Empyrean Energy Plc · LSE:EME
Empyrean Energy — Shareholder Meeting (September 2017)
28 slides from Empyrean Energy's shareholder meeting presentation, Sep 11, 2017
Slide 1: Annual General Meeting
Sacramento Basin Project California Annual General Meeting Block 29/11 China 11 September 2017 Duyung PSC Indonesia EMPYREAN ENERGY PLC | AGM 2017
Slide 2: Forward-looking statements
Forward-looking statements This presentation may contain forward-looking statements and information. It both represents management's current expectations concerning future events and are subject to known and unknown risks and uncertainties. A number of factors could cause actual results, performance
Slide 3: Agenda - Annual General Meeting
Agenda - Annual General Meeting 1. Current Capital structure Shares on Issue: 398,995,110 Options on Issue: 30,000,000 Market Cap: ~£72.8m @ 18.3p 2. 2017 Highlights 3. Assets update ▪ Duyung PSC, Indonesia (10% Working Interest) ▪ Sacramento Basin, California (25-30% Working Interest) ▪ Block 29/11
Slide 4: 2017 Highlights
2017 Highlights ✓ Post Sugarloaf interest sale, successfully repositioned the Company ✓ Three cornerstone assets with transformational value proposition are in place ✓ Significant progress has been made in all three assets ✓ Significant gas discovery has been made in Mako South # 1 well ✓ Currently
Slide 5: Exploration central to long-term growth strategy
Exploration central to long-term growth strategy ▪ Focus on low cost, high-margin plays in prolific basins with compelling market dynamics ▪ Working on seismic and geological assets to create & high-grade prospects ▪ Regularly evaluate attractive exploration opportunities for augmenting the existing
Slide 6: Mako South # 1 Gas Discovery
Duyung PSC, Indonesia Mako South # 1 Gas Discovery EMPYREAN ENERGY PLC | AGM 2017
Slide 7: Duyung PSC- Background
Duyung PSC- Background COMPELLING MARKET DYNAMICS ▪ Shallow water depths 80 – 100 metres (requires only jack-up rigs, not semisub) ▪ The West Natuna Basin is one of Asia’s most prolific proven basins ▪ Duyung PSC is located along the West Natuna Transport System, supplying gas to Singapore and Indon
Slide 8: Mako South -1 Results exceeded pre-drill expectations
Mako South -1 Results exceeded pre-drill expectations ▪ 23 feet of net pay in the shallow Intra Muda Formation ▪ Excellent reservoir quality rock ▪ High-quality gas close to 100% methane, no CO2, H2S, or other contaminants ▪ Final stabilised flow rate of 10.9 million cubic feet of gas per day ▪ Flow
Slide 9: Mako Gas accumulation- Large 2C resources
Mako Gas accumulation- Large 2C resources Mako South-1 well has exceeded our expectations ▪ Mako is a very large gas accumulation with a lateral extent of approximately 340 km2 ▪ Excellent reservoir quality rock with high porosity and permeability Excellent reservoir quality, particularly the multi
Slide 10: Indonesia Duyung PSC– Forward plan
Indonesia Duyung PSC– Forward plan OPERATOR WORKING DILIGENTLY TOWARDS POD ▪ With the successful drilling and testing of Mako south -1 well, the Duyung PSC is set to enter the next phase ▪ Next phase is called Penentuan Status Explorasi (PSE) ▪ PSE phase will incorporate ▪ Static and dynamic modelli
Slide 11: Dempsey, Alvares Prospects & Dempsey Trend AMI
Sacramento Basin, California Dempsey, Alvares Prospects & Dempsey Trend AMI EMPYREAN ENERGY PLC | AGM 2017
Slide 12: Sacramento Basin – Geological background
Sacramento Basin – Geological background PROLIFIC BASIN WITH PROVEN HYDROCARBON PLAYS Source: Xstate Resources Investor Presentation July 2017 ▪ Large forearc basin ▪ Prolific proven source rock ▪ Large conventional trap ▪ Multiple reservoirs Source: Xstate Resources Investor Presentation July 2017
Slide 13: Sacramento Basin – Alvares and Dempsey Prospects
Sacramento Basin – Alvares and Dempsey Prospects TARGETING BOTH JURASSIC AND CRETACEOUS PLAYS Source: Xstate Resources Investor Presentation July 2017 EMPYREAN ENERGY PLC | AGM 2017 13
Slide 14: Sacramento Basin- Compelling market dynamics
Sacramento Basin- Compelling market dynamics DEMPSEY GAS HAS A READY MARKET ▪ California gas demand approximately 2.5 Tcf per year ▪ Average 7.0 billion cubic feet (BCF) gas a day consumed ▪ At peak, approximately 11.0 billion cubic feet a day consumed ▪ California imports 90%+ of gas ▪ Production i
Slide 15: Rapid gas sale – access to Surface facilities and metering station
Rapid gas sale – access to Surface facilities and metering station ▪ Producing assets: Rancho Capay and Los Medanos gas fields ▪ Producing wells hold related leases without annual rentals for further appraisal and exploration ▪ Long-term relationship with very experienced local operator ▪ Infrastruc
Slide 16: Dempsey large trap – Well defined by 3D seismic
Dempsey large trap – Well defined by 3D seismic ▪ Large three way closed structure ▪ Well defined by 3D seismic ▪ Significant follow up potential *Refer SGC ASX release 4 Sept 2014 EMPYREAN ENERGY PLC | AGM 2017 16
Slide 17: Dempsey #1-15 well results
Dempsey #1-15 well results TARGETING BOTH JURASSIC AND CRETACEOUS PLAYS Potential net pay Awaiting testing Potential net pay Awaiting logging and testing Potential net pay Awaiting logging and testing Source: Xstate Resources Investor Presentation July 2017 EMPYREAN ENERGY PLC | AGM 2017 17
Slide 18: California – Forward Plan
California – Forward Plan ▪ Any successful flow test of gas in Dempsey #1-15 will enable the Joint Venture to utilise the existing owned and operated infrastructure for low cost, rapid development, and early cash flow ▪ Next step will be to evaluate the three ‘Dempsey look alike’ drilling opportunit
Slide 19: Jade and Topaz Prospects
Block 29/11, China Jade and Topaz Prospects EMPYREAN ENERGY PLC | AGM 2017
Slide 20: China Block 29/11 – 3D seismic survey has been completed
China Block 29/11 – 3D seismic survey has been completed ▪ 3D survey has been successfully completed without any HSE issue ▪ We now have high quality 3D seismic coverage over two high value prospects ▪ CNOOC provided approval (first time ever to any foreign operator) for acquiring data outside the b
Slide 21: 3D survey - Data quality is excellent
3D survey - Data quality is excellent ▪ Initial review of 3D data indicates ▪ Excellent data quality ▪ Deeper reflectivity is preserved ▪ At the time of this evaluation, only partial data was available Target for review Reservoir Multiples EMPYREAN ENERGY PLC | AGM 2017 21
Slide 22: Jade Prospect – 4-way dip closed trap
Jade Prospect – 4-way dip closed trap A HIGH IMPACT / LOW RISK PROSPECT ▪ Carbonate build-up B Jade Prospect ▪ 3D seismic data has confirmed A ▪ 4-way dip closed structure ▪ Larger fault dependent closure B ▪ Final processing of 3D data is Jade Prospect expected to further enhance trap definition A
Slide 23: Topaz Prospect- Large 3-way closed trap
Topaz Prospect- Large 3-way closed trap TOPAZ PROSPECT IS A LARGER ANALOGUE OF LIUHUA 16-2 OIL DISCOVERY ▪ A large faulted 3-way Topaz Prospect Topaz Prospect structure ▪ Very close analogue for nearby LH16-2 oil discovery ▪ Located mid-point between Jade Prospect LH11-1 and LH16-2 oil accumulations
Slide 24: Pearl Prospect – 3-way closed trap
Pearl Prospect – 3-way closed trap PEARL PROSPECT IS A ANALOGUE OF TOPAZ PROSPECT ▪ A faulted 3-way structure Pearl Prospect ▪ Close analogue for nearby Pearl Prospect LH16-2 oil discovery and Topaz prospect ▪ Close to LH16-2 oil accumulations Preliminary Prospective Resources Estimates Low estimate
Slide 25: Next 6 months- Comprehensive Technical Assessment
Next 6 months- Comprehensive Technical Assessment UNDERSTANDING MIGRATION PATHWAY TO PROSPECTS IS KEY FOCUS 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 3D survey Planning / Acquisition 3D Data Processing Basin Modelling/Migration pathway mapping Prospects reserves/risk assessment Drilling planning EMPYREAN EN
Slide 26: Next 6 months - Comprehensive Technical Assessment
Next 6 months - Comprehensive Technical Assessment UNDERSTANDING MIGRATION PATHWAY TO TOPAZ AND JADE PROSPECTS IS KEY FOCUS This will enable our exploration effort to move forward with more precision and lower exploration risks Jade and Topaz Prospects Four CNOOC discoveries since 2010: Proven area
Slide 27: Significant value has been added by 3D survey
Significant value has been added by 3D survey ▪ 3D seismic survey data has firmed up key prospects in Block 29/11 which were initially identified by the previous operators using regional 2D seismic data ▪ Preliminary mapping of 3D data indicates that these prospects could hold over 590 million barre
Slide 28: Strategy has started to deliver
Strategy has started to deliver ▪ Empyrean management has successfully framed and executed a strategy to participate in a transformational portfolio in prolific petroleum basins with compelling market dynamics ▪ Mako South gas discovery and the significant gas shows in Dempsey#1-15 well are early in
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