Bounty Oil and Gas NL Excellence in Oil & Philip F Kelso CEO - - PDF document

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Bounty Oil and Gas NL Excellence in Oil & Philip F Kelso CEO - - PDF document

Bounty Oil and Gas NL Excellence in Oil & Philip F Kelso CEO Sydney, March 2, 2011 Gas Gas y DIS CLAIMER This presentation contains forward looking statements that are subj ect to risk factors associated with the oil f t i t d


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SLIDE 1

Bounty Oil and Gas NL y Excellence in Oil & Gas Gas

Sydney, March 2, 2011

Philip F Kelso – CEO

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SLIDE 2

DIS CLAIMER

This presentation contains forward looking statements that are subj ect to risk f t i t d ith th il d i d t It i b li d th t th factors associated with the oil and gas industry. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a range of variables which could cause actual results or trends to differ materially, including but not limited to: product price fluctuations, actual demand, currency fluctuations, geotechnical factors, drilling and production results, oil and gas commercialisation, development progress, operating results, engineering estimates, reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory , p y , g , g y developments, economic and financial markets conditions in various countries, approvals and cost estimates. All references to dollars, cents or $ in this document are Australian currency, unless otherwise stated

2

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SLIDE 3

Bounty – Core growth in 2011 y g

  • BUY has a strong balance sheet with $ 6 million cash at 31 December

2010

  • BUY’s Core S

trategy lifted gross revenue to $ 1 million for the Half Y ear to 31 December 2010

  • With Tapis around US

$ 100 per bbl oil revenues will help fund further

  • With Tapis around US

$ 100 per bbl oil revenues will help fund further development and near field oil drilling in its oil proven Cooper Blocks planned for 2011

  • Utopia 3D S

urveys completed with U11 H to drill in April 2011

  • 2 more wells in Naccowlah Block

3

BUY growth in 2011

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SLIDE 4

BUY Fundamentals on Upward Path p

500,000 0.14 0.16 0.18

Bounty Closing Price

200,000 250,000 300,000 350,000 400,000 450,000

Bounty Quarterly Revenue

$ 0.06 0.08 0.10 0.12 $ ‐ 50,000 100,000 150,000 1 Dec 05 1 Jun 06 1 Dec 06 1 Jun 07 1 Dec 07 1 Jun 08 1 Dec 08 1 Jun 09 1 Dec 09 1 Jun 10 1 Dec 10 0.00 0.02 0.04 26 May 06 26 May 07 26 May 08 26 May 09 26 May 10

50 60 70 600 700 800 50 60 70 600 700 800

Bounty Market Capitalisation

  • Bounty’s focus on Core and Growth

Assets in Australia is providing a platform for future reserve and revenue growth

20 30 40 200 300 400 500 Millions of Shares

Issued Shares Market Cap

20 30 40 200 300 400 500 $ Millions Millions of Shares

Issued Shares Market Cap

revenue growth

10 ‐ 10

100

4

BUY Fundamentals Platform

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SLIDE 5

Bounty – Foundations for Reserve Growth beyond 2011 2011

  • BUY’s Growth S

trategy this year will start in April 2011 with participation in the Nyuni 2 well in Tanzania targeting 8 MMBOE’s net to BUY BUY

  • If successful Nyuni 2 will push the Block along the commercialisation

path

  • Azalea Prospect –AC 32P offshore Vulcan Graben, maj or 3D

reprocessing proj ect completed and targeting 27 MMbbl oil net to Bounty up dip from oil in the Puffin Field drilling 2012 Bounty up dip from oil in the Puffin Field, drilling 2012

5

BUY growth beyond 2011

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SLIDE 6

PEP 11 – S till a Maj or Growth Asset

  • PEP 11 – BUY was free carried through New S

eaclem 1 with around $20 million i t d b Ad t E Ltd

j

invested by Advent Energy Ltd

  • BUY has reduced to a 15 %

interest

  • S

till early days with NS C 1 well data being analysed and

  • S

till early days with NS C 1 well data being analysed, and

  • Multi TCF gas in the Fish - Baleen structures has yet to be tested
  • Block extended for 3 years

y

  • 2D and 3D seismic surveys in 2011-2012
  • Next well likely in 2013

6

PEP 11 S ydney Basin - a Growth Asset

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SLIDE 7

BUY Proj ects and 2011 Proj ects j j

AC/P 32 Nyuni Tanzania ATP 789 EP 359, 412 & 435 Naccowlah

Production Exploration

Utopia Surat PEL 218 Naccowlah

p High Impact Exploration Offshore Well Exploration Well Development Well

PEP 11

  • Wet conditions have curtailed activities in inland eastern Australia
  • However still proposed to participate in up to 8 wells in 2011

7

However, still proposed to participate in up to 8 wells in 2011

BUY Proj ects

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SLIDE 8

S teady growth in oil assets y g

70 80 90

Nacccowlah Purchase her

Bounty Monthly Average Production

d

Oil Production – provides underlying support for Bounty’s higher risk operations Bounty has been pursuing oil development and

30 40 50 60 Boepd

Downlands Closed Weath Downlands Closed

appraisal through Utopia oil field development, Naccowlah acquisition and exploration in the S urat basin western oil fairway. Oil revenue aimed to reach $2 million in 2011

10 20 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10

Oil revenue aimed to reach $2 million in 2011 Interests in 1 MMbo of low risk drilling targets in S urat Basin western oil fairway, for drilling 2011 – 12.

2 2.5

Bounty Reserves

2011 12.

1 1.5 2 MMboe 2007 2008 2009 2010 0.5

8

BUY Australian Oil

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SLIDE 9

2011 Drilling - Nyuni Tanzania –Targeting 1.2 TCF Gas

  • Proven hydrocarbon system

Bewara West Bewara East

Okuza

  • All proj ects within 20 km of gas plant and

pipeline

  • Increasing local demand from both power

Nyuni West Bewara West Nyuni

0.87 Tcf 0.49 Tcf

generators (3 new plants planned) and industrial end users, commercialisation closer

  • Kiliwani North proven 40 Bcf gas 3 5 km

To Dar es Salaam

Songo Songo East

Nyuni East

Amina Imbi

  • Kiliwani North proven 40 Bcf gas 3.5 km

from gas plant

  • Drilling Nyuni 2 in March/ April 2011

targeting 0.87 Tcf up dip from known gas in

Songo Songo South Songo Songo Kiliwani North

Fanjove North

0.3 Tcf

targeting 0.87 Tcf up dip from known gas in Nyuni 1

  • Fanj ove North next well subj ect to

successful transition zone seismic

Fanjove South Deep South

programme defining top of structure

  • All targets accessible from Islands

5 10 Kilometres

Gas Accumulation Lead Exploration Block f Edge

9

Nyuni Block Tanzania

Exploration Block Development Block Oil Seep Gas Pipeline Shelf

BUY 5%

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SLIDE 10

Nyuni 2 - Target y g

_

  • 2200

Nyuni 1 Nyuni 2 Albian Aptian

A B _ _ _

  • 2300
  • 2400
  • 2500

Albian Aptian Neocomian Gas 15 m Gas Column in Albian Aptian Nyuni 1 SL

_ _ _

  • 2600
  • 2700
  • 2800

Gas Down to in Nyuni 1 Lowest Closing Contour Albian Aptian Nyuni 1 metres AS

S ubstantial structure with four

_ _

  • 2900
  • 3000

Lowest Closing Contour

S ubstantial structure, with four way dip closure

  • Albian/ Aptian age sands proven reservoir in Nyuni 1 and Neocomian age sands tested 40

MMcfg/ day in Kiliwani North 1

  • Neocomian main reservoir in S
  • ngo S
  • ngo Gas Field
  • 20 km from S
  • ngo S
  • ngo Gas Plant

10

S uccess will add 8 MMboe to Bounty’s contingent resources

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SLIDE 11

2011 Drilling - Utopia Development g p p

Warragon Kenmore Black Stump

5 10 Kilometres

Utopia 1 Utopia 2 Utopia 3 Utopia 5 Utopia 6 Utopia 7 Utopia 8 Utopia 9 Finnish 1 Monler North 1 Thunbunnee 1

Cranstoun Endeavour Glenvale Monler Kooyong

Utopia 11H

Ufouria 1 Utopia 10 Utopia 8

  • Utopia 10 successfully intersected

the reservoir but the stimulation

Sirius (Qld) 1 T

  • olerah Creek 1

Nudgee 1

Talgeberry Minni Ritchi Tintaburra Marcoola Tarbat/Ipundu Gimboola Mulberry

B a l l e r a

Utopia 11H

the reservoir but the stimulation caused high water cut.

  • Utopia 11H is a short leg horizontal

from Ufouria 1 to Utopia 1. Drilling

PL 214 ATP 560P U

Ufouria 1 Seagoon 1

g y Toobunyah Kooroopa Kooroopa North Takyah Utopia

B a l l e r a Moomba Jackson

Utopia 10

delayed by wet weather –April 2011

  • Completed 3D to give framework

for further development wells later

Minedella 1 Utopia 4 Hakheem 1 Currawinya 1 Muginanullah 1

Zenoni Oil Field Lead Gas Pipeline Oil Pi li

Utopia 11H 11

for further development wells later in 2011

Targeting wells with 100 – 150 bopd production

Aros 1 & 2

Oil Pipeline

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SLIDE 12

2011 Drilling Naccowlah g

259P N PL 87 PL 182 82

  • Two successful wells drilled in 2010,

Watson West 1 and Irtalie East 1.

  • One exploration and one development

Pitchery PL 25 PL 62

79 105 PL 109 PL 175 181 PL 189 107 149

ATP 259P N

well planned for 2012

  • Two new completions and three new

connections will ensure production (weather permitting) at a substantially

Bogala Gunna Jackson Karri Naccowlah West Pitchery Tinpilla Wilson Naccowlah South PL 23 PL 26 ATP 259P N

(weather permitting) at a substantially higher rate than in 2010

  • Naccowlah will provide revenue in

excess of $1 million per annum

Cooroo North C ll Jackson South Koora Nockatunga Thungo Wallawanny North Winna Kihee Jarrar Dilkera PL 24

PL 76 77

ATP 259P N PL 36

I t li E t 1

excess of $1 million per annum

Corella Echuburra Maxwell

10 20 Kilometres

78 133

Irtalie East 1

Wandilo G N th Minos Tennaperra Tennaperra Watson

Kilometres

PL 35

Watson West 1

12

Naccowlah acquisition adds oil reserves

Genoa Genoa North Watson South

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SLIDE 13

2011 Drilling - S urat Basin QLD Oil Fairway

  • Developing seriatim of oil

g Q y

Gas Field Oil Field Gas Prospect/Lead Oil Prospect/Lead Boxvale Prospect/Lead P d ti Li

p g prospects in the southern S urat Basin

  • Ewokk and Eluanbrook are up

Surat

Production Licence Gas Pipeline Oil Pipeline Well with Oil Show Well With Oil and Gas Show

dip from hydrocarbons in the S howgrounds S andstone

  • Mardi is migration focus in

Boxvale S andstone up dip from

Waggamba

Mardi 0.33 MMbo Bellbird Oil Field Two wells oil to surface possibly 2 MMbOIP

Ungabilla 1

Boxvale S andstone up dip from S howgrounds zero edge, surrounded by oil fields

  • Acquiring 3D seismic over

Oil Fairway

Waggamba

Alton

Mardi 0.33 MMbo

Bellbird

Acquiring 3D seismic over Ewokk to define drilling target for later 2011

  • Bellbird Oil Field, two wells

Eluanbrook 0.3 MMbo Ewokk 0.36 MMbo

Cockatoo 1

Fairymount

flowed oil to surface, unconventional reservoir

ATP 754P

13

Over 1 MMbblo recoverable in targets identified to date

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SLIDE 14

2011 Drilling – Bee Eater g

Gearle Siltstone R diolarite

Bee Easter Prospect Schematic

Rivoli

Windalia Radiolarite Muderong Shale Trap

t i

  • n
  • l

t

Birdrong Sandstone

O i l m i g r a t i

  • n

i n c e p t i

  • n

p

  • s

t f a u l t p r e R

  • u

g h R a n g e A n t i c l i n e

Rough Range Bee Eater

EP 435 - 10% EP 359 - 10%

  • Drilling Bee Eater 1 in 2011 ?

?

  • 5MMbbl oil target with structure timed for oil

charge

Oil Field Gas Field

Rough Range

PL L16 - 10%

  • S

uccess would mean early production through granted production licence

  • Possible shale gas play in Patterson Trough

Lead

EP 412 - 65% EP 359 - 10%

west of Rough Range

10 20

14

Carnarvon Basin onshore targeting 5 MMbblo

Kilometres

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SLIDE 15

BUY will see Ongoing Growth and Core Development p

2012

AC/P 32

2011

ATP 789 Nyuni Tanzania EP 359, 412 & 435

2011 2011/12 2012

ATP 789

Production Exploration High Impact Exploration

PEP 11

412 & 435 Utopia Surat PEL 218 Naccowlah

2011 Ongoing 2012/13

  • Growth Proj ect high impact drilling will continue through to 2013, each with company making targets

PEP 11 Ongoing

  • Core oil development, appraisal and near field exploration will continue with steady revenue

increases and drilling through and to 2012-13

  • Basics will drive BUY S

hare price recovery

15

BUY