Melbana Energy Limited · ASX:MAY
Melbana Energy — Investor Presentation (April 2016)
25 slides from Melbana Energy's investor presentation, April 2016
Slide 1: Corporate Presentation April 2016
Corporate Presentation April 2016
Slide 2: Disclaimer
Disclaimer Forward-looking Statements and Resources Summary of information: This presentation contains general and background information about MEO’s activities current as at the date of the presentation and should not be considered to be comprehensive or to comprise all the information that an inve
Slide 3: Corporate Overview
Corporate Overview 3
Slide 4: Company Overview
Company Overview • ASX listed (ASX: MEO) petroleum exploration company • Focused on advancing its onshore Cuban interests, including exploration on highly prospective Block 9 • MEO is the only ASX listed company with Cuban energy industry exposure Cuba Block 9 • Portfolio also includes projects onsh
Slide 5: Corporate Snapshot
Corporate Snapshot Capital Structure Share Price Share price (as at 13 Apr 2016) $0.021 Volume Share Price 2.5 15 Shares on issue 891.2m 13 2 Options on issue (exercise price $0.50) 4.2m 11 1.5 9 Millions Share Performance Rights 26.3m Cents 7 Market capitalisation $18.7m 1 5 3 Net cash position (31
Slide 6: Board & Management
New leadership under MD Peter Stickland and new Board Board & Management Board of Directors Peter Stickland Andrew Purcell Michael Sandy Managing Director Non-Executive Non-Executive & CEO Chairman Director Senior Team Colin Naylor Robert Zammit Errol Johnstone Dean Johnstone CFO & Exec Manager – Ch
Slide 7: Cuba
7 MEOAustralia
Slide 8: Cuba Block 9 - Positioned in oil rich highly prospective area
Cuba Block 9 - Positioned in oil rich highly prospective area On trend with existing producing fields, very significant potential Positioning • Awarded Block 9 PSC (MEO 100%*) in September 2015 for 25 year term • Onshore, 2,380 km2 and close to infrastructure • 1st Exploration sub-period commitment
Slide 9: Cuba Oil and Gas Potential - Untapped region of the Gulf of Mexico
Cuba Oil and Gas Potential - Untapped region of the Gulf of Mexico MEO has early mover advantage into this significantly under explored region Format?? Cuba – Significant Undiscovered Potential • The Gulf of Mexico is one of the world’s great petroleum mega provinces - Cuba represents the under-expl
Slide 10: Preliminary analysis confirm significant oil and gas potential
Preliminary analysis confirm significant oil and gas potential More definitive assessment expected by mid 2016 MEO Activity • Confirmed number of previously Havana Guadal-1 (1971) drilled wells (Guadal-1, Marti-5, Varadero Field is the largest oil field in Cuba recovered >30 barrels light oil (24.5°
Slide 11: Cuba - Re-emerging as an investment destination
Cuba - Re-emerging as an investment destination Internal changes and start of normalization of relations with US having positive impact • Cuba has implemented an attractive fiscal regime - New Law of Foreign Investment in 2014, including 8 year profit tax exemption • In December 2014 US President Ob
Slide 12: Cuba Block 9 - Value drivers & strategy
Cuba Block 9 - Value drivers & strategy Flexible work commitment allows MEO to pursue multiple oil and gas objectives Value Drivers • Project commenced to reprocess part of existing 2D seismic data to better define prospective trends • Detailed assessment and seismic reprocessing project targeted fo
Slide 13: Australia & New Zealand Portfolio
Australia & New Zealand Portfolio 13
Slide 14: New Zealand - Onshore Production & Exploration
New Zealand - Onshore Production & Exploration PEP51153 (MEO 30%) • Regional existing Operator acquiring Kea’s 70% interest* Puka PEP 51153 • New operator offers synergies to help unlock PEP51153 Waihapa • Puka oil accumulation – currently suspended Shannon Prospect - Shallow oil accumulation with 2
Slide 15: Northern Australia Acreage and Projects
Northern Australia Acreage and Projects Discrete upstream projects adjacent to proven hydrocarbons ABADI GREATER SUNRISE BAROSSA Kupang Kupang EVANS SHOAL Joint Petroleum BLACKWOOD CALDITA Development HERON Area BAYU‐UNDAN Tassie Shoal Projects TSMP2 TSMP1 TSLNG A C/P 5 3 (MEO 100%) Da
Slide 16: WA-488-P (MEO 100%) - Beehive
WA-488-P (MEO 100%) - Beehive Beehive dual objective oil prospect Darwin • Significant, multi billion barrel oil prospect • Potentially the largest undrilled oil prospect offshore Australia PETREL • Shallow water, suitable for lower cost jack-up drilling rig FRIGATE TERN • Developable by FPSO or pip
Slide 17: Corporate & Activity Pipeline
Corporate & Activity Pipeline 17
Slide 18: Fiscal Discipline
Fiscal Discipline Major cost reduction initiatives implemented & raised new funds • Recent 20% reduction in cash component of annual salaries for CEO and senior staff, exchanged for exercisable performance rights: • Savings of ~$280,000 per annum • Exercisable Performance Rights build stronger align
Slide 19: MEO Indicative Activity Pipeline
MEO Indicative Activity Pipeline Actively managing program to optimise value 2016 2017 Indicative Permit Activity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Cuba (Block 9) • Data gathering, studies and reprocessing • Initial prospectivity & resource assessment • Exploration Program (depending on resource assessment) N
Slide 20: Investment Summary
Investment Summary Refocused strategy targeting projects with appropriate risk reward profile Unique Cuban leverage with early mover advantage Cuba has excellent oil & gas prospectivity and demonstrated modest operating costs Diverse, high impact exploration asset portfolio in Australia/NZ with low
Slide 21: Appendix
Appendix Peter Stickland Managing Director / CEO +61 3 8625 6000 Peter.Stickland@meoaustralia.com.au
Slide 22: WA-454-P (MEO 50%): Breakwater
WA-454-P (MEO 50%): Breakwater MEO option to participate in Breakwater -1 drilling but only if farmed down to cover well cost • Joint venture with Origin Energy Gulf of Mexico Darwin • Multiple prospects near existing infrastructure, including Breakwater-1 prospect style Salt dome Plays • Suitable f
Slide 23: AC/P50 & AC/P51 (MEO 100%): Multiple oil targets
AC/P50 & AC/P51 (MEO 100%): Multiple oil targets Recent Auriga West-1 highlights potential • Ramble On and Jur’maker oil prospects identified in proven petroleum system defined on modern 3D seismic data • Suitable for lower cost jack-up drilling rig • Permits renewed in 2015 for 5 year term with min
Slide 24: Tassie Shoal Projects
Tassie Shoal Projects Shallow water site, innovative low cost development paths for regional stranded gas • 100% owned by MEO • Region has substantial undeveloped high CO2 gas that needs a low cost development solution • Methanol manufacturing uses gas with high CO2 (up to Tassie Shoal Projects 30%)
Slide 25: Appendix – MEO Group Assets
Appendix – MEO Group Assets Country Asset MEO % 2016 Work Program Value Driver Cuba Onshore Block 9 PSC 100%* 200km 2D reprocessing Quality, low-cost technical work to add value Studies ahead of potential farm-out and drilling New Onshore Taranaki 30% Subject to review New operator offers synerg