For personal use only. Nkembe PSC. Havoc Partners option and Add Energy s well planning agreements

Transcription

1 Nkembe PSC Havoc Partners option and Add Energy s well planning agreements November 2017

2 2 Overview Pura Vida has entered into agreements with Havoc Partners LLP and Add Energy Group to advance Nkembe in readiness for drilling in late 2018 Havoc Partners LLP Highly regarded geology and geophysics team with a focus on oil and gas Founders of Fusion Oil and Gas plc and Ophir Energy plc Established contacts in West Africa Add Energy Group International consultancy firm, specialising in the energy industry Well Management & Engineering, operations planning & execution, reservoir and infrastructure development Operates in West Africa and services major operators worldwide Add Energy and Havoc Partners are currently working together to provide management, operational, and technical services for an AIM-listed operator in offshore Nigeria

3 3 Overview Havoc Partners Havoc Partners LLP initial assessment and option agreement: Initial assessment: completion of 3D seismic reprocessing, interpretation of new and existing seismic data, deep structure mapping, optimising well locations, providing resource updates for Nkembe, Government liaison and interaction with Add Energy Option agreement: Havoc (or its nominee) has the option to acquire a 40%* interest in Nkembe by spending up to US$25m to appraise the Loba Discovery and test Loba Deep. Interest can be increased to 80%* should Havoc (or its nominee) elect to enter the second phase of the PSC and spend up to a further US$15m. If Havoc does not exercise the option and Pura Vida secures required funding, Havoc will earn up to a 15%* working interest in Nkembe The option expires on 1 April 2018 A break fee of US$150,000 is payable by Pura Vida in certain circumstances Other than minor reimbursable expenses, this work will be completed at no cost to Pura Vida Loba mapping completed by Pura Vida * Subject to the right of the State of Gabon to participate in any development for up to a 20% interest under the Nkembe PSC.

4 4 Overview Add Energy Add Energy s initial work program terms: Add Energy will provide well planning and design work, contracting strategy and project management services Add Energy has a first right of refusal to provide well management services for the first two wells on Nkembe Subject to any required approvals, Add Energy will also prepare for an extended well test on the Loba Discovery to assist in subsequent development planning and funding A break fee of US$150,000 is payable to Add Energy should Pura Vida or a third party farminee either decide to manage well operations themselves or engage another company to manage well operations on Nkembe Other than minor reimbursable expenses, this work will be completed at no cost to Pura Vida

5 5 Overview work program Anticipated work-flow expected to involve market updates in relation to resources for the Nkembe PSC and confirmation of securing a suitable rig to complete the appraisal well on Loba Discovery and test Loba Deep. Task November December January February Seismic reprocessing Detailed mapping Loba/Loba Deep Loba Resource Statement Well location Deep Structure Mapping Integrated Resource Statement Well Design Rig Contracting Strategy & Budget Extended Well Test Plan Reporting Havoc Partners LLP Add Energy Group Announcement anticipated

6 6 Background - Gabon Over 50 years of oil production history in Gabon Oil reserves of 2.5 Bn bbls with peak production of 370,000 bbl/day Oil Majors including Shell, Total, Petronas, Sinopec, Eni and Repsol are active in Gabon Nkembe block located in prolific Ogooue delta basin adjacent to producing fields New Oil Minister pro-active in offshore exploration and development Democratic republic, high standard of living relative to other West African neighbours GABON

7 Nkembe PSC Recent discoveries Producing fields Planned wells (2018) Nkembe is located amongst other producers in off-shore Gabon Nkembe is adjacent to infrastructure with potential to tie into existing pipelines providing offtake options Appraisal and development drilling is planned for 2018 on the shelf, offshore Gabon, by other operators and there are suitable rigs in the region that can be utilised by Pura Vida Pura Vida Ophir Ophir Ophir Ophir Tullow Nyonie Deep ENI Ogooue Delta (multiple Pura fields) Vida Sputnik Sputnik Shell / CNOOC Leopard Perenco Tullow Ogooue Fields (~500 mmbo) Perenco Tullow Shell / CNOOC See inset for detail Oguendjo Oguendjo Tchatamba Rabi Kounga Giant pre-salt fields (~900 mmbo) Igongo Olowi Olowi 7 Diaman Total Petronas Woodside Etame Etame 7

8 8 A Proven Oil Producing Basin The Nkembe block surrounds existing fields and infrastructure with capacity to handle both oil and gas from the Loba Complex The nearest tie-in for Loba is 10km to the north at the Barbier platform (A) with an alternative option to the FSO at Oguendjo, some 15km to the northeast (B) Loba is drill ready and using a fast track approach it can be producing within 3 months of well completion Additional future exploration prospects have significant resource potential Substantial follow-up potential due to a number of look-a-like prospects that could be easily tied in, such as Lepidote Deep,, Barracuda, Dentex, Cubera & Kingfish Location Map of Nkembe with Ogooue Fields (~500 mmbo) Operated by Total and Perenco Reservoir Targets Batanga Anguille Cap Lopez Gamba/U. Dentale L. Dentale Synrift Carbonate 240 mmbo 110 mmbo 130 mmbo Barracuda Loba Discovery A 38 mmbo 120 mmbo Lepidote Deep Dentex Kingfish Cubera Palomite Deep B Tie-in options

9 2018 Drilling Campaign Appraise and develop the Loba discovery and explore Loba Deep with a single well Loba Oil discovery (1) (Batanga) Loba Deep (2) Two off take routes (oil and gas pipelines) (Anguille) A B A Barbier Field Platform B Oguendjo Terminal (FSO) Nkembe PSC Barracuda Kingfish Dentex Palomite Deep Cubera (1) Refer to ASX release dated 31 May 2017 (2) Refer to ASX release dated 13 September 2016 Note: PVD contingent and prospective resources are gross, un-risked recoverable estimated volumes in millions of barrels of oil Reservoir Targets Batanga Anguille Azile / Cap Lopez Gamba / Upper Dentale Lower Dentale / Syn-rift 9

10 For personal use only Summary of Loba Oil Discovery with latest Pura Vida evaluation highlighting deeper exploration potential Loba Discovery is a single accumulation at this level ~P10 Area for GRV Mapped OWC at LOBA M-1 RED stippled line C.I.: = 50m Top Batanga Fm - Depth Map Discovered in 1976 The well was drilled on 2D Data that with the benefit of 3D can be seen to have penetrated on the flank and encountered an OWC contact confirming trap limitation and reducing uncertainty. Batanga formation major producing unit in all nearby fields Over 140 metres gross OIL column AV 18% porosity 27 API oil recovered similar to nearby fields LOBA DISCOVERY Contingent Resources Batanga Level LOBA DEEP Prospective Resources Anguille Level Loba Complex (Aggregated) Note: PVD contingent and prospective resources are gross, un-risked recoverable estimated volumes in millions of barrels of oil 31.5 mmbo 10

11 11 Loba Complex current plans Assuming the farm-out option is exercised or alternate funding secured, drill initial well to appraise Loba Discovery and test Loba Deep prospect Subject to successful results, plug Loba Deep and ready Loba Discovery for an extended well test Utilise a lift boat, combined with coastal tankers, to extract and store oil for offtake to nearby fields Depending on results of extended well test (and Loba Deep test), plan field development strategy and secure required funding Tie back options to Barbier Oil Field (10km) or Oguendjo Terminal, FSO (15km) Rental equipment options to reduce CAPEX requirements expected to be considered An example of a lift boat located next to a well head platform (included for illustrative purposes) for an extended well test of the Loba Discovery Potentially test other targets within block

12 Key risks Geological risk Exploration risk is evaluated by interpretation of geological and geophysical data and the accuracy of those interpretations can be influenced by a number of factors. A key risk in the commercialisation of the Loba Oil Field is establishing a commercial flow rate by carrying out a production test of that reservoir. Delays and cost overruns As with any offshore oil exploration and development project, there is potential for delays which may be caused by a number of factors, for example delays in obtaining government, regulatory or environmental approvals, operational delays during drilling or development operations due to equipment failure or bad weather, difficulties with suppliers and procurement, transport, reliance on contractors to meet schedules, etc. Such delays will result in increased costs. Work commitments and Title Pura Vida s ability to perform the work commitments in the current exploration phase of the Nkembe block, which includes acquisition of new 3D seismic data and a well, remains dependent on securing a funding partner and the finalisation of an agreement with the Government to vary those commitments and extend the term of the PSC. Development funding In the success case, the Company will need additional funding to proceed with any development of the Loba Oil Field or other discovery. The Company may look to industry partners for funding in such circumstances and/or consider debt or equity funding alternatives. Oil price Economic factors, and in particular, the oil price will impact the project. The price of oil fell sharply in late 2014 and a sustained period of relatively low oil prices has been experienced since then. The oil price has recovered from the lows experienced in early 2016 however remains volatile. General risks There are number of other risks commonly associated with the business of oil exploration, development and production. By its nature, oil exploration contains elements of significant risk with no certainty of the discovery and commercialisation of hydrocarbons. A broad range of factors may impact results such as operational and environmental risks, failure to obtain consents and approvals necessary for the conduct of operations and regulatory or sovereign risk and political instability. 12

13 13 Contacts & Disclaimer Contact Simon Eley Chairman M: F: E: seley@puravidaenergy.com.au Level 1, 89 St Georges Terrace Perth WA 6000 Resource estimates cautionary statement The estimated quantities of prospective resources relate to undiscovered accumulations and contingent resources relate to discovered accumulations. These estimates have an associated risk of discovery or appraisal (as the case may be) as well as a risk of development. Further exploration, appraisal and/or evaluation is required to determine the existence of a commercial quantity of moveable hydrocarbons. Persons compiling information about hydrocarbons Prospective and contingent resource estimates in this presentation were prepared as at May The contingent and prospective resource estimates were first reported to ASX in Pura Vida s ASX market announcement dated 13 September 2016 titled Pathway to Near Term Oil Production from the Nkembe Block and, in regard to the Loba oil discovery, updated on 31 May 2017 with an announcement titled Nkembe Project Update including Resource Increase for Loba which set out the information required pursuant to ASX Listing Rule 5.42 in relation to the estimates. Pura Vida is not aware of any new information or data that materially affects the information included in the ASX market announcements dated 13 September 2016 and 31 May 2017 and all the material assumptions and technical parameters underpinning the estimates of the contingent and prospective resources in that announcement continue to apply and have not materially changed.

14 14 Disclaimer This presentation has been prepared by Pura Vida Energy NL (Company). This document contains background information about the Company current at the date of this presentation. The presentation is in summary form, has not been independently verified and does not purport be all inclusive or complete nor does it contain all the information that a prospective investor may require in evaluating a possible investment in Company or its assets. Recipients should conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements and opinions contained in this presentation. This presentation is for information purposes only. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of securities in any jurisdiction. This document is not a prospectus and does not contain all of the information which would be required to be disclosed in a prospectus. This presentation may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in such jurisdiction. This presentation does not constitute investment advice and has been prepared without taking into account the recipient's investment objectives, financial circumstances or particular needs and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. Recipients should seek their own professional, legal, tax, business and/or financial advice when deciding if an investment is appropriate. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments. To the fullest extent permitted by law, the Company and its related bodies corporate, its directors, officers, employees and representatives (including its agents and advisers), disclaim all liability, take no responsibility for any part of this presentation, or for any errors in or omissions from this presentation arising out of negligence or otherwise and do not make any representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of any information, statements, opinions, estimates, forecasts, conclusions or other representations contained in this presentation. This presentation may include forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Company s current expectations, estimates and assumptions about the industry in which the Company operates, and beliefs and assumptions regarding the Company s future performance. Words such as anticipates, expects, intends, plans, believes, seeks, estimates, potential and similar expressions are intended to identify forward-looking statements. Forward-looking statements are only predictions and are not guaranteed, and they are subject to known and unknown risks, uncertainties and assumptions, some of which are outside the control of the Company. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward-looking statements or other forecast. Actual values, results or events may be materially different to those expressed or implied in this presentation. Given these uncertainties, recipients are cautioned not to place reliance on forward looking statements. Any forward looking statements in this presentation speak only at the date of issue of this presentation. Subject to any continuing obligations under applicable law and the ASX Listing Rules, the Company does not undertake any obligation to update or revise any information or any of the forward looking statements in this presentation or any changes in events, conditions or circumstances on which any such forward looking statement is based.

15 Appendices

16 BLUE SKY Lepidote Deep Drilling a deeper target than the original 1970 s well which had good oil shows but did not test a valid trap Gas flags Gr Oil Sat (S o ) Lith Oil shows over encountered Amplitudes within a single channel that crosses the broad structural 4 way dip closure. Other stacked channels (not shown here) Lepidote 1 Well location Max closure Multiple stacked channels over 800m gross interval Lepidote Deep (2) Gross un-risked prospective recoverable resources (mmbo) LOW BEST HIGH MEAN (2) Refer to ASX release dated 13 September 2016 Note: PVD contingent and prospective resources are gross, un-risked recoverable estimated volumes in millions of barrels of oil 16

17 BLUE SKY Multiple stacked targets with the potential to deepen and test additional pre-salt Palomite Deep prospect (Single well) Line A (Batanga level) Batanga Level (2) P90 P50 P10 Mean Gamba Dentale Palomite Deep Synrift carb (Anguille level) Lower Anguille Level (2) P90 P50 P10 Mean Loba oil discovery (left) has shallow bright amplitude Gas flags (DHI s) that directly overlie the field that are associated with faulting. These flags are seen and mapped at (right) Line B (Cap Lopez level) Cap Lopez Level (2) P90 P50 P10 Mean (2) Refer to ASX release dated 13 September 2016 Note: PVD contingent and prospective resources are gross, un-risked recoverable estimated volumes in millions of barrels of oil 17

18 BLUE SKY Multiple stacked targets, well deepened to test the pre-salt Palomite Deep that also has stacked targets Palomite Cluster (Post & Sub-salt) Single well C Palomite Deep (Pre-Salt only) Gamba Dentale Dentex (Post & Sub-salt) Palomite Deep Synrift carb A single well to test the post, sub & pre-salt is viable in 2 areas Targets tested by a single well at C at Prospect Name Palomite Deep Palomite Deep Palomite Deep Dentex Dentex Reservoir Synrift Carb Dentale Gamba Cap Lopez Lower Anguille Batanga Lower Anguille Batanga Mean (2) (2) Refer to ASX release dated 13 September 2016 Note: PVD contingent and prospective resources are gross, un-risked recoverable estimated volumes in millions of barrels of oil 18