Carnarvon Energy Limited · ASX:CVN
Carnarvon Energy — Carnarvon Petroleum — Investor Presentation (March 2018)
48 slides from Carnarvon Energy's investor presentation, Mar 14, 2018
Slide 1: Corporate presentation March 2018
For personal use only Corporate presentation March 2018
Slide 2: Disclaimer
Disclaimer For personal use only The Resource estimates outlined in this report have been prepared by the Company’s Chief Operating Officer, Mr Philip Huizenga, who is a full-time employee of the Company. Mr Huizenga has over 25 years’ experience in petroleum exploration and engineering. Mr Huizenga
Slide 3: Corporate snapshot
Corporate snapshot For personal use only High alpha leverage to oil sector Specialist explorer with a pipeline of projects Two projects progressing to commercialisation 3 Carnarvon’s Roc-2 appraisal well testing oil and gas flows in 2016
Slide 4: Corporate
Corporate For personal use only 1. ASX ticker CVN Shareholder analysis at 31 Dec 2017 2. Shares on issue 1,028 million 3. Share price (2/3/18) 13.5 cents 4. Market capitalization (2/3/18) $139 million 5. Cash on hand (31/12/17) $49 million 6. Substantial shareholders none Carnarvon’s 52 week share p
Slide 5: 2018 Focus
2018 Focus For personal use only Phoenix project April Phoenix South-3 well oil & gas appraisal May Dorado-1 well oil & gas exploration Buffalo project Buffalo-10 well planning low risk oil field redevelopment Other projects Farm-out(s) mature the project pipeline 5
Slide 6: Strategy
For personal use only Strategy Intense focus on the world renowned North West Shelf Leverage specialist technical staff & a comprehensive data base Target high value projects 6
Slide 7: Extensive project portfolio
Extensive project portfolio For personal use only Project pipeline 9 projects covering 15 permits Pipeline of maturing projects Two projects progressing to commercialisation 7
Slide 8: Phoenix project
For personal use only 8 Phoenix project
Slide 9: Project snapshot
Project snapshot For personal use only 4 discoveries Phoenix South Successful flow test Economic resource at Roc Roc Phoenix South & Dorado tie backs Dorado Additional upside close by 9
Slide 10: 2018 focus on gas & oil volumes
2018 focus on gas & oil volumes For personal use only Discovery wells Appraisal Volumes CVN’s (year) wells share (year) (gross) (20%) Prospects Roc 2016 2016 332 Bcf 15 mmboe (Caley interval 2C volume) 20 mmbbls Phoenix South 2015 2018 489 Bcf 28 mmboe (Caley Pmean volume only) 2017 April 57 mmbbls
Slide 11: Phoenix South-3 well
Phoenix South-3 well For personal use only Phoenix South-1 well Phoenix South-2 well Phoenix South-3 well High confidence Phoenix Sth-2 (PS-2) intersected oil & gas Phoenix Sth-3 is only 560m from PS-2 Funded With existing cash Near term April 2018 drilling Gas & oil (cond.) Oil 11
Slide 12: Dorado-1 well
Dorado-1 well For personal use only Quality exploration 15 km from Roc / same sands Upside in deeper sands Funded With existing cash Near term May 2018 drilling 12
Slide 13: For personal use only
For personal use only Oil Export from offshore facility Gas Domestic supply Diesel replacement in mining Port Hedland Export Karratha Iron ore gas plant mining Potential future 13 gas pipelines
Slide 14: Buffalo project
For personal use only 14 Buffalo project
Slide 15: New technology better images oil field potential
New technology better images oil field potential For personal use only Unproduced areas within the field Previous operations produced 20 mmbbls between 1999 and 2004 15
Slide 16: Oil unproduced in structural attics
Oil unproduced in structural attics For personal use only 16
Slide 17: Structural attics clear on new data
Structural attics clear on new data For personal use only 17
Slide 18: Compelling economics
Compelling economics For personal use only Oil volume 31 mmbbls recoverable (RISC audited 2C resource) Development plan low risk in replicating previous facilities Development cost US$150m¹ Operating costs US$80m to $100m p.a. based on 4 year production life¹ ¹Based on independent studies commission
Slide 19: Buffalo oil field in Timor-Leste
Buffalo oil field in Timor-Leste For personal use only Treaty Signed 7 March 2018 Equivalent conditions Australian domestic law • Security of title and legal rights • Fiscal terms Consequence Require PSC but clear to progress operational and redevelopment activities 19
Slide 20: Labyrinth project
For personal use only Labyrinth project Farm out commenced Feb 2018 20
Slide 21: Outtrim project
For personal use only Outtrim project High graded by Swell-1 result 21
Slide 22: Condor project
For personal use only Condor project Farm out commencing mid 2018 22
Slide 23: Wrap up
For personal use only 23 Wrap up
Slide 24: 2018 Catalysts
2018 Catalysts For personal use only Phoenix South-3 well starting April 2018 Dorado-1 well starting May 2018 Buffalo development plans and economic updates throughout 2018 Farm-out one of Labyrinth, Condor, Outtrim 24
Slide 25: Supplemental information
For personal use only Supplemental information
Slide 26: Supplemental information to the presentation
For personal use only Supplemental information to the presentation Content: 1. Project portfolio summary 2. Oil & gas volume summary 3. Buffalo project 4. Phoenix project 5. Labyrinth project 6. Outtrim project 7. Maracas project 8. Condor & Eagle projects 9. Board & management 26
Slide 27: Portfolio – permit locations and equities
Portfolio – permit locations and equities For personal use only 27
Slide 28: Project portfolio - summary
For personal use only Project portfolio - summary Project Permits Equity holders Status Buffalo WA-523-P CVN 100% Appraisal to oil field redevelopment Phoenix WA-435-P & WA-437-P CVN 20% & Quadrant Appraisal and exploration of discovered oil and Energy 80% gas Phoenix WA-436-P & WA-438-P CVN 30% & Q
Slide 29: Oil & gas volume summary (51 million barrels recoverable net 2C)
For personal use only Oil & gas volume summary (51 million barrels recoverable net 2C) Refer to Carnarvon’s ASX announcements of 14 November 2016, 28 March 2017 & 28 August 2017 for comprehensive details of 29 these volume estimates. These resources were calculated using a combination of probabilist
Slide 30: Oil & gas volume summary (2,480 million barrels recoverable net Pmean)
For personal use only Oil & gas volume summary (2,480 million barrels recoverable net Pmean) Refer to Carnarvon’s ASX announcements of 14 November 2016, 28 March 2017, 8 May 2017, 13 June 2017 for comprehensive 30 details of these volume estimates. These resources were calculated using probabilistic
Slide 31: Oil & gas volume – SPE definitions
For personal use only Oil & gas volume – SPE definitions Carnarvon calculates reserves and resources according to the SPE/WPC/AAPG/SPEE Petroleum Resource Management System (“SPE-PRMS”) definition of petroleum resources. This was first published in 1997 by the SPE, and in an effort to standardise re
Slide 32: Oil & gas volume - summary
For personal use only Oil & gas volume - summary Buffalo project Buffalo contingent resources fall within the “Development Pending” category. Once Carnarvon finalises its redevelopment work the resources can be reclassified as reserves under the category “Justified for Development”. Phoenix project
Slide 33: Buffalo project - background
For personal use only Buffalo project - background The Buffalo field was discovered in October 1996, when BHP Petroleum tested the Buffalo-1 well. The well flowed at 12,000 bpd of light 53° API oil. The oil has a particularly low gas oil ratio of 110. The field was operated by BHP Petroleum and cont
Slide 34: Buffalo project – technology solution
For personal use only Buffalo project – technology solution Based on Carnarvon’s experience trialing the first use of FWI (Full Waveform Inversion) technology in Australia in the Phoenix project, Carnarvon was in a position to immediately foresee the potential for this technology in other areas; Buf
Slide 35: Phoenix project - background
For personal use only Phoenix project - background The Phoenix project (WA-435-P, WA-436-P, WA-437-P & WA-438-P) is located in the Bedout sub- basin approximately 150 kilometres offshore from Port Hedland in Western Australia. During the global financial crisis of 2008 and 2009 Carnarvon and its par
Slide 36: Roc-2 flow test
For personal use only 36 Roc-2 flow test
Slide 37: Phoenix project – Phoenix South
For personal use only Phoenix project – Phoenix South In late 2016 / early 2017 the Phoenix South-2 well intersected the top of the primary reservoir and discovered oil and gas, but did not fully evaluate the resource due to the level of pressure encountered. This was an encouraging result, and as s
Slide 38: Phoenix project - Dorado
For personal use only Phoenix project - Dorado The Dorado prospect is only some 15 kilometres south of the Roc discoveries with an interpreted multi sand reservoir covered by the same top shales that seal in the Roc oil and gas. Those shales are also interpreted as providing the side seal in a chann
Slide 39: Phoenix project – development concepts
For personal use only Phoenix project – development concepts The oil and gas discovered to date and to be targeted in 2018 very much suits a development that ties the oil and gas back to a central well head platform and offshore primary processing. Oil would be held in a Floating Production Storage
Slide 40: Labyrinth project - background
For personal use only Labyrinth project - background The Labyrinth project (WA-521-P) is located in the Rowley Sub-basin, offshore North West Shelf, north of Carnarvon’s Roc and Phoenix South hydrocarbon discoveries. The interpretation of newly reprocessed 2D seismic in the permit has revealed sever
Slide 41: Labyrinth project - volumes
For personal use only Labyrinth project - volumes Three source rocks are mature and generating today in WA-521-P, comprising the proven Lower Jurassic Murat siltstone, Lower Depuch carbonaceous shales and Upper Triassic marine shale of the Upper Keraudren formation. Sizable structures and prolific s
Slide 42: Outtrim project - Belgravia prospect
For personal use only Outtrim project - Belgravia prospect The Outtrim project (WA-155-P(1)) is located in the Exmouth basin and contains the significant Belgravia prospect in the Triassic interval. The prospect is similar in size and geology to the nearby Woodside operated Swell Triassic prospect.
Slide 43: Maracas project - background
For personal use only Maracas project - background The Maracas project (WA-524-P) is situated on the flanks of the Dampier Sub-Basin, a part of the highly prospective Greater Carnarvon Basin, on Western Australia’s North West Shelf. This large 1,210km² permit is located on the Enderby Terrace, which
Slide 44: Condor & Eagle projects
For personal use only Condor & Eagle projects The Condor project (AC/P62) and Eagle project (AC/P63) are situated in the Vulcan sub-basin and were of appeal to Carnarvon because of their proximity to basin oil and gas resources and coverage with recently acquired broadband 3-D seismic data. This new
Slide 45: Board of Directors
For personal use only Board of Directors Peter Leonhardt – Chairman An independent company director and adviser with extensive business, financial and corporate experience. Peter is a Chartered Accountant, former Senior Partner with PricewaterhouseCoopers and Managing Partner of Coopers & Lybrand in
Slide 46: Management team
For personal use only Management team Adrian Cook – Managing Director & Chief Executive Officer Philip Huizenga – Chief Operating Officer Dr Stephen Molyneux – Exploration Manager Dr Jeff Goodall – Chief Geologist Andrew Padman – Chief Geophysicist Thomson Naude – Chief Financial Officer and Company
Slide 47: Extensive project portfolio
Extensive project portfolio For personal use only Project pipeline 9 projects covering 15 permits Pipeline of maturing projects Two projects progressing to commercialisation 47
Slide 48: Think Different Act Different
For personal use only Think Different Act Different 48
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