Nido Petroleum Limited Investor Update. Phil Byrne, Managing Director

Transcription

1 Nido Petroleum Limited Investor Update Phil Byrne, Managing Director October 2013

2 Disclaimer and Competent Person Consent This presentation contains forward looking statements concerning the financial condition, results of operations and business of Nido Petroleum Limited ( the Company ). All statements other than statements of historical fact are, or may be deemed to be, forward looking statements. Forward looking statements are statements of future expectations that are based on management s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause the actual results, performance or events to differ materially from those expressed or implied in these statements. These risks and uncertainties include, but are not limited to: price fluctuations, actual demand, currency fluctuations, drilling and production results, commercialisation, development progress, operating results, reserve estimates, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries, approvals and cost estimates, political risks including the risk of expropriation and renegotiation of the terms of contracts with government entities, delays or advancements in the approval of projects and delays in the reimbursement of shared costs. All references to dollars, cents or $ in this presentation are to Australian currency, unless otherwise stated. Peer Group Comparisons Any reference to ASX peer group includes the following companies: Tap Oil, MEO Ltd, Carnarvon Petroleum Ltd, Otto Energy Ltd, Rialto Ltd, Pan Pacific Petroleum Ltd, Cue Energy Resources Ltd, Pancontinental Oil & Gas Ltd, Neon Energy Ltd and Nexus Energy Ltd. Reserves Information and Competent Person Consent The reserves information contained in this presentation concerning the West Linapacan A field is a summary of the report filed by the Company on the ASX on 4 September Mr Stephen Lane, B.Sc. (Hons.) Geology, Technical Director, Gaffney Cline & Associates who is a member of the Society of Petroleum Engineers and has at least five years experience in the sector consented in writing to the inclusion of this information in the form and context in which it appears in this presentation. The reserves information concerning the Galoc oil field contained in this presentation has been reviewed by Mr David Lim, BSc. (Hons), MSc. Director, Odin Reservoir Consultants Pty Ltd. Mr Lim is a Petroleum Reservoir Engineer and a member of the Society of Petroleum Engineers and has over five years experience in the sector. Mr Lim consented in writing to the inclusion of the information concerning the Galoc oil field in the form and context in which it appears in this presentation. 2

3 Corporate Snapshot ASX listed upstream oil and gas Company, headquartered in Perth, Australia Diversified growth portfolio of producing, developing & exploring assets in SE Asia Sound financial position & funded work program Experienced Board and Management Snapshot Key Corporate Data Market Data Share Price (as at 23 Sep 13) 4.5c Shares on Issue 2.046Bn Market Capitalisation (at 4.5c) $92M Financial Data HY 13 ($M) Cash at Bank 29.9 Debt (9.0) Undrawn Debt ~(17.0) Revenue 19.7 Net Profit 15.6 Production & 2P Reserves (Nido Share) as at 30 June 2013 Average net bopd (HY 13) 1,118 Galoc (MMstb) ~3.1 West Linapacan (MMstb) 3.2 3

4 Board & Management Bill Bloking FAICD - Non Executive Chairman Over 39 years experience in the global energy industry with senior executive roles with overall strategic, commercial and corporate accountability. 33 years of the 38 spent with ExxonMobil and the BHP Billiton Group, holding senior executive positions in Australia, Asia, South America and the United States. Phil Byrne MAICD - Managing Director & CEO Petroleum geologist with over 30 years global experience in senior exploration, business development, commercial, and leadership roles in the oil & gas industry. Strong background in production and operational activities with BG Group and BHP Billiton Petroleum. Andrew Edwards FAICD - Non Executive Director Former Managing Partner of PWC (Perth Office) Chartered accountant with over 30 years experience Former State Chairman and national vice president of the Financial Services Institute of Australiasia Significant experience as a non executive director of listed companies. Eduardo Mañalac MAICD - Non Executive Director 35-year career in international petroleum exploration and production management, acreage acquisition, production sharing contracts and Joint Venture negotiations. Started the first geological mapping of the Palawan Basin in the Philippines and encouraged Phillips Petroleum s (now ConocoPhillips) initial entry into the Palawan Basin and similar areas in Indonesia. Michael Ollis GAICD Non Executive Director PhD in fluids with over 30 years experience in the global oil & gas industry in senior operation engineering, drilling and completion roles. Senior management experience at BHP Billiton Petroleum in exploration, appraisal and development of oil fields. Jon Pattillo MAICD Head of Exploration & Production Senior petroleum executive with over 26 years experience in the oil & gas industry managing international exploration and development projects, strategic planning and commercial areas. Proven track record of delivering and creating value through organic growth and new business development. Ashley Gilbert MAICD - Chief Financial Officer Chartered accountant with over 18 years experience in commerce and public practice. Significant expertise in financial control and accounting, statutory and joint venture accounting, tax planning and compliance, treasury management, capital raising, negotiation of debt facilities, risk management and insurance matters. John Newman MAICD - General Counsel & Company Secretary Company secretary and lawyer with more than 20 years legal experience Significant expertise in negotiating project agreements, divestments and acquisitions, corporate governance and advice, capital raisings and insurance. 4

5 Company Strategy To build a high quality balanced portfolio of producing, development and exploration assets in Asia To focus on reserves and production growth in the near term To provide a high quality exploration drilling program which is fundable from cash resources and has the potential to have a material impact To forge partnerships with value adding partners 5

6 Portfolio Snapshot 6

7 Acreage Maps 7

8 Galoc Development (22.88% W.I.) Phase II Production Commencing Nov 13 Galoc Field SC 14C1 Currently producing ~4,500 bopd gross Phase II expected to deliver ~8 MMbls of additional Resources (gross) Expected to lift gross production ~12,000 bopd (net Nido ~2,700 bopd) Key Milestones: Subsea installation October / November 2013 Increased Oil Production ~ end November 2013 Reserves (MMstb) as at 1 January P 2P 3P Gross Nido Net Working Interest* *Net Working Interest is different to Net Entitlement Interest as it does not include the subtraction of the Government s entitlement 8

9 West Linapacan A Redevelopment (22.28% W.I.) Nido 2P Reserves 3.2 MMstb Reserves recently assessed by Gaffney Cline & Associates Field produced 8.5MMbbls of oil prior to being shut-in in 1996 Re-development concept of two horizontal subsea wells tied-back to an FPSO being planned Key Milestones: FID expected in 2014 First oil production anticipated in 2015 Upside from West Linapacan B and exploration leads Reserves (MMstb)* as at 30 June P 2P 3P Gross Nido Net Entitlement * Based on a 2 well development, Linapacan limestone only 9

10 Forward Drilling Program - Philippines High Impact Baragatan-1 Exploration Well Mean OIIP 676 MMbbls Baragatan Prospect 50% W.I. Nido is Technical Operator Large, 3D seismic defined rotated fault block Targeting Pagasa Formation sandstones producing at the Galoc Oil field (SC14C1) Well cost ~US$24 million (gross); Nido share ~ US$12 million Nido seeking to farm-out to balance equity position Drilling timing subject to securing an appropriate rig Baragatan-1 Resource Potential (MMbbls, gross)* Low Best High Mean OIIP Prospective Resource * Resource volumes estimated by Nido and tabulated on a Gross volume basis 10

11 Forward Drilling Program - Indonesia 3 Exploration Well Program Offshore Indonesia Recent Farm-in deal into the Gurita, Cakalang and Baronang PSCs with Operator, Lundin Petroleum B.V. PSC s located over prospective Penyu and West Natuna grabens PSC s lie in close proximity to numerous oil and gas fields and discoveries (Belida Field 350mmbbls) 10% W.I. in each PSC with option to increase up to 20% W.I. prior to drilling 3 well program to commence in November 2013 Prospective Resources (MMbbls, gross)* Baronang PSC Low Best High Balqis-1** Boni-1 (sidetrack) Gurita PSC Gobi * Gross Prospective Resources provided by Lundin; Nido s Net Entitlement volumes will be lower than the volumes in the table ** Summation of all primary reservoir objectives 11

12 Net Reserves Position 1P, 2P & 3P West Linapacan 'A' Reserves (mmstb) at Net Entitlement Interest as at 30 June 2013* Galoc Field Total Reserves (mmstb) at Net Working Interest as at 1 Jan 2013 * Represents production from 1 Jan 2013 to 30 June P 2P 3P * as estimated by Gaffney Cline & Associates 0.0 1P 2P 3P *as estimated by David Lim of Odin Reservoir Consultants P/L as at 1 January 2013 (refer to Appendix for complete table) ** to be re-estimated at year-end

13 Active Forward Program to Year End 2014 REGION ASSET PLANNED ACTIVITY 4Q Q Q Q Q 2014 Philippines SC 14C1 - Galoc Oil Field Phase II Production SC 14C2 - West Linapacan A Oil Field Schedule based on operators best estimate FEED FID (estimate) Project Execution * Wells SC 63 Drill Baragatan-1** Well Indonesia Baronang PSC Drill Balqis-1** Well Drill Boni-1** Well Gurita PSC Drill Gobi-1** Well SE Asia New Business Build Asset Portfolio *First Oil in anticipated in 2015 **Drilling timing based on securing relevant approvals and suitable rig 13

14 A$ MM Fully Funded for Planned Forward Program ** Funding details Galoc Phase II oil field development Two exploration wells and exploration side-track in the Baronang and Gurita PSC s, Indonesia Baragatan-1 exploration well in SC 63, Philippines West Linapacan Re-development FEED and pre-fid costs * Forecast revenue based on oil price remaining at or around US$100/bbl with actual lifting's subject to production performance, timing and success of Phase II. ** Cash flow expenditure / revenues based on current budget estimates. *** West Linapacan CAPEX estimates are not incorporated in the above chart. 14

15 Investment Proposition Fully funded work program for approved activity in 2013 and 2014 Base production set to almost triple by end of November 2013 (~1000 bopd to ~2700 bopd) Recent significant reserves upgrade (2P reserves from ~3MMstb to ~6 MMstb bbls net) Active exploration program with 4 wells over the next 12 months targeting a combined prospective resource of ~88 MMbbls net to Nido West Linapacan A reserves base paves the way for a second field development with expected cash flow stream in 2015 Current share price underpinned by Galoc production, with little recognition for West Linapacan A development or near term exploration drilling potential 15

16 Appendix Balquis Prospect Indonesian PSC Balquis Prospect 16