Carnarvon Energy Limited · ASX:CVN
Carnarvon Energy — Carnarvon Petroleum — Investor Presentation (February 2006)
28 slides from Carnarvon Energy's investor presentation, Feb 6, 2006
Slide 1: ASX cover letter - Investor Update
6 February 2006 Company Announcements Office Australian Stock Exchange Limited Exchange Centre 20 Bond Street SYDNEY NSW 2000 Via ASX Online Dear Sirs, INVESTOR UPDATE Please find attached Carnarvon Petroleum Limited’s February 2006 Investor Update. Yours faithfully, CARNARVON PETROLEUM LIMITED Bob
Slide 2: Thailand: A Tiger by the Tail - Investor Update
CARNARVON PETROLEUM CARNARVON PETROLEUM LTD Thailand A Tiger by the Tail February 2006 Investor Update
Slide 3: Overview of Carnarvon
CARNARVON PETROLEUM OVERVIEW OF CARNARVON Generating cashflow from Wichian Buri oil field in Thailand (40% CVN) ⎯ 9 MMBO gross recoverable oil – Carnarvon net 3.6 MMBO ⎯ Current gross production of 140 BOPD – Carnarvon net revenue 4Q05 A$144,000 Committed programme for 2006 comprising 3D seismic
Slide 4: Capital Structure
CARNARVON PETROLEUM CAPITAL STRUCTURE Capital Structure: Shares on issue (ASX : CVN) : 318 million Options on issue: – Market Cap: at 5.6c / share (close Friday 3 Feb) : $17.8 million Cash on hand: 31 December 2005: $0.7 million Share price: 12 month range : 1.6 – 6.2 cents Shareholders: Directors &
Slide 5: Share Price Performance
CARNARVON PETROLEUM SHARE PRICE PERFORMANCE CVN Share Price and Volume $0.07 20,000,000 18,000,000 $0.06 Strong and rising 16,000,000 oil prices 14,000,000 $0.05 12,000,000 $0.04 10,000,000 8,000,000 $0.03 6,000,000 4,000,000 $0.02 2,000,000 $0.01 - 1/01/03 1/05/03 1/09/03 1/01/04 1/05/04 1/09/04 1/
Slide 6: Directors
CARNARVON PETROLEUM DIRECTORS Board of Directors Peter Leonhardt Chairman (Since March 2005): Independent company director and adviser with extensive business, financial and corporate experience Chairman of Voyager Energy where he oversaw the successful merger with Arc Energy Chartered Account
Slide 7: Permits
CARNARVON PETROLEUM PERMITS Thailand L44/43 40% P50 9mmbbls oil recoverable gross to JV L33/44 40% Good exploration potential Currently producing around 140 BOPD with a committed 3D seismic and drilling programme planned for 2006 New Guinea PRL4&5 15% Sale process Currently finalising the sale
Slide 8: Thailand Acreage
CARNARVON PETROLEUM THAILAND ACREAGE Wichian Buri Oil Field Carnarvon 40% L44/43 & L33/44 Carnarvon 40%
Slide 9: Why Thailand
CARNARVON PETROLEUM WHY THAILAND Opportunity Driven Existing Carnarvon asset Good Fiscal Terms 5% royalty and 50% Corporate tax Good terms for SE Asia Same Time Zone Less time for management travel Thailand Needs Oil Discoveries Net importer of oil Ongoing Industry Government understands i
Slide 10: Wichian Buri Oil Field
CARNARVON PETROLEUM WICHIAN BURI OIL FIELD SUMMARY OF CRUDE RESERVES AS OF JANUARY 1, 2005, PROVIDED BY GAFFNEY CLINE AND ASSOCIATES Oil Reserves Gross (MMbbl) Proved Producing 0.2 Proved undeveloped 0.5 Total Proved 0.7 Probable 9.0 Total Proved plus Probable 9.7 Possible (1) (2) 29.6 Total Proved+
Slide 11: Wichian Buri Oil Field
CARNARVON PETROLEUM WICHIAN BURI OIL FIELD Historical Issues Dispute with operator Tiger Petroleum in relation to operational performance Well design not optimal Minimal appraisal/development work A distressed asset – opportunity for Carnarvon Accomplishments 2005 Sep 2005 - Pan Orient tak
Slide 12: Wichian Buri Oil Field
CARNARVON PETROLEUM WICHIAN BURI OIL FIELD L33/44 B uri cence an Li i chi ction W du Pro L44/43 Wichian Buri Oil Field 15 kms THESE ARE BIG PERMITS – OVER 2 MILLION ACRES
Slide 13: Wichian Buri Regional
CARNARVON PETROLEUM WICHIAN BURI REGIONAL Wich ian Buri Sub-Basin P rospects P lay Styles S ang a Ro l ov er anticline : F S - an dston e Wich ian Bu ri Unit II P hu To a Low relief ro llo v era nticlin e: F-S ands to ne Wich ai n Bu ri Un it III S eco nd ary Target: Pre-Tertiary Lst ni b uried h il
Slide 14: Past Success
CARNARVON PETROLEUM Past Success 8 exploratory wells – 4 discoveries: L33 Wichian Buri-1 (WB-1) 480 bbls/d + 3.5MMcfg/d L44 L Miocene Sand (950 meters) WB-1 Si Thep (ST-1) 65 bbls/d M Miocene Sand (650 meters) BR-1 Borang (BR-1) 5.5 MMcfg/d + oil shows NS-1 Fractured Volcanic (600
Slide 15: Wichian Buri Reservoir Model
CARNARVON PETROLEUM WICHIAN BURI RESERVOIR MODEL THERE IS POTENTIAL FOR GOOD Wichian Buri Structure lies SAND DEVELOPMENT within graben development eg 25% porosity & 1 Darcy permeability – sand in a sand interval in WB4 reservoirs within these grabens Need to find other zones of good reservoir devel
Slide 16: Wichian Buri Field Structure
CARNARVON PETROLEUM WICHIAN BURI FIELD STRUCTURE SEISMIC DIFFICULT TO INTERPRET IN DETAIL VOLCANICS PRESENT NEED GOOD QUALITY SEISMIC TO MAP COMPLEX FAULT STRUCTURES HIGH SHALE CONTENT IS GOOD FOR PROSPECTS UPTHROWN AND DOWNTHROWN FAULT TRAPS SHALE SMEAR ALONG FAULTS
Slide 17: Wichian Buri Trend Upside
CARNARVON PETROLEUM WICHIAN BURI TREND UPSIDE PLENTY OF EXPLORATION POTENTIAL PROSPECTS IN L44/43 ALONG WICHIAN BURI TREND INTO L33/44 L33/44 Wichian Buri L44/43 L33/44 Bo Rang Gas Discovery Prospects In yellow Other Oil Discoveries L44/43 NEED GOOD QUALITY SEISMIC Wichian Buri Oil TO MAP COMPLEX RE
Slide 18: Many Prospects Need Work
CARNARVON PETROLEUM MANY PROSPECTS NEED WORK Bo Rang Gas Discovery – uncommercial???? Discovered in 1990 DST 644-653m flowed 5.5 Mcfd dry gas – oil leg? Many prospects - need good interpretation work
Slide 19: Planned 3D Seismic
CARNARVON PETROLEUM Planned 3D Seismic 2006 L44 L33 Reprocessing 14 km2 3D (In process) L44 225 km2 new 3D acquisition (May completion) L33 Reprocessing 500 kms 2D (Done) New 3D
Slide 20: 2006 Work Program
CARNARVON PETROLEUM 2006 WORK PROGRAM ITEM 2005 2006 L44/33 and L33/43 Oct Nov Dec Jan Feb Mar April May June July Aug Sept Oct Nov Dec Early Monsoon Peak Monsoon 3D Reprocessing 2D Reprocessing 3D Seismic Drilling (W ithin PL's) Drilling (2 wells) Drilling L44/33(outside/inside PL's) Drilling (5 we
Slide 21: Wichian Buri Field – 2006 Activity
CARNARVON PETROLEUM WICHIAN BURI FIELD – 2006 ACTIVITY Seismic Reprocessing Nearing completion – most completed and some nearing completion Mapping of Reprocessed Seismic Well underway – Updated prospects and reserves soon 3D Seismic Poor seismic definition – new seismic will be acquired 2Q 20
Slide 22: Overview of Pan Orient (JV Partner)
CARNARVON PETROLEUM OVERVIEW OF PAN ORIENT (JV PARTNER) Listed on TSX-V (POE) with 27.7 million shares on issue – Market Cap A$105 million Has assembled a strong management and technical team with significant international and domestic oil & gas experience Well funded with approximately A$11 m
Slide 23: Technical Competence of JV
CARNARVON PETROLEUM TECHNICAL COMPETENCE OF JV Technical Management CARNARVON Ted Jacobson Geologist/geophysicist with 36 years experience Total Oil Marine, BP, UNOCAL, SANTOS, Petroz, Discovery, Tap Oil David Orth Geologist with 25 years experience BHP, Triton PAN ORIENT Jeff Chisolm Geophysicist w
Slide 24: Carnarvon Assets - Baniyas Prospect
CARNARVON PETROLEUM CARNARVON ASSETS EP 424 BANIYAS PROSPECT Large Downfaulted BANIYAS PROSPECT trap against Locker Shale seal Large – Carnarvon 35% SE NW DHI amplitudes present on seismic Approximately 30% in EP 424 Also deeper potential in Jurassic Rest in Chevron Block TL/4 Muderong Shale Baniyas
Slide 25: Comparison with Larger Australian Oil Companies
CARNARVON PETROLEUM COMPARISON WITH LARGER AUSTRALIAN OIL COMPANIES Net Oil Reserves P50 (Gas not included) Net Oil As at Current Reserves Market Cap Attributable Carnarvon 3.6 mmbbls Current $18 million Tap Oil 5.2 mmbbls Dec 2004 $410 million Arc Energy 4.2 mmbbls Oct 2005 $400 million AWE 8.8 mmb
Slide 26: Conclusion – Tiger by the Tail
CARNARVON PETROLEUM CONCLUSION – TIGER BY THE TAIL 2006 will be a year of consolidation and growth for Carnarvon. The key success drivers will be: Exciting 2006 work program 3D Seismic programme (US $4.5m gross) Drilling – 2 carried & 10 firm and 10 contingent budgeted development and exploratio
Slide 27: Contacts
CARNARVON PETROLEUM CONTACTS Peter Leonhardt Richard Simpson Chairman Head of Corporate Finance Phone (08) 9321 2665 Phone (08) 9268 2824 Fax (08) 9321 8867 Fax (08) 9268 2830 Email [email protected] Email [email protected] Ted Jacobson Dale Bryan Managing Director Corp
Slide 28: Disclaimer
CARNARVON PETROLEUM DISCLAIMER In the interest of providing current and potential shareholders with information regarding the Company’s plans and future operations, certain statements and graphics in this presentation contain “forward looking statements”. Such forward looking statements involve risk
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