For personal use only. Pan Pacific Petroleum NL Excellence in Oil and Gas Conference 12th March 2014

Transcription

1 Pan Pacific Petroleum NL Excellence in Oil and Gas Conference 12th March 2014

2 DISCLAIMER The information in this presentation is an overview and does not contain all information necessary for investment decisions. You should, before making any investment decision, conduct your own examinations of Pan Pacific Petroleum NL ( PPP ) and consult with your own legal, tax and/or financial advisers. The presentation may contain some references to forward looking statements that are subject to risk factors associated with the oil and gas business. Whilst PPP believes that expectations reflected in these statements are reasonable, they may be affected by a number of variables and changes in underlying assumptions which could cause the actual results to differ materially. For this reason PPP, its directors, officers, employees and agents do not give any assurance or guarantee that the events referred to in this presentation will actually occur. The reserves and resource information contained in this presentation is based on information compiled by Tom Prudence (Chief Executive Officer) and was current at the date of presentation. The Contingent Resource estimates for Pateke-4H and the 2P Reserves estimates for the Tui Area Fields were estimated using deterministic methodologies. The Prospective Resource estimates for the Oi exploration prospect were estimated using a probabilistic methodology. CRD well results have been fully reported in previous announcements. Mr Prudence has a BSc (Hons) in Geological Geophysics and an MSc in Petroleum Geology. He is also a Fellow of the Geological Society of London and a member of the Society of Petroleum Engineers. Mr Prudence has consented in writing to the inclusion of this information in the format and context in which it appears. Note: References to PPP are to be read as inclusive of the subsidiary companies within the consolidated PPP group.

3 Who we are Pan Pacific Petroleum NL is an ASX and NZX listed Oil and Gas Exploration & Production Company participating in non-operated ventures in New Zealand (including production from the Tui Area Oil Fields), Vietnam and the Joint Petroleum Development Area between Timor Leste and Australia (JPDA). Our strategy is to grow shareholder value through selective exploration and development acquisitions in proven hydrocarbon basins in the South East Asia and Australia-New Zealand regions and through maximising the potential of our existing assets.

4 PPP Permit Interests

5 Mid-year Highlights FY 2014 Increase in Tui equity and 5 well drilling programme starts PPP share of Tui production for 1H FY was 80,259 bbls with net 0.75 MMbbls (2P) developed reserves remaining (excluding fuel oil). PPP increased equity in PMP38158 to 15% effective 1st October 2013 through purchase of 5% equity from Mitsui E&P Australia Pty Limited for US$2.143 m Operating revenue of A$8.3 m with net cash from Tui operations of A$4.5 m after purchase costs, tax and royalty. Net overall operating loss for PPP after tax of A$12 m due to exploration expenses. Cash position ~ A$64.4 m equivalent and no debt, ~ 11 c/share. Drilling campaigns in Vietnam and New Zealand - Successful appraisal of CRD oil and gas field by CRD-3X and sidetrack in Vietnam - Exploration drilling in Vietnam Blocks 121 and 07/03, but without success - Pateke-4H appraisal/development well currently drilling in PMP38158, to be followed by Oi exploration well FY data as at 31 st December 2014

6 NEW ZEALAND Mount Taranaki

7 NEW ZEALAND offshore Taranaki Basin

8 Tui Area Fields PPP has 15% interest in the Tui Area Oil Fields comprising the Tui, Amokura and Pateke Fields (increase from10% to 15% effective 1 st Oct 2013). PMP (4H) The Tui 2P EUR from existing infrastructure is 41 MMbbls. Remaining 2P developed reserves at end 2014 which can be produced through the existing infrastructure were 0.75 MMbbls net to PPP, excluding MMbbls allocated for fuel oil. Pateke-4H will evaluate Pateke North, a northern lobe not penetrated by the existing Pateke-3H producer, which has the potential to develop an additional 2.5* MMbbls 2C. The well is currently drilling. This will be followed by the Oi-1 exploration well which will evaluate the Oi prospect with 15* MMbbls mean Prospective Resources. PPP has increased participation in Oi to 50%, but this may be reduced if partners AWE and NZOG elect to restore their PMP38158 equity by the payment of pro rata costs and a back-in premium. *PPP estimate of gross, unrisked Resources

9 Million Barrels/year* Tui Area Oil Fields Production PPP equity increased from 10% to 15% effective 1 st October Gross production for FY is forecast at 1.2 MMbbls, averaging 3,330 bbls/d. Production to end December 2013 was 650,985 bbls; PPP share 80,259. The Umuroa FPSO is contracted to end 2015, with options to guarantee availability of the FPSO until the end of *Financial year ending 30 June Produced Remaining (forecast subject to oil price)

10 A Depth, 5m contours Pateke North Tui Area Appraisal/Development Pateke North Pateke-4H horizontal well placement will be steered using PeriScope and Schlumberger s new DDR (Deep Directional Resistivity) Tool. Pateke North (4H) Gross Contingent Resource estimates are; 1C 1 MMbbls Pateke 1 km B 2C 2.5 MMbbls 3C 4 MMbbls If successful, production is planned for Q A B 100 m Pateke-4H Pateke-2 (projected) Pateke-3H F10 Sand PSDM 1000 m

11 Tui Area Exploration Oi Prospect Depth, 5m contours NW 2km Oi SE NW Oi Prospect SE F10 (Tui reservoir) draped over Basement. 3500m Possible strat-trap if F10 cut by Kahu Channel. Kahu Channel Gross, unrisked Prospective Resources Mean ~15 MMbbls, Best Estimate (P50) 13.5 MMbbls 4000m Basement Within tie-back distance to FPSO.

12 VIETNAM

13 VIETNAM PPP has a 5% interest in Block 07/03 in the southern Nam Con Son Basin and a 15% interest in Block 121 in the northern Phu Khanh Basin. PPP has recently drilled exploration wells in Blocks 121 and 07/03 and an appraisal well on the CRD discovery in Block 07/03.

14 Vietnam Block 121 Block 121 is in the relatively under-explored Phu Khanh Basin. The main objectives are Miocene-Oligocene clastics. Whale The Joint Venture drilled one well, 121-CV- 1X, in Q which evaluated the large Whale prospect. The well found the primary objective syn-rift sandstones to be water bearing. However, the presence of two thin sands bearing thermogenic gas in the shallower Miocene interval proved an active petroleum system and is encouraging. The results of the well are being integrated with the existing data as exploration continues on the block. 2D seismic acquisition is planned for 2014 over the eastern, deeper water part of Block 121 which currently has only limited seismic coverage.

15 Vietnam Block 07/03 Dua Block 12 W Chim Sao Lan Tay/Lan Do Block 06-1 Block 06/94 CRD Block 07/03 is adjacent to Block 12W which contains the Chim Sao (50 MMBoe) and Dua Oil Fields, and the Lan Tay and Lan Do Gas Fields (2 Tcf) in Block 06-1 to the north. The CRD-1X well drilled in June 2009 discovered oil and gas pay within multiple reservoir layers and was successfully appraised by CRD-2X and ST in 2011, and CRD-3X and ST in Studies are ongoing to determine the feasibility of a commercial development of CRD (Cá Rồng Đỏ).

16 Block 07/03 Prospectivity The Silver Sillago prospect, a tilted fault trap similar to the Cá Rồng Đỏ (CRD) structure, was evaluated by CD-1X, the final PSC commitment exploration well, which spudded end January The well reached a total measured depth of 3537m on 1st March and encountered sandstones in the main Miocene clastics objective sequence as prognosed, but disappointingly no hydrocarbons were present. Preparations are now ongoing to plug and abandoned the well as planned.

17 The CRD (Cá Rồng Đỏ) Oil and Gas/condensate discovery in Miocene and Oligocene sandstones CRD-1X, 2X&ST, 3X&ST The CRD Miocene interval has now been evaluated by five wells: CRD-1X, 2X&ST, and recently 3X&ST drilled in Q CRD-3X&ST confirmed the presence of hydrocarbons in the main Miocene sandstone reservoirs and demonstrated attractive test rates from three previously untested reservoirs which in aggregate flowed in excess of 8000 bopd with some gas, but no water. PPP considers the appraisal results encouraging and studies are ongoing to determine whether the field can be commercially developed. NW CRD-1X CRD-2X Miocene SE Assessment of resources is planned for completion by end Q1 2014, and a review of development concepts/facilities, including costing and economic analysis, is due for completion around end Q Anomalies associated with Gas Cau sequence Subject to results and the requisite approvals, a decision will then be made whether to progress into the front end engineering detailed design phase (FEED).

18 Pan Pacific Petroleum Summary Key Strengths Strong cash position, with no debt Continued income from production of Tui reserves Making the most of what we have High potential exploration and appraisal/development drilling in New Zealand Progressing CRD development studies Pursuing moderate risk, high potential new ventures Short term production to replace Tui Balanced exploration portfolio in proven basins Australia-New Zealand and South East Asia regional focus

19 Pan Pacific Petroleum NL Excellence in Oil and Gas Conference 12th March 2014 www. panpacpetroleum.com.au