Carnarvon Energy Limited · ASX:CVN
Carnarvon Energy — Carnarvon Petroleum — Investor Presentation (July 2006)
29 slides from Carnarvon Energy's investor presentation, Jul 24, 2006
Slide 1: Investor Presentation July 2006 – Carnarvon Petroleum Limited
Slide 2: Overview of Carnarvon
OVERVIEW OF CARNARVON Generating cashflow frorn Wichian Burl oil fleld in Thallancl (40% CVN): 14.2 MMBO gross recoverable ol] ~ Carnarvon net 5.66 MMBO. Current gross production of 75 BOPD — Carnarvon net revenue March 2006 quarter A$$58,000. (upgrades to capital equipment have commenced) Aggressiv
Slide 3: Structure and Personnel
STRUCTURE AND PERSONNEL Capital Structure: Market Cap: Gash on hand: Shareholders: Board of Directors Chairman: Peter Leonhardt * Chairman of Voyager Energy * Chartered Accountant, held position as Managing Partner of Coopers and Lybrand, Perth CEO: Ted Jacobson * Petroleurn geologist/geophysicist w
Slide 4: Share Price Performance
SHARE PRICE PERFORMANCE GVN Share Price and Volume $0.07 §0,000,000 45,000,000 $0.06 7 40,000,000 $0.05 | Song an dingo 35,000,000 is} 30,000,000 & $0.04 25,000,000 3 4 20,000,000 © G $0.03 | 15,000,000 $0.02 10,000,000 000,000 $0.01 Phase 1 development drilling commences at Wichian Buri field ~ 6 w
Slide 5: Primary focus: Thailand
Primary focus: Thailand Supportive Thailand Government. Good deal flow. Favourable fiscal regirne Thailand needs oil discoveries. Secondary focus: Australia Stable Government. Good fiscal regirne. Looking for appropriate new ventures Won't overlook opportunities outside stated focus. Industry contac
Slide 6: Permits
PERMITS Wichian Buri, Thailand = 144/43 40% Prov&prob 14.2 million barrels oil recoverable gross to JV. "133/43 40% Seismic reprocessing indicates good exploration potential. vy Currently producing around 75 bbis/day. vy 3D seismic survey recently completed and aggressive, vy 2siage development dril
Slide 7: Wichian Buri Oil Field
WICHIAN BURI OIL FIELD Recent Accomplishments * Dec 2005 ~ Agreement with Pan Orient to address past JV concerns and provide the platform for a strong working relationship going forward. ~ Strong JV relations with competent, well funded operator. ~ CVN appoints Ted Jacobson as CEO, brings wealth of
Slide 8: Wichian Buri Oil Reserves
WICHIAN BURI OIL RESERVES Gross Oli Reserves as of 31 December 2005 Oil Reserves Gross (mmbo) Proved Producing 0.037 Proved Undeveloped 0.598 Total Proved 0.635 Probable 13.573 Total Proved + Probable 14.208 Possible (1) 54.55 Total Proved + Probable + Possible 68.758 Source : Gaffney Cline and Asso
Slide 9: Learn from the Past
LEARN FROM THE PAST We have experience from similar oil fields elsewhere in Asia. We don’t have unrealistic expectations for well performance. We understand the need to keep things simple. We understand the need for better seismic — New 3D seismic programme has been completed & old seismic has been
Slide 10: Analogy: Daan Oilfield in China
ANALOGY DAAN OILFIELD in CHINA « Similar oil type. Similar production rates for wells. » Similar geology — thin lacustrine sandstones. » Approx reserves 200+ mmbbis. « Currently producing from ~ 500 weils. » Production rate ~ 7,000 bopd. Well costs cheap using local materials and constructions. » IT
Slide 11: Analogy: Sirikit Oil Field
ANALOGY SIRIKIT OIL FIELD located northeast of WICHIAN BURI Similar geology. Same field type - better reservoir? GT 100 wells. Discovered 1981. Flowed over 20,000 bopd at peak production. Currently still producing over 15,000 bopd. Can we find good Sirikit type reservoir at Wichian Buri?
Slide 12: The New Approach
THE NEW APPROACH Vertical holes best for these thin sandstone reservoirs. Good wells with minimal damage to reservoir. Minimal logging — we know the reservoir and hydrocarbon type. Good mud technology & well design. Run liner and secure well bore as soon as possible - minimise formation damage. Dril
Slide 13: "F" Sand Producing Reservoir
“F” SAND PRODUCING RESERVOIR WB-1 BEST PERFORMING WELL Wichian Buri 1 Wichian Buri N2 11 Years of production 5 Years of production * Wichian Buri-? (WB-1) has been best performing well. * Wichian Buri-N2 (WB-N2) commenced at 150 bopd rapidly * Production profile looks normal. declined to steady stat
Slide 14: "G" Sand - Deeper
“G” SAND - DEEPER ADDITIONAL OIL POTENTIAL G Sand has never been put on an All 6 wells of the Phase 1 programme will extended production test. WB-N6 and penetrate the G Sand and will be flow tested If WB-N4 have good log response for oi] — potential moveable oil is indicated on logs. will they flow
Slide 15: Possible Production Improvements
POSSIBLE PRODUCTION IMPROVEMENTS « Scope for production improvement on existing wells » Production profiles for many wells show unusual character. » Are perforations optimally placed in reservoir? = Is there restricted flow through perforations? » What damage has been done to reservoir? » Can we imp
Slide 16: 2006 Operations Update
2006 OPERATIONS UPDATE Seismic Reprocessing complete Seisrnic Acquisition Complete 3 June Current nN ITEM \ Jan | Feb 7 Mar 4 | Nov | Dec ~ ra 2D and 3D Seismic Reprocessing aT 3D Seismic Acquisition Phase 1 Drilling POE2 IPOE-4 POE-8 POE-5 POE-3 POE-6 Phase 1 Testing POE-2 IPOE-4 POE-8 POE-5 POE-3
Slide 17: Phase 1 Drill Targets
PHASE 1 DRILL TARGETS Objective of Phase 1 . Of production * Cash Flow WICHLA POE-2 Now drilling Carnarvon 40% Will provide better understanding of: . Oil flow rates . Recovery rates . Recoverable reserves . Value to Carnarvon shareholders . : GAS FIELD Location Alf Phase 1 wells in close proximity
Slide 18: POE-2 Now Drilling
POE-2 NOW DRILLING POE-2 POE-2 Located on high Now drilling Updip of Carnarvon (40%) surrounding wells ] /
Slide 19: Phase 1 - Production Testing
PHASE 1 - PRODUCTION TESTING POSSIBLE SUCCESS SCENARIO * 6 production wells being drilled - $1.3m net Carnarvon plus completion @ $46,000 per well. « Anticipated success rate ~ 50%. « Anticipated Initial flow rates of 150 bopd from each well. * Production testing 1 month each well. « Anticipated tot
Slide 20: Phase 2 Programme - Up to 20 Wells
PHASE 2 PROGRAMME - UP TO 20 WELLS » A-big prograrnme — dependent on success of Phase 1. a Atleast 1 well in L33/43 to north of Wichian Buri. a Other wells in L44/43 - mixture of development, appraisal and exploration. » Must await the processing of the 3D seismic. « Startup late in 2006/early 2007
Slide 21: Need for Good Seismic
NEED FOR GOOD SEISMIC F-Sand Depositional Model These good areas are hard to see on seismic Western: Basin.Margin We need good seismic to identify good reservoir areas. Good seismic leads to better geological prediction.
Slide 22: Reprocessing of 3D Successful
REPROCESSING OF 3D SUCCESSFUL WB-N4 Production well Hii NAAN Where is the F sandstone F Sand is clearer ~ Can get updip from WB-N4
Slide 23: Reprocessing 3D Successful: Hydrocarbon Indicators
REPROCESSING 3D SUCCESSFUL HYDROCARBON INDICATORS » Na Sanun-1 briefly flowed 1,375 BOPD from fractured voicanics. Flat events Reprocessed 3D ® Seismic reprocessing has defined Possible hydrocarbons seismic several possible hydrocarbon on trend to Na Sanun-1 indicators on trend and updip of Na Sanun
Slide 24: 3D Seismic Acquisition
3D SEISMIC ACQUISITION Wichian Buri Oil Field a Seismic acquisition compiete. » Currently being processed and targets are being identified for Phase 2 programme of up to 20 wells. =» Coverage 225 sq kms. » More 3D seismic will be required. EARLY RESULTS OF PROCESSING INDICATE GOOD QUALITY SEISMIC 3D
Slide 25: Upside - Wichian Buri Area
UPSIDE — WICHIAN BURI AREA « Wichian Buri Oil Field = Wells could flow like WB-1 - commenced production ~ 300 bopd. = |mprove recovery. = Minimise capex and opex. = Workover existing wells. = Prove up more reserves. = Other = Many other fault compartmenis like Wichian Buri. » “G” sandstone unknown p
Slide 26: Summary
SUMMARY Delivered on programme a Phase 1 drilling of up to 6 wells underway. » Seismic reprocessing completed & successful. = 3D seismic completed & being processed. Phase 2 drilling being planned Workover of existing producers in planning Plenty of upside potential This new Joint Venture is differe
Slide 27: Conclusion - Tiger by the Tail
CONCLUSION — TIGER BY THE TAIL The next 12 months will be a year of consolidation and growth for Carnarvon. Key success drivers will be: Exciting work program * Planned completion of up to 26 wells. * Complete processing of the recently acquired 225km? of 3D seismic to identify stage 2 exploration d
Slide 28: Contacts
CONTACTS Ted Jacobson & Richard Simpson at’ Hartleys Managing Director CARNARVON Head of Corporate Finance Phone (08) 9321 2665 tVnr tee Phone (08) 9268 2824 Fax {08) 9268 2830 sme Fax (08) 9268 2830 Email tjacobson@carnarvonpetroleum.com Email richard, simpson@hartleys.com.au Peter Leonhardt &3 Dal
Slide 29: Important Notice
IMPORTANT NOTICE This presentation has been prepared by Carnarvon Petroleum Limited ‘Carnarvon’ or the “Company’). It should not be considered as an offer of invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those
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