Pancontinental Energy Nl · ASX:PCL
Pancontinental Energy Nl — Pancontinental Oil & Gas NL — Shareholder Meeting (November 2013)
39 slides from Pancontinental Energy Nl's shareholder meeting presentation, Nov 21, 2013
Slide 1: Annual General Meeting Presentation
For personal use only ANNUAL GENERAL MEETING PRESENTATION 22 November 2013 1
Slide 2: Pancontinental Oil & Gas (ASX: PCL)
Pancontinental Oil & Gas (ASX: PCL) • Hydrocarbon discoveries in Africa will change the global energy dynamic For personal use only • PCL is positioning to significantly benefit from this rare event • Working oil and gas systems proven offshore Kenya in only 2012, offshore Namibia in only 2013 Large
Slide 3: Early Mover, Track Record, Turning Point
Early Mover, Track Record, Turning Point For personal use only Woodside farms Gippsland into Licenses L6 Petroleum (now and L8 FAR) farms into …for over 10 years Pancontinental has: License L6 • Secured African acreage before it becomes highly prized • Introduced major players as partners through fa
Slide 4: Corporate Snapshot
Corporate Snapshot Capital Structure Capital Structure Shareholder Overview For personal use only Shares on Issue 1,151 m Others Board & Mgmt Options on Issue1 5m 15% Market Cap. (at $0.064) $74m 58% Cash (30 Sep 2013) – see Example Use of Funds slide 31 $33 m 27% Debt Nil Institutional Enterprise V
Slide 5: In Perspective – Alongside Heavyweights
In Perspective – Alongside Heavyweights Pancontinental Joint Venture Partners For personal use only Partner Market Capitalisation Project with Pancontinental Notes (Approx) US$ BG Group $80 Billion Kenya L10A & L10B • Seventh largest company on the London Stock Exchange • Biggest supplier of LNG to
Slide 6: Offshore Kenya
For personal use only OFFSHORE KENYA..... 6
Slide 7: Offshore Kenya – Factors for Success
Offshore Kenya – Factors for Success THE THEORY – Favourable Depositional Environment For personal use only • The Tana River delta developed inboard from the Davie – Walu Ridge into the Tembo and Maridadi Troughs Schematic of Cretaceous and • Jurassic to Tertiary restricted depositional Kenya Tertia
Slide 8: Offshore Kenya – Factors for Success
Offshore Kenya – Factors for Success THE SETTING – Recent Discoveries and Building on Success For personal use only Onshore Northern Kenya Major Oil Discoveries by PCL’s • Only 3 wells in the last five years offshore Kenya - Tullow Oil and Africa Oil Four Blocks - One gas discovery; and Oil - One we
Slide 9: Kenya Block L10A
Kenya Block L10A For personal use only Prime Acreage, World-Class Joint Venture • Offshore Kenya - Pancontinental 15% • BG (Operator) 40%, PTTEP 25%, Premier Oil 20% • 4,962 sq km (1,226,136 acres) • Water depth 200m to 1,800m & close to Mombasa Port Significant Oil Opportunity • Extensive 3D seismi
Slide 10: Kenya L10A Exploration
Kenya L10A Exploration Multiple Play Types For personal use only • Miocene Reefs • Oil interpreted from two Source Kitchen “Troughs” • Tertiary & Cretaceous • Drilling Sunbird Miocene Reef early 2014 Channels • Cretaceous anticlines • Channel and turbidite fan sands Sunbird Starling West Prospects a
Slide 11: Kenya L10A/L10B Sunbird Prospect
Kenya L10A/L10B Sunbird Prospect Sunbird Prospect For personal use only Reef Fore-reef • Large Miocene Reef build-up Core Talus • Prospect covers 73 sq km, with vertical relief of approximately 700m. The well will be drilled to at least 3,000m subsea. Water depth is 725m. Sunbird Prospect • Mature E
Slide 12: Kenya Block L10B
Kenya Block L10B Prime Acreage & Joint Venture For personal use only • Offshore Kenya • Pancontinental 15% • BG (Operator) 45%, PTTEP 15%, Premier Oil 25% • 5,585 sq km (1,380,082 acres) • Water depth 300m to 2,000m and close to Mombasa Port Significant Oil Opportunity • Extensive 3D & 2D seismic -
Slide 13: Kenya L10B Exploration
Kenya L10B Exploration Multiple Play Types For personal use only • Two interpreted Oil Kitchen “Troughs” • Miocene Reefs • Aggressive Programme led by BG Group • Tertiary & Cretaceous • Drilling Sunbird Miocene Reef early 2014 in L10A Channels • Drilling possible clastic prospect later in 2014 - L10
Slide 14: Kenya L10A & L10B Prospects & Leads
Kenya L10A & L10B Prospects & Leads Miocene Reef Prospects For personal use only • Stacked reefs developed over Sunbird Prospect Turaco Prospect carbonate platform Babbler Prospect • Multiple follow –ups • Highly productive global analogues • Various drill depths & sizes • Full 3D coverage Interpret
Slide 15: Kenya L10A & L10B Prospects & Leads
Kenya L10A & L10B Prospects & Leads Stratified Cretaceous drape Francolin Prospect For personal use only Rafted Albian blocks • Multiple large Cretaceous fault blocks • Indications of channel sands • Extensive follow-up • Successful Angolan analogue • Full 3D coverage Shallow Hydrocarbon Indicators
Slide 16: Kenya Block L8
Kenya Block L8 Large Block, Respected Partners For personal use only • Offshore Kenya • 5,115 sq km (1,263,944 acres) • Pancontinental 30%* • Origin 40%*, Tullow Oil 30%* Mbawa Gas Discovery, Follow-up Oil Target • 2012 - Mbawa 1 gas discovery – 1st discovery offshore Kenya • Multiple play types, Pr
Slide 17: Kenya L8 – Kipungu Prospect
Kenya L8 – Kipungu Prospect Kipungu Prospect For personal use only • Kipungu (formerly Tai) Prospect- one of a number of potential drilling targets in L8 • Targets deeper than Mbawa gas discovery thought to have OIL potential • Updip extremity of large Cretaceous Turbidite / Fan and Channel system •
Slide 18: Kenya Block L6
Kenya Block L6 For personal use only Large Block, Multiple Opportunities • Offshore Kenya • 5,010 sq km (1,237,998 acres) • Pancontinental 40% , FAR Limited (Operator) 60% • Estimated 3.7 billion barrels of oil or 10.2 trillion cubic feet of gas Prospective Resource* Main Plays • Multiple play types
Slide 19: Kenya L6 – Kifaru Prospect
Kenya L6 – Kifaru Prospect Kifaru Prospect Large Size For personal use only • Areal Closure approx 30 sq km • Oligo- Miocene Reef “Stack” • Vertical 2,000+ m • Kipini Sands second target Follow- Up • Oil-mature Eocene source rocks • Reef “swarm” in L6 predicted at c. 3,500m • Other major 3D prospect
Slide 20: Offshore Namibia
For personal use only OFFSHORE NAMIBIA..... www.pancon.com.au 20
Slide 21: Offshore Namibia – Factors for Success
Offshore Namibia – Factors for Success DEAL FLOW – [x]THE THEORY – Basin Development THE THEORY – [x] For personal use only • Tectonic conjugate of Offshore Brazil Africa • Channel sands and turbidites identified on Slope South America and Basin Floor 1 • Source rocks in Rift and early Drift phases
Slide 22: Offshore Namibia – Factors for Success
Offshore Namibia – Factors for Success DEAL FLOW – [x] THE THEORY – [x] RECENT OIL RECOVERY AND THE FUTURE – Building on Success For personal use only • Wingat 1 Oil Recovery- March 2013, good thick mature source rocks reported • Farmout to Tullow - September 2013 • 3D, 2D and drilling planned 2014
Slide 23: Namibia Block EL 0037
Namibia Block EL 0037 Large Block, Proven Regional Oil System For personal use only • Offshore Namibia-- 17,295 sq km (4,273,687 acres) • Pancontinental 30% free carried • Tullow Oil (Operator) 65%, Paragon (local partner) 5% • Oil Mature Fairway mapped by Pancontinental • First Oil recovery and hig
Slide 24: Namibia EL 0037 – Tullow Farm In
Namibia EL 0037 – Tullow Farm In Tullow Oil Farmed in – September 2013 For personal use only • Tullow Oil becomes partner and Operator after farmin in September 2013 • Tullow is one of the most successful oil explorers in Africa and globally, opening new oil basins in Uganda, Ghana, Kenya and French
Slide 25: Offshore Namibia – Concepts
Offshore Namibia – Concepts 1 Model of Slope and Basin-Floor Deposition Sediment input from HYDROCARBON ENVIRONMENT For personal use only coastal Shelf Area • Oil Recovery from Wingat 1 well - May 2013 • Numerous large Leads in EL 0037 Basin Floor Fans EL 0037 Channel sands • Oil Source Rocks in res
Slide 26: Offshore Namibia – Concepts
Offshore Namibia – Concepts 2 Basin Floor Axis (Transition Zone) For personal use only Slope / Shelf EL 0037 Boundary OIL SYSTEM OIL MATURE • Good Oil Prone Source Rocks seen regionally FAIRWAY - Top Transition • Oil-mature Fairway “Kitchen” in Inner Graben Zone Oil Generated and ----- Oil “Sweet Sp
Slide 27: Fan Anomalies are Main Targets
Fan Anomalies are Main Targets For personal use only • Operator Tullow Oil is a leading expert on hydrocarbon systems along the West African margin • Tullow has mapped four key Leads for 3D seismic in early 2014 • The main Leads- Albatross, Petrel, Gannet and Seagull are mapped in close association
Slide 28: Proposed 3D Seismic Survey
Proposed 3D Seismic Survey Albatross For personal use only Seagull Petrel Gannet • An extensive 3D seismic survey of 3,000 sq km and a 2D seismic survey of 1,000 km are planned in EL 0037 • The 3D Seismic Survey is planned over the four key Leads KEY LEAD AREAS – Sq Km • The 2D Survey will highlight
Slide 29: Summary
For personal use only SUMMARY..... 29
Slide 30: Pancontinental Activity Timeline
Pancontinental Activity Timeline* KENYA JV reforming and For personal use only L8 Gas marketing and other studies Drill planning (30%*) Farmout KENYA Drilling Drilling – 2D & 3D Drilling – L10A & L10B Drill planning Sunbird Contingent Interp Prospect 1 Well Well? (15%) KENYA L6 Farmout Drill plannin
Slide 31: Namibia – Example of Management of Funds
Namibia – Example of Management of Funds EL 0037 FARMOUT For personal use only • Shareholder Equity used to- 120 US$ Millions • Fund entry & early costs ~$1 million • Purchase additional 10% - $4 million 100 • Pancontinental Investment ~ $5 million 80 • Farmout to - • Recover 65% of back-costs 60 •
Slide 32: Pancontinental Summary
Pancontinental Summary • One of the largest African offshore acreage positions of any junior company For personal use only • Track record of – • working with African governments to secure new acreage • introducing high quality major partners for accelerated activity • prudent capital and exploration
Slide 33: Pancontinental Oil & Gas NL
For personal use only Pancontinental Oil & Gas NL Ground Floor 288 Stirling Street Perth, WA 6000, Australia Tel: +61 (8) 9227 3220 Fax: +61 (8) 9227 3211 www.pancon.com.au 33
Slide 34: Board & Management
Board & Management Mr Henry David Kennedy, Chairman Mr Kennedy has had a long association with Australian and New Zealand resource companies. As a technical director he has been instrumental in the formation and/or development of a For personal use only number of successful listed companies. These i
Slide 35: Disclaimer
Disclaimer These materials are strictly confidential and are being supplied to you solely for your information and should not be reproduced in any form, For personal use only redistributed or passed on, directly or indirectly, to any other person or published, in whole or part, by any medium or for
Slide 36: Understanding How Prolific Basins Develop
Understanding How Prolific Basins Develop For personal use only “For basins that are young in their exploration history, the last two years of exploration offshore Kenya and Namibia have been tremendously encouraging to industry and persons who understand the technical implications of the results to
Slide 37: Appendix – EL 0037 – DeGolyer & MacNaughton Report
Appendix 1 – EL 0037 – DeGolyer & MacNaughton Report For personal use only 37
Slide 38: Appendix - Kenya Block L6 – FAR Resource Report
Appendix 2 - Kenya Block L6 – FAR Resource Report For personal use only 38
Slide 39: Appendix - Australian Projects
Appendix 3 - Australian Projects EP 104 / R1 ONSHORE CANNING BASIN Pancontinental Oil & Gas NL – 11.11% For personal use only The RL1 area has been excised from the EP 104 exploration area to allow retention of the Point Torment gas discovery and the Stokes Bay 1 area. RL1 was renewed by the Ministe
Pancontinental Oil & Gas NL — Shareholder Meeting (November 2013) on 6ix