For personal use only. WHL Energy Limited. Investor Update August ASX Code: WHN

Transcription

1 WHL Energy Limited Investor Update August

2 Disclaimer This presentation has been prepared by WHL Energy Limited ( WHL Energy or the Company ). It should not be considered as an offer or invitation to subscribe for, or purchase any, securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation This presentation contains forecasts, projections and forward looking information. Such forecasts, projections and information are not a guarantee of future performance and involve unknown risks and uncertainties, many of which are out of WHL Energy s control. Actual results and developments will almost certainly differ materially from those expressed or implied. WHL Energy has not audited or investigated the accuracy or completeness of the information, statements and opinions contained in this presentation. To the maximum extent permitted by applicable laws, WHL Energy makes no representation and can give no assurance, guarantee or warranty, express or implied, as to, and takes no responsibility and assumes no liability for (1) the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission from, any information, statement or opinion contained in this presentation and (2) without prejudice to the generality of the foregoing, the achievement or accuracy of any forecasts, projections or other forward looking information contained or referred to in this presentation Throughout this presentation all figures are quoted in A$ dollars unless otherwise stated. You should not act in reliance on this presentation material. This overview of the Company does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of WHL Energy s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation before making any investment decision Competent Person s Statement In accordance with Chapter 5 of the ASX Listing Rules, the geological information in this report has been reviewed by ISIS Petroleum Consultants and Matt Fittall WHL Energy Exploration Manager. The statements and opinions attributed to ISIS are given in good faith and in the belief that such statements are neither false or misleading. 2

3 WHL Energy - a company in transformation WHL Energy is at a new dawn WHL Energy has acquired a very large acreage position in the East African region (Seychelles) Seismic acquisition completed confirms existing and new leads $12m capital raising completed the Company is well funded into 2012 Seychelles Petroleum Company (Seypec) strong supportive shareholder endorsement of the WHL Energy business WHL Energy is an Operator with small but growing technical office to interpret new data, develop prospects and farmout The East African region is active with strong interest and aggressive position taking by major organisations WHL Energy s Seychelles acreage position provides a sound basis to further grow the business into East Africa and the wider region WHL Energy s interpretation indicates billion barrel potential in the Beau Vallon area 3

4 WHL Energy transformation - near term value drivers WHL Energy is actively progressing towards farm-out with a significant farm-out expected to be agreed prior to year end. A validation point in the Company s new strategy is close at hand (farm-out) Seismic acquisition has been completed A first class executive management team is in place to deliver on the new direction (farm-out and business growth into Africa) Immediate deliverables are: Complete the interpretation and prospects mapping during the September quarter Open the data room to International oil and gas majors during the September quarter Farm-out of the Seychelles position Capture new portfolio opportunities in the region Focus investor recognition on the Company pre and post delivery of the validity test 4

5 WHL Energy - business model designed for rapid growth WHL Energy has secured highly experienced industry professionals to deliver on its business plan. We will continue to build our Intellectual Property database in-house. The Company has invested significant funds ( add value ) to our portfolio prior to inviting partners. We have invested more than A$10 million in the Seychelles since acquisition. Our plan is to build up a large IP database in the region and use this knowledge to further expand the portfolio. We will lever off our Seychelles acreage position to expand the Company s portfolio East and North African focussed explorer Promoter of exploration opportunity We will continue to transform the Company, growing the team of highly experienced industry professionals to capture North and East Africa opportunities 5

6 Corporate Snapshot Capital Structure ASX: WHN Ordinary shares 1 1,226,588,386 Listed options (ex 7.5 cents) 169,808,346 Unlisted options (ex cents) 10,000,000 Performance options 2 250,000,000 Market capitalisation at 3 cents $37 million Cash as at 30 June 2011 $9.5 million Debt Nil 1. 75,000,000 shares are subject to a voluntary escrow until 28 January The performance options, exercisable at $0.0001, will not vest and become exercisable unless: i. WHL Energy (or one of its subsidiaries) has entered into one or more binding farmin agreements with one or more third parties under which the farminee/s have a collective obligation to spend the greater of $10,000,000 or 50% of the work commitment on the licences; or ii. the volume weighted average price of the Company s shares as traded on ASX is at least 10 cents or more for ten consecutive trading days 6

7 Corporate Snapshot Steve Noske & David Rowbottom appointed Sep 2010 Seychelles Petroleum Company Ltd Invests in WHL Energy (23/05/11) Key Management Changes (23/05/11) Agreement to Acquire Additional Seismic (18/04/11) WHL Energy Exploration Team in Place (16/06/11) Acquisition of Exploration Acreage Offshore Seychelles (26/10/10) Independent Research Report (03/03/11) Share Placement 3.2 cents (08/04/11) Share Placement 2.2 cents (10/11/10) Independent Technical Report (23/02/11) Seychelle Seismic Commences (17/11/10) Independent Technical Update (04/04/11) Completion of Acquisition of Acreage Offshore Seychelles (01/03/11) Buyback of Seychelles Option (27/07/11) 7

8 Company Board Chairman Peter Bartter Peter is the former chairman of Bartter Enterprises Pty Ltd, which he co-founded with his brother in the 1960s, and which went on to become a very successful Australian business. He recently sold his interest in the above entity in order to concentrate on new opportunities Managing Director Steven Noske B. Eng. (Hons Mech) Steven Noske is a senior manager in the energy industry with more than 27 years experience and 15 years in senior management roles, having worked both in Australia and throughout Asia. Mr Noske s career includes senior management roles with BHPB, TRU Energy and Mitsui E&P Australia Pty Ltd. Past board position with Exoma Energy Mr Noske established BNA Petroleum Asset Management Pty Ltd (BNA) with his partners in 2002 to offer management services in the areas of petroleum commercialisation specialising in the commercialisation of gas opportunities worldwide. Mr Noske has consulted to Mitsui E&P Australia in the role of Manager New Business Executive Director Finance - David Rowbottam David Rowbottam was previously the founding Managing Director of Exoma Energy Limited, an ASX listed, US focused oil and gas exploration company from July 2007 through to March Prior to that role, Mr Rowbottam had worked as a senior financial executive with international and Australian experience in General Manager, Chief Financial Officer, Financial Controller and Senior Management positions with businesses including Exoma Energy Ltd, Antares Energy Ltd, Alinta Group ( ) and the BHP Group ( ) Non Executive Director(s) vacant Consistent with the new direction of the Company, additional Industry recognised Board members are being actively sought and discussions with preferred candidates are in progress 8

9 Technical Team in place Exploration Manager Matt Fittall The WHL Energy exploration team will be led by Matt Fittall in the role of Exploration Manager. Matt will be responsible for implementing the Seychelles exploration program, completing a successful farm-out of the Seychelles project and growing the Company through the addition of value adding opportunities. Matt Fittall is a Geologist with 27 years of oil and gas experience and brings a wide range of oil and gas technical, management and commercial experience to WHL Energy. His career has been with major operators, mostly with BHP Billiton, but also Delhi Petroleum, Mitsui & Co and Total S.A. He has been instrumental in building and managing exploration portfolios through successful farm-in and farm-out programs, including the farm-out and divestment of BHPB s Timor Sea assets and farm-out of the Exmouth exploration block WA-351-P, and has been involved in many commercial exploration discoveries and field developments during his career. Exploration Advisor Kim Morrison Kim Morrison joins the WHL Energy exploration team as Consulting Exploration Advisor. He has over 25 years of senior technical and managerial experience in major oil and gas companies such as Woodside, Shell and Marathon Oil, and as well as small-cap oil and gas companies such as Fletcher Challenge and Hartogen. Kim has been involved in numerous discoveries and development projects throughout Australasia, Asia, Gulf of Mexico and North Africa. He brings to WHL Energy a wide ranging knowledge of the Asia Pacific region, a proven ability to identify new and overlooked plays and the ability to focus on the essential criteria for exploration success. Geophysical Advisors WHL Energy has two geophysical consultant with individually more than 30 years of experience in petroleum exploration appraisal and development projects with expertise in interpretation and mapping studies. The consultants are actively engaged in the Seychelles interpretation and evaluating new opportunities. 9

10 Seychelles Asset significant acreage position The Seychelles WHL Energy s Interest 7 Lease Areas Includes a total of 35 blocks Area of >21,426km 2 10

11 Regional Discoveries focused corporate attention 11

12 Prospectivity independently verified WHL Energy acreage and leads map Large acreage position (21,426km 2 ), frontier setting, predominately shallow water Variety of prospective plays including: Triassic to Early Jurassic Karoo Group non-marine sandstone Late Jurassic to Early Cretaceous sands and oolitic limestone Middle Cretaceous to Paleocene shelf and turbidite sands Early Tertiary carbonate plays (reefal build ups and oolitic shoals) and deepwater turbidite play Good evidence of a working petroleum systems in the area of the WHL Energy blocks. Tar occurrences observed on Seychelles islands Well shows Analogue studies from offset basins Extensive inventory of attractive leads with billion barrel + in place oil potential 8,000 km new seismic completed to mature portfolio 12

13 ISIS Report - Executive Summary WHL Energy acreage and leads map WHL Energy commissioned Isis Petroleum Consultants Pty Ltd ( Isis ) to prepare an Independent Expert s Report on the prospectivity of its Seychelles petroleum exploration blocks which was the subject of a Share Sale agreement between WHL Energy and SEYCO Energy Pty Ltd ( SEYCO ) This report was completed according to the requirements of the SPE / WPC / AAPG guidelines and standards as published in March 2007 and the guidelines from the Valmin Code (modified with input from Isis evaluation) Isis confirmed that there are a variety of prospective plays in WHL Energy s acreage Triassic to Early Jurassic Karoo Group Late Jurassic to Early Cretaceous sands and oolitic Middle Cretaceous to Paleocene shelf and turbidite sands Isis concluded there is good evidence of a working petroleum systems in the area of the WHL Energy blocks. Well shows tar occurrences Analogues from offset basins 13

14 ISIS Report - Executive Summary WHL Energy acreage and leads map Isis has validated the presence of some of the key existing leads using the seismic data provided by WHL Energy together with other publicly available data The larger structures identified in the blocks have the potential to contain multi Tcf / multi 100 MMbbl range hydrocarbon accumulations Isis had delineated new leads which warrant further evaluation. A number of previously existing leads have however been downgraded from the review of the available data (modified with input from Isis evaluation) 14

15 Leads Volumetric Summary P10 OIP Mean OIP 15

16 WHL Energy value added > A$10 mill invested Fugro 2D lines (shot) WHL Acreage Other Held acreage Maritime Boundary Acquisition commenced in late 2010, completed in April 2011 Total programme 19,600 km 8000 approx. km in WHL Energy acreage Preliminary processed seismic received Interpretation commenced June 2011 and expected to be completed during the September quarter 2011 Independent Expert Report to be commissioned Farm-out to be delivered 16

17 Seychelles Asset 8000 km of new 2D seismic 17

18 WHL Energy knowledge built across its acreage Tectonic model reviewed Fault orientation model developed Understanding of volcanic distribution developed Regional oil and gas provinces reviewed with implications for Seychelles prospectivity Ophir Energy deep-water Tanzania Anadarko deepwater Mozambique Madagascar petroleum system (emerging Morondava Basin light oil play) Pakistan/West India Petroleum system Well data reviewed in detail Significant location issues with Seagull Shoals-1 18

19 WHL Energy knowledge built across its acreage (cont.) Geochemistry revisited Basic data shows fair-good source rock in Amoco wells Geochemistry review of all available data initiated Play based approach adopted by WHL Energy Highlight Upper Cretaceous play potential (turbidites, shelf sands) Encouragement from well review. Tertiary sand play in deep-water parts of WHL identified Acreage review confirmed many of existing leads and several new leads Preliminary volumetrics completed Final volumetrics based on SY10 2D being undertaken 19

20 Leads verified in the SY10 seismic SY10 seismic line through Beau Vallon trend Beau Vallon Prospect Beau Vallon North Prospect The SY10 MC2D data provides a step change improvement in data quality over previous seismic surveys in the Seychelles At this early stage, WHL Energy is able to confirm the large structures previously identified. Several large structures are emerging in Beau Vallon area with total prospective resource in the order of 1 billion barrels (P50) expected 20

21 The Business Plan significant near term value drivers November 2010 to February 2011 Company re-positioned Seychelles acreage captured April - June 2011 Established management and technical team Established the technical office Collated geological and geophysical database into a Kingdom project Interpretation of new seismic data ongoing Substantial farmout data room established July- December 2011 Mature prospects for farmout/drilling Interpret 2010 data Regional geological studies Farm-out Seychelles (capture high quality partner(s) to underpin the road to drilling) New Ventures/business development for second arena East Africa rifts Australian acreage release (playing to our strengths) Preparations for a concerted industry wide farmout campaign have commenced. WHL Energy has received unsolicited approaches regarding its Seychelles acreage from several large companies and has held initial discussions with these companies. Companies active in East Africa 21

22 The WHL Energyacreage position in the Seychelles is substantial Ophir and Anadarko East Africa areas on same scale as WHL Energy acreage 22

23 WHL Energy Business Plan Our acreage position is ready for Industry validation WHL Energy is very well positioned to lever off our Seychelles position to grow 23

24 Looking to diversify the portfolio 1. Building on our Seychelles knowledge to become a significant East African explorer Acquire East African exploration acreage East Africa rifts focus Develop relationships with key government and industry players 2. Playing to our strengths Australian exploration 2011 acreage release Other Australian opportunities Looking to get early exposure to drilling 24

25 WHL Energy - Hartleys Research o Hartleys provides active research coverage on WHL Energy o Coverage was initiated in March 2011 o o o Currently Hartleys rates WHL Energy as a Speculative buy Hartleys has a share price target of 10.2 cents per share which represents a 330% premium to the current share price of 3.1 cents per share The recent support of Seypec is viewed by Hartleys as a significant vote of confidence in the Company which is likely to increase the likelihood of negotiating a successful farm-in partner 25

26 WHL Energy - Prospectivity and Peer Comparison o o As part of Hartleys research coverage they have undertaken a detailed analysis of the potential upside that exists within WHL Energy s share price and how the Company s assets compare with those of its peers Research concludes o Significant potential uplift upon discovery o Upside potential is significantly ahead of that of its peers o Numerous leads exist, each of which could justify a multiple uplift in the Company s share price o The Company s market cap is significantly smaller than that of its peers, hence significant upside exists o ASX Listed peer metrics suggest that WHL can trade significantly higher in the lead up to drilling. o Peers on other exchanges have traded at market capitalisations in excess of A$1b without ever having drilled a well WHN BUR SUR NSE PCL MOG OXX ADX VIL OEL BUY BRU KIK MMR NEN FAR 609 PreDrill Mkt Cap (A$m) Possible Uplift Multiple on Discovery NGE RIA NDO CUE MEO

27 Conclusions WHL Energy is a company in the final stages of transformation WHL Energy is poised to deliver on significant value drivers in the near term WHL Energy has developed the regional geological framework, integrating all previous work and is applying petroleum system/ play based methodology to delineate highest ranked prospects Review of basic data has yielded new insights Encouragement from studies of analogue/offset basins Existing leads validated, new leads/plays highlighted New Fugro seismic (underwritten by WHL) provides critical new data Farm-out process has commenced Initial interpretation has confirmed prospective resource in excess of 1 billion bbls in (part) of WHL Energy s acreage WHL will continue to add value to this significant acreage position whilst also looking to add to its portfolio 27

28 Contacts 28