Energy Oil and Gas Conference Sydney David Casey, Managing Director 17th – 18th March 2015
Disclaimer Important Notice
This presentation does not constitute investment advice. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. Shareholders should not rely on this presentation. This presentation does not take into account any person's particular investment objectives, financial resources or other r elevant circumstances and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments. The information set out in this presentation does not purport to be all inclusive or to contain all the information which its recipients may require in order to make an informed assessment of Petrel. You should conduct your own investigations 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. To the fullest extent permitted by law, the Company does not make any representation or warranty, express or implied, as to the accuracy or completeness of any information, statements, opinions, estimates, forecasts or other representations contained in this presentation. No responsibility for any errors or omissions from this presentation arising out of negligence or otherwise is accepted. This presentation may include forward looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of Petrel. These risks, uncertainties and assumptions include commodity prices, currency fluctuations, economic and financial market conditions in various countries and regions, environmental risks and legislative, fiscal or regulatory developments, political risks, project delay or advancement, approvals and cost estimates. Actual values, results or events may be materially different to those expressed or implied in this presentation. Given these uncertainties, readers are cautioned not to place reliance on forward looking statements. Any forward looking statements in this presentation speak only at the date of issue of this presentation. Subject to any continuing obligations under applicable law and the ASX Listing Rules, Petrel does not undertake any obligation to update or revise any information or any of the forward looking statements in this presentation or any changes in events, conditions or circumstances on which any such forward looking statement is based.
Company Information Key Information
Board & Management
Major assets in Uruguay and Spain
Alexander Sundich* Chairman
Completed largest onshore programme in Uruguay in the last 30 years
David Casey*
Managing Director & CEO
Russell Porter
Non-Executive Director
First onshore resource certification for Uruguay
Ian Kirkham*
Company Secretary
Management and founders are largest shareholders
Stephen Mitchell*
External Advisor
Capital Structure Cash:
$2.5m (31 Dec 2014)
Issued Cap:
462.9m Shares
Market Cap:
$46.3m (at $0.10)
Debt:
$0
ASX Code:
PRL
Shareholders David Casey*
8.4%
Stephen Mitchell*
7.1%
Cameron Richard Pty Ltd
6.3%
Alexander Sundich*
5.0%
Smithley Super Pty Ltd
4.6%
Linwierik Super
3.9%
Ian Kirkham*
2.8%
Top 20
54.0%
Background…last 12 months 2013
2014
2015
Share price low of $0.045
Share price – $0.25.5
Share price – $0.10
Market cap – $12.2m
Market cap – $113m
Market cap – $46.3m
New strategic direction to build a portfolio of high quality resource assets with acquisition of Uruguay and Spanish assets
Outperformed the ASX Energy Index & Peers for CY2013 Prospective resource for Spain of up to 3TCF, independently certified by NSAI
First independently certified resource certification for Uruguay estimates up to 902 MMBBL (for Petrel’s 51% net interest)
Successful corehole programme
12 months can appear a long time…
Portfolio
Betic Alps, Spain
Norte Basin, Uruguay
Betic Alps Spain
Lochend Cardium, Alberta, Canada
Targeting con ventional and unconventional oil targets in Piedra Sola & Salto Concessions (3.5M acres)
Targeting co nventional sandston e gas reservoirs in 94,000 acres in Southern Spain
Targeting “ tight oil” in siltstone and sandstone un its i n 6,400 acres
Uruguay
Concessions
Brazil
0
50
100
kilometres
Concession Map, Uruguay
How does it compare?
Petrel hol ds larg est onsho re tenements, totalli ng 14000km 2 (3.5millio n acres)
Corehole Success
Uruguay Corehole Achar E-1 ; Oil leaching from Devonian sandstones just
below Cordobes Shales (306-315m)
Cardozo Chico E1
Cardozo Chico E1
Permeability = 20.5 darcies
Permeability = 30.9 darcies
Cores taken from Cerro Padilla E-1
Result s confir m activ e petroleum system and excellent reservoir qualit y
Seismic Success
Line 5
Multiple large shallow conv entional targets identified ranging from 2 – 241 MMBBL
Independently Certified Resource
First onshore resource certification for Uruguay Netherland, Sewell and Associates have independently certified unrisked Prospective Resource in the Salto and Piedra Sola concessions of up to 902 MMBBL* (for Petrel’s 51% net interest)
Independently Certified Resource Salto & Piedra Sola Concessions 51% Net to Petrel (conventional only) Low Estimate (P90) Best (Median) Estimate (P50) High Estimate (P10)*
Prospective Resource MMBBL
Original Oil In Place MMBBL
133 388 902
501 1,356 2,875 Netherland Sewell and Associates (NSAI)
Estimate is potentially cons ervative as seismi c only c overs relatively small area and does not include any unconventional potential
Spain
Spain
View of Africa from southern tip of Spain
Two contiguous license areas totalling 94,000 acres
License cont ains Almarchal-1 dri lled in 1956/57 whi ch flow ed gas to s urface
Spain
Potential multi TCF resource Access to 40” gas pipeline with excess capacity located 3km from proposed well site with access to high priced European gas markets Subject to final farm-out and JV discussions plan redrill of Almarchal discovery well using modern drilling techniques
Gas pipeline running past proposed well site
Modern analysis of core from original well has confirmed: -
Very encouraging net pay of 212m
-
Formation damage as likely cause of inhibited gas flow
Original core taken from Almarchal-1
Core testing results represent opportunity to reinvigorate interest in farmout process
In Summary…why buy Petrel? PRL Share Price versus Equal Weighted Index of 20 Company PRL Peer Group by Market Capitalisation 1 Nov 2012 = 100 Excellent Corehole Results & Resource Certification for Spain
Delays with Seismic Programme and Spain Farmout
Commence Corehole Programme – early encouragement
Uruguay and Spain Assets Acquired (Oct 2012)
Oil Prices Fall Below US$100
Excellent Seismic Results and Resource Certification for Uruguay
Oil Prices Fall Below US$80
PRL Peer Group by Mkt Cap
Resource Invest: Australian Oil & Gas Research, February 2015
…and relative to broader Market?
Petrel
(Oil & Gas Market Cap: $100m – $1000m)
(Oil & Gas Market Cap: $10m - $100m)
Resource Invest: Australian Oil & Gas Research, February 2015
Thankyou 16
