OMV New Zealand Limited Farm-in Opportunities 2015

Transcription

1 OMV New Zealand Limited Farm-in Opportunities 2015 Auckland, 29 th March 2015 OMV Upstream

2 Legal Disclaimer This document does not constitute a recommendation, an offer or invitation, or solicitation of an offer, to subscribe for or purchase any securities and neither this document nor anything contained herein shall form the basis of any contract, investment decisions or commitment whatsoever. This document does not include any financial analysis or financial research and may not be construed to be a or form part of a prospectus. It is being furnished to you solely for your information. This document and its contents are proprietary to OMV Aktiengesellschaft ( the Company ) and neither this document nor any part of it may be reproduced or redistributed to any other person. It may be amended and supplemented. No reliance may be placed for any purpose whatsoever on the information contained in this document, or any other material discussed verbally, or on its completeness, accuracy or fairness. None of the Company, connected persons, their respective affiliates, or any other person accepts any liability whatsoever for any loss or damage howsoever arising, directly or indirectly, from any use of this document or its contents. The information and opinions contained herein are provided as at the date of this document. This document is not directed at, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. In particular, no recipient of this document or any copy or part hereof shall reproduce, forward, retransmit or otherwise redistribute this document or any copy or part hereof, directly or indirectly, in or into the United States, Canada, Japan or Australia. This document includes forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and section 21E of the U.S. Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this document, including, without limitation, those regarding the Company s financial position, business strategy, plans, and objectives of management for future operations (including development plans and objectives relating to the Company s products), are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company s present and future business strategies and the environment in which the Company will operate in the future and speak only as of the date of this document. None of the future projections, expectations, estimates or prospects in this document should in particular be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared or the information and statements contained herein are accurate or complete. As a result of these risks, uncertainties and assumptions, you should in particular not place reliance on these forward-looking statements as a prediction of actual results or otherwise. This document does not purport to contain all information that may be necessary in respect of the Company or its shares and in any event each person receiving this document needs to make an independent assessment. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any statements including any forward-looking statements contained herein to reflect any change in the Company s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based OMV Aktiengesellschaft, all rights reserved, no reproduction without our explicit consent. 2 OMV New Zealand Limited, Simon Lange, 29th March 2015

3 Introduction to OMV OMV New Zealand Limited is a subsidiary of OMV EP, which is part of the OMV Group, one of Austria s largest listed industrial companies. As of year-end 2014, OMV s proven worldwide reserves were about 1.1bn boe. In 2014 total oil and gas production of OMV EP reached 309,000 boe/d. OMV New Zealand Limited Head office: Wellington, Operations base: New Plymouth More than 200 contractors and staff at offices and field locations Interests in 3 offshore production permits, 20,000 barrel oil equivalent per day (net) production Operator of the Maari oil field, partner in Maui and Pohokura gas fields Operator of five exploration permits, partner in a further three exploration permits OMV Exploration in New Zealand OMV has been exploring in New Zealand since 1999 Exploration department of 13 staff in country Experienced operator of seismic surveys and drilling operations Significant proprietary regional knowledge and databases 3 OMV New Zealand Limited, Simon Lange, 29th March 2015

4 Opportunities to Partner with OMV in New Zealand OMV New Zealand Ltd is looking for partners to earn non-operated interest in three of its key exploration permits in New Zealand Gaining entry into these three exploration blocks offers an opportunity to access a balanced non-operated acreage position with limited near-term cost exposure and long-term exploration running room. Positions of 30% 70% are available to interested parties. OMV intends to retain operatorship along with 30% - 40% equity in each of these permits. Taranaki Basin PEP (up to 30% available): Exploration permit with new 3D data connecting Maui and Maari surveys. Direct access to Maui and Maari petroleum system. PEP (up to 70% available): Exploration potential in a favourable structural and depositional setting. On the flanks of the Pohokura and Kora kitchen. Pegasus/East Coast Basin PEP (up to 70% available): Frontier exploration in a basin with few wells, an abundance of structural and stratigraphic play potential. There are local onshore oil and gas seeps, a work programme tailored to de-risk the basin. MAARI MANAIA PEP TUI KAREWA KORA MAUI POHOKURA PEP KUPE PEP PEP ( OMV 65% / 806 km 2 ) PEP ( OMV 100% / 1,365 km 2 ) PEP ( OMV 100% / 9,800 km 2 ) 4 OMV New Zealand Limited, Simon Lange, 29th March 2015

5 Opportunity PEP The permit is surrounded by oil & gas accumulations at Tui, Maui, Maari and Manaia fields. The 432km 2 Kaka 3D seismic survey was acquired in Q in the southeastern part of the permit, thereby providing continuous 3D seismic coverage between the Maui and Maari fields. The prospectivity in the permit has direct access to the Maui and Maari kitchen. More than 50% of the permit is covered by 3D seismic data. Permit Status The permit is currently in year 6 of a 12 year term, covering an area of 806km 2. PSDM processing of the 2014 Kaka 3D seismic is almost complete. Interpretation of this data is due by 18 Nov Next Commitment Points 18 Nov 2016: Drill or Drop Commit to drill an exploration well 18 Nov 2017: Drill one exploration well 18 Nov 2019: Drill or Drop Commit to drill an exploration well and relinquish 25% of Permit 18 Nov 2020: Drill one exploration well Current JV OMV (65%), Octanex (22.5%), NZOG (12.5%) OMV intend to retain operatorship and farm out A A up to 30% of their interest A A 5 OMV New Zealand Limited, Simon Lange, 29th March 2015

6 Opportunity PEP Gaining a position in the permit offers an excellent opportunity in an under-explored portion of the productive Taranaki Basin. The Permit lies to the western side of the North Taranaki Graben, source kitchen to the Kora oil and Pohokura gas fields. More than 50% of the permit is covered by 3D seismic data. Permit Status The permit is in year 1 of a 12 year term, covering an area of 1365km 2. Seismic reprocessing is due to commence early April 2015: 3D seismic data 830km 2 2D seismic data 930km 2 Next Commitment Points 30 Sept 2016: Commit to acquire 700km 2 3D seismic data before 30 Sept March 2019: Drill or Drop Commit to drill an exploration well 31 March 2020: Drill one exploration well and relinquish 50% 2 further work programme stages until 31 march 2027, including 2 more drill or drop options. Current Equity OMV hold 100% and intend to retain operatorship and farm out up to 70% of their interest to one or more parties 6 OMV New Zealand Limited, Simon Lange, 29th March 2015

7 Opportunity PEP An exciting opportunity in an under-explored proven petroleum system. The D multi-client seismic (acquired by Schlumberger Multi-Client) has significantly increased the prospectivity of the block. There is an abundance of structural and stratigraphic play potential combined with local onshore oil and gas seeps. The work programme has been tailored to de-risk the basin. Permit Status The permit is in year 1 of a 15 year term, covering an area of 9800km 2. Multi-Beam bathymetry acquisition is planned for April 2015 Geological field studies, drop core programme and 2D seismic reprocessing are all planned to be completed by 31 March Next Commitment Points 31 March 2017: Acquire 2000km of 2D seismic 30 Sept 2018: Commit to acquire 1000km 2 of 3D seismic 31 March 2021: Drill or Drop Commit to one exploration well and relinquish 50% 2 further work programme stages until 31 March 2030, including 1 more drill or drop option. Current Equity OMV hold 100% and intend to retain operatorship and farm out up to 70% of their interest to one or more parties Titihaoa-1 Tawatawa-1 PEP leads PLAYER well analysis 2014 Schlumberger Multi-Client MC2D survey Pre D seismic Onshore geology by Play type Onshore oil seeps Onshore gas seeps 0 BATHYMETRY 4km NIWA seafloor seeps 7 OMV New Zealand Limited, Simon Lange, 29th March 2015

8 Farmout Process Timeline 1 st 30 th April 2015: Expressions of interest and signing Confidentiality Agreements 4 th 29 th May 2015: Virtual summary presentations & Physical dataroom available 31 st July 2015: Bids Due Deal Structure Preferred deal to include a bid on all three opportunities Bids on single permits will be considered (PEP & PEP 57073) 8 OMV New Zealand Limited, Simon Lange, 29th March 2015

9 Contact OMV New Zealand Ltd Level 10, Deloitte House 10 Brandon Street Wellington CBD New Zealand Simon Lange OMV Upstream

10 EXPLORATION OPPORTUNITY NEW ZEALAND OMV New Zealand Ltd is looking for partners to earn a significant participating non-operated interest in three of its key exploration permits in New Zealand (Figure 1). OMV intends to retain operatorship along with 30% - 40% equity in each of these permits. Gaining entry into these three exploration blocks offers an opportunity to access a balanced non-operated acreage position with limited near-term exposure and long-term exploration running room. The combined farm-in blocks offer near-field exploration (51096), on-trend exploration potential in a favourable structural and depositional setting (57075), and frontier exploration in a basin with new international oil company interest (57073). Figure 1 : OMV NZ acreage & Basins The Assets (Figure 2) PEP (OMV operated 65%) covers an area of 806 km 2 in the offshore Taranaki Basin of the North Island of New Zealand. The permit is surrounded by the producing oil fields of Maari, Manaia, Tui, Amokura & Pateke and the giant Maui Gas Field. Drilling & 3D seismic acquisition in 2014 provide new exploration insights for future prospectivity. PEP (OMV operated 100%) covers an area of 1,365 km 2 in the offshore Taranaki Basin of the North Island of New Zealand. The permit lies on the major structural and depositional trend that hosts offshore producing fields and contains a range of plays and leads in Cretaceous through Miocene reservoirs. PEP (OMV operated 100%) covers an area of 9,800 km 2 in the offshore Pegasus Basin on the east coast of the North Island of New Zealand. The Pegasus Basin has seen a dramatic increased interest in 2015 and the permit straddles a mix of shallow to deepwater exploration plays. Figure 2 Process & Contacts For further information on the farm-in process and discussion on opportunities, please contact : Simon Lange Exploration Manager Ph : +64 (0) OMV New Zealand Ltd Mb : +64 (0) Level 10, 10 Brandon St, simon.lange@omv.com Wellington New Zealand

11 EXPLORATION OPPORTUNITY PEP Offshore Taranaki Basin OMV New Zealand Ltd (OMV) is seeking a farm-in partner for its offshore permit PEP in Taranaki Basin, New Zealand. The permit is currently in Year 6 of its 12-year term. Commitments in the work programme include interpretation of 3D seismic data to mature prospects for drilling in The permit is surrounded by oil & gas accumulations at Tui, Maui, Maari and Manaia fields (Figure 1). Matuku-1 well was spudded in November 2013 to test the Matuku prospect, east of the Kahurangi Trough source kitchen. It was P&A with tight-hole status in February The 432km 2 Kaka 3D seismic survey was acquired in Q in the southeastern part of the permit, thereby providing continuous 3D seismic coverage between the Maui and Maari fields (Figure 1). Taranaki Basin is the only hydrocarbon-producing basin in New Zealand and its complex tectonic history has given rise to several plays ranging from Late Cretaceous to Miocene sandstones in fluvial, marginal marine, shoreface and basin-floor fan depositional settings, all of which occur in PEP The asset PEP covers an area of 806 km 2 (Figure 1) and is situated adjacent to existing producing assets ( Maari and Manaia oil fields, Maui gas-condensate and oil fields and the Tui Area oil fields [ Tui, Amokura, Pateke ] ). Exclusive exploration rights for PEP were granted to Octanex NZ Limited (Octanex) on 19 November OMV acquired 65% and Operator status in May 2011 in a farm-out agreement with Octanex. On 15 February 2013 NZP&M consented to the transfer of equity from Octanex to Australia and New Zealand Petroleum Limited (NZOG), which resulted in the present PEP Joint Venture (JV) equity position of: OMV 65.0% (Operator) Octanex 22.5% NZOG 12.5% An extension of duration of 7 years was granted in November 2013, thereby bringing the permit into the Minerals Programme for Petroleum 2013 regulatory regime. Commitments Stage 1 (Matuku-1 well and Kaka 3D acquisition and processing) exploration results are presently being evaluated and leads matured prior to the next commit-orsurrender decision by 18/11/2016. Stage 2 includes drilling one exploration well by 18/11/2017, together with the next commit-or-surrender point. The Permit expires on 18 November Geological setting The Taranaki Basin formed in the Cretaceous in response to continental rifting as the New Zealand landmass broke away from Australia and Antarctica. This rifting was characterised by rapid subsidence and the formation of numerous deep half-grabens that were subsequently filled with large thicknesses of siliciclastic sediments deposited in terrestrial and coastal environments. The oil-prone coals and organic mudstones of the Rakopi Formation that were deposited during this time comprise the dominant source rocks for exploration in PEP Figure 1: PEP location and leads. Seismic Data Coverage The 432 km 2 Kaka 3D survey was acquired in December 2013 by the Polarcus Alima and processing is currently underway. 2D swath lines were acquired in the Kaka survey (Figure 1, thin blue lines) to tie into the Matuku 3D survey (acquired in PEP in 2011) and to provide data for interpretation of prospectivity in the southwest part of the permit. Plays Source rocks are Late Cretaceous Rakopi Formation coals and organic shales. The rapid loading of >1.5 km of sediments in the late Miocene to present-day has resulted in these source rocks being heated to generation and expulsion temperatures. The deep East Maui kitchen is the primary source rock depocentre in the region (Figure 2).

12 Reservoirs in the region include the mid-miocene Moki Fm (Maari Field), the Middle Eocene Kapuni Group C- sands/mangahewa Fm (Manaia and Maui fields), Lower Eocene D-sands/Kaimiro Fm (Maui Field), and the Paleocene F-sands/Farewell Fm (Tui Area fields and in the past Maui Field). These formations are all potentially productive in PEP There is also evidence for good reservoir sandstone potential in the North Cape Formation and Rakopi Formation, although there is currently no production from these reservoirs in the region. Seal is present as intra-formational shales (Rakopi, North Cape, Kapuni E and D, and Upper Manganui formations) and regional shale seals of the Late Eocene Turi Fm and calcareous claystones and marls of the Oligocene to Early Miocene Otaraoa, Tikorangi and Lower Manganui formations. Most traps drilled in Taranaki Basin are structural, associated with inversion anticlines and rotated fault blocks or drapes over basement highs. Stratigraphic traps, if they can be confidently identified, would provide added potential. Principal leads in Kaka 3D area With uncertainty over the effectiveness of the Kahurangi Trough, exploration is currently focussed on the eastern part of PEP 51906, where the Kaka 3D Seismic Survey is expected to provide significant resolution of exploration potential in the area between the Maui and Maari-Manaia fields. The reported discovery of oil in the Ruru-3 exploration well (Figure 2) further enhances the potential of this area. Interpretation is progressing using a Kaka 3D PSTM volume and two main leads - Cascade and Kea Deep - have been confirmed (Figures 2 and 3). The target for the Kea Deep lead is the older Kaimiro and Farewell (Kapuni D and F-equivalent) sandstones that were not penetrated by Kea-1. Offset wells support strong intraformation seals within the Kapuni Group, exemplified by the Paleocene oil discoveries at Maui B and the Tui Area Fields, and stratigraphic isolation of petroleum systems. Figure 2: Paleocene TWT structure map over Kaka 3D The Cascade Lead is located to the northwest of Kea Deep and is an independent closure between the Maui and Maari fields. Preliminary seismic interpretation suggests a faultbounded dip closure in excess of 30 km 2 at Top Cretaceous level. Exploration targets are in Miocene, Eocene, Paleocene and Upper Cretaceous sandstones (Figure 3). Farm-in terms OMV New Zealand Ltd intends to farm down its equity in PEP from 65% to 35-40% while maintaining Operatorship. Expressions of interest are welcome and additional data will be provided subject to signature of a Confidentiality Agreement. Figure 3: schematic geological section. leads identified in the Kaka 3D. KEA-1 For more details please contact : Simon Lange Exploration Manager OMV New Zealand Ltd Level 10, 10 Brandon St, Wellington NZ Ph : +64 (0) Mb : +64 (0) simon.lange@omv.com

13 EXPLORATION OPPORTUNITY PEP Offshore Taranaki Basin OMV NZ Ltd is looking to farm-out a portion of its 100% position in the Exploration Block in the offshore Taranaki Basin, North Island, New Zealand. The permit is current in year 1 of its 12-year term. Gaining a position in the permit offers an excellent opportunity in an under-explored portion of the productive Taranaki Basin. The permit lies on structural trend of the key oil & gas accumulations at Tui, Maui, Maari and Manaia fields to the south & the Kora field to the north (Figure 1). The Taranaki Basin is the only hydrocarbon-producing basin in New Zealand and its complex tectonic history has given rise to several plays ranging from Late Cretaceous to Miocene sandstones in fluvial, marginal marine, shoreface and basin-floor fan depositional settings, all of which occur in PEP The asset PEP covers an area of 1,365 km 2 in the offshore Taranaki Basin of the North Island of New Zealand (Figure 1). The permit was awarded to OMV NZ Ltd in the 2014 bid round. The licence agreement became effective on 1 April 2015 and has a 12-year duration. The permit does not contain a firm well commitment. Re-processing of existing 2D and 3D seismic data is required within 12 months. Commitments The permit is currently in Stage 1 of its work programme, with a commitment to reprocess 930 km of 2D seismic data and 830 km 2 of 3D seismic data by 1/4/2016. Future contingent work programme elements consist of 700km2 3D seismic acquisition (Stage 2) and an exploration well drilling (Stage 3) but are not commitments in the current stage. Exploration history The Arawa-1 exploration well (1991) was a technical success penetrating ~2m of net gas pay in thin Upper Miocene sands, but did not penetrate the main Miocene reservoir sequence. The Kanuka-1 well (2008) intersected good Miocene reservoir, but was a low relief structure with poor charge focus at the Miocene level. The Moa-1B and Taranga-1 wells to the west both encountered good shows of migrating oil indicating an active kitchen, and the Kora-1 discovery to the north penetrated a live oil column in Miocene volcaniclastics (DST-1, 668 BOPD) and oil shows in Eocene sandstones. Geological setting The Taranaki Basin formed in the Cretaceous in response to continental rifting as the New Zealand landmass broke away from Australia and Antarctica. This rifting was characterised by rapid subsidence and the formation of numerous deep half-grabens that were subsequently filled with large thicknesses of siliciclastic sediments deposited in terrestrial and coastal environments. Oil-prone coals and organic mudstones of the Rakopi Formation were deposited during this time. A marine transgression occurred late in the rifting sequence, which was followed by an extended period of deep marine conditions, including deposition of the Oil-prone Waipawa Shale in the Paleocene. Uplift of the hinterland during the Miocene greatly increased sediment supply resulting in widespread turbidite systems, and the eventual progradation of the shelf edge through the permit area. A second phase of extensional tectonics was initiated in the Pliocene, and the onset of back-arc rifting in the Pleistocene resulted in the Figure 1: PEP location and leads. formation of the North Taranaki Graben immediately to the east of the permit. Seismic Data Coverage The permit is covered by a medium density of pre D seismic data, and the southern half is covered by the 1,520 km 2 Parihaka 3D survey, acquired in Reprocessing of the entire seismic database is scheduled to commence in Q in order to improve the structural and stratigraphic understanding of the permit. Plays Source rocks are Late Cretaceous Rakopi Formation coals and organic shales and the Paleocene Waipawa Fm marine shale. The Moa Graben and Cape Egmont Deep are the primary source rock depocentres in the region (Figure 2), and are modelled to reached oil maturity during the Plio- Pleistocene.

14 Figure 2: Top Cretaceous Regional Depth Map ( shown with onshore regional geology ) Plays ( continued ) Reservoir potential is present in the North Cape sandstones deposited during the late-rift marine transgression. Late stage rifting provided accommodation space for significant thicknesses of shallow marine sandstones, as penetrated in the Tane-1 well. Further potential exists in basin floor turbidite systems of the Moki Fm (Maari Field), Mt Messenger Fm (numerous onshore fields) and Mangaa Fm (Karewa discovery). These formations are all potentially productive in PEP Seal risk is low due to the prevalence of deep marine conditions for much of the post-rift sequence. The Turi shale (seal for the Tui field) directly overlies the North Cape sandstone, and the Miocene/Pliocene basin floor turbidites are encased in the deep marine shales of the Manganui and Urenui formations (seals for the Maari and onshore fields respectively). The permit contains a number of trapping styles related to three distinct periods of extension and structuration from mid Cretaceous-present. Identified traps include rotated fault blocks, 4-way closures and 3-way downfaulted structures. Principal leads in PEP The Cloudy Bay lead is defined on 2D data and consists of a rotated Cretaceous fault block on the eastern flank of the Moa Graben. The transgressive North Cape sandstone is interpreted to underlie deep marine Turi shale, with the structural dip providing excellent charge focus for hydrocarbons expelled from the Rakopi Fm within the graben. The Gladstone lead is partly covered by the Parihaka 3D survey, where a large turbidite channel cuts across the permit. The channel is vertically offset by over 150m at the western bounding fault of the Cape Egmont Deep, with the downthrown side juxtaposed against Turi shales and Oligocene marls. Deeper structures provide charge focus from the Cape Egmont Deep kitchen. Other leads within the permit include deep syn-rift structures (Brackenridge) and 3-way/4-way features associated with the complex mechanics of the Cape Egmont Fault Zone. Work programme Stage 1 consists of reprocessing 930 km of 2D seismic data and 830 km 2 of 3D seismic data by 1/4/2016. Stage 2 consists of acquiring 700km 2 of 3D seismic data by 1/10/2017. A commitment to enter Stage 3 is required by 1/4/2018, which includes the first exploration well to be drilled by 1/4/2019. No seismic acquisition or drilling is required as a committed activity within stage 1. Farm-in terms OMV New Zealand Ltd intends to farm down its equity in PEP from 100% to 35-40% while maintaining Operatorship. Expressions of interest are welcome and additional data will be provided subject to signature of a Confidentiality Agreement. For more details please contact : Simon Lange Exploration Manager Ph : +64 (0) OMV New Zealand Ltd Mb : +64 (0) Level 10, 10 Brandon St, simon.lange@omv.com Wellington NZ

15 EXPLORATION OPPORTUNITY PEP New Zealand OMV NZ Ltd is looking to farm-out a portion of its 100% position in the Exploration Block in the offshore East Coast, North Island, New Zealand. Gaining a position in the permit offers an exciting opportunity in an under-explored proven petroleum system. The 2009 and 2014 multi-client seismic campaigns have significantly increased the prospectivity of the block. The asset The Permit covers an area of 9,800 km 2 in the offshore southern East Coast of the North Island of New Zealand (Figure 1). The permit was awarded to OMV NZ Ltd in the 2014 bid round. The licence agreement became effective on 1 April 2015 and has a 15 year duration. The permit does not contain a firm well commitment. Acquisition of 2000 km 2D seismic is required within 24 months. Exploration history 2,660km of 2D seismic data exists within the permit. Seismic, gravity and magnetic data have been acquired between 1972 and Several bathymetry and seep studies in the permit area show active gas seeps at sea floor and bottom simulating reflectors (BSRs) in the shallow subsurface. Two wells have been drilled on the boundary of the permit, Tawatawa-1 having gas shows over 20%, and Titihaoa-1 which was classified by the operator as a noncommercial gas discovery with gas readings up to 80%. Onshore wells have had gas and oil shows and the onshore area has an abundance of oil and gas seeps (Figure 2). Discoveries summary Immediately adjacent to PEP the Titihaoa-1 well is classified as a non-commercial gas discovery (Figure 2). Regional Setting The permit occupies a region within the East Coast fold and thrust belt on the subduction margin of the Hikurangi Plateau underneath the Australian Plate. The area is structurally complex, but recently acquired 2D seismic data has better imaged the deeper stratigraphy of the subsurface and demonstrated the exploration potential of the region. Numerous large thrust and fold structures are visible on seismic data, as are inverted mini-basins and stratigraphic pinch-outs. Basin modelling work suggests the nearshore fold & thrust belt has the best chance for mature source rock presence. Hinterland-derived clastic reservoirs suggest that the nearshore location of the OMV permit has a higher chance of better quality reservoir compared to more distal settings. PEGASUS & EAST COAST BASINS TARANAKI BASIN Chevron / Statoil OMV NZ PEP (100%) Chevron / Statoil Anadarko Anadarko Chevron / Statoil Passive Margin Chatham Rise Figure 1: Pegasus & East Coast Basins, North Island New Zealand

16 Plays Summary Two primary plays exist in the block: 1) Anticlines The East Coast region has seen several km of Miocene to Pleistocene clastic deposition prior to or during folding. Numerous large anticlines (>100km 2 ) are visible on seismic (Figures 2 & 3). 2) Mini-basins Numerous inverted mini-basins are seen on recent seismic data. Interpreted turbidite sand structural drape and pinch outs occur within these. Source rocks for both of these plays : - Late Paleocene Waipawa Formation black shale - Latest Cretaceous & Early Paleocene Whangai Fm - Late Cretaceous Glenburn Fm. Seal is known to be thick and widespread across the region from wells and seismic data. Both the Paleogene seal (Wanstead and Weber formations) and Neogene seals are capable of being very effective seals as documented in outcrop and well samples. Structures are numerous and large with several over 100km 2 and capable of holding mean recoverable resources well over 100 MMboe. Preliminary mapping confirms the location of numerous leads within the play fairway (figure 2). Hydrocarbon type Dry gas has been intersected in the two closest offshore wells. Despite this, there are numerous oil and gas seeps in the nearby onshore Wairarapa area. Oil has been analysed and tied to both the Waipawa Fm and Cretaceous Source rocks. Figure 3: schematic Seismic section offshore Pegasus Basin Work programme The committed work programme is modest and includes sample analysis, seismic reprocessing and bathymetry surveying in the first 18 months. 2000km 2D seismic is required by 24 months. No 3D seismic or drilling is required as a committed activity within stage 1. For more details please contact : Simon Lange Exploration Manager Ph : +64 (0) OMV New Zealand Ltd Mb : +64 (0) Level 10, 10 Brandon St, simon.lange@omv.com Wellington NZ Figure 2: Pegasus & East Coast Basins combined onshore geology, offshore leads and current seeps data Tawatawa-1 onshore Geology classified by PLAY Titihaoa-1 gas discovery Offshore Wells in Player leads Onshore seeps gas oil Offshore seeps NIWA 2014