Synergia Energy Ltd · LSE:SYN
Synergia Energy — Oilex — Investor Presentation (April 2013)
29 slides from Synergia Energy's investor presentation, April 2013
Slide 1: Portfolio Diversification: Unconventional Resource Focus
Portfolio Diversification Unconventional Resource Focus ASX / AIM: OEX April 2013
Slide 2: Important Information
Important Information Disclaimer The presentation in this projected form and as verbally presented (Presentation) is provided on the basis that none of the Company Directors nor its respective officers, shareholders, related bodies corporate, partners, affiliates, employees, representatives and advi
Slide 3: Company Profile: Oilex Ltd. (ASX / AIM: OEX)
Company Profile: Oilex Ltd. (ASX / AIM : OEX) Oilex Ltd. is an oil and gas company with a recently diversified portfolio and near-term production potential in India. ASX 6-month share price performance and volume Oilex is listed on the ASX and AIM $0.12 6,000,000 ASX $ AIM £ $0.10 5,000,000 Share pr
Slide 4: Investment Highlights
Investment Highlights \ Revitalised management and asset portfolio \ Strategic focus on growing production, reserves and cash flow \ Cambay Project (INDIA) • Work Programme and Budget approved by regulatory authorities • Finding cost ~ US$0.60 per boe of 2C contingent resource (50/50 gas & liquids)
Slide 5: Revitalised Management Team
Revitalised Management Team Ron Miller Michael Maloney Pete Bekkers Rob Ierace Appointed as Acting Appointed as India- Appointed Chief Appointed as Chief Managing Director in based Chief Operating Geoscientist in 2007– Financial Office & December 2012. Officer in July 2012. more than 16 years’ Compa
Slide 6: Company Strategy: Acquire & develop unconventional resources
Company Strategy: Acquire & develop unconventional resources \ Deliver production growth (INDIA) • Finish proof of concept activities • Convert Contingent Resources to Reserves \ Commercial focus (INDIA) • Executed sales agreement for off-spec gas • Create sustainable cash flows \ Leverage expertise
Slide 7: Strategic Transformation Underway
Strategic Transformation Underway 2005 - 2012 2013 + Target Conventional onshore/offshore Unconventional onshore Stage Explorer Producer & Explorer Location Indian Ocean Rim Indian Ocean Rim Opportunity Early - Late Mature Early entry into world-class resource • Shifting to a “more manageable” execu
Slide 8: Cambay Asset: Overview
Cambay Asset: Overview \ Acreage • Cambay Basin: large producing province • Cambay Field: 161 km² (~40,000 acres) • Oilex drilled first horizontal multi-stage frac well in India \ Commercial Environment • High sustainable gas prices • Large unsatisfied gas demand • Accessible infrastructure with cap
Slide 9: Why Cambay PSC?
Why Cambay PSC? Geology proven to deliver Cambay-11 Y – flowed trace oil and gas Cambay-76H Cambay-63 Cambay-05 2,800m of prospective X – 0.20 MMscfgd + 157 bcpd Y – 4.1 MMscfgd + 170 bcpd Y – produced little oil section Cambay-20 Cambay-19z Y – 3.8 MMscfgd + 125 bcpd 36 wells penetrated the Y –
Slide 10: Cambay Asset: Significant tight reservoir potential
Cambay Asset: Significant tight reservoir potential Substantial Strong domestic Applying proven Resource demand technology • Independent assessment • Indian economy projected • Horizontal drilling and Netherland Sewell & to expand >8% annually hydraulic fracturing Associates Inc. (Oct 2011) by 2015
Slide 11: Cambay Work Programme and Budget Approved to March 2014
Cambay Work Programme and Budget Approved to March 2014 \ Highlights Partner’s and Government’s confidence \ Main components: 3 well work-overs − All completed successfully – “work the plan” − Target increased liquids production – cashflow • Restart Cambay-73 − Sell small volumes of off-spec gas –
Slide 12: Cambay-73 Well: Production imminent
Cambay-73 Well: Production imminent \ Gas Sales Agreement signed • Initial term - two years • Awaiting Government Cambay-76H endorsement • Contract price confidential until GSA endorsed • Flow data will provide critical production rate information Cambay-73 \ Geologically similar to Cambay-76H reser
Slide 13: Cambay 2013-14 Work Programme: Drilling locations
Cambay 2013-14 Work Programme: Drilling locations D3 Location D2 D2 (Horizontal) Location D3 C-76H Location D1 D1 (Horizontal) (Horizontal) Cambay-76H Location A (Vertical) Location G (Vertical & Horizontal) Y Zone Oil Target Y Zone Gas/Condensate Target X, Y, Z and Sub Z Zone Oil/Gas/ Condensate Ta
Slide 14: Cambay 2013-14 Work Programme: Drilling locations
Cambay 2013-14 Work Programme: Drilling locations \ Horizontal wells: • X and Y Zones • Near term production • Cash flow \ Vertical wells: • Determine oil and gas distribution • Deeper reservoirs identified by vintage wells • Confirm potential by acquiring modern data Cambay Field cross section 14 @
Slide 15: Cambay Asset: Active forward work programme
Cambay Asset: Active forward work programme 2013 2014 Gas and liquids Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 JV and Government approvals 3 work-over wells Ongoing Cambay 73 restart Preparation production & sales Prepare Drill, frac, Ongoing Cambay firm well & clean-up production & mobilise & test sales Indep
Slide 16: Path to Production and Value: Accomplishments to date
Path to Production and Value: Accomplishments to date Numerous vertical wells with hydrocarbon flows (up to 0.9 MMscfd and ~200 bopd) No formation water production demonstrating hydrocarbon saturated reservoirs and no water-bearing reservoirs accessed by fractures 600m lateral Cambay 76H well
Slide 17: NSAI Independent Resource Estimate for Cambay Asset
NSAI Independent Resource Estimate for Cambay Asset Unrisked Contingent Resource Estimates Low (1C) Best (2C) High (3C) Oil Gas Oil Gas Oil Gas MMstb BCF MMstb BCF MMstb BCF Gross in place 831 672 1,633 1,314 2,888 2,297 Gross recoverable 31 180 83 495 179 1,073 Net OEX rec. 14 81 37 222 81 483 Unri
Slide 18: Substantial Upside in Four Deeper Zones
Substantial Upside in Four Deeper Zones \ Additional potential independently assessed by NSAI \ Undiscovered P50 gross in-place volumes: • Gas: 12.6 Tcf • Liquids: 11,592 MMbbls \ Unrisked P50 gross prospective resources • Gas: 934 BCF • Liquids: 140 MMbbls Cambay Field cross section Netherland Sewe
Slide 19: Portfolio Diversification: Canning Basin, Australia
Portfolio Diversification: Canning Basin, Australia \ Strategic rationale: • Low-cost, low-risk entry into premier emerging unconventional basin • Long-term growth potential and geographical diversity \ Oilex awarded Canning Basin SPA* covering 11,400 km²** • May be prospective for oil and liquids-r
Slide 20: Onshore Australia: Industry majors move on unconventional potential
Onshore Australia: Industry majors move on unconventional potential Jun 2010 Feb 2011 Jun 2012 Mitsubishi A$152m Hess A$55m Statoil US$210m April 2012 Hess undisclosed Feb 2013 Beetaloo Canning Feb 2011 Petrochina CNOOC A$50m US$100m Georgina Galilee Jul 2011 Amadeus Jul 2011 ConocoPhillips Cooper /
Slide 21: Why the Southern Canning Basin?
Why the Southern Canning Basin? \ Technically attractive • 2011 EIA report – Canning Basin has “risked technically recoverable resources ~ 229Tcf” \ Low cost, low risk entry • $0.25 per acre for the SPA work programme L12-08 \ Proximity to Infrastructure • Gas pipeline passes through SPA to mine sit
Slide 22: Canning Basin: Overlooked prospective graben
Canning Basin: Overlooked prospective graben \ Samphire Graben • Well imaged on “depth to Basement” map • Covered by SPA-040 \ Wallal Graben • Not obvious on “depth to Basement” map • Well imaged on seismic data • Interpreted to be substantially deeper than the Samphire Graben \ Low resolution gravi
Slide 23: Wallal Graben: Seismic tells story
Wallal Graben: Seismic tells story \ No satisfactory well-ties available \ Jump correlations with regional seismic data infer: L12-08 • A near-complete Ordovician sequence is preserved L12-09 • Possible thick Goldwyer Formation section − Primary source rock OEX SPA Area • Potential for additional or
Slide 24: Canning Basin: Relative scale comparison
Canning Basin: Relative scale comparison Gazettal blocks + SPA ~4,400,000 acres 24 @oilexltd
Slide 25: Primary Source Rock: Situated in oil / condensate window
Primary Source Rock: Situated in oil / condensate window 25 @oilexltd
Slide 26: US Acreage: Technical maturity and commercial value
US Acreage: Technical maturity and commercial value Cambay Developed Notable transactions demonstrate • Production history • 100s of wells drilled increasing market value of acreage with technical and commercial maturity Tech. Transfer $5,000 – 30,000 / acre • Successful tests • Consol / Noble Energ
Slide 27: Value Creation: Oilex's Unique Market Opportunity
Oilex’s Unique Market Opportunity Oil and gas is Utilise modern proven and the commercial Value Value technology to pursue tight oil potential is outstanding Creation Creation and gas resources Leveraging Deliver growth existing in production technical expertise Focus on Capitalise on India’s long-
Slide 28: Oilex's Investment Proposition
Oilex’s Investment Proposition \ Production, reserves and cash flow are the strategic focus for Cambay Asset \ Apply proven technology, de-risks active forward work programme \ Growth potential beyond Cambay in substantial Canning Basin acreage \ Revitalised asset portfolio and management Portfolio
Slide 29: www.oilex.com.au
www.oilex.com.au Phone: +61 8 9485 3200 Email: oilex@oilex.com.au Twitter: @oilexltd