Petro Matad Limited · LSE:MATD
Petro Matad — Investor Presentation (February 2018)
24 slides from Petro Matad's investor presentation, Feb 1, 2018
Slide 1: Mongolia Corporate Presentation
Mongolia Corporate Presentation Under-explored, Highly Prospective, Low Cost Onshore Oil
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Petro Matad Limited (the Company) and is for information purposes only. Some statements contained in this presentation or in documents referred to in it are or may be forward-looking statements. Such statements reflect the Company’s current views wit
Slide 3: Board of Directors
Board of Directors Chief Executive Officer: Mike Buck ▪ 38 years of international E&P experience including 9 years as COO of Salamander Energy ▪ Proven track record of exploration success in S. America, N. Africa and Asia. Directly involved in the discovery of more than 1 billion barrels of recovera
Slide 4: Corporate Overview
Corporate Overview Petro Matad Limited Existing shareholders (pre-2018 fund raising) ▪ London, AIM Listed (MATD) ▪ Mongolia focused ▪ Large acreage position held 100%, >60,000 km2 Petrovis + concert party - Including proven productive and undrilled basins Private Investors geologically similar to pr
Slide 5: Transformative 2018 Work Programme
Transformative 2018 Work Programme Established platform and ▪ Over 160 years’ experience in oil & gas industry on Board ▪ Proven track record of success with over 1.5bn barrels of refreshed management recoverable reserves discovered team with a track-record ▪ New mandate from shareholders to exploit
Slide 6: Mongolia Overview
Mongolia Overview ▪ Central Asia’s only democracy after 70 years as a Soviet satellite ▪ Annual GDP is $12Bn and to date is heavily reliant on the mining sector ▪ Produces 21,000 barrels of oil/day (2017) from fields close to Chinese border including from Blocks XIX and XXI adjacent to Petro Matad’s
Slide 7: Asset Overview
Asset Overview Photo overlooking a portion of the Taats Basin, Block V. One of twelve prospective basins in Petro Matad’s Western Acreage 7
Slide 8: China: The Proven and Prolific Analogue
China: The Proven and Prolific Analogue Productive and Prospective Basins of East-Central Asia Recent Discovery Hilar-Tamsag Basin 0.5 Bbo Rec East Gobi Basin Mongolia 0.05 Bbo Rec Songliao Basin Tugrug Basin 20 Bbo Rec Proven Petroleum System Junggar Basin 10 Bbo Rec Erlian Basin 0.62 Bbo Rec Tarim
Slide 9: Regional E&P: Activity and Infrastructure
Regional E&P: Activity and Infrastructure Mongolian production ▪ Main fields discovered in 1990s, now operated by Petro China Limited Exploration ▪ Outside of the producing areas very limited drilling ▪ Only 3 exploration wells in all of Western Mongolia ▪ Very limited involvement of international E
Slide 10: Block XX: Low Risk E&A Adjacent to Production
Block XX: Low Risk E&A Adjacent to Production 5 Lease line prospects ▪ Covered by 2D and 3D seismic ▪ Continuations of producing trends/structures on Block XIX ▪ Internal estimates of 50-75% chance of success * 15-28MMbo recoverable potential * ▪ Low cost drilling $2-3MM/well * XIX Productivity/Rese
Slide 11: Block XX: Route to Market
Block XX: Route to Market ▪ Neighbouring Blocks XIX and RUSSIA XXI production exported on trucks via dedicated trucking road Toson-Uul XIX ▪ Export costs are in the $5 to Ulaanbaatar Block XX $8/bbl range Daqing refinery ▪ Export in China continues by MONGOLIA Block XX prospects road, rail or pipeli
Slide 12: Blocks IV & V: High Impact Exploration
Blocks IV & V: High Impact Exploration Wild Horse Falcon Snow Leopard (13/750MMbo) 1 290MMbo (7/180MMbo) Block IV Block V 2 100MMbo 3 90MMbo (14/500MMbo) Live Oil & 3D Seismic De-risked follow up to success (prospects/resource) ▪ 12 prospective basins ▪ 55 Prospects and Leads. Recoverable potential
Slide 13: First Well: Wild Horse Prospect - Baatsagaan Basin Block IV
First Well: Wild Horse Prospect - Baatsagaan Basin Block IV Post Rift Late JR -K Potential Upside 290 MMbo Early JR? Interbedded Source and Reservoir P-TR? – JR? Pre Rift Updip of largest identified source kitchen area with migration focus into the structure ▪ Prominent structure with large 290MMbo
Slide 14: Second Well: Falcon Prospect - Tugrug Basin Block V
Second Well: Falcon Prospect - Tugrug Basin Block V TSC Core hole Post Rift 40 MMbo Early K 60 MMbo Late JR Pre Rift Play is proven by oil staining in sands of nearby core hole ▪ Source, reservoir and seal proven in place ▪ Source rock and live oil recovered from TSC core hole ▪ Surface detection of
Slide 15: Block IV/V: Route to Market
Block IV/V: Route to Market RUSSIA ▪ Early production from Blocks IV/V is assumed exported by truck to refineries/buyers in MONGOLIA China Karamay Ulaanbaatar 1a ▪ Three routes are available, refinery Block IV Block V suited to the western, north- Proposed Dushanzi refinery refinery central and east
Slide 16: Commercial Details
Commercial Details Block XIX Petro China Oil Production and Processing Facilities 16
Slide 17: Success Case Economics: Block XX
Success Case Economics: Block XX ▪ Based on success at Gazelle and one other Case 15 MMBO Recoverable prospects NPV10 ($MM) 80 ▪ Immediate appraisal and completion of all wells IRR % 42 ▪ Install pumps, tanks and export via truck to Sensitivities (NPV10 $MM) Block XIX facilities Oil price +10%/-10%
Slide 18: Success Case Economics: Blocks IV/V
Success Case Economics: Blocks IV/V ▪ Base Case and High case resource potential Cases BASE: 50MMBO HIGH: 150MMBO Recoverable Recoverable consistent with 2018 targets ▪ Development well count: Base 36, High 117, NPV10 ($MM) 451 1270 c.650bopd/well assumed IRR % 100 114 ▪ Early production via truckin
Slide 19: Conclusion
Conclusion Low cost, onshore, oil exploration ▪ Near field exploration and appraisal targets. Low cost to drill and quick to monetise ▪ High impact basin opener exploration with evidence of working petroleum systems ▪ Geologically analogous to proven productive basins in Northern China Attractive ec
Slide 20: 2018 Work Programme
2018 Work Programme ▪ Petro Matad intends to embark on a 4 well ▪ Cash at YE2017: $4.7MM drilling programme in 2018 ▪ $16MM raised for very active 2018 ▪ Rig is contracted, certified and stored in country programme at zero day rate until mobilisation ▪ Mobilisation scheduled for late 1Q 2018 ▪ First
Slide 21: Appendix
Appendix 21
Slide 22: The Rocks: Source, Reservoir, and Seal in Place
The Rocks Late Jurassic - Early Cretaceous Mega-Sequence (MS2) ▪ Extensional lake basins preserved the geologic components for the proven productive oil province of the China-Mongolia region ▪ This system generates the giant oil fields of Eastern China and has been proven productive in Eastern Mongo
Slide 23: Outcrop Section: Proven Petroleum Systems Blocks IV/V
Proven Petroleum Systems Blocks IV/V •Oily fluid Inclusions in BSC-1 core •Proven as well as outcrop sections in Block IV working petroleum system Oil stain, fluid BSC-1 Core inclusions & micro-seeps` Oil Stain Outcrop Section MS-2 Source + Reservoir Outcrops Source & Reservoir Source & Reservoir So
Slide 24: Proven Petroleum System: Tugrug Basin
Proven Petroleum System: Tugrug Basin TSC-1: Stratigraphic core hole (TD: 1,603m) ▪ Situated on basin margin ▪ Proved source and reservoir presence ▪ High porosity sands (10-30%). Good permeability in basal sands (50md+) ▪ 40m of good quality source rock with 2-5% TOC Tugrug Basin Live oil staining