New Zealand Exploration Opportunities. Dr. Chris McKeown GM South East Asia

Transcription

1 New Zealand Exploration Opportunities Dr. Chris McKeown GM South East Asia

2 Disclaimer New Zealand Oil & Gas Limited has prepared this presentation to provide information about certain of the company s projects. This presentation contains interpretations and forward looking statements that are subject to risk factors associated with the oil and gas industry. It is believed that the expectations reflected in the presentation are reasonable but may be affected by a variety of variables and changes in underlying assumptions which could cause actual results to differ substantially from the statements made. This includes but is not limited to: production fluctuations, commodity price fluctuations, variations to drilling, well testing and production results, reserve estimates, loss of market, industry competition, environmental risk, physical risks, legislation, loss of mineral lease tenure, fiscal and regulatory developments, economic and financial market conditions, project delay or advancement, approvals and cost estimates. The company accepts no responsibility or liability for the public's subsequent use or misuse of the information provided. The Company and its Directors, agents, officers or employees do not make any representation or warranty, express or implied, as to endorsement of the accuracy or completeness of any information, statement representations or forecasts contained in this presentation and they do not accept any liability for any statement made in, or omitted from, this presentation. The information presented here does not, in any way, constitute investment advice. It is of a general nature and includes forecasts and estimates based on current knowledge. It is possible that changes in circumstances after the date of publication may impact on the accuracy of the information. New Zealand Oil & Gas Limited strongly advises you to seek independent professional advice before making any investment decisions. 2

3 Why New Zealand? 4 th largest EEZ-ECS in the world, with a maritime jurisdiction ~22x land area Production to date: >1.3 Bboe (~30% liquids) Current rate: >40,000 bpd + ~0.5 Bcfpd Under-explored region Producing Taranaki Basin Frontier basins (with discoveries) now being intensively explored by: Shell Anadarko Woodside Chevron ONGC Statoil OMV Mitsui and others Exceptional terms Tax & royalty (marginal government take 43%) Welcoming and stable regulatory system Unrivalled access to data 3

4 NZOG snapshot Corporate ASX and NZX Listed E&P company Market cap ~US$ 162 million * Cash ~US$ 40 million * Annual revenues ~US$ 75 million Clear Strategy Enduring New Zealand explorer Balanced portfolio Multiple pathways to growth * Feb

5 NZOG key assets Production Offshore Taranaki NZ (NZOG influential in discoveries) 15% of Kupe gas & oil field 27.5 % of Tui area oil fields NZOG 2P reserves of ~9.7 mmboe Indonesia Development under review in Sumatra : including unconventional Exploration NZ exploration permits with identified drilling targets PSC and exploration opportunities in Indonesia Financial, Technical and Operator Capability Significant cash holdings Experienced technical/commercial teams Partner of choice in E&P activities Kaheru Farmin Opportunity Clipper Permit (Barque Prospect) 5

6 Current opportunities PEP (Kaheru) PEP (Clipper)

7 PEP (Kaheru) Drill Ready Proven Oil Play 3D-Defined Shallow Water Quick Connect Potential Resource Target ~50 mmbo Low-Moderate Risk

8 Kaheru Permit (PEP 52181) 312 km 2 permit in the south Taranaki Basin NZOG 35% (Operator) TAG 40%; Beach 25% Permit granted May 2010, expires 2022 Drill by May 2016 Kaheru is a drill-ready thrust-related anticline Analogous to other Taranaki Fault fields On trend with oil & gas fields (Rimu, Kauri, etc) and east of the Kupe oil/gas field Close to shore (~12 km) in shallow water (~25 m) Well permitting and planning completed Close to existing infrastructure with export facilities with quick connect development options Opportunity to farmin through funding share of drilling costs (planned for mid-late 2015) 25% participation available Flexible deal terms Joint farm out with TAG Oil 8

9 Petroleum System Overview Primary reservoir is the Tariki Sandstone Deposited in a submarine fan depositional environment Expected to be near shore facies at Kaheru Secondary reservoir is the Kauri Sandstone Likely deposited in a shoreface environment Intra-formational and top Seals provided by the Otaraoa Fm (marine mudstone) and Manganui Fm (massive bathyal mudstones Source rocks are found in Late Cretaceous early Paleogene terrestrial and marginal marine clastics. 2/04/2015 9

10 Kaheru Prospect (PEP 52181) Oligocene Depth Structure Proven Play Trend Offset by producing fields UUR ~450 mmboe Multiple successful reservoir targets Paleogene & Mesozoic source rocks Kaheru Prospect 4-way dip closure, de-risked following; Improved 3D RTM imaging Revised mapping Structural modelling Sedimentological studies CI 100m Targets Oligocene (Tariki) Pre-Oligocene (North Cape etc.) Miocene (Kauri) reservoir Resource Potential (oil case) Primary Objective(s) P Mean ~50 mmbo + 70 BCF All Objectives P Mean ~75 mmbo BCF 10

11 Kaheru-1 Planning (PEP 52181) Planned TD Cretaceous (4400m TVDss) Kaheru-1 Well Plan (Water Depth 25m) Planned duration 49 days Side-track plan to appraise discovery Expected dry hole cost <$45 million* Jack-up rig in New Zealand now All consents to drill Well and casing design All long lead items Seafloor site survey Well control emergency plan Geomechanical modelling VSP modelling * Including mob-demob 11

12 Kaheru Development (PEP 52181) Scoping development scenarios developed for oil and gas cases for new build facilities; offshore wellhead platform 4 offshore horizontal wells 2 pipelines onshore production station OIL CASE similar to nearby Kupe field (NZOG 15%) Kaheru Field 25m 12km Onshore production station GAS CASE similar to N. Taranaki Pohokura field Rimu onshore oil processing plant First oil/gas by 2019 Potential to connect to existing facilities (production station/tank farms and pipelines) offer faster (and lower cost via tolling agreement) development options Kupe Field (NZOG 15%) 12

13 Kaheru Farmout Process Interested parties will be required to execute a CA prior to receiving detailed technical information Online Dataroom available Now Physical Dataroom available Now Full Kingdom projects supplied to qualified parties Offers open to consideration on first-come basis 13

14 PEP (Clipper) High impact, frontier opening opportunity Offset by gas-condensate discovery Resource potential for LNG project Moderate water depth (800m) Follow-on potential Favourable met-ocean conditions

15 NZOG Strategic position in Canterbury / GSB PEP NZOG 50% (Operator) Beach 50% Covers large Barque Prospect 3D survey completed 2014 Planning Barque-1 well PEP NZOG 100% (Operator) Includes Galleon discovery Seismic completed 2014 Anadarko JV Drilled Caravel-1 in 2014 Anadarko JV extended permit and now acquiring further 3D surveys Shell JVs Working up 3D (4800km 2 ) Drilling decision made -5 PEP (NZOG 30%) Woodside 70% (Operator) Covers multiple large leads 3D survey 1H

16 Clipper Permit (PEP 52717) 3,423 km 2 permit in the Canterbury Basin NZOG 50% (Operator) & Beach 50% Permit granted October 2012 Commitments (3D) fulfilled to mid-2016 Water Depth m Barque Prospect ~800m Favourable met-ocean conditions Gas-condensate discovery (RFT) Significant activity ongoing and planned in adjacent permits (3D and wells) Barque-1 well planned for Participation will be available 2Q2015 Well will satisfy subsequent licence period obligations DST 2240 bcpd & >10mmcfpd Joint farm-out with Beach Energy 16

17 Petroleum System Overview Key intervals are the Herbert Formation sourced by the Pukeiwitahi Coal measures The late Paleocene Tartan Low Stand Wedge, possibly sourced by the Tartan Formation is also a viable lead 17

18 Barque Prospect (PEP 52717) Offset by Galleon gas-condensate discovery Proven hydrocarbon generative basin Galleon CGR 240 bbl/mmcf Barque located in middle of kitchen, with ideal migration focus Barque Prospect 150 km 2 domal closure, de-risked following; 650 km 2 3D survey (recorded 2014) to select well location Regional 2014 detailed petroleum system evaluation and modelling Integrated prospect evaluation (under finalisation) Targets Latest Cretaceous and Early Paleogene sands Tested gas-condensate at Galleon & Clipper Material Resource Potential Multi TCF stand-alone LNG Condensate stripping ( 00s mmbc) Possible oil charge 2014 PSDM 3D BARQUE PROSPECT 150km 2 closure Column height : 400m Porosity > 20%, perm >50mD N:G reservoir sands >80% 18

19 Opportunities Kaheru Farmout available now Barque Participation available 2Q2015

20 2015 Block Offer Opportunity NZOG is keen to talk to companies interested in bidding in the 2015 block offer round in New Zealand Kaheru Farmin Opportunity Bid deadline ~ September 2015 Blocks awarded from December 2015 (effective date April 2016) Clipper Permit (Barque Prospect) 20

21 Want to know more? Chris McKeown GM South East Asia D: M: Dr Mac Beggs Geoscience Advisor Commercial mac.beggs@nzog.com D: M: New Zealand Oil & Gas, Level 20, 125 The Terrace, Wellington 6143, New Zealand Tel: Fax: