Bounty Oil & Gas NL. For personal use only. AGM 28 th November, Presentation by: Philip F Kelso - CEO

Transcription

1 Bounty Oil & Gas NL AGM 28 th November, 2011 Presentation by: Philip F Kelso - CEO

2 DISCLAIMER This presentation contains forward looking statements that are subject to risk factors associated with the oil and gas industry. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a range of variables which could cause actual results or trends to differ materially, including but not limited to: product price fluctuations, actual demand, currency fluctuations, geotechnical factors, drilling and production results, oil and gas commercialisation, development progress, operating results, engineering estimates, reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial markets conditions in various countries, approvals and cost estimates. All references to dollars, cents or $ in this document are Australian currency, unless otherwise stated 2

3 Company Snapshot Head Office Production Australia Cooper-Eromanga Basins Utopia - 40% Surat Basin Downlands % Oil Appraisal Australia Surat Basin Bellbird Oil Field % Surat Basin Spring Grove % Carnarvon Basin Rough Range - 10% Gas Development Tanzania Killiwani North Gas - 5% FY 2010 on FY 2011 Comparison Income $3.27 million Current Assets $6.04 million Revenue $1.74 million Production 20,529 boes Share Price $0.02 Market Cap $14.55 million Onshore Exploration Australia Surat Basin ATP 754P - 50% Cooper/Eromanga Basin PEL % Carnarvon Basin EP 359, 412 and % to 60% Offshore Exploration Australia Sydney Basin PEP 11-15% Vulcan Sub Basin AC/P 32-15% Tanzania Nyuni PSA - 5% Snapshot

4 Share and Reserve Summary (to be updated) Share Summary As at 25 November Week Price Range $0.02 to $0.12 Shares Quoted 772,150,982 Options 36,000,000 Fully Diluted 808,150,982 ASX Closing Price $0.02 Market Capitalisation $15.4 million Petroleum Reserve Summary Australia - Queensland PL 214 Utopia Oil Field Eromanga Basin Naccowlah Block ATP 259P PL 119 Downlands Gas Field, Surat Basin Tanzania Gas (Contingent) Total 2P 1.2 MMbo Mmbo MMboe MMboe 3.37 Mmboe 4 Corporate and Reserves

5 Achievements 2010/11 Participated in 6 wells in 2010/11, of which three were successful oil producers, Nyuni 2 was suspended and two were dry holes /11 Progress

6 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Boepd Production Naccowlah bopd Utopia bopd Bounty Daily Production by Field Bounty s production has been steadily increasing since 2009, offsetting the cessation of production at Downlands in 2011 due to pipeline constraints 6 Utopia production not increased as much as planned due to extended downtime on Utopia 2 (broken rods) and apparent obstructions in the horizontal leg of Utopia 11H Oil driving revenue increases

7 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Boped Production Forecast Bounty Production Prediction New Projects Kiliwani North Naccowlah Utopia Planned drilling at Utopia and Naccowlah combined with Kiliwani North coming on stream and some strategic acquisitions are planned to at least double Bounty s production in New Projects to increase revenue

8 2012 Activities and Goals 8

9 Core Oil Business /12 Bounty planning to drill at least 5 development and exploration wells into core oil assets, and Possibly up to 6 additional wells subject to joint venture approvals Aiming for at least 50 bopd additional initial production from development, and boepd from exploration, if successful 9

10 High Impact Growth Activities 2011/12 BUY 15% targeting 180 MMbo AC/P 32 Tanzania Nyuni BUY 5% targeting 1.3 TCF Gas Production Exploration High Impact Exploration Offshore Well EP 359, 412 & 435 ATP 789 Naccowlah Utopia PEL 218 Surat PEP 11 BUY 15% targeting 4 TCF Gas Bounty will be participating in 1-2 High Impact wells in 2012, with possible drilling in Nyuni PSA Tanzania and later in AC/P 32 10

11 Project Report Oil Business Oil Business strategy on track to provide further growth: Seismic studies point to likely drill test of million bbl oil target at Wisteria West in AC/P 32 Timor Sea 3D seismic surveys indicate possible 6-8 million bbls at Utopia, Queensland Focus on Downlands and Surat Projects leading with Farawell Updip Bounty moving on new acquisitions 11

12 Cooper Eromanga Oil Development Kilom etres PEL % SA QLD Cooper Basin ATP 789P - 100% Cooper/Eromanga assets now producing 60 bopd 2012 Development, optimisation and NFE programme designed to add at least another 25 bopd Utopia - 40% 2P reserves 2.0 MMbo a pamerri Trough N p Nacowlah Block - 2% Bounty Exploration Permit Bounty Production Licence Gas Field Oil Field Gas Pipeline Oil Pipeline 2012 Drilling programme 4 firm and 2 contingent wells: Naccowlah 1 Appraisal, 2 NFE Utopia: 2 Development, possibly 2 additional appraisal wells 12

13 Utopia Development Drilling BUY 40% Moonie Endeavour Kooyong Cranstoun Minni Ritchi Gimboola Mulberry Tarbat/Ipundu Talgeberry Seagoon 1 Kooroopa North Takyah Currawinya 1 Muginanullah 1 Zenoni 1 Hakheem 1 Toolerah Creek 1 PL 214 3D Seismic Utopia ATP 560P U Ballera Bounty participated in two development wells Utopia 10 and 11H, both had an experimental component to see determine the best way to develop the field. Utopia 10 was fracture stimulated, which did not work as well as had been hoped and the fractures penetrated below the oil water contact - well is producing excess water Utopia 11H was a short leg horizontal and commenced at 150 bopd. Production declined and it is thought that there is some obstruction in the well bore which will need a work over. The initial flow from the well was as anticipated from a horizontal bore 13

14 Utopia 3D Seismic Increases Pool Size Preliminary results from the interpretation of the 3D seismic have indicated vastly increased pool sizes and a concomitant increase in reserves The details of the geometry of the field are still being worked on as the known limits of the oil column exceed closure, and there must be other factors controlling the pools Seismic confirms that there is considerable potential for reserves up dip from Utopia 3 and 4, and previously unrecognised closures of a similar size to the Utopia pool that are undrilled 14

15 Naccowlah Block Oil Development BUY 2% Bounty s Naccowlah acquisition has performed well since it became effective and is scheduled to improve in 2012 Naccowlah produces 35 bopd and has 2P reserves of 150,000 bbls net to Bounty New developments and optimisation planned to add up to 10 bopd to Bounty production during 2012 Three wells to be drilled into near field and appraisal targets aiming and two new field production wells to come on stream in 2012 Bounty anticipates ongoing development and near field exploration to continue. 15

16 Surat Basin Oil Exploration and Development - Queensland Downlands/Spring Grove Tinowan Oil Undeveloped Tight Oil Eluanbrook Updip 300 Mbo potential Up structure from proven H/C Mardi Prospect 300 Mbbls PL 119 Surat AT P 470P 754P AT P 470P PL 71 Waggamba ATP 754P Gas Field Oil Field Gas Prospect/Lead Oil Prospect/Lead Boxvale Prospect/Lead Production Licence Gas Pipeline Oil Pipeline Well with Oil Show Well With Oil and Gas Show PL 2 ATP 754P 552P BW Fairymount Ungabilla 1 Coomrith Bellbird Cockatoo 1 Belllbird Field Tight Oil Reservoir Stimulation 2012 Farawell Prospect 350 Mbbls potential updip from Showgrounds oil Current 3D Seismic and 1 Well 2012 Bounty building a portfolio of oil properties in the low cost Surat Basin in Queensland with targets totalling 1 MMbo Substantial inventory of tight oil and condensate discoveries needing exploitation Conventional oil plays around Alton oil fields with potential up to 1 MMbo, drilling to commence in late 2012 Unconventional CSM and Shale Gas potential in the Permian sequence ATP 754P ATP 754P 16

17 Rough Range Onshore Carnarvon Basin, WA Rivoli Rough Range PL L16 EP 359 EP 359 EP 435 Bee Eater Partners have arranged to farm out EP 435 and 359 for shale gas exploration in the Dingo Claystone. Bee Eater 1 in EP 359 is still scheduled to be drilled, possibly as part of the farm in EP Kilometres EP 412 Oil Field Gas Field Lead 17

18 AC/P 32 Vulcan Graben - BUY 15% Puffin Birch 1 Skua Swan Azalea Hibiscus Wisteria 1 Challis Cassini Wisteria 1, drilled in 2008, now appears to have narrowly missed the up dip pinchout of the Puffin Sands (Azalea Prospect), possibly by as little as 200 metres. Talbot Work in 2011 has focussed on AVO and seismic inversion studies aimed at mapping the extent of the Puffin Sands and if possible determining the fluid content. Montara Crux Oil Field Gas Field Structural Prospect Stratigraphic Prospect Kilometres Although the work is still in progress preliminary results indicate that the Sands will be able to be mapped out clearly The Azalea Prospect is massive and if successful could contain 174 MMbo, it lies up dip from confirmed oil sands at the Puffin Field and in Birch 1. 18

19 Project Report Gas Condensate Business Tanzania Nyuni Block Development licence for Kiliwani North gas field granted and commercialisation underway Nyuni 2 targeting 800 BCF to 1 TCF gas suspended due to technical problems after encountering significant gas above target zones Surat Basin Development of oil gas/condensate at Downlands now we have 100% ownership Farawell Updip has oil but likely gas/condensate reserves - 3D seismic starting 19

20 20 Bewara East Okuza Bewara West Nyuni 1 and 2 Nyuni West To D a r laam Kiliwani North Contingent Resources 40 Bcf gas 3.5 km. from Songo Songo Gas Plant New PSA over increased area Nyuni 2 drilled June to October 2011 did not reach target Formation and both main bore and sidetrack suspended while options are reviewed, target untested but will require new seismic Kiliwani North Development Pi pe es S a Imbi Songo Songo East BUY 5% Nyuni East Amina lin e to Songo Songo Da r es Sa Development Licence awarded la a m Songas Plant Kiliwani North - 45 Bcf Songo Songo South Contracts being negotiated Fanjove North Pr op os Fanjove South Deep South ed Pi pe lin e Initial production likely to be 10 MMcfg/d Kiliwani North ge Songo Songo Island and Reef Kiliwani 1 Ed Gas Accumulation Lead New PSA Block Development Block New Addition to PSA Oil Seep Gas Pipeline Sh e lf For personal use only Tanzania 0 5 Kilometres 10 On stream in 2012

21 Mamba South Deepwater Tanzania Bounty Well Placed Zeta 1 (Drilling) Chewa Songo Songo Pweza Kiliwani North Rufiji Delta Recent exploration success by Anadarko (Barquentine, Windjammer, Lagosta) and the recent 20+ Tcf hit by ENI at Mambo South offshore Mozambique, along with the BG/Ophir hits at Chewa and Pweza offshore Tanzania (>2 Tcf) are proving the deepwater offshore as a major petroleum province Gas is contained in submarine channel and fan deposits related to the Rufiji and Ruvuma deltas Tanzania Gas Discovery Nyuni PSA Mnazi Bay Ruvuma Delta Chaza Barquentine SE corner of Nyuni PSA contains channels and a present day canyon, all with very limited seismic coverage, but in a similar geological setting to the other major deepwater discoveries Kilometres Windjammer Lagosta Tubarão Mozambique >30 Tcf Gas 21

22 PEP 11 BUY 15% New Seaclem 1 unfortunately did not hit gas as had been anticipated, but the major structure in the Permian remains untested There is a proven gas system and the large structures such as South Fish offer potential for 4 Tcf of gas, very close to the Greater Sydney Market Programme of further seismic evaluation leading to defining a drilling target. Drilling scheduled for

23 Downlands BUY 100% Bounty has purchased the remaining interests in the Downlands Gas Field which it now controls 100%, as part of its strategic production development programme in the Surat basin. The field is currently shut in due to the pipeline being used for gas storage rather than production Previous exploration concentrated on drilling highs, oil and gas is trapped in channel sands at base of Tinowan Formation in largely stratigraphic traps. Bounty intends to develop the oil leg of the accumulation, and put the project back into production via a new pipeline connection. 23

24 Downlands Section illustrating the tick channel fill in the productive section Bounty intends to follow up this sequence with 3D seismic and further drilling 24 Available resources could be as much as 1 MMbo

25 Bounty Oil Ready for Growth In 2010/2011 Bounty invested $4.84 million in exploration and development directed principally at oil focussed projects in the Cooper and Surat Basins. In 2012 we will move to a project phase: On Tanzania gas commercialisation On 100% and high interest properties in the Surat Basin which will see additional oil and gas/condensate revenues AC/P 32 Timor Sea is pointing to a very exciting drill in 2013 to test a 180 million bbl oil target Strong balance sheet and continuing revenues to improve growth and start conversion of maturing projects to revenue 25