Investor Presentation September 2011 Disclaimer This presentation - - PowerPoint PPT Presentation
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
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.
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
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
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
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
Top Team
Hawkley Oil & Gas 7
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
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
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
Production & Sales
Hawkley Oil & Gas 11
Sales
Hawkley Oil & Gas 12
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
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)
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
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
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
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
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
Strategic Development: Intent
Hawkley Oil & Gas 20
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
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