Mec Resources Ltd · ASX:MMR
Mec Resources — 60th Oilbarrel Conference, London (June 2013)
62 slides from Mec Resources's conference presentation, Jun 13, 2013
Slide 1: Company Presentation - Oilbarrel Conference, London
13 June 2013 For personal use only Companies Announcements Office Australian Securities Exchange Limited 10th Floor, 20 Bond Street SYDNEY NSW 2000 Dear Sir/Madam Company Presentation Oilbarrel Conference, London MEC Resources Ltd (ASX: MMR) is pleased to provide a copy of the presentation made by M
Slide 2: London June 2013
For personal use only London June 2013 Strictly private & confidential 1
Slide 3: ADVENT Gas Projects
ADVENT Gas Projects For personal use only EP386 + RL1 RL1 Unconventional Resources Onshore Bonaparte Basin 9.8 TCF prospective Recoverable Conventional Resources Milligans (shale) Conventional Weaber Gas Field: Resources 356 BCF Prospective 45.8 BCF 3C Contingent Resources Recoverable 2,734 km2 PEP1
Slide 4: Current Shale Gas Comparison Projects
Current Shale Gas Comparison Projects For personal use only Advent Energy’s 100% Owned ConocoPhillips: $109M Beach: $36 M JV Bonaparte Basin Acreage: Shale Gas JV with New with Territory Oil HESS: $65 M Shale Gas JV Standard Energy with Falcon Australia in Australia Beetaloo Basin •EP 386: 634,567 A
Slide 5: Company Overview
Company Overview Key Asset –Offshore Sydney Basin For personal use only Background Newcastle Formed in 2004 as an independent E&P company – Headquartered in Perth, WA – Portfolio of assets both onshore & offshore Australia with an estimated AUD 156m invested historically on exploration Sydney Corner
Slide 6: State of Onshore Bonaparte Basin
State of Onshore Bonaparte Basin Western For personal use only Advent gas Australia project area Economy of Western Australia is equal to Resource 50th biggest country projects globally underpinned by resources proximal to including LNG, Iron Advent gas Ore, Diamonds, project area Coal, Agriculture,
Slide 7: EP386 + RL1 Summary
EP386 + RL1 Summary For personal use only The Bonaparte Basin is a proven hydrocarbon producing basin representing 19% of Australian liquids and 17% of gas (2005 GA report). EP 386 and RL 1 are located on the southern, onshore part of the Bonaparte Basin and cover 2568km2 in Western Australia. Sourc
Slide 8: Australia Emerging Global Energy Giant
Australia Emerging Global Energy Giant For personal use only Estimated potential shale gas resources of 400 TCF LNG production expected to grow through frontier offshore exploration, onshore coal seam gas and rapidly expanding shale gas exploration sector Annual gas production (domestic consumption)
Slide 9: Demand vs. Supply MTPA Shortfall
Demand vs. Supply 145 MTPA Shortfall For personal use only Demand Supply India China MTPA Taiwan Korea Japan Source: CERA Global Redesign, Fall 2011, GDF SUEZ LNG Source: Australian Bureau of Agricultural & Resource Economics 2010, Wood Mackenzie, Deutsche Bank Japan, Korea, China and India represen
Slide 10: Current Market Landscape
Current Market Landscape For personal use only Strong demand of Natural Gas has driven LNG spot prices in Japan to reached $18 per MBTU Long term sales contracts from Australia to Japan and Twain are at prices of $10 MBTU Domestic prices of Natural Gas in West Australia have reached maximum prices o
Slide 11: ADVENT Oil and Gas Properties
ADVENT Oil and Gas Properties For personal use only Basin (location) Property/Date(6) Km2 Size Deposit(1)(2)(3) Type of Resources ADVENT 356 (1) BCF Conventional Gas 100% EP386 2017 2,568 Bonaparte (onshore ) 9.8 (1) TCF Shale Gas 100% RL1 2017 166 45.8 (2) BCF Conventional Gas 100% Sydney (offshore
Slide 12: EP386+RL1
EP386+RL1 For personal use only 500km 1,000km 11
Slide 13: EP386+RL1 Local CNG Customers
EP386+RL1 Local CNG Customers For personal use only CNG conventional prospective recoverable from EP386 & RL1 target for production Federal and State Government investment into the Kununurra/East Kimberley region exceeds $500 million and will bring infrastructure within 20km of the Vienta gas discov
Slide 14: EP386+RL1 Local CNG/LNG Customers
EP386+RL1 Local CNG/LNG Customers For personal use only Key assumptions: 100% substitution 100% conversion rate to LNG/CNG Sufficient gas available TJ/day Natural Gas Non risk weighted CNG market is capable of absorbing around 4-5 TJ/day of natural gas LNG LNG market is capable of absorbing around 1
Slide 15: This is an active hydrocarbon system
This is an active hydrocarbon system EP 386 & RL/1: 7 conventional gas discovery wells – Onshore High Technical Success Rate Well Well In Permit Held By For personal use only Classification Bonaparte- Oil & gas shows Advent Energy 1 Bonaparte- Gas Discovery Advent Energy 2 Keep Gas Discovery Beach E
Slide 16: Conventional / unconventional gas area and existing wells in EP386 / RL1
Advent’s conventional / unconventional gas area / existing wells in EP386 / RL1 and U.S.G.S. inset showing “pod of Active Source Rocks Boundary”- U.S.G.S. onshore mean 56 MMBO (oil) and 460 B.C.F Gas Undiscovered Resource – Conventional Resource Assessment For personal use only 15
Slide 17: Adjacent tenure: Beach Petroleum farmin
For personal use only Adjacent tenure: Beach Petroleum farmin Reg Nelson [Beach Petroleum] ‘scouring Australia for the most prospective shale gas acreage.’ Beach Petroleum (ASX: BPT): “Working petroleum systems have been identified and confirmed by: strong hydrocarbon shows in the few exploration we
Slide 18: Waggon Creek-1 workover and production test gas flow
For personal use only Waggon Creek-1 workover and production test gas flow November 2011 (from 390mKB). Conventional s/stone reservoir-Stabilised flow of 1.1 MMscf/d through 32/64th” choke Pressure monitoring demonstrated slowly increasing pressure at the end of the flow test. Continued production t
Slide 19: Vienta-1 workover and production test gas flow
For personal use only Vienta-1 workover and production test gas flow October 2011 – damaged well bore/tight gas Initial flow 2.1 MMscf/d, reducing to 0.6 MMscf/d within 1 hr, 18/64th” choke Shut in and extended build-up pressure monitoring returned strong pressure recovery 18
Slide 20: Bonaparte Basin: Key Information
Bonaparte Basin: Key Information For personal use only Carboniferous Milligans Formation: Tight Gas, Shale Gas & Liquid Hydrocarbon Potential Key gas-prone source rocks Over 500m marine shale/mudstone TOC up to 4.3% Mature for oil and gas generation Elevated gas shows while drilling through the shal
Slide 21: Bonaparte Basin EP / RL-1 Shale and tight gas exploration
Bonaparte Basin (WA/NT) EP 386 / RL-1 Shale and tight gas exploration For personal use only Multiple petroleum targets are present in EP 386 & RL1 Vienta-1: Elevated Gas Shows over mid-Upper area: & Lower Milligans Section Proven conventional gas charged sandstone reservoirs in nearshore marine area
Slide 22: Ningbing-2: Elevated Gas Shows
Bonaparte Basin (WA/NT) EP 386 / RL-1 Shale and tight gas exploration For personal use only Ningbing-2: Elevated Gas Shows over Bonaparte Basin, Australia Lower Milligans-Langfield Section Wide distribution of oil and gas shows and tests throughout basin Advent Energy has 100% of EP 386 & RL 1 inclu
Slide 23: Weaber-4 (RL1): Elevated Gas Shows
Weaber-4 (RL1): Elevated Gas Shows over Upper & Lower Milligans Section For personal use only Elevated gas shows over 600m in shale/siltstone section. TOC from Lab matched well with computed value from logs and maximum TOC value can be up to 5% (right column). 22
Slide 24: Garimala-1: Elevated Gas Shows
Garimala-1: Elevated Gas Shows over Milligans-Langfield Section For personal use only Elevated gas shows over 1700m in shale/siltstone section. TOC from Lab matched well with computed value from logs and maximum TOC value can be up to 5% (right column). 23
Slide 25: Waggon Creek-1A: Elevated Gas Shows
Waggon Creek-1A: Elevated Gas Shows over Milligans Section For personal use only Elevated gas shows over 800m in shale/siltstone section. TOC from Lab matched well with computed value from logs and maximum TOC value can be up to 5% (right column). 24
Slide 26: For personal use only
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Slide 27: Near term field development opportunity
Bonaparte Basin (WA/NT) EP 386 / RL-1 For personal use only Near term field development opportunity The Bonaparte Basin: – A proven and producing hydrocarbon bearing sedimentary basin Summary of Previous Drilling Results – Onshore Basin straddles the Northern Territory & Western Australia Border Adv
Slide 28: EP 386 Shale Gas Unrisked Gas In Place Estimates
Bonaparte Basin (WA/NT) EP 386 / RL-1 Shale and tight gas exploration For personal use only EP 386 Shale Gas Unrisked Gas In Place Estimates Lower Milligans Fm EP 386 & RL 1 Parameters Unit Low Best High Area - A Acres 197,683 296,525 345,946 Pay Thickness -h Ft 1310 1640 1968 Net to Gross Ratio - r
Slide 29: EP & RL/1: Prospects/Lead Summary
EP 386 & RL/1: Prospects/Lead Summary (showing Seismic lines) - mean conventional recoverable 556 BCF For personal use only Prospect on Top Ningbing Grp Prospect on Top Langfield Grp Unrisked OGIP & Prospective Recoverable Conventional Hydrocarbon Prospect on Top Lower Milligans Fm Resources in EP38
Slide 30: EP386 / RL1 Gas Composition
EP386 / RL1 Gas Composition compared with industry standard For personal use only Industry Bonaparte- Garimala-1 Average Ningbing-2 Ningbing-2 Weaber- Weaber- 2 (DST No6: (DST No2: Waggon Name Unit Natural Gas (DST No3: (DST No5: Vienta-1 EP 386 Average 1 4 4712- 2381- Creek-1 Composition 535-598m)
Slide 31: Bonaparte Basin - A Proven Hydrocarbon Producing Basin
Bonaparte Basin- A Proven Hydrocarbon Producing Basin For personal use only EP386 & RL1 Gas Reservoirs 30
Slide 32: Advent in mineral resource rich developing area
Advent in mineral resource rich developing area Sorby Hills is the For personal use only largest undeveloped silver-lead deposit at open cut depth in Australia and is jointly owned by Kimberley Metals (75%) and China’s largest lead and silver smelter, Henan Yuguang Gold and Lead Company Ltd (25%). P
Slide 33: Proximity To Infrastructure
For personal use only Proximity To Infrastructure Stage Two of the Ord River scheme has significantly enhanced road access to the Vienta Gas Field Stage Two Ord roads capable of road train access are to be constructed during 2012/2013 - allows for construction CNG /MINI LNG WA Govt. has already comm
Slide 34: Infrastructure Access
Infrastructure Access EP386 Vienta Gas Field Ord Stage For personal use only Two Possible site for LNG/CNG Plant Current development phase In Stage Two of Ord Scheme outlined in Field Development Outline for Weaber Plain on WA side of border Ord Stage One Existing New Ord Stage Two Road completion i
Slide 35: Onshore Conventional Gas Fields - RL & EP386
For personal use only Onshore Conventional Gas Fields – RL 1 & EP386 Waggon Creek Gas Field (Cased & Suspended as Weaber Gas future producer) Field: Independently Audited Mean Contingent Resource of Vienta Gas 18.4 Bcf Field (Cased & Suspended as future producer) Planned future Existing Wyndham (50k
Slide 36: LNG Production, Storage, Distribution & Use
LNG Production, For personal use only Storage, Distribution & Use
Slide 37: CNG Production, Storage, Distribution & Use
For personal use only CNG Production, Storage, Distribution & Use
Slide 38: Gas Pipeline - EP & RL1
Gas Pipeline – EP 386 & RL1 For personal use only Gas Pipeline study Engineering Study Low CO2 analysis – Advent Energy assets EP386 + RL1 4” production supply pipeline considered to CNG Distance – approx 15-25 km to CNG plant Diesel cost A$1.00/L – equivalent to A$26/GJ Significant benefit in pipel
Slide 39: Lake Argyle Ord Irrigation Area Phase II
Lake Argyle Ord Irrigation Area Phase II For personal use only Lake Argyle: Surface area of 1,000 square km (18 times the size of Sydney Harbour) Storage capacity of 10,763,000 ML Largest reservoir in Australia 38
Slide 40: PEP11 - 85% Interest
PEP11 – 85% Interest For personal use only Offshore Sydney Basin contains all the elements seen in other producing, world class petroleum basins, including prospective recoverable resources of 5.7 TCF (P50) in structural targets Permit covers 4,649 km2 on the doorstep of NSW energy market & extensiv
Slide 41: Progress through involvement of Advent
Progress through involvement of Advent Advent farmed into a 25% interest in 2006 through acquisition of 2004 seismic, and increased interest to For personal use only PEP11 Permit History & Progress 85% following drilling of New Seaclem-1 in 2010 Significant geological & geophysical work completed si
Slide 42: Significant Hydrocarbon Potential proven by Industry Standards
For personal use only Significant Hydrocarbon Potential proven by Industry Standards The permit’s potential is evident in the significant and complimentary hydrocarbon & migration features Features Observed Across Permit observed Direct hydrocarbon indicators identified in seismic data – high amplit
Slide 43: Analogues to Major Discoveries
For personal use only Analogues to Major Discoveries Similarities in shelf surface features, including pockmarks and slope failure events, between the Offshore Sydney Basin, the giant Gorgon 16 Tcf field off North-western Australia and the 14 Tcf Ormen Lange field off Norway ~16 Tcf Ormen Lange Gas
Slide 44: Heggland - Fluid Migration - Gulf of Mexico (Statoil Model)
Heggland -Fluid Migration-Gulf of Mexico (Statoil Model) Chimneys and pock marks indicating focus areas of fluid flow above the top reservoir For personal use only •“seismic chimneys are visible in 90% of all Mesozoic and Tertiary basins.” •Gas chimneys have been observed to tie in to features assoc
Slide 45: Geophysical Gas Indications
For personal use only Geophysical Gas Indications TOPAS Sub bottom profiles from SS10 / 2006 2011 PEP11 Permit Boundary Shown
Slide 46: Thermogenic hydrocarbon seepage offshore NSW
Thermogenic hydrocarbon seepage offshore NSW For personal use only Gas seep seafloor Offshore Sydney Basin, NSW Gas Chimney? Mound on 81-05 B4-15 (Reprocessed)
Slide 47: Three Significant Deep Prospects with Multi-TCF potential
For personal use only Three Significant Deep Prospects with Multi-TCF potential Permian/Triassic Prospect Locations Contains all the elements for success needed in world class sized structure in Gas Pipeline Infrastructure PEP11 Relatively shallow water depth 50- 120 m The prospects lie between dept
Slide 48: B4-16 Preliminary Final PSTM (Zoom)
B4-16 Preliminary Final PSTM (Zoom) For personal use only Data reprocessing from phase 2, 2009 indicates a flat spot on the time processing within structure on line B4-16 which may warrant further investigation. Area of interest is cmp 900 to 1060 (2 km) at a time of 1500ms and 1700ms. Note polarity
Slide 49: Offshore Sydney Basin - Direct Hydrocarbon Indicators PEP11
Offshore Sydney Basin – Direct Hydrocarbon Indicators PEP11 For personal use only Figure 74: RMS of seismic amplitude over the Figure 72: Instantaneous frequency plot for the high amplitude area of Line B4-15, where high amplitude reflector reflector. It is showing low frequency anomaly. is mapped.
Slide 50: Offshore Sydney Basin - Direct Hydrocarbon Indicators PEP11
Offshore Sydney Basin – Direct Hydrocarbon Indicators PEP11 For personal use only Figure 69: Display of Line B4-15. Figure 70: The continuity of high amplitude reflector has been mapped. Reflection Strength plot of the high amplitude reflector “Strong energy reflections present on “Gas reservoirs, i
Slide 51: Significant AVO Leads Surrounding Major Prospects
For personal use only Significant AVO Leads Surrounding Major Prospects Paleozoic Trap Summary Map AVO is a recognized methodology employed by major oil companies to identify exploration potential Independent analysis of extracted AVO attributes Great White & Marlin from recently reprocessed 2004 su
Slide 52: Fish - Drilling Target in the Deep Horizon PEP11
For personal use only Fish –Drilling Target in the Deep Horizon PEP11 A large north-south elongated anticline with three Proposed South Fish Exploration Well separate structural culminations, adjacent to the Offshore Syncline (the hydrocarbon source) – 2 Tcf (P50) with 21% Probability of Success (Po
Slide 53: Conventional Prospects in Advent Portfolio
For personal use only Conventional Prospects in Advent Portfolio Excluding unconventional resources Advent Gross Prospective Recoverable Gas Resources Gross Prospective Recoverable Condensate Probablility of Block Asset GIP Bcfg interest Bcfg Resources MMbo Success Swansons Swansons Swansons % P90 P
Slide 54: Shareholding Structure
Shareholding Structure For personal use only 16,782,094 14,000,000 11% 10% MEC Resources Ltd Grandbridge Ltd BPH TGH 65,701,240 44% Others 40,120,000 11,750,000 27% 8% 53
Slide 55: ADVENT Management Team
ADVENT Management Team For personal use only Board, Management/Technical Team & Engineers Board Management and Technical Advisors Mr. Goh Hock: Chairman Mr. Ding Gui Ming: Advisory Panel Chairman Previous President of Schlumberger Asia. Managed all Asian Formerly Head of Exploration, China National
Slide 56: ADVENT Management Team
ADVENT Management Team For personal use only Industry Leading Geological & Geophysical Experts Geological & Geophysical Engineers Mr Timothy Berge Mr. Lan Nguyen BSc (University of Wisconsin, Madison) BSc (Baku, Azerbaijan) MA - Geology (University of Texas at Austin) MSc - Geology (New England Univ
Slide 57: ADVENT Energy Ltd. - Summary
ADVENT Energy Ltd. – Summary For personal use only ADVENT four key petroleum titles contain all the elements seen in Late stage Exploration with other producing, world class petroleum basins, and have an aggregate prospective recoverable resources of up to 15 TCF (P50). early stage Production wells
Slide 58: Public Disclaimer
Public Disclaimer For personal use only This company presentation (the “Company Presentation”) of Advent Energy Limited (the “Company”) has been prepared by the Company solely for information purposes and for the sole use of the person to whom it is delivered. The Presentation is prepared for discus
Slide 59: Risk Factors
For personal use only Risk Factors A number of risk factors may adversely effect Advent Energy Limited (the “Company”). Below is a brief summary of some of the general risk factors prospective investors should consider when determining whether an investment in the Company is suitable, and to which t
Slide 60: Risk Factors continued
For personal use only Risk Factors continued The Company is subject to environmental and HSE risks. All phases of the oil business present environmental risks and hazards, and the oil and gas business is subject to environmental regulation pursuant to a variety of international conventions, as well
Slide 61: Risk Factors continued
For personal use only Risk Factors continued Risk of damaged equipment and insurance policies. It is not certain that all potential incidents will be covered by existing insurance policies or that the sums insured under such coverage will be sufficient to hold the Company harmless from the loss occu
Slide 62: For personal use only
For personal use only David Breeze Advent Energy Limited Ph +61 8 9328 8711 david@adventenergy.com.au Director 14 View Street Fax +61 8 9328 8733 www.adventenergy.com.au North Perth WA 6006 Australia
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