H3 Energy Limited · ASX:H3E
H3 Energy — Shareholder Meeting (November 2018)
20 slides from H3 Energy's shareholder meeting presentation, Nov 14, 2018
Slide 1: Cash Generating Oil & Gas Operations with Significant Exploration Upside
CASH GENERATING OIL & GAS OPERATIONS WITH SIGNIFICANT EXPLORATION UPSIDE 2018 AGM Slide 1
Slide 2: Disclaimer
DISCLAIMER No representation or warranty, expressed or implied, is made by Whitebark Energy Ltd that the material contained in this presentation will be achieved or prove to be correct. Except for statutory liability which cannot be excluded, Whitebark Energy, their officers, employees and advisers
Slide 3: WBE: ASX's Newest Oil and Gas Producer
WBE : ASX’S NEWEST OIL AND GAS PRODUCER Vision: To build a mid-tier oil & gas producer through growth and acquisition. Alberta, Canada 20 – 30% working interest in JV with Point Loma Resources (TSX : PLX) Western Australia Strong production base • 1400 boepd (gross)** High Impact Potential • 320 boe
Slide 4: Whitebark – The Numbers
WHITEBARK – THE NUMBERS Assets Generating Value Market Response 40,000 2,035,000 <$0.5 Net acres boe net reserves* EV per boe net reserves 80 Liquids ratio: 20% 320 Boe/d Oil: 64 Gas: 256 <$1,000 Producing wells production (BOEPD) EV per boed 3 Total capacity: 70 million mcf / Production facilities
Slide 5: Strategy
STRATEGY Well-defined growth strategy: Low Cost Opportunistic Reserves and Purchases • Production focus: exploit established infrastructure Good Quality Assets at Production Growth through rapid production growth and short payback historically low prices Assess drilling vs acquisition cost to period
Slide 6: Whitebark – Progress and Priorities
WHITEBARK – PROGRESS AND PRIORITIES Progress over the last six months FY 2019 Focus / Priorities • Gilby Acquisition Completed Well defined Growth Strategy • Production Doubled • Production, exploration, risk management • 100% of Warro Project Regained Reserves Growth • Exploration and development d
Slide 7: Increasing Production & Reserves
INCREASING PRODUCTION & RESERVES* * Refer ASX Release 26 March 2018 Slide 7
Slide 8: Production Growth v Share Price = Opportunity
PRODUCTION GROWTH V SHARE PRICE = OPPORTUNITY Buying Opportunity • Progression of production acquisition not yet recognized by the market. • Incremental production in the pipeline, acquired via acquisition and new drilling. • Further opportunities to acquire larger-scale projects available to WBE. 1
Slide 9: Alberta, Canada – A Premier Address
ALBERTA, CANADA – A PREMIER ADDRESS • 100 rigs operating (3,500 wells/yr) + 1,250,000hp frac pumps. • Supportive government and community. • Attractive regulatory and fiscal regime. • Underutilised infrastructure. • Highly experienced workforce. Kitimat • Low cost operating environment: access • Dri
Slide 10: Value Drivers – Alberta Canada (20-30% JV Interest)
VALUE DRIVERS – ALBERTA CANADA (20 - 30% JV INTEREST) ACTIVITIES Exploration Areas of Interest • Busy work program over next 12 months. within core production and development areas • Two ‘exploration’ wells targeting by-passed pay planned before end of year; • Facility upgrades at Paddle River oil f
Slide 11: Wildwood Rex – Spud Date Late November 2018
WILDWOOD REX – SPUD DATE LATE NOVEMBER 2018 • Recently secured land on trend with current industry activity. • Internal mapping indicates unrisked prospective resources of 60 million boe within the pool. (WBE 12 million boe). • Primary recovery of 10% with water flood potential lifting recovery to 2
Slide 12: Rex Exploration Well – Spud Date November 2018
REX EXPLORATION WELL – SPUD DATE NOVEMBER 2018 Slide 12
Slide 13: Wildwood Ostracod - Oil Exploration Pool – Spud Date Dec 8
WILDWOOD OSTRACOD - OIL EXPLORATION POOL – SPUD DATE DEC 2018 • Wildwood Ostracod (Lower Mannville) exploration well location is on existing lands 20km to the SW of the companies Paddle River Oil Field. Initial • Internal mapping indicates unrisked prospective resources of 12 well million boe within
Slide 14: West Cove Exploration - New Banff Exploration Targets
WEST COVE EXPLORATION - NEW BANFF EXPLORATION TARGETS* - 2019 Banff A • Older Hz wells in the offset area achieved initial rates in 100-1300 boepd and on 8 type wells averaged 300 boepd ( shown below). Banff H • Modern horizontal drilling and completions techniques expected to lead to a significant
Slide 15: Duvernay Shale Oil Lands
DUVERNAY SHALE OIL LANDS* Land Position on Emerging Play • WBE currently has 20–30% interest in approximately 19,000 acres in the West Duvernay Basin as part of the Point Loma Paddle R./W. Cove Land JV (PLJV). • Horizontal wells are currently being drilled by other operators within existing Paddle R
Slide 16: Western Australia
WESTERN AUSTRALIA Perth Basin Warro Gas Field (100% interest) • 4.4 to 11.6 Tcf GIIP Contingent Resource*. • Four wells drilled and 3D seismic acquired under the Alcoa JV - $95m spent on the project. • Waiting on fracking embargo to lift. • Fracking enquiry report and recommendations due Q4 2018. •
Slide 17: Acquisition Metrics for Canadian Producing Assets
ACQUISITION METRICS FOR CANADIAN PRODUCING ASSETS Criteria Range WBE acquisitions (actuals) Notes Cost < $15-$25,000 per flowing boe/d PLX: $23,000/boe/d, $4.20/boe for P+P Initial Entry point to Canadian JV (PLJV). < $4-7/boe for Proven + Probable Gilby: $4,500/boe/d, $0.46/boe for P+P Receivership
Slide 18: Priorities - Next 12 Months
PRIORITIES - NEXT 12 MONTHS Opportunistic Purchases Acquire 2 -3 more properties in Canada within WBE strict acquisition metrics. Low cost reserves and Drill a minimum of three (3) wells with payback metrics ≈ 12-18 months. production growth 2 wells to be drilled in CY2018 Strategic Partnershi
Slide 19: References and Competency Statements
REFERENCES AND COMPETENCY STATEMENTS The Company confirms that that it is not aware of any new information or data that materially affects the information included in the relevant market announcements and, in the case of oil and gas Reserves and Contingent Resource Estimates, that all material assum
Slide 20: Thank you
Thank you David Messina Managing Director E: david.messina@whitebarkenergy.com Slide 20