Norwest Energy NL Managing Director Presentation to Annual General - - PowerPoint PPT Presentation

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Norwest Energy NL Managing Director Presentation to Annual General - - PowerPoint PPT Presentation

Norwest Energy NL Managing Director Presentation to Annual General Meeting 29 November 2019 NORWEST ENERGY NL ASX:NWE Important Information The information contained in this Presentation or subsequently provided to the Recipient of this


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NORWEST ENERGY NL

29 November 2019

ASX:NWE

Norwest Energy NL

Managing Director Presentation to Annual General Meeting

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The information contained in this Presentation or subsequently provided to the Recipient of this Presentation whether orally or in writing by or on behalf of Norwest Energy NL (“NWE”) or their respective employees, agents or consultants ("Information") is provided to the Recipients on the terms and conditions set out in this notice. The Presentation contains reference to certain intentions, expectations and plans of NWE. Those intentions, expectations and plans may or may not be achieved. They are based on certain assumptions which may not be met or on which views may differ. The performance and operations of NWE may be influenced by a number of factors, many of which are outside the control of NWE. No representation or warranty, express or implied, is made by NWE or any of its respective directors, officers, employees, advisers or agents, that any intentions, expectations or plans will be achieved either totally or partially or that any particular rate of return will be achieved. The Presentation does not purport to contain all the information that any existing or prospective investor may require. It is not intended to be a complete or accurate statement of material information. In all cases, before acting in reliance on any information, the Recipient should conduct its

  • wn investigation and analysis in relation to the business opportunity and should check the accuracy, reliability and completeness of the Information

and obtain independent and specific advice from appropriate professionaladvisers. The Recipient should not treat the contents of this Presentation as advice relating to legal, taxation or investment matters and should consult its own

  • advisers. NWE and its advisers take no responsibility for the contents of this Presentation.

NWE makes no representation or warranty (express or implied) as to the accuracy, reliability or completeness of the information. NWE and its respective directors, employees, agents and consultants shall have no liability (including liability to any person by reason of negligence or negligent misstatement) for any statements, opinions, information or matters (express or implied) arising out of, contained in or derived from, or for any

  • missions from the Presentation, except liability under statute that cannot be excluded.

NWE is not aware of any new information or data that materially affects the information included in any market announcement referenced throughout the Presentation and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materiallychanged. Prospective Resources are the estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) and relate to undiscovered accumulations. These estimates are quoted as gross (100%) and have both an associated risk of discovery and a chance of development. Further exploration, appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.

Important Information

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SLIDE 3

1. 2. 3. 4. 5.

FY19 Review and FY20 Lookahead

6.

Recent gas discoveries transform the Perth Basin, greatly enhancing prospectivity of EP368 & EP426 Norwest’s High-impact well to be drilled in EP368 in CY H1 2020 Completed Xanadu 3D seismic program Divested of L14 minority interest, raising $700,000 Recent capital raising strengthens balance sheet and enables Norwest to participate in drilling at full working interest – preferable to farming out, on a risk vs reward basis. Directors participating in placement, subject to shareholder approval Share Purchase Plan opens today, enabling existing eligible shareholders to participate on the same basis as the placement

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A New Era for the Perth Basin

2014 AWE made a serendipitous large gas discovery at Waitsia Largest onshore gas discovery in over 40 years Opened up new geological play Current reserves estimate 844 Bcf By 2016 first gas produced from Waitsia down the Parmelia Gas Pipeline to Perth Now co-owned by Mitsui & Beach Energy

Waitsia Discovery

Three months ago STX/WGO made a “staggering” gas discovery at West Erregulla-2 Beach Energy subsequently made a further find at Beharra Springs Deep Waitsia not an anomaly WE-2 has 2C resources of 1.2 Tcf gas, and flowed at up to 69 mmscfd from the Kingia Fm. These results significantly enhance prospectivity

  • f NWE’s EP368 and EP426 permits

West Erregulla-2 and Beharra Springs Deep Discoveries

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SLIDE 5

50 100 150 200 250 300 350 400 450 500 550 600 650 700 1960 1970 1980 1990 2000 2010 2020

Cumulative Reserves (mmboe)

Perth Basin Creaming Curve

Waitsia Dongara West Erregulla-2 Beharra Springs Woodada

Example of Typical Mature Basin Creaming Curve

Beharra Springs Deep

?

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SLIDE 6

§ EP368 & EP426: Norwest 20%/22%%, § Operator Energy Resources Ltd* § Adjacent to Strike Energy’s 1.2 Tcf West Erregulla-2 find § Kingia/High Cliff play extends in to NWE’s permits § Beharra Springs Deep result further de-risks gas prospects § Large combination gas prospect, high case 1.1 Tcf+ § Significant oil prospect at Springy Creek, up to 61 MMbbls § Various other structural leads being assessed § JV decision pending on location for drilling by commitment well H1 2020

Perfectly Placed for Big Gas

* A wholly owned subsidiary of Mineral Resources Ltd (ASX: MIN)

Perth LOCALITY MAP Dongara

Australia Western Nor 0012.dgn

10 km

West Erregulla- 2 gas discovery Lockyer Deep Springy Creek

  • il prospect

EP368 EP426 Waitsia 10 kms 1 5 k m s

Beharra Springs Deep gas discovery

North Erregulla Deep

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EP 368/426 Gas Prospect

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Lockyer Deep Low Case North Erregulla Deep Low Case Combination Mid Case Combination High Case

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EP368 EP426

Low Mid High Low Mid High Lockyer Deep 36 7 North Erregulla Deep 131 22 459 1122 92 224 Gross Bcf (100%) NWE Share Bcf (20%)

Upgraded Prospective Gas Resources (Recoverable)

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SLIDE 8

EP 368/426 Seismic Example

Top Cadda Fm Cattamarra Coaly Base Kockatea Shale Top Kingia Fm

3.000 2.500 2.000 1.500 1.000 0.500

Seismic Line 87-01

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me

i

n Seconds

Nor 0009.dgn

T

  • p

C a d d a F m Top Cattamarra Fm Top Wagina Fm Top Kingia Fm Seismic Amplitude “Brightening” within Kingia Fm = possible indicator of gas charge

A A’

Refer to previous slide for line location A-A’

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TP/15: Xanadu Oil Discovery

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I N D I A N O C E A N

Dongara

Perth

LOCALITY MAP

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Oil field Gas field Xanadu Discovery 15km

TP/15 Xanadu Cliff Head Oil Field Xanadu-1 Well Pad

§ Norwest (25% and Operator) with partners Triangle Energy (45%) and 3C Group (30%) § Shallow water oil discovery drilled from

  • nshore location (Sept. 2017)

§ Norwest was fully carried through drilling

  • f exploration well - JVPs now funding pro

rata § 3D seismic program completed in July 2019 § Preliminary results recently released § Updip potential are really limited, downdip potential higher risk but may warrant appraisal drilling § Further engineering & commercial studies required to de-risk downdip area and determine feasibility of appraisal

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TP/15: Xanadu Appraisal

§ Updated structural interpretation reveals significantly different fault geometry § In particular the area updip of Xanadu-1 is smaller than previously thought § A larger oil volume may exist downdip, based on an interpretation

  • f downhole pressure data

§ Further engineering studies are required to determine if this interpretation is valid § Commercial and drilling studies will then follow, to determine the viability of future appraisal/development drilling § Additional potential exists to north and west

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1 4 1 5 1 6 9 1 1 1 Vindara-1 Freshwater Point-1

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Xanadu-1 intersection Downdip Area North Xanadu Lead West Xanadu Lead 3D Survey Area Revised Fault Interpretation post 3D

A A’

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Norwest’s exposure to the Permian gas play offers shareholders and new investors an opportunity to participate in a potential “company maker” Funded to drill in 2020, for what will be perhaps the most exciting drilling campaign in Norwest’s history Commercialisation of Xanadu is not “off the cards”, but does require additional analysis of available data to support further drilling Perfectly placed – NWE is well positioned and well leveraged to benefit from the resurgence of Perth Basin exploration and the emerging “big gas play”

1. 2. 3. 4.

In Summary

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Q&A

Iain Smith Managing Director Norwest Energy NL Tel: +61 8 9227 3240 Mob: 0412 638019 Email: info@norwestenergy.com.au www.norwestenergy.com.au