Cooper Energy Limited Oil Field Appraisal Opportunity

Transcription

1 Cooper Energy Limited Oil Field Appraisal Opportunity May 2011 Tunisia Hammamet West Oil Field Bargou Exploration Permit Offshore Gulf of Hammamet Cooper Energy is offering the opportunity to participate in the appraisal of a significant oil accumulation (P50 gross contingent resources 111 MMbbl) in a permit that has substantial follow up exploration potential. The opportunity exists to acquire a working interest of up to a 35-45% in the Hammamet West Field and Bargou Exploration Permit. A wider strategic collaboration across Cooper Energy s entire Tunisian portfolio can be discussed as part of a farm-in to Hammamet West.

2 Cooper Energy Hammamet West Oil Field Appraisal Bargou Exploration Permit Cooper Energy Limited ( Cooper ) has engaged FirstEnergy Capital LLP ( FirstEnergy ) as its exclusive financial advisor to seek a partner for the appraisal and subsequent development of the Hammamet West Oil Field, offshore Tunisia. Key Opportunity Highlights Opportunity to partner with Cooper on an exciting appraisal project and subsequent development of a discovered oil resource, with potentially significant exploration upside Hammamet West Field covered by recently acquired high resolution 3D seismic processed using PSTM and PSDM. Well is planned later in 2011 to prove commerciality Comprehensive fracture characterisation studies have been carried out to further understand the field potential using image logs and attribute analysis of recent 3D PSDM seismic Operator estimated Hammamet West Contingent Resources of 111 MMbbls (P50 Birsa & Abiod base case) over two play levels Acreage located in an area surrounded by proven and established oil fields and developments. Hammamet West considered analogous to Eni s producing Maamoura Field and the producing Sidi El Kilani Field) Development concept incorporates an unmanned offshore platform tied back to onshore processing facility via a subsea multiphase pipeline (similar to Maamoura Field) Independently verified (by RPS Energy) portfolio of largely independent leads and prospects in the Bargou Permit, comprising both proven and new plays with Prospective Resources in excess of 600 MMbbls (gross unrisked) Operator (Cooper) has a strong management and technical team with 20+ years in-country experience and expertise. Local in-country office and General Manager Potential to partner Cooper in a broader Tunisian portfolio beyond the Bargou Exploration Permit Page 2

3 Asset Overview Hammamet West Oil Field Appraisal Project Contingent Resources 111 million barrels of oil (Base Case P50) P&L Portfolio Cooper Energy 85% (operator) Jacka Resources Ltd. (15%) Hammamet West oil field appraisal project located in the northern portion of the Bargou Exploration Permit in the Gulf of Hammamet. The field is located 80 km south-east of Tunis and 15 km from the coast of Cap Bon. Water depth is approximately 50 metres Stratigraphy Hammamet West-1 drilled in 1967 and encountered oil fluorescence and odour from core in the Birsa Sandstones Hammamet West-2 drilled in 1990, 1.8km south-west of the Hammamet West-1 well to target the Abiod Formation in an interpreted structurally high location. Two tests, DST#1 and DST#2, conducted on the Abiod Formation recovered oil (33 API and 27 API, respectively), which in conjunction with recent petrophysical analysis, indicates the presence of an 190 m oil column Page 3

4 New Data 3D PSDM Processing & Fracture Characterisation Studies Hammamet West covered by 205km2, 80 fold high resolution 3D seismic, acquired in Following initial Pre-stack Time Migration ( PSTM ) processing, a Pre-stack Depth Migration ( PSDM ) processing was carried out to improve subsurface depth mapping, and mitigate the effects of signal attenuation and ray path distortion resulting from shallow structuration and velocity inversions within the section The PSDM processing sequence commenced in late Whilst interpretation is ongoing interim PSDM products indicate significant imaging improvement with the PSDM. Substantial effort has been applied to understand the chalky mudstone wackestone of the Abiod Formation. Observations made on previous welltests indicate that when fractured very high production rates can be acheived (as seen in the nearby analogous Maamoura and Sidi El Kilani fields). A fracture characterisation study has determined fracture orientations from image logs in the Abiod Formation at Hammamet West and nearby Jaafar-1 well The study confirmed that the Abiod Formation is indeed fractured at the Hammamet West Field. Attribute analysis of the 3D PSDM seismic has confirmed the distribution and orientation of fractures within the Abiod Formation Page 4

5 Birsa Formation Reservoir Birsa Formation sandstones are the most productive proven reservoirs in the Gulf of Hammamet exhibiting excellent reservoir properties, with porosities characteristically ranging from 20-35% and permeability in the order of md At Hammamet West, the Birsa sands lie at the base of the Birsa Formation, with an 11 metre sandstone unit intersected in Hammamet West-1 from 1457 to 1468 metres Abiod Formation Reservoir The deeper reservoir at Hammamet West is the fractured limestones of the Abiod Formation. The Abiod Formation produced 3,525 bopd on test from Maamoura Est-1 and bopd at Zinnia-1. Further afield, the most significant oil production from fractured Abiod Formation limestones is at the Sidi El Kilani (SLK) Field which is located in the North Kairouan Concession approximately 190 kilometres south of Tunis Deliverability of this reservoir is dependent upon the development of fracture porosity. A detailed image-log based fracture characterisation study of the Abiod Formation was undertaken on the Hammamet West-2 and Jaafar-1 wells. Both wells indicate that substantial natural fracturing of the Abiod Formation has taken place Additionally, enhanced resolution associated with the PSDM 3D seismic data at the Abiod Formation level has enabled prediction of fracture density within the Abiod Formation across the field. The HW3D PSDM curvedness attribute has been utilised to determine likely fracture distribution and density within this reservoir Volumetrics * In Place Reservoir Case P90 P50 P10 Birsa Fm equiprobable spill between HW-1 ODT & HW-2 WUP Abiod Fm Low Case low fracture Φ, 3090mSS ODT Base Case base case fracture Φ, 3090mSS ODT High Case base case fracture Φ, 3090mSS full to spill ,607 Contingent Resource Reservoir Case P90 P50 Source: Cooper Energy P10 Birsa Fm equiprobable spill between HW-1 ODT & HW-2 WUP Abiod Fm Low Case low fracture Φ, 3090mSS ODT Base Case base case fracture Φ, 3090mSS ODT High Case base case fracture Φ, 3190mSS full to spill Source: Cooper Energy * Senergy IPR (May 2011) estimates the oil in place range as MMbbls Page 5

6 Appraisal Well Design & Cost 3,200 Metres Total Vertical Depth, 500 Metres Horizontal Section Water depth is 50m at the proposed well location, within the water depth limits of a smaller class jackup rig A deviated pilot hole is planned to evaluate the Birsa and Abiod Formation targets. A subsequent sidetrack to horizontal is planned for the Abiod Formation. The horizontal well will then be production tested Total planned well duration is 67 days to drill and test at a total estimated cost of US$27MM (100% Project) A full well design has been completed and the prognosed well path is shown in the diagram to the right Development Concept Unmanned Offshore Platform Conceptual Development Plan Similar to that of the Maamoura Field Oil from the eight (8) wells (2 Birsa / 6 Abiod) is produced via an unmanned platform, and evacuated via an onshore processing plant and offshore oil export facility The key items are: Unmanned jacket with water separation and compression Low pressure (Birsa) and high pressure (Abiod) process trains Processed water discharge Multiphase 10 subsea pipeline to shore 4 subsea gas lift pipeline from onshore plant to platform Shore based oil processing and 50,000m 3 storage 16 subsea crude export pipeline & CALM offtake buoy Gas export to local infrastructure Page 6

7 Prospectivity Extensive Exploration Prospects And Leads Portfolio Deep portfolio of largely independent prospects and leads to be matured by further seismic and studies Large number of independent prospects and leads in water depths less than 100 metres Mix of proven and new plays Large undrilled structures PSC PSC with favourable terms Bargou Permit Prospectivity Royalties paid from ETAP s share of past cost recovery income All due taxes are paid from ETAP s share of past-cost recovery income Profit oil allocated on a Profit/Investment ratio system Permit is in good standing Initial work commitments have been fulfilled End of initial exploration period April 2013 with 2 subsequent renewal periods of 3 years each Page 7

8 Offering Opportunity to participate in the appraisal and subsequent development of the Hammamet West Oil Field, and gain exposure to an extensive portfolio of identified prospects and leads in the Bargou Permit. Cooper envisages entering either into a single transaction for up to a 45% P.I. or multiple transactions involving lower interest levels. Cooper s preference is for interested parties to structure a proposal to acquire an interest in the licence by: Paying over and above the working interest level share of the drilling and testing costs for the Hammamet West-3 appraisal well Paying a pro-rata share of back costs In addition to the commercial terms proposed, Cooper will also consider the characteristics of the incoming party (technical expertise and financial strength, etc.) Cooper Energy is also prepared to have a broader discussion across other elements of its Tunisian portfolio. Transaction Process Having signed a Confidentiality Agreement, interested parties will be provided with a Management Presentation and access to the Online Data Room. A Physical Data Room with access to a seismic workstation will also be available at FirstEnergy s London office and Cooper Energy s Perth office. Cooper Energy is seeking firm proposals by 11 July Cautionary Statement This document contains statements about expected or anticipated future events and financial results that are forwardlooking in nature and, as a result, are subject to certain risks and uncertainties, such as legal and political risk, civil unrest, general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events and management s capacity to execute and implement its future plans. Actual results may differ materially from those projected by management. For more information please contact: Mark Llamas Managing Director Acquisitions & Divestitures +44 (0) [email protected] Rolf Bakker Director & UK Co-Head Acquisitions & Divestitures +44 (0) [email protected] Paul Bannister Associate Acquisitions & Divestitures +44 (0) [email protected] Romain Bohbote Associate Acquisitions & Divestitures +44 (0) [email protected] UNDER NO CIRCUMSTANCES SHOULD COOPER PERSONNEL BE CONTACTED DIRECTLY WITHOUT THE PRIOR KNOWLEDGE AND APPROVAL OF FIRSTENERGY All images contained in this document are sourced from the Operator unless stated otherwise FirstEnergy Capital LLP is a limited liability partnership registered in England and Wales. Registration number: OC Registered Office: 85 London Wall, London EC2M 7AD, United Kingdom Authorised and regulated by the Financial Services Authority