Synergia Energy Ltd · LSE:SYN

Synergia Energy — Oilex — Shareholder Meeting (November 2012)

22 slides from Synergia Energy's shareholder meeting presentation, Nov 14, 2012

  1. Slide 1: Early mover Indian unconventional energy

    ABN 50 078 652 632 Early mover Indian unconventional energy Oilex Annual General Meeting | 14 November 2012 OILEX Ltd | Annual General Meeting 14 November 2012

  2. Slide 2: Important information

    Important information 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

  3. Slide 3: Company profile

    Company profile Oilex Ltd (ASX: OEX) is an oil and gas explorer with near-term production potential focused on unconventional oil and gas in India. Oilex is listed on the ASX and AIM Share price (as at 12/11/12) $0.064 £0.045 Market capitalisation $22.70 MM £15.96 MM Cash (as at 30/09/12) $9.52 MM £

  4. Slide 4: 2012 Financial Year Highlights

    2012 Financial Year Highlights  Independent verification of 222 BCF gas and 37 MMstb oil Contingent Resources and 420 BCF gas and 63 MMstb oil Prospective Resources at Cambay (Best Estimates, net Oilex)  Successfully drilled, completed and conducted fracture stimulation at Cambay-76H comparable to

  5. Slide 5: Strategy: Oilex in transition

    Strategy: Oilex in transition 2005-11 2012+ Conventional Target Unconventional onshore onshore/offshore Stage Explorer Producer Location Indian Ocean Rim India Early entry into world-class Opportunity Early-Late Mature resource  Restructure management and operations – “Right people for the job”  A

  6. Slide 6: Oilex's unique market opportunity

    Oilex’s unique market opportunity Capitalise on our early mover advantage BY Utilising modern technology to pursue tight oil and gas resources in a producing Indian basin WHERE Oil and gas is proven and the commercial potential is outstanding OILEX Ltd | Annual General Meeting 14 November 2012 6

  7. Slide 7: Compelling commercialisation opportunities

    Compelling commercialisation opportunities  Indian economy has excellent long term growth potential - 8%+ p.a.  Gujarat – “Growth engine of India”  International Energy Agency forecasts robust outlook for gas prices  Cambay project is ideally located at the hub of Indian’s largest gas pipeline n

  8. Slide 8: India's natural gas deficit expanding

    India’s natural gas deficit expanding Natural Gas Production Natural Gas Consumption Natural Gas Imports (RHS) Source: Energy Outlook 2030, BP 2011; Natural Gas in India, IEA 2010 OILEX Ltd | Annual General Meeting 14 November 2012 8

  9. Slide 9: Established gas infrastructure network

    Established gas infrastructure network CAMBAY FIELD EXISTING AND PROPOSED GAS PIPELINES IN GUJARAT Source: Gujarat State Petronet Limited OILEX Ltd | Annual General Meeting 14 November 2012 9

  10. Slide 10: India – attractive destination for oil & gas investment

    India – attractive destination for oil & gas investment  Attractive fiscal regime  Central Government regulated – as per UK, Australia etc  Favourable terms on Cambay PSC  Continuing strong demand driven by rising internal industrial consumption  Stable democratic political system  Petroleum s

  11. Slide 11: Increased confidence in successful execution

    Increased confidence in successful execution  Drilling, completion and fracture stimulation techniques extensively proven in North America successfully applied at Cambay  Improved capability of operating and technical team with new appointments:  Chief Operating Officer, based in India – Michael

  12. Slide 12: New Management Profiles

    New Management Profiles  Mike Maloney - COO  Project Manager for global energy companies such as Exxon, BHP Billiton, ENI  Operations Manager for major oilfield contractors in USA, North Sea, Australia, India, Japan and Vietnam  COO Nexus  Andy Pfaff - GMO  Subsurface engineering analysis, des

  13. Slide 13: Cambay-76H Operations Review

    Cambay-76H Operations Review WHAT OCCURRED LEARNINGS PROBLEMS AT FINAL STAGE OF NOTE: CAMBAY-76 H WELL DID SUBSURFACE OPERATIONS NOT TEST FOR HYDROCARBONS  Drilling, Completion, Fracture Stimulation, micro seismic went well Retain good performance aspects  High formation pressure post frac stimula

  14. Slide 14: What is being done?

    What is being done? Suspended well Cambay-76H and demobilised in May 2012  Reorganise to improve skills and reduce overheads  Compile operations reviews and risk mitigation strategy  Revise Field Development Plan to focus on a 5 year plan from 2013  Prepare and submit revised budgets  Assess ma

  15. Slide 15: What next? …Proposal to JV

    What next ? …Proposal to JV ENHANCE  Workover 3 wells initially for incremental production CONVENTIONAL  Evaluate other short term production opportunities PRODUCTION  Drill 350m horizontal well from C-76H pad to prove flow rate and DRILL OFFSET produce up to 30,000 BOE in FY 2013-14 WELL  Conve

  16. Slide 16: Cambay Project - world-class tight reservoir potential

    Cambay Project - world-class tight reservoir potential  Large acreage position ~40,000 acres  Independent assessment Netherland Sewell & Associates Inc. (Oct 2011) SUBSTANTIAL  222 BCF gas and 37 MMbbl oil Unrisked Contingent Resources RESOURCE (2C net Oilex)  Substantial prospective resource up

  17. Slide 17: Cambay-76H Well

    Cambay-76H Well  Tight reservoir technology transfer  Evaluation  Drilling and completion  Fracture stimulation  Encouraging well results  Oil and gas flared at surface  High formation overpressure  Consistent with production modelling  Liquids-rich gas  Comparable to North American tight

  18. Slide 18: Cambay-73 Production Test

    Cambay-73 Production Test  Vertical well drilled and completed 2008  Located ~ 1 km SW C-76H  10 metres perforations  86 tonne fracture stimulation  Testing Y Zone fm equivalent of C-76H  No apparent barriers between wells Cambay-73 Production test  Cumulative production (2008, 2012) 2012  1

  19. Slide 19: Activity pipeline

    Activity pipeline Indicative Project Schedule  Propose to drill Offset Well, 3 vertical + 2 horizontal wells in the next 18 – 24 months 2012 2013 Offset Well Production test result Vertical Wells 3 Book Contingent Core & Log Analysis Resources 2 Horizontal Wells Production Tests / Production + Book

  20. Slide 20: Near-term production and cash flow potential

    Near-term production and cash flow potential  Transformational strategy provides near-term production and cash flow potential  Reduces reliance on future equity injections  Targeting first production late 2013  Appraisal plan to drill and flow test offset well near Cambay-76H Cambay-76H flare -

  21. Slide 21: Other Assets

    Other Assets JPDA 06‐103 Oilex: 10%, Operator  Bazartete prospect  70.8 million barrels oil Mean Prospective Resources (unrisked 100% basis)  23% chance of success  Key risk – charge  Request for extension of term submitted to ANP WA 388P  Relinquished 27 August 2012 OILEX Ltd | Annual General

  22. Slide 22: www.oilex.com.au Phone: +61 8 9485 3200 Email: [email protected]

    ABN 50 078 652 632 www.oilex.com.au Phone: +61 8 9485 3200 Email: [email protected] OILEX Ltd | Annual General Meeting 14 November 2012

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