Investor Presentation

Transcription

1 April 2013 Investor Presentation US$230 million farmout secures funding for two deep water wells on Mazagan permit, offshore Morocco Pura Vida free carried on drilling of the 1.5 billion barrel (350 mmbo net) Toubkal prospect in Mazagan permit in Q mmbo gross P50 contingent resource at Loba M 1 discovery in Nkembe block offshore Gabon FRONTIER is the fastest way to receive breaking news about Pura Vida Subscribe to receive FRONTIER, our alert service, visit our website at

2 A developing portfolio of highly prospective acreage MAZAGAN Multi-billion barrel resource potential Free carried two well program, first well Q in 3 chance of success Significant drilling activity offshore Morocco commencing Q Producing oil prone basin 80% interest and Operatorship Existing oil discoveries including 20 mmbo P50 contingent resource Sub-salt and pre-salt plays NKEMBE GABON 2

3 Snapshot Issued Capital Ordinary shares (ASX: PVD) 72.0m 20c partly paid shares (paid to 1c) 21.9m Incentive options (35c) 3.0m Incentive options (25c) 1.5m Management Incentives Incentive options (40c) 6.2m Market Capitalisation Fully diluted at $0.45/share Cash Payment on completion of farmout Unpaid Capital Short-Term Loan (payable) $47.1m $1.4m $14.5m $8.0m $6.0m Net Resources Mazagan permit, Morocco mean prospective resource 1,614 mmbo* Nkembe block, Gabon P50 contingent resource 16 mmbo** * Based on 23% interest post-farmout ** 80% net interest RESEARCH COVERAGE Broker Analyst Date Hartleys Fosters Argonaut RBS Morgans Peter Gray Haris Khaliqi Dave Wall Krista Walter Directors Damon Neaves, Managing Director David Ormerod, Technical Director Bevan Tarratt, Non-Executive Chairman 7 Mar Feb Jan Jan 2013 Head Office Melbourne Office Level 1, 89 St Georges Tce Level 2, 480 Collins St Perth WA 6000 Melbourne VIC 3000 t: t: f: f: e: info@puravidaenergy.com.au 3

4 Track record Strong delivery since inception with all stated milestones achieved in 2012 CORPORATE MILESTONES MAZAGAN MILESTONES Award of Mazagan IPO Drop core program Seismic reprocessing Review of prospectivity Acquisition of new project Farmout process - EZDataRoom Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 «CONFIRMATION OF OIL IN DROP CORES «IMPROVE RISKING & ADDITIONAL RESOURCES «UPGRADE TO 5.3 BILLION BARRELS (NET PURA VIDA) «DIVERSIFY PORTFOLIO «SECURE FARMOUT FOR DRILLING SCORECARD Early-entry strategy has generated significant value through farmout Management team has demonstrated its ability to execute strategy 2013 will see (1) Significant drilling activity in Morocco leading into Mazagan wells (2) Value-creating work program on Nkembe block (3) Continuation of growth strategy through new ventures 4

5 2013 look ahead Multiple value-adding catalysts in near term 5

6 Management team Damon Neaves MANAGING DIRECTOR David Ormerod TECHNICAL DIRECTOR Bevan Tarratt NON-EXECUTIVE CHAIRMAN Formerly BDM for Tap Oil Led Business Development, Commercial and Legal teams during 8 year tenure at Tap Several major acquisitions, many involving entry into new countries: Thailand, Ghana, Indonesia, Brunei, Philippines, Australia & New Zealand Established highly profitable domestic gas business Upstream project management experience Legal/corporate advisory background Over 25 years industry experience Participated in several major discoveries over his career: Mad Dog, Atlantis and Neptune (deep water Gulf of Mexico (GoM)) and Stybarrow (NW Shelf) Responsible for Karoon Gas entry into Brazil which saw a period of dramatic growth in shareholder value Experience with BHPBP, Woodside, Stirling and Tap in areas as diverse as the GoM, West Africa, SE Asia and the NW Shelf Leads a strong technical team at Pura Vida Accounting industry background focused on small/mid caps Founding partner of Hemisphere Corporate Equity markets experience with Patersons Securities Managed IPOs, secondary raisings and re-structuring of numerous listed companies Director of a number of Australian public companies Pura Vida has assembled a management team with extensive commercial, technical and A&D expertise with a track record of exploration success and value accretive acquisitions Seeking early entry opportunities with exceptional potential for growth in value 6

7 Management team (cont) Simon Horan SENIOR GEOLOGIST Andrew Morrison NEW VENTURES MANAGER Phil Ormerod DRILLING MANAGER Extensive operational experience in South Africa, China and Australia Brings development and appraisal experience from geological perspective having worked both carbonate and clastic reservoir systems Extensive petrophysical experience with tight and conventional reservoirs and imaging of reservoir facies Experience with BHPBP, Schlumberger and Molopo 25 years experience in the oil and gas industry in both a technical and managerial capacity Significant exposure to exploration, appraisal and development experience from an operating capacity Held senior technical roles with Cue Energy Resources Limited, Karoon Gas Australia Ltd and BHP Billiton Petroleum Over 25 years experience in the oil & gas sector Managed drilling operations in Tunisia, Gabon, Angola, S.E. Asia and Australia British Gas worldwide testing engineer Experience with BG, Texaco, Shell and other oil majors Operational and technical team utilises the latest techniques and cutting edge technologies 7

8 MAZAGAN PERMIT, MOROCCO Mazagan Permit, Offshore Morocco Farmout secures funding for drilling program targeting multiple plays Pura Vida free carried Secures up to US$215 million of exploration expenditure with Pura Vida free carried, including a firm commitment to fund and drill two wells PXP is a capable and experienced operator Drilling will test multiple play types, including the giant Toubkal prospect that has a mean resource potential of 1.5 billion barrels Farmout conditional on regulatory approval by no later than 17 September. Regulator requesting ministerial approval with process expected to complete by mid-year Payment of US$15 million on closing CAP JUBY OILFIELD 8

9 2013/14 drilling program offshore Morocco 9-10 wells to be drilled offshore Morocco (including Pura Vida s two wells) Up to 3 rigs operating concurrently Drilling activity and news flow to commence Q Any discovery will have positive implications for Mazagan Pura Vida s first well in Q will target the giant Toubkal prospect billion barrels (mean) Multiple targets/wells = high chance of finding oil 9

10 Seismic amplitudes on Toubkal WATER AMPLITUDE SCALE OIL SALT LOW (WATER) GAS MODERATE (OIL) HIGH (GAS) SEISMIC AMPLITUDE MAP OIL/WATER CONTACT RESERVOIR 150 metre gross column High quality 3D seismic Direct Hydrocarbon Indicators (DHIs) Amplitude response conforms to structural closure SEISMIC SECTION 10

11 CHANCE OF SUCCESS Significant prospectivity Data source: DeGolyer & MacNaughton Independent resource estimates prepared by recognised industry leader, DeGolyer & MacNaughton Three independent play types with total mean prospective resource of 1.6 bn bbl (net to Pura Vida) Drilling inventory consists of multiple prospects with a chance of success ranging from 19% to 34% NPV/barrel of around US$20 PROSPECTIVE OIL RESOURCES (RECOVERABLE) TRENDS MEAN (mmbbl) Pg* Miocene (including Toubkal) 3, % Lower Cretaceous toe thrust % Lower Cretaceous inversion anticline 2,600 19% TOTAL 7,017 Avg. 26% NET TO PURA VIDA (23%) 1,614 Avg. 26% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Toubkal Zagora Amchad Tafraoute Amtoudi East Amtoudi West Toubkal Jbel Ayachi Jbel Musa Jbel Lakhdar Jbel Talmest Jbel Aroudane Jbel Tadrart Jbel Azavza GROSS PROSPECTIVE RESOURCE (MEAN) 11

12 NKEMBE BLOCK, GABON Nkembe block Pura Vida s second offshore oil project in a proven oil producing basin 80% interest and Operatorship in proven oil producing basin 1,000 km 2 of existing 3D seismic Exposes Pura Vida to a wide variety of exploration plays associated with salt basins Major operators in country include: Total, Shell, Tullow, Petrobras, Perenco & Ophir Low risk strategy to generate value from Nkembe with several near-term catalysts: - resource certification - detailed review of historical seismic and drilling - new multi-azimuth 3D seismic - drilling 12

13 Mature, oil prone basin Surrounded by producing oil fields Potential for near-term appraisal of 20 mmbo Loba M 1 discovery LANCON Significant upside in pre-salt and sub-salt oil plays Gabon and Angola are conjugate to Brazil where several billion barrels have been discovered in pre-salt in recent years Pura Vida will use modern seismic technology to unlock new potential in a proven basin Recent discoveries in Gabon made by Mitsubishi in post-salt and Harvest in pre-salt HJN MOUVENI CAPELAN 20 MMBO DISCOVERY LOBA Located in shallow water with nearby infrastructure means the economics for commercialisation of the Loba M 1 oil field are very attractive 13

14 OIL COLUMN 20 mmbo Loba M 1 discovery LOBA RESERVOIR DISCOVERED IN 1976 BATANGA FORMATION (PRODUCING NEARBY) 150 METRE GROSS COLUMN/ 46 METRE NET DRILLED ON EDGE OF STRUCTURE NOW DEFINED ON 3D 18.4% POROSITY 33 API OIL RECOVERED 20 MMBO (P50) GROSS RECOVERABLE CONTINGENT RESOURCE LOBA M 1 PETROPHYSICAL LOG 14

15 Loba M 1 Discovery in post salt Loba M 1 tested the geology above the salt The diagram (right) illustrates the Loba M 1 well path which found a shallow oil zone Deeper sub-salt reservoirs are known in the area with traps interpreted to exist below the salt. There are two major salt plays in Gabon, the sub-salt (shallow) and pre-salt (deeper) The pre-salt play has delivered multi-billion barrels in Brazil and Angola Pre-salt reservoirs are in production onshore Gabon and Harvest recently announced a presalt discovery offshore Sub-salt oil plays have produced billions of barrels in the Gulf of Mexico and West Africa 46 metre oil Sub-salt potential traps Pre-salt potential traps 15

16 Why invest? High-impact, fully funded drilling program Pura Vida free carried for 2 wells, first well Q targeting 350 mmbo net to Pura Vida Significant value in success case One in three chance of success of Toubkal prospect (Q1 2014) Near-term catalysts Completion of Mazagan farmout and receipt of US$15 million (Q2 2013) Announcement of timing and targets of high impact Mazagan drilling program Drilling on neighbouring blocks offshore Morocco with activity commencing Q Certification of resource potential of Nkembe block Leverage & Upside Tight capital structure (72 million shares on issue) provides investors with significant leverage in success case Mazagan prospective resources of 1.6 billion barrels (net) with further resources to be reported for Nkembe block Strategy successful in generating significant value for Mazagan in 2012 to be replicated on Nkembe block in 2013 Low risk strategy to generate value from Nkembe block Growth and diversification Industry experienced board and management team with a demonstrable track record of growth in shareholder value through exploration success and value accretive acquisitions High quality exploration portfolio spanning frontier acreage with significant resource potential to acreage in a proven, oil prone basin 16

17 Disclaimer Certain statements contained in this presentation, including information as to the future financial or operating performance of Pura Vida Energy NL (Pura Vida) and its projects, are forward-looking statements. Such forward looking statements: are necessarily based upon a number of assumptions and estimates that, while considered reasonable by Pura Vida, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies; involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements; and may include, among other things, statements regarding targets, estimates and assumptions in respect of production, prices, operating costs, results, capital expenditures, reserves and resources and anticipated flow rates, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions. Pura Vida disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. All forward-looking statements made in this presentation are qualified by the foregoing cautionary statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and accordingly investors are cautioned not to rely on forward-looking statements due to the inherent uncertainty therein. Persons compiling information about hydrocarbons The information in the presentation has been prepared using the internationally recognised Petroleum Resources Management System to define resource classification and volumes by Mr David Ormerod BSc. Geology (Hons) a Geologist who has over 25 years experience in petroleum geology, geophysics, prospect generation and evaluations, prospect and project level resource and risk estimations. Mr Ormerod is a full time employee of the Company and has consented to inclusion of the resource estimates in this report in the form and context in which it is included. The resource estimates above are in accordance with the standard definitions set out by the Society of Petroleum Engineers, further information on which is available at END