Karoon Energy Ltd · ASX:KAR
Karoon Energy — Shareholder Meeting (November 2018)
28 slides from Karoon Energy's shareholder meeting presentation, Nov 30, 2018
Slide 1: Karoon Annual General Meeting
Karoon Annual General Meeting 30 November 2018
Slide 2: Section 1 – Corporate Review
Section 1 – Corporate Review Robert Hosking, Managing Director Karoon 2 Annual General Meeting
Slide 3: Corporate Overview
Corporate Overview Karoon is an oil and gas exploration company with assets in Australia, Brazil and Peru. The Company has been listed on the Australian Securities Exchange since 2004 and has a current market cap ~A$220 million. • A$333 million cash as at 30 September 2018, no debt. • Net 2C Conting
Slide 4: Karoon’s Strategic Vision
Karoon’s Strategic Vision Karoon’s strategic vision is to transform into a global Exploration and Production company with material production to underpin cash flow and enable cashflow generated exploration. Our Vision Our Strategy Expand portfolio to acquire a Transform from an high quality, cash fl
Slide 5: How will we make it happen? Strategic Pathway to Production
How will we make it happen? 1. Acquire high quality cash generating production asset Karoon’s Strategic 2. Bring existing assets Continued through development to development of Pathway to production Karoon’s portfolio Production 3. Targeted exploration Karoon 5 Annual General Meeting
Slide 6: Karoon’s Production Acquisition Aspirations
Karoon’s Production Acquisition Aspirations • Establish wider relationships to expand development and production to nearby discoveries Production asset • Make use of availability of economic redeployed with synergies to FPSOs existing portfolio • Simple low risk operations • Potential for up 50,000
Slide 7: Disciplined approach to high quality production acquisitions
Disciplined approach to high quality production acquisitions Building a portfolio of assets to sustain long term value and provide cash flow for further growth. Short term cash Cash flow to support Peru Long term cash available for exploration and flow to create investment, progress liquidity creati
Slide 8: Focus on prolific proven petroleum systems
Focus on prolific proven petroleum systems Karoon’s portfolio includes assets in some of the world’s most prolific basins. • Karoon’s Neon and Goiá (Echidna and Kangaroo) fields are in the Santos Basin which has an average undiscovered oil reserve of 60 billion barrels. • Campos Basin has an average
Slide 9: Majors continue to be attracted to Brazil
Majors continue to be attracted to Brazil The 2017/18 Brazil Bid Rounds saw significant interest from industry majors. Four pre-salt and two concession bid-rounds in 2017/18 resulting in: • 72 block acquisitions by 28 companies • ~BRL 28 bill bonus payments (US$7 billion) • Map shows main winning co
Slide 10: Why are we so focused on Brazil?
Why are we so focused on Brazil? Our 10 years of knowledge and working experience in Brazil places Karoon at an advantage when navigating regulatory regimes and searching for quality opportunities in the region. 44% (56 billion barrels) of conventional undiscovered oil in Latin America is in the pre
Slide 11: The changes improving investment opportunities in Brazil
The changes improving investment opportunities in Brazil • Petrobras no longer sole operator for pre-salt • New Local Content Policy for new bid rounds • New E&P policies Regulatory changes • Exploratory phase extension • Extension of REPETRO fiscal regime • Local Content Waiver for contracts up to
Slide 12: Cost conscious in a transformational time
Cost conscious in a transformational time • US$365 million work program expenditure reduced from Karoon’s 1 to 5 year exploration commitments • Joint Venture cost sharing on operated work programs in 2019 Work • Engagement with regulators led to a reduction in minimum guaranteed exploration programs
Slide 13: Global Oil Market
Global Oil Market Oil consumption growing in coming decades due to rising petrochemicals, trucking and aviation demand, requiring doubling of approvals of conventional oil projects*. 5 Year Weekly Europe Brent Spot Price FOB Dollars per Barrel (US$)** 140 120 100 80 60 40 20 0 *IEA World Energy Outl
Slide 14: Section 2 – Technical Review
Section 2 – Technical Review Mark Smith, Executive Director Exploration Karoon 14 Annual General Meeting
Slide 15: Brazil: Santos Basin, Neon & Goiá fields
Brazil: Santos Basin, Neon & Goiá fields Progressing field development planning and nearfield exploration target evaluations. • Currently planning for the Development and Production Phase ahead of FID. • Awaiting ANP approval of Annexation of the Area submission, which is required before Karoon can
Slide 16: Brazil: Santos Basin, Neon & Goiá fields
Brazil: Santos Basin, Neon & Goiá fields Subsurface summary with high quality 3D seismic. Neon Neon Neon PSDM RTM- Fullstack Amplitude map at Top PalB • Water depth: 300 m. • Reservoir depth: 1700 m. Contingent Resource (Statistical Aggregation), Oil (mmbbls) • Paleocene: 70 m net pay with 39°API li
Slide 17: Brazil: Santos Basin, Neon & Goiá fields
Brazil: Santos Basin, Neon & Goiá fields Progressing field development planning and nearfield exploration target evaluations. • Risk sharing and funding flexibility with possible deferred capex payment, equipment financing. • Aim to achieve a cost effective solution with expected opex of approx. $18
Slide 18: Brazil: Santos Basin, S-M-1537 Clorita prospect
Brazil: Santos Basin, S-M-1537 Clorita prospect Leveraging a decade of geological knowledge and operational experience in Bid Round 14. • The block is located in the Southern Santos Basin, a known oil and gas producing region in a water depth of less than 400m. • Targeting good quality Oligocene tur
Slide 19: Brazil: Santos and Campos Basins, New Ventures
Brazil: Santos and Campos Basins, New Ventures Leveraging basin expertise to target high potential pre-salt plays. Lula pre-salt field Santos basin, Brazil – Reserves Mapped pre-salt lead in open acreage, Brazil – Lula 7.381 billion barrels EUR lookalike Karoon 19 Annual General Meeting
Slide 20: Peru: Tumbes Basin, Z-38
Peru: Tumbes Basin, Z-38 Farmout success with offshore Peru heating up as a new industry focus. • Force majeure lifted from Block Z-38 in July 2018. • Karoon 40%* (Operator), Tullow 35%*, Pitkin 25%*. • Tullow farminee has a long established successful track record for exploration in frontier areas.
Slide 21: Peru: Tumbes Basin, Block Z-38 Marina Prospect
Peru: Tumbes Basin, Block Z-38 Marina Prospect Advanced geophysical studies have identified new targets. • Marina-1 Prospect drilling early 2020 with a gross prospective best estimate resource of 256mmbbls (net 102 mmbbls to Karoon)*. • Detailed mapping and seismic pore-fill attribute extraction str
Slide 22: Australia: Carnarvon Basin, WA-482-P
Australia: Carnarvon Basin, WA-482-P The right address: Australia’s newest oil province. • Permit extended with G&G work program only. • Karoon 50%, Quadrant/Santos 50% (Operator). • Large 13,539 sq km permit in an emerging oil prone area. • Farmed out 50% in 2014 and drilled Levitt-1 exploration we
Slide 23: Australia: Carnarvon Basin, WA-482-P
Australia: Carnarvon Basin, WA-482-P New high potential plays identified. • No anomaly at Levitt-1 consistent with well results at Top Legendre level. • Some structures with anomalies and some without (potentially fault breached seals). • Early analysis encouraging with more work to be done. Karoon
Slide 24: Australia: Carnarvon Basin, WA-482-P
Australia: Carnarvon Basin, WA-482-P New high potential plays identified. Seismic line-1 Seismic line-2 Levitt-1 Muderong Fm shales thicker and drape Muderong Fm shale is thinner and and smear extend over the fault faulted at Levitt-1 • AVO anomalies on Legendre Fm. prospects have been identified be
Slide 25: Australia: Browse Basin, WA-314-P
Australia: Browse Basin, WA-314-P Cooler outboard source rocks: wet-gas, condensate and oil-prone. • Karoon 100% (Operator). • Renewal term G & G studies next two years. • Reprocessed seismic data shows potential for Montara Formation liquids rich play with leads Gaia and Ally. • Prospect re-evaluat
Slide 26: Australia: Ceduna Sub Basin, EPP46
Australia: Ceduna Sub Basin, EPP46 Industry awaits NOPSEMA approval of drilling Environment Plan. • Karoon 100% (Operator), awarded October 2016. • Large, 17,649 sq. km permit in an emerging frontier, prospective oil and gas basin. • Equinor has re-affirmed their commitment to drilling a well in the
Slide 27: Summary: Key Pillars
Summary Continuing to work on 3 key pillars, with existing portfolio well placed to deliver on key pillars 2 and 3 – “Bringing existing assets through development to production” and “Targeted exploration”. Key Pillar 1: Focussed on production asset acquisition to fund exploration led growth strategy
Slide 28: Disclaimer
Disclaimer This presentation has been prepared by Karoon Gas Australia Ltd. The information contained in this presentation is for information purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial products. The information contained in this presen