Investor Presentation November 2016 ASX: OXX 1
Disclaimer This presentation may contain forward looking statements, not based on historical fact, that are subject to risk factors associated with oil and gas businesses. While it is believed the expectations reflected in these statements are reasonable, they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially. Octanex makes no representation, warranty (express or implied) or assurance as to the completeness or accuracy of any projections and, accordingly, expresses no opinion or any other form of assurance regarding them. Octanex does not intend to publish updates or revisions of any forward looking statements included in this document to reflect the circumstances of Octanex NL after the date of this presentation or to reflect subsequent market analysis The views expressed within this document are solely those of Octanex and do not necessarily reflect the opinions of its joint venture participants. Investors should undertake their own analysis and obtain independent advice before investing in Octanex securities. All references to dollars, cents or $ in this presentation are to Australian currency, unless otherwise stated. Qualified petroleum reserves and resources evaluator This presentation contains information on petroleum resources which is based on and fairly represents information and supporting documentation compiled by Mr Tim Morison, a director and principal technician of Abraxas Petroleum Pty Ltd, which provides consultancy services to Octanex. Mr Morison holds a Bachelor of Science, and is a member of the American Association of Petroleum Geologists, Formation Evaluation Society of Australia (ex President), Petroleum Exploration Society of Great Britain (PESGB) and European Association of Geoscientists and Engineers (EAGE) and is qualified in accordance with ASX listing rule 5.41 and has consented to the inclusion of this information in the form and context in which it appears. 2
Octanex Octanex is seeking to increase its exposure to production & development Octanex s portfolio includes interests in the Ophir oil development, 2 appraisal assets and 5 exploration permits. Shares on issue (assuming partly paid shares are consolidated into fully paid shares at AGM) 273m Share price $0.045 Market capitalisation Convertible note facility (undrawn) Cash (end Sept 2016) A$12m US$12m A$2.6m 60 50 40 30 20 10 0 Octanex share price performance since 1 Jan 2016 0.047 0.043 0.038 0.033 0.029 01-Jan-16 21-Jan-16 10-Feb-16 01-Mar-16 21-Mar-16 10-Apr-16 30-Apr-16 20-May-16 09-Jun-16 29-Jun-16 19-Jul-16 08-Aug-16 28-Aug-16 17-Sep-16 07-Oct-16 27-Oct-16 3
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Experienced Board Geoff Albers Executive Chairman Rae Clark Executive Director Tino Guglielmo Non-Executive Director James Willis Non-Executive Director Suhnylla Kler Non-Executive Director Kevin How Kow Non-Executive Director David Coombes Non-Executive Director 35+ years experience & track record of developing significant oil & gas assets. Exploration activities led to Yolla gas/condensate, Evans Shoal gas and Maari oil discoveries. Upstream oil & gas commercial specialist; managerial, business development, financial modelling experience. Commenced career with Deloitte, working in upstream petroleum industry since 2005. Petroleum engineer, 30+ years technical, managerial & senior executive experience including Stuart Petroleum, Ambassador Oil & Gas, Santos, Delhi Petroleum, Schlumberger Corp. Wide petroleum exploration industry experience. Previously director of MEO & Southern Petroleum NL. Partner at NZ legal firm Bell Gully for 25 years with upstream oil & gas practice specialty. Financial services expertise including asset and portfolio management and growth. Director & CEO of Sabah Development Bank Asset Management and Director of M3Energy Berhad Former EY Malaysia partner, Director of Sabah Development Bank & M3Energy Berhad, extensive Malaysian corporate experience Broad experience as a tax and corporate lawyer across numerous industry clients. Experienced independent director. 6
Development: Ophir Oil Field Transformative development asset Production next year Fully funded 75% project finance (banking consortium) US$17M (Sabah International Petroleum placement/facility) Economic at today s oil prices Significant cost savings locked in 7
Ophir Small Field Risk Service Contract (SFRSC) Overview Block: PM315 230 km offshore East Coast Malaysia. 73m water depth. SFRSC Effective Date: 11th June 2014 Revised FDP Effective Date: 25th August 2015 TermofContract:7yearsfromtheSFRSCEffectiveDate FirstOil:2H2017 Development CAPEX: USD90m KPIs: Capital Costs (Development CAPEX) Production Performance/Targets OPSB Shareholders : Octanex (50%) Scomi(30%) Vestigo (20%)
FACILITIES OVERVIEW Floating Production Storage & Offloading Vessel (FPSO) Converted Oil storage tanker, capable of storing up to 350k barrels of crude Small process facility module built separate and install on topdeck Moored permanently to the seabed on location True North Wellhead Platform (WHP) 4 well slots, plan to drill 3 wells Solar powered Unmanned & Remote operated from FPSO PIPELINE Approximately 350m distance between WHP and FPSO Flexible 8 flowline
Executive Summary & Milestones No Reportable Incidents or Accidents to date First Oil target second half 2017 Costs below budget Government approvals on track Wellhead platform contract awarded, onshore fabrication now ~95% complete Drilling contract awarded November Well design complete Event Fcast/Act ual Effective Date 25/8/15 Award WHP 9/11/15 Commence WHP Construction 15/2/16 Install WHP (Ready for Rig) Q2 2017 Commence Drilling Q2 2017 Install& HUC FPSO (RFSU) 2H 2017 First Oil 2H 2017
Platform: Topsides ~100m Tall 1523 MT 320MT topsides 1203 MT jacket 4 Well Slots (3 used + 1 spare) Production and Test Manifold Wellhead Control Panel Solar Panel + UPS 5 MT Crane
Platform: Jacket For personal use only
For personal use only Production Drilling Naga 2 rig
Final Well Basis of Design Highlights Maximum Reserves Through Subsurface Risk Mitigation & Drilling Cost Optimization A2 A1 A3
Project economics improved by reduced CAPEX CAPEX US$ Million Original RSC 2014 135 Revised Field Development Plan 90 Target 75 15
Pre-development: Cornea & Ascalon Contingent Gas Resources tcf P90 P50 P10 Octanex 100% interest 1.04 3.01 8.74 16
Pre-development projects Greater Cornea Fields Held via Retention Licence Commerciality dependent on oil price Ascalon Retention Licence sought Commerciality dependent on gas prices and market access 17
Exploration: Carnarvon Basin WA-323-P & WA-330-P (25% interest) - Free carried by Santos as Operator - Gas with condensate discovery at Winchester-1/ST1 2013 WA-362-P & WA-363-P (33.33% interest) - Free carried by Eni as Operator WA-387-P (100% interest) - Area of renewed exploration interest from majors (Statoil in WA-506-P, Shell in WA-386-P, BP in WA-525-P) 18
New Ventures New venture opportunities Opportunities must be: Value accretive Synergetic with corporate strategy (production/near-production), experience and portfolio 19