Petro Matad Limited · LSE:MATD
Petro Matad — Investor Presentation (June 2018)
28 slides from Petro Matad's investor presentation, June 2018
Slide 1: High Impact Exploration in Mongolia
Corporate Presentation High Impact Exploration in Mongolia
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Petro Matad Limited (the Company) and is for information purposes only. Some statements contained in this presentation or in documents referred to in it are or may be forward-looking statements. Such statements reflect the Company’s current views wit
Slide 3: Board of Directors
Board of Directors Chief Executive Officer: Mike Buck ▪ 38 years of international E&P experience including 9 years as COO of Salamander Energy ▪ Proven track record of exploration success in S. America, N. Africa and Asia. Directly involved in the discovery of more than one billion barrels of recove
Slide 4: Corporate Overview
Corporate Overview Petro Matad Limited ▪ London, AIM Listed (MATD). Mongolia focused ▪ Experienced Board and Management Team Shareholders - Track record of discovering and monetizing oil/gas Petrovis + concert party fields Institutional ▪ Large acreage position held 100%, >60,000 km2 Private Investo
Slide 5: Extending and Expanding a Transformative Programme
Extending and Expanding a Transformative Programme Petro Matad is funded for a 4 well programme in 2018 ▪ Snow Leopard 1 (Block V) targeting c.90MMbo, spudding July 2018 ▪ Wild Horse 1 (Block IV) targeting c.480MMbo, spudding September 2018 ▪ Near field Gazelle prospect (Block XX) targeting c.13MMbo
Slide 6: Mongolia Overview
Mongolia Overview ▪ Central Asia’s only democracy after 70 years as a Soviet satellite ▪ Annual GDP is $12Bn and to date is heavily reliant on the mining sector ▪ Produces 21,000 barrels of oil/day (2017) from fields close to Chinese border including from Blocks XIX and XXI adjacent to Petro Matad’s
Slide 7: China: The Proven and Prolific Analogue
China: The Proven and Prolific Analogue Productive and Prospective Basins of East-Central Asia Recent Discovery Hilar-Tamsag Basin 0.5 Bbo Rec East Gobi Basin Mongolia 0.05 Bbo Rec Songliao Basin Tugrug Basin Proven Petroleum System 20 Bbo Rec Junggar Basin 10 Bbo Rec Erlian Basin 0.62 Bbo Rec Tarim
Slide 8: Regional E&P: Activity and Infrastructure
Regional E&P: Activity and Infrastructure Mongolian production ▪ In South and East ▪ Main fields discovered in 1990s, now operated by Petro China Limited Exploration ▪ Outside of the producing areas very limited drilling ▪ Only 3 exploration wells to date in all of Western Mongolia ▪ Very limited in
Slide 9: Asset Overview
Asset Overview Photo overlooking a portion of the Taats Basin, Block V. One of twelve prospective basins in Petro Matad’s Western Acreage 9
Slide 10: 2018 Programme: Blocks IV & V: High Impact Exploration
2018 Programme: Blocks IV & V: High Impact Exploration Wild Horse Snow Leopard (13/c.750MMbo) 2 c.480MMbo Block IV Block V 1 c.90MMbo (14/c.500MMbo) De-risked follow up to success (prospects/resource) ▪ 12 prospective basins ▪ Inventory of 55 Prospects and Leads * ▪ Source and reservoir outcrops on
Slide 11: 2018 Programme Block XX: Low Risk E&A Adjacent to Production
2018 Programme Block XX: Low Risk E&A Adjacent to Production 5 Lease line prospects, 3 high-graded: Gazelle, Heron, Antelope ▪ Covered by 2D and 3D seismic ▪ Continuations of producing trends/structures on Block XIX ▪ Internal estimates of 50-75% chance of success * XIX Productivity/Reservoir Improv
Slide 12: New Target: Fox Prospect, Tugrug Basin, Block V
New Target: Fox Prospect, Tugrug Basin, Block V Wild Horse Snow Leopard Fox (13/c.750MMbo) 2 c.480MMbo c.200MMbo Block IV Block V 3 1 c.90MMbo (14/c.500MMbo) Live Oil & 3D Seismic De-risked follow up to success (prospects/resource) ▪ Fox prospect located in eastern Block V in the Tugrug Basin ▪ Very
Slide 13: Proven Petroleum System: Tugrug Basin
Proven Petroleum System: Tugrug Basin Tugrug Basin TSC-1: Stratigraphic core hole (TD: 1,603m) ▪ Situated on basin margin ▪ Proved source and reservoir presence ▪ High porosity sands (10-30%). Good permeability in basal sands (50md+) Fox ▪ 40m of good quality source rock with 2-5% TOC Live oil stain
Slide 14: Fox Prospect Matured to Drillable Status
Fox Prospect Matured to Drillable Status Fox Prospect ▪ Large three way dip closure against normal faults ▪ Basin centre location ideal for source access ▪ 3,000m to crest ▪ Interbedded source and reservoir rocks TVD interpreted to form 0m the core of the structure ▪ Proven live oil in TSC-1 core 8k
Slide 15: Fox Prospect on the 3D Seismic
Fox Prospect on the 3D Seismic Reservoir: Early Cretaceous/Late Jurassic age. Seismically tied to TSC core hole Source: Organic rich mudstones interbedded with reservoirs Seal: Intra-formational shales and large offset on bounding faults promote sealing Prospective Resource Estimate in MMbo Mean P90
Slide 16: Red Deer Prospect, Block XX
Red Deer Prospect, Block XX Block XIX ▪ Multiple Basins in Block XX Production Area ▪ Interpreted to share the 2018 targets: geology of the producing Tamsag Basin to the Gazelle plus one Northeast ▪ 2018 drilling targets in the proven basin to the North ▪ Sizeable prospects and leads Red Deer identi
Slide 17: Red Deer Prospect – Matured to Drillable Status
Red Deer Prospect – Matured to Drillable Status ▪ Basin centre structure analogous to proven ▪ Drillable with the same rig that will drill 2018 structures in producing Tamsag Basin (Block XIX) wells ▪ 2,100m TD, stacked pay potential ▪ Ready to spud at start of 2019 drilling season Prospective Resou
Slide 18: Commercial Details
Commercial Details Block XIX Petro China Oil Production and Processing Facilities 18
Slide 19: Block XX: Route to Market
Block XX: Route to Market ▪ Neighbouring Blocks XIX and RUSSIA XXI production exported via dedicated trucking road ▪ Export costs are in the $5/bbl Toson-Uul XIX to $8/bbl range Ulaanbaatar Block XX ▪ Export in China continues by Daqing refinery road, rail or pipeline depending MONGOLIA Block XX pro
Slide 20: Block IV/V: Route to Market
Block IV/V: Route to Market RUSSIA ▪ Early production from Blocks IV/V is assumed exported by truck to refineries/buyers in MONGOLIA China Karamay Ulaanbaatar 1a ▪ Three routes are available, refinery Block IV Block V suited to the western, north- Proposed Dushanzi refinery refinery central and east
Slide 21: Success Case Economics: Block XX
Success Case Economics: Block XX ▪ 15 MMBO case based on success at Gazelle and Case 15 MMBO 50 MMBO a second prospect. 40 development wells, cost $2MM/well, productivity on start up 240 bopd per NPV10 ($MM) 80 312 well IRR % 42 48 ▪ 50 MMBO case based on success at Red Deer. 120 development wells a
Slide 22: Success Case Economics: Blocks IV/V
Success Case Economics: Blocks IV/V ▪ Base Case and High case resource potential Cases 50MMBO 150MMBO Recoverable Recoverable consistent with 2018 targets ▪ Development well count: Base 36, High 117 NPV10 ($MM) 451 1270 ▪ Early production via trucking to Chinese IRR % 100 114 refineries x Sensitivit
Slide 23: Conclusion – Extending and Expanding a Transformative Programme
Conclusion – Extending and Expanding a Transformative Programme Fully funded 2018/20191 drilling programme targeting c.850MMbo ▪ Blocks IV/V: 3 high impact basin opener exploration with evidence of working petroleum systems ▪ Block XX: 2 near field exploration and appraisal targets. Low cost to dril
Slide 24: 2018/2019 Work Programme
2018/20191 Work Programme ▪ 6 well programme – fully funded ▪ Break in the drilling programme due to winter weather shut down ▪ 5 risk independent basins, 850MMbo targeted ▪ Company funded through 20191 to complete evaluation of drilling programme and to plan the next phase 1 Fundraise subject to ap
Slide 25: Appendix – 2018 Drilling Targets
Appendix – 2018 Drilling Targets 25
Slide 26: First Well 2018: Snow Leopard Prospect, Block V
First Well 2018: Snow Leopard Prospect, Block V Post Rift Early K 20 MMbo Interbedded Source and Reservoir Potential Upside Late JR 70 MMbo Pre Rift Large upside potential in trapping style proven productive in Mongolia ▪ Snow Leopard has 2 main target sections with c.90MMbo recoverable potential (m
Slide 27: Second Well 2018: Wild Horse Prospect, Block IV
Second Well 2018: Wild Horse Prospect, Block IV Post Rift Late JR -K Potential Upside c.480 MMbo Early JR? Interbedded Source and Reservoir P-TR? – JR? Pre Rift Updip of largest identified source kitchen area with migration focus into the structure ▪ Prominent structure with large c.480MMbo (mid cas
Slide 28: Block XX: Gazelle Prospect
Block XX: Gazelle Prospect A Gazelle – Block XX A’ B Analogue Producing Field - XIX B’ On trend with the best producers in Block XIX B ▪ Prospect well located for good reservoir ▪ Depth to target 2200m A ▪ Drilling cost ~$2.5MM * Antelope B’ Wild ▪ Internal estimate of chance of success better than