CORPORATE PRESENTATION

Transcription

1 2013 AGM CORPORATE PRESENTATION

2 2 SNAPSHOT BACKGROUND STRATEGY A profitable E&P business, focused on the exploitation of underdeveloped discoveries in the prolific Dnieper-Donets basin in Ukraine Sales from Gas and Condensate in FY2013 totalled AU$14.2m 100% owned gas plant increased revenue and earnings security AU$2.3m cash balance at end FY2013 no debt Incentivised, focussed, experienced management team local knowledge Continue to deliver revenue from existing discoveries Cash flow to support business development activity Identify advanced predevelopment or producing assets, primarily in Former Soviet Union Participation in the Myanmar offshore bid round. Further assessment of owned assets Potential partnerships Farm out activity

3 3 MANAGEMENT Highly experienced management team with a strong profile in Ukraine EXECUTIVE CHAIRMAN CEO & MD NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR Glenn Featherby - Highly experienced in corporate advisory - Chartered accountant - Chairman of dual listed Forte Energy Richard Reavley - Experienced manager of European oil and gas assets - Former Director of Goldbelt Resources Ltd Bill Foster - More than 40 years experience - Senior advisor to Marubeni Corp - Petroleum Engineer Lord Risby - 20 years financial services experience - Chairman of British Ukrainian Society - Extensive FSU experience Graham Lyon - 30 years international oil & gas experience - Extensive FSU experience - Petroleum Engineer CFO Victor Eriksen - 19 years FSU experience - Fluent Russian Speaker PRESIDENT UKRAINIAN SUBSIDIARY - PRIMEGAS LLC Viktor Dmitriyev - Engineer with 30 years experience in the Ukraine - Co-founder

4 4 UKRAINE Premier European Postcode Significant growth potential Undeveloped discoveries est. 39 Tcf gas & 395 mmbl oil resources* Favourable commercial terms Strong product pricing $11.16 gross / mcf ($9.30 net) Hawkley s local advantage Focused team with strong network Highly experienced proven ability Incentivised Wholly owned gas plant DEMAND SUPPLY Sector Snapshot Dynamics in the European gas market Improving operating environment for foreign companies Growing availability of modern rigs A real need to increase domestic production More modern operational techniques Equipment importation process simplified Recent entry of majors Shell, Exxon, Chevron * Source: Edison Investment Research

5 ASSET OVERVIEW Operator and 100% owner of two production licences (Sorochynska & Stoliarovska) and an exploration licence (Chernetska) in Ukraine s premier gas basin 5 Sorochynska Well 201 produced 1.35 Bcf gas and 33,870 Bbls condensate in FY year production licence awarded April 2012 Wholly-owned gas plant acquired, refurbished and commissioned with 99.8% uptime Next Step: Installation of gas compressor to maximise recovery from the field Diverse portfolio of production, appraisal & exploration opportunities Substantial advanced exploration upside in all licences Stoliarovska Acquired in March 2013 with 20 year production licence Total unrisked prospective recoverable resource of 193 Bcf Next Step: Re-process existing 2D data & acquire further seismic data to identify optimal well locations expected Q2 FY2014 Chernetska Exploration licence with significant upside 5 year licence extension for exploration and pilot production Next Step: Evaluation of data obtained in Chernetska-1 well

6 6 DEVELOPMENTS IN FY13 Operational Acquisition and upgrades of Eurocrimea gas plant for $2.5 million 99.8% uptime in June quarter Acquisition of 20 year production license, Stoliarovska Ukrainian State Geological Department estimates prospective resources of (Russian category C3) 89.7Bcf Gas and 29.2million barrels of oil in Visean sandstones, further potential in the Serpuchovian Production from Sorochynska-201 totalling 1.35 Bcf gas and 33,870 Bbls condensate Average daily production of 3.7 mmscf gas and 94 Bbls of condensate Testing of Sorochynska-202 Determined to be uneconomic plugged and abandoned after FY13 close Five-year exploration extension at Chernetska Identification of potential M&A targets Focus on mature pre-development or producing assets Financial Pre-tax gross profit of $7,150,000 Corporate Appointment of Lord Richard Risby to the Board Extensive experience in financial markets with institutions including Merrill Lynch and Lehman Brothers Chairman of the British Ukrainian Society Appointment of Graham Lyon to the Board 30 years of experience in the oil and gas industry, including time with supermajors Chevron and Shell

7 7 SOROCHYNSKA: OVERVIEW Drilled successful #201 in 2010 #201 put into production in Feb 2011 Produced total of 4.76 Bcf and 153,570 Bbls condensate 20 year production licence awarded in 2012 March 2013 completed acquisition & commissioning of wholly owned gas plant Gas plant achieved 99.8% uptime in Q4 Planned installation of gas compressor to increase recovery from field B19 appraisal - development B18 U B18 L B19 L B22

8 8 SOROCHYNSKA GAS PLANT Major Milestone Significant Cost Savings Rapid Payback Wholly owned by Hawkley commissioned in March 2013 Total cost US$2.25m payback expected in 11 months Delivery of cost savings of US$9.10 per boe Favourable logistics 8km from Sorochynska and 1km from trunk line Currently handles all production from Sorochynska #201 following ramp-up period Current capacity of 11 mmscfgpd Scalable model with estimated upper limit of capacity at 90 mmscfgpd Significant milestone demonstrating long term confidence in Sorochynska Licence SOROCHYNSKA GAS PLANT

9 9 STOLIAROVSKA LICENCE Diversifying Asset Portfolio Acquired 100% for $2.6m completed in March 2013 Operated with full title 20 year production licence On trend with major producing fields & deposits Excellent infrastructure, trunk line close by & gas plant ~4km from the licence Relatively shallow targets - significantly reduces drilling costs and times Area covered by 2003 vintage grid of 2D seismic data Hawkley intends to reprocess and acquire additional seismic to identify optimal well locations

10 10 STOLIAROVSKA LICENCE Production Licence with Significant Upside Potential Total unrisked prospective recoverable resource of 193 Bcf gas Ukrainian State Geological Department estimates prospective resources of (Russian category C3) 89.7 Bcf gas and 10.4 million barrels of oil in Visean sandstones Three possible plays identified in Carboniferous sands 1. Stratigraphic channel play (Serpukhovian age) 2. Fault closures on downthrown side of normal faults 3. Fault closure below reverse faults Additional prospect identified in the Serpukhovian has the potential to contain 42 Bcf gas

11 CHERNETSKA UPSIDE: B24/25 CARBONATES Multiple Hydrocarbon Bearing Horizons 11 1 st well on Chernetska Licence (Well #1) completed in May 2012 Inconclusive test results further testing with workover rig possible B20 sandstone target encountered two thin sandstones with oil shows Gas shows from B24/25 & oil recovered from B26 Lak-7 flowed at 1.5 MMCF/d Lak-2 flowed at 2 MMCF/d

12 12 GROWTH STRATEGY Hawkley Board and Management have extensive experience in asset identification and corporate transactions Strategy to add low-cost production and operating efficiencies to portfolio Immediate focus on growth opportunities in Ukraine and Former Soviet Union Several high priority targets identified and under assessment Aim to partner with large wellfunded investors at project level with debt arrangement. 1. LOCAL GROWTH Leverage recent technical appointments to increase efficiency of operations in Ukraine Continue to pursue production growth opportunities across asset base 4. ACQUISITION / EVALUATION Ongoing evaluation of potential acquisitions, with a view to adding low cost production and boosting operating efficiencies Opportunities further afield also under consideration Participation in Myanmar 2013 Offshore bid round Partnership with Azimuth Ltd, experienced offshore explorer RUSSIA UKRAINE 2. FSU EXPANSION Strategic Russian partner top 3 investment bank - assets, equity, debt finance Acquire pre-development and/or production assets in Russia Development capital injection (equity/debt) 3. DRILLING & OPERATIONS ACTIVITES Reprocessing of 2D seismic data following Stoliarovska licence acquisition Commence operations in Russia

13 13 SUMMARY PROFITABLE STABLE REVENUE SUBSTANTIAL UPSIDE STRONG MANAGEMENT Production of 3.7 mmscf/d (+ 93 Bbl condensate) Wholly owned gas plant delivered significant cost savings Cash flow supporting business development activity Production & near term production in FSU Myanmar offshore with strong partner Significant upside remains within Ukraine assets Farm out / partnership potential Strong management with local knowledge and reputation

14 14 APPENDICES

15 15 DISCLAIMER This presentation contains certain forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that Hawkley Oil and Gas Ltd believes, expects or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as seek, anticipate, believe, plan, estimate, expect, and intend and statements that an event or result may, will, can, should, could, or might occur or be achieved and other similar expressions. These forward-looking statements reflect the current internal projections, expectations or beliefs of Hawkley Oil and Gas Ltd based on information currently available to Hawkley Oil and Gas Ltd. Forward-looking statements are subject to a number of risks and uncertainties, including those detailed from time to time in filings made by Hawkley Oil and Gas Ltd with securities regulatory authorities, that may cause the actual results of Hawkley Oil and Gas Ltd to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Hawkley Oil and Gas Ltd. Hawkley Oil and Gas Ltd expressly disclaims any obligation to update or revise any such forward-looking statements. Not for distribution to United States newswire services and not for dissemination in the United States. The forecast revenue and production estimates provided in this presentation are based on the company achieving success with its production plans in the next 3 years. The revenue and production estimates are conceptual in nature and until final drilling and testing has been completed, there is insufficient exploration to define gas reserves and it is uncertain if further exploration will result in the determination of a gas reserve. COMPETENT PERSONS STATEMENT The prospective resource estimates for the Stoliarovska area are based on information compiled by Nigel Hanwell. Mr Hanwell is a consultant petroleum geologist with 27 years of relevant experience and is qualified in accordance with ASX Listing Rule Mr Hanwell is the Principal Consultant with Dixhan Solutions Pty Ltd and has consented to the inclusion of the information in the form and context in which it appears. The estimates of Prospective Resources included in this presentation have been prepared in accordance with the definitions and guidelines set forth in the 2007 Petroleum Resources Management System (PRMS) approved by the Society of Petroleum Engineers (SPE).

16 CONTACT INFORMATION AUSTRALIA Suite 3 / Level 3, 1292 Hay Street West Perth WA 6005 Australia Tel: Fax: information@hawkleyoilandgas.com UK 38 Jermyn Street London SW1Y 6DN UK Tel: UKRAINE Boulevard Tarassa Shevchenka 35 Kyiv Ukraine Tel: Fax: office@primegas.com.ua PUBLIC RELATIONS Six Degrees Contact: Fergus Ross Tel: fergus.ross@sdir.com.au