For personal use only. An Emerging Oil & Gas Company

Transcription

1 An Emerging Oil & Gas Company

2 For personal use only Navaho Group Corporate / Project Structure Navaho Gold Ltd (ASX: NVG) 98.75% Gold Projects Coal Projects USA Argentina NavGas Pty Ltd Australia ATP1183 Roma o a Shelf S e Pirie Torrens Basin as Project oject Queensland South Australia

3 ATP1183 Roma Shelf Queensland Brief Synopsis

4 Roma Shelf Project Light Oil, Condensate & Gas HIGHLIGHTS 406km to Lytton Refinery. 28km from old Moonie pipeline. Serviced by gas lines. Oil trucks 210 BBL loads by road to Brisbane. Opex $12/BBL production, transport $10/BBL. Total ~$40 costs per bbl. Existing gas pipeline at Major. P10-P90 oil targets MMBBL GOIP. P10-P90 gas targets BCF GIP. 38% wildcat discovery rate. Drill 6 wells in 6 years.

5 Roma Shelf - NavGas ATP1183 in Major Company Territory

6 Roma Shelf A Strong Pedigree of Production Several targets identified to lie between 1400m and 1700m depth. Large untested leads exist in Jurassic and Triassic sand reservoirs, with up to 10MMBBL GOIP potential. Several key areas remain untested or inadequately tested. Broader Roma Shelf area well serviced by gas infrastructure and production facilities.

7 Roma Shelf Leads & Targets Identified via Desktop Study

8 Roma Shelf Migration Paths to Roma Shelf For personal use only

9 Roma Shelf Current Prospective Resource Assessment Prospective Resource if Oil Filled Lead P 10 Mid case P 90 Major East Ooline Riverslea West Martini Major West Major Southwest Totals (mmbo) Prospective Resource if Gas Filled BCF GIP Lead P 10 Mid case P 90 Major East Ooline Riverslea West Totals (BCF) The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.

10 Pierie Torrens Basin Project South Australia Brief Synopsis

11 Pirie Torrens Basin - Project Overview Six 100%-owned PEL applications in South Australia covering approximately 53,000km 2. Conventional and unconventional plays likely within the project area, including the historic Wilkatana Oilfield. Confirmation of hydrocarbons with methane flow in historic well. Independent assessment of Prospective Resources in the Tindelpina shale. Project Areas are well located to existing gas and power infrastructure.

12 70km 2 Historic Oilfield Identified at Wilkatana

13 Wilkatana A Brief History Striking physical similarities to the Shat al Arab in the Persian Gulf, oil seeps and reports of crude oil droplets in a 1934 waterbore at Wilkatana led to initial interest. By 1956 Santos had up to 6 rigs working at once at Wilkatana in what was thought to be the most prospective oilfield in Australia, leading to a run on Santos shares. Santos drilling found light honey coloured oils in Tertiary and some underlying Cambrian carbonates, heavy greenish-black oils and greases with interbedded rock salt and limestone, and oil bleeding from Cambrian limestone core, as well as oil in underlying Neoproterozoic shales and quartzite. About 80% of the oil is medium crude 26.8 API or higher, and 10% heavy crude (12 API). The Adelaide Advertiser, 1957 Santos was unable to put the field into production using the technology of the time. No further work has been undertaken for 50 years!

14 Wilkatana Seismic Planned to Identify Drill Targets

15 Wilkatana - Unbreached Reef & Diapir Leads Cambrian & Proterozoic Lower Cambrian Targets Neoproterozoic sediments Generation Neoproterozoic sediments

16 CAMB BRIAN For personal use only Wilkatana - Stacked Seal Reservoirs and Source Cambrian Reef Reservoirs Cambrian Rawnsley / Pound sands for Reserve Reef IC EROZOI PROTE Proterozoic Brighton limestone reservoir Proterozoic Tindelpina Shale Source TOCs to 4%

17 Similarities to the 1BnBBl Proterozoic Field in Siberia Talakan seismic (scales unknown) B12 = carbonate reservoir Updip Targets Wilkatana seismic (58km view) Oil Generation 08GA-01

18 For personal use only Wilkatana - Direct Hydrocarbon Indicators to the North Gas effect? Line 08DA-A1 contains a structure resembling a buried reef in probable Neoproterozoic limestone. The reef has a mound-like structure and apparent pull-up (DHI) beneath it. Underlying source rocks Neoproterozoic carbonaceous rocks of the Tapley Hill Fm and Tindelpina Black Shale. Shale Bright spot amplitude anomaly direct hydrocarbons indicator? Shallow (600m) drill target.

19 Pirie Torrens Basin - Tropical Reef Systems 500 to 1.2Bn Years Ago Correlation with Commercial Accumulations Huqf Supergroup 12BnBL Oil 6 TCF Gas Hassi Messaoud 25BnBL Oil Sichuan Basin - Tarim (28BnBL Oil, 300 TCF Gas) NavGas PELAs Talakan, Kovykta & OthersTotal Neoproterozoic Global correlations with Neoproterozoic shale sequences. Prolific hydrocarbon production from equivalent systems in Russia, Oman & China. Hydrocarbons sourced from very organic rich Late Proterozoic shales sediments and reservoired under younger salt. Potential for both conventional and : 13BnBL unconventional may have Oil 184 TCF Gas been underestimated. Neoproterozoic salt basin Cambrian salt basin

20 Pirie Torrens Basin - Significant Prospectivity for Shale Gas Based on exploration area totalling over 17,000 km 2. The target interval is interpreted to have a mean gross thickness of 100 meters, at depths between 500 and 4,000 meters below surface. Further drilling is warranted to assist with understanding di the Tindelpina i shale. DeGolyer and MacNaughton estimated the Prospective Resources in the Tindelpina shale as at 17 June 2013, as outlined in the table below: Low Estimate Best High (P 90 ) Estimate (P 50 ) Estimate (P 10 ) Tindelpina Shale TCF The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.

21 Pirie Torrens Basin Project and Investment Highlights Large acreage position in South Australia Acreage position covers approximately 53,000 km 2 (or 13 million acres). PELA s contain hundreds of kilometres of strike length of Tapley Hill Formation and the main target unit (Tindelpina Shale Member). Project areas have sparse population with low intensity land use. The need for new gas discoveries 85% of the 51,000PJ in Eastern Australia is CSG likely to go to LNG. Australian domestic Eastern seaboard gas shortages forecast. Demand in South Australia expected to continue to grow strongly. Higher gas costs = Higher power price. Strategic asset location ~150km closer to market than Cooper Basin = less transportation costs. Well positioned to power future demand in the Olympic Dam Region. Known presence of source rock and hydrocarbons Blinman-2 drilled in 1991 discovered gas in shales. New technology not available in 1991 (horizontal drilling and multi stage stimulation) allows for increase prospectivity in tight reservoirs. Independent prospective resource estimate over the project area. South Australian Government is highly supportive of development SA Government is supportive of unconventional gas led by the development of the Cooper Basin. South Australia has published the Roadmap for Unconventional Gas Projects in South Australia December 2012.

22 Pirie Torrens Basin - Future Gas Commercialisation Outlook Domestic Gas Contracts, Queensland, NSW, and SA Fields Large market for new discoveries i Contracted supply Consumption based on 3% growth Natural gas consumption has grown strongly in recent years, with average annual growth over the last five years of 3.1%. ABARE predicts that gas will be 35% Australia s primary energy needs by 2030.

23 NavGas Work Program and Budget Overview Work Program Pirie Torrens Basin, South Australia Following the grant of tenements, exploration will initially focus on the targets associated with the historic Wilkatana Oilfield. Seismic Survey Approx 500 line kilometres Drilling 2 1,000m per well Roma Shelf Queensland Exploration will initially focus on the large untested leads in the Jurassic and Triassic sand reservoirs. Stratigraphic pinch-out plays are also evident updip of existing third-party production fields within ATP1183. Drilling 3 2,500m per well

24 Company Contacts Nick Mather Chairman Neil Stuart - Director Karl Schlobohm Co. Sec. nmather@navahogold.com nstuart@navahogold.com kschlobohm@navahogold.com Ph: Ph: Ph: Brisbane Office: Level 27, 111 Eagle Street, Brisbane QLD Competent Persons Statement The independent assessment of Prospective Resources for the Tindalpina Shale in the Pirie Torrens Basin was conducted by DeGolyer and MacNaughton as at 17 June There has been no change to this assessment since its original publication by the Company on that date. DeGolyer and MacNaughton is qualified in accordance with the requirements of ASX Listing Rules. The range of prospective resource estimates for ATP1183 Roma Shelf was determined by Mr Peter Bubendorfer, Exploration Adviser to NavGas Pty Ltd, who is an AAPG member, qualified in accordance with the requirements of ASX Listing Rule 5.42, and who has consented to the use of the estimates in the form and context in which they appear in this presentation. These estimates were finalised on 3 February 2015.