88 Energy Limited · ASX:88E
88 Energy — Investor Presentation (September 2016)
23 slides from 88 Energy's investor presentation, Sep 5, 2016
Slide 1: Project Icewine, North Slope of Alaska
PROJECT ICEWINE NORTH SLOPE OF ALASKA For personal use only PROJECT ICEWINE SEPTEMBER 2016 ICEWINE#2 DESIGN REVISION & PRELIMINARY 2D SEISMIC
Slide 2: Disclaimer
Disclaimer For personal use only The information contained in these slides has been prepared by 88 Energy Limited (the “Company”). The information contained in these slides, the presentation made to you verbally and any other information provided to you (in writing or otherwise) in connection with t
Slide 3: Disclaimer (cont.)
Disclaimer (cont.) For personal use only Any failure to comply with this restriction may constitute a violation of securities laws. No action has been or will be taken by the Company that would permit a public offer of its securities in any jurisdiction in which action for that purpose is required.
Slide 4: Icewine: World Class Location, World Class Prize
Project Icewine: World Class Location, World Class Prize For personal use only Alaskan Armstrong/Repsol Explorers: 1.4b barrels (2C) CY2015#4 Kuparuk River Prudhoe Bay 3.5b barrels#3 15b barrels#3 Alpine 0.7b barrels#3 BP Caelus ConocoPhillips ENI Repsol 70 & 148 Great Bear ** ICEWINE#2 LOCATION Exx
Slide 5: Company Snapshot
Company Snapshot Corporate For personal use only 88 Energy Limited Current 88E Board and Management Burgundy Xploration (ASX, AIM: 88E) JV Partner Shares on Issue 3,893m David Wall Managing Director Paul M. Basinski, Founder & CEO Options on Issue 548m Michael Evans Non-Exec Chairman Michael R. McFa
Slide 6: Icewine Highlights
Project Icewine Highlights For personal use only PREMIER ACREAGE POSITION IN STRATEGIC TIER 1 LOCATION • 271,119 gross acres (210,250 net to 88 Energy) • First acres leased by Burgundy Xploration in 2012 - expanded in 2015 / 2016 in Joint Venture with 88 Energy • Acreage straddles the Dalton Highway
Slide 7: Phase II - Icewine#2 Appraisal Well
Phase II - Icewine#2 Appraisal Well Vertical Multi Stage Stimulation Franklin Bluffs Drill Pad Icewine#2 Overview – Spud 1Q2017 For personal use only Tundra surface Gravel fill Cellar hole Base Cellar • Well Design Revision: Pivot to integrated vertical well design 20" Conductor Shoe • Optimises ach
Slide 8: Phase II - Icewine#2 Vertical vs Lateral Considerations
Phase II - Icewine#2 Appraisal Well Vertical vs Lateral Considerations For personal use only Vertical Lateral Objective Comment Well Well Test production potential of Vertical will evaluate flow potential of entire YES PARTIAL HRZ/HUE HRZ/HUE interval Vertical will determine reservoir fluid HRZ/HUE
Slide 9: Icewine New 2D Seismic Acquisition
Project Icewine New 2D Seismic Acquisition For personal use only Great Bear / Otto Energy multi-well drilling planned 1H2017 ICEWINE#2 SPUD 1Q2017 Icewine 2D vibroseis (88E) Franklin Bluffs 3D: 2D extracts* * Alaskan Seismic Ventures: Confidential Licensed Data • 750 line km 2D seismic acquired/ pur
Slide 10: Icewine New 2D Seismic Grid Deliverables
Project Icewine New 2D Seismic Grid Deliverables For personal use only Modern acquisition design combined with ‘State of the Art’ processing workflow has delivered the following: • A consistent high quality modern 2D grid across the majority of Project Icewine • Significantly improved seismic image
Slide 11: Icewine New 2D Seismic Grid: Conventional Prospectivity Mapping
Project Icewine New 2D Seismic Grid Conventional Prospectivity Mapping For personal use only New 2D seismic data delineating conventional play portfolio across Icewine acreage • Central North Slope ranked #1 in the US for remaining conventional oil potential • Brookian plays 2.1 BBO mean undiscovere
Slide 12: Icewine 2D Seismic Vibroseis: Comparison with Legacy seismic data
Icewine 2D Seismic Vibroseis: Comparison with Legacy seismic data For personal use only Vintage 2D Seismic (1980/81) Icewine 2D Preliminary Seismic (88E, 2016) Marked noise reduction in Brookian sequence Improved reflector continuity throughout Base of Slope Thrust faulting • Radical improvement obs
Slide 13: Icewine: New 2D Seismic Extracts, Comparison to Legacy Data
Project Icewine: New 2D Seismic Extracts Comparison to Legacy Data For personal use only Closest Vintage 2D Seismic Data (1980/81) Franklin Bluffs 3D (ASV): 2D Extract (2015) Topset Clinoform Base of slope Alaskan Seismic Ventures Confidential Licensed Data • Pronounced uplift in data quality when c
Slide 14: Icewine: New 2D Seismic Extracts, Comparison to Legacy Data
Project Icewine: New 2D Seismic Extracts Comparison to Legacy Data For personal use only Closest Vintage 2D Seismic Data (1980/81) Franklin Bluffs 3D (ASV): 2D Extract (2015) Basin floor fan Alaskan Seismic Ventures Confidential Licensed Data • Subtleties of seismic stratigraphic plays clearly image
Slide 15: Icewine: 2D Seismic Extracts (ASV)
Project Icewine: 2D Seismic Extracts (ASV) Seismic Stratigraphic Potential For personal use only • Provisional Franklin Bluffs 3D (ASV): 2D Extract interpretation • Seismic stratigraphic detail clearly imaged on 2D extracts • Potential basal floor fan at toe of progradational sequence imaged • Extre
Slide 16: HRZ Liquids Rich Play: Phase I Formation Evaluation - Complete
HRZ Liquids Rich Play: PHASE I Formation Evaluation - COMPLETE For personal use only Metric (Unit) Result Comment / Comparison Thermal Maturity Volatile Oil High rate, recovery, & performance GRI Matrix Permeability >10X Eagle Ford Very good for volatile oil resource plays Gross / Net Pay 197’ / 186
Slide 17: What Fundamentals Make a Top Tier Liquids-Rich Resource Play?
What Fundamentals Make a Top Tier Liquids-Rich Resource Play? For personal use only FLOW RATE IS KEY DRIVER–AHEAD OF OIL PRICE AND COST WHAT CHARACTERISTICS DETERMINE FLOW RATE? HOW DOES ICEWINE MEASURE UP TODAY? VISCOSITY PRESSURE Measure of how easily hydrocarbon Reservoir energy that improves wel
Slide 18: Icewine HRZ Prospective Resource
Project Icewine HRZ Prospective Resource Internal Assessment For personal use only 2.6 Billion Barrels Gross Mean Prospective Recoverable Resource from HRZ - Liquids Only P90 P50 P10 Mean Pc# Gross Liquids Resource (mmbbl) 1,594 2,471 3,830 2,602 50% Net Attributable to 88 Energy (mmbbl) 1,236 1,916
Slide 19: HRZ - Internal Project Analysis
HRZ - Internal Project Analysis# • Cost Assumption based on Low-High cost scenarios For personal use only • Resource Case based on well performance type curves over P10-P90 prospective resource estimate • Icewine#2 designed to provide additional insight into future lateral well performance and narro
Slide 20: Milestones Achieved and Upcoming Activity
Milestones Achieved and Upcoming Activity Summary: For personal use only • Phase 1: Icewine#1 Evaluation Complete • Indicating Icewine#1 cored a new resource play in the HRZ shale • Large liquid hydrocarbon resource potential 985mmbbl to > 2.6 billion barrels • Phase 2: Icewine#2 Production Test Pla
Slide 21: Icewine Timeline
Project Icewine Timeline For personal use only Phase I De-Risking Complete Phase II Appraisal Underway Successful Evaluation of Icewine#1 Icewine#2 Flow Test 1H 2017 Multiple fund raisings for A$26m Gross acreage Drill, stimulate 2D seismic expanded to and flow test Completed 2D preliminary 271,119
Slide 22: Board and Key Management
Board and Key Management For personal use only Mr David Wall – Managing Director Ms Elizabeth Pattillo – General Manager Exploration 4 years experience in strategy and planning at Woodside Over 20 years experience in the upstream petroleum Petroleum. 6 years experience in financial services industry
Slide 23: Contacts
Contacts For personal use only Managing Director: Brokers: David Wall Australia dwall@88energy.com Hartleys Ltd As Corporate Advisor: Mr Dale Bryan + 61 8 9268 2829 Registered Office: Level 1, 83 Havelock St, West Perth United Kingdom WA 6005 Cenkos Securities Plc As Nominated Adviser and Broker: Mr