Empyrean Energy Plc · LSE:EME
Empyrean Energy — Investor Presentation (August 2017)
20 slides from Empyrean Energy's investor presentation, Aug 1, 2017
Slide 1: Empyrean Energy Plc Corporate Presentation Q2 2017
Empyrean Energy Plc Corporate Presentation Q2 2017 EMPYREAN ENERGY PLC | CORPORATE PRESENTATION Q2 2017
Slide 2: Empyrean at a Glance
Empyrean at a Glance BUILDING AN ASIAN OFFSHORE OIL AND GAS PORTFOLIO WITH MATURE TARGETS AND COMPANY MAKING RESERVE POTENTIAL Two assets offshore Asia – China and Indonesia China - Large block with mature, transformative oil potential in a proven basin ▪ 100% exploration rights for Block 29/11 loca
Slide 3: Empyrean Focus - World-Class Prolific Basins
Empyrean Focus - World-Class Prolific Basins Duyung Block Block 29/11 EMPYREAN ENERGY PLC | CORPORATE PRESENTATION Q2 2017 3
Slide 4: Strategy
Strategy TO CONDUCT CAREFULLY SELECTED PROGRAMMES WITH GENUINE POTENTIAL TO TRANSFORM THE COMPANY China ▪ Conduct 3D seismic survey over two excellent prospects (Jade and Topaz) in Q2 2017 ▪ Leverage 3D data and in-house knowledge-base to secure a farm-in partner ahead of drilling both targets Indon
Slide 5: China
China EMPYREAN ENERGY PLC | CORPORATE PRESENTATION Q2 2017 5
Slide 6: China: Positive Host Government
China: Positive Host Government CHINA’S STRONG DEMAND FOR OIL IS CREATING AN OPPORTUNITY FOR FOREIGN INVESTORS ▪ The government is making greater investments in more technically challenging upstream hydrocarbon areas and renewable energy projects ▪ China is focused on attracting more private investm
Slide 7: China: Favourable Commercial Terms for Low Oil Price
China: Favourable Commercial Terms for Low Oil Price CHINA HAS ONE OF THE BEST FISCAL REGIMES IN ASIA AND DELIVERS ROBUST ECONOMICS AT AN OIL PRICE OF US$40/BBL BASED ON INTERNAL CONCEPTUAL MODEL 30 mmbbl Breakeven at an oil price of US$45/bbl NPV10 (US$50/bbl) US$10M 50 mmbbl Breakeven at an oil pr
Slide 8: The Pearl River Mouth Basin (PRMB)
The Pearl River Mouth Basin (PRMB) AS ONE OF THE LARGEST AND MOST PROLIFIC OFFSHORE AREAS OF CHINA, PRMB IS A DESTINATION FOR INTERNATIONAL UPSTREAM COMPANIES EMPYREAN ENERGY PLC | CORPORATE PRESENTATION Q2 2017 8
Slide 9: Block 29/11: A Snapshot
Block 29/11: A Snapshot ▪ Empyrean 100% Operator Operator ▪ 1,800 sq km 3D Perspective and size ▪ Water depths from 340-600 meters View of Top Liuhua 11-1 Oil T50 Zhujiang ▪ Directly south of the largest oil field in the basin, Field Carbonate Liuhua 11-1 oil field complex, which contains 1.3 Liuhua
Slide 10: Jade & Topaz Prospects: Sweet-spot Locations
Jade & Topaz Prospects: Sweet-spot Locations Huizhou Sag Carbonate Reservoir Block 29/11 Enping Sag Sweet Spot Favourable Petroleum System Light Oil Sweet Spot Seal Sweet Spot Baiyun Sag EME EMPYREAN ENERGY PLC | CORPORATE PRESENTATION Q2 2017 10
Slide 11: Jade Prospect
Jade Prospect A HIGH IMPACT / LOW RISK DRILL READY TARGET ▪ Carbonate build- up ▪ 4-way dip closed structure mapped on close grid good quality 2D seismic data ▪ On trend with the recent CNOOC oil discoveries immediately west and south of block EMPYREAN ENERGY PLC | CORPORATE PRESENTATION Q2 2017 11
Slide 12: Topaz Prospect
Topaz Prospect TOPAZ PROSPECT IS A LARGER ANALOGUE OF LIUHUA 16-2 OIL DISCOVERY ▪ A large faulted 3- way structure ▪ Very close analogue for nearby LH16-2 oil discovery ▪ Located mid-point between LH11-1 and LH16-2 oil accumulations ▪ Encased in marine shale EMPYREAN ENERGY PLC | CORPORATE PRESENTAT
Slide 13: Future Work Programme: 3D Seismic Survey
Future Work Programme: 3D Seismic Survey ▪ 3D survey has been optimally designed to include crucial well control ▪ CNOOC has granted approval to shoot seismic outside of the block’s boundary ▪ Contract negotiation with the survey contractor nearing completion ▪ Aiming to commence survey in mid Q2 20
Slide 14: Indonesia
Indonesia EMPYREAN ENERGY PLC | CORPORATE PRESENTATION Q2 2017 14
Slide 15: Indonesia Gas Demand: Poised to Take Off
Indonesia Gas Demand: Poised to Take Off NATURAL GAS DEMAND GROWTH IS PROJECTED TO INCREASE BY 80% IN INDONESIA ALONE FROM 2015 TO 2025 ▪ 4th largest population in the world at 260 million (expected to grow to 400 million by 2050) therefore demand for power, and therefore gas, is high ▪ Gas is expec
Slide 16: Duyung PSC: A Snapshot
Duyung PSC: A Snapshot AN ATTRACTIVE GROWTH OPPORTUNITY WITH A CLEAR PATH TO COMMERCIALISATION FOLLOWING SUCCESSFUL APPRAISAL, PLANNED FOR Q2/Q3 2017 ▪ Conrad Petroleum Pte (80% Interest and Operator)* Operator and size ▪ Empyrean – 20% WI* ▪ 1,145 sq km ▪ Competent Person Report has 2C and 3C Resou
Slide 17: Mako South-1 Well Location
Mako South-1 Well Location MAP SHOWING THE STRUCTURE AND GAS WATER CONTACT OUTLINE OF MAKO FIELD RELATIVE TO THE DUYUNG PSC BOUNDARIES AND LOCATION OF MAKO SOUTH-1 WELL EMPYREAN ENERGY PLC | CORPORATE PRESENTATION Q2 2017 17
Slide 18: Exploration Plans
Exploration Plans The location of the well has been optimised to ensure the completion of the primary objectives: ▪ Establish the rock and fluid properties of the reservoir, in particular permeability and gas saturation. This will include a DST (Drill Stem Test) or similar alternative ▪ To test upsi
Slide 19: Investment Case
Investment Case Building an Asian Targeting world-class Portfolio comprises offshore oil and gas prolific basins offshore appraisal assets located portfolio with mature China and Indonesia close to proven targets and company discoveries which have making reserve potential infrastructure High impact
Slide 20: Empyrean Energy Contact
Empyrean Energy Tom Kelly Tel: +61 8 9481 0389 St Brides Partners Tel: +44 (0) 207 236 1177 EMPYREAN ENERGY PLC | CORPORATE PRESENTATION Q2 2017 20
Empyrean Energy — Investor Presentation (August 2017) on 6ix