CORPORATE PRESENTATION TSX-V: TGC I OTCQX: TNVMF

Transcription

1 CORPORATE PRESENTATION TSX-V: TGC I OTCQX: TNVMF

2 FORWARD LOOKING STATEMENTS This presentation contains forward-looking information which may include, but is not limited to, statements with respect to the future financial or operating performance of Terra Nova Energy Ltd. (the Company ). Often, but not always, forward-looking information can be identified by the use of words such as plans, expects, is expected, budget, scheduled, estimates, forecasts, intends, anticipates, or believes or variations (including negative variations) of such words and phrases, or statements that certain actions, events or results may, could, would, might or will be taken, occur or be achieved. Forward-looking information involves known and unknown risks and uncertainties that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current exploration and drilling activities; actual results of reclamation activities; changes in labour costs or other exploration costs; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of hydrocarbons; accidents, labour disputes and other risks of the oil and gas exploration industry; delays in obtaining governmental approvals or financing or in the completion of wells or integration with hydrocarbon collection infrastructure; and other acts of God or unfavourable operating conditions and losses; political instability, insurrection or war. Forward looking information is based on a number of material factors and assumptions, including the determination of reserves or resources, if any; the results of exploration and drilling activities, the availability and final receipt of required approval, licenses and permits; that sufficient working capital is available to complete proposed exploration and drilling activities; that contracted parties provide goods and/or services on the agreed time frames; the equipment necessary for exploration is available as scheduled and does not incur unforeseen break downs, that no labour shortages or delays are incurred and that no unusual technical problems occur. While the Company considers these assumptions may be reasonable based on information currently available to it, they may prove to be incorrect. Actual results may vary from such forward-looking information for a variety of reasons, including but not limited to risks and uncertainties discussed above. The Company intends to discuss in its quarterly and annual reports referred to as the Company s management s discussion and analysis documents, any events and circumstances that occurred during the period to which such document relates that are reasonably likely to cause actual events or circumstances to differ materially from those disclosed in this presentation. New factors emerge from time to time, and it is not possible for management to predict all of such factors and to assess in advance the impact of each such factor on the Company s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking information. 2

3 TERRA NOVA S MISSION Focused on exploring for and developing low cost, high margin oil and gas opportunities in safe jurisdictions within the Pacific Rim Region to service its growing demand for energy 3

4 TERRA NOVA ENERGY LTD. CORPORATE OVERVIEW: TSX-V: TGC OTCQX: TNVMF RECENT $.17 TRADING Closing Price (3/11/2015) $.06 - $ Week Range 73k Avg. Daily Volume 3 - Month CAPITAL STRUCTURE 87.5 Million Shares Out 7.4 Million Options Out 1.9 Million Warrants Out ENTERPRISE VALUE $14.9 Million Market Cap $0 Million Convertible Debt $3,085,000 Cash as of 2/23/2015 (Unaudited) 3 All information as of March 11, 2015 unless otherwise stated. 4

5 INVESTMENT HIGHLIGHTS STRONG MANAGEMENT with expertise in natural resource exploration development and financing as seen with the recent success of Pacific LNG HIGH MARGIN CASH FLOWS generated in numerous recent western flank discoveries have had a return on investment of under one year UNDER EXPLORED flanks of the Cooper Basin are the prime focus of new oil and gas exploration RIGHT LOCATION Central to Australia s extensive pipeline infrastructure and in close proximity to Southeast Asian Markets 5

6 THE TERRA NOVA TEAM TECHNICAL + CAPITAL MARKET EXPERIENCE HENRY ALDORF Chairman + Chief Executive Officer Mr. Aldorf has 37 years of experience in the petroleum and chemicals industry and is currently President of Pacific LNG Operations Ltd., which recently landed a deal with Oil Search Ltd. for $900M USD plus further contingent payments MATT ANDERSON Chief Financial Officer Chartered Accountant and Senior Consultant with Malaspina Consultants Inc., a private company that provides financial services to public companies, previously the CFO of I-Minerals Inc., Search Minerals Inc. and Dynamic Oil & Gas Exploration Inc. NICO CIVELLI VP Finance + Director Independent financial advisor who provides financial consultancy services by working closely with several leading European and North American asset managers, which specialize in the natural resources CARLO CIVELLI Senior Advisor Founder of Pacific LNG Operations Ltd. and Clarion Finance Pte. Ltd. with over 30 years of experience in the venture capital and natural resources sector, having financed at least a dozen early stage investments which developed into billion dollar market cap companies CHAS LANE Country Manager, Australia Petroleum geologist, with 30 years experience in exploration and production operations around Australia including the discoveries and development of the Mirage, Growler and Snatcher Oilfields in Cooper/Eromanga Basin ISTVAN GYORFI Exploration Manager, Australia Geophysicist and Reservior Engineer with extensive exploration experience and track record in discovering hydrocarbons. Most recently at Pacific Rubiales Corp. in Columbia and other companies including MOL, PDVSA and GDF Suez 6

7 WHY AUSTRALIA? OIL AND GAS PIPELINE NETWORK STRATEGIC LOCATION Ideally situated to supply China, Japan and other Southeast Asian countries POLITICAL STABILITY Australia has the lowest risk of political instability in the region and 4th lowest in the worlds BUSINESS FRIENDLY Of the 34 OECD countries, Australia has the fewest restrictions on product markets and least government ownership of business GROWTH MARKET #1 ranked country to replicate unconventional oil success of the US with an estimated 1.7 trillion barrels of oil equivalent (BOE) 1 1 Lux Research Inc. January 14, 2014 Source: Government of South Australia, DMITRE 7

8 Favourable fiscal terms, exploration is incentivized, regulations transparent. Ease of access to authorities and technical data. Industry Respondent 2013 Fraser Institute Global Petroleum Survey INCENTIVES AND LICENSING ATTRACTIVE FISCAL TERMS Federal Royalty 10% Native Trust Royalty 1% Corporate Tax Rate 30% DATA ACCESS All geological data available in the public domain after two years PETROLEUM EXPLORATION LICENSE Maximum Area: 10,000 sq km per license Initial Term of Tenement: 5 years Relinquishment End of Term: 50% Renewal Term: 5 years PETROLEUM PRODUCTION LICENSE Maximum Area: 100 sq km per license Initial Term + 1st Renewal Term: N/A 8

9 THE COOPER+EROMANGA BASINS AUSTRALIA S MOST PROLIFIC ONSHORE PRODUCTION LIGHT + SWEET COOPER BASIN OIL SUCCESS RATE Oil recovered from the basin consists of light, sweet crude oil (>40 API) which receives premium pricing OIL FIELDS and 200 gas fields discovered since the first commercial discovery in 1963 OIL DISCOVERIES OIL PRICES (US$) INFRASTRUCTURE 5,600 km network of pipeline infrastructure connecting a central processing plant in the heart of the basin to 3 major seaports ACTIVE AREA Four producers in the Cooper Basin, including industry leaders: Beach Energy Drillsearch Energy Senex Energy Source: Government of South Australia, DMITRE COOPER BASIN OIL & GAS SUCCESS RATES JANUARY DECEMBER 2013 NEW ENTRANTS (AFTER 2002) EXPLORATION WELLS DRILLED COMMERCIAL SUCCESS RATE OIL EXPLORATION WELLS TECHNICAL SUCCESS RATE Source: Government of South Australia, DMITRE APPRAISAL AND DEVELEOPMENT WELL DRILLED COMMERCIAL SUCCESS RATE % 46% % 9

10 AUSTRALIAN ASSETS OVERVIEW 20.66% OWNERSHIP of two licenses located on western flank of Cooper/Eromanga Basins Holloman Energy* 48.50% Perseville Investing Inc % 3,444 SQ KM or 850,000 acres PEL 112 PEL 444 1,086 sq km (268k acres) 2,358 sq km (582k acres) UNDER EXPLORED 6% of PEL 112 and PEL 444 have been shot with 3D seismic leaving a substantial exploration upside *Current farm-in agreement with Holloman and Perseville: Holloman and Perseville are required to transfer an aggregate 5.83% to Terra Nova on both Petroleum Exploration Licenses (PELs) for each well drilled to a maximum ownership of 49.83%. Perseville is not required to transfer its earning contribution to Terra Nova in the event that it pays its proportionate share of the drill costs. If Perseville elects to fund its share of all five wells, Terra Nova would obtain a 41.05% ownership. 10

11 PEL 444 SIXTEEN DRILL LOCATIONS have been recently identified by the reprocessed Wingman 3D seismic in the Birkhead, Hutton and Namur formations LOCATION License is geologically similar to the Charo and Snatcher oil fields located 21 km south of PEL 111 3D SEISMIC 80 sq km of 3D seismic was acquired in July 2013 leading to the interpretation that the Jurassic Oil Fairway possibly extends into PEL 444 NEARBY SUCCESS Senex drilled 11 wells in the Snatcher oil fields which each produce barrels of oil per day (Bopd) 1 1 DMITRE and Senex Energy data; initial production rates 11

12 PEL 112 LOCATION Targets on the license are similar geologically to the producing Butlers, Perlubie and Parsons oil fields located to the north 3D SEISMIC 127 sq km of 3D seismic was acquired in August 2012 in addition to reprocessing 665 sq km of 2D seismic, which generated 40 drill targets 1,000 BARRELS Principle reservoir target is the Namur sandstone that can produce at rates in excess of 1000 barrels of oil per day NEARBY SUCCESS Production in Beach Energy s Bauer oil field in PEL 91 near record high at 2.4 million BOE in Q1-FY2015 ON TREND AREA PRODUCTION IN DISCOVERIES WITHIN THE PAST 10 YEARS Butlers Oil Field (2009) 1 Mmbbls; 1,425 Bopd 1 Beach Energy, November 2014 Perlubie Oil Field (2009) Parsons Oil Field (2008) Source: Discovery Energy Corporation, ,000 Bbls; 560 Bopd 1.7 Mmbbls; 2,775 Bopd 12

13 NEARBY SUCCESS - THE CHARO-SNATCHER OIL FIELDS - Field makes up 66% of Senex s ($448 million mkt cap) total oil production * - Field located 15 km south of the TGC s Wingman 3D Seismic *Senex Energy Limited, Annual Report 2014 STRUCTURAL MAP OF 3D SURVEYS SHOWING SEISMICALLY MAPPABLE CHANNEL SYSTEMS CHARO-SNATCHER PROVEN AREAS: Seismically Constrained + Well Control WINGMAN CHANNELS SUMMED: Seismically Constrained Areas Similar to Charo-Snatcher Approximately 316 hectares - Estimated 19.8 MMBO Recoverable Approximately 1480 hectares Scale = 1: m 13

14 RECENT DEVELOPMENTS NEW ACQUISITION OF PEL 570 NEAR TERRA NOVA S PEL 444 BLOCK SEVEN GROUP HOLDINGS BUYS 13.8% OF BEACH ENERGY LTD. NEW ACCESS GRANTED RECENT ACQUISITION to New Standard Energy in one of the few remaining substantial acreage positions within the Cooper Basin Media group Seven Group Holdings has began actively acquiring Australian-focused petroleum oil and gas companies PROSPECTIVE POTENTIAL 2,400 sq km block on trend of a proven, producing petroleum system and pipeline infrastructure On February 2, 2015, they secured a relevant interest of 13.79% in Beach Energy Limited (ASX: BPT), a major producer in the Cooper/Eromanga Basins PEL 111 PEL

15 12 months, Within you re not going to have the ability to find a deal, or find acreage, in the Cooper Basin. Kip Ferguson, CEO of Magnum Hunter Resources January 2014 INVESTMENT SUMMARY STRONG MANAGEMENT with expertise in natural resource exploration development and financing as seen with the recent success of Pacific LNG HIGH MARGIN CASH FLOWS generated in numerous recent western flank discoveries have had a return on investment of under one year UNDER EXPLORED SOUTH AUSTRALIA OIL AND GAS SALES flanks of the Cooper Basin are the prime focus of new oil and gas exploration RIGHT LOCATION Central to Australia s extensive pipeline infrastructure and in close proximity to Southeast Asian Markets Source: Government of South Australia 15

16 CORPORATE HEAD OFFICE Hornby St Vancouver, BC V6C 4B6 Canada INVESTOR RELATIONS Tel: TSX-V: TGC I OTCQX: TNVMF CORPORATE COUNCIL: Northwest Law Group AUDITORS: KPMG 16