For personal use only Company Announcements Australian Stock - - PDF document

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For personal use only Company Announcements Australian Stock - - PDF document

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PETSEC ENERGY LTD ACN 000 602 700 11 July 2007 For personal use only Company Announcements Australian Stock Exchange 20 Bridge Street Sydney NSW 2000 Dear Sirs Presentation Macquarie Bank Attached is a copy of presentation to be

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Level 13, Gold Fields House, 1 Alfred Street, Sydney NSW 2000, Australia PO Box R204, Royal Exchange NSW 1225, Australia Telephone (61 2) 9247 4605 Facsimile (61 2) 9251 2410 Company information is available on: www.petsec.com.au

PETSEC ENERGY LTD

ACN 000 602 700

11 July 2007 Company Announcements Australian Stock Exchange 20 Bridge Street Sydney NSW 2000 Dear Sirs Presentation – Macquarie Bank Attached is a copy of presentation to be delivered today by Mr Ross Keogh at Macquarie Bank’s Emerging Oil Corporate Day.

For Further Information: Mr Craig Jones Mr Ross A Keogh Petsec Energy Ltd Petsec Energy Inc. Level 13 3861 Ambassador Caffery Parkway 1 Alfred Street Suite 500 Sydney NSW 2000 Lafayette LA 70503 Tel: 612 9247 4605 Tel: 1 337 989 1942 Fax: 612 9251 2410 Fax: 1 337 989 7271

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PETSEC ENERGY PETSEC ENERGY An Exploration and Production C An Exploration and Production Company in mpany in The USA and China The USA and China Macquarie Bank Macquarie Bank Emerging Oil Corporate Day Emerging Oil Corporate Day Sydney, Australia Sydney, Australia July 11, 2007 July 11, 2007

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The information presented herein contains predictions, estimates and other forward looking statements that are subject to risk factors that are associated with the oil and gas business. Although the company believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those included in the forward-looking statements include the timing and extent of changes in commodity prices for oil and gas, the need to develop and replace reserves, environmental risks, drilling and operating risks, risks related to exploration and development, uncertainties about the estimates of reserves, competition, government regulation and the ability of the company to meet its stated business goals. All references to dollars in this presentation are to US currency, unless otherwise stated.

FORWARD STATEMENT DISCLAIMER

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Petsec Energy Ltd

A growth exploration & production company

Operations in the Gulf of Mexico, USA and Beibu Gulf, China 2P Reserves at 31 December 2006 (Petsec estimate) USA: 38 Billion cubic feet of gas equivalent China: 3.6 – 4.6 Million barrels of oil Prospect Inventory USA: 290 Bcf + 30 MMbbl oil China: 5 – 8 MMbbl oil 2006 Cashflow of US$45 million Current production of 20 MMcfe/d Market capitalisation A$220 (9/7/07)

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Personnel - USA

Ross Keogh – President

  • 25 years experience in the oil & gas industry
  • Bachelor of Economics degree

Michael Radabaugh – Vice President of Business Development and Planning

  • 25+ years experience in petroleum exploration and production
  • Bachelor of Science in Civil Engineering

Denis Swords – General Counsel and Secretary

  • 7 years experience as an exploration geologist
  • 15+ years experience as legal counsel for oil and gas companies
  • Master of Science in Geology; Juris Doctorate

Frank Steele – Land Manager Edward Blaise - Geologist

  • 25+ years landman experience

30+ years experience in the oil and gas industry

  • Certified Professional Landman

Bachelor of Science in Geology Nick Repar – Geophysicist Larry Teter - Geophysicist

  • 25+ years experience in the oil and gas industry

25 years as a geophysicist

  • Bachelor of Science in Applied Geophysics

Bachelor of Science in Geology Michael Welborn – Reservoir Engineer Team of 30

  • 30 years in the oil and gas industry
  • Bachelor of Science – Petroleum Engineering

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Gulf of Mexico

53 Offshore Leases 18 Held by production

Terrebone Parish

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Why the Gulf of Mexico

Infrastructure (One Land Owner - Regulator) 1,141 Oil & Gas Fields - 1.6 MMBO & 10.1 BCF Per Day 14,000 Miles of Pipeline Majors exploring/developing deep water leaves opportunities for proven shelf acreage e.g. W&T ACQ KERR-McGEE SHELF 150 MMCFe/D & 330 BCFe MMS ESTIMATE GOM SHELF Remaining Proved Reserves 4,870 MMBO & 21.5 TCF 777 MMBO & 15.4 TCF Unproved Reserves 3,361 MMBO & 9.0 TCF 201 MMBO & 3.1 TCF

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Gulf of Mexico - Lease Turnover For personal use only

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Gulf of Mexico – Top 50 Producer For personal use only

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Gulf of Mexico – Producing Assets

  • Production

8.2 Bcfe (2006 year)

  • Operating Cashflow US$ 44.4m (2006 year)
  • Producing fields
  • Vermilion 258
  • Main Pass 18/19
  • Mobile Bay 953/955

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Mobile Bay Development – Q4 ‘07

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Mobile Bay 952A Platform

  • Acquisition:
  • Mobile Bay 952A platform & pipelines
  • Mobile Bay 955 lease, pipelines & 1

producing well

  • Mobile Bay 953 lease & 2 producing wells
  • Host facility for production of discoveries at

Mobile Bay 993, 994, 950, 951 & VK26.

  • Consideration is assumption of abandonment

liabilities

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Mobile Bay 993, 994, 950 & 951

4” 6” 6” 6” MO 953-1 MO 953-3 MO 950-1 Single Well

IP Rate 5 MMCFD

MO 993-1 Single Well

IP Rate 6 MMCFD

MO 994 A 2 Wells MO994-2

IP Rate 3 MMCFD

VK26-1

IP Rate 3 MMCFD

MO 951-1 Single Well

IP Rate 4.2 MMCFD

MO 952 A Host Platform 40 MMCFD Capacity MO 953-3

Rate 5 MMCFD

Remote Wells

IP Rate 21.2 MMCFD Total

6” Sales Line

IP Sales Rate 26.2 MMCFD Petsec Energy Petsec Energy Petsec Energy Petsec Energy

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Mobile Bay 873

6”

MO 829 Single Well

IP Rate 9 MMCFD Petsec Energy

Subsea Tie In To DIGP Sales Line

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Petsec - Focus Gulf of Mexico Joint Venture

  • Exploration partnership targeting OCS lease sales
  • Complimentary strengths

– Petsec’s offshore operating expertise – Focus’s dedicated full-time prospect generation

  • 50% interest in 33 OCS lease blocks acquired mid-2006

– Continually being high graded – No mandatory commitment to drill – 3D seismic in house

  • JV to continue in 2007 & 2008 with a 35% W.I

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Petsec - Focus Joint Venture Current Status

7 wells drilled to date 7 wells drilled to date

  • 6 successful – Mobile Bay
  • 1 dry hole – Eugene Island 310
  • Petsec expected reserves 59 BCFE gross, 19.6 MCFE net
  • F&D costs to date including Eugene Island 310 - $1.76/mcfe

29 currently identified prospects remaining 29 currently identified prospects remaining

  • Expect to drill approximately 60% over next 3 – 4 years
  • Petsec risked expected reserves 165 BCFE
  • Future capital - $120 MM for drilling & $210 MM for development
  • Projected F&D costs $2.00/mcfe

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20 40 60 80 100 120 140 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13

MMcfe/day Vermilion 258 MP 19/18 Mobile China Onshore Focus Gas Focus Oil

Petsec – Indicative Production Profile Existing Reserves + US Prospects

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Gulf Coast - Moonshine Exploration

  • West bank of Mississippi River,

50 miles west of New Orleans

  • 94 square mile area, only 25%

cover with 2D seismic, no previous 3D seismic

  • Known productive area
  • 340 Bcfe gas, 7.3 MMbbl oil
  • 3D seismic programme

completed in August 2005

  • Drilling commenced April 2007

36 - 37.5% NRI Operator

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Moonshine Drilling

  • Bowie Lumber # 1 well encountered tight gas and not completed
  • Rig released and seismic to be reprocessed
  • Drilling potentially to resume in 4th qtr of 2007

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Terrebonne Parish- AVO Prospect Package

A A’

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A A’ # C-17

Terrebonne Parish- AVO Prospect Package

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China – Beibu Gulf For personal use only

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China 6-12 South Oil Discovery

  • 320 feet net hydrocarbon pay, including

270 feet net oil

  • Oil extends down dip beyond structural

closure

  • 70-100 MMbbl OIP
  • 30 - 50% oil recovery
  • Appraisal flow-test 5,750 boe/day
  • Updip side-track - cores
  • Downdip side-track - downdip potential
  • Estimated reserves 6.12/6.12.S Area

19-37 MMbbl 2.3-4.5 MMbbl net to Petsec

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China 6.12/6.12 South Oil Development

Development Options Development Options

  • WHPP – FSO
  • WHP - FPSO
  • Production capacity 20,000-25,000 bopd
  • Capacity to tie 12.8W/E & 12.2/12.3 into

6.12S facility

  • Development Timing

– Feasibility Study 1Q 2007 – Overall Development Plan mid 2007 – Final Investment Decision 3Q 2007 – Start development 4Q 2007 – Production 1st half 2009

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China 6.12 Area Exploration– 4 wells Q4

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Financial Performance 2002-2006

2 4 6 8 10 2003 2004 2005 2006

Production Bcfe

15 30 45 60 75 2003 2004 2005 2006

Net Revenue US$ Million 10 20 30 40 50 2003 2004 2005 2006 EBITDAX US$ Million

10 20 30 40 50 2003 2004 2005 2006 Net Operating Cashflow US$ Million

3 yr CAGR 33% 3 yr CAGR 35% 3 yr CAGR 22% 3 yr CAGR 41%

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Operating Margins 2002 – 2006

2 4 6 8 2003 2004 2005 2006

Gas Price Received US$/Mcfe

0.5 1 1.5 2 2003 2004 2005 2006

Total Operating Expenses US$/Mcfe

2 4 6 2003 2004 2005 2006

EBITDAX (Cash Operating Margin) US$/Mcfe

0.6 1.2 1.8 2.4 3 2003 2004 2005 2006 Finding & Development Costs (3yr average - 2P Reserves) US$/Mcfe

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2007 Outlook

  • Development

Main Pass 18 gas China 6.12/6.12 South Mobile Bay gas

  • Exploration

US 20 - 40 Bcfe gas China 4 - 6 MMbbl oil

  • GOM 4 - 6 wells
  • China 4 - 6 wells
  • Onshore 4 - 6 wells
  • Cash on hand

US$ 33 million (April 30 2007)

  • Production

7.5 - 8.5 Bcfe

  • Cashflow

US$ 40 - 45 million

  • Capex US/China

Exploration US$ 30 - 35 million Development US$ 28 million

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10 20 30 40 50 60 1980 1990 2000 2005 2010 2020 2030

Natural Gas Petroleum Nuclear Coal

Nonhydro renewables Hydropower

History quadrillion Btu

Energy Consumption by Fuel 1980-2030

Source: EIA Annual Energy Outlook 2007

Projections

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29 20 40 60 80 100 120 140 1980 1990 2000 2005 2010 2020 2030

Net imports Consumption Production Projections History

Total Energy Production & Consumption 1980-2030

quadrillion Btu

Source: EIA Annual Energy Outlook 2007

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Natural Gas Production, Consumption, and Imports

5 10 15 20 25 30

1960 1970 1980 1990 2000 2010 2020 2030 (trillion cubic feet 16% 21%

Net Imports Consumption Production

Natural Gas Net Imports, 2005 and 2030 (trillion cubic feet)

3.0 0.6 0.9 4.5

1 2 3 4 5 6 7

Pipeline Liquefied Natural Gas 2005 2030

Source: EIA Annual Energy Outlook 2007

20.5 Tcf 26.1 Tcf

History Projections

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Conclusion

  • Successful explorer
  • Strong growth in reserves/production/cashflow
  • High profit margin reserves
  • Strong cash flow
  • Large prospect inventory provides basis for

continuing growth

  • Experienced management team
  • Exposure to two recognised regions

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