Mec Resources Ltd · ASX:MMR
Mec Resources — 20:20 Investor Series Conference – Innovation in Exploration 2011
47 slides from Mec Resources's conference presentation, Nov 7, 2011
Slide 1: Cover letter to ASX: Company Presentation
7 November 2011 For personal use only Companies Announcements Office Australian Securities Exchange Limited 10th Floor, 20 Bond Street SYDNEY NSW 2000 Dear Sir/Madam Company Presentation 20:20 Investor Series Conference – Innovation in Exploration, Sydney, 7th November 2011 MEC Resources Ltd (ASX: M
Slide 2: 20:20 Investor Series Presentation – Innovation in Exploration
For personal use only 20:20 Investor Series Presentation – Innovation in Exploration 7 November 2011 David Breeze– Executive Director MEC Resources is listed on the Australian Securities Exchange with stock code MMR
Slide 3: MEC Resources Limited
MEC Resources Limited For personal use only MEC Resources offers investment into exploration companies seeking large energy & mineral discoveries The Company is registered as a Pooled Development Fund enabling most MEC shareholders to receive tax free capital gains on their shares & tax free dividen
Slide 4: Advent Energy Shareholding and Assets Structure
Advent Energy Shareholding and Assets Structure For personal use only Other shareholders including MEC Resources Ltd BPH Energy Ltd Grandbridge Ltd (ASX: GBA), & ASX: MMR ASX: BPH Talbot Group Investments 27.4% 44.9% 27.7% Advent Energy Ltd unlisted 100% 100% Top 20 Shareholder Asset Onshore Central
Slide 5: Offshore Sydney Basin – Proven Petroleum Basin with Potential Huge Gas Reserve
Offshore Sydney Basin – Proven Petroleum Basin with Potential Huge Gas Reserve For personal use only EP386 & RL1 Onshore Bonaparte LordHowe Lord HoweRise: Rise: Basin •4.5billion billionboe boe •4.5 EP325 •98.5%methane •98.5% methane PEP11 Offshore Sydney Basin “…sea floor spreading commenced at 65-
Slide 6: EP386 & RL/1 location and shale gas comparables
HESS: $65 M Shale Gas ConocoPhillips: $109M EP386 & RL/1 JV with Falcon For personal use only Shale Gas JV with Australia New Standard Energy Australia Beetaloo Canning Basin Basin EP325 Shale depth: 1500-3000m Sydney BG: $130M Shale Gas JV with QGC Advent Energy EP 386: 634,567 Acres = 2568 sq km R
Slide 7: EP Shale Gas Unrisked Gas In Place Estimates
For personal use only EP 386 Shale Gas Unrisked Gas In Place Estimates Lower Milligans Fm EP 386 & RL 1 Parameters Unit Low Best High Area ‐ A Acres 197,683 296,525 345,946 Pay Thickness ‐h Ft 1310 1640 1968 Net to Gross Ratio ‐ r Dec. fraction 0.6 0.6 0.6 Effective Matrix Porosity ‐ Φm Dec. fractio
Slide 8: Prospects in Advent Portfolio
Prospects in Advent Portfolio For personal use only Advent Gross Prospective Recoverable Gas Resources Gross Prospective Recoverable Condensate Probablility Block Asset interest Bcfg Resources MMbo of Success Swansons Swansons % P90 P50 P10 P90 P50 P10 Mean Mean PEP 11 Fish 85% 28.6 2,131.2 35,491.8
Slide 9: EP and RL/1: Location – Bonaparte Basin
EP 386 and RL/1 : Location – Bonaparte Basin For personal use only Located on the southern, onshore part of the Bonaparte Basin: EP 386 covers 2568km2 in Western Australia. Source: Cadman, S.J. and Temple, P.R., 2004. Bonaparte Basin, NT, WA, AC & JPDA, Australian Petroleum Accumulations Report 5, 2
Slide 10: Onshore Bonaparte Basin Conventional Reservoir Discoveries & Prospects/Leads
Onshore Bonaparte Basin Conventional Reservoir Discoveries & Prospects/Leads For personal use only
Slide 11: Bonaparte Basin Exploration Permits Subject to Farmin Agreement
For personal use only Bonaparte Basin Exploration Permits Subject to Beach Energy’s Farmin Agreement with Territory Oil and Gas.
Slide 12: Vienta-1 workover and production test
For personal use only Vienta-1 workover and production test gas flow October 2011. Initial flow 1.97 MMscf/d, reducing to 0.53 MMscf/d within 1 hr, 18/64th” choke Shut in and extended build-up pressure monitoring returned strong pressure recovery
Slide 13: Waggon Creek-1 workover and production test
For personal use only Waggon Creek-1 workover and production test gas flow November 2011. Stabilised flow of 1.07 MMscf/d through 32/64th” choke Pressure monitoring demonstrated slowly increasing pressure at the end of the flow test
Slide 14: Bonaparte Basin, Australia
Bonaparte Basin, Australia For personal use only Wide distribution of oil and gas shows and tests throughout basin Advent Energy has 100% of EP 386 & RL 1 including gas discovery wells Vienta-1, Waggon Creek-1, Bonaparte-2, Garimala-1 & Weaber Field This is an active hydrocarbon system Source from G
Slide 15: Bonaparte Basin Petroleum System
Bonaparte Basin Petroleum System For personal use only From: Kennard et al, 2002, Subsidence and thermal history modelling: New insights into hydrocarbon expulsion from multiple petroleum systems in the Petrel Sub-basin, Bonaparte Basin.
Slide 16: Bonaparte Basin Petroleum System
Bonaparte Basin Petroleum System For personal use only From: Barrett, Hinde and Kennard, 2004, Undiscovered resource assessment methodologies and application to the Bonaparte Basin.
Slide 17: Vienta Gas Field – Abuts Stage Two Ord
Vienta Gas Field – Abuts Stage Two Ord Advent Energy For personal use only Onshore Gas field – Advent Energy Onshore Gas – RL1 EP386 Waggon Creek Gas Field (Cased & Suspended as future producer) Advent Energy Onshore Gas – EP386 Vienta Gas Field (Cased & Suspended as future producer) Planned future
Slide 18: Petroleum System and Nearby Cross-Section
EP 386 & RL/1: Petroleum System and Nearby Cross-Section For personal use only Source Rock: Milligans Formation--Thick marine shale dominated sequence with TOC 1.82%. Source Quality: Oil and gas prone.The terrestrial nature (Type III) predisposes gas production Maturity: Peak generation and expulsio
Slide 19: Vienta-1 and Weaber-4: Elevated Gas Shows
Vienta-1: Elevated Gas Shows over mid-Upper Weaber-4: Elevated Gas Shows over & Lower Milligans Section Lower Milligans Section For personal use only Elevated Gas Shows Over Shaly Elevated Gas Shows Over Shaly & Section of approximately 350 m Silty Section of approximately 850 m
Slide 20: Ningbing-2 and Pincombe-1: Elevated Gas Shows
Ningbing-2: Elevated Gas Shows over Pincome-1: Elevated Gas Shows over Lower Milligans-Langfield Section Lower Milligans-Langfield Section For personal use only Elevated Gas Shows Over Shaly Elevated Gas Shows Over Shale/Siltstone Section of approximately 300m Section of approximately 650m
Slide 21: Waggon Creek-1A: Elevated Gas Shows
Waggon Creek-1A: Elevated Gas Shows over Lower Milligans Section For personal use only Elevated Gas Shows Over Shaly & Silty Section of approximately 400 m
Slide 22: Lower Milligans: Shale Gas Potential Area
Lower Milligans : Shale Gas Potential Area For personal use only Ca Bonaparte- 1 rlto nS Bonaparte- 2 he lf Ningbing- 1 Garimala- 1 Skull- e lf Sh 1 ge Waggon Creek- 1A Weaber- 1 a n rtR Bu EP386 Pincombe -1 RL1 Well with Geochemical Data Bottom Milligans area: >650ms and 1,645km2 Northern Western A
Slide 23: Milligans Shale/Shaly Siltstone Geochemistry
Milligans Shale/Shaly Siltstone Geochemistry Well Milligans (m) Thicknes Depth (m) TOC % Ro% (Cutting TOC % (Core Ro% (Core For personal use only s (Cutting Samples) Samples) Samples) (m) Samples) Bonaparte 1 Medium grey 1448m From 496 to 0.18‐1.33/0.76 0.44‐0.94/0.67 shale/siltstone 2280m (70‐100%)
Slide 24: Bottom Milligans depth and area
For personal use only Bottom Milligans is: >1500m Depth Area=875km2 Reference: Opportunities for Shale Gas Production in Western Australia by Bill Tinapple, Executive Director, Petroleum Division, Department of Mines and Pe Conference of Shale Gas World Australia 2011 in Adelaide
Slide 25: Analogy of EP Shale Gas Potential and Maryborough Basin
Analogy of EP 386 Shale Gas Potential and Maryborough Basin Basic Data Basin/Gross Area Maryborough Basin Onshore Bonaparte Basin‐ For personal use only (4.290mi2) EP386 (991mi2) Shale Formation Goodwood/Cherwell Milligans Shale /siltstone Mudstone Geologic Age Cretaceous Carboniferous Physical Exte
Slide 26: Bonaparte Basin Stratigraphic Column & Petroleum Occurrence
Bonaparte Basin Stratigraphic Column & Petroleum Occurrence For personal use only • Up to 18km of Sedimentary and Volcanic Rocks from Cambrian to Cainozoic in Bonaparte Basin • Over 5,000 m of Sedimentary section in Onshore Bonaparte Basin • Multi Sandstone Reservoirs with Gas Flow • Early Rift Syst
Slide 27: Onshore Bonaparte Basin Milligans Formation Petroleum Plays
Onshore Bonaparte Basin Milligans Formation Petroleum Plays For personal use only Milligans Formation – Main Tight Gas & Shale Gas Plays: • Key source rocks • Over 500m marine shale/mudstone • TOC up to 2.2% • Gas-Prone • Mature for Oil and Gas • Elevated gas shows while drilling through the shaly a
Slide 28: Garimala-1 Tight Gas Sands in Cockatoo Group
Garimala-1 Tight Gas Sands in Cockatoo Group For personal use only DST#2 over interval 2385- 2405m flowed gas to surface initially at rate of 21,240 m3/d (0.75 mmscfd) decreased to 13,310 m3/d (0.47 mmscfd) during 2 hr flow period Reference: GARIMALA NO.1 Well Completion Report Prepared by O.W.Nugen
Slide 29: Ningbing-2: Tight Gas Sands in Upper Milligans Fm
Ningbing-2: Tight Gas Sands in Upper Milligans Fm For personal use only Gas Peaks Over Tight Sands DST#5 over interval 410- 412m flowed gas to surface at rate too small too measure Reference: Ningbing NO.2 Well Completion Report Prepared Shane Hibbird for AMITY OIL NL. Technical Report No. AYO 29
Slide 30: Garimala-1 Tight Gas Sands in Cockatoo Group
Garimala-1 Tight Gas Sands in Cockatoo Group For personal use only DST#2 over interval 2385- 2405m flowed gas to surface initially at rate of 21,240 m3/d (0.75 mmscfd) decreased to 13,310 m3/d (0.47 mmscfd) during 2 hr flow period Reference: GARIMALA NO.1 Well Completion Report Prepared by O.W.Nugen
Slide 31: Waggon Creek-1A: Tight Gas Sands in Burt Range Fm
Waggon Creek-1A : Tight Gas Sands in Burt Range Fm For personal use only Gas Peaks Over Tight Sands DST#1 over interval 960.75-1095m flowed gas to surface at rate too small too measure Reference: Western Australia Oil & Gas Review—November 1996
Slide 32: EP Shale Gas & Tight Gas Potential Conclusions
EP 386 Shale Gas & Tight Gas Potential Conclusions Multiple petroleum targets are present in EP 386 & RL1 area: For personal use only Proven conventional gas charged sandstone reservoirs in nearshore marine area of the Milligans Formation; Unconventional gas-condensate shale play in the shallo
Slide 33: Australia's LNG Potential
For personal use only Australia’s LNG Potential LNG Market Forecasts Pacific Basin Supply Forecast ` Ongoing demand for Australian LNG from Korea & Japan is likely due to heavy investment in gas-fired power generation facilities with no domestic gas sources – LNG accounted for one quarter of world g
Slide 34: Australian LNG
Australian LNG For personal use only Operator Project Size Production / Sales $Export Value Life per year (ABARE 2008 data) Woodside Pluto 4.1 Tcf 3.25‐3.75 Mtpa LNG $2.03 billion 15 years (+ 0.5 Tcf Xena) (+5 yr option) Inpex Ichthys 12.1 Tcf 8 Mtpa LNG $4.4 billion 40 years 1.6 Mtpa LPG (LNG only)
Slide 35: Company Overview
For personal use only Company Overview Background Key Asset –Offshore Sydney Basin ` Formed in 2004 as an independent E&P company Newcastle – Headquartered in Perth, WA – Portfolio of assets both onshore & offshore Australia with an estimated AUD 156m invested historically on exploration ` Cornersto
Slide 36: Drilling Rig Contracted to Drill the First Well Offshore NSW
Drilling Rig Contracted to Drill the First Well Offshore NSW For personal use only •Semi-submersible drilling rig Ocean Patriot •December 2010 spudded New Seaclem-1 •One well program completed incident free and on schedule •Revision of reprocessed seismic; updated permit recoverable resource potenti
Slide 37: Portfolio – Offshore Sydney Basin PEP11
Portfolio – Offshore Sydney Basin PEP11 •Advent has increased its interest to 85% from 25% in PEP11 (8,250 km2) following drilling first For personal use only exploration well. •No drilling had previously taken place in the offshore Sydney Basin. Since 1910, 66% of onshore petroleum exploration well
Slide 38: Permit History & Progress
For personal use only Permit History & Progress Historical Ownership of Permit Progress through involvement of Advent ` During the 1980s, Santos Ltd. shot extensive 2D seismic ` Advent farmed into a 25% interest in 2006 through over PEP11 acquisition of 2004 seismic ` At the time, the prospect was n
Slide 39: Significant Hydrocarbon Potential proven by Industry Standards
For personal use only Significant Hydrocarbon Potential proven by Industry Standards Features Observed Across Permit ` The permit’s potential is evident in the significant and complimentary hydrocarbon & migration features observed Mound ` Direct hydrocarbon indicators identified in seismic data – h
Slide 40: Offshore Sydney Basin pockmark and Ormen Lange analogy
Offshore Sydney Basin Norway: Ormen For personal use only Lange 14 Tcf Pockmark over 282,000m3 Source: European Commission Image courtesy Ron Boyd, University of Newcastle
Slide 41: Geophysical Gas Indications
Geophysical Gas Indications For personal use only TOPAS Sub bottom profiles from SS10 / 2006
Slide 42: B4-16 Preliminary Final PSTM (Zoom)
B4‐16 Preliminary Final PSTM (Zoom) For personal use only Data reprocessing from phase 2, 2009 indicates a flat spot on the time processing within structure on line B4-16 which may warrant further investigation. Area of interest is cmp 900 to 1060 (2 km) at a time of 1500ms and 1700ms. Note polarity
Slide 43: Board
For personal use only Board Board Members Mr. Goh Hock: Chairman ` Previous President of Schlumberger Asia. Managed all Asian operations including oil field services & outsourcing ` 25 years with Schlumberger, held several field & management positions in the oil & gas industry across ten countries i
Slide 44: Key Personnel: Consultants & Advisors
For personal use only Key Personnel Consultants & Advisors Mr. Ding Gui Ming: Advisory Panel Chairman ` Formerly China National Petroleum Company (CNPC) Head of Exploration ` Directed exploration activities for over 20 oilfields across China ` Supervised reform of BaoSteel, Wuhan Steel & ChangJiaiig
Slide 45: Industry Leading Geological Expertise
For personal use only Industry Leading Geological Expertise Mr Timothy Berge Mr. Lan Nguyen BSc (University of Wisconsin, Madison) BSc (Baku, Azerbaijan) MA - Geology (University of Texas at Austin) MSc - Geology (New England University, Aus.) ` 25 Years Corporate experience, an Industry expert in A
Slide 46: Contributions Gratefully Acknowledged and References
Contributions Gratefully Acknowledged and References Data, advice, review and technical contributions gratefully Publications For personal use only acknowledged •Jim Dirstein - -Total Depth - Principal Geophysical Consultant PTEM •AAPG Memoirs ”Hydrocarbon migration and its Near surface Migration” s
Slide 47: Contact and Disclaimer
For personal use only David Breeze MEC Resources Ltd Ph +61 8 9328 8477 david@mecresources.com.au Executive 14 View Street Fax +61 8 9328 8733 www.mecresources.com.au Director North Perth WA 6006 Australia DISCLAIMER MEC Resources Ltd (MEC) has prepared this Company Introduction Presentation. Whilst
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