Synergia Energy Ltd · LSE:SYN
Synergia Energy — Oilex — Investor Presentation (April 2012)
37 slides from Synergia Energy's investor presentation, April 2012
Slide 1: Investor Presentation April 2012
Investor Presentation April 2012
Slide 2: Disclaimer
Disclaimer The presentation in this projected form and as verbally presented (Presentation) is provided on the basis that none of the Company nor its respective officers, shareholders, related bodies corporate, partners, affiliates, employees, representatives and advisers make any representation or
Slide 3: Table of Contents
Table of Contents 1. Executive Summary 2. Cambay Project 3. Other Projects 4. Management and Directors Appendix Economy and Industry Overview
Slide 4: Executive Summary
Executive Summary
Slide 5: Executive Summary
Executive Summary Independent international consultant, Netherland Sewell and Associates Inc. (“NSAI”) has assessed substantial in-place Substantial and unrisked hydrocarbon volumes in the 45% owned Cambay Production Sharing Contract. (“PSC”) Resource Unrisked Contingent Resources in shallow zones o
Slide 6: Executive Summary
Executive Summary Business Description Share Price Performance Oilex Ltd (“Oilex” or the “Company”) engages in acquisition, A$ Vol (M) exploration, appraisal, development and production of oil and gas. 0.6 50 The company is listed on both AIM and ASX. 0.5 40 Oilex’s flagship project is the Cambay Ti
Slide 7: Cambay Project
Cambay Project
Slide 8: NSAI's Assessment of Recoverable Hydrocarbons
Cambay Project NSAI’s Assessment of Recoverable Hydrocarbons Unrisked Contingent Resources (Net OEX) 1C 2C 3C Natural Gas (BCF) 80 222 482 Oil (MMbbls) 14 37 80 Unrisked Prospective Resources (Net OEX) Low Best High Natural Gas (BCF) 116 420 1,634 Oil (MMbbls) 16 63 248 • Estimates prepared by NSAI
Slide 9: NSAI's Assessment of Hydrocarbons In-Place
Cambay Project NSAI’s Assessment of Hydrocarbons In-Place Discovered In-Place Volume Estimate Low Best High Zone Oil MMbbl Gas BCF Oil MMbbl Gas BCF Oil MMbbl Gas BCF X 309 311 667 654 1,170 1,110 Y 522 360 965 660 1,718 1,186 Total – Gross 831 672 1,633 1,314 2,887 2,296 Total – Net to Oilex 374 30
Slide 10: Project History and Location
Cambay Project Project History Project Location 1957 • Field discovered by ONGC • 50 BCF produced from Oligocene shallow 1957-92 reservoirs • 63 wells drilled (36 into deeper Eocene) 1994 • PSC awarded to Niko and GSPC • Oilex farms in (45%, Operator) 2005-06 • 3D seismic acquired over contract area
Slide 11: Well Tests
Cambay Project Well Tests Cambay-11 Cambay Contract Area of ~40,000 Cambay-63 Y – flowed trace oil and gas Y – produced little oil acres has an extensive data base Cambay-05 X – 0.20 MMscfgd + 157 bcpd Cambay-20 Y – 4.1 MMscfgd + 170 bcpd Y – 3.8 MMscfgd + 125 bcpd Cambay-19z Cambay-73 16 vertical w
Slide 12: Stratigraphic Subdivision
Cambay Project Cambay Stratigraphic Subdivision C-20 5.20 km C-40 Arbitrary 3D seismic line Cambay-20 to Cambay-40 Depth m msl Top X Contingent Top Y Resources Top Z NSAI 180-200 Top 180–200 Top 200–300 NSAI 200-300 Prospective Resources ~3,200m Top 300 – 400 NSAI 300-400 Base 300-400 9
Slide 13: Log Interpretation
Cambay Project Log Interpretation NuTech Large number of well Payzones penetrations – X zone – 41 wells – Y zone – 39 wells X Zone Pay is – Deeper Zones – up not interpreted by to 29 wells ?? X Zone conventional Log responses indicative analysis of productive tight reservoirs (high porosity, Y Zone
Slide 14: Eocene - North American Comparison
Cambay Project Cambay Eocene - North American Comparison Cambay Basin / Block Barnett Fayetteville Eagle Ford Haynesville Marcellus Woodford Antrim New Albany X + Y Zones* Estimated Basin 5,000 9,000 12,000 4,000 9,000 95,000 11,000 12,000 43,500 Area, sq miles Depth, ft 6, 500-8,500 1,000-7,000 9,5
Slide 15: 76H Well – Transfer of Technology
Cambay Project Cambay 76H Well – Transfer of Technology Cambay 76H Well – Successfully drilled with 610 meters horizontal section – First well of its kind in India – SBM, LWD, rotary steerable system employed Large scale multi-stage fracture stimulation through sliding sleeve completion. Surface mic
Slide 16: 76H Well – Appraisal Operations
Cambay Project Cambay 76H Well – Appraisal Operations First Indian medium-long reach horizontal well designed for tight oil and gas Flaring gas from Drilled and completed horizontal well successfully Cambay-76H during well control All 8 fracture stimulation stages successfully executed operations Mi
Slide 17: Forward Evaluation Work Program
Cambay Project Forward Evaluation Work Program D Location Cambay 76H Well • Vertical Pilot + Horizontal – Production test • Core and log data to correlate C76H production test • Optimised well + completion design – Early production system • Book X + Y zone reserves + early production potential – Upd
Slide 18: Indicative Work Program – Modular Early Production System
Cambay Project Indicative Work Program – Modular Early Production System Modular system application for ramp up production. Indicative EPS production rate up to 20 MMscf/d. $millions / mmscfd Produce Cambay 76H and future delineation wells on success through EPS. Unit of capacity cost reduces as pro
Slide 19: Indicative Project Schedule
Cambay Project Indicative Project Schedule 2012 2013 Cambay-76H Test CPR Vertical Wells D, G, A wells ? Core & Log Analysis CPR Horizontal Wells (D + G) D, G wells Production Test / Production CPR Early Production System Future average development well cost from company estimates are about A$10 mill
Slide 20: PSC & Fiscal Terms
Cambay Project Cambay PSC & Fiscal Terms This is one of the earliest and most investor-friendly PSCs in India. No relinquishment requirement upon appraisal / development progress. Maximum government share is 35%. – Recent PSC’s government share as high as 85% Investor’s upside on resource discovery
Slide 21: Other Projects
Other Projects
Slide 22: Other Exploration Projects
Other Projects Other Exploration Projects JPDA 06‐‐103 Oilex:10%, Operator Discussions for exploration well in H2 2012. Significant potential in northern part of contract area – higher risk. Infill 3D seismic survey and interpretation completed. Tutuala prospect confirmed. – Mean Prospective Resourc
Slide 23: Other Appraisal / Development Projects
Other Projects Other Appraisal / Development Projects Bhandut and Sabarmati Fields Oilex acquired 40% in each of Bhandut and Sabarmati Fields onshore Gujarat from Niko in January 2007. Oilex designated Operator. Discovered by ONGC. Hydrocarbons were found in Oligocene and Eocene sandstones. Minor oi
Slide 24: Management and Directors
Management and Directors
Slide 25: Board of Directors and Management
Board of Directors and Management Max Cozjin (Non-Executive Chairman), BComm, ASA MAICD Chairman since the Company listed on the ASX in 2003, Mr Cozijn has over 31 years experience in the administration of listed mining and industrial companies. He is a Non-Executive Director of Carbon Energy Limite
Slide 26: Unconventional Gas Industry Overview
Unconventional Gas Industry Overview Horizontal Drilling and Hydraulic Fracturing Shale Gas Production in the USA 3,500 3,110 3,000 2,500 2,116 2,000 1,500 1,293 1,000 1,000 800 700 500 - 2004 2005 2006 2007 2008 2009 USA Shale Oil and Gas production has increased substantially over the last 10 year
Slide 27: Appendix: Economy and Industry Overview
Appendix: Economy and Industry Overview
Slide 28: Sustainable Strong Growth in India
Sustainable Strong Growth in India 2010 – 2015 GDP Growth Forecast 1870 - 2030: Top Countries by Economic Dominance 10.0% 8.5% 8.0% 8.0% 7.4% 6.0% 5.0% 4.0% 2.7% 2.4% 2.0% 0.0% Unitted European Brazil Southeast India China States Union Asia 13,087 16,242 1,686 1,632 2,090 5,878 2010 GDP in US$ billi
Slide 29: Strong Domestic Demand for Natural Gas
Strong Domestic Demand for Natural Gas Primary Energy Composition India’s Natural Gas Deficit 2,500 BCF 500 India World Average 442 444 408 394 2,000 400 339 15% 1,500 300 31% 32% 37% 1,000 200 23% 500 100 6% - - 1990 2007 2008 2009 2010 26% 30% Nature Gas Production Nature Gas Consumption Coal Oil
Slide 30: Gujarat – Oil and Gas Hub of India
Gujarat – Oil and Gas Hub of India Gujarat’s Share in India Contribution of Gujarat to India by Sectors Population 5% Engineering 9% Geographical Area 6% Pharmaceuticals 45% Number of Factories 10% Chemicals 51% Net Manufacturing Value 12% Petrochemicals 62% Value of Output 16% Plastic Industry 65%
Slide 31: Gujarat – Oil and Gas Hub of India
Gujarat – Oil and Gas Hub of India The Project Gujarat has the most matured pipeline networks and value adding infrastructure for natural gas. – Gujarat is the first state in India to have a gas grid – Gujarat has a 1,400km integrated gas grid that is operated on a open access, common carrier princi
Slide 32: Gujarat – Oil and Gas Hub of India
Gujarat – Oil and Gas Hub of India Key Players in Gujarat’s Oil and Gas Value Chain Exploration Upstream E&P Midstream Downstream ONGC, GSPC, Reliance IOC, BPCL, HPCL, IOL, Reliance Industries Ltd. Niko Resources, IBP, Reliance, Essar, and Reliance Petroleum Ltd. Cairn Energy, GAIL, GAIL, ONGC, GSPC
Slide 33: Comparable Companies Analysis – USA Unconventional
Comparable Companies Analysis Comparable Companies Analysis – USA Unconventional (In US$ millions, except per share data) Company Overview Company Market Enterprise Sales EBITDA Net Income EV/EBITDA Price/Earnings EV/BOE Name Cap Value 2012A 2013E 2012A 2013E 2012A 2013E 2012A 2013E 2014E 2012A 2013
Slide 34: Comparable Companies Analysis – Australia Unconventional
Comparable Companies Analysis Comparable Companies Analysis – Australia Unconventional (In US$ millions, except per share data) Company Overview Company Market Enterprise Sales EBITDA Net Income EV/EBITDA Price/Earnings EV/BOE Name Cap Value 2012A 2013E 2012A 2013E 2012A 2013E 2012A 2013E 2014E 2012
Slide 35: Recent take off by Australian listed Shale plays
Recent take off by Australian listed Shale plays 350 Drillsearch (320% 300 uplift) Buru Energy Indexed Price performance (1 Jul 2011 = 100) (293% uplift) Senex Energy 250 (273% uplift) 200 Beach Energy (185% uplift) 150 100 ASX All Ords (6% decline) 50 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-1
Slide 36: Valuation: Acreage Multiples
Valuation: Acreage Multiples 30,000 25,000 Average: $21,135/acre 20,000 Average: $16,654/acre $/acre Overall Average of $13,920/acre 15,000 Average: $8,421/acre 10,000 Average: $6,386/acre 5,000 - *Aurora: $85,572/acre US Transactions 2010 US Transactions 2011 AUS listed Shale peers US listed Shale
Slide 37: Valuation: Comparative Transaction Multiples
Valuation: Comparative Transaction Multiples Announced Value Acreage Acquisition Date Acquirer Target Transaction Type Basin (US$MM) ('000 acres) value/acre Jun-10 Reliance Pioneer Resources JV Eagle Ford 1,300 263 4,943 Oct-10 CNOOC Chesapeake Asset Sale Eagle Ford 1,100 200 5,501 Oct-10 Talisman/S