set to deliver - 3d oil · n1 & n2.6 reserves p1 contingent resource ne contingent resource •...
TRANSCRIPT
3D Oil Limited
Set to Deliver
April 2010
3D Oil Limited3D Oil Limited
Set to DeliverSet to Deliver
April 2010April 2010
Presentation DisclaimerPresentation Disclaimer
Important Notice
This presentation contains certain statements which may constitute "forward-looking statements". Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance or achievements to differ materially from those expressed, implied or projected in any forward-looking statements.
No representation or warranty, express or implied, is made by 3D Oil that the material contained in this presentation will be achieved or prove to be correct. Except for statutory liability which cannot be excluded, each of 3D Oil, its officers, employees and advisers expressly disclaims any responsibility for the accuracy or completeness of the material contained in this presentation and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission there from. 3D Oil accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in this presentation or any other information made available to a person nor any obligation to furnish the person with any further information.
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Corporate Summary
Strategy Focus
Value Potential
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Corporate SummaryCorporate Summary
3D Oil formed July 2003
Listed on the ASX 22 May 2007
Shares on issue 206.6 mill
Unlisted options 10.5 mill
Market Capitalisation $A40 mill
Top 20 shareholders 130 mill shares (63%)
Cash $A8.7 mill
As at 14 April 2010
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Why 3D Oil is great investment Why 3D Oil is great investment
FEED commenced for the West Seahorse development with FID in 2010
Low Capex and Opex provides a very robust project even at low oil prices
Initial flow rates of up to 7000 bopd expected
2P reserves 5.3 MMBbl with sidetrack of West Seahorse-3 potential to add 1.2 MMBbl
Neighbouring Sea Lion Prospect has potential to at least double the NPV of the project
Felix, a world class prospect, has high impact potential
The current share price clearly undervalues the medium term growth potential
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Assets and PotentialAssets and Potential
Near term development with > 100 MMbbl growth potentialNear term development with > 100 MMbbl growth potential
Vic/P57100%
T41-P100%
3D Oil Assets
West Seahorse 8.7MMstb (2P+2C)
FEED commenced
Sea Lion oil prospect ready to drill and tie in
Felix high impact potential
9 quality prospects and leads
The recent Trefoil and Rockhopper wells have illustrated the basin potential
At least 15 leads identified to date some with amplitude anomalies similar to Trefoil
Prospect defining 3D to be shot early 2011
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Corporate Summary
Strategy Focus
Value Potential
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Strategy FocusStrategy Focus
1. Accelerate West Seahorse development
2. Comprehensive prospectivity analysis
3. Securing partner to drill high impact structure
First oil 2012
Drill high impact structure within 12 months
Potential increasing reserves base
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Outcome
Seahorse and West Seahorse Comparison Seahorse and West Seahorse Comparison
Areal size similar
Both have oil in N1 and N2.6 reservoirs – both excellent
OWCs almost identical
Same oils (Tapis quality)
Fields very similar Seahorse has been on production for almost 19 years
West Seahorse Seahorse
N1
N2.6
P1
West Seahorse Seahorse
N1
N2.6
P1
Vic/P57Vic/P57
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World class petroleum system
Reserves and Resources Reserves and Resources
Reserves 1P 2P 3PN1 and N2.6 (MMBbl) 4.1 5.3 6.9Contingent Resources P90 P50 P10P1 and NE Sector (MMBbl) 2.9 3.4 4
6.9 8.7 10.9Total Reserves and Coningent Resources
WardieProspective resource?
500m
NW Prospective resource
West SeahorseN1 & N2.6 reservesP1 contingent resource
NE Contingent Resource
• Reserves contained in two reservoirs; N1 and N2.6
• Sidetrack of West Seahorse-3 has potential to add 1.2 MMBbl in P1 reservoir
• Reservoirs consist of stacked porous channel sands with up to 3 darcies permeability
• Excellent aquifer support
• Recoveries of up to 70% common on Northern Margin of the Gippsland Basin
• Light Tapis-quality crude
• 3D seismic coverageWest Seahorse-1 DST1411-1418m RT1827 BOPD ½” choke48o APIGOR 242 scf/barrel
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Hippo
West Seahorse-1
N1
N2.6
P1
NearNear--Field Potential: Hippo Field Potential: Hippo
•Structural high west of West Seahorse
•Same oil zones predicted
• A total of 1.5 MB recoverable (P50 Prospective Resource)
•Potential tie-back to the main field.
BHippo West
Seahorse
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Optimising West Seahorse DevelopmentOptimising West Seahorse Development
Development options for West Seahorse have been impacted by the global financial crisis and low oil prices. During this time 3D Oil continued engineering studies on low CAPEX options and discovered an innovative solution
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FEED commenced
Key components of the option are:
West Seahorse-3 re-completed as a sub-sea well.
Offshore and onshore pipelines from West Seahorse-3 location to plant
6” FlexSteel Production pipeline3”gas lift pipeline(Pipe laying barge not required)
Crude stabilisation and load-out terminal plant located at Dutson Downs after treatment facility
Or tie-in to third party facilities
3“ gas export/import pipeline to Longford Gas Pipeline
Optimising West Seahorse DevelopmentOptimising West Seahorse Development
EGP Compressor Station
Longford Gas Plant
Proposed New Oil Processing Plant
10 km
Proposed Offshore
Pipeline FlexSteel 6” Oil
and 65mm Gas lift
Proposed Subsea Completion
Low Capex and Opex result in very robust project
Initial flow rates 6000 to 7000 bopd
First oil 2012
Field life 10 years +
Capex currently estimated < US$80 MM (including 30% contingency)
Further potential of 1.2 MMBbl reserves if West Seahorse-3 side tracked to West Seahorse-1 location
Development will allow tie in from Sea Lion in the event of a discovery
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Growth PotentialGrowth Potential
100 km
Vic/P57
T41P
Vic/P57Full prospectivity review underway
Attract leveraged partner to share forward risk
New work on the Felix Prospect is very exciting
Sea Lion has real potential to add significant value to
West Seahorse development
T/41PCompleted acquisition of 2200km 2D seismic under
budget
Mapping indicates at least 16 leads
Significant seismic anomalies on at least two leads
similar to Yolla and Rockhopper
Current activities and immediate plansCurrent activities and immediate plans
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0
1
10
100
1,000
10,000
0 10 20 30 40 50
Deep Water
Surat/BowenEromanga
Cooper
Barrow
Timor SeaBrowse
CanningPerth
Bonaparte Carnarvon
Amadeus
Large CompanyLarge CompanyMateriality ThresholdMateriality Threshold
Well cost - low
Well cost - medium
Well cost - high
Fiel
d si
ze (b
oe)
Chance of Success (%)
Why Bass Strait?Why Bass Strait?
Gippsland(Vic/P57)
Bass(T/41P)
Preferred Quadrant
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Felix
Felix Deep
Sealion
Salsa
Dexter
Kangafish
Lucifer
Hector
Nicholson
Scooter
Dalrymple
Humbug
Glengarry
Tolpuddle
Tamar Pembroke
Ris
k P
rofil
e
Vic/P57 T/41P
Low
erH
ighe
r
More likely oil
More likely gas
A large prospect portfolioA large prospect portfolio
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Vic/P57 has been very
lightly explored
Historically Gippsland has
highest exploration success
rate in Australia.
Adjacent and on trend to
numerous oil and gas fields
A great addressA great address
Gippsland; a prolific basinGippsland; a prolific basin
Prospects and leads a mixture
of traditional Gippsland plays
and emerging deeper
Longtom-style gas play
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Gippsland is the ‘oiliest’ basin in
Australia while having world class
reservoirs
At least eight At least eight prospects prospects and leads and leads defined by defined by 3D seismic 3D seismic
Exploration Vic/P57Exploration Vic/P57
AB
MoonfishFelixProspect
WirrahSeahorseWestSeahorse
SealionProspect
A B
Oil & GasOil
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Felix Prospect AnalysisFelix Prospect Analysis
The Felix prospect is located within Vic/P57 on the prolific Rosedale Fault oil trend, 7km from the producing Moonfish Oil Field
Recent detailed mapping and an improved geological model have resulted in an upgrade to the estimated oil resource
Work now indicates a resource base of up to 100 MMBbls at the low-medium risk upper Latrobe levels
Felix Prospect > 100 MMBbls Recoverable Potential
Felix
MoonfishWest Moonfish
Arguably best oil prospect currently in Australia
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Completion of Prospect AnalysisCompletion of Prospect Analysis
The Felix prospect is anticipated to contain the same productive horizons currently being exploited in the nearby Moonfish field. The same zones are oil-bearing in the Wirrah discovery on-trend with both Felix and Moonfish. Such proximity to proven hydrocarbon accumulations provides Felix with a low risk profile for the primary objective
The recent mapping has also identified secondary targets below the primary objective with the potential to contain an additional 60 MMbbls of oil resource equivalent
Deeper potential has not been identified previously in this immediate area but, has been proven to be prospective at the nearby Longtom and Kipper fields
Felix Prospect; additional deeper prospectivity
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Sealion ProspectSealion Prospect
Independent Expert’s Assessment
Sea LionSea Lion
Adjacent and West Seahorse look-a-like except potentially larger and defined by 3D seismic
Identical reservoirs with potential for additional coarse clastics reservoir at top Latrobe
Tie-in to the West Seahorse development relatively simple
Sea Lion West Seahorse
A traditional Gippsland structure with robust 4-way dip closure on the prolific Rosedale
faultSea Lion
West Seahorse
N2.6
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LongtomLucifer
• Gas play trend which includes Lucifer, Dexter and Kangafish
•On trend with newly developed Longtom field
• Similar geology, geometry and source kitchen
Potential significant gas trendPotential significant gas trend
Lucifer LeadDexter LeadKangaFish
Lead
Wirrah
EmperorSweetlips
Tuna
Sunfish
Longtom
PatriciaSperm Whale
Salsa Lead
LuciferLucifer A newly recognised Longtom playA newly recognised Longtom play
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Shallow water (<80m)
Shallow drilling targets
Very lightly explored and large (2700 km2)
The key ingredients for an active petroleum system
Aggressive bids and farmins in previous 2 years with the entire basin under license
The Trefoil discovery confirms the active ‘oily’ petroleum system
Exploration T41/P, TasmaniaExploration T41/P, Tasmania
Bass Basin an exciting emerging petroleum provinceBass Basin an exciting emerging petroleum province
Approximately 50km to Yolla Platform
Approximately 50km to Yolla Platform
RockhopperRockhopperTrefoilTrefoil
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15 leads currently identified from newly acquired 2200 km of seismic
Seismic anomalies often indicative of hydrocarbons are associated with some leads
Dalrymple anomaly on a number lines conformable with structure
Pembroke
Dalrymple
T/41P
10 km
Top Eastern View
Intra Eastern View
Leads
T.PALEOCENE
TEV COALSIEV COAL
IEV UNC.
TEV SAND
T.DEMONS BLUFF SHALE
Dalrymple
Top Eastern View Depth
T41/P; all the right ingredients T41/P; all the right ingredients
New seismic has uncovered many new leadsNew seismic has uncovered many new leads
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Corporate Summary
Strategy Focus
Value Potential
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‐
100
200
300
400
500
600
NPV
A$
West Seahorse 2P @ US$80 West Seahorse 2P @ US$100 + Sea Lion @ US$80 $100 Oil
Value PotentialValue Potential
Development Value Potential > $500 MillionFelix has the potential to add a further $500 Million
Vic/P57 Development and Tie In Potential with Sub Sea Development
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Previous Exploration Costs $A 51.49 million (1/7/09)
Abandonment Costs for Sub-Sea Option $A 8 million
Oil Price
WTI Price $US 80 bbl
W Sh Premium 10%
Road transport to refinery $A5 /bbl
W Sh cost @ $0.90 exc rate $A 92.78/bbl
Forex $A1.00= $US 0.90
Tax rate 30%
PRRT 40%
Debt/Equity 100% equity
CAPEX and OPEX escalation 5%
OPEX for Sub Sea options $US6.0 million/year
Assumptions
3D Oil Limited3D Oil Limited
Set to emerge as a Set to emerge as a
Mid Cap ProducerMid Cap Producer
April 2010April 2010