Good Oil Presentation - ASX · 01/01/2014 01/02/2014 01/03/2014 01/04/2014 01/05/2014 01/06/2014...

19
Dear Shareholders, Please find attached a copy of a presentation that will be delivered by Carnarvon Petroleum’s Chief Operating Officer, Mr Philip Huizenga, at the “RIU Good Oil Conference” in Fremantle on the 9 th of September. Mr Huizenga will review Carnarvon’s three major assets, namely the Phoenix project in the Offshore Canning Basin, the Cerebrus project in the Carnarvon basin, both offshore Western Australia, and the Wichian Buri project in the Phetchabun basin onshore Thailand. The recovery of oil from the Phoenix South-1 well has changed the view of the prospectivity of the offshore Canning Basin. At the conclusion of the Phoenix-1 and 2 drilling campaigns some 30 years previously, the area was thought to contain “stranded gas” and “tight rocks”. However the oil discovery at Phoenix South-1, where the oil and reservoir quality point to a commercial discovery, has changed the assessment of the area from “tight gas” to “potentially productive oil”. While further work is still required to determine resource size, the joint venture is encouraged by the work to date to move the oil prospect Roc-1 from contingent to firm. Significant other leads and prospects also exist in the acreage. Further south in the Carnarvon basin, the Company has a 100% equity position in the Cerberus blocks. The area of the Cerberus blocks is large at around 3,200 km², and lightly explored like Phoenix with only around a dozen or so wells in the blocks. Modern 3D data already exists over the majority of the blocks. A number of leads and prospects have already been identified, and three prospects in three different play types have been high graded as being drill ready. Multiple development options exist due to the shallow water depth, shallow target depth, proximity to shore and proximity to existing oil and gas production infrastructure. Carnarvon will be looking for partners to help unlock the potential of the Cerberus blocks. Having only recently acquired these blocks with minimal permit commitments, there is long permit life remaining for exploration. In Thailand Carnarvon has 20% equity interest in around 1,000 km2 of exploration, appraisal and production acreage. The acreage lies onshore around 250km north of Bangkok and is developed with fit for purpose low cost facilities. With reservoirs between 500 and 1,000m below ground, drilling costs are nominally around $1.5 million each, and post drilling development is around $200,000 for each well brought into production. The oil is trucked to refineries in Bangkok. Of the around 1,000 km² of acreage, approximately a third is covered by 3D seismic data and only some 100 km² has been developed and lies within production licenses, incorporating 29.5 million barrels of gross proved and probable reserves as reported in the reserves update announcement on 31 March 2014 Development drilling in Thailand in 2014 has been successful, with recent wells based on updated technical work increasing the gross field production to around 4,000 bopd. Good Oil Presentation 9 September 2014

Transcript of Good Oil Presentation - ASX · 01/01/2014 01/02/2014 01/03/2014 01/04/2014 01/05/2014 01/06/2014...

Page 1: Good Oil Presentation - ASX · 01/01/2014 01/02/2014 01/03/2014 01/04/2014 01/05/2014 01/06/2014 01/07/2014 01/08/2014 Oil ... partners, employees, agents and advisors disclaim any

Dear Shareholders, Please find attached a copy of a presentation that will be delivered by Carnarvon Petroleum’s Chief Operating Officer, Mr Philip Huizenga, at the “RIU Good Oil Conference” in Fremantle on the 9th of September. Mr Huizenga will review Carnarvon’s three major assets, namely the Phoenix project in the Offshore Canning Basin, the Cerebrus project in the Carnarvon basin, both offshore Western Australia, and the Wichian Buri project in the Phetchabun basin onshore Thailand. The recovery of oil from the Phoenix South-1 well has changed the view of the prospectivity of the offshore Canning Basin. At the conclusion of the Phoenix-1 and 2 drilling campaigns some 30 years previously, the area was thought to contain “stranded gas” and “tight rocks”. However the oil discovery at Phoenix South-1, where the oil and reservoir quality point to a commercial discovery, has changed the assessment of the area from “tight gas” to “potentially productive oil”. While further work is still required to determine resource size, the joint venture is encouraged by the work to date to move the oil prospect Roc-1 from contingent to firm. Significant other leads and prospects also exist in the acreage. Further south in the Carnarvon basin, the Company has a 100% equity position in the Cerberus blocks. The area of the Cerberus blocks is large at around 3,200 km², and lightly explored like Phoenix with only around a dozen or so wells in the blocks. Modern 3D data already exists over the majority of the blocks. A number of leads and prospects have already been identified, and three prospects in three different play types have been high graded as being drill ready. Multiple development options exist due to the shallow water depth, shallow target depth, proximity to shore and proximity to existing oil and gas production infrastructure. Carnarvon will be looking for partners to help unlock the potential of the Cerberus blocks. Having only recently acquired these blocks with minimal permit commitments, there is long permit life remaining for exploration. In Thailand Carnarvon has 20% equity interest in around 1,000 km2 of exploration, appraisal and production acreage. The acreage lies onshore around 250km north of Bangkok and is developed with fit for purpose low cost facilities. With reservoirs between 500 and 1,000m below ground, drilling costs are nominally around $1.5 million each, and post drilling development is around $200,000 for each well brought into production. The oil is trucked to refineries in Bangkok. Of the around 1,000 km² of acreage, approximately a third is covered by 3D seismic data and only some 100 km² has been developed and lies within production licenses, incorporating 29.5 million barrels of gross proved and probable reserves as reported in the reserves update announcement on 31 March 2014 Development drilling in Thailand in 2014 has been successful, with recent wells based on updated technical work increasing the gross field production to around 4,000 bopd.

Good Oil Presentation

9 September 2014

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For all enquiries please contact:

Shareholder Enquiries Media Enquires Mr Thomson Naude Mr Tony Dawe Company Secretary Professional Public Relations Phone: (08) 9321 2665 (08) 9388 0944 / 0405 989 743 Email: [email protected] [email protected]

Yours faithfully

Adrian Cook Managing Director Carnarvon Petroleum This news release contains forward-looking information. Forward-looking information is generally identifiable by the terminology used, such as "expect", "believe", "estimate", "should", "anticipate" and "potential" or other similar wording. Forward-looking information in this news release includes, but is not limited to, references to: well drilling programs and drilling plans, estimates of reserves and potentially recoverable resources, and information on future production and project start-ups. By their very nature, the forward-looking statements contained in this news release require Carnarvon and its management to make assumptions that may not materialize or that may not be accurate. The forward-looking information contained in this news release is subject to known and unknown risks and uncertainties and other factors, which could cause actual results, expectations, achievements or performance to differ materially, including without limitation: imprecision of reserve estimates and estimates of recoverable quantities of oil, changes in project schedules, operating and reservoir performance, the effects of weather and climate change, the results of exploration and development drilling and related activities, demand for oil and gas, commercial negotiations, other technical and economic factors or revisions and other factors, many of which are beyond the control of Carnarvon. Although Carnarvon believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statements will prove to be correct.

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ASX: CVN

Good Oil Presentation

September 2014

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Major Oil Discovery

Phoenix South-1 Well

Offshore Canning Basin,

Western Australia

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Regional Wells – Prior to Phoenix South-1 oil discovery

Phoenix 3D

Zeester 3D

Keraudren-1; 1973, tr. fluor.;

Lw Keraudren off structure

Minilya-1; 1974, dry;

Jurassic, no closure

La Grange-1; 1983, tr. fluor. at JO;

Mid Tr., charge limited by faults Bedout-1; 1971, dry; JO no structure;

Up Tr. charge limited by faults

Phoenix-1; 1980, gas

discovery, Lw Keraudren

Phoenix-2; 1982, gas shows,

Lw Keraudren, off crest

Poissonier-1; 1974, oil shows (GOI);

Triassic, no closure Bruce-1; 1979, good shows, possible

low sat. pay, transition zone?

Mid Triassic

Darwin-1; 1995, Jurassic

Palaeo Oil Column (GOI)

North Turtle-1; 1982, dry;

Jurassic

no structure, TR not reached

Jurassic Test

Triassic Test

Nebo-1; 1993, Oil discovery -

Calypso; Jurassic

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Phoenix South -1 Oil Discovery

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Multi-field Potential in New Oil Province

WA 435P

WA 438P

WA 436P

WA 437P

Bandy

1 2 3 4 5

Minilya

Deep

Bottler

Bewdy

Roc

P2

Zeester 3D Outline

Phoenix 3D Outline

Phoenix South 1

Phoenix

South-1 oil

discovery

P2

Phoenix 1 -

possible oil

Roc-1 drilling

likely 2015

WA 437P

Bottler

Bewd

WA

Prospects

within 3D

Prospects

outside 3D

yProspects

within 3D

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Proposed Roc 1 well

(2015)

10 kilometers

Bewdy

Prospect

Bottler

Prospect

Bandy Lead

Emerging New Oil Province

A B

1

2 3 4 5

Minilya

Deep

Bottler

Bewdy

Roc

P2

Oil Window

Phoenix 1 discovery

(1980)

Keraudren 1 (1974) :

quality reservoir

not in closure

Phoenix South 1 oil discovery

(2014)

Oil

source

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Cerberus: The Next Wave

Carnarvon Basin,

Western Australia

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Carnarvon's footprint in the

North West Shelf

Phoenix (WA-435, WA-436,

WA-437 & WA-438)

Cerberus (EP-490, EP-491 &

TP/27)

FrogTech 2014

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Cerberus located in Carnarvon Basin

Existing oil fields or discoveries

Wandoo field

Stag field Harriet fields

Existing gas fields or discoveries

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Carnarvon already advanced in

interpretation

Mungaroo

Kennedy

Locker

Basement

Locker Oil

filled Fluid

Inclusions

Locker Source:

High TOC, High

S2, Sapropelic

Layer

1000

m

3000

m

4000

m

Submarine

Canyon

with

Locker

turbidites

1

m

KennedyKennedyKennedyKennedy

1000

m

1

KennedyKennedy

2000

m

Lyons Gp Kennedy

Source:

High TOC,

High S2,

Basement

Carboniferous?

Carboniferous

Kybra 1 Candace 1 Arabella 1 16km 40km

Athol K

Top Oil

Window

Base Oil

Window

Submarine

Canyon with

Locker

turbidites

Belfon Westy Honeybadger

m

A A’

Carboniferou

s

Top Kennedy

oil filled Fluid

Inclusions

KennedyKennedyKennedy

Arabella 1

Candace 1

Kybra 1

Top Base Triassic TWT

A

A’

Monodon Survey courtesy Downunder Geophysics

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Production from Onshore Assets

Phetchabun Basin,

Central Thailand

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Oil production Phetchabun

Basin

L33/43

L44/43

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Continuous exploration and

development

Central oil

kitchen

Extent of

discovered oil

3D in planning for

2015

Future Seismic

Future Seismic

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2014 Production

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

01/01/2014 01/02/2014 01/03/2014 01/04/2014 01/05/2014 01/06/2014 01/07/2014 01/08/2014

Oil

Pro

du

ctio

n (

bb

l/d

ay

)

Date

Oil Production

Well choked back to enhance well longevity

Well choked back to enhance well longevity

Well choked back to enhance well longevity

Carnarvon equity net 20%

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Carnarvon Petroleum

Australia, Thailand

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1. Includes an undiscounted receivable of up to US$32m converted to AUD at A$0.90/US$.

1

1

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Disclaimer

The information in this document, that relates to oil exploration results and reserves, is based on information compiled by the Company’s Chief Operating Officer, Mr Philip Huizenga, who is a full-time employee of

the Company. Mr Huizenga consents to the inclusion of the reserves and resource statements in the form and context in which they appear.

This presentation contains forward looking statements which involve subjective judgment and analysis and are subject to significant uncertainties, risks and contingencies including those risk factors associated with

the oil and gas industry, many of which are outside the control of and may be unknown to Carnarvon Petroleum Limited.

No representation, warranty or assurance, express or implied, is given or made in relation to any forward looking statement. In particular no representation, warranty or assumption, express or implied, is given in

relation to any underlying assumption or that any forward looking statement will be achieved. Actual and future events may vary materially from the forward looking statements and the assumptions on which the

forward looking statements were based.

Given these uncertainties, readers are cautioned not to place undue reliance on such forward looking statements, and should rely on their own independent enquiries, investigations and advice regarding information

contained in this presentation. Any reliance by a reader on the information contained in this presentation is wholly at the readers own risk.

Carnarvon and its related bodies corporate and affiliates and their respective directors, partners, employees, agents and advisors disclaim any liability for any direct, indirect or consequential loss or damages

suffered by a person or persons as a result of relying on any statement in, or omission from, this presentation.

Subject to any continuing obligations under applicable law or any relevant listing rules of the ASX, Carnarvon disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking

statements in this presentation to reflect any change in expectations in relation to any forward looking statements or any such change in events, conditions or circumstances on which any such statements were

based.

Nothing contained in this document constitutes investment, legal, tax or other advice. This document, and the information contained within it, does not take into account the investment objectives, financial situation or

particular needs of any recipient. Before making an investment decision, you should consider seeking independent professional advice before seeking to take any action based on the information contained in this

document.

This presentation has been prepared by Carnarvon. No party other than Carnarvon has authorised or caused the issue of this document, or takes responsibility for, or makes any statements, representations or

undertakings in this presentation.