INVESTOR PRESENTATION UPDATE JUNE 2008

Transcription

1 LEVEL 1, 47 COLIN STREET WEST PERTH WA 6005 AUSTRALIA PO BOX 1783 WEST PERTH WA 6872 TEL FAX info@tapoil.com.au 19 June 2008 The Company Announcements Platform Australian Securities Exchange Exchange Centre 20 Bond Street SYDNEY NSW 2000 INVESTOR PRESENTATION UPDATE JUNE 2008 Please find attached a copy of a presentation providing investors and analysts with an update on Tap Oil Limited s activities. A copy of this presentation is available at the ASX and can be viewed on the Company s website under the heading Investor Centre. Enquiries to: Peter Stickland (CEO) info@tapoil.com.au _1

2 Tap Oil Limited Merrill Lynch Emerging Companies Conference 19 June This presentation contains some references to forward looking assumptions, representations, estimates budgets and outcomes. These are uncertain by the nature of the business and no assurance can be given by Tap Oil Limited that its expectations, estimates, budgets and forecast outcomes will be achieved. Actual results may vary materially from those expressed herein. 1

3 The Tap Oil Story Tap Oil is an ASX listed Oil and Gas E&P Company with established production and a pipeline of exciting exploration opportunities in Australasia Key Strengths Established Asset base with: Developed Reserves - Additional contracted gas - Contingent resources - 6.5mmboe 5.9mmboe 26.7mmboe Strong financial position ~A$85 million cash, no debt ~A$50 million cash flow from operations Focused on delivering growth Over last 2 years implemented largest portfolio change in company s history High impact, low-moderate risk exploration Acquisition of value adding assets 13/06/

4 The Tap Oil Strategy for Growth Res Tap s value proposition: Grow asset value per share by discovery and addition of reserves and resources To do this Tap Oil combines the following key elements: Right People Right Focus Right Areas Right Approach Financial Strength Leverage Board / Leadership / Staff Low-moderate risk, high impact exploration opportunities Proven basins which yield moderate risk, high impact opportunities Technical rigour ~$85 million at bank, no debt Only 156 million shares on issue 13/06/

5 Tap has a Portfolio of Quality Exploration & Appraisal Opportunities Approximate Value Potential Value Accretive Maitland Low Chance of Succes ss High Brunei - Belait HJV oil exploration/appraisal Marley SC-41 Brunei - Block M T47/P Substantial Value Add Transformational WA-351-P Raising the cut-off Time to Production 13/06/

6 Tap 2008 to early 2009 Drilling Programme Tap will spend ~A$60 million in 2008 pursuing a portfolio of moderate risk, high impact opportunities Location Carnarvon Basin HJV Tap Equity (%) 12.22% Carnarvon Basin 20% WA-334-P Philippines SC-41 50% Carnarvon Basin Maitland Area 22% Brunei Block M 39% Q2 Q3 Q4 Q1 Q2 Marley-2 Simpson-9 Simpson-10 Lee-4 Lumba Lumba-1 Dibbler-1 Philippines SC-41 Rig secured Maitland-4 Maitland-5 Prospect-1 Bass Basin T/47P Prospect-2 Prospect-1 13/06/

7 Tap Oil: Multi-pronged strategy for growth Brunei Block M Oil & gas redevelopment & exploration Drilling & seismic late 2008 Philippines SC-41 High impact oil exploration Drilling mid 2008 Company changing event WA Oil Existing production exposure to oil price Production rates at Woollybutt to increase in mid 2008 Simpson 9 & 10 drilling soon WA Gas Successfully producing and marketing gas Maitland appraisal Near field Marley-2 WA-351-P - LNG potential Bass Basin T/47P Oil focussed exploration 3D seismic acquired Drilling mid /06/

8 Woollybutt Oil Field (Tap 15%) Oil Production re-commencing Production currently shut in during first half of 2008 due to issues with safety equipment and gas leak Safety equipment issues now addressed and production recommencement anticipated mid June Woollybutt South hookup completed within schedule and budget Total field production potential including South Lobe >12,000 bopd Produced to date ~29 MMbbls Woollybutt Field and Production Facilities Ultimate Reserves ~40 MMbbls Western Australia 13/06/

9 Harriet Joint Venture (Tap 12.22%) Oil and Gas Producing assets Production currently shut in due to pipeline incident on 3 rd June Effective emergency response, no casualties Recovery activities progressing Initial assessment indicates partial production in a couple of months Production (pre-incident) Oil ~6,000 bopd Gas 115 TJ/d Damage Zone Tap has business interruption and property damage insurance over its interest in the HJV 13/06/08 Varanus Island Facilities Western Australia Drilling activities not impacted by production shut down Simpson 9 & 10 step-out wells commencing in June. If successful add production of >4,000 bopd Lee-4 development well scheduled for July to add diversity of gas deliverability

10 Western Australia Gas Strategy WA Gas prices increased 3 fold to >A$7.50/GJ Tap well positioned along value chain Green field Gas Exploration Near term Gas Exploration Gas Appraisal Production & Marketing WA-351-P Marley-2 drilling now 1 Tcf gas potential Tap 12.22% Under existing infrastructure Maitland gas field appraisal Gas reserves Gas under contract Recent gas sales contracts 13/06/

11 Secured Gas Contracts = Major Revenue Stream In 2005 Tap secured 33PJ of gas from the John Brookes JV at 2005 gas prices This gas is fully contracted and forecast to generate ~A$250M in revenues Sales commenced in September 2007 at 2007 gas prices Strong cash flow from gas sales until 2017 New Domgas contract prices have increased substantially in the last two years reflecting a shortage of supply Revenue (A$,000) 35,000 30,000 Estimated Gas Sales 10 8 Recent WA Gas Prices (A$/GJ) WA Domgas LNG Export Price 25,000 20,000 15, ,000 5, A 2007 A 2008 F 2009 F 2010 F 2011 F 2012 F 2 0 Mar-04 Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Note: Data reflects new contract pricing at the date the contract is signed where the information is available 13/06/

12 Maitland Gas Field - Appraisal Program (Tap 22.47%) John Brookes Maitland ~40km Varanus Island East Spar Gas Pipeline Oil Pipeline Sales Gas Pipelines Western Australia Maitland-3H Well Test Flaring 40km from Varanus Island gas processing facility Appraisal program commenced late 2007 Maitland-3H flow tested at surface constrained rate of ~6 MMscf/d Well test, core and petrophysical analysis indicate complex reservoir Further appraisal drilling and flow testing being considered for optimal development Contingent Gas Resource of between 160 and 280 PJ 13/06/

13 Marley Prospect: located under existing Harriet Joint Venture Infrastructure (Tap 12.22%) Established HJV infrastructure and strategic position rapid field development Marley-2 exploration well - high impact target, drilling commenced Additional deep gas potential in HJV acreage if Marley is successful Marley-2 Drilling now Wonnich Zephyrus Varanus Island Agincourt Bambra Harriet A Simpson A&B Simpson/ Attic Marley (gas) Bambra East Sinbad Harriet C Gudrun Campbell Linda Harriet B Lee -4 gas field July 2008 Gipsy Marine Terminal Lee Rose Double Island Gibson/Sth Pluto Victoria Simpson-9/10 step out drilling June 08 West Cycad CS1 Maturing oil leads Southern Flag play (oil) DBNG 13/06/

14 Harriet Joint Venture: Marley Prospect (Tap 12.22%) Top Barrow Base Cretaceous Marley-1 Marley-1 Took gas kick Suspended due to cyclone High Impact Gas Game Changer with results due end May 08 Marley Jurassic Reservoir Seismic Profile illustrating Marley Prospect Marley-1 suspended in Jan 2006 due to mechanical issues upon re-entry after cyclone Re-assessment of prospect increased from chance of success ~20% based on revised technical work demonstrating evidence for good reservoir Very large structure estimated to have potential resources up to 1TCF of gas Marley 1 Upon success case rapid development via existing nearby platform and pipeline is expected Marley-2 drilling has commenced Structure/Amplitude Map of Marley Prospect 13/06/

15 WA-351-P: Gas Exploration Hot Spot LNG Potential (Tap 25%) WA-351-P contains prolific Triassic gas fairway known for potential for large gas accumulations Mapped >20 large, mod-low risk leads Cumulative unrisked potential >10 Tcf, with several individual leads > 1 Tcf WA-404-P $200+m bid by Hess/Woodside Scarborough 6+Tcf Thebe discovery 2-3Tcf WA-390-P $500m (16 well) bid by Hess Glencoe-1 Gas Discovery (28m pay, as prognosed) Io/Jansz 20+Tcf Woodside Pluto Gorgon 18Tcf Plan to acquire 3D seismic in 08 Industry recognizes value (bids of $200 & $500m) Hess drilling offset prospects in 08 Success could see Tap supplying gas to a future LNG development Value potential $ $3.00/share Multiple gas prospects of Tcf+ size (Tap 25%) Possible Gas pipeline Proposed Onshore LNG plant 13/06/

16 WA-351-P: Example of Seismic Evidence of Gas 2D Seismic Line Near Stack Large horst closure at Top Triassic 13/06/

17 WA-351-P: Example of Seismic Evidence of Gas 2D Seismic Line Far Stack Bright Far Stack indicates presence of gas Large horst closure at Top Triassic Historical success rate around 50% for drilling prospects on 3D seismic with direct evidence for gas 13/06/

18 WA-351-P: Large 3D seismic survey planned for Q (Tap 25%) Likely 3D Seismic Coverage Over 20 leads defined on high quality 2D seismic data Each has strong amplitude support for the presence of gas Cumulative unrisked potential >10 Tcf, with several individual leads >1 Tcf Large 3D seismic acquisition scheduled Q likely to cover the majority of the permit 13/06/

19 Bass Basin T/47P: Overlooked Oil Potential (Tap 40%, Operator) Fast track 3D seismic Volume Section Timeslice North Cormorant lead Oil discovered on block at Cormorant-1 (1970) Labatt 3D seismic survey acquired Dec 07 over key leads with significant oil potential Molson 2D seismic acquisition completed in March 2008 Mature low-mod risk prospects in first half 2008 Drilling rig secured for drilling two wells in /06/

20 South East Asia - Building a Circum-Borneo Portfolio Borneo basins have yielded billions of barrels Tap has a multi-national strategy capturing under-explored areas or overlooked resources SC-41 (Tap 50% & operator). Very high potential block with Filipino fiscal terms. More than 20 leads have been identified on 3D seismic with sizes up to and greater than 100mmstb Brunei Block M (Tap 39% & operator). Belait oil & gas field to be appraised late Significant exploration potential in remainder of block 13/06/08 18/06/

21 SC-41: Yielding high impact prospects for drilling Q (Tap 50%, Operator) Over 20 prospects and leads identified in the Alpine 3D seismic survey region Prospects and leads occur at many levels, with structural and stratigraphic traps Individual trap sizes up to and greater than 100 mmstb Direct hydrocarbon indicators observed on 3D seismic Rig secured to drill Lumba Lumba-1 in third quarter 2008 Arco Hippo 3D 13/06/ km 2 SC km 2 Tap Alpine 3D km

22 Philippines SC41: Lumba Lumba Prospect Large Structure - mean recoverable volume in mmstb range Moderate risk Favourable reservoir interpreted at several levels Focus area for hydrocarbon migration 5 km Lumba Lumba-1 drilling target on Central Inversion Structure - July km 13/06/08 6/18/

23 SC 41 Lumba Lumba Reservoir Objectives Gas Cloud Main reservoir objectives Lumba Lumba-1 multiple stacked objectives within Central Inversion Closure 13/06/

24 Lumba Lumba follow up Structural and Stratigraphic Targets Numerous reservoir fairways within various stratigraphic intervals (bright colours) Large structures Gas clouds indicate hydrocarbons Shallow reservoir fairways * * * Gas Clouds Lumba Lumba Deep reservoir fairways * Lumba Lumba * * 13/06/

25 Brunei Block M (Tap 39%, Operator) Tap s new strategy in action: high equity, operatorship in proven basins Tap awarded 39% operated role in Block M in October ,100km 2 onshore block located in the prolific Baram Delta Contains discovered Belait Oil and Gas Field Potential for even larger resources in deeper section of Belait and other prospective trends Tap plans an aggressive appraisal block-wide exploration programme 2008 activity: 2D seismic reprocessing Airborne survey Preparing for 2D and possible 3D seismic in late 2008 or early 2009 Appraisal drilling late /06/

26 Brunei Block M: In the land of the giants (Tap 39%, Operator) Belait Field Offset Producing Fields Fairley Ampa Seria ~2 Tcf & 200 mmbls ~12 Tcf &1000 mmbls ~1.6 Tcf &1100 mmbls Contingent Resource range up to >50mmboe Produced oil and gas during 1920/30 s 18 wells drilled, 14 without seismic control All on structure wells intersected hydrocarbons or had hydrocarbon shows Considerable near-field potential SERIA 10km Block M BELAIT 13/06/

27 Tap s New Ventures Focus Tap s goal is quality not quantity Focus Areas build: Knowledge of basins Understanding companies & governments New Ventures Focus South East Asia Proven basins Fluid market for opportunities numerous under review Near term drilling to long term ground floor deals..but keep an eye on the wider horizons for a gem of a deal Australia/NZ Focus Acquire projects with potential to add to or become core areas North West Shelf Core exploration & production area 13/06/

28 Closing: Balanced Portfolio of Near Term High Impact Events June 08 June 08 July 08 Q3 08 Q4 08 Q4 08 Marley-2 drilling result - Potential 250% increase in Tap reserves Woollybutt South Startup - More than double field production Drilling in Philippines SC-41 - High quality prospects, transformational event Acquire 3D seismic in WA-351-P - Reveal high quality LNG - style prospects Potential appraisal drilling of Maitland - Gas field close to infrastructure Appraisal drilling of Belait, Brunei - Existing oil discovery with upside potential 13/06/