H3 Energy Limited · ASX:H3E
H3 Energy — Whitebark Energy — Gold Coast Investment Showcase June 2018
25 slides from H3 Energy's conference presentation, June 2018
Slide 1: Expanding Scale and Opportunities
Expanding Scale and Opportunities Multi-zone Horizontal Oil Drilling Opportunities Strategic Partnerships | Diversifying Revenue Gold Coast Investment Showcase June 2018
Slide 2: Disclaimer
DISCLAIMER No representation or warranty, expressed or implied, is made by Whitebark Energy Ltd that the material contained in this presentation will be achieved or prove to be correct. Except for statutory liability which cannot be excluded, Whitebark Energy, their officers, employees and advisers
Slide 3: Whitebark Energy Overview: Summary
Whitebark Energy Overview Canada - Point Loma Joint Venture Western Australia Summary 3
Slide 4: Corporate Overview
CORPORATE OVERVIEW Whitebark Energy is an emerging Australian oil & gas company with interests in production and exploration assets in Canada and Western Australia, successfully executing a strategy of growing production and providing exposure to high reward exploration. Alberta, Canada (20% JV inte
Slide 5: Macro View of the Oil and Gas World
MACRO VIEW OF THE OIL AND GAS WORLD Oil prices stabilised and rising Divergence between Canada and US gas prices Corporate activity increasing West Texas Alberta Market Price vs Intermediate Henry Hub (both USD) 90 6 80 AMP Henry Hub 70 5 60 4 50 40 3 30 2 20 10 1 0 0 2014 2015 2016 2017 2018 May Ma
Slide 6: Strategy
STRATEGY Well-defined growth strategy: Low Cost Opportunistic Reserves and • Production focus: exploit established infrastructure Purchases Production Growth through rapid production growth and short payback Good Quality Assets at historically low prices Assess drilling vs periods: acquisition cost
Slide 7: Disciplined Execution
DISCIPLINED EXECUTION Finalised three complementary production acquisitions in Q3 CY2017. Completed Gilby acquisition in March 2018. Opportunistic Purchases Further complementary production acquisition opportunities identified and under evaluation that would deliver increased production and re
Slide 8: Acquisitions Track Record
ACQUISITIONS TRACK RECORD Xanadu (Perth Basin) Paddle River Gilby $1.5m / 15% WI (Canada) (Canada) Pre-drill 160mmstb C$350k ($67k – WBE) C$1.9m ($570k – WBE) prospect Two wells, 300 boepd Increased WI – 30% Confirmed Discovery Consolidation 450 boe/d Jan 2017 May 2017 Aug 2017 Nov 2017 Mar 2018 Poi
Slide 9: Acquisitions – Disciplined Approach
ACQUISITIONS – DISCIPLINED APPROACH Acquisition Assessment Criteria Delivered Acquisitions < $20-$30,000 per flowing boe/d PLX: $23,000/boe/d, $4.20/boe for P+P Price < $4-$7/boe for Proven + Probable Reserves Gilby: $4,500/boe/d, $0.46/boe for P+P Acquisition < 3.5 – 5 x Net Operating Income PLX: ≈
Slide 10: Increasing Production & Reserves
INCREASING PRODUCTION & RESERVES* * Refer ASX Release 26 March 2018 10
Slide 11: Whitebark Energy Overview: Canada - Point Loma Joint Venture
Whitebark Energy Overview Canada - Point Loma Joint Venture Western Australia Summary 11
Slide 12: Point Loma Joint Venture – Canada
POINT LOMA JOINT VENTURE – CANADA* • Whitebark acquired a 20% direct interest in the assets of Point Loma Resources(PLX) for an investment of CAD$4.2 million in May 2017. • The acquisition included producing wells, land, property, equipment (compressors and tank farms), production facilities, pipeli
Slide 13: Gilby Acquisition – March 2018
GILBY ACQUISITION – MARCH 2018 • 450 boe/d gross for CAN$1.9m. • Adds 135 boe/d net to Whitebark for $570k. • 30% oil and NGL’s and 70% natural gas. • Approx 26,500 gross acres of land, including 1100 acres Duvernay Shale. • Dec 31 2017 1P Reserves Gross 1.5 mmboe, 2P Reserves gross 4.1 mmboe*. • Id
Slide 14: 3D Seismic Program
3D SEISMIC PROGRAM* • 3D Seismic Program completed in March 2018. • Identified over 40 million boe in place (gross): • Ostracod liquids play: 10 mmboe • Nordegg Liquids field extension: 12 mmboe in place • Banff Oil Play: 20 mmboe in place • Ostracod liquids play identified appears to be an analogue
Slide 15: Paddle River Oil Field Development
PADDLE RIVER OIL FIELD DEVELOPMENT* • Existing producing field 100% owned by JV. Paddle River Development plan • Construct central tankage, treating • Additional drilling planned for H2 CY2018. for Paddle River lower Mannville oil • Single well economics: development. • Re-route gas to deep cut faci
Slide 16: Duvernay Shale Oil Assets
DUVERNAY SHALE OIL ASSETS* Land Position on Emerging Play • WBE currently has 20 – 30% interest in approximately 19,000 acres in the West Duvernay Basin with Point Loma Resources as part of the Point Loma JV (PLJV). • Horizontal wells are currently being drilled by other operators within existing Pa
Slide 17: Whitebark Energy Overview: Western Australia
Whitebark Energy Overview Canada - Point Loma Joint Venture Western Australia Summary 17
Slide 18: Xanadu Oil Discovery
XANADU OIL DISCOVERY* • Xanadu Oil Discovery located within TP15 250km North of Perth. • Well drilled in Sept 2017 and intersected hydrocarbon bearing reservoirs. • Wireline logs confirmed reservoir quality sands over Irwin River Coal Measures with porosities between 15-16% and hydrocarbon saturatio
Slide 19: Alcoa JV – Warro Gas Prospect, Perth Basin WA
ALCOA JV - 4.4 TO 11.6* TCF GIIP PROSPECT WARRO GAS PROSPECT – PERTH BASIN WA The largest undeveloped onshore gas field in Australia • Warro is a tight gas prospect with 4.4 to 11.6* Tcf GIIP. • WBE holds a 57% working interest. • In 2008, Alcoa entered into a $100m staged farm‐in agreement. • Curre
Slide 20: Whitebark Energy Overview: Summary
Whitebark Energy Overview Canada - Point Loma Joint Venture Western Australia Summary 20
Slide 21: Whitebark – Growing Oil & Gas Producer
WHITEBARK – GROWING OIL & GAS PRODUCER Alberta, Canada • Production with material upside. • Low drilling costs, fast approvals, existing infrastructure. • No landowner commitment drilling required – similar system to Australia. • Objective to double production within 12 months. • Leveraging infrastr
Slide 22: Strategic Priorities Next 12 Months
STRATEGIC PRIORITIES NEXT 12 MONTHS Opportunistic Purchases Acquire 2 -3 more properties within WBE acquisition metrics. Low cost reserves and Drill a minimum of 3 wells with payback metrics less than 18 months. production growth Strategic Partnerships Build on existing relationships and secur
Slide 23: Performance vs Share Price = Opportunity
PERFORMANCE V SHARE PRICE = OPPORTUNITY Low risk and low capex production growth provides attractive value proposition: • Progression of production acquisition not fully recognized by the market. • PLJV now operationally cash flow positive. • Further incremental production growth is planned - acquis
Slide 24: References and Competency Statements
REFERENCES AND COMPETENCY STATEMENTS The Qualified Reserves and Resources Evaluator Statement – Whitebark Energy Limited The information in this report that relates to the oil and gas reserves was compiled by technical employees of McDaniels and Associates Ltd and Sproule Associates Ltd (Gilby), pre
Slide 25: Thank you
Thank you David Messina Managing Director E: [email protected]
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