QUARTERLY ACTIVITIES REPORT

Transcription

1 31 st July 2012 Australian Securities Exchange 2 The Esplanade PERTH WA 6000 ASX Code: RAI QUARTERLY ACTIVITIES REPORT 30 JUNE 2012 HIGHLIGHTS Legal challenge successfully defended Acquisition of a strategic interest in VenturOil Philippines Inc CORPORATE OVERVIEW Legal Challenge During the quarter, Blade Petroleum Limited (Blade), Raisama Energy Limited s (Raisama) joint venture partner in the Cadlao Redevelopment Project, sought to terminate the farmin agreement (FIA) between the parties and enforce that termination in the Supreme Court of Western Australia. The FIA directs all disputes to be settled using arbitration and as such Raisama sought to have the court action stayed in favour of arbitral proceedings. The Supreme Court found in Raisama s favour, directing the parties to arbitration whilst awarding the Company costs (to be paid by Blade). The parties are now preparing for arbitration, using the Australia Centre for International Commercial Arbitration (ACICA) rules. This is anticipated to commence in the September quarter and is expected to determine if Raisama retains an ongoing opportunity to finance the Cadlao Project. However, should the arbitrator find in Blade's favour, Blade has the option to acquire the Company s existing 25% interest (together with associated royalties) for a sum calculated in accordance with the FIA and estimated by Raisama to be in excess of $7.3m. Acquisition of Strategic Stake in VenturOil Philippines Inc Raisama acquired a strategic, 40%, interest in VenturOil Philippines Inc (VenturOil) which, in turn, holds a 20% undivided interest in SC6 Cadlao and a 12.88% interest in SC6B Bonita (subject to Philippines Department of Energy (DOE) approval). VenturOil is a highly regarded local Philippines oil and gas company with strong ties to both the Philippines government and upstream petroleum industry. Raisama Energy Limited ABN Suite 1, 16 Ord Street, West Perth WA 6005 PO Box 1255 West Perth WA 6872 t f e info@raisama.com.au w

2 Quarterly Activities Report for the period ended 30 June 2012 Under the funding agreement with VenturOil, Raisama will acquire a 16.25% indirect working interest in the Cadlao project. This interest attributes to the Company 1 mmbbl (on a 2P basis), which Gaffney Cline and Associates has previously valued at $22m. Raisama will fund VenturOil s 20% share of development costs on the Cadlao Project, estimated to be between US$8m US$10m depending upon the final development solution approved by the DOE and also the relative timing of oil revenues related to this solution. VenturOil is only obligated to pay these costs following the spudding of the first development well at Cadlao, currently scheduled for 1Q13, which then closely ties project funding with project revenues. As such, Raisama does not have any near term funding obligations and, due to Cadlao s certified reserves, believes its commitments can be partially debt funded. Cadlao Redevelopment Project, Offshore Palawan Basin, Philippines Due to the legal action taken by Blade, Raisama has been effectively prevented from continuing its operational activities on the Cadlao Project. The Company hopes that a settlement of its dispute with Blade will enable the Project to regain its momentum for the achievement of first oil in SC6B Bonita Block, Offshore Palawan Basin, Philippines As a precursor to approval of Raisama as a Service Contractor (and Operator) of SC6B Bonita, the DOE has requested the Company to demonstrate funding capacity for its share of the requisite work program, budgeted at $100,000. This prerequisite is due to be completed in the next quarter. South Block A (SBA) North Sumatra Preparations for the 2D seismic program were delayed while the customary operating agreement was finalised between BP Migas and the relevant Provincial Government in Sumatra. This matter has been resolved and planning and execution of the seismic and drilling program has recommenced. The seismic tender process has restarted and is expected to be completed in the third quarter of the year. Seismic is planned to start in the fourth quarter and the drilling location will be finalised once the seismic has been completed. PEP Oil & Gas Exploration Block, Offshore Taranaki Basin, NZ The Operator, New Zealand Oil and Gas Limited, has advised that discussions continue to secure a drilling rig for the planned Kakapo Prospect. Pending rig availability and final government approvals, the prospect is likely to be drilled in Uranium Projects The Company continues to consider opportunities to maximise the value of its uranium projects whilst remaining focused on its oil and gas portfolio. Jeff Steketee Managing Director 2

3 Quarterly Activities Report for the period ended 30 June 2012 ADDITIONAL INFORMATION Cadlao Oilfield Redevelopment Project, SC6 / SC6B Bonita Philippines Located in the NW Palawan Basin in the Philippines, the Cadlao oil field has independently certified (2P) reserves of 6.05 mmbbl and an expected average gross field production rate of over 11,400 bopd for the first six months of production (5,700 bopd net to Raisama). The Company s models show the project having an IRR of more than 100%, and the field paying back the investment capital within the first two months of production and providing significant positive net cash flow in the first year of production. Notwithstanding the legal action between Raisama and Blade this quarter, and subject to resolution of the outstanding dispute between the parties, first oil can still feasibly be achieved in SC6B Bonita Block The final farmin documentation for SC6B Bonita was lodged with the DOE in January for formal approval. The DOE subsequently requested that all farminees demonstrate capacity to fund their respective portions of the committed work program. For Raisama, this amounts to $100,000. DOE approval is expected in the next quarter. The Bonita block surrounds the SC6 Cadlao Block and provides opportunities to tieback incremental oil production to the Cadlao Development, including from the nearby Cadlao East Prospect with around 4 mmbbls prospective oil resource. Cadlao Oilfield Redevelopment surrounded by successful field developments 3

4 Quarterly Activities Report for the period ended 30 June 2012 South Block A (SBA) Oil & Gas Exploration, Onshore North Sumatra In 2011, a prospectivity review of the South Block A Production Sharing Contract (PSC) area identified and prioritised six significant oil and gas prospects. One of these, the Amanah oil prospect, appears to be particularly interesting and, subject to the results of the forthcoming seismic program, is likely to be drilled first in the proposed drilling program. Amanah has been assessed to have a most likely prospective resource in excess of 40 million barrels of oil from six potential reservoir zones on the structure. The Amanah well would be relatively shallow with a total programmed depth of 1200 m and will be designed to intersect a minimum of six potential petroleum reservoir zones. One of the potential zones exhibits a distinct flat spot with associated high amplitude near the top of the structure (as indicated on the seismic section shown below). Flat spots and amplitude anomalies are indicators of a gas cap potentially overlying an oil accumulation. Such indications of petroleum trapped in the structure are positive for all potential reservoir targets throughout the depth of the well, providing supporting evidence of the petroleum trapping integrity of the structure on this prolific trend where oil with associated gas production is common. This Amanah prospect is close to commercial oil discoveries on the same structural trend and is directly adjacent to the Iee Tabue oil and gas field. The Iee Tabue field was discovered in 1971 and produced nearly 12 million barrels of premium 50.3 API light oil and 24 billion cubic feet of gas by Exploration technology at that time was less sophisticated and many of the wells in the area were located inaccurately without the benefit of seismic data. Wells were often not fully evaluated, particularly if potential oil zones encountered did not appear to meet the high economic hurdles of that period. Consequently, the SBA PSC is, by modern criteria, regarded as an underexplored area in a highly prolific oil and gas region with significant opportunity for major discoveries. The 2011 prospectivity review also identified a number of other prospects, including a large oil prospect and three large gas prospects, which require further delineation. The current year s work program includes a geological field survey and 2D seismic acquisition which will focus on these prospects. Existing infrastructure in the area will be beneficial to any drilling success in South Block A. Recently, Pertamina announced plans to convert the Arun gas plant to an LNG importing facility to meet the growing demand for gas in northern Sumatra. Raisama has 38.25% interest in SBA by virtue of its 75% (controlling) interest in REE Pte Ltd, which holds a 51% Working Interest in South Block A and Operates the PSC. 4

5 Quarterly Activities Report for the period ended 30 June 2012 Iee Tabue Oil Field (located just outside the SBA boundary) Amanah Prospect (40mmbbl) South Block A (SBA) Exploration Project Onshore North Sumatra Line 1011 S Proposed Amanah Well N Flat Spot indicating potential small gas cap over oil Seismic Line over Amanah Prospect 5

6 PEP Oil & Gas Exploration Block, Offshore NZ Quarterly Activities Report for the period ended 30 June 2012 The Kakapo prospect is situated in the highly productive Taranaki Basin which currently hosts discovered resources of 1.2 billion barrels of oil equivalent. The prospect is located between the Maari oil field (51 million barrels) and the Kupe gas/condensate field (288 billion cubic feet of gas plus 27 million barrels of liquids). Raisama holds the rights to a 10% working interest in the prospect which has a gross mean recoverable prospective oil resource of 380 million barrels, representing 38 million barrels net to Raisama. Kakapo Prospect (380 mmbbls prospective resource) PEP51311 Taranaki Basin NZ For further information please contact: info@raisama.com.au Jeff Steketee, Managing Director Ian Howarth, Investor Relations

7 Appendix 5B Appendix 5B Rule 5.3 Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001. Name of entity RAISAMA ENERGY LIMITED ABN Quarter ended ( current quarter ) June 2012 Consolidated statement of cash flows Cash flows related to operating activities Current quarter Year to date (12 months) 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration (153) (475) (744) (720) (3,745) (2,805) 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid (15) (125) 1.6 Income taxes paid 1.7 Other (provide details if material) Net Operating Cash Flows (1,367) (7,329) Cash flows related to investing activities 1.8 Payment for purchases of: (a)prospects (b)equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a)prospects (b)equity investments 1,412 (c)other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1, Total operating and investing cash flows (carried forward) (1,367) (5,917) + See chapter 19 for defined terms. 30/9/2001 Appendix 5B Page 1

8 Appendix 5B 1.13 Total operating and investing cash flows (brought forward) (1,367) (5,917) Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc , Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 2, Repayment of borrowings (1,973) 1.18 Dividends paid 1.19 Other (provide details if material) Net financing cash flows 684 3,912 Net increase (decrease) in cash held (685) (2,006) 1.20 Cash at beginning of quarter/year to date 2,528 3, Exchange rate adjustments to item 1.20 (1) 1.22 Cash at end of quarter 1,843 1,843 Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities Current quarter $A' Aggregate amount of payments to the parties included in item Aggregate amount of loans to the parties included in item Explanation necessary for an understanding of the transactions Director fees Noncash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows Nil 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest Nil + See chapter 19 for defined terms. Appendix 5B Page 2 30/9/2001

9 Appendix 5B Financing facilities available Add notes as necessary for an understanding of the position. 3.1 Loan facilities Amount available Amount used USD30,000,000* *Legavi funding package agreed in September 2011, funds yet to be forwarded to the Company. 3.2 Credit standby arrangements Estimated cash outflows for next quarter 4.1 Exploration and evaluation Development 4.3 Production 4.4 Administration 250 Total 750 Reconciliation of cash Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. Current quarter Previous quarter 5.1 Cash on hand and at bank 1,843 1, Deposits at call 5.3 Bank overdraft 5.4 Other (provide details) Total: cash at end of quarter (item 1.22) 1,843 1,843 Changes in interests in mining tenements 6.1 Interests in mining tenements relinquished, reduced or lapsed Tenement reference 38/ / / /1785 Nature of interest (note (2)) Tenement surrendered Tenement surrendered Tenement surrendered Tenement surrendered Interest at beginning of quarter 100% 100% 100% 100% Interest at end of quarter 0% 0% 0% 0% 6.2 Interests in mining tenements acquired or increased + See chapter 19 for defined terms. 30/9/2001 Appendix 5B Page 3

10 Appendix 5B Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates. Total number Number quoted Issue price per security (see note 3) (cents) Amount paid up per security (see note 3) (cents) 7.1 Preference + securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buybacks, redemptions Ordinary securities 316,838, ,384,262 N/A N/A 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buybacks Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted 7.7 Options 2,386,635 15,334,693 2,386,635 15,334,693 15,000,000 21,500, ,000 17,800, ,000 20,000,000 Exercise price $0.20 $0.35 $0.40 $0.50 $0.05 $0.28 Expiry date 31/12/ /12/ /12/ /12/ /08/ /11/ Issued during quarter: 600,000 $ /08/ Exercised during quarter 7.10 Expired during quarter 7.11 Debentures (totals only) 7.12 Unsecured notes (totals only) See chapter 19 for defined terms. Appendix 5B Page 4 30/9/2001

11 Appendix 5B Compliance statement 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4). 2 This statement does give a true and fair view of the matters disclosed. Sign here: Date: 31 July 2012 Michael Langoulant Company Secretary Notes 1 The quarterly report provides a basis for informing the market how the entity s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report. 2 The Nature of interest (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and Issued and quoted securities. The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with. == == == == == + See chapter 19 for defined terms. 30/9/2001 Appendix 5B Page 5