Return to Production & Unlocking Value

Transcription

1 Return to Production & Unlocking Value Investor Presentation September 2014 ASX Code TAP This presentation contains some references to forward looking assumptions, representations, estimates, budgets, and outcomes. These are uncertain by the nature of the business and no assurance can be given by Tap Oil Limited that its expectations, estimates, budgets and forecast outcomes will be achieved. Actual results may vary materially from those expressed herein.

2 Important Information Disclaimer Certain statements contained in this presentation, including information as to the future financial or operating performance of Tap Oil Limited and its projects, are forward-looking statements. Such forward-looking statements: are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Tap Oil Limited, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies; involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements; and may include, among other things, statements regarding targets, estimates and assumptions in respect of production and prices, operating costs and results, capital expenditures, reserves and resources and anticipated flow rates, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions. Tap Oil Limited disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise. The words believe, expect, anticipate, indicate, contemplate, target, plan, intends, continue, budget, estimate, may, will, schedule, potential, opportunity and similar expressions identify forward-looking statements. All forward-looking statements made in this presentation are qualified by the foregoing cautionary statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein. No representation or warranty is or will be made by any person (including Tap Oil and its officers, directors, employees, advisers and agents) in relation to the accuracy or completeness of all or part of this document, or any constituent or associated presentation, information or material (collectively, the Information), or the accuracy, likelihood of achievement or reasonableness of any projections, prospects or returns contained in, or implied by, the Information or any part of it. The Information includes information derived from third party sources that has not necessarily been independently verified. Subject to any obligations under applicable laws, regulations or securities exchange listing rules, Tap Oil disclaims any obligation or undertaking to release any updates or revisions to the Information to reflect any change in expectations or assumptions. Nothing contained in the Information constitutes investment, legal, tax or other advice. The Information does not take into account the investment objectives, financial situation or particular needs of any recipient. Before making an investment decision, each recipient of the Information should make its own assessment and take independent professional advice in relation to the Information and any action taken on the basis of the Information. Person compiling information about hydrocarbons The reserve and contingent resource information in this report is based on information compiled by Mr Denis Bouclin B.A.Sc (Hons), M.A.Sc (Engineering), P.Eng., who has consented to the inclusion of such information in this report in the form and context in which it appears. Mr Bouclin is a part-time employee of the company, with more than 25 years of relevant experience in the petroleum industry. Mr Bouclin is a member of the SPE and APEGA. Reserves and Contingent resources have been estimated using both probabilistic and deterministic methods. Reserves and contingent resources are aggregated by arithmetic summation by category. Reference point for measurement of reserves is the point of sales. Tap is not aware of any new information or data that materially affects the assumptions and technical parameters underpinning the estimates of reserves and contingent resources and the relevant market announcements referenced continue to apply and have not materially changed. 2

3 Corporate Profile An independent oil and gas company, headquartered in Perth, Western Australia Flagship Manora Oil Development, first oil expected to commence shortly after completion of drilling of development wells MNA-01 and MNA-02 Focused, risk managed approach to asset management Core focus areas are in some of the world s most prolific oil and gas provinces Breakdown of investor by region As at 11 September 2014: Share Price Shares On Issue Rights On Issue Market Capitalisation Market Snap shot (ASX: TAP) 3-month Average Daily Turnover Cash at 30 June 2014 Debt Borrowing Base Facility Drawn at 31 Aug 2014 A$ million 12.1 million A$163 million 0.6 million A$ million US$90 million ($36.25 million) Reserve & Contingent Resource Estimate* Proved plus Probable (2P) Reserve Estimate Tap Share Oil and Condensate Reserves 6.1 mmstb Contingent Resource (2C) Estimate Tap Share 220 PJ 7 mmstb Source: Orient Capital_Sharetrak report_ 1 September 2014 *All estimates as at the evaluation date of 31 December

4 Portfolio Overview - Diversity and Balance Thailand (G1/48 & G3/48) Malida-1 oil discovery (G1/48) Two wells planned for 2015 Australia Vic/P67 (option to acquire up to 15%) Seismic data received 1 August 2014 for Tap interpretation WA-320-P/WA-155-P II Palmerston well (Tap carried up to US$3.5 million) Myanmar (Block M-07) Exploration Offshore block awarded in March 2014 in the Moattama Basin (subject to finalisation of PSC terms) Appraisal/ Development Thailand Manora Oil Development First oil expected shortly after completion of MNA-01 and MNA-02 development wells 6.1 mmbbls net 2P Reserves mmbbls 2C Resource 1 Australia Zola and Bianchi Gas Discoveries (WA-290-P, WA-49-R) Zola and Antiope: 48 PJ 2C net Contingent Resource sales gas 2 Bianchi-1: 16 PJ 2C net Contingent Resource sales gas 2 Tallaganda-1 Gas Discovery (WA-351-P) 49 PJ 2C net Contingent Resource 3 WA Gas Production & Revenue Third Party Gas contracts approximately A$30 million revenue per annum 1. ASX Announcement 27 October ASX Announcement 26 February ASX Announcement 29 January

5 Strategic Focus Unlocking Value Strategic and immediate focus on unlocking value Return to mid-tier producer status with first oil from Manora Oil Development expected shortly after the completion of MNA-01 and MNA-02 development wells. Manora a first class oil project: 6.1mmbbls net 2P Reserves and 3.2mmbbls net 2C Resource 1 11-year field life Cashflow expected soon after commencement of production Existing Australian discoveries present significant value crystallisation opportunities Risk managed exploration program presents further upside Value creation strategies at a corporate level Manora cashflow generation provides opportunity for enhanced capital management Refinancing with BNP Paribas provides for long-term funding needs 1. ASX Announcement 27 October

6 Unlocking Value - Manora Oil Development Located in Northern Gulf of Thailand Current 2P Reserves of 6.1 mmbbls net to Tap Ultimate potential field size increased 30% to 9.3mmbbls net recoverable (2P & 2C) since acquisition (ASX Announcement 27 October 2011) Tap s capex estimate remains at approximately US$97m (excluding abandonment) Development concept (platform, FSO unit & development wells) proven in Thailand 15 development wells (10 producers, 5 water injectors) Development drilling commenced (5 September 2014). MNA-01 and MNA-02 drilling scheduled to take a total of 24 days on trouble free basis. FIRST PRODUCTION EXPECTED TO COMMENCE SHORTLY AFTER COMPLETION OF MNA-01 and MNA-02 Concession Participants G1/48 Participating Interest MP G1 (Thailand) Limited (Operator) 60% Tap Energy (Thailand) Pty Ltd 30% Northern Gulf Petroleum Pte Ltd 10% 6

7 Manora Oil Development Production commencing shortly Component Platform (jacket and topsides) FSO (leased) Status Jacket loadout and installation is complete. Platform Topsides installation was completed on 7 July with the hook up and commissioning phase largely completed. Completed in November 2013 by the owner of the FSO, Omni Offshore Terminals Pte. Ltd (formerly Tanker Pacific Offshore Terminals Pte. Ltd). The FSO arrived on location on 25 July 2014 and has been connected to the CALM Buoy and subsea flowlines. Drilling Development drilling commenced (5 September 2014). Batch drilling of MNA-01 and MNA-02 in progress. MNA-01 and MNA-02 drilling scheduled to take a total of 24 days on trouble free basis. MNA-03 also spudded 9 September 2014, and surface casing set. Running intermediate 9 5/8 casing for MNA-01 (11 September 2014). 7 7

8 Manora Oil Development - Progress Platform construction Transporting of jacket Installed jacket Platform Topsides construction nearing completion Towing of topside Topside installed Source: Mubadala Petroleum Manora Princess standing by in shipyard Drilling rig on location 8

9 Tap Historical Production vs Share Price 1,000,000 Manora first production expected to transition Tap back to being a significant mid-tier producer $ , ,000 $2.50 Quarterly Production (boe) 700, , , , ,000 Forecast Manora Production $2.00 $1.50 $1.00 TAP share price 200,000 $ ,000 - $0.00 Production (BOE) Share price at end quarter NOTE: Third quarter 2014 share price is as at 9 September Source: Factset and Tap quarterly reports 9

10 Carnarvon Basin: WA-290-P & WA-49-R Zola-1 and Bianchi-1 Gas Discoveries Located on trend and immediately south of the giant Gorgon gas field Three gas discoveries have been made on block - Zola-1, Bianchi-1 and Antiope Zola-1 discovery March 2011 Tap estimates gross 2C contingent resources of 638 PJ within the retention lease and a net resource to Tap of 64 PJ. Net 2C contingent resource of 16 PJ booked for Bianchi-1 discovery (ASX announcement 26 February 2014) A retention lease, WA-49-R, was granted for five years in Q Joint Venture Participants Participating Interest Apache Northwest Pty Ltd (Operator) 30.25% Santos Offshore Pty Ltd 24.75% OMV Australia Pty Ltd 20.00% JX Nippon Oil & Gas Exploration (Australia) Pty Ltd 15.00% Tap (Zola) Pty Ltd 10.00% Bianchi-1 is in a separate fault block to the Zola-1 discovery and qualified as the commitment well in WA-49-R Appraisal and development options under consideration 10

11 Carnarvon Basin: WA-351-P Joint Venture Participants BHP Billiton Petroleum (North West Shelf) Pty Ltd Participating Interest 55% Tallaganda-1 Gas Discovery Tallaganda-1 was the first Triassic well in WA-351-P and was drilled early in 2012 The greater structure on which the Tallaganda discovery was made straddles WA-351-P and WA-335-P where a gas discovery was reported in Bunyip-1 well Tap has booked net 49 PJ of 2C Contingent Resources (ASX announcement 29 January 2013) Evaluation is being undertaken to select the drilling candidate for a Year 5 well (Year 5 commences 28 June 2014) Approval has been received to delay the commitment well and extend the term of the permit to end December 2015 Apache Northwest Pty Ltd 25% Tap (SCB) Pty Ltd 20% BHP Billiton Petroleum Pty Ltd (Operator) 11

12 Carnarvon Basin: WA-320-P & WA-155-P (Part II) Joint Venture Participants WA-320-P OMV Australia Pty Ltd Apache Permits Pty Ltd (Operator) JX Nippon Oil and Gas Exploration (Australia) Pty Ltd Tap (NCB) Pty Ltd WA-155-P (Part II) Apache Permits Pty Ltd (Operator) OMV Australia Pty Ltd Inpex Alpha Ltd JX Nippon Oil and Gas Exploration (Australia) Pty Ltd Tap (NCB) Pty Ltd Participating Interest % % % 9.778% % % % 7.000% 6.555% WA-320-P & WA-155-P (Part II) Gas Prospect Located south of the Zola-1 discovery in a similar geological setting Preliminary planning for an exploration well in WA-320-P has commenced Tap farmed out 10% in WA-320-P and 7% in WA-155-P (Part II) to JX Nippon Oil and Gas Exploration (Australia) Pty Ltd in exchange for a 5% carry on the Palmerston well (up to a total well cost of US$70m) A new 3D seismic data set has been licensed and is currently being processed The joint venture aims to utilise this new 3D seismic data set to image the Palmerston structure prior to drilling The timing of the Year 3 commitment well has not yet been agreed 12

13 Otway Basin: Vic/P67 Joint Venture Participants Peedamullah Petroleum Pty Ltd (a subsidiary of AWE Limited) Participating Interest 60% WHL Energy Limited (Operator) 40% Tap Oil Limited * * Tap has an option to acquire an initial 10% interest. For further detail refer to our ASX Announcement 18 September Gas discovery and further exploration Located approximately 200km WSW of Melbourne adjacent to existing producing gas fields and infrastructure Tap has an option to acquire a 10% interest by paying up to a maximum US$2.95 million towards seismic commitments by 31 March 2015 The 10% option does not lapse until 10 days after AWE commits or declines to enter the drilling phase Additional option to increase equity to 15% by paying 20% of first commitment well (gross well cost capped at US$35m ($7m Tap Share)) AWE may either withdraw or assume operatorship and commit to drill 2 wells at either 30% or 60% interest WHL Energy, the Operator of Vic/P67, has been processing the data from the La Bella 3D seismic survey completed in December Processed seismic data was received on 1 August 2014 and is now being interpreted. 13

14 Thailand: Exploration Near-Term Exploration Activity Oil discovery at Malida-1 with 9.5 metres of net oil pay interpreted Enhanced potential of a fairway between the Manora oil field and the new Malida-1 oil discovery Subject to further successful drilling to aggregate additional resource volumes, there is potential to tie discoveries back to the Manora facility Commitment wells in the G1/48 and G3/48 concessions expected to be drilled in 2015 Low cost wells in shallow water Concession Participants G1/48 Participating Interest MP G1 (Thailand) Limited (Operator) 60% Tap Energy (Thailand) Pty Ltd 30% Northern Gulf Petroleum Pte Ltd 10% Concession Participants G3/48 Participating Interest MP G3 (Thailand) Limited (Operator) 60% Tap Energy (Thailand) Pty Ltd 30% Northern Gulf Petroleum Pte Ltd 10% 14

15 Myanmar: Block M-07 Joint Venture Participants Participating Interest ROC Oil (Operator) % Tap % Smart E&P International Ltd 5% Award of Shallow Water Exploration Block Located in the gas and condensate prone Moattama basin, offshore Myanmar The 13,000km 2 Block is 160km east of the 6.5Tcf Yadana gas field and 110km north east of the 1.5Tcf Zawtika gas field The Moattama basin is the most prolific offshore hydrocarbon province with existing production from two offshore fields and a third field close to production commencement Production typically from stacked miocene clastic reservoirs Tap will hold a % interest with Roc Oil operating the licence Provision for the JV to undertake an 18 month Environmental Impact Assessment and Study Period An option to proceed into a three year exploration work programme following initial 18 month period PSC award is subject to finalisation of terms with the Myanmar Ministry of Energy (MOE) 15

16 Unlocking Value - Activity Pipeline The table below lays out the indicative forward Drilling and Development Activity Schedule for the next 15 months: Drilling Near-Term Catalysts Manora Oil Development Commencement of production at Manora First cargo lifting at Manora Ongoing Manora development drilling Interpretation of well result Geochemical surveys * Includes shale oil and gas exploration as well as conventional exploration. Tap has earned the right to take a 20% interest in the resulting exploration permits on election, with an option to earn an additional 15% in each permit. ** Tap has an option to acquire an initial 10% interest. For further detail refer to our ASX Announcement 18 September *** First production expected to commence shortly after completion of MNA-01 and MNA-02 wells. Drilling Steady flow of varied activity and share price catalysts 16

17 Achievements and Future Milestones Exit from Brunei WA-351-P pre-emption and resale Zola-1 gas discovery in WA-290-P Finucane oil discovery in WA-191-P Booking of Manora 2P reserves Sale of interest in Finucane Fletcher JV Sale of interest in Harriet JV Entered unconventional play in onshore Carnarvon Basin Tallaganda-1 discovery in WA-351-P Manora Oil Development Final Investment Decision Thailand exploration drilling Special prospecting authorities granted in onshore Carnarvon Basin Equity swap of WA-320-P & WA-155-P (II) Ghana farm down and transfer of operatorship Tallaganda-1 volumetrics Debt financing for Manora Oil Development Corporate debt facility TL/2 / TP/7 appraisal well (Taunton-5/5H) WA-49-R appraisal well (Bianchi-1) Ghana exploration well (Starfish-1) Ghana 6 month extension Farm down of WA-320-P & WA-155-P (II) Acquire option to participate in Vic/P67 Malida-1 oil discovery in Thailand Ghana first extension period decision Bianchi contingent resources Myanmar award of offshore PSC BNP refinancing of CBA Manora Oil Development construction and drilling ongoing Manora Oil Development first production Interpretation of 3D seismic Vic/P67 First cargo lifting at Manora Vic/P67 seismic acquisition completed Manora Oil Development construction and drilling ongoing 17

18 Appendix ASX Code TAP This presentation contains some references to forward looking assumptions, representations, estimates, budgets, and outcomes. These are uncertain by the nature of the business and no assurance can be given by Tap Oil Limited that its expectations, estimates, budgets and forecast outcomes will be achieved. Actual results may vary materially from those expressed herein.

19 Capital Structure (as at 18 August 2014) Substantial Shareholders Breakdown of Investors by Region Name Shares % M&G Investment Mgt 23,983, % NGP Holdings 15,276, % DFA Group 14,087, % Troy Hayden* (MD/CEO) 1,979, % *ASX Announcement Appendix 3Y dated 25 July 2014 Breakdown of Investors by Type Top 20 investors hold ~58% Australian investors hold ~45% Since Nov 2012 Asian investors interests have increased ~1.1% from 6.1% to 7.2% Source: Orient Capital_Sharetrak report_ 1 September

20 Contact Details Principal Registered Office Level 1, 47 Colin St, West Perth, WA 6005 T: E: info@tapoil.com.au ASX Code TAP This presentation contains some references to forward looking assumptions, representations, estimates, budgets, and outcomes. These are uncertain by the nature of the business and no assurance can be given by Tap Oil Limited that its expectations, estimates, budgets and forecast outcomes will be achieved. Actual results may vary materially from those expressed herein.