AGM PRESENTATION Repositioning for growth
30 November 2012 ASX: RAI
AGM PRESENTATION Repositioning for growth 30 November 2012 ASX: - - PowerPoint PPT Presentation
AGM PRESENTATION Repositioning for growth 30 November 2012 ASX: RAI www.raisama.com.au Year in review Fiscal 2012 was a challenging year for Raisama as: 1. Cadlao development project became encumbered through a legal dispute with our joint
30 November 2012 ASX: RAI
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– Blade failed in its Supreme Court action - parties now in arbitration – Parties have requested accelerated proceedings – Arbitral awards are similar to court judgments and binding on the parties
– Arbitration anticipated to result in either Blade paying cash to RAI or RAI maintaining its commercial position in the Cadlao Project – Blade backed by Viking Energy, which has other interests in Philippines and Tunisia, is linked to a major E&P services company – Cadlao currently scheduled for First Oil in 2H 2013
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Project WI Location Net Reserves Net Prospective Resources
Cadlao SC6 - Oilfield redevelopment 16.25%* 25.00%† Philippines 1.0 mmbbls 1.5 mmbbls Bonita SC6B – Cadlao tie-backs 32.20% 10.50%* Philippines 1.0 mmbbls 0.3 mmbbls South Block A – Growth block 38.25% Indonesia 325 mmbbls 575 bcf PEP 51311 – High impact exploration 10.00% New Zealand 38 mmbbls
Totals 2.5 mmbbls 364 mmbbls 575 bcf
* Indirect interest through VenturOil † Working interest 25% entitlement subject to buyback for c. $7m pending arbitration proceedings.
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Independent Expert Valuation on Cadlao Project (NPV basis)
RAI’s current Cadlao interest (GCA Valuation)*
$34 million
$22 million Current RAI Market Cap: ~ $7 million
* Source: Gaffney, Cline & Associates (GCA): Independent Expert Valuation (NPV10 / US$87 bbl - January 2011) † Working interest 25% entitlement subject to buyback for c. $7m pending arbitration proceedings
Large leverage potential from Cadlao
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– E&P portfolio assembled strategically and cost effectively – Inherent value validated by current competitor interest – Competitive advantage through in-country relationships, data & knowledge – New cornerstone E&P (conventional/unconventional) project under evaluation
– Indonesia and NZ project values overlooked due to focus on Cadlao issues – 350 mmbbl oil and 0.5TCF gas prospective resources remain in portfolio – Shale oil & gas potential identified in Indonesian acreage – 1 mmbbl (2P) reserves in Philippines (through VenturOil interest) – Cadlao settlement could result in circa $7 million cash payment to RAI – Bonita Block Interests – Gross Mean Prospective Resource = 3.5 mmbbls
– Indonesian and NZ projects represent value in excess of current share price – Proven capability to bring in new cornerstone ground floor production asset – Cadlao cash payment circa $7m (2 cps) – RAI interest in Cadlao through VO (per GCA NPV) is $22m (7 cps) – Cadlao upside in Cadlao East (Bonita block) – RAI NPV > $20 million on success (>6 cps)
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1. New Ventures
– Oil appraisal project finalising evaluation – will provide near term exploitation – New country entry leveraging local relationships to access early mover advantages – Liberate shale oil & gas potential in SBA
2. Drill Indonesia SBA Block
– Mature portfolio of low risk/high return prospects from new seismic – Drill prospects next year (2013)
3. Drill Huge NZ Kakapo Prospect
– Kakapo Prospect now committed by Operator (NZOG) for drilling next year (2013) – Kakapo net RAI 38 mmbbl is company maker
4. Extract Maximum Value from Philippines
– Focus on exposure to Cadlao Project and Bonita upside via interest held through VenturOil – Resolve dispute with Blade (arbitration or settlement) to facilitate project progress – First Oil target is 2013
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2013
Q1 Q2 Q3 Q4 C O R P O R AT E NEW VENTURES New country entry Oil appraisal project D E V E LO P M E N T PHILIPPINES Cadlao Project Start Rig Contract Cadlao Development Drilling 2+ wells Cadlao 1st Oil E X P LO R AT I O N NEW ZEALAND PEP 513111 1 well INDONESIA South Block A 2D Seismic South Block A 1+ wells South Block A Unconventional rights PHILIPPINES Cadlao Tie-back 1 well
Note: Schedule is subject to modification depending on rig availability and results.
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Located amongst the prolific oil & gas fields of North Sumatra
partner, RENCO
resource drilling in 2H 2013
deeper gas plays
1 3 2
3
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Proposed Amanah Well
Line 1011
S N
Flat Spot
Zone-3 Depth Structure map
SBA Permit boundary Iee Tabue Oil Field Amanah Prospect
Map over Amanah Prospect
Iee Tabue Oil Field Amanah Prospect (40mmbbl)
Seismic Line over Amanah Prospect
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PB1-1 (PROSPECT) PB1-2 (PROSPECT) PB1-4 (PROSPECT) PB1-3 (PROSPECT) PB1-1 (PROSPECT) PB1-2 (PROSPECT) PB1-4 (PROSPECT) PB1-3 (PROSPECT)
10 km
Evidence of pinnacle reef development on trend with 15 TCF Arun Gas Field Gas Flows in South Pineueng 1 & 2
Large Structures at target level
Possible well in Nth Sumatra 2013 drilling program – Large Gas Prospect
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large oil and condensate fields:
Taranaki basin to date
Kakapo
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high permeability)
production history
previous production wells
additional NPV
Page 16 Base case Project US$m RAI US$m NPV10 136 22 Free cash flow 140 25 Payback months 2 months 2 months 6.0 mmbbl Base case assumptions Project 2P reserves Oil price (GCA price forecast) US$87/bbl Capex (to 1st Oil) US$5/bbl Opex (average) US$22/bbl Discount rate 10% Net RAI 2P reserves 1.0 mmbbl * Financial and reserves estimates are by Gaffney Cline & Associates
Project Economics Economic Assumptions Development Schematic
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finding hydrocarbons
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This presentation has been prepared by Raisama Energy Limited (“Raisama”). The information contained in this presentation is a professional opinion only and is given in good
has not been independently audited or verified by Raisama. Any forward-looking statements included in this document involve subjective judgment and analysis and are subject to uncertainties, risks and contingencies, many of which are outside the control of, and maybe unknown to, Raisama. In particular, they speak only as of the date of this document, they assume the success of Raisama's strategies, and they are subject to significant regulatory, business, competitive and economic uncertainties and risks. Actual future events may vary materially from the forward looking statements and the assumptions on which the forward looking statements are based. Recipients of this document (Recipients) are cautioned to not place undue reliance on such forward-looking statements. Raisama makes no representation or warranty as to the accuracy, reliability or completeness of information in this document and does not take responsibility for updating any information or correcting any error or omission which may become apparent after this document has been issued. To the extent permitted by law, Raisama and its officers, employees, related bodies corporate and agents ("Agents") disclaim all liability, direct, indirect or consequential (and whether or not arising out of the negligence, default or lack of care of Raisama and/or any of its Agents) for any loss or damage suffered by a Recipient or other persons arising out of, or in connection with, any use or reliance on this presentation or information. All amounts in Australian dollars (A$) unless stated otherwise. This presentation and its contents have been distributed in confidence and may not be reproduced or disclosed to any other person except those within your organisation directly involved in considering the proposed transaction. Upon request you will return promptly this presentation, together with any other materials received in connection with it, to Raisama Energy Limited (“Raisama”) without retaining any copies. Neither this presentation nor any copy hereof may be transmitted in the United States or distributed or released, directly or indirectly, in the United States or to any US Person (as defined in regulation S under the Securities Act of 1933, as amended (“U.S. Securities Act”)). To the maximum extent permitted by law, neither Raisama, its related bodies corporate, their directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising from fault or negligence on the part of any of them or any other person, for any loss arising from the use of this presentation
in this presentation should be construed as a solicitation to buy or sell any security or product, or to engage in or refrain from engaging in any transaction. Nothing contained in this presentation constitutes investment, legal, tax or other advice. The information in this presentation does not take into account the objectives, financial situation or particular needs of any person. By accepting this presentation you agree to be bound by the foregoing limitations. Consenting Persons Report (Person Compiling Reserves Information): The Reserves information in this presentation has been reviewed by Mr Jim Durrant BSc (SPE, AAPG Member) with reference to the independent specialist's report on SC6 Cadlao prepared by Gaffney, Cline & Associates (Consultants) Pte Ltd in January 2011; and included in Annexure A to the Notice of General Meeting and Explanatory Statement issued by Raisama Energy Limited on 4 February 2011. Mr Durrant has consented to the inclusion of this information in this report in the form and the context in which it appears. Mr Durrant is a full-time employee of the Company, with more than 30 years of relevant experience in the petroleum industry."
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Jeff Steketee - Managing Director Jim Durrant - Technical Director Phone: +61 8 6143 1800 Level 1, 16 Ord Street West Perth WA 6005 www.raisama.com.au