88 Energy Limited · ASX:88E
88 Energy — Non-Deal Roadshow (September 2015)
27 slides from 88 Energy's roadshow presentation, Sep 14, 2015
Slide 1: Roadshow Presentation September 2015
For personal use only ROADSHOW PRESENTATION SEPTEMBER 2015
Slide 2: Project Icewine, Onshore Alaska: World Class Location, World Class Prize
Project Icewine, Onshore Alaska World Class Location, World Class Prize For personal use only Alaskan Explorers: Alpine Pool (Colville River) > 500 MMBBL REC RESOURCES REPSOL Tarn ALKAID 1 PHECDA 1 WOLFBUTTON 25-6-9 X TALITHA 2 * ICEWINE ICEWINE#1#1 98,182 Spud 4Q Oct2015 15 2.
Slide 3: Investment Overview
Investment Overview Focused solely on a world class oil asset on the Central North Slope of Alaska with dual conventional For personal use only and unconventional liquids-rich objectives High working interest (78% post spud of first well) and Operatorship on very material 98,182 gross contiguous
Slide 4: Company Snapshot
Company Snapshot For personal use only 88 Energy Limited (ASX, AIM 88E) Board and Management Shares on Issue 2,339m Michael Evans Non-Executive Chairman Options on Issue 567m David Wall Managing Director Market Capitalisation (@ A$0.011) A$25.7m Brent Villemarette Non-Executive Director Cash A$10.5m
Slide 5: Project Icewine Highlights
Project Icewine Highlights For personal use only PREMIER ACREAGE POSITION IN STRATEGIC LOCATION Strategic, Tier-1 location • Prolific oil region: 35 miles south of largest conventional oilfield in North America (Prudhoe Bay 15B barrels) • Operational year-round access: acreage position on Dalton Hig
Slide 6: Icewine #1 High Impact Well
Icewine #1 High Impact Well For personal use only • Icewine #1 well near term spud mid October, 2015 N Y WA IGH • NH Primary objective: TRANS ALASKA PIPELINE LTO DA • De-risk and mature HRZ liquids rich shale play • Experienced local Drilling Manager contracted in Alaska • Permitting and bonding on
Slide 7: Icewine #1 Seismic Cross Section
Icewine #1 Seismic Cross Section HRZ liquids rich shale test For personal use only Icewine #1 Primary Objective: • Evaluate & de-risk unconventional HRZ/ Hue liquids rich shale play 5,000ft with coring/ logging program • HRZ shale laterally continuous • Presence, thickness, TOC and 10,000ft maturity
Slide 8: Icewine #1 Unconventional Objective: HRZ/Hue Shale Liquids Rich Play
Icewine #1 Unconventional Objective: HRZ/ Hue Shale: Liquids Rich Play For personal use only HRZ characteristics indicative of tier-1 unconventional ALCOR #1 oil potential HRZ Matrix Porosity adjusted for Kerogen Related Porosity • Thick condensed marine shale Depth (feet) TOC Matrix Kerogen - • Lat
Slide 9: HRZ Liquids Rich Play Post Drill Evaluation
HRZ Liquids Rich Play Post Drill Evaluation For personal use only • Different to conventional plays where discovery of hydrocarbons can normally be determined immediately from log analysis • Post drill core evaluation in stages - critical to validate key productivity factors in shale plays • Three p
Slide 10: HRZ Liquids Rich Play – A World Class Prize
HRZ Liquids Rich Play – A World Class Prize For personal use only HRZ IP Prediction • Exceptional porosity in HRZ - consequence of unique geologic history • >13% porosity indicated on log data • Exceeds the ‘sweetspot’ average in all other Normalized HPV US shale plays • As a result, resource concen
Slide 11: High Impact Conventional Discoveries - 2015
High Impact Conventional Discoveries - 2015 For personal use only Icewine #1 Scheduled to spud Oct 15 • 2015 Repsol discoveries highlight significant conventional potential yet to be discovered on the North Slope • Brookian conventional discovery in neighbouring acreage potential for analogous plays
Slide 12: Multiple Conventional Play Types
Multiple Conventional Play Types #1 Ranked Region in North America For personal use only • Central North Slope ranked #1 in the USA with 4B barrels remaining potential • Over 2B barrels estimated across the Central North Slope in Brookian conventional plays • Brookian petroleum systems developed acr
Slide 13: Indicative Exploration Program
Indicative Exploration Program For personal use only Program designed to fast-track evaluation of Icewine prospectivity Indicative Exploration Budget: 2H 2015 – 2016 Phase I: Drilling next month Exploration well Icewine #1 : Project Budget Post Rebate * USD MM USD MM • October 2015 spud - vertical h
Slide 14: North Slope Transactions
North Slope Transactions Armstrong/ Repsol - Great Bear / Otto For personal use only • Armstrong’s farmout deal to Repsol yielded 94 fold return on implied value of acreage • Repsol investment of US$768m vindicated by 2015 program confirming two large commercial discoveries • Preliminary development
Slide 15: Corporate Timeline / Upcoming Catalysts
Corporate Timeline / Upcoming Catalysts For personal use only Project Generation to Fully Funded High Impact Exploration Drilling in only 12 Months Program About to Commence Completed Completed Funding for drilling Commence 3D placement of placement of with $12m placement seismic shoot $1.2 million
Slide 16: Near-Term Catalysts
Near-Term Catalysts For personal use only DRIVING VALUE CREATION – MULTIPLE POTENTIAL SHARE PRICE CATALYSTS Rig contract awarded for Icewine #1 drill – Kuukpik 5 - COMPLETE Finalise Icewine #1 permitting – imminent Mobilise rig to Icewine #1 drill site Spud Icewine #1 exploration well in Oct
Slide 17: Contacts
Contacts For personal use only Managing Director: Brokers: David Wall Australia dwall@88energy.com Hartleys Ltd As Corporate Advisor: Mr Dale Bryan + 61 8 9268 2829 Registered Office: Level 1, 83 Havelock St, West Perth United Kingdom WA 6005 Cenkos Securities Plc As Nominated Adviser and Broker: Mr
Slide 18: Energy Sector – Stay Away?
Energy Sector – Stay Away? For personal use only SECTOR MOST UNDER-OWNED SINCE 2002 “This time its different” – rarely true Energy under-owned by most since 2002 Subsequent price increased from $20-$130 Underinvestment at decade high due to layoffs and deferments Politics and speculation p
Slide 19: Unconventional HRZ Shale Play: Whole Core Analysis Methodology
Unconventional HRZ Shale Play: Whole Core Analysis Methodology For personal use only 19
Slide 20: HRZ - Unique Geologic History
HRZ - Unique Geologic History For personal use only • New unconventional play type: high-resource HRZ, Project Icewine, AK concentration backarc marine ‘shale’ Backarc; abundant volcanic ash & glass HRZ highest quality oil source on Slope • Rock composition and characteristics: X-Ray Diffraction and
Slide 21: Project Icewine: Independent Assessment Unconventional Resource Potential
Project Icewine: Independent Assessment Unconventional Resource Potential For personal use only PROSPECT ICEWINE ESTIMATED PROSPECTIVE OIL RESOURCE * NORTH SLOPE, (HRZ, HUE, KINGAK, & SHUBLIK SHALES) RISKED ALASKA UNRISKED (41% Probability) CASE LOW AVERAGE HIGH MEAN RISKED MEAN GROSS (MMBO) 244.3 4
Slide 22: Unconventional Success Case Illustrative Well Economics
Unconventional Success Case Illustrative Well Economics* *Illustrative Economics assume success, for which there is no guarantee For personal use only Assumptions Well Economics Area Gross Spacing Well EUR per Opex Metric (@US$65 oil) Value Wells (Acres) Cost well per bbl (US$m) (mmbbl) (US$) NPV10
Slide 23: Conventional Success Case Illustrative Well Economics
Conventional Success Case Illustrative Well Economics* *Illustrative Economics assume success, for which there is no guarantee For personal use only Assumptions Well Economics Area Gross Spacing Well EUR per Opex Metric (@US$65 oil) Value Wells (Acres) Cost well per bbl (US$m) (mmbbl) (US$) NPV10 (s
Slide 24: Icewine Conventional Prospectivity
Icewine Conventional Prospectivity For personal use only * Icewine #1 Brookian Play Potential: Estimated 2.1 Billion barrels of oil potential in two B R O O K I A N play types across the North Slope (USGS 2013): DELTA • Delta Topset TOPSET • Shallow marine to non-marine sands • Umiat Field, Nanushuk
Slide 25: Project Icewine, Onshore Alaska: Investment Essentials
Project Icewine, Onshore Alaska Investment Essentials For personal use only Located in the premier petroleum province of North America which hosts the largest oil field complex in the United States ~100,000 contiguous acre block onshore North Slope Underexplored HRZ liquids rich shale play fairw
Slide 26: Disclaimer
Disclaimer For personal use only The information contained in these slides has been prepared by 88 Energy Limited (the “Company”). The information contained in these slides, the presentation made to you verbally and any other information provided to you (in writing or otherwise) in connection with t
Slide 27: Disclaimer (cont.)
Disclaimer (cont.) For personal use only Any failure to comply with this restriction may constitute a violation of securities laws. No action has been or will be taken by the Company that would permit a public offer of its securities in any jurisdiction in which action for that purpose is required.