3D Oil Limited Annual General Meeting 26 November 2009 Stamford Plaza Collins Street Melbourne
Presentation Disclaimer Important Notice This presentation contains certain statements which may constitute "forward-looking statements". Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance or achievements to differ materially from those expressed, implied or projected in any forward-looking statements. No representation or warranty, express or implied, is made by 3D Oil that the material contained in this presentation will be achieved or prove to be correct. Except for statutory liability which cannot be excluded, each of 3D Oil, its officers, employees and advisers expressly disclaims any responsibility for the accuracy or completeness of the material contained in this presentation and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission there from. 3D Oil accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in this presentation or any other information made available to a person nor any obligation to furnish the person with any further information.
Why 3D Oil is a great investment 3D Oil will develop West Seahorse in the short term The reserves and contingent resources of West Seahorse have been recently increased The satellite feature, Hippo, and the neighbouring Sea Lion Prospect have the potential to add significant value to the development 3D Oil implemented an Accelerated Growth Strategy to attract a joint venture partner and optimise the exploitation of the company s assets The Felix structure is arguably the best oil prospect currently in Australia The company has a suite of high quality prospects and leads in a petroliferous province to provide exciting growth potential
The 3D Oil Story Summary Listed 22 May 2007 206.6 mill shares on issue $57 mill market cap Approx $9.4 mill in cash No debt Key Strengths Growing asset base 2P reserves P50 contingent resource Prospective resources 5.3 MMbbl 3.4 MMbbl > 100 MMbbl Focused on delivering growth in the next two years Implemented Accelerated Growth Strategy High impact, low-moderate risk exploration Innovative development
120 100 80 Oil Price ($) 60 40 20 0 23/11/2009 29/04/2009 28/05/2009 25/06/2009 23/07/2009 21/08/2009 18/09/2009 19/10/2009 TDO and Oil Price Summary 0.35 Oil Price US $ Oil Price A$ 0.3 TDO Share Price 0.25 0.2 0.15 0.1 0.05 0 Tapis Price previous 12 months Accelerated Growth Strategy announced Share Price (A$) 1/12/2008 2/01/2009 3/02/2009 3/03/2009 31/03/2009
TDO and ASX 200 Energy Index Summary Strong comparative performance from 3D Oil relative to other energy stocks 300% 3D Oil Performance versus ASX 200 Energy 250% 200% 150% 100% 50% 0% 1/12/2008 1/02/2009 1/04/2009 1/06/2009 1/08/2009 1/10/2009-50% 3D Oil ASX 200 Energy
Assets and Potential Vic/P57 100% West Seahorse 8.7MMstb (2P+2C) with potential satellite feature Completed comprehensive assessment of infra-structure options Sea Lion oil prospect ready to drill and potentially tie in Felix high impact potential 9 quality prospects and leads T41-P 100% New seismic indicates structured and prospective Also confirmed seismic anomaly over the Dalrymple lead At least 15 leads identified to date Prospect defining 3D to be shot early 2010 Near Near term term development with with > 100 100 MMbbl MMbbl growth growth potential
Accelerated Growth Strategy Accelerated Growth Strategy - 3 Stage Process Optimisation of West Seahorse Development Comprehensive prospectivity analysis for T41-P and Vic/P57 Partnering strategy
Reserves and Resources West Seahorse 32% increase 1P 32% increase 4.1 Reserves and Contingent Resources (MMstb) 14% increase 5.3 12% increase 6.8 11% increase 8.7 Extensive subsurface study of West Seahorse has been undertaken incorporating newly acquired well data from the West Seahorse-3 well (including oil and reservoir samples), 3D seismic mapping, HDVA depth conversion, detailed petrophysics, detailed production simulation and production calibration to the neighbouring Seahorse field 1P Proved Reserves 2P Proved + Probable 3P Proved + Probable + Possible Previous - August 2008 Upgrade - March 2009 1P Proved 2P Probable 2P + Contingent (P50) 3P Possible N1 and N2.6 4.1 5.3 6.8 Contingent Resources Low Estimate (P90) MMstb Best Estimate (P50) MMstb High Estimate (P10) MMstb P1 and NE Fault Block 2.8 3.4 4.0 Total Reserves plus Contingent Resource 6.9 8.7 10.8
Seahorse and West Seahorse Comparison Fields very similar Areal size similar Both have oil in N1 and N2.6 reservoirs OWCs almost identical Seahorse has been on production for almost 18 years Vic/P57 Same oils West Seahorse Seahorse N1 N2.6 P1
Near-Field Potential: Hippo Structural high west of West Seahorse West Seahorse-1 Same oil zones predicted Hippo A total of 1.5 MB recoverable (P50 Prospective Resource) Potential tie-back to the main field. N1 Hippo B West Seahorse N2.6 P1
Optimising West Seahorse Development Development options for West Seahorse were historically impacted by the global financial crisis and low oil prices. During this time 3D Oil continued engineering studies on low CAPEX options including: Mobile Offshore Production Unit (MOPU) with oil exported to shore, Floating Production Storage and Offloading facility (FPSO), Sub-sea tie-back to third party facilities, Well head platform to an onshore stabilisation and processing plant, 3D Oil is continuing with 2 development options in parallel. These are: 1. MOPU with oil exported to shore 2. Sub--sea development tie-back with third party access to offshore production facilities
Offshore Production Unit (MOPU) Overview (Option1) A Mobile Offshore Production Unit (MOPU) is a converted jack-up drill rig with oil production capabilities on the main deck Santos Maleo MOPU - Indonesia Advantages of a MOPU development are: Fast development time. Recent MOPUs have been installed within 12 months from contract award They can be leased. This reduces the upfront capital costs required for the project They can be relocated, making them suitable for fields with a short production life Can be used to support the well conductor, eliminating the need for a Well Head Platform (WHP) and also providing access to the well
Sub-Sea Development Overview (Option 2) West Seahorse-3 to be recompleted as a subsea well and produced to the Barracouta (BTA) platform. Sub-Sea Sea Field Layout Key components of the option are: West Seahorse-3 recompleted as a sub-sea well. Offshore pipelines (production and gas lift) from West Seahorse-3 (WSH) location to BTA (approx 10 km) 8 Production pipeline 2 ½ gas lift pipeline Sub-sea tie-ins at BTA to connect the West Seahorse production and gas lift pipelines to the existing TWN production and gas lift pipelines. A control umbilical would be run from WSH to BTA. At BTA this would be brought onto the platform to a new Hydraulic Power Unit (HPU) to operate the WSH well.
Accelerated Growth Strategy Accelerated Growth Strategy - 3 Stage Process Optimisation of West Seahorse Development Comprehensive prospectivity analysis for T41-P and Vic/P57 Partnering strategy
Growth Potential Current activities and immediate plans VIC/P57 Vic/P57 Full prospectivity review undertaken and continuing Attract leveraged partner to share forward risk New work on the Felix Prospect is very exciting Sea Lion has real potential to add significant value to West Seahorse development 100 km T41-P T41/P Completed acquisition of 2200km 2D seismic under budget Mapping indicates at least 16 leads Significant seismic anomalies on at least two leads similar to Yolla
Why Bass Strait? 10,000 1,000 Deep Water Preferred Quadrant Well cost - low Well cost - medium Well cost - high Field size (boe) 100 10 1 Canning Browse Timor Sea Bonaparte Perth Amadeus Surat/Bowen Bass (T/41P) Eromanga Carnarvon Large Company Materiality Threshold Gippsland (Vic/P57) Cooper Barrow 0 0 10 20 30 40 50 Chance of Success (%)
A large prospect portfolio Lower Felix Sealion Vic/P57 T/41P Scooter More likely oil More likely gas Risk Profile Felix Deep Salsa Kangafish Nicholson Dalrymple Dexter Lucifer Glengarry Tamar Pembroke Higher Hector Humbug Tolpuddle
Gippsland; a prolific basin A great address Historically Gippsland has highest exploration success rate in Australia. Vic/P57 has been very lightly explored Adjacent to numerous oil and gas fields
Exploration Vic/P57 At least eight prospects and leads defined by 3D seismic A B A B Sealion Prospect West Seahorse Seahorse Wirrah Felix Prospect Moonfish Oil & Gas Oil
Felix Prospect Felix Prospect > 100 MMBbls Potential The Felix prospect is located within VIC/P57 on the prolific Rosedale Fault oil trend, 7km from the producing Moonfish Oil Field Recent detailed mapping and an improved geological model have resulted in an upgrade to the estimated oil resource Work now indicates a resource base of up to 100 MMBbls at the low-medium risk upper Latrobe levels The same reservoir units are oil-bearing at the adjacent producing Moonfish Field VIC/P57 Felix Potential Low Risk Upper Latrobe Group Volumes Mean OIIP (MMbbls) 131 Recoverable Oil 65 P90 P50 P10 43 105 249 22 53 124
Sealion Lion Prospect West Seahorse look-a-like 7 km from West Seahorse along Rosedale Fault Develop as a stand-alone or tied back to West Seahorse. Sea Lion West Seahorse-1 N2.6 Independent Expert s Assessment
Potential significant gas trend KangaFish Lead Salsa Lead Dexter Lead Lucifer Lead Wirrah Emperor Sweetlips Sperm Whale Longtom Sunfish Patricia Tuna Lucifer A newly recognised Longtom play Gas play trend which includes Lucifer, Dexter and Kangafish On trend with newly developed Longtom field Lucifer Similar geology, geometry and source kitchen Longtom
Exploration T41/P, Tasmania Bass Basin an exciting emerging petroleum province Shallow water (<80m) Shallow drilling targets Very lightly explored and large (2700 km 2 ) The key ingredients for an active petroleum system Aggressive bids and farmins in previous 2 years with the entire basin under license A number of wells to be drilled in the next few months Approximately Approximately 50km 50km to to Yolla Yolla Platform Platform
T41/P; all the right ingredients New seismic has uncovered many new leads 15 leads currently identified from newly acquired 2200 km of seismic T/41P Seismic anomalies often indicative of hydrocarbons are associated with some leads Dalrymple anomaly on a number lines Dalrymple Iron Pot Pembroke Lubiana T.DEMONS BLUFF SHALE TEV SAND TEV COALS IEV COAL Top Eastern View Depth Dalrymple Leads Crosswinds Top Eastern View Intra Eastern View IEV UNC. Dalrymple 10 km T.PALEOCENE
Accelerated Growth Strategy Accelerated Growth Strategy - 3 Stage Process Optimisation of West Seahorse Development Comprehensive prospectivity analysis for T41-P and Vic/P57 Partnering strategy
Partnering Strategy Partnering Strategy Process A structured process has been initiated to select exploration and development partners Core Energy Group have been appointed as advisors Target finalisation by end of December
Value Potential Vic/P57 NPV A$ Felix Exploration Potential 53MMBbls 1 @ A$10 2 net back per Bbl 550 500 450 400 Vic/P57 Development and Tie In Potential West Seahorse 2P + Sea Lion @ US$100/bbl Key Assumptions: 1. Exploration value assumes a A$10 2 net back per barrel and 53MMBbl 1. NPV A$ M NPV A$ M 350 300 250 200 150 100 West Seahorse 2P @ US$100/bbl West Seahorse 2P @ US$80/bbl West Seahorse 2P + Sea Lion @ US$80/bbl 2. MOPU development 3. 80 cents US exchange rate 4. $40 Mill RRT credits uplifted to first oil 5. 10% nominal discount rate 50 6. 3D Oil @ 100% - West SH 2P US$80/bbl West SH 2P US$100/bbl + Sealion US$80/bbl + Sealion US$100/bbl 7. Sea Lion commercial discovery Total Value Potential > $600 Million 1 P50 resources 2 Low case estimate
3D Oil Limited Accelerated Growth Strategy Transitioning from evaluation to implementation Annual General Meeting 26 November 2009 Stamford Plaza Collins Street Melbourne