Investor Presentation September 2011 Disclaimer This presentation - - PowerPoint PPT Presentation

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Investor Presentation September 2011 Disclaimer This presentation - - PowerPoint PPT Presentation

Investor Presentation September 2011 Disclaimer This presentation contains certain forward - looking statements. All statements, other than statements of historical fact, that address activities, events or developments that Hawkley Oil and


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SLIDE 1

Investor Presentation

September 2011

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SLIDE 2

Disclaimer

Hawkley Oil & Gas 2

This presentation contains certain “forward-looking statements.” All statements, other than statements of historical fact, that address activities, events or developments that Hawkley Oil and Gas Ltd believes, expects or anticipates will

  • r may occur in the future are forward-looking statements.

Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect”, and “intend” and statements that an event or result “may”, “will”, “can”, “should”, “could”, or “might” occur or be achieved and other similar expressions. These forward-looking statements reflect the current internal projections, expectations or beliefs of Hawkley Oil and Gas Ltd based on information currently available to Hawkley Oil and Gas Ltd. Forward-looking statements are subject to a number of risks and uncertainties, including those detailed from time to time in filings made by Hawkley Oil and Gas Ltd with securities regulatory authorities, that may cause the actual results of Hawkley Oil and Gas Ltd to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Hawkley Oil and Gas Ltd. Hawkley Oil and Gas Ltd expressly disclaims any obligation to update or revise any such forward-looking statements. Not for distribution to United States newswire services and not for dissemination in the United States. The securities discussed herein have not been and will not be registered under the United States Securities Act of 1933 (the “US Securities Act”), as amended, or the securities laws of any state and may not be offered or sold in the United States or to US persons (as defined in Regulation S of the US Securities Act) unless an exemption from registration is available.

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SLIDE 3

Why Ukraine?

Hawkley Oil & Gas 3

 Undeveloped discoveries  Minimal competition  Favourable terms  Market prices

Favourable commercial terms

Contractor receives 100% of sales revenue directly ‘Contractor Take’ is high relative to many PSA’s Prices not fixed by government

Minimal competition

Hawkley was the only bidder for its two licences

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SLIDE 4

Hawkley

Hawkley Oil & Gas 4

Key Elements of Business Model

 Assets in a prolific hydrocarbon basin  Appraisal of undeveloped discoveries  100% ownership of assets  Operating subsidiary with local expertise

Focus on generating revenue Hawkley’s first well is generating revenue Appraisal well drilling in second licence Production infill well to spud in Nov11

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SLIDE 5

Sorochynska Appraisal Success (well 201)

Hawkley Oil & Gas 5

Horizontal Scale

Legacy wells 469 and 110 produced gas condensate from the B18 reservoir 110 produced 3 BCF (1988-91) at no more than 4 MMCF/d

(Shut-in after water invaded from higher zone)

Hawkley’s well 201 produced at >7 MMCF/d at startup

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SLIDE 6

Presentation Outline

Hawkley Oil & Gas 6

Top Team Milestones Capital Structure & Share Price History Snapshot Production & Sales Assets Reserves & Upside Forward Programme Strategic Development Overview

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SLIDE 7

Top Team

Hawkley Oil & Gas 7

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SLIDE 8

Milestones

Company formed Licences acquired Drilling began in Sorochynska Licence ASX Listing via RTO raises $5.5 million

2.75 million shares @ $0.20ea

Production & first revenue Drilling began in Chernetska Licence Placement raised $15.1 million

40.86 million shares @ $0.37ea Hawkley Oil & Gas 8

Jun 2006 Nov 2009 Jul 2007 Jun 2010 Feb 2011 May 2011 Jun 2011

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SLIDE 9

Capital Structure & Share Price History

Market Downturn In August, the AIM Oil and Gas Index was down 44% on 7th February (Edison) Hawkley Oil & Gas 9

Sorochynska-1 announcements & testing

0.24

Market downturn

Feb

HOLDER NAME % OF ISSUED SHARES Avenger Inv Holdings Ltd 9.1 Acetone Ltd 8.9 Paul Morgan 6.4 Lextrop Wealth Inc 6.3 Ballure Trading Ltd 4.3 Citicorp Nom PL 4.2 HSBC Custody Nom Aust Ltd 3.6 Ogden Grp PL 1.7 Mainplay PL 1.7 Dove Nom Ltd 1.5

Ticker Symbol HOG

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SLIDE 10

Snapshot

PRODUCTION

  • 6.8 MMCF/d gas, plus
  • 230 bbl/d condensate

Limitations at the processing plant Hawkley to build own plant in 2012

Hawkley Oil & Gas 10

Producing 1,300 BOE/d

Figures are net of 20% VAT

SALES

  • US$11.2/MCF gas
  • US$90/bbl condensate

Production taxes, variable FINANCIALS

  • Revenue running at >US$25 million/yr
  • Operating cashflow margin c50%
  • Aus$13 million cash reserves
  • No debt

2011 and 2012 programme funded

September average

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SLIDE 11

Production & Sales

Hawkley Oil & Gas 11

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SLIDE 12

Sales

Hawkley Oil & Gas 12

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SLIDE 13

Processing Facilities

Hawkley Oil & Gas 13

 Current arrangement delivered

early revenue

 But cost penalty and design

limitations

Plast Gas Handling Plant

Alternative solution needed for growth and efficiency: A new plant dedicated to Hawkley production Estimating Q3 2012 commissioning

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SLIDE 14

Assets

Hawkley Oil & Gas 14

After 5yrs, a licence can be renewed for 5yrs,

  • r converted to a 20yr production licence

Exploration & Pilot Production Licences

SOROCHYNSKA CHERNETSKA

Licence Interest

100% 100%

Acquired

August 2007 July 2007

Term

5 Years 5 Years

Licence Area

105km2 52km2

Historical Wells Drilled

9 6

Hawkley Wells Drilled

1 1 (drilling)

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SLIDE 15

Asset Diversity

Assets have exploration, appraisal and production diversity

Hawkley Oil & Gas 15

Development & Production Exploration & Appraisal Non-Operated Business New Ventures

TIME-MATURITY

Sorochynska Chernetska B20 B21-22 B24/25 B24/25 B26

Work in Progress…

‘B’ reservoir plays: 6 billion boe reserves in 160 fields 40% of basins’ reserves (85% as gas condensate)

B18 B17 B19 B20

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SLIDE 16

Chernetska Appraisal Programme

Hawkley Oil & Gas 16

Mobilisation Drilling Testing & Comp. Connection Production

Chernetska-1 Well  Drilling ahead @2,807m (Sept 18)  B20 reservoir target prognosed at 4,360m  Expecting to reach B20 mid-October  Deeper targets: B21/22, B24/25, B26

2011 2012

Chernetska-1

?

?

B20 oil

?

Gas

  • r
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SLIDE 17

Reserves & Upside

Hawkley Oil & Gas 17 78% Gas (130bcf) 16% Condensate 06% Oil

By Reservoir By Category By Type

66% Chernetska 34% Sorochynska

By Licence

Source: RISC (Hawkley Prospectus, 2010)

28 MMboe unrisked

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SLIDE 18

Chernetska Upside Potential: B24/25 carbonates

Hawkley Oil & Gas 18 Chernetska-1 target

Lak-2 flowed at 2 MMCF/d Lak-7 flowed at 1.5 MMCF/d

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SLIDE 19

Forward Programme

Update reserves assessment (CPR) TD the Chernetska-1 well

Hawkley Oil & Gas 19  Drill and complete Sorochynska infill well  Design & build Sorochynska gas plant  Convert Sorochynska to Production Licence

Appraise B24/25 Diversify In progress Next 12 months

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SLIDE 20

Strategic Development: Intent

Hawkley Oil & Gas 20

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SLIDE 21

Overview

Hawkley Oil & Gas 21

 Revenue achieved from first well drilled  2011 and 2012 work programme fully funded  New wells could take production to 3,000 BOE/d and

gross revenue to $50-$100 million/yr

 Exploration upside in both licences

Good foundation established: A platform to create a sustainable business in Ukraine Strategic aim, opportunity and capability to diversify and develop into a mid-cap multinational E&P company

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SLIDE 22

Contact Information

Hawkley Oil & Gas Australia

45 Ventnor Avenue West Perth, WA Australia Tel +61 8 9429 8803 Fax +61 8 9429 8800 Email theal@hawkleyoilandgas.com

Ukraine

Boulevard Tarassa Shevchenka 35 Kyiv 01032 Ukraine Tel +380445697418 Fax +380445697416 Email

  • ffice@primegas.com.ua

www.hawkleyoilandgas.com