Onshore US Oil & Gas · 2020. 7. 17. · Onshore US Oil & Gas UK Investor Show 2019 2 The...
Transcript of Onshore US Oil & Gas · 2020. 7. 17. · Onshore US Oil & Gas UK Investor Show 2019 2 The...
1www.rosepetroleum.com
March2019
OnshoreUSOil&Gas
UKInvestorShow2019
2www.rosepetroleum.com
Theinformationcontainedinthispresentation(the"Presentation")hasbeenpreparedbyandisthesoleresponsibilityofthedirectorsofRosePetroleumPLC(the"Company").ThisPresentationisnotintendedtobe,andshouldnotbeconstruedas,anyadviceonthemeritsof,oranyrecommendationtoanyrecipientorreaderofthisdocumentinrelationto,thepurchaseofsecuritiesintheCompany,orafinancialinterestintheprojectofthecompany,Recipientsandreadersofthisdocumentshouldseektheirownindependentlegal,investmentandtaxadviceastheyseefit.
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Disclaimer
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Gunnison Valley Unit, Paradox Basin, Utah
• SignificantAcreageposition
• Provenoilfill:Ubiquitousmoveable,oilfilledreservoirsacrosstheacreageinprimarytargetreservoir“Clastic21”
• Overpressured:Drivesinitialproductionratesupto1,600boepd
• Stackedpayopportunity:6potentialreservoirs
• Provenproduction:Verticalwell28-11provesproductivefracturesinprimarytarget,Clastic21,withinthe3Darea
• Provencommercialanalogue:CaneCreekField(c.12milessouth)successfullydevelopedinthenaturallyfracturedClastic21andClastic19
• Keyde-riskingcomplete:Highquality3DseismicallowsRosetolocatetargetlocations-GaffneyCline&Assoc.CPR&Schlumbergerfracturecharacteristicsstudy
• Drill-readytoprovecommercialityandbegindevelopment–localinfrastructureavailable
Oil
GrandCounty
28-11Provenproduction
Oil
3DArea GVUboundary
GVU22-1
AdditionalacreagetobeincludedinUnit
KeyHighlights
AcreageacquiredinDec2018
Oil
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Gunnison Valley Project Summary
• Earning75%workinginterest(“WI”)withinc.80,000acresinParadoxBasin,Utah• Earn-inincludesonewellwith25%carry• Highfold/wideazimuth3Dseismicacquiredoverc.17,250acres• Circa50,000acresheldwithinGunnisonValleyUnit(GVU)
• ExperiencedOperationsteaminplace• ProvenexperienceinnearbyCaneCreekField(CCF)analogue• Teamdesigned9-wellprogrammeforFidelityExploration&Production• Grewproductionfrom100to3,500bopdin18monthsatCCF• IPratesupto1,600boepd
• GaffneyCline(GCA)CPRestimates2CContingentResourcesnettoRosewithin3Dseismicarea(17,250acresonly;c.22%oftotalacreage):• Resources: 12.33mmboe(75%oil&25%gas)• Valuation: US$86.9mNPV10(Post-FederalIncomeTax)
• CostofGV22-1estimatedasUS$6.5m(dryhole)withafurtherUS$1.2mtobringthewellintoproductiononasuccesscase• TargetingEURofc.0.85mmboe• Onsuccess,Roseplanstorecyclecashflowtodrilltheidentifiedfollow-on
locations• RosehasprogressedLandandOperationsprogramme
• Unitre-shapeagreedwithUtahregulator,BureauofLandManagement• DrillingPermitgrantedforfirstwellwithinGVU(GVU22-1)• ThreefurtherAPDsinprocess(GVU29-1,State16-2L,GVU11-1)
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Proven production analogue
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• TheGVUlies12milesnorthoftheproductiveCaneCreekField• Similardepth,structuraltrendandreservoir
• Targetreservoirclastic21hasprovenproductionwithinarea• 8mmboeproducedtodatefromCaneCreekField• 90dayIPratesupto1,600boepd
• GVU3Dareaalsobenefitsfromseismictowelltiese.g.tothenearby
verticalproductionwell28-11
• Clastic21productionfromthevertical28-11welltotalsc.140,000boesince2008.• Midcaseproductivitywhencomparedtotherangeofproductive
verticalwellsattheCaneCreekField
28-11
GVU
CaneCreekField
(ModifiedfromMorgan&Stimpson2018)
• RosewellGVU22-1firstinapilotprogrammetoprove:• TheviabilityoftheClastic21reservoirwithintheGVU• Thepredictivemodel(wellsuccessrate)• Predictivemodelapplicationtoshallowerzones• Potentialtoprove3-5mmboenetreserves
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Cane Creek Field Analogue, Paradox Basin
• CaneCreekFieldoilproducer:• >1mmboeproduction• 90dayIP:1,600boepd
• Analogy:Clastic21structuralcharacter• Elongate,compressionalfeatures,oftenassociatedwithminorthrustfaults
• Presenceofthe‘curvature’seismicattributealongthewelltrack
• SimilarfeaturesthroughoutGVU• Complexstructurescreatefractureporosityandpermeability–drivingwellproductivity
ElongateCompressionalfeature
ElongateCompressionalfeature
ThrusFaultThrustfault
CurvatureCurvature
PresentedwithpermissionfromWescoOperatingInc.
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Structural interpretn
• FirstclearimageofParadoxformationinternalstructure
• ImprovedimagevsCaneCreekFieldseismicdata
• Severalfoldgeometrytypes
• Multipletargetlevels
• Foldedstructureshostfractureswhichdriveproductivity
W E
GVU Unique Seismic Imaging – Paradox formation
Parado
xFm
3Dseismicsupportsmoreefficientwelltargetingofdrillingwithhigherlikelyproductivity
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Cane Creek Field comparison with GVU
CaneCreekExperience Learning/advantageonGVUWellSuccessRateInitialdrillprogramhadhighsuccessrate-first7wellsweresuccessful• Desiretoproveanunconventionalplaypusheddrilling
awayfromthesuccessfulgeologicplay• Marketdrivenpushtoincreaseproductionforcedpoor
welllocationstobedrilledleadingtoover1:2success
FocusonthegeologicplayandtargetnaturalfracturesthathavedemonstrablydeliveredcommercialproductionatCaneCreek.Considernewmethodsforhydraulicfracturing:• upsidepotentialoncethegeologicplayisestablished• or,asapossiblemitigationifthegeologicplayissub
commercial.
Wellcontrol Drillingtheover-pressuredParadoxformationcausedmultiplewellcontrolincidents.Thisincreasedwellcostandwellcostuncertainty.
GVU3Dseismicdataallowsforbetterpredictionofoverpressuredzones.WhenthisiscombinedwithlessonslearnedintheuseofManagedPressureWhilstDrilling,wellcostandcostuncertaintyshouldbereduced.
PermitApprovalIndefinitedelaysinpermitting(>12months)resultedinsub-optimaltargetsbeingdrilled.Particularlywhencombinedwiththepushtoincreaseproduction.
PermittingregimechangedandBLMrequiredtoturnarounddrillingpermitswithin30daysforwellsRoseproposestodrill
RoseissetuptodeliverabetterwellsuccessrateandoperationalcontrolthanCaneCreekfield
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GVU Contingent Resources
CaneCreekTypeCurve• SuccesscasewellsatCaneCreekField• AverageEUR:550kbo+1.8BCF• Highlyproductivedueto:
• Fracturepermeability,• Extensivefractureconnectedvolume• Overpressure
• AllconditionswhichcanbeexpectedatGVU
GVUContingentResourceanalysis• GCAonlyconsidersCaneCreekprimaryreservoir(Clastic21)
withinthe3Dboundary• Substantialrangeinrecoverableresources• HCIIPandwelldensitymodelmatch• BaseCase:20.8mmboegross2Cresources• EUR0.85mmboe/well
CaneCreekDeclineAnalysis GVUdeclineanalysis
CaneCreekFieldanalogueprovidesstrongdatabasetoestimatelikelytypecurvesforGVUwells
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GVUstackedplaypotential
• TheCompanyhasidentified6potentialproductivehorizonswithintheParadoxFormation• ThrustDominated:Clastic21&C18/C19• FoldDominated:C7-C9,&C4
• Thesewereselectedbasedonthepresenceofthick,brittleclasticrocks(dolomitisedsilts/sands)interbeddedwithorganicrichshalesandconfinedtopandbottombyimpermeablesalt• TheCompanyalsohighgradedtheintervalsbasedonshowdatafromnearbyverticalwells
• TheCompanyhasalsosplittheGVUareasintotwo:• Coveredby3D• GreaterGVU-Notyetcoveredby3Dseismic
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Stacked Play Potential
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Clastic 18/19 – Clastic 21 Follow On C18/19Clastic• SimilarlithologytotheClastic21–thinnerreservoir• Similarstructuralstyleandcurvaturedistribution• Strong hydrocarbon shows in nearby vertical wells (3-4
milesNWoftheGVU3D)• 26-43D&36-11• 32-42 oil production (~1300bo) prior to casing
collapse• ProductiveattheCaneCreekField
TopC-19Map
C-19Curvature*RoseInternalestimates
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GVU Summary • Significantacreagepositionwithhighquality3Dseismicdata
• FirstwellGV22-1expectedtogeneratecashandunlockthe“code”totheBasin• Excellentquality3DseismicData–Neveravailablebefore
• OperationsTeamwithextensiveexperienceinBasin
• Highlyproductiveanaloguereservoir
• Once“factorymodel”proven,acreageprovidesRose&investorsahighqualityinventoryoftargetstoreinvestcashflow
Source:GaffneyCline&Associates
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Contact us
RosePetroleumplc
MatthewIdiens(CEO)
GregorMaxwell(HeadofOperations)
FirstFloorNewmarketHouseMarketStreetNewburyBerkshireRG145DP
UnitedKingdom
+44(0)2072254595
www.rosepetroleum.com