3D Oil. Investor Update July Noel Newell

Transcription

1 3D Oil Investor Update July 2008 Noel Newell

2 Presentation disclaimer Important notice This presentation contains certain statements which may constitute te "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 t for statutory liability which cannot be excluded, each of 3D Oil, its officers, employees and advisers s 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 w any further information.

3 Agenda Corporate Summary Drilling Results West Seahorse; the way forward Exploration

4 Corporate Summary 3D Oil listed on the ASX on 22 May m shares on issue 19.1m unlisted options (exp. Jan 50c & 60c) Diluted market capitalisation - $54m (at 26cps) Current 3D Oil shareholding Retail 25% Institutions 37% Foundation (escrowed to May 09) 38% Cash ~$8 m (as at 30 June 08)

5 Corporate Summary Drilling Results West Seahorse; the way forward Exploration

6 Drilling Summary N1 (Top porosity) Depth Pre Drill Pre drill maps on West Seahorse and Wardie very exciting Two depth conversion methods (Stacking and Well velocity) gave conflicting results Stacking Velocity method (3D Oil version) has historically worked very well in the Gippsland Basin

7 Drilling Summary Wardie All levels 14m deep Wardie-1 WSH-2 WSH-3WSH-1 N1 1562m (1401mss) Drilling Objectives ToL N1 N2.3 N2.6 P1 N m (1473mss) -7 N m (1499mss) -10 P1 1697m (1534.5mss) -12 N1 DST 1800 b/d N2.6 Oil sample Appraise the West Seahorse Field. Confirm OWCs in N1, N2.6 and P1 reservoirs Production test at least one zone Evaluate all levels at Wardie.

8 Drilling Summary West Seahorse - 3 Summary N1 reservoir encountered close to prognosis. A gross oilbearing interval of 18 m was present. A 9m oil column was present in the high-quality N1 channel sandstones. OWC deeper than the lowest oil from WSH-1 but was shallower than expected. Reservoir quality was excellent as expected. N1upper N1 All other targets encountered low to prognosis and outside closure (so water-bearing) mss 1409 mss 1410 mss The well has been suspended as a future producer and can be sidetracked.

9 Drilling Summary Wardie - 1 Summary All targets intersected 14m low to prognosis using stacking velocity method. Oil was present over approximately 20 m in a low net reservoir section above the N1 target. Although oil was sampled and there is some good quality reservoir present, this section is currently interpreted not commercially producible. Oil sample 15 md/cp Oil sample 234 md/cp All other levels were water-bearing. The well has been plugged and abandoned. The difference in well velocities from WSH-1, 2 & 3 is 2m/s except for Wardie, which is faster. This appears to validate the well velocity model. N0 N1 Oil sample 572 md/cp

10 Drilling Summary B West Seahorse-2 Wardie-1 West Seahorse-3 West Seahorse-1 A 500m Oil sample 15 md/cp Oil sample 234 md/cp N1 upper DST 1800 BOPD N1 Oil Oil samples Oil sample? Oil sample 572 md/cp Water up to????

11 Drilling Summary NE N1 & N2.6 contingent resources P1 & N1upper - contingent resources N1 Depth Post Drill NW Future Potential. No reserves assessed West Seahorse N1 & N2.6 proven reserves P1 & N1upper almost Wardie No reserves assessed

12 Drilling Summary Drilling Wrap up Results ultimately below pre drill expectations Well velocity depth conversion method appears more reliable in West Seahorse vicinity N1 oil and reservoir quality confirmed West Seahorse-3 suspended to enable re-entry, production and sidetrack Wardie-1 intersected 20m significant oil shows in poor reservoir quality Wardie-1 West Seahorse-3

13 Corporate Summary Drilling Results West Seahorse; the way forward Exploration

14 West Seahorse; the way forward Close to shore and pre-existing offshore facilities Shallow water Shallow oil accumulations with strong water drive Neighbouring Seahorse Field provides good analogue Well suspended to use as a producer

15 West Seahorse; the way forward Offshore Development Options 1. Esso Offshore Facility Tie Back 2. Innovative Stand alone option currently reviewing

16 West Seahorse; the way forward Offshore Development Tie-in Option Utilises existing Esso infrastructure Variety of options however a tie to Barracouta the most feasible Minimizes regulatory approvals timeframe Brownfield oil & gas area Possible utilization of Esso bases (boat/helicopter) x Possible high-hurdles (technical & commercial) with Esso

17 West Seahorse; the way forward Pre FEED Development Costs (Worley) Tie-in options

18 West Seahorse; the way forward Current activities and immediate plans Internal review of West Seahorse volumes West Seahorse-1 West Seahorse-3 Complete reservoir engineering with highly experienced engineer (Andrew Wadsley) Continue discussions with Esso with view to sign a MOU West Seahorse-2 Wardie-1 Undertake tie-in FEED in the event ESSO give green light Progress other stand alone option immediately

19 Corporate Summary Drilling Results West Seahorse; the way forward Exploration

20 Exploration Current activities and immediate plans VIC/P57 Vic/P57 Full prospectivity review underway Attract leveraged partner to share forward risk 100 km T41-P T41/P Recently completed acquisition of 2200km 2D seismic under budget Seismic processing near completion Will shortly undertake full permit evaluation with view to attract partner to drill exploration well

21 Exploration Vic/P57 Prospects and Leads Nicholson Top Latrobe Salsa Lead ~20 mm OIP Top Latrobe Dexter ~44 mm OIP Intra Latrobe Sea Lion 20 mm rec Top Latrobe Wardie Scooter ~7mm OIP Top Latrobe Updip from oil fields Felix ~30 mm OIP Top and intra Latrobe Between Wirrah and Moonfish New detailed mapping of prospects underway

22 Exploration Sea Lion Inversion feature identical and on trend with West Seahorse Covered by 3D seismic Located between the shore and West Seahorse Sea Lion West Seahorse-1 Prospective Resources Low Case Mid Case High Case Sea Lion Independent expert s (RPS) mapping for IPO

23 Exploration Felix Inversion structure on the basinward of the Rosedale Fault Moonfish On trend with the Moonfish and Wirrah structures. Felix The neighbouring Moonfish Field intersect 5 hydrocarbon zones, 3 oil, and is currently on production through the Snapper facilities Snapper Wirrah Whiting

24 Exploration Scooter Scooter An erosional feature created by the Marlin Channel at the top Latrobe. The closure is updip of the Emperor and Sweetlips discoveries both of which have oil legs in the top Latrobe and close to spill Potential for base seal to increase size by the top Paleocene shale which base seals in Sweetlips and provides an intra Latrobe top seal in Emperor Dexter Kipper style downside closure along the basinward side of the Emperor Fault Dexter Closure is mapped in depth through the basal Latrobe and the Golden Beach with associated amplitude anomalies Current depth conversion indicates approximately 60m of vertical closure and covers an area of 2.6 sq km

25 Exploration Salsa Large top Latrobe structure located on the edge of the 3D data Inversion feature along the northern edge of the Rosedale Fault system Currently mapped with an areal closure of 5.6 sq km Hector An erosional remnant created by the Eocene channelling. The remnants are quite conspicuous due the high amplitudes, created by the coals in the Latrobe Group, truncated by the Marlin Channel Hector as an area of approximately 5 km2.

26 Exploration, T41-P P Bass Basin Relatively shallow water (<80m) Shallow drilling targets Yolla Field Lightly explored and large (2700 km2) The key ingredients for an active petroleum system Aggressive bids and farmins in nearby permits in 2007

27 Exploration T41-P Bass Basin At least 4 leads identified from 2D seismic Dalrymple has significant seismic anomaly Two wells being drilled close by in the coming months with same target (Pee Jay and Spikey Beach) Iron Pot Lubiana T41/P Basin Margin Crosswinds Dalrymple 10 km T41-P VIC/P57 Amplitude dim at crest - HC in hard sand Fault does not breach the seal Amplitude brightening 100 km

28 Exploration 2006 Recent Bass Basin Activity Tap (Op) Two wells (yr 2&3) Rawson (Op) 3D and two wells (yr 2&3) Cue & Exoil (Op) 300 sq km 3D seismic 2005 Bass Strait (100% & Op) 2D, 3D and one well Origin (Op) 2D, 3D and one well Origin (Op), AWE, Cal Energy & Wandoo Petroleum Mitsui Trefoil & White Ibis gas discoveries. Cue & Exoil (Op) 200 sq km 3D seismic Beach farm-in to drill Spikey Beach-1 at 80% equity deal is for SW half of permit only. Benaris (100% & Op) 1001 km 2D seismic Beach farm-in to drill Peejay-1 at 50% equity. Bass Strait (100% & Op) 2D, 3D and one well 13 Wells in next 3 years

29 3D Oil Investor Update Summary West Seahorse-3 well suspended as a future producer Internal review of West Seahorse volumes nearly complete N1 reservoir quality is excellent and oil quality confirmed Undertake a FEED study for commercial production from West Seahorse via a tie in to ESSO facilities or for a stand alone option Leverage from active farm out campaign for VIC/P57 and T41-P