H3 Energy Limited · ASX:H3E
H3 Energy — Transerv Energy — Investor Presentation (April 2017)
20 slides from H3 Energy's investor presentation, April 2017
Slide 1: Transerv Energy April 2017
O» TranservEnergy April 2017
Slide 2: Transerv Acquires Producing Assets in Canada
TRANSERV ACQUIRES PRODUCING ASSETS IN CANADA Transerv Energy (TSV) has signed a binding Term Sheet to invest AUD$4.9 million (CAD$5 million) for a 20% working interest in Point Loma Resources Ltd’s land, property, equipment and production facilities comprised of: • 210,000 acre portfolio (40,000+ ac
Slide 3: Transerv Returns to Canada
TRANSERV RETURNS TO CANADA • The funds will be invested to: – Unlock shut‐in and proven behind pipe reserves. – Acquire already identified additional producing properties in the vicinity of the Point Loma facilities. – Drill and develop additional proven undeveloped and probable reserves. – Improve
Slide 4: Why Canada?
WHY CANADA? • Over the last two years there has been significant stress in the sector and assets are currently attractively priced. • Operating costs are much lower than Australia . • JV partner is well known to Transerv. • Central Alberta is a prolific and well known oil and gas producing region. •
Slide 5: Point Loma Track Record
POINT LOMA TRACK RECORD • Point Loma has created a significant position on the highly prospective Western Canadian Basin which has a plethora of oil and gas productive intervals. • Since listing in July 2016 Point Loma has grown: • production from 135 boe/d to 900 boe/d. • reserves base from 0.5 MMb
Slide 6: Point Loma Existing Production
POINT LOMA EXISTING PRODUCTION • 900 boe/d equivalent comprising of: – 200 bbl/d oil, – 4m Mcf /d gas and – 30bbl/d ngl’s • $12‐14/boe Operating Costs. • Gross Margin $30‐35/boe. • 20% Acquisition circa 180 boe/d net. • Gross Margin to TSV $5,400/d, circa $2 m/annum. • Year End TSV Projection – (300
Slide 7: Point Loma Pro-Forma Reserves Pre-TSV Transaction
POINT LOMA PRO‐FORMA RESERVES(1)(2) PRE‐TSV TRANSACTION Reserve Category Light and TSV Net Heavy TSV Conventional TSV Net Natural Gas TSV Net Barrels of Oil TSV Net Medium Oil Oil Net Natural Gas Liquids Equivalent (mbbl) (mbbl) (mbbl) (mbbl) (mmcf) (mmcf) (mbbl) (mbbl) (mboe) (mboe) Proved Producin
Slide 8: Point Loma Infrastructure
POINT LOMA INFRASTRUCTURE • Gas Processing Facilities: – 60 MMcf/d gas at Judy Creek (20% utilised) – 10 MMcf/d at Leaman • 2000 bo/d oil processing facilities. • Oil and gas pipelines and gathering systems. • Tolling income currently $30,000/m. • Additional opportunities as area unlocked. • Buildin
Slide 9: Recent Expansion - 1st March 2017
RECENT EXPANSION ‐ 1ST MARCH 2017 • Judy Creek ‐ Current production of 1600 Mcf/d net. • 45% WI in 60 MMcf/d gas processing facility. • Leaman Behind pipe production of 2400 Mcf/d. • Approximately 150,000 net acres. PLX Land 1st March 2017‐ Recently Acquired PLX Land and Equipment 9
Slide 10: Unlocking Stranded Production - Leaman B Nordegg Gas and Liquids Pool
UNLOCKING STRANDED PRODUCTION ‐ LEAMAN B NORDEGG GAS AND LIQUIDS POOL • 120 boe/d connected production requiring access to egress. • Produced to date > 40 Bcf. • AER OGIP > 80 Bcf, significant remaining drainage opportunity. • Working with area operators to re‐ activate production through existing i
Slide 11: Unlocking Stranded Production - Q1 2017 Thornbury Acquisition
UNLOCKING STRANDED PRODUCTION – Q1 2017 THORNBURY ACQUISITION • Current production of 700 Mcfd net, 80% WI in gas compression facility. • Previously producing production of 1,600 Mcfd net. • Will require three small pipeline connections planned for winter 2017/18 to re‐activate additional volumes ci
Slide 12: Multiple Zone Oil and Liquids Rich Gas Fairway
MULTIPLE ZONE OIL AND LIQUIDS RICH GAS FAIRWAY Industry Significant Horizontal Opportunity Base Success Sinopec Zone Bypass drilling Follow up Surge Opportunities (1) Opportunities(1) New Star Long Run Rock Creek 3 18 Nordegg 8 58 • Over 5,500 well penetrations in the area have (1) See Forward Looki
Slide 13: Development Opportunities - West Cove Nordegg Oil Pool Discovery
DEVELOPMENT OPPORTUNITIES ‐ WEST COVE NORDEGG OIL POOL DISCOVERY NORDEGG LS NET PAY MAP Cutoff: 6% LSØ C.I. = 5m Large New Nordegg Discovery • Discovery well 5‐31 placed on stream in December 2016 • 2 (2.0 net) PUD development locations • 8 (7.6 Net) Nordegg Drilling Opportunities • Significant OOIP
Slide 14: Summary
SUMMARY • AUD$4.9 million (CAD$5 million) for a 20% working interest in Point Loma’s land, property, equipment and production facilities. • 210,000 acre portfolio (40,000+ acres net to TSV). • Existing gross production of 900 boe/d net (25% liquids) 180 boe/d net to TSV. • 70 MMcf/d in gas plant cap
Slide 15: Evaluator Statement & Disclaimer
EVALUATOR STATEMENT & DISCLAIMER The Qualified Reserves and Resources Evaluator Statement The information in this report that relates to the oil and gas reserves of Point Loma Resources Ltd was compiled by technical employees of McDaniel and Associates Ltd a leading independent Canadian Petroleum Co
Slide 16: Appendix
APPENDIX oO» TranservEnergy
Slide 17: Corporate Summary
CORPORATE SUMMARY Capital Structure Directors & Management Existing ordinary shares 835m Charles Morgan – Non‐Executive Chairman Implied Market Cap at 1.1c (undiluted) $9.2m David Messina – Managing Director Current Cash & Liquid Assets $9.8m Stephen Keenihan – Technical Director Kevin Hart – Compan
Slide 18: Management
MANAGEMENT • David Messina – Managing Director, has over 20 years multi‐sector experience in the Energy, Oil & Gas and Agricultural industries, holding senior positions in executive management, strategic and business development. Most recently he was the Managing Director of London based Hutton Ener
Slide 19: TSV Canadian History
TSV CANADIAN HISTORY • Transerv first invested in Canada in 2009. • Forays into various plays – Rockcreek, Duvernay, Mannville in Alberta; Carnaby producing assets and Montney in British Columbia. • Bought and sold lands for a profit but drop in oil price stymied that growth route. • Only retained M
Slide 20: Point Loma Capital Structure
POINT LOMA CAPITAL STRUCTURE TSXV – PLX 2017 Current production (1) 900 boe/d Share Price (Mar 1‐31, 2017) $0.51 Oil/Gas weighting 30%/70% Basic Shares Outstanding 31,953,325 Fully Diluted Shares Outstanding 34,388,325 Insider Ownership (Basic / Fully Diluted) 25% / 28% Management Ownership (Basic /