Carnarvon Energy Limited · ASX:CVN
Carnarvon Energy — Carnarvon Petroleum — Investor Presentation (July 2016)
28 slides from Carnarvon Energy's investor presentation, Jul 5, 2016
Slide 1: Investor update
Investor update 5 July 2016 Carnarvon Petroleum Limited’s (“Carnarvon”) (ASX: CVN) Managing Director and CEO, Adrian Cook will be meeting a number of shareholders, potential shareholders and business partners during the coming weeks and will speak to the presentation provided in this update. Carnarv
Slide 2: Investor presentation July 2016
Investor presentation July 2016
Slide 3: Disclaimer
Disclaimer The Resource estimates outlined in this report were reviewed by the Company’s Chief Operating Officer, Mr Philip Huizenga, who is a full-time employee of the Company. Mr Huizenga has over 20 years’ experience in petroleum exploration and engineering. Mr Huizenga holds a Bachelor Degree in
Slide 4: Oil prices challenged industry and investors
Oil prices challenged industry and investors 3
Slide 5: Is it time to buy oil stocks?
Is it time to buy oil stocks? Demand ~35 billion barrels consumed annually and growing at ~1.5% p.a.. OPEC Propose holding production steady. Caused over supply. Now under stress. Over geared companies have little to no free cash flow and declining US Shale production. Limited access to cheap debt f
Slide 6: Carnarvon portfolio
Carnarvon portfolio Multiple discoveries 11 Permits ~35,000km2 11 Permits ~35,000km2 Buffalo project Phoenix Roc project Cerberus project Outtrim project 5
Slide 7: Carnarvon snapshot
Carnarvon snapshot Focus The North West Shelf, Australia’s most prolific oil and gas region. Progress Two play opening discoveries in 2014 and 2015 contain gas, condensate and oil. Catalysts Two wells starting in June and July 2016 drilling two different projects. Growth 11 permits acquired since 20
Slide 8: Outtrim project
Outtrim project Drilling June 2016 Proven oil Aggregation play 7
Slide 9: Outtrim project
Outtrim project Drilling The Outtrim East-1 well is currently drilling. Target The same reservoir as the nearby Outtrim-1 discovery. Upside Potential additional reservoir sands to the North and East of Outtrim-1. Hydrocarbons High quality light oil present in this area is ideal for export to Asia. C
Slide 10: Cerberus project
Cerberus project High value exploration Large targets Low drill costs 9
Slide 11: Cerberus project
Cerberus project Technical Work now completed and showing sizable prospects on 3D seismic data. Drilling Planning is in progress to be ready to drill in 2017/2018. Hydrocarbons Oil is expected, based on fields nearby, with its sale likely through export to Asia. Cost Drilling costs are relatively lo
Slide 12: Roc project
Roc project Drilling July 2016 Proven Gas & Condensate Appraisal phase 11
Slide 13: Roc project
Roc project Discovery The Roc-1 well in 2015 discovered and recovered gas and condensate. Drilling The Roc-2 well is scheduled to commence drilling in early July 2016. Volume Mid case resource target of 463 Bcf and 22 million barrels (gross, CVN 20%)1. Development Conceptually a central well head pl
Slide 14: Phoenix South project
Phoenix South project Stacked resource potential Proven oil Roc tie-back 13
Slide 15: Phoenix South project
Phoenix South project Discovery The Phoenix South-1 well in 2014 discovered and recovered light oil. Volume Mid case resource of 19 million barrels (gross, CVN 20%)2. Develop Initial concepts include a tie back to Roc development some 20 kilometres away. Hydrocarbons High quality light oil was recov
Slide 16: Greater Phoenix project
Greater Phoenix project Enormous blue sky Working source rocks 3D/2D coverage Phoenix South-1 Phoenix-1 Phoenix-2 Roc-1 Roc-2 July 2016 spud 15
Slide 17: Greater Phoenix project
Greater Phoenix project Information New 3D and 2D seismic, with recent discoveries, providing key new information. Basin Permits cover entire petroleum basin providing significant blue sky potential. Prospects Significant size prospects exist near Roc on new 3D seismic. Hydrocarbons Gas, condensate
Slide 18: New WA-521-P
New WA-521-P Large structures Traditional reservoir New source concept 17
Slide 19: New WA-521-P
New WA-521-P Award Permit awarded in April 2016 under Government work bid process. Target Hydrocarbons in Triassic source rocks, like Roc, migrating to Jurassic reservoir. Volume Potential for large hydrocarbon volumes in large structures identified on 2D data. Hydrocarbons Gas, condensate and light
Slide 20: New Buffalo project
New Buffalo project Technology play opener Proven oil Stacked resource potential Nexan Buffalo FPSO on station in the Buffalo oil field between 1999 and 2004 19
Slide 21: New Buffalo project
New Buffalo project Award Permit awarded in May 2016 under Government work bid process. Hydrocarbons Permit contains former Buffalo oil field and multiple light oil discoveries. Technology New 3D seismic technology (FWI) to improve identification of hydrocarbon pools. Targets Structures in the Plove
Slide 22: Key takeaways
180 160 Phoenix Farmout $20MM(Net Phoenix || Thailand Asset Thailand Asset Farmout Sale Up to sale $8MM (Net) || USS65MM USS50MM Cerberus Project Acquired Phoenix south-1 Discovery 521 Block Acquired Outtrim Buffalo Project Project Acquired _|||_ Acquired Outtrim East -4 Roc Commenced Discovery Row?
Slide 23: Key takeaways
Key takeaways Timing Industry beginning to show signs of recovery. Expertise CVN is a specialist in finding major oil and gas assets on the NWS. Roc well Commencing in July 2016 to appraise 2015 gas and condensate discovery. Outtrim East well Drilling now to explore upside and provide oil aggregatio
Slide 24: Annexures
Annexures 23
Slide 25: Portfolio details
Portfolio details Quadrant Energy 71.5% (operator) and Carnarvon 28.5%. Outtrim CVN interest acquired in 2016 Permit WA-155(1)-P covers 207km2 Carnarvon 100% and operator Cerberus CVN interest acquired in 2014 Permits EP-490-P, EP-491-P, EP-475-P and TP/27 cover 3,741km2. Quadrant Energy 80% (operat
Slide 26: Board of Directors
Board of Directors Peter Leonhardt – Chairman Peter is an independent company director and adviser with extensive business, financial and corporate experience. He is a Chartered Accountant, former Senior Partner with PricewaterhouseCoopers and Managing Partner of Coopers & Lybrand in Western Austral
Slide 27: Management team
Management team Philip Huizenga – Chief Operating Officer Philip is a petroleum Engineer with over 25 years in the oil and gas industry encompassing drilling, logging and production on offshore and remote locations throughout Australian, Asia and the Americas. Phil was previously with Tap Oil during
Slide 28: Think Different Act Different
Think Different Act Different 27
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