INVESTOR PRESENTATION UPDATE MAY 2008

Transcription

1 LEVEL 1, 47 COLIN STREET WEST PERTH WA 6005 AUSTRALIA PO BOX 1783 WEST PERTH WA 6872 TEL FAX info@tapoil.com.au 09 May 2008 The Company Announcements Platform Australian Stock Exchange Exchange Centre 20 Bond Street SYDNEY NSW 2000 INVESTOR PRESENTATION UPDATE MAY 2008 Please find attached a copy of a presentation providing investors and analysts with an update on Tap Oil Limited s activities. A copy of this presentation is available at the ASX and can be viewed on the Company s website under the heading Investor Centre. Enquiries to: Peter Stickland (CEO) info@tapoil.com.au

2 Tap Oil Limited Macquarie Capital Securities Australian Conference May This presentation contains some references to forward looking assumptions, representations, estimates budgets and outcomes. These are uncertain by the nature of the business and no assurance can be given by Tap Oil Limited that its expectations, estimates, budgets and forecast outcomes will be achieved. Actual results may vary materially from those expressed herein. 1

3 The Tap Oil Story Tap Oil is an ASX listed Oil and Gas E&P Company with established production and a pipeline of exciting exploration opportunities in Australasia Key Strengths Established Asset base with: Developed Reserves - Additional contracted gas - Contingent resources - 6.5mmboe 5.9mmboe 26.7mmboe Strong financial position ~A$85 million cash, no debt ~A$50 million cash flow from operations Focused on delivering growth Over last 2 years implemented largest portfolio change in company s history High impact, low-moderate risk exploration Acquisition of value adding assets 9/5/

4 The Tap Oil Strategy for Growth Res Tap s value proposition: Grow asset value per share by discovery and addition of reserves and resources To do this Tap Oil has combined the following key elements: Right people: Board / Leadership / Staff Right focus: Low-moderate risk, high impact exploration opportunities Right areas: Proven basins which yield moderate risk, high impact opportunities Right approach: Technical rigour Financial Strength: ~$85 million at bank, no debt Leverage: Only 156 million shares on issue 9/5/

5 Tap has a Portfolio of Quality Exploration & Appraisal Opportunities Maitland Approximate Value Potential Value Accretive Low Chance of Success High Woollybutt South Appraisal Brunei - Belait HJV oil exploration Marley SC-41 Brunei - Block M T47/P Substantial Value Add Transformational WA-351-P Raised the bar for risk cut off Time to Production 9/5/

6 Tap 2008 Drilling Programme Tap will spend ~A$60 million in 2008 pursuing a portfolio of moderate risk, high impact opportunities Location Tap Equity (%) Carnarvon Basin 12.22% HJV Carnarvon Basin WA-358-P 12.5% Philippines SC-41 50% 2008 Q1 Q2 Q3 Q4 Simpson-9 Marley-2 Lee-4 Simpson-10 Johnson-1 Prospect-1 Carnarvon Basin Maitland Area 22% Brunei Block M 39% Philippines SC-41 Rig secured Prospect-2 Maitland-4 Maitland-5 Prospect-1 Prospect-2 9/5/

7 Tap Oil: Multi-pronged strategy for growth Brunei Block M Oil & Gas Redevelopment & Exploration Drilling & seismic late 2008 Philippines SC-41 High impact Oil Exploration Drilling mid 2008 Company changing event WA Oil Existing production exposure to oil price. Production rates at Woollybutt to increase in mid 2008 Simpson 9 & 10 drilling soon WA Gas Successfully producing and marketing gas Maitland appraisal Near field Marley-2 WA-351-P - LNG potential Bass Basin T/47P Oil focussed Exploration 3D seismic acquired Drilling early /5/

8 Tap Producing Assets: Exposure to Record Oil Prices Woollybutt Joint Venture (Tap 15%) Northern Lobe production potential >5,000 bopd Southern Lobe expected to commence mid June. Installation vessel delayed on previous contract Total field production potential after South Lobe production >12,000 bopd Harriet Joint Venture (Tap 12.22%) Production Oil ~7,000 bopd Gas 115 TJ/d Simpson 9 & 10 stepout wells commencing in June. If successful add immediate production of >4,000 bopd Lee-4 development well scheduled for July to add diversity of gas deliverability Produced ~29 MMbbls Ultimate Reserves ~40 MMbbls 9/5/

9 Western Australia Gas Strategy WA Gas prices increased 3 fold to >A$7.50/GJ Tap well positioned along value chain Green field Gas Exploration Near field Gas Exploration Gas Appraisal Production & Marketing WA-351-P Marley-2 drilling now 1 Tcf gas potential Tap 12.22% Under existing infrastructure Maitland gas field appraisal Gas reserves Gas under contract Recent gas sales contracts 9/5/

10 Additional Revenue Stream Gas Contracts Revenue (A$,000) Estimated Gas Sales 35,000 30,000 25,000 20,000 15,000 10,000 5, A 2007 A 2008 F 2009 F 2010 F 2011 F 2012 F 33PJ of gas from John Brooks Joint Venture secured in 2005 Now contracted with ~A$250 million in forecast revenues Deliveries commenced late September 2007 Step change in gas sales revenues out to /5/

11 Maitland Gas Field - Appraisal Program (Tap 22.47%) John Brookes Maitland ~40km Varanus Island East Spar Gas Pipeline Oil Pipeline Sales Gas Pipelines Western Australia Maitland-3H Well Test Flaring 40km from Varanus Island gas processing facility Appraisal program commenced late 2007 Maitland-3H flow tested at surface constrained rate of ~6 MMscf/d Well test, core and petrophysical analysis indicate complex reservoir Further appraisal drilling and flow testing being considered for optimal development Contingent Gas Resource of between 160 and 280 PJ 9/5/

12 Marley Prospect: located under existing Harriet Joint Venture Infrastructure (Tap 12.22%) Established HJV infrastructure and strategic position rapid field development Marley-2 exploration well - high impact target, drilling commenced Additional deep gas potential in HJV acreage if Marley is successful Marley 2 Drilling now Wonnich Zephyrus Varanus Island Agincourt Bambra Harriet A Simpson A&B Simpson/ Attic Marley (gas) Bambra East Sinbad Harriet C Gudrun Campbell Linda Harriet B Gipsy Marine Terminal Lee 4 gas field July 2008 Lee Rose Double Island Gibson/Sth Pluto Victoria Simpson-9/10 step out drilling June 08 West Cycad CS1 Maturing oil leads Southern Flag play (oil) DBNG 9/5/

13 Harriet Joint Venture: Marley Prospect (Tap 12.22%) Top Barrow Base Cretaceous Marley-1 Marley-1 Took gas kick Suspended due to cyclone High Impact Gas Game Changer with results due end May 08 Marley Jurassic Reservoir Seismic Profile illustrating Marley Prospect Marley-1 suspended in Jan 2006 due to mechanical issues upon re-entry after cyclone Re-assessment of prospect increased from chance of success ~20% based on revised technical work demonstrating evidence for good reservoir Very large structure estimated to have potential resources up to 1TCF of gas Marley 1 Upon success case rapid development via existing nearby platform and pipeline is expected Marley-2 drilling has commenced Structure/Amplitude Map of Marley Prospect 9/5/

14 WA-351-P: Gas Exploration Hot Spot LNG Potential (Tap 25%) WA-351-P contains prolific Triassic gas fairway known for potential for large gas accumulations Mapped >20 large, mod-low risk leads Cumulative unrisked potential >10 Tcf, with several individual leads >1 Tcf WA-404-P $200+m bid by Hess/Woodside Scarborough 6+Tcf Thebe discovery 2-3Tcf WA-390-P $500m bid by Hess! Io/Jansz 20+Tcf Woodside Pluto Gorgon 18Tcf Plan to acquire 3D seismic in 08 Industry recognizes value (bids of $200 & $500m) Success could see Tap supplying gas to a future LNG development Value potential $ $3.00/share Multiple gas prospects of Tcf+ size (Tap 25%) WA-392-P $50+m bid by Chevron Possible Gas pipeline Proposed Onshore LNG plant 9/5/

15 WA-351-P: Multiple low risk leads identified (Tap 25%) WA-351-P Leads Map Over 20 leads defined on high quality 2D seismic data Each has strong amplitude support for the presence of gas Cumulative unrisked potential >10 Tcf, with several individual leads >1 Tcf 3D seismic acquisition anticipated 2008 likely to cover the majority of the permit 9/5/

16 WA-351-P: Example of Seismic Evidence of Gas 2D Seismic Line Near Stack Large horst closure at Top Triassic 9/5/

17 WA-351-P: Example of Seismic Evidence of Gas 2D Seismic Line Far Stack Bright Far Stack indicates presence of gas Large horst closure at Top Triassic Historical success rate around 50% for drilling prospects on 3D seismic with direct evidence for gas 9/5/

18 Bass Basin T/47P: Overlooked Oil Potential (Tap 40%, Operator) Fast track 3D seismic Volume Section Timeslice North Cormorant lead Oil discovered on block at Cormorant-1 (1970) Labatt 3D seismic survey acquired Dec 07 over key leads with significant oil potential Molson 2D seismic acquisition completed in March 2008 Mature low-mod risk prospects in first half 2008 Drilling rig secured for drilling two wells in /5/

19 South East Asia - Building a Circum-Borneo Portfolio Borneo basins have yielded billions of barrels Tap has a multi-national strategy capturing under-explored areas or overlooked resources SC-41 (Tap 50% & operator). Very high potential block with Filipino fiscal terms. More than 15 leads have been identified on 3D seismic with sizes up to and greater than 100mmstb Brunei Block M (Tap 39% & operator). Belait oil & gas field to be appraised late Significant exploration potential in remainder of block 9/5/08 8/05/

20 SC-41: Prospects and Leads Defined on 3D seismic (Tap 50%, operator) Over 20 leads identified on 750km2 3D seismic survey acquired mid 2007 Leads identified at many stratigraphic levels with structural and stratigraphic closures Individual trap sizes up to and greater than 100 mmstb Numerous direct hydrocarbon indicators observed on 3D seismic Rig secured to drill 1 firm and one option well in third quarter 2008 Tap value impact of a discovery of US$15-25/bbl plus improve risk of follow up prospects & leads SC-41 Wahoo Wildebeest-1 Recovered oil Structural Trap Structural/ Stratigraphic Central Inversion Yielding high impact prospects for drilling Q /5/

21 SC41: Wahoo Prospect Wildebeest Wahoo Prospect Wildebeest-1 drilled on 2D data, recovered oil in poor reservoir. Wahoo prospect located <5km from Wildebeest-1, which demonstrated oil is generated in this area 3000 Oil recovered from well 5km 3D seismic interpretation suggests significantly better reservoir development at Wahoo. Mean recoverable volume in mmstb range Moderate risk Drilling Candidate for July 08 9/5/

22 SC41: Central Inversion Lumba Lumba Prospect Mean recoverable volume in mmstb range Moderate risk Favourable reservoir fairways at many levels Large Structural Closure Reservoir Fairway Focus area for hydrocarbon migration SW Central Inversion Structure NE Gas Cloud Gas Cloud High Amplitude Sediment Fairways Reservoir Fairway Drilling Candidate for July 08 5 km 9/5/08 5/8/

23 SC41: Significant Follow-up on Success 1 firm + 1 optional well in 2008 drilling campaign First deepwater wells to be drilled on 3D Seismic Data in Sandakan basin Information acquired during drilling will aid assessment of remaining 20 leads A successful well could unlock a major new province 9/5/

24 Brunei Block M (Tap 39%, Operator) Tap s new strategy in action: high equity, operatorship in proven basins Tap awarded 39% operated role in Block M in October ,100km 2 onshore block located in the prolific Baram Delta Contains discovered Belait Oil and Gas Field Potential for even larger resources in deeper section of Belait and other prospective trends Tap plans an aggressive appraisal block-wide exploration programme 2008 activity: 2D seismic reprocessing Airborne survey Preparing for 2D and possible 3D seismic in late 2008 or early 2009 Appraisal drilling late /5/

25 Brunei Block M: In the land of the giants (Tap 39%, Operator) Offset Producing Fields Fairley ~2 Tcf & 200 mmbls Ampa ~12 Tcf &1000 mmbls Seria ~1.6 Tcf &1100 mmbls Brunei geological cross section Block M Beliat Field Produced oil and gas during 1920/30 s 18 wells drilled, 14 without seismic control All on structure wells intersected hydrocarbons or hydrocarbon shows Contingent Resource range up to >50mmboe Considerable near-field potential Belait Subthrust Belait Oil/Gas Field Upside potential 5km 9/5/

26 Tap s New Ventures Focus Tap s goal is Quality not quantity Focus Areas build: Knowledge of basins Understanding companies & governments..but keep an eye on the wider horizons for a gem of a deal New Ventures Focus South East Asia Proven basins Fluid market for opportunities numerous under review Near term drilling to long term ground floor deals Australia/NZ Focus Acquire projects with potential to add to or become core areas North West Shelf core exploration & production area 9/5/

27 Closing: Balanced Portfolio of Near Term High Impact Events May 08: Marley-2 drilling result Potential 250% increase in Tap reserves June 08: Woollybutt South Startup More than double field production July 08: Drilling in Philippines SC-41 High quality prospects, transformational event Q3 08: Acquire 3D seismic in WA-351-P Reveal high quality LNG-style prospects Q3 08: Potential appraisal drilling of Maitland Gas field close to infrastructure Q4 08: Appraisal drilling of Belait, Brunei Existing oil discovery with upside potential 9/5/