Caspian Energy — Investor Presentation (January 2012)
26 slides from Caspian Energy's investor presentation, January 2012
Slide 1: January 2012
TSX: CEK.TO WWW.CASPIANENERGYINC.COM January 2012
Slide 2: Cautionary Statement
Cautionary Statement The information contained in this presentation has been prepared by Caspian Energy Inc. (the “Company”) and is subject to updating, revision and amendment. While this information has been prepared in good faith, no representation or warranty, express or implied, is made as to th
Slide 3: Contents
Page Title Contents November 2011 4 Our Status in Kazakhstan 5 “The North Block” 6 Caspian’s Origin 7 Aral’s New Structure 8 APC – “ Under New Management” 9 2011-Drilling renewed in North Block 10 East Zhagabulak Field 11 ——— “——— Well #308 – Success is significant 12 ——— “——— Reason for confidence
Slide 4: Our Status in Kazakhstan
Our Status in Kazakhstan “The North block” A 25-year production contract in 2010 with Ministry Oil & Gas Over 600 km² of 3-D Seismic shot A new partner with cash strength Old Pre Caspian Basin CNPC 42,000 BoPD 3-D Seismic Not Owned by APC Zhanazhol 94,000 BoPD (CNPC) Gas 3.3 bn.m³/year 4 TSX: CEK.TO
Slide 5: The North Block
“The North Block” Government pre-salt reserves Estimate 5 TSX: CEK.TO WWW.CASPIANENERGYINC.COM
Slide 6: Caspian's Origins
an's Origins SX listing in 2004 0/50 partnership with Azden Management since 2004 ogether with Azden, CEK owns Aral Petroleum Capital, license holder for f the North Block wo producing wells drilled 5-year production contract granted AZDE CE N K 50 50 % % AP C 6 TSX: CEK.TO WWW.CASPIANENERGYIN
Slide 7: Aral's New Structure
Aral’s New Structure Aral Petroleum 100% New Structure Original Structure - Caspian 40% / Asia Caspian 50% / Azden Sixth Energy 60% Management 50% 100% of North Block - Azden sells out for us$50 mln us$20 mln upfront balonce paid when production targets are met -CEK “carried” for us$80mln. Capex - C
Slide 8: APC – Under New Management
APC – “ Under New Management” Erbolat Kulumbetov - Director – General 35 years management experience in Kazakhstan oil industry. Recently joined APC Asia-Sixth Energy - US$ 6.7 million cash invested to date - Six new wells to be drilled - operational involvement since June, mgt. team in-situ - 200 k
Slide 9: 2011 Drilling renewed in North Block
11-Drilling renewed in North Block Focus on Greater Zhagabulak EZ #301 resumes flowing at 330-350 bpd July - workover EZ #213 - now flowing 200+ bpd Spudded 15 July EZ#308 pudded 26 July SAK#316 Greater Zhagabulak East Zhagabulak Sakramabas 9 TSX: CEK.TO WWW.CASPIANENERGYINC.COM
Slide 10: East Zhagabulak Field
East Zhagabulak Field [Bashkirian@4,260m] 25 year production contract “Producers” well 213 well 301 Preparing to test well 308 Spud Jan. well 306 Approved well 315 ull Field Devl. 8 wells ross Reserves -P = 7.⁶ mmbbls 3-P + Possible = 17.⁹ Scale 1 cm = 554m 10 TSX: CEK.TO WWW.CASPIANENERGYINC.COM
Slide 11: Well #308 – Success is significant
Well #308 – Success is significant “Operational Transformation” APC y-t-d 30 Sept. (A) “if” Well #308 od BoPD 402 1,000 1,500 3-P ly 1.21 3.02 4.67 s$ ml 62.53 72.47 75.04 2-P ck/bbl us$ bl us$ 11.29 3.61 2.79 ly $80,000 $720,000 $1.239m ash Flow ₀º₀ 308 = $ 15 m F/CF East Zhagabulak Field – [Bashki
Slide 12: Reason for confidence: Location and Geology
“ Well 308” son for confidence “Location and Geolog wo producing wells are 1.1 km apart 308 to be drilled in between s pay of K-II horizon is some 420 metres Net pay in the EZ# 213 well is 33 metres Net pay in the EZ# 301 well is 65 metres 12 TSX: CEK.TO WWW.CASPIANENERGYINC.COM
Slide 13: Not a Huge Field But it Has Significant Value for Caspian
agabulak “Not a Huge Field But it Has Significant Value for Casp Net cash flow to Caspian is $408 million NET to Caspian Net Present Value of Caspian is 94¢ /share by McDaniels 13 TSX: CEK.TO WWW.CASPIANENERGYINC.COM
Slide 14: Zhagabulak - Value Sensitivity to Brent
Zhagabulak - Value Sensitivity to Brent Various Brent Scenarios After Tax (us$mln) $100 Brent Caspian’ $114 Brent Caspian’ (10% s (10% s discount) 40% discount) 40% Proved + Share Share Probable Reserves 157.7 mln 184.0 Possible Reserves 181.2 206.1 Proved + Probable + 339.0 $135.6ml 390.2mln $156.1
Slide 15: West Zhagabulak - Structure
West East Zhagabulak - Structure - Zhagabulak wice the size of ast Zhagabulak? +200m updip v’s EZ kmai drilled S1 + S3 akramabas S1 + S3 both successful 3-D seismic Re-processed/re-interpreted by KT – II2 Top 15 Scale = 1 : uniwe-beijing 100,000 TSX: CEK.TO WWW.CASPIANENERGYINC.COM
Slide 16: West Zhagabulak/Sakramabas
West Zhagabulak/ Sakramabas We spudded 316 26 July - Shared structure with AKMAI (“them”) “them” - AKMAI Sakramabas Gov’t (E) C1/C2 reserves 50mmbls - APC share = AKMAI share of structure - “Our” Wells 309 & 307 already approved - Success → at 316 move first rig to 309 (E Feb) - Success → at 316 mov
Slide 17: Greater Zhagabulak
Greater Zhagabulak “Connected or Independent Prospects?” McDaniels “sees” five prospects P-50 P-10 26.9 85.1 Total mm bls East Zhagabulak “Drilling Now” 100% APC, Capital, Risking, McDaniel Model, Opex, Price 17 Deck TSX: CEK.TO WWW.CASPIANENERGYINC.COM
Slide 18: Work Program 2012
Work Program 2012 Paperwo rk TEST TEST TEST TEST TEST TEST Paperwo Drilling Drilling Drilling Drilling rk TEST TEST TEST TEST TEST TEST Paperwo Drilling Drilling Drilling Drilling rk TEST TEST TEST 2 Rig Paperwo Drilling rk TEST TEST TEST TEST TEST TEST Paperwo Drilling Drilling Drilling Drilling rk
Slide 19: Leads Beyond Greater Zhagabulak
“Leads Beyond Greater Zhagabulak” Leads Leads 19 TSX: CEK.TO WWW.CASPIANENERGYINC.COM
Slide 20: Baktygaryn
aktygaryn Extensive channel sands Several bright spots on 3-D seismic Triassic P50 case — 44 million barrels Triassic P10 case — 129 million barrels Carboniferous P50 case — 30 million barrels Carboniferous P10 case — 100 million barrels 20 TSX: CEK.TO WWW.CASPIANENERGYINC.COM
Slide 21: Caspian Energy Inc. Net Present Value
V’s Todays m/kt price Cd$ 0.23 21 TSX: CEK.TO WWW.CASPIANENERGYINC.COM
Slide 22: Caspian Share Price History (2 yr)
aspian Share Price History (2 yr) APC - Asia Sixth Deal first announced Shares outstanding ( 30 Sept.) : 217. 25 million Recent Share Price Cad$ 0.23 cents 22 TSX: CEK.TO WWW.CASPIANENERGYINC.COM
Slide 23: Why Caspian
Why Caspian - New Management, New Direction - Caspian Carried for $80ml of capex - Established Production - Well 308, Operational Transformation “Looking Good” - “North Block” Exploration Potential - Well 316, A New Discovery?? 23 -TSX: CEK.TO Share price WWW.CASPIANENERGYINC.COM
Slide 24: Appendix – Connections to Market
onnections to Market target areas near to pipeline O access via S. Alibekmola l Quality: API 39 port Price: Brent minus us$10 per barrel Samara Russia Atyrau 24 TSX: CEK.TO WWW.CASPIANENERGYINC.COM
Slide 25: Appendix – Aral Y-T-D Daily Oil Production
Aral y-t-d Daily Oil Production BoPD 600 2011 Total 486 463.9 500 462.2 Production 404.3 (301 + 213) 375 461.5 400 - Well 301 - Production 365.8 342.7 started on June 300 237 332.8 244.6 258.8 241.5 15, 2011 - Natural flow 200 227.1 128.7 217.6 227.2 222.4 - Well 213 - 61.6 Production 100 started on
Slide 26: Appendix – Reasons for Confidence
Reasons for Confidence “The Carboniferous Trend is well known” A AA’ WEST EAST K e n k iy a k M o rtu k E a s t Z h a g a b u la A k lib e k m o la K 0 J T C 2 -3 C1 1 P2 P2 D3 P2 2 P2 D 1 -2 3 4 P1k P 1 -C3 5 C2 C1 6 D3 7 км D1 -2 L egend P r e -S a lt L im e s to n e s Note: all oil deposit areas
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