Key Petroleum Limited · ASX:KEY
Key Petroleum — Shareholder Meeting (November 2018)
57 slides from Key Petroleum's shareholder meeting presentation, Nov 26, 2018
Slide 1: Annual General Meeting 2018 – Managing Directors Overview
Suite 3, Churchill Court 331-335 Hay Street Subiaco WA 6008 T: + 61 (0) 8 9381 4322 F: + 61 (0) 8 9381 4455 26 November 2018 The Manager The Australian Securities Exchange The Announcements Officer Level 4/20 Bridge Street SYDNEY NSW 2000 Dear Sir ANNUAL GENERAL MEETING 2018 – MANAGING DIRECTORS OVE
Slide 2: Managing Director's Presentation
Annual General Meeting 26 November 2018 Managing Director’s Presentation
Slide 3: Disclaimer
Disclaimer The information in this presentation is an overview and does not contain all information necessary for investment decisions. In making investment decisions, investors should rely on their own examination of Key Petroleum Ltd and consult with their own legal, tax, business and/or financial
Slide 4: Energy Market Overview
Energy Market Overview OISEY. ®©020000
Slide 5: Oil Market Fundamentals
Oil Market Fundamentals The oil price has seen recovery supported by a more balanced market prior to the recent decline The recent trend reflects a wide range of issues including political tensions, (Iran waivers and tariff war), forecast weaker global economic growth, increase in inventories in
Slide 6: Decline in Discoveries and Impact of US Shale
Decline in Discoveries and Impact of US Shale Supply related challenges remain for high cost exploration and development ventures, i.e. deep water Key’s Perth Basin conventional oil projects are robust with low lifting costs in any development, supported by a low operating cost model and materia
Slide 7: East Coast Gas Markets
East Coast Gas Markets Gas prices remain at levels close to Gas Price/GJ AU$10 AU$10/gigajoule with continuing strong demand by industry LNG export caps, gas from the Northern Territory, Queensland's domestic gas initiative, subsidies, discounts, a trans-continental pipeline and LNG imports are
Slide 8: Markets Role in Shaping Key Strategy
Markets Role in Shaping Key Strategy Key has taken a long term view of world oil demand focusing on conventional oil and gas projects in Australia Australia has low levels of crude inventories and is heavily reliant on imported oil imports as a result of falling domestic refinery output Source A
Slide 9: Australian Focused Assets
Australian Focused Assets Key holds strategic acreage positions in under explored fairways of proven basins adjacent to infrastructure: South-west Cooper Eromanga Basin, Queensland after the Cooper Basin recent acquisition of ATP 783, ATP 920 and ATP 924 Perth Basin North Perth Basin, Western
Slide 10: 2018 Achievements
2018 Achievements Completed acquisition of Production Licence L7, North Perth Basin containing the Mount Horner Oil Field Key realised value in the previously dormant Mount Horner asset through its strong technical competencies and identification of a near term production opportunity A program
Slide 11: Project Portfolio
Project Portfolio Perth Basin Cooper Basin
Slide 12: Northern “Flank” Oil Province
Northern “Flank” Oil Province Key Petroleum has captured the entire conventional oil play on the Bookara Shelf Bookara located north of the main gas province. The Shelf strategy has been quickly rewarded by >500 km2 Triangle Energy’s rapid investment Dunsborough A Key Petroleum will operate and
Slide 13: Appraisal of the Bookara Shelf
Appraisal of the Bookara Shelf The L7 Farmout Agreement with between Key and Triangle Energy (Global) Limited (ASX:TEG) has been executed whereby: Triangle will fund a farmout Interest Work Program (“Work Program”) up to an expenditure cap of $3 USD million (currently $4.2 million AUD) for: ▪ 2
Slide 14: L7 Redevelopment
L7 Redevelopment F SAND DEPTH MAP MH-5A, 9 and 12 were the best performing wells with production rates > MH-13 200 bopd ‘F Sand’ field outline Technical assessment has identified infill development opportunities within MH-12 the main F sand Jurassic reservoir and unproduced (attic) oil (right ab
Slide 15: Bookara Shelf Near-Term Exploration
Bookara Shelf Near - Term Exploration Key expects to gain access to the preferred Wye Knot-1 well location in Q1 2019 in anticipation of drilling an exploration well as part of a drilling campaign with L7 The Wye Knot prospect has a gross un-risked prospective resource range of 0.16 (1U) – 1.4 (
Slide 16: Bookara Shelf Oil Project Resource Summary
Bookara Shelf Oil Project Resource Summary Total Bookara Shelf Project Gross Prospective Resource Range has been summed to 4.95 (1U) – 18.97 (2U) – 38.21 (3U) mm bbls WYE KNOT-1 MOUNT Low cost drilling and L7 “low L7 HORNER hanging fruit” contingent resource EP 437 OIL FIELD opportunities repres
Slide 17: Mount Horner Operations
Mount Horner Operations Preliminary field surveys commenced while awaiting final formal regulator approval to undertake any decommissioning at Mount Horner with assessment of current facility infrastructure for Phase II Development being undertaken in parallel Remaining beam pumps and other oilf
Slide 18: Camp Mobilisation to Mount Horner
Camp Mobilisation to Mount Horner Mobilisation of the Key Petroleum Services camp to Mount Horner has commenced, with shire approvals being finalised to complete the installation The 40 man camp will accommodate personnel for workover, seismic acquisition and drilling campaigns across the Bookar
Slide 19: Cooper Eromanga Basin Portfolio
Cooper Eromanga Basin Portfolio Three ATPs over recognised under explored oil and gas fairways ATP 924 contains two new 3D seismic surveys that significantly lower prospectivity risk Original work program was focused on traditional oil plays at the Jurassic level Key’s revised work program w
Slide 20: Regional Jurassic Structure Map
Regional Jurassic Structure Map Prospects - Blue and Green Polygons Hutton Depth Inland Oil Field ATP 920 EAST NORTH ATP 924 ATP 783 ATP 924 Cuisinier-Cook Oil Fields ATP 924 Bodalla South Oil Field CENTRAL Barrolka: Permian Gas
Slide 21: Permian Canyon Play Adjacent to CG Pipeline
Permian Canyon Play Adjacent to CG Pipeline Permian Toolachee canyon complex is analogous to the Barrolka Gas Field Barrolka-17 drilled on a structural high (poor reservoir development) and Barrolka-16 was drilled in a paleo low (good reservoir development) Resource estimates of canyon feature
Slide 22: Taj Oil and Gas Prospect - Elephant #1
Taj Oil and Gas Prospect - Elephant #1 Large 3D defined undrilled prospect with multiple targets (current conservative resource estimates do not include Triassic and other Jurassic intervals) located within the Tanbar Gas Project in ATP 924 Pre Jurassic thinning defines early structure (prerequi
Slide 23: Ace Oil Prospect – Elephant #2
Ace Oil Prospect – Elephant #2 (Taj’s Brother) Large untested anticline sitting within ATP 924 west of Tanbar Gas Project – Permian edge proximity Key Petroleum maps 5.7 km2 total mapped closure High chance of multiple fault independent closures Potential of Triassic onlap play similar to Ta
Slide 24: Tanbar Gas Project – Surveying of Well Locations
Tanbar Gas Project – Surveying of Well Locations Chopper at Tanbar Station South of Tanbar Station Gilpeppe Station Road – Taj Prospect Gilpeppe-1 – West of Taj Prospect
Slide 25: Rig Inspections for Cooper Basin - 2019
Rig Inspections for Cooper Basin - 2019
Slide 26: 2019 – A Big Year of Exploration and Development
2019 – A Big Year of Exploration and Development Tendering prior to year end for drilling, seismic and oilfield services Components of Mount Horner decommissioning to commence shortly Finalisation and resolution of land access matters in new year and drilling of Wye Knot-1 to commence with Mou
Slide 27: Prospective Resources
Prospective Resources Notes: 1. Prospective Resources are the estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) and relate to undiscovered accumulations. These estimates have both an associated risk of discovery and development.
Slide 28: Contingent Resources
Contingent Resources Notes: 1. Contingent Resources are the estimated quantities of petroleum that may be potentially recoverable from known accumulations, but the applied project(s) are not yet considered mature enough for commercial development due to one or more contingencies. 2. The estimates of
Slide 29: Mr Kane Marshall – Managing Director
For further information please contact Mr Kane Marshall – Managing Director Telephone: +61 (0) 8 9381 4322 Email: investors@keypetroleum.com.au Website: www.keypetroleum.com.au Or follow us on our social media handles below:
Slide 30: Managing Director's Presentation
Annual General Meeting 26 November 2018 Managing Director’s Presentation
Slide 31: Disclaimer
Disclaimer The information in this presentation is an overview and does not contain all information necessary for investment decisions. In making investment decisions, investors should rely on their own examination of Key Petroleum Ltd and consult with their own legal, tax, business and/or financial
Slide 32: Energy Market Overview
Energy Market Overview OISEY. ®©020000
Slide 33: Oil Market Fundamentals
Oil Market Fundamentals The oil price has seen recovery supported by a more balanced market prior to the recent decline The recent trend reflects a wide range of issues including political tensions, (Iran waivers and tariff war), forecast weaker global economic growth, increase in inventories in
Slide 34: Decline in Discoveries and Impact of US Shale
Decline in Discoveries and Impact of US Shale Supply related challenges remain for high cost exploration and development ventures, i.e. deep water Key’s Perth Basin conventional oil projects are robust with low lifting costs in any development, supported by a low operating cost model and materia
Slide 35: East Coast Gas Markets
East Coast Gas Markets Gas prices remain at levels close to Gas Price/GJ AU$10 AU$10/gigajoule with continuing strong demand by industry LNG export caps, gas from the Northern Territory, Queensland's domestic gas initiative, subsidies, discounts, a trans-continental pipeline and LNG imports are
Slide 36: Markets Role in Shaping Key Strategy
Markets Role in Shaping Key Strategy Key has taken a long term view of world oil demand focusing on conventional oil and gas projects in Australia Australia has low levels of crude inventories and is heavily reliant on imported oil imports as a result of falling domestic refinery output Source A
Slide 37: Australian Focused Assets
Australian Focused Assets Key holds strategic acreage positions in under explored fairways of proven basins adjacent to infrastructure: South-west Cooper Eromanga Basin, Queensland after the Cooper Basin recent acquisition of ATP 783, ATP 920 and ATP 924 Perth Basin North Perth Basin, Western
Slide 38: 2018 Achievements
2018 Achievements Completed acquisition of Production Licence L7, North Perth Basin containing the Mount Horner Oil Field Key realised value in the previously dormant Mount Horner asset through its strong technical competencies and identification of a near term production opportunity A program
Slide 39: Project Portfolio
Project Portfolio Perth Basin Cooper Basin
Slide 40: Northern “Flank” Oil Province
Northern “Flank” Oil Province Key Petroleum has captured the entire conventional oil play on the Bookara Shelf Bookara located north of the main gas province. The Shelf strategy has been quickly rewarded by >500 km2 Triangle Energy’s rapid investment Dunsborough A Key Petroleum will operate and
Slide 41: Appraisal of the Bookara Shelf
Appraisal of the Bookara Shelf The L7 Farmout Agreement with between Key and Triangle Energy (Global) Limited (ASX:TEG) has been executed whereby: Triangle will fund a farmout Interest Work Program (“Work Program”) up to an expenditure cap of $3 USD million (currently $4.2 million AUD) for: ▪ 2
Slide 42: L7 Redevelopment
L7 Redevelopment F SAND DEPTH MAP MH-5A, 9 and 12 were the best performing wells with production rates > MH-13 200 bopd ‘F Sand’ field outline Technical assessment has identified infill development opportunities within MH-12 the main F sand Jurassic reservoir and unproduced (attic) oil (right ab
Slide 43: Bookara Shelf Near-Term Exploration
Bookara Shelf Near - Term Exploration Key expects to gain access to the preferred Wye Knot-1 well location in Q1 2019 in anticipation of drilling an exploration well as part of a drilling campaign with L7 The Wye Knot prospect has a gross un-risked prospective resource range of 0.16 (1U) – 1.4 (
Slide 44: Bookara Shelf Oil Project Resource Summary
Bookara Shelf Oil Project Resource Summary Total Bookara Shelf Project Gross Prospective Resource Range has been summed to 4.95 (1U) – 18.97 (2U) – 38.21 (3U) mm bbls WYE KNOT-1 MOUNT Low cost drilling and L7 “low L7 HORNER hanging fruit” contingent resource EP 437 OIL FIELD opportunities repres
Slide 45: Mount Horner Operations
Mount Horner Operations Preliminary field surveys commenced while awaiting final formal regulator approval to undertake any decommissioning at Mount Horner with assessment of current facility infrastructure for Phase II Development being undertaken in parallel Remaining beam pumps and other oilf
Slide 46: Camp Mobilisation to Mount Horner
Camp Mobilisation to Mount Horner Mobilisation of the Key Petroleum Services camp to Mount Horner has commenced, with shire approvals being finalised to complete the installation The 40 man camp will accommodate personnel for workover, seismic acquisition and drilling campaigns across the Bookar
Slide 47: Cooper Eromanga Basin Portfolio
Cooper Eromanga Basin Portfolio Three ATPs over recognised under explored oil and gas fairways ATP 924 contains two new 3D seismic surveys that significantly lower prospectivity risk Original work program was focused on traditional oil plays at the Jurassic level Key’s revised work program w
Slide 48: Regional Jurassic Structure Map
Regional Jurassic Structure Map Prospects - Blue and Green Polygons Hutton Depth Inland Oil Field ATP 920 EAST NORTH ATP 924 ATP 783 ATP 924 Cuisinier-Cook Oil Fields ATP 924 Bodalla South Oil Field CENTRAL Barrolka: Permian Gas
Slide 49: Permian Canyon Play Adjacent to CG Pipeline
Permian Canyon Play Adjacent to CG Pipeline Permian Toolachee canyon complex is analogous to the Barrolka Gas Field Barrolka-17 drilled on a structural high (poor reservoir development) and Barrolka-16 was drilled in a paleo low (good reservoir development) Resource estimates of canyon feature
Slide 50: Taj Oil and Gas Prospect - Elephant #1
Taj Oil and Gas Prospect - Elephant #1 Large 3D defined undrilled prospect with multiple targets (current conservative resource estimates do not include Triassic and other Jurassic intervals) located within the Tanbar Gas Project in ATP 924 Pre Jurassic thinning defines early structure (prerequi
Slide 51: Ace Oil Prospect – Elephant #2
Ace Oil Prospect – Elephant #2 (Taj’s Brother) Large untested anticline sitting within ATP 924 west of Tanbar Gas Project – Permian edge proximity Key Petroleum maps 5.7 km2 total mapped closure High chance of multiple fault independent closures Potential of Triassic onlap play similar to Ta
Slide 52: Tanbar Gas Project – Surveying of Well Locations
Tanbar Gas Project – Surveying of Well Locations Chopper at Tanbar Station South of Tanbar Station Gilpeppe Station Road – Taj Prospect Gilpeppe-1 – West of Taj Prospect
Slide 53: Rig Inspections for Cooper Basin - 2019
Rig Inspections for Cooper Basin - 2019
Slide 54: 2019 – A Big Year of Exploration and Development
2019 – A Big Year of Exploration and Development Tendering prior to year end for drilling, seismic and oilfield services Components of Mount Horner decommissioning to commence shortly Finalisation and resolution of land access matters in new year and drilling of Wye Knot-1 to commence with Mou
Slide 55: Prospective Resources
Prospective Resources Notes: 1. Prospective Resources are the estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) and relate to undiscovered accumulations. These estimates have both an associated risk of discovery and development.
Slide 56: Contingent Resources
Contingent Resources Notes: 1. Contingent Resources are the estimated quantities of petroleum that may be potentially recoverable from known accumulations, but the applied project(s) are not yet considered mature enough for commercial development due to one or more contingencies. 2. The estimates of
Slide 57: Mr Kane Marshall – Managing Director
For further information please contact Mr Kane Marshall – Managing Director Telephone: +61 (0) 8 9381 4322 Email: investors@keypetroleum.com.au Website: www.keypetroleum.com.au Or follow us on our social media handles below: