Carnarvon Energy Limited · ASX:CVN
Carnarvon Energy — Carnarvon Petroleum — 2nd Asia Independents Forum, 14th Asia Oil Week 2009
21 slides from Carnarvon Energy's conference presentation, Feb 26, 2009
Slide 1: ASX cover letter for presentation
25 February 2009 For personal use only Company Announcements Office ASX Limited Via ASX Online Dear Sirs, PRESENTATION Please find attached a presentation today to the 2nd Asia Independents Forum as part of the 14th Asia Oil Week in Singapore. Yours faithfully Carnarvon Petroleum Limited RA Anderson
Slide 2: Asia Independents Forum: Cautiously Building an Asset Base in Asia
Asia Independents Forum For personal use only 25 February 2009 ` Cautiously Building an Asset Base in Asia Philip Huizenga, COO
Slide 3: Highlights
Highlights For personal use only • Australian Stock Exchange (ASX : CVN) • Mid-tier Australian oil & gas producer (Market Cap ~$200 million) • Healthy balance sheet – A$71 million cash, no debt but tax liabilities • Positive future √ 11.4 mm bbls 2P oil reserves and 45.7mmbo 3P oil reserves with sig
Slide 4: Corporate Snapshot
Corporate Snapshot For personal use only Capital Structure Directors & Management Ordinary Shares 673 million Chairman: Peter Leonhardt Options (ex @ 10c) 10 million Managing Director: Ted Jacobson Market Capitalisation: $195 million Non Exec Directors: Neil Fearis & Ken Judge (fully diluted @ 29 ce
Slide 5: Market Position
Market Position For personal use only • One of the premier oil & gas producers listed on the ASX • Carnarvon expects further growth over the coming year with significant exploration and appraisal upside, to be assessed Source: Hartleys Corporate Finance 4
Slide 6: Asset Portfolio
For personal use only 5 Asset Portfolio
Slide 7: Thailand Development, Appraisal and Exploration
Thailand Development Appraisal and Exploration For personal use only L44/43 (CVN 40%) •Production ~ 11,500 bopd •Exploration drilling 4-6 wells 2009 ^ •Appraisal drilling 6-8 wells 2009 ^ •Development drilling 3-4 wells 2009 ^ SW1A (CVN 40%) •Production: ~ 1000 bopd •Drilling 1-2 wells 2009 ^ L33/43
Slide 8: Australian Exploration and Appraisal
Australian Exploration and Appraisal For personal use only EP 110 / EP 224 (CVN 35%) •Optional Exploration Drilling 2009/10 ^ WA-399P (CVN 50% - Op) •Seismic 2009^ •Optional Drilling 2010^ EP407 / EP321 (CVN 2.5% ORRI) •Appraisal Drilling 2009^ •Development Drilling 2009/10^ 7 ^Subject to Government
Slide 9: Project Pipeline
Project Pipeline For personal use only Development Exploration Production & Appraisal L33 & L43 Na Sanun East Na Sanun East L20 / 50 Bo Rang Wichian Buri L52 & L53 Si Thep Na Sanun New Ventures – Thailand L44-R Si Thep New Ventures – SE Asia Wichian Buri Deep Australia 8 8
Slide 10: Potential Production Upside
Potential Production Upside For personal use only Discovery Recoverable Na Sanun East 8.3 n + WB, ST, NS 3.1 Possible o ti re s r a Possible 34.3 p lo entu Ex w V Contingent 14.0 Bo Rang 7.0 Si Thep 7.0 Ne L44-R 3.0 a l Contingent ra is p SW1A Bo Rang L44-R Ap Si Thep Na Sanun East 9 9
Slide 11: Two Year Project Execution
Two Year Project Execution For personal use only L20 L33 & L44 2009 Seismic 2009 Appraisal 2010 Drilling 2010 Exploration (A$6-7 MM)^ +A$30-100 MM Free Cash * ^ L52 & 53 2009 Seismic 2010 Drilling (A$5-6 MM)^ Surplus Funds Source: * Average analyst sensitivities ^Subject to Joint Venture Approvals 1
Slide 12: Consolidating an Asset Base in Asia
Consolidating an Asset Base in Asia For personal use only • A strong technical team and supportive Board, underpinned by production cashflow is the backbone of an oil & gas business • Carnarvon’s technical expertise includes, but is not limited to: • Geophysical acquisition • Geophysical interpretat
Slide 13: Consolidating an Asset Base in Asia: Community Involvement
Consolidating an Asset Base in Asia For personal use only Strong Community Involvement is critical • Carnarvon established Thailand Branch Office in 2007 • Branch manager Khun Niwattana Kongchatthai • Carnarvon sponsored Chang Mai university and DMF (Govt) personnel on a two day geological field tri
Slide 14: Consolidating an Asset Base in Asia: Community Involvement
Consolidating an Asset Base in Asia For personal use only Strong Community Involvement is critical • The JV is an active member of the local community, being a significant local employer, a purchaser of local goods and services and makes a contribution to local schools, temples and community project
Slide 15: CVN re-rating driven by success
9 b -0 -Fe 01 14 CVN re-rating’s driven by success 9 n-0 -Ja 01 -0 8 ec -D 01 -0 8 Crunch ov Credit -N 01 08 ct- -O 01 8 p -0 -Se 01 -08 ug -A 01 8 l-0 -Ju 01 8 n-0 Australian All Ords (Normal) -Ju 2008 Drill 01 Success -0 8 ay -M 01 -08 pr -A 01 08 Market Hiccup a r- -M 01 Jan 2008 8 b -0 -Fe 01 AS
Slide 16: Mid cap Oil and Gas positioning itself for growth until Global Financial Crisis
Mid cap Oil and Gas positioning itself for growth until …. Global Financial Crisis For personal use only 15
Slide 17: Industry (Peers) Paradigm Shift
Industry (Peers) Paradigm Shift For personal use only • Exploration – a liability not an asset • Bank loans – onerous conditions • Raising equity – difficult, dilutive and at significant discounts • Farm-outs – no promotes being paid for anything but the best assets • Farm-ins – extensive options fo
Slide 18: Carnarvon Positioning
Carnarvon Positioning For personal use only • increasing reserves D • increasing production D • increasing cash D • no debt D • healthy cashflow D • self funded programme D • strong technical ability D • considerable access to dealflow D • Focus on growth, not balance sheet and survival!!! 17
Slide 19: Carnarvon Assessment
Carnarvon Assessment For personal use only • Review current position √ Strong balance sheet with cash $71 million and no debt √ Self funded exploration and appraisal sheet with excess cashflow for growth • Review opportunities √ Market conditions are presenting a number of asset acquisition opportun
Slide 20: Conclusion
Conclusion For personal use only • Growing cash • Growing reserves and production • Carnarvon actively (but cautiously) looking for projects that fit defined investment criteria • Carnarvon well poised for significant growth 19
Slide 21: Disclaimer
Disclaimer For personal use only The information is this document, that relates to oil exploration results and reserves, is based on information compiled by the Company’s Chief Operating Officer, Mr Philip Huizenga, who is a full-time employee of the Company. Mr Huizenga consents to the inclusion of
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