References to dollars, cents or $ in this presentation are to Australian currency, unless otherwise stated.

Transcription

1 December 2012

2 The information in this presentation is in summary form and should not be relied upon as a complete and accurate representation of New Guinea Energy Ltd and or its various business activities. While management has taken every effort to ensure the accuracy of the material in the presentation, the presentation is provided for information purposes only. No representation or warranty, express or implied, is or will be made by New Guinea Energy or its officers, directors, employees or advisers as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in, or implied by, this presentation, or as to the reasonableness of any assumption, forecasts, prospects or returns contained in, or implied by, this presentation or any part of it. The presentation may include information derived from third party sources that has not been independently verified. This presentation should be read in conjunction with the 2011 Annual Report of New Guinea Energy and other periodic and continuous disclosure announcements that have been lodged by New Guinea Energy with the Australian Securities Exchange. This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of New Guinea Energy and certain plans and objectives of the management of New Guinea Energy. Forward-looking statements can generally be identified by the use of words such as project, foresee, plan, expect, aim, intend, anticipate, believe, estimate, may, should, will or similar expressions. Indications of, and guidance on, production targets, targeted output, development or timelines, exploration or expansion timelines, infrastructure alternatives and financial position and performance are also forward-looking statements. Any forecast or other forward-looking statement contained in this presentation involves known and unknown risks and uncertainties and may involve significant elements of subjective judgment and assumptions as to future events which may or may not be correct. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of New Guinea Energy, and may cause actual results to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements. The forward-looking statements included in this presentation involve subjective judgment and analysis and are subject to significant business, economic and competitive uncertainties, risks and contingencies, many of which are outside the control of, and are unknown to New Guinea Energy. Given these uncertainties, you are cautioned not to place undue reliance on forward-looking statements. These forward-looking statements are based on information available to us as of the date of this presentation. Except as required by law or regulation (including the ASX Listing Rules) we undertake no obligation to update these forward-looking statements. This presentation is provided for informational purposes only and is subject to change without notice. Subject to any obligations under applicable laws, regulations or securities exchange listing rules, New Guinea Energy disclaims any obligation or undertaking to release any updates or revisions to the presentation to reflect any change in expectations or assumptions. Nothing in the presentation should be interpreted to mean that future earnings per share of New Guinea Energy will necessarily match or exceed its historical published earnings per share, or that there has been no change in the affairs of New Guinea Energy since the date of the presentation. This presentation does not constitute investment, legal, taxation or other advice and the presentation does not take into account your investment objectives, financial situation nor particular needs. You are responsible for forming your own opinions and conclusions on such matters and should make your own independent assessment of the information contained in, or implied by, this presentation and seek independent professional advice in relation to such information and any action taken on the basis of the information. References to dollars, cents or $ in this presentation are to Australian currency, unless otherwise stated. The information in this presentation that relates to NGE s resources is based on information compiled by Mr Dan Kendrick, an employee of NGE with over 15 years experience as a practising geologist. Mr Dan Kendrick consents to the inclusion of this information in this presentation in the form and context in which it appears. 2

3 Contents 1. Investor Highlights 2. PNG World Class E&P Destination 3. Capital Structure 4. Senior Management and Board 5. Strategy and Development Plan 6. Licence Overview 7. Licence Details 8. Milestones Achieved/Planned 9. Conclusion 3

4 INVESTOR HIGHLIGHTS Attractive Exploration Portfolio value backed by external transactions 6 onshore licences 37,500km 2 (9.3M acres), % interest Balanced portfolio of both oil and gas prospects with >8,500MMboe unrisked PIIP Aerogravity, magnetics surveys, and > 600km seismic 1Q2012 transactions value NGE s equity in 3 licences at > $120m (with significant upside potential) De-risking with Majors PPL 268 and PPL 269 farmed-in by Talisman and Mitsubishi PPL 277 Sale and Royalty to ExxonMobil and Oil Search Part of NGE growth now linked to the expansion of the $19bn PNG LNG project Retain upsides without the risks nor capital obligations Aim to replicate strategy on 100% owned PPL 265, PPL 266 and PPL 267 Drill opportunities in PPL 265 and PPL 266 and seeking JV partners Experienced Management, Low Cost Execution Capability Extensive Oil and Gas experience with local focused team Asset specific strategies to realise value and maintain upside potential Opportunities to replicate strategy across Asia Potential to diversify portfolio with near-term operational assets 4

5 PNG WORLD CLASS E&P DESTINATION Highly Prospective 25Tcf gas discoveries to date ExxonMobil consortium: US$19bn PNG LNG under construction TOTAL, Shell, Mitsubishi, and Pacific Rubiales arrived in last 12 months Pro Development Global LNG demand growth of 6% p.a. for the rest of this decade I Asia is 60% of global LNG trade II with regional demand forecast to continue to outstrip supply Limited portfolio acreage available in Asia Excellent fiscal terms, ranked 8 th in the world Close Historical Ties with Australia Australia is PNG s largest aid donor; aid of $482m 1II Major investment by Australian energy and mining sectors LNG Exports from 2014 I Shell: ASEAN Energy Business Forum, Brunei, September 21, 2011 II BP Statistical review of world energy 2011 III Ausaid.gov.au 5

6 PNG OIL & GAS INDUSTRY PARTICIPANTS Chinese Petroleum Co 6

7 OVERVIEW OF PNG PLAYS 4+Tcf 10+Tcf Gas/LNG Reserves discoveries 9Tcf Oil/Condensate NGE Licences Talisman led Exxon led PNG LNG InterOil led 1Tcf 7

8 WESTERN PROVINCE EXPORT ROUTES 1 Talisman Energy Western Province Exploration Update 1 December, PNG Petroleum Seminar 8

9 CAPITAL STRUCTURE ASX Code: NGE # of Shares Listed: 846,541,193 (ASX:OTCQX = 50:1) Market Cap: A$24 million Latest Cash Position: A$3.38 million (as at 30 September 2012) Fully funded for 2012 Trading Statistics 12 Months As at 30/11/12 $0.029 High $0.087 Low $0.027 Options: 2,000,000 $0.25 before 28 December ,000,000 $0.25 before 27 December ,700,000 $0.45 before 1 October ,500,000 $0.45 before 27 July ,000 $0.45 before 7 February 2016 Highest Daily Volume (20/04/12) 13,784,113 Rights: 15,000,000 exercisable on 1 July 2012 at nil consideration with an expiry of 1 October 2014 Convertible Bonds: A$21,537,813 in Principal of Convertible Equity Bonds redeemable at $0.20 with a five year term maturing 30 May 2016 Significant Shareholders: BUTTONWOOD NOMINEES PTY LTD 13% CREDIT SUISSE SECURITIES (EUROPE) LTD 6.5% ASIA IMAGE LIMITED 5.5% 9

10 NGE CORPORATE DIRECTORY STRONG ENERGY & PNG EXPERIENCE MANAGEMENT Grant Worner - Chief Executive Officer A chemical engineer who spent 22 years with BP in E&P, Trading, Refining, and Marketing, including 12 years international experience in Belgium, the United Kingdom and the United States of America. Dan Kendrick - General Manager, Technical and Operations A structural geologist with over 15 years experience including extensive experience in both Papua New Guinea and Irian Jaya. John-Paul McDonald - Project Manager Prior to joining New Guinea Energy Ltd, John Paul had 8 years experience working for a number of trading companies in PNG including Collins & Leahy in the Highlands and Island regions and Steamships Trading in Port Moresby. His role is operational, primarily managing company assets, employees, logistics and budgets. BOARD Michael Arnett - Chairman A lawyer with over 20 years experience in capital raising and M&A in the mining, oil and gas sector. A director of NRW Holdings Limited and Queensland Energy Resources Limited. Sir Michael Bromley KBE - Non-Executive Director Over 40 years commercial experience in PNG rising to MD of Collins and Leahy (sold to Swire). Past board memberships in Air Niugini, Orogen Minerals, and Chemica Limited and current director of Heli Niugini Limited, Steamship Trading Company Ltd,Maps Tuna Limited and Waratah Resources Limited. Andrew Kent - Non-Executive Director Over 40 years international equities and media experience. Andrew Martin - Non-Executive Director Extensive experience in the services and supplies sector of the resources industry in Australia and his previous directorships include, Sydney Gas Limited, Sunshine Gas Limited and Ord River Resources Limited. Andrew Young - Non-Executive Director Extensive oil and gas industry experience having held technical, management and board positions in major and small E&P and contract service companies. A Director of Cue Energy Resources Ltd, Real Energy Corporation Limited, Cliq Energy Berhad and NSCA Limited. Previously a director of Anzon Australia Limited, Anzon Energy Limited, Digitalcore Pty Ltd and Century Drilling Ltd. 10

11 STRATEGY AND DEVELOPMENT PLAN Achievements to Date Acquired significant asset base in Papua New Guinea 6 blocks covering 37,500Km 2 (9.3M acres) De-risk exploration acreage through aerogravity, magnetics surveys, and > 600km seismic 340km of seismic under NGE Operatorship at a cost < $35k/km, compared to benchmark costs of $90k/km Panakawa-1 Exploration well in PPL 267 non commercial gas Farm-out PPL 268 and 269 to Talisman/Mitsubishi significantly de-risking the exploration activities Siphon-1 Exploration well in PPL 269 tight sands Sale of PPL 277 to ExxonMobil and Oil Search: $15m up front, another $20m upon a Petroleum Development Licence, and ongoing royalty. Sale subject to Ministerial approval. (total nominal value dependent on size of recoveries:100bcf ~ $48m, 1Tcf ~ $174m, 2Tcf ~ $312m) Future Strategy Replicate strategy on 100% owned PPL 265, PPL 266 and PPL 267 to identify drillable targets and de-risk exploration activities with others Fund activities with Talisman/Mitsubishi on PPL 268 and PPL 269 in 2013 Replicate success of acquisition, mapping and partnering with majors into Asia (ex-png) Diversify portfolio with acquisition of near-term operational assets 11

12 EXPLORATION PORTFOLIO 6 onshore licences, 37,500km 2, % interest Balanced portfolio of both oil and gas prospects > 8500MMboe unrisked PIIP I 1Q 2012 transactions value NGE s equity in just 3 licences at more than $120m Predominantly Oil Plays Predominantly Gas Plays Licence Unrisked PIIP (MMboe) Prospects / Leads NGE Value (US $m) NGE Equity Licence Unrisked PIIP (Tcf) Prospects / Leads NGE Value (US $m) NGE Equity PPL265 > % PPL % PPL Royalty Will be 0% PPL % PPL268 II % PPL269 II % 1 Undiscovered Petroleum Initially in Place 1I Mitsubishi Farm-in and remaining Talisman Farm-in carry 12

13 NGE NEAR-TERM ACTIVITY PPL 277 Sale and Royalty to ExxonMobil and Oil Search (subject to Ministerial approval) Seismic acquired in 2012; and Drilling Trapia-1 in neighbouring PRL 11 in 3Q Assuming economic targets are identified from earlier seismic acquisition 13

14 PPL 277 SALE AND ROYALTY PPL 277 Context Licence covering 8,022km 2 in the mountainous PNG Highlands parallel to PNG LNG infrastructure Highly prospective with potentially 10,000Bcf PIIP 1 but very expensive, even for PNG standards Exploration involves high technical and social risks Sale and Royalty Rationale Link part of NGE s growth to the expansion of the ExxonMobil led PNG LNG project Without taking the risks and no capital obligations Retain exploration upsides and potential source of ongoing revenue Early cash to finance other exploration activities NGE Value II $15m initial sale + $20m on grant of Petroleum Development Licence + Royalty Nominal value to NGE for recovered petroleum from PPL 277 in table below: 1 Undiscovered Petroleum Initially in Place 1I Applying current economic parameters and assuming factors and contingencies which are outside NGE s control 14

15 PPL ACTIVITY Seismic acquisition PRL11 Trapia-1 exploration well by ExxonMobil and Oil Search Gain government approvals for work obligation variation and licence extension 2012 Seismic PNG LNG infrastructure to Kutubu and Port Moresby 15

16 NGE NEAR-TERM ACTIVITY PPL PPL / PPL / PPL (Talisman Operated) Seismic Seismic in 2011; in 2011; Seismic Seismic and and reprocessing 2012; in 2012; Mitsubishi farm-in farm-in 2012; in 2012; Significant discoveries in in neighbouring licences licences in 2012 in Assuming economic targets are identified from earlier seismic acquisition 16

17 PPL 269 LICENCE April 2012 potential 650m gas column Aug Bcf / 54MMBbl Highlights 2000MMboe unrisked PIIP 1 32 prospects and leads Predominantly a gas play NGE Activity (Talisman Operated) Regional seismic acquired in 2011 Siphon-1 Exploration well drilled as technical success but not commercial Seismic reprocessing to identify drill location Regional Activity PRL3 P nyang (1-2Tcf) Appraisal well 1H12 PRL21 Elevala and Ketu Appraisal wells 1H12 PRL4 Stanley Liquid Stripping Plant FID Mitsubishi farm-in 1H12 1 Undiscovered Petroleum Initially in Place 17

18 PPL 268 LICENCE Aug Bcf / 54MMbbl Highlights 160MMboe unrisked PIIP 1 5 prospects and leads Southern margin of Cecilia Trough gas kitchen Predominantly a gas play NGE Activity (Talisman Operated) Regional seismic acquired in 2011 Regional Activity PRL21 Elevala and Ketu Appraisal Wells Reservoir potential upgraded by recent Puk Puk-1 and Douglas-1 gas discoveries on trend Talisman gas aggregation strategy Mitsubishi farm-in Proximity to LNG route 1 Undiscovered Petroleum Initially in Place 18

19 NGE NEAR-TERM ACTIVITY Macadamia circa 36km 2 Jerai North circa 21km 2 PPL 265 / PPL 266 / PPL 267 (NGE Operated) Seismic in PPL 265 / 266 in 2012; Licence extension approval; Farm-out; If needed, further de-risk; Contingent on above, drill in PPL 265 / Assuming economic targets are identified from earlier seismic acquisition 19

20 PPL 266 LICENCE Macadamia circa 36km 2 PPL 235 Highlights 360MMboe unrisked PIIP 1 1 drillable prospect and 6 leads Predominantly a gas play NGE Activity Regional aerogravity data, seismic in 1H12 Licence extension approval Looking to Farm-out Further de-risk if needed, and Contingent on above, drill Regional Activity Reservoir potential upgraded by recent Puk Puk-1 and Douglas-1 gas discoveries on trend PPL 235 Weimang-1 Exploration Well 1H12 PPL 235 Puk-Puk-2 Appraisal Well 2H12 Proximity to potential LNG route 1 Undiscovered Petroleum Initially in Place 1I Assuming economic targets are identified from earlier seismic acquisition 20

21 PPL 265 LICENCE Highlights >2000MMboe unrisked PIIP 1 13 leads Predominantly an oil play NGE Activity 2009 aerogravity and magnetics survey 94km seismic in 1H12 Licence extension approval Looking to Farm-out Further de-risk if needed, and Contingent on above, drill Jerai North circa 21km 2 1 Undiscovered Petroleum Initially in Place 21

22 PPL 267 LICENCE Highlights 1700MMboe unrisked PIIP 1 9 leads 35 API oil from seep identifies oil play in foreland Predominantly an oil play NGE Activity 2006 and 2008 seismic acquired over Panakawa Prospect with surface seep flowing at 5 bbls/day Well spudded in June 2010 and was plugged and abandoned Residual gas shows over 150m, significant C6+ Regional Activity 100km trend of oil seeps identified Proximity to LNG route 1 Undiscovered Petroleum Initially in Place 22

23 DRILLING RIG Drilling Rig Context Unprecedented level of drilling activity - 8 wells in 2011 in the Western Province alone Few suitable, available drilling rigs in the region Constrained drilling activity and high costs Mitigation NGE a 50% JV partner owning a fit-forpurpose drilling rig optimised to move with a medium-lift helicopter in loads of less than four tons Further strengthens NGE s strategic low cost operations advantage Revenue Source Becomes an additional source of revenue when used by the broader PNG oil and gas industry 23

24 INVESTING IN THE COMMUNITY Context 7 million people 80% rural population About 30 rural doctors NGE, QRME, and Hope4Health helping PNG with Rural health education Clinical placements Teaching literature Clinical equipment Clinical literature 24

25 MILESTONES ACHIEVED / PLANNED Update 25

26 Summary Well positioned in PNG 37,500km 2 of land, surrounded by significant discoveries and Oil and Gas majors Potential Upside Multiple drill targets and leads 8500MMboe prospective resources PPL 277 sale to ExxonMobil and Oil Search provides validation of valuation, further nearterm upside and de-risks Highlands drilling programme. Royalty offers exposure to upside potential. Drilling rig revenue Strong Management Team and Focussed Strategy Extensive experience in PNG and Oil and Gas Exploration and Development Control over drilling through JV ownership of drill rig Considering further acquisitions to diversify portfolio across Asia 26

27 NEW GUINEA ENERGY CONTACT DETAILS Sydney New Guinea Energy Ltd Suite 401 Level Loftus St Sydney NSW 2000 T: +61 (0) F: +61 (0) W: E: office@ngenergy.com.au Port Moresby New Guinea Energy Ltd Level 5 Pacific MMI Building Champion Parade Port Moresby PNG T: F: USA Cooper Global Communications 245 Park Ave., 39th Fl. New York, New York P: (212) F: (212) E:jzimmons@cgc-us.com 27