Atwood Eagle the rig used for the 2014 Phoenix South-1 discovery. Corporate Overview. Finder Exploration Pty Ltd July 2017

Transcription

1 Atwood Eagle the rig used for the 2014 Phoenix South-1 discovery Corporate Overview Finder Exploration Pty Ltd July 2017

2 Finder a successful private oil & gas company whose people deliver opportunity through knowledge, data & technology 1. Why Finder? 2. Results focussed 3. Proven track record of value creation 4. Technical excellence unlocking new hydrocarbon provinces 5. Diversified portfolio continuing exploration success! 6. Conclusions Slide 2

3 Why Finder? Commercially driven team with >80 years experience that has delivered: 17 transactions resulting in US$213 million of value with recent transactions linked to success based payments & royalties carry in one upcoming well no other offshore drilling commitments Proven track record of value creation: 5 offshore exploration wells to date resulting in 3 fields onshore Canning Basin - Theia-1 confirms the resource play geological model excellent acreage position with 17 Australian Permits ~23,300 net km 2 4 Bedout Sub-basin Permits with an over-riding royalty Technically driven: geoscience excellence with in-depth regional knowledge 3D supported portfolio in excess of 600 mmbbls of oil equivalent world class North West Shelf database Sustainable forward model leveraging lower costs: De-risked exploration drill portfolio, 2018 Slide 3

4 Northwest Shelf Australia 17 Permits 4 with an ORRI AC/P 56 AC/P 55 AC/P 61 Bayu/Undan AC/P 52 20% Argus Cash/Maple AC/P 45 Tern Petrel Darwin Brecknock/ Calliance Poseidon Torosa Prelude Ichthys Blacktip Wadeye 100 km Scarborough WA-59-R 25% WA-520-P WA-500-P Macedon/ Pyranees Jansz/Io WA-412-P Gorgon Rankin Trend WA-418-P 35% EP 483 & TP/25 WA-468-P Mutineer Dampier Port Hedland Phoenix Sth Roc Broome EP 493 Derby Finder has: utilised its knowledge & database to bid and acquire acreage in gazettal rounds and farmins since 2004 delivered our current net acreage holding of ~23,300 km 2 in northwestern Australia with material participating interests Slide 4

5 Management - a team that delivers The management team has a proven track record of value creation through deals, including majors and large independents (delivering a total value of US$213 million). The team also has achieved an exceptional rate of exploration drilling success - 4 discoveries from 5 wells Shane Westlake CEO 16 years experience as a petroleum geophysicist, seismic interpreter and prospect generator including 5 years as Area Coordinator for PGS Reservoir, setting up their Perth office. Shane joined Finder in 2007 and was promoted to Chief Executive Officer in late Jan Ostby Director 30 + years of experience in the industry. Founding partner of Seismic Australia which was acquired by Fugro in Founding Managing Director until late Aaron Bond Exploration Manager 15 years of industry experience as a petroleum exploration geoscientist, including 9 years at Eni (Australia & Italy). Aaron s work has covered a wide range of exploration and operation roles covering Australia, East Timor and West Africa. Aaron joined Finder in Ryan Taylor-Walshe Onshore Manager 22 years experience, predominately with Schlumberger seismic services (director of Schlumberger Australia from ). Expertise in seismic technologies, operations & non-exclusive project development and governmental / regulatory lobbying. Ryan started with Finder in Damon Neaves Commercial Advisor 15 years experience in leadership roles as an Oil & Gas executive with particular focus in Africa and Asia Pacific regions Asset level transactions in excess of $350 million and ECM in excess of $50 million in the past 5 years. Damon joined Finder earlier this year. Slide 5

6 Finder a successful private oil & gas company whose people deliver opportunity through knowledge, data & technology 1. Why Finder? 2. Results focussed 3. Proven track record of value creation 4. Technical excellence unlocking new hydrocarbon provinces 5. Diversified portfolio continuing exploration success! 6. Conclusions Slide 6

7 Finder is a successful private oil and gas company focussed on capturing and de-risking prospective acreage through geoscience excellence is an opportunity company driven by data & deal flow has entered into agreements with major industry participants for the farmout, assignment and sale of Permit interests has an unrisked mean recoverable resource (Finder share) in excess of 3 billion barrels of oil equivalent across the the portfolio is delivering success through drilling: 6 exploration wells to date: three discovered fields offshore (Olympus, Phoenix South & Roc) and one well with shows; plus Finder s operated Theia-1 confirms the Canning resource play geological model Helios-1 and Helios-1H planned in next 12 months Cronus to spud in the next months Slide 7

8 Finder a successful private oil & gas company whose people deliver opportunity through knowledge, data & technology 1. Why Finder? 2. Results focussed 3. Proven track record of value creation 4. Technical excellence 5. Diversified portfolio continuing exploration success! 6. Conclusions Slide 8

9 Proven track record of value creation Since 2007 Finder has completed 17 transactions delivering carry in six wells of the five drilled so far four have encountered hydrocarbons delivering a total value of US$213 million: work program carry value to date of ~US$126 million plus sunk cost & cash payments of ~US$70 million with carry in upcoming drilling (US$17 million): Cronus-1 in the northern Browse Basin forward free carry 8% sunks & cash recovered 33% free carry to date 59% with future success payments and/or overriding royalties (ORRI) eg the April 2016 Bedout Sub-basin asset transaction with Quadrant Slide 9

10 Proven track record of value creation - our partners Slide 10

11 Finder a successful private oil & gas company whose people deliver opportunity through knowledge, data & technology 1. Why Finder? 2. Results focussed 3. Proven track record of value creation 4. Technical excellence unlocking new hydrocarbon provinces 5. Diversified portfolio continuing exploration success! 6. Conclusions Slide 11

12 Unlocking new hydrocarbon provinces Finder discovered 3 fields and a shale resource! Cash/Maple Bayu/Undan Darwin Petrel Argus Tern Brecknock/ Calliance Poseidon Torosa Prelude Ichthys Blacktip Wadeye Derby Phoenix Sth Roc Broome Theia Finder s geoscience excellence has unlocked resources in two new emerging hydrocarbon provinces 100 km Scarborough Macedon/ Pyranees Jansz/Io Olympus Gorgon Rankin Trend Mutineer Dampier Port Hedland 1. Bedout Sub-basin Phoenix South/Roc (2014/2015) 2. Goldwyer shale oil/gas resource Theia (2015) Slide 12

13 Bedout Sub-basin 100% success in emerging province Finder operated first 3D seismic in Bedout Sub-basin Phoenix South-1 Phoenix South-2* Phoenix-1 Phoenix Farm out to Apache (now Quadrant) & JX Nippon 2014 Phoenix South-1 oil discovery 2015 Roc-1 wet gas discovery Barret Member ~4,160m Roc-1 Roc-2* WA-435-P WA-436-P Phoenix Phoenix Sth Roc WA-437-P WA-438-P ~130 km Port Hedland 2016 Finder transacted with Quadrant for success payments and royalty Quadrant and Carnarvon continued success 2016 Roc-2 flowed 51 mmscf/d + 2,943 bblc/d 2016 Phoenix South-2 wet gas discovery 2017 Dorado-1 planned drilling 3D visualisation of near top hydrocarbons Caley Member ~4,380m Roc-2 well test Slide 13

14 Unlocking the Goldwyer Shale Oil Resource Regional studies and Theia-1 unlocked Goldwyer Shale potential ~OIP 42,000 bbls/acre, equivalent to Eagle Ford OIP Unrisked OIP ~ 35 billion bbls, plus 24 Tcf associated GIP Calculated GOR 2,000 scf/bbl m m Top Goldwyer III Depth Map Theia m Broome EP 493 Goldwyer III Well Intersections Significant potential Limited/no potential OIP Oil in Place, GIP Gas In Place, GOR Gas Oil Ratio map limit Slide 14

15 Finder a successful private oil & gas company whose people deliver opportunity through knowledge, data & technology 1. Why Finder? 2. Results focussed 3. Proven track record of value creation 4. Technical excellence unlocking new hydrocarbon provinces 5. Diversified portfolio continuing the exploration success! 6. Conclusions Slide 15

16 Growth driven by new data! Bayu/Undan Cash/Maple Darwin Petrel Argus Tern Brecknock/ Calliance Poseidon Torosa Prelude Ichthys Blacktip Wadeye Seismic database: Broome Derby ~25,800 km 2 of new data + ~18,800 km 2 of reprocessed data Scarborough Jansz/Io Gorgon Rankin Trend Mutineer Dampier Port Hedland Phoenix Sth Roc Theia since 2010 ~18,000 km 2 of data across 12 surveys & 12 Permits ~1,900 km 2 of brand new 3D seismic over 3 Permits and ~5,100 km 2 & ~9,800 km of brand new 3D/2D seismic in the Bedout 100 km Macedon/ Pyrenees + Theia-1 data well Slide 16

17 Northwest Shelf Australia oil and gas kitchens Bayu/Undan Cash/Maple Darwin Petrel Argus Tern 100 km Brecknock/ Calliance Poseidon Torosa Prelude Ichthys Blacktip Wadeye approximate limits of the oil and gas kitchens (schematic) Phoenix Sth Roc Broome Derby Finder has built a high quality oil and gas portfolio across two independent and proven provinces Browse Basin Carnarvon Basin Opportunities available to explore for the next hydrocarbon resource Scarborough Jansz/Io Gorgon Rankin Trend Mutineer Dampier Port Hedland Ready to drill 3D supported prospects with commercialisation options Early entry into mature areas Onshore Goldwyer shale resource Macedon/ Pyranees Slide 17

18 Finder Exploration - Carnarvon Basin portfolio WA-418-P 35% Phoenix Sth WA-500-P WA-412-P Mutineer Nebo WA-468-P Roc Scarborough Jansz/Io Pluto Wheatstone Rankin Trend Reindeer Lambert Wanea/ Cossack Achilles/ Satyr Clio Gorgon Wandoo Port Hedland Dampier Barrow Island N 50 km WA-520-P Vincent/Enfield Pyrenees Macedon WA-59-R 25% EP 483 & TP/25 Farm-in Opportunity Available Gas Discovery Ready to drill Early entry exploration Oil/Gas Field Gas Pipeline Finder Permit Oil/Gas Prospect or Lead Slide 18

19 Finder Exploration - Carnarvon Basin portfolio Exploration portfolio within the North West Shelf heartland Drill ready prospects with rapid commercialisation options EP 483 & TP/25 - Large AVO supported gas (with liquids potential) Eagle Prospect, with cheap drilling and close to existing infrastructure WA-412-P robust 3D defined Kanga oil Prospect close to existing oil fields and facilities WA-468-P focus on intra-graben Anderson oil-hub with access to in-situ + local oil charge (ie Nebo-1 look-a-likes ) OR acquire new 3D seismic over northern leads (currently 2D defined) WA-59-R 25% of the Olympus gas discovery with all costs free-carried until the issue of a Production License High potential permits currently undergoing detailed technical assessment through seismic acquisition opportunities, WA-520-P - high potential oil and gas permit on the flank of the Exmouth Sub-basin new high-end 3D acquisition completed in May 17 farm-out deal nearing completion mid 17 WA-500-P directly adjacent to Pluto (Woodside), Wheatstone/Jansz/Io (Chevron) gas fields, with multiple play levels identified Slide 19

20 Finder Exploration - Browse Basin portfolio AC/P 56 AC/P 55 AC/P 61 Cash/Maple AC/P 52 20% AC/P 45 Argus Crown Poseidon Prelude Torosa Lasseter Burnside Ichthys Farm-in Opportunity Available Ready to drill Early entry exploration Oil/Gas Field Gas Pipeline Finder Permit N 50 km Brecknock/ Calliance Oil/Gas Prospect or Lead Slide 20

21 Finder Exploration - Browse Basin portfolio Diverse exploration portfolio targeting near-field oil and gas opportunities Drill ready prospects covered by 3D seismic AC/P 52 fully carried by Shell in Cronus-1 gas/condensate well with up to ~7.8 TCF OGIP and along trend from gas discoveries (Torosa, Poseidon, Argus) Commercialisation either as stand alone FLNG project or as feedstock into Prelude FLNG AC/P 45 multiple shallow oil prospects defined by brand new 3D seismic data and hydrocarbon charge de-risked by 2014 seabed sampling and modelling by Geoscience Australia Exploration permits targeting multiple play levels, positioned for success through de-risking AC/P 55 2D identified Bonza oil prospect recently covered by new 3D seismic AC/P 61 recently acquired permit with multiple leads surrounded by oil discoveries. Utilise technological advancements from modern 3D seismic acquisition and processing to de-risk prospects and drill. Fast route to market through a central FPSO hub with sub-sea tiebacks to nearby fields AC/P 56 3D covered Omega prospect leveraged to Cronus success Slide 21

22 EP 493 DDH1 Rig 31 the rig used for the 2015 Theia-1 exploration well Goldwyer Resource - EP 493 Onshore Canning Basin Australia

23 Finder Shale unlocking the Goldwyer resource A world class liquids resource with material equity available Derby 860,000 acres liquids rich fairway within EP 493 Broome High graded to global scale opportunity through Theia drilling Shallow drilling (1,550 m TVD) with flexible development options EP 493 Port Hedland Next phase drill and test to prepare for early commercialisation Karratha 100 km Country US Basin Goldwyer III (EP 493) Eagle Ford Niobrara Bakken Age Ordovician Cretaceous Cretaceous Late Devonian 4,600-6,200' 8,000-12,000' 7,000-9,000' 7,000-11,000' ' ' ' ' Total Porosity (%) OOIP (MMBOE/640 Acres) Depth (feet) Thickness (feet) TOC (%) Theia-1 Trilobite Australia TVD Total Vertical Depth, OOIP Oil Originally In Place Slide 23

24 EP 493 Resource scale comparison Eagle Ford shale resource (South Texas) 2015 Daily oil production of ~1.6 million barrels per day Depth 2,500m to 3,000m, average thickness 76 m Eagle Ford top holders Finder Goldwyer holding Initial gas-to-oil ratios Eagle Ford wells (Jan June 2014) Source: U.S. Energy Information and Drilling info inc, October 2014 Source: modified after 09 October 2014 Slide 24

25 EP 493 Technical Summary high wet mud gas readings a visible gas haze escaping from the cores at surface fluorescence with strong hydrocarbon odour Post well analysis THEIA-1 TOC POROSITY 1500 m TOC 2.8% high TOC from geochemistry geochemistry indicates light oil (~45º API) with low wax content High porosity (10%) from core geothermal gradient and kerogen maturity indicating peak oil window over-pressured, 1.22 sg (10.15 ppg) geomechanics indicate rocks are prone to vertical fracture propagation Faulting Thickness > 30m Laterally extensive (depositional environment) low clay (no smectite) 1550 m Organic characteristics TOC > 2% Thermal maturity 0.6 < VR < 1.4 Shale pressure (overpressure) Stress regime Rock strength properties Well Test natural fractures TOC 3.1% GOR (> 500) for oil Oil/Gas flow to surface TOC 4.8% 1, m Shale porosity >5% shale permeability >10nD (low density, compressional) (sufficient for completion)? TOC 3.8% Goldwyer III Play Elements SOURCE ROCK PRODUCIBILITY RESERVOIR Mineralogy Preserved Section TGAS 1, m LITH Desorption Section Theia-1 highlights during drilling TOC 3.9% Next Phase Slide 25

26 Next step; 2018 Helios-1, stimulation & flow test Finder risked project investment (AUD) Theia-1 $17 Million, 2015 Drill Helios horizontal well $15 Million, 2018 Hydraulic Stimulation of Helios-1 $11 Million, 2018 Extended well test $ 4 Million, 2018 Total $47 Million Well Head Wallal Sandstone Aquifer not potable Dora Shale 500 m Lower Grant Formation Carribuddy Group Shales 1000 m Nita Formation Carbonates ~650 m of tight Impermeable rock Goldwyer I Shale Goldwyer II Carbonate 1500 m - Goldwyer III Shale Oil & Gas Target Willara Formation Carbonates 2000 m - Canning Basin Permit EP 493 Not to Scale Slide 26

27 Finder a successful private oil & gas company whose people deliver opportunity through knowledge, data & technology 1. Why Finder? 2. Results focussed 3. Proven track record of value creation 4. Technical excellence unlocking new hydrocarbon provinces 5. Diversified portfolio continuing exploration success! 6. Conclusions Slide 27

28 With a sustainable offshore forward business model Finder s offshore assets are located in a stable OECD fiscal regime with supportive state and federal governments all major Permit commitments have been satisfied to date carry in one upcoming offshore well all future drilling efforts are discretionary investing in Finder offers potential risk and cost covered offshore exploration leveraging lower costs in the current oil price environment means Finder can continue to deliver success with the injection of additional funding, eg: discretionary future exploration drilling (~2018) based on 3D defined drill ready prospects offering a ground floor material entry position to proven Operators with success payment = low financial exposure for Finder Slide 28

29 Finder contact details For further information on this presentation please contact: Shane Westlake Chief Executive Officer Aaron Bond Manager - Geoscience a.bond@finderexp.com Phone: Phone: Visit: Website: 9 Richardson Street West Perth WA 6005 The information, statements, opinions, data or other material ( Information ) contained within this document have been prepared by Finder Exploration Pty Ltd ( Finder ) with reasonable care and no representation, warranty, or undertaking, express or implied, is made by Finder in relation to the adequacy, accuracy, completeness, correctness, fairness or usefulness of the Information disclosed herein. Use of the Information shall be at a third parties own risk and third parties should undertake their own independent assessment of the Information and verify all information upon which it intends to rely, to its own satisfaction. Finder accepts no responsibility or liability for any errors or omissions from the Information, however caused. Slide 29