Good Oil Conference September, 2012 Disclaimer Compliance - - PowerPoint PPT Presentation

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Good Oil Conference September, 2012 Disclaimer Compliance - - PowerPoint PPT Presentation

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Good Oil Conference September, 2012 Disclaimer Compliance Disclaimer This presentation includes certain forward-looking statements that have been based on current expectations about future acts, events and circumstances. These forward-looking

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Good Oil Conference

September, 2012

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2 MEO Australia Limited

Disclaimer

Disclaimer

This presentation includes certain forward-looking statements that have been based on current expectations about future acts, events and circumstances. These forward-looking statements are, however, subject to risks, uncertainties and assumptions that could cause those acts, events and circumstances to differ materially from the expectations described in such forward-looking statements. These factors include, among other things, commercial and other risks associated with estimation of potential hydrocarbon resources, the meeting of objectives and other investment considerations, as well as other matters not yet known to the Company or not currently considered material by the Company. MEO Australia accepts no responsibility to update any person regarding any error or

  • mission or change in the information in this presentation or any other information made

available to a person or any obligation to furnish the person with further information.

Compliance

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3 MEO Australia Limited

Corporate snapshot

ASX & OTCQX listed, SE Asian focus

General

HQ Melbourne, Australia

  • Jakarta branch office

SE Asian portfolio

  • 7 upstream projects (6 offshore)
  • 3 infrastructure projects (Tassie Shoal)
  • With environmental approvals

Core strengths

  • High calibre new venture capability
  • Track record of high value transactions

Top shareholders (31 August 2012)

~9,435 shareholders 30.0% held by top 20 6.25% Raydale Holdings Pty Ltd 4.89% HSBC Custody Nominees (Australia) Limited 4.75% Bentley Capital Limited (LIC – ASX: BEL) 2.34% Merrill Lynch (Australia) Nominees Pty Ltd

Broker Valuations

Target Price

Wilson HTM 9 August 2012 $0.38 Octa Phillip 3 August 2012 $0.54 Fox-Davies 29 February 2012 $0.60

Ticker symbols (ASX / OTC) MEO MEOAY Share Price (ASX: MEO) (31 Aug) A $0.20 Issued shares (million) 539.9 Issued options ($0.50 ex) (million) 18.9 Market Capitalisation (million) A $108 Cash & Cash Equivalents (30-Jun) A $55 Enterprise value (million) A $53 Daily liquidity (3 mth avg) (million) 2.2

S&P/ASX 200

ASX:MEO

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4 MEO Australia Limited

Expanded exploration portfolio

Multiple opportunities for value creation

2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000

2007 2008 2009 2010 2011 2012

Net Area(km2)

Bonaparte Gulf (WA-454-P) South Madura PSC North Sumatra (Seruway PSC) Gulf of Thailand (G2/48) Ashmore/Cartier (Vulcan Sub-basin)) Heron/Blackwood (NT/P68) Carnarvon

1 Permit 4 Permits 3 5 9 10 Permits/PSCs

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5 MEO Australia Limited

Building a portfolio by generating optionality

Multiple opportunities to recover invested capital

Identify & Screen Use:

  • Knowledge
  • Experience
  • Skills
  • Data

Secure Acreage Via:

  • Award
  • Acquisition
  • Farmin

Develop For:

  • Cash

Flow Enhance Prospectivity By:

  • Acquiring

Seismic

  • Interpreting
  • Evaluating

Test Prospectivity By:

  • Drilling
  • Logging
  • Testing

Appraise Resource By:

  • Drilling
  • Testing
  • Evaluating

Cash Flow Abandon Farm- Out ? Partial Sale Partial Sale

Relinquish ? Relinquish ?

Monetisation Opportunities

Aiming for early capital recovery Continually high grade Discipline to terminate

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6 MEO Australia Limited

2012 Drilling Activities

Three wells drilling before year end

Gulf of Thailand Bonaparte Basin North West Shelf North Sumatra East Java Gurame SE-1X

(MEO 100%, 500 Bcf)

Sainampueng -1

(MEO 50%, 10-27 MMstb)

Heron South -1

(MEO 50%, 5 Tcf)

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7 MEO Australia Limited

  • MEO 50%, Eni operator
  • Heron South-1 spudded 24th August
  • Potential 5 Tcf mean prospective gas

resource

Regional Transaction Comparison

Transaction + Buyer Equity consideration US$m/%

+ Assumes all options in

transactions are exercised Evans Shoal Eni 40% $350m $8.75 Barossa/Caldita SK E&S 49.5% $520m* $10.5 Ultimate Recovery Low Best High Raw Gas (Tcf) 3.66 4.96 6.64 MEO Heron Prospective Resource Assessment

Heron South-1: Spudded 24th August

Targeting 5 Tcf potential LNG scale resource

  • Recent transactions

− >$200m 50% Heron/Blackwood − $350m 40% Evans Shoal − $520m 49.5% Barossa/Caldita 2 month drilling program

* Includes FEED costs of US$90m

Heron-1 Heron-2 Blackwood-1 Sea Floor Miocene Cretaceous Wangarlu Formation Elang/Plover Formation Blackwood Heron North Heron South Vee Formation Pliocene Elang/Plover Formation

Line of Cross Section Blackwood Blackwood East Heron

Heron South-1

Heron South

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8 MEO Australia Limited

Gross prospective resources (MEO estimates) Gas in Place (raw – bcf)

  • Recov. sales gas (bcf)

Oil in place (MMstb)

  • Recov. oil (MMstb)

P90 P50 P10 P90 P50 P10 P90 P50 P10 P90 P50 P10 Total 551 971 1,625 273 498 863 188 350 692 24 51 109

Gurame SE-1X drilling October-2012+

Offshore North Sumatra - Seruway PSC (MEO 100%)

  • Gurame SE-1X

− Secured rig: Hercules #208 − Commence approx. early Oct. − 35 day drilling program untested

  • Designed to appraise oil and

gas field initially discovered in 1968

  • Technical studies indicate oil

and gas in two reservoirs

− 51-109 mmbbls*

  • Gurame SE-1X testing gas cap

− 0.5 - 0.9 Tcf low CO2 gas − close to established markets and

infrastructure

− Pressure gradients to constrain

gas-oil contact in two horizons

* MEO estimates, classified as prospective recoverable resources (P50-P10)

LEMURU TERIPANG SALEM KUALA LANGSA ARUN GURAME

25.00 kilometers

LNG Plant (MEO 100%) Ibu High Cluster

SALEM

Juaro Prospect

ExxonMobil Arun LNG Plant Gurame discovery + subject to rig schedule

GURAME

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9 MEO Australia Limited

Gurame SE-1X: October-2012+

Targeting 500 Bcf gas up dip of recovered oil

Baong shale

Mid Baong sands Keutapang reservoirs Belumai sands Belumai carbonates Mid Baong sands

NW SE

Proposed Well Path

Known Gas Potential Gas Known Oil Potential Oil Known Water Potential Water

Fluid Type

Seruway PSC Boundary Coastline Line of Section

A5 A2 A3

Proposed Gurame SE-1X

NW SE SW NE

P(50) Mid Baong Depth Structure Map

Lwr Baong shale

Keutapang reservoirs Baong shale Mid Baong sands Belumai sands Belumai carbonates

SW NE

Expect natural fractures on crest of rollover

LKG -2697m (A5) LKG -3003m (A5) LKO -2777m (1X) HKO -2724m (A2) HKO -3012m (A4) LKO -3038m (A2)

Proposed Gurame SE-1X

ONS-A2 ONS-A5 ONS-A3 P(50) GOC P(50) OWC P(50) GOC P(50) OWC

Mid Baong Belumai

  • Approx. LCC -3150m

DST-1

2.5 km 5.6 km 2.7 km

2500 2600 2700 2800 2900 3000

mTVDss

Oil resource will be significantly larger if

  • il encountered in

Gurame SE-1x.

FIT 5 FIT 1 FIT 2

+ subject to rig schedule

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10 MEO Australia Limited

Gurame SE-1X location

Targeting gas in optimal location to achieve commercial flow rates

Idi North (proj.) A-2 (proj.) A-1 (proj.) G-1X (proj.) Gurame SE-1X (proposed)

HKO -2724m (A2) LKO -2777m (1X) HKO -3012m (A4) LKO -3038m (A2)

fold hinge

Gurame SE-1X (proposed)

  • Natural fractures occur along fold hinge
  • Previous wells intersected oil away from fracture zones
  • Most regional wells do not reach Baong reservoir

Gurame SE-1X targets:

  • natural fractures
  • gas cap of proven structure
  • updip of known oil,
  • within structural closure

LKO = blue plane

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11 MEO Australia Limited

Gulf of Thailand G2/48 (MEO 50%)

Sainampueng-1 drilling November

+ subject to rig availability

THAILAND CAMBODIA MYANMAR

                 

G 2 / 4 8 G 2 / 4 8 G 2 / 4 8 G 2 / 4 8 G 2 / 4 8 G 2 / 4 8 G 2 / 4 8 G 2 / 4 8 G 2 / 4 8

BUALUANG

BANGKOK

JASMINE MANORA

PHNOM PENH 100.0 kilometers

THAILAND CAMBODIA MYANMAR

Bangkok Phnom Penh

GULF OF THAILAND

Patani Basin Rayong Basin Malay Basin Chumpon Basin Hua Hin Basin Western Basin Kra Basin Manora development with planned production expected in early 2014 of approximately 15,000 bopd.

Source: Mubadala Petroleum

Jasmine oil production platform and FSO has produced more than 40 million barrels

Source: Mubadala Petroleum

Rayong 3D Seismic Survey

450 km2 (4Q’11)

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12 MEO Australia Limited

G2/48 Prospects and Leads

~50 MMstb mean prospective resource* potential in top five targets

Basement Sainampueng-1 location Prospective Interval Lower Miocene

A B

Krissana A Krongthong Kalong A Pudsorn Prospect Strong Lead

Lead

Krathin Kosum A Malulee Pudnabad Pikul A B

Sainampueng NW

Concession Boundary

Sainampueng

  • Sainampueng-1 targeted to evaluate thick prospective section and oil prone source rocks
  • Prospective resource range 10 MMstb to 27MMstb (mean to P10)
  • 23 prospects and leads in multiple play types at a number of target levels
  • Estimated 100+ MMstb mean prospective resource* potential
  • Larger identified prospects provide significant follow-up potential

* Unrisked recoverable oil

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13 MEO Australia Limited

Near term farmout opportunities

Three project areas with new data under evaluation

Gulf of Thailand Bonaparte Basin North West Shelf North Sumatra East Java Ibu Horst Exploration WA-454-P Exploration Vulcan Exploration

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14 MEO Australia Limited

Bonaparte Gulf, WA-454-P (MEO 100%)

Blacktip gas pipeline to Darwin

Floyd 3D area Leads (MEO 100%)

  • Awarded permit mid-2011
  • Next to proposed US$6

billion Bonaparte F-LNG project & Blacktip gas production facility

  • Technical studies reveal:

− Probable oil in Marina − Breakwater prospect

  • Acquired 3D early 2012
  • Independent assessment

− Marina contingent gas and probable oil resources − Multi-Tcf Breakwater prospect with potential for significant oil leg(s)

  • Planning farmout launch

Nov-2012

  • Possible drilling in 2013*

Marina oil & gas discovery and nearby Breakwater prospect

* Subject to farmout & rig availability Blacktip (Eni) 100 mmscfd Prod start 2009 Bonaparte FLNG (GDF Suez/Santos ) 2.0 MTA, FID: Target 2014

FRIGATE

Marina Breakwater

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15 MEO Australia Limited

Marina gas and probable oil discovery

Contingent resources: 98–302 Bcf gas + 5–22 MMstb oil (Mean-P10)

OWC=1865m TVDSS

GOC=1842m TVDSS

Gas Gradient=0.267psi/m Zone 1 Top: 1834.7m TVDSS

Marina structure is a simple four way rollover (low side fault bend fold)

P90 Mean P10 Gas (Bscf) 51 98 302 Condensate (MMstb) 0.4 1.5 7.5 Oil (MMstb)

  • 5

22 Total Liquids (MMstb) 0.4 6.5 29.5

Contingent Resources (Recoverable) *

* Source: Senergy, February 2012

Marina Zone 1 Depth map (interpreted on Floyd 3D)

Certified P50 OWC = 1,865m TVDSS Certified P50 GOC = 1,842m TVDSS

Probable 23m Oil column

ZONE 1 ZONE 2 ZONE 3 ZONE 4 ZONE 5

Lower Permian Sands

GR RES D/N DT PHI SW K GAS

MDT

MDT sample recovered Gas and Liquids

Note: Volumes will be updated with inputs from Floyd 3D seismic

Probable 23m oil column

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16 MEO Australia Limited

Breakwater prospect WA-454-P (MEO 100%)

Multi-Tcf gas prospect with potential for 40-200 MMstb oil (Mean-P10)

Gas only Scenario P90 Mean P10 Gas (Bscf) 205 751 2,798 Condensate (MMstb) 1.4 13 87 Total Liquids (MMstb) 1.4 13 87

Un-Risked Prospective Resources (Recoverable) *

Gas & Oil Scenario P90 Mean P10 Gas (Bscf) 173 636 2,391 Condensate (MMstb) 1.1 11 75 Oil (MMstb) 8 41 201 Total Liquids (MMstb) 9.1 52 276 * Source: Senergy, February 2012. Volumes will be updated with inputs from Floyd 3D seismic Near A4 TWT structure map

Amplitude cut-off on Fullstack = Spill point

A B Same amplitude

cut-off as Western compartment

SALT Breakwater South East compartment (Floyd 3D) Potential for deeper plays

A B

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17 MEO Australia Limited

Vulcan Sub Basin (MEO 100%)

New Seismic acquired in AC/P50, AC/P51 & AC/P53

  • Contiguous permits in

proven hydrocarbon play fairway – acquired via purchase (Dec 2010) & gazettal (June 2011)

  • Zeppelin 3D & 2D

surveys acquired in Jan/Feb 2012

  • Processed 3D survey

delivered June 2012

  • Preliminary assessment

supports likely elevation

  • f several leads to

prospects

  • Forward plans:

− Mature drillable prospects − Seek farm-in partner

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18 MEO Australia Limited

Possible flat spot and sag below suggestive of potential hydrocarbons

KV Permian

Top ultimate seal Possible flat spot? Candidate sag due to

  • verlying

hydrocarbon? Top reservoir

  • r seal?

Potential closure height 250-300m

Lead has structural closure of 250-300m

A B

A B

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19 MEO Australia Limited

North Sumatra - Ibu Horst 3D

Identified significant structural closure updip of ONS B-1 ‘discovery’

ONS B-1 (projected) Amplitude Anomaly at Seurula (similar anomaly contained gas at NSO-2N) W E N S ONS B-1 well recovered ~14 MMCFD + 600 BCPD from edge

  • f structure

ONS B-1 Updip Structure

Ju Juar aro Area ea St Struct uctur ure e Map Map

SAL SALEM EM-1 NSO SO-2N 2N ONS S B-1 1 Updip St Structure

W E N S

ONS S B-1

LEMURU TERIPANG SALEM KUALA LANGSA GURAME 25.00
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20 MEO Australia Limited

North Sumatra - Ibu Horst 3D

Revealed potential extent of deep carbonate clipped by NSO-2N

W E

NSO-2N (projected) NSO-2N (projected

Deep Carbonate Deep Carbonate NW SE SW NE NSO-2N intersected edge

  • f deep carbonate.

Logs indicate potential by passed pay in deep section. FIT recovered gas from amplitude anomaly in Seurula formation

Ibu Ibu Alpha lpha St Struct uctur ure e Map Map

NW SE SW NE

NSO SO-2N 2N

LEMURU TERIPANG SALEM KUALA LANGSA GURAME 25.00
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21 MEO Australia Limited

Realising portfolio potential

Three near term high impact wells – similar activity level expected in 2013

Identify & Screen Use:

  • Knowledge
  • Experience
  • Skills
  • Data

Secure Acreage Via:

  • Award
  • Acquisition
  • Farmin

Develop For:

  • Cash

Flow Enhance Prospectivity By:

  • Acquiring

Seismic

  • Interpreting
  • Evaluating

Test/confirm Prospectivity By:

  • Drilling
  • Logging
  • Testing

Appraise Resource By:

  • Drilling
  • Testing
  • Evaluating

Immediate focus is:

  • Three 2012 wells

− Heron South -1 5 Tcf (underway) − Gurame SE-1X 500 Bcf, 50 MMstb (October − Sainampueng -1 10 – 27 MMstb (November)

  • Advance technical work prior to farmout

− Marina/Breakwater (WA-454-P) Bonaparte Gulf (November) − Vulcan Sub-basin (AC/P50 & 51) Ashmore/Cartier (~1Q 2013) − Seruway Ibu Horst North Sumatra (~1Q 2013)