Prominence Energy Limited · ASX:PRM
Prominence Energy — Sun Resources NL — Oil and Gas Investment Symposium 2013
21 slides from Prominence Energy's conference presentation, Apr 17, 2013
Slide 1: Unlocking the Woodbine Tight Oil Play
UNLOCKING THE WOODBINE TIGHT OIL PLAY Oil and Gas Investment Symposium 16/17 April 2013 Govert van Ek Managing Director
Slide 2: Disclaimer
DISCLAIMER This document has been prepared by Sun Resources NL (“Sun”) for the purpose of providing a company and technical overview to interested analysts/ investors to enable recipients to review the business activities of Sun. This presentation is this by its nature limited in scope and is not in
Slide 3: Corporate Overview
CORPORATE OVERVIEW CAPITAL STRUCTURE SHARE PRICE HISTORY Ordinary shares 1.98 billion Performance Options 1 140 million Unlisted Options (various prices) 2, 3 128 million Market capitalisation (at 5 cents) $100 million (undiluted) Cash 4 $5.3 million Enterprise Value $94.7 million 1. Performance opt
Slide 4: About Sun Resources
ABOUT SUN RESOURCES • In 2012, Sun re-focused from international conventional oil projects to the US Woodbine tight oil play. Sun is a Woodbine unconventional oil exploration and appraisal company. • Sun was the ASX's first mover into the Woodbine play, and offers significant exposure to the play. •
Slide 5: Texas Projects Map
TEXAS PROJECTS MAP ASX peer successfully developing the Eagle Ford Shale. Many significant majors including: BHP, ExxonMobil and ConocoPhillips, Sun Resources East focus Texas are also active in the area Oil field Play Continues Strike, Eureka, Aurora 5
Slide 6: Woodbine Project Areas
WOODBINE PROJECT AREAS Potential in Multiple Stacked Horizons Initially focused on exploiting the Woodbine horizon, however significant potential exists in seven “Fraccable” pay intervals: Horizon Avg. Depth 1 Austin Chalk 5,600 feet 2 Sub-Clarksville 5,700 feet 3 Upper Eagle Ford Shale 5,800 feet U
Slide 7: About the Woodbine Oil Play
ABOUT THE WOODBINE OIL PLAY Favourable Characteristics • Substantial vertical production and growing number of horizontal wells are continuing to de-risk parts of the Woodbine play. • Hydrocarbon bearing formation with high resistivity (oil saturated) sand with 10%+ porosity (storage capacity). This
Slide 8: Example Lateral Well in the Woodbine
EXAMPLE LATERAL WELL IN THE WOODBINE Sun’s recent wells are 7,000’ Horizontal Length 8
Slide 9: Woodbine Well Type Curve
WOODBINE WELL TYPE CURVE Note: Low initial decline rates Source: Crimson Exploration Inc, Presentation at Houston Producers’ Forum, 2012 9
Slide 10: Sun's Growing Acreage in the Woodbine Oil Fairway
SUN’S GROWING ACREAGE IN THE WOODBINE OIL FAIRWAY SUN’S FOOTPRINT IN LEON COUNTY, TEXAS FOUR PROJECT AREAS Over 20,000 net acres, with 100% working interest in 60% of leases. On trend with Woodbine production and having stacked multi-zone potential. 50% WI in Amerril and Normangee Oil Projects
Slide 11: Material Lease Position
MATERIAL LEASE POSITION Working Interest (WI) in 29,084 gross acres (20,020 net) Project Working Net Revenue Interest Acres Interest (WI) (NRI) Net Gross Delta Oil 100% 75% 11,820 11,820 Amerril Oil 50% 37.5% 6,147 12,293 Richland Beeler #1H 13.54% 10.54% - - Richland Oil (Remainder) 16.7% 12.5% 227
Slide 12: Recent Expansion Around Our Acreage
RECENT EXPANSION AROUND OUR ACREAGE Increasing activity around lease areas Buffalo Oil Field Sub-Clarksville sand Alabama Ferry: Oil in Glen Rose Fm 2012 Halcón purchase Woodbine production from Petromax for US$500 million 26 March 2013, March 2013, EOG EOG acquire 75,000 Recent Successful acres fro
Slide 13: Recent Milestones
RECENT MILESTONES • Acquired Woodbine acreage in 2012 and later raised A$20 million to fund Woodbine activity resulting in seven wells being completed by end of March 2013 • Issued shares and cash for a 50% stake in Amerril Oil Project: – Share deal saved Sun ~US$4.6 million cash – Amerril Energy LL
Slide 14: Seale #1H, Fraccing, April 2013
SEALE #1H, FRACCING, 4 APRIL 2013
Slide 15: Seale #1H, Sands and Propants, April 2013
SEALE #1H, SANDS AND PROPANTS, 4 APRIL 2013
Slide 16: Seale #1H, Hydraulic Pumps and Slurry Mixing
SEALE #1H, HYDRAULIC PUMPS AND SLURRY MIXING, 4 APRIL 2013
Slide 17: Sun Resources' Woodbine Road Map
SUN RESOURCES’ WOODBINE ROAD MAP Delivering on Stated Objectives Phase 1 Phase 2 Phase 3 • Conclude initial acquisition • Drill horizontal appraisal • Commence development of 10,000 Delta Oil Project well(s) – Four horizontals drilling - ~1 horizontal well acres – Exceeded initial and two vertical w
Slide 18: Looking Ahead
LOOKING AHEAD • T. Keeling #1H and Seale #1H now being fracced. Expectation this will: » firm up Woodbine play concept, development/well approach and economics » yield well IP rates ~ 500+ boepd; oil flow builds up over dewater period; » confirm IP decline rates driven by good natural and induced fr
Slide 19: Why Sun Resources & Why Now?
WHY SUN RESOURCES & WHY NOW? • Texas has “can do attitude” to oil, is infrastructure rich, has deep oil demand and excellent fiscal terms, ideal components for increasing Sun’s value. Hook up and sale of oil is fast and relatively cheap in Texas. • Sun has exposure to large and material (20,020 net
Slide 20: End of Presentation – Thank You!
END OF PRESENTATION – THANK YOU !
Slide 21: Contact Details
SUN resources2 Contact Details: : +61 8 9321 9886 : +61 8 9321 8161 : +61 405 370 994 > gve@sunres.com.au Govert van Ek MANAGING DIRECTOR : Level 2, 30 Richardson Street, West Perth : P.O. Box 1786, West Perth WA 6872 > Www.sunres.com.au ASX: SUR J SUN UP UNLOCKING VALUE IN THE WOODBINE TIGHT OIL PL
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