Black Rock Mining Limited · ASX:BKT
Black Rock Mining — Oil Basins — RIU Good Oil Conference 2012
25 slides from Black Rock Mining's conference presentation, Sep 4, 2012
Slide 1: ASX Announcement
ASX Announcement Company Announcements Office Australian Securities Exchange By e-lodgement 5 September 2012 (ASX Code GRK) OBL Presentation including Backreef Area update Please find attached the presentation given to the RIU Good Oil Conference in Fremantle on 4 September by Neil Doyle, Director a
Slide 2: Major Upside Potential Across Diverse Assets
MAJOR UPSIDE POTENTIAL ACROSS DIVERSE ASSETS RIU GOOD OIL CONFERENCE ESPLANADE HOTEL FREMANTLE PRESENTED BY NEIL DOYLE, DIRECTOR & CEO 4 SEPTEMBER 2012 ASX CODES: OBL & OBLOB
Slide 3: Disclaimer
Disclaimer This presentation is for the sole purpose of preliminary background information to enable recipients to review the business activities of Oil Basins Limited ABN 56 006 024 764 (ASX code OBL). The material provided to you does not constitute an invitation, solicitation, recommendation or
Slide 4: Corporate Snapshot
Corporate Snapshot Directors Kim McGrath Executive Chairman (Founder) Highly experienced corporate, geology & Neil Doyle Director & CEO (Founder) engineering teams delivering modern technologies Nigel Harvey Non-Executive Director & techniques to mature basins. Senior Management During 2012, Company
Slide 5: Overview
Overview Establish production hubs near known oil & gas fields in mature basins OBL operates 3 onshore/offshore assets - Oil: offshore Carnarvon – 100% R3/R1 - Oil: onshore Canning – 80% rights Backreef Area (foundation IPO asset) - Oil, CSG/USG: onshore Canning Application 5/07-8EP - 50% rights e
Slide 6: High potential portfolio in key locations
Permit 5/07-8EP USG potential 51 – 253 Tcf High potential* portfolio in key locations CSG potential 2 – 5 Tcf *Gross unrisked in-place basis Backreef Area Oil Pools STOOIP 48 – 117 MMbbls OBL holds circa 77.2 M share Investment in BAS OBL Is the Major Holder In BAS BAS’s ASX Release on 16 May 2012 G
Slide 7: 2012 Achievements
2012 Achievements Gippsland : Converted two drilling options to direct 12.5% interest at $nil, saving $4.1m in farmin promote costs Canning : Sold 20% of Backreef Area to Green Rock Energy Limited (GRK) - $3.6m payment to OBL - May 2012, effective 50% free carry on two recent production tests of
Slide 8: OBL's Canning Basin interests
OBL’s Canning Basin interests Arbitration with Kimberley Land Council on behalf of the traditional owners is progressing well East Blina-1 Well Backreef-1 Oil Pool 7
Slide 9: Backreef Area – New Oil Play
Backreef Area – New Oil Play Backreef-1 Oil Pool OBL holds 80% beneficial interest* Located adjacent to Blina oilfield within Kimberley Downs Embayment of Canning Basin, 105 km east-southeast of Derby In 2011 an independent technical review of OBL’s ‘New Oil Play’ encountered by Backreef-1 wil
Slide 10: Regional Seismic Line BV93-17
Regional Seismic Line BV93-17 East Blina-1 rollover better positioned, circa 40m closure potential Nullara Lst Windjana Lst Depth (m) Backreef-1 result Yellow Drum / Gumhole fm reservoir tested oil DST-1: Recovered fresh water flow rate est. 1000 bpd (NaCl 3,300 ppm) with trace free oil (Laurel styl
Slide 11: Blina-1 and Backreef-1 oil extracts
Blina-1 Backreef-1 Backreef Yellow Drum oil extracts Clanmeyer (Pr/Ph >1) similar in Nullara Nullara Lst Lst character to Blina-1 Laurel & Yellow Drum extracts. Windjana Lst Blina-1 Nullara oils (Pr/Ph <1) are Famennian Red different to Yellow Beds Virgin Hills Drum extracts. Correlated to Lower Vir
Slide 12: 2 Plays – Shallow Oil & Deeper USG / USO
2 Plays – Shallow Oil & Deeper USG / USO Depth Map Top Yellow Drum Dolomite Depth Map Top Windjana Limestone overlying high perm formation overlying Virgin Hills & Gogo Shale New play area circa >150 km² C1-C4 evident in Blina-1 deep & C1-C4 recoverable potential 9-37 MMbbls evident in Backreef-1 de
Slide 13: Backreef Area – 2012 De-risking Strategy
Backreef Area – 2012 De-risking Strategy Production test on Backreef-1 conducted May 2012 Confirmed new oil play in Gumhole Dolomites with very favourable reservoir qualities – permeability >500 mD and porosity circa 17%, oil is a ‘Meda style oil’ re-analysis of CPX logs indicates oil present ev
Slide 14: Carnarvon Basin – Cyrano Oil Field
Carnarvon Basin – Cyrano Oil Field Airlie Island Oil Hub New Geophysical Study Area (1) OBL acquired 25% in 2008 R5 Oil Field Extension & remaining 75% in October 2010 Successfully renewed project as R3/R1 with 5 year retention lease in October 2011 Field contains 10m net heavy 22.8 API, low S
Slide 15: Cyrano R3/R1 – New Work 2012
Cyrano R3/R1 – New Work 2012 100% interest in Cyrano Oil Field R3/R1 Preferred development potentially reduces capex by >75% from US$150m to circa $30m - objective to reduce from $140 to <$30 per barrel 2011 geophysical assessment conducted to significantly increase risked (P50) Stock Tank Ori
Slide 16: Cyrano Oil Field – Development Study
Cyrano Oil Field – Development Study Multiple EPTs (Leap-frogging along strike of field) Jack-Up Drilling & EPT #1 Production Testing Unit Target 795,000 bbls Lateral #1 Jack-Up Drilling & Production Testing Unit Lateral #2 re-deployed for EPT #2 Jack-Up Crude EPT #2 Storage Unit Lateral #1 Target 7
Slide 17: Canning Basin CSG
Canning Basin CSG OBL 50% designated operator permit 5/07-8EP Net prospective risked 2P resources assessed at between 2.2 – 5.2 Tcf Independent coal measures study assessed historic data – 51-118Bt coal estimated within permit 2 thick & deep coal coal depocentres delineated, considered highl
Slide 18: Canning Basin USG
Canning Basin USG Potential new large energy source – OBL designated operator 50% Independent expert report delineated unrisked USG prospective potential 51 to 253 Tcf GIP 6 formation units occurring within permit Evidence of high TOCs from side wall cores analysis, previously cut in Booran-
Slide 19: New View of Fitzroy Trough
New View of Fitzroy Trough New View – Regional NE-SW Section after 3DGeo (2012) In the core of the Fitzroy Trough, basement is very deep with a significant thickness Ordovician – Carboniferous sediments deposited. Source rocks in these sequences are mature (probably the source for the oil and gas on
Slide 20: OBL offers best exposure to Canning
OBL offers best exposure to Canning Backreef-1 has reduced risk for New Oil Play, CSG/USG to de-risk Canning Strategic footprint for CSG / USG to LNG with potentially large volumes of gas located close to Derby & established regional infrastructure Export CSG to LNG / USG to LNG (James Price Poi
Slide 21: Eastern Gippsland Basin
Eastern Gippsland Basin 12.5% - Vic/P41 & 17% - Vic/P66 Permit recently renewed for third term Operator signed Joint Study Agreement with CNOOC on 2 August 2011 OBL recently assigned further 5% of Vic/P41 to secure investment OBL is the major shareholder circa 77.3 M shares in Bass Strait
Slide 22: Eastern Gippsland Basin
Eastern Gippsland Basin Foundation IPO asset, 6 undrilled 3D defined prospects Vic/P41 potentially best undrilled permit in offshore Eastern Gippsland Basin Gross P10 Vic/P41 upside 713 MMbbls Oil & 3.1 TCF Gas with potential for further upside – ie circa 50% of BAS portfolio upside is located
Slide 23: What sets Oil Basins apart?
What sets Oil Basins apart? 4 diverse projects in mature basins & located close to established markets Potential for significant increase to shareholder value & Company re-rating during 2012/2013 100% offshore oil development asset with potential 2-4 MMbbls 2C resources & estimated capex modes
Slide 24: > OIL BASINS umes -
> OIL BASINS umes - ae. art scismitanelveis New play concepts High leverage
Slide 25: Glossary & Petroleum Units
Glossary & Petroleum Units M Thousand PSTM Pre-stack time migration – MM Million reprocessing method used with seismic B Billion PSDM Pre-stack depth migration – bbl Barrel of crude oil (ie 159 litres) reprocessing method used with PJ Peta Joule (1,000 Tera Joules (TJ)) seismic converting time into