workover on Br-4 1.00 • Total Outlay $8.50 POTENTIAL RETURN ON INVESTMENT (AT US$60 / BBL); • Lidsey - 343,000 bbls recoverable 25.75 • Brockham – 485,000 bbls recovera
Slide 10: For personal use only
For personal use only • Leverage To Oil Demand • Price Of Oil Assumptions - Demand Expected To Increase • Field Size To Expand • Production Increase By Up To 500 Bbls / Day • 100% Owned and operated by Key Petroleum • Providing Cash Returns To Company • Activity in Adjacent Areas • Provides Interest
Slide 11: For personal use only
For personal use only Brockham Facilities / Surface Lease Brockham -2z Horizontal Well Path Slide 11
Slide 12: For personal use only
Lidsey Facilities / Surface Lease For personal use only Lidse Lidsey -2z y -2z Horizontal Well Path Slide 12
Slide 13: For personal use only
For personal use only Slide 13
Slide 14: Lidsey-2Z Well Design
LIDSEY-2Z WELL DESIGN The Upside Interest ! For personal use only Good source for oil potential The Upside Interest ! Horizontal Well Trajectory The Upside Interest ! 50 ft Section previously bypassed Slide 14
Slide 15: Work, Timing, Cost and Upside
WORK WHEN COST (TO KEY) UPSIDE (US$MM) (US$MM) For personal use only Drill 1 x Hrz well – 2010 2.80 16.5 Lidsey Oil Field (1 Qrt) Workover x 1well – 2010 0.80 29.00 Brockham Oil Field (1 / 2 Qrt) Drill 2 x wells Kiliwani Access to ›300 - 500 North & Nyuni (20%) 2010/2011 7.00 (or Nil) Bcf in Nyuni B
Slide 16: For personal use only
• Key has positioned itself into a prospective area directly next to For personal use only the main producing gas field along the whole length of the east coast of Africa. • Interest in Tanzania’s energy potential has increased with all the offshore areas taken up with a large number of majors invol
Slide 17: For personal use only
For personal use only • 20% Interest • New Gas Field at Kiliwani North (flowed at 40 MMscf/day) • 2 Tcf undiscovered gas in block (est.) • Directly east of Songo Songo Gas Field • Area 1,300 km2, • Adjacent pipeline and infrastructure built in 2003. • Water depths range from 0 to in excess of 500m o
Slide 18: For personal use only
For personal use only Key Petroleum 50% interest and Operator :- • 2 well programme in first 3 years, 2nd well contingent on success of first well. • Approx 235 km of 2D seismic undertaken in 2005. • 4 large structures already identified from pre 2005 seismic Area 505 km2, immediately west of prod
Slide 19: For personal use only
Offshore ~ 100% For personal use only Lampadusa x 2 Blocks ~ Bordering Tunisian Waters, Several mapped closures, Potential for 10 ~ 50 million bbls recoverable, 30 km SE from Halk El Menzel Discovery, Water Depths: 40 ~ 120m West Sardinia ~ Potential for Oil and Gas, Water depths: 50 ~ 200m Elba Sou
Slide 20: Lampedusa, West Sardinia & Elba South
For personal use only Lampedusa, West Sardinia & Elba South Forward Plan; Obtain further Seismic Work Up Prospects, Actively Seek Farm-in Partners for Drilling Prospectivity of Lampedusa increased with companies such as Cairn Energy and Shell entering the Sicily Channel region 3D seismic underta
Slide 21: For personal use only
• 1.75% free carried interest in 2 Blocks through 25 exploration wells. • Participants - Paradise Oil 60% (Govt.), Hardman 36.5% (Now Tullow Oil) and with an indirect interest, Portsea Oil & Gas 3.5% (50% owned by Key Petroleum) • Low Cost, Low Risk onshore plays For personal use only • Adjacent Tam
Slide 22: For personal use only
For personal use only ¾ Tanzania ¾ Commercialisation of Kiliwani North gas discovery. ¾ Exploration in West Songo Songo block ¾ West Songo Songo development opportunities ¾ Italy ¾ Finalization of conversion from Application to Permit status for Italian offshore blocks - imminent ¾ Actively pursuing