CURRENT EXPLORATION IN THE BAHAMAS · current exploration in the bahamas: activity promoted by new...
Transcript of CURRENT EXPLORATION IN THE BAHAMAS · current exploration in the bahamas: activity promoted by new...
CURRENT EXPLORATION IN THE BAHAMAS:
ACTIVITY PROMOTED BY NEW REGULATIONS SIMON POTTER CHIEF EXECUTIVE OFFICER
Disclaimer
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Bahamas Petroleum Company: Introduction
Licences to explore: 2007
• 4 million acres
• 16,000 km2
• 672 OCS Lease blocks
• Nassau 168 miles, Andros 80 miles
• Cuba: 25 miles
Listed London: 2008 (AIM: BPC)
Nassau office and staff
$50 million spent to date
Advantages
• Prospectivity
• Cost structure
• Technology application
• Fiscal stability
Anticipated BPC location
Commenced December
Previously drilled wells
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BPC(P)
FTSE AIM Oil & Gas
FTSE AIM All Share
Capital Structure
3
Enterprise Value Current Substantial* Shareholders as at 28th February 2013
Shareholder
TD Waterhouse
Hargreaves Lansdown
Barclays Stockbrokers
HSDL Stockbrokers
Selftrade Stockbrokers
Standard Life Investments
HSBC Private Bank
Majedie Asset Management
Total – Top 25 Shareholders
816,263,419 66.34%
Total Shares in Issue 1,230,479,096
* Holding over 3% of shares on issue
* Share price and Market Cap as at 5 April 2013 ** Based on figure disclosed in Interim Financial Statements to 30 June 2012
GBP USD Price* 0.0500 0.0775
52 Week High 0.1175 0.1821
52 Week Low 0.0385 0.0597
Market Cap (mm) 61.5 95.4
Cash and Cash Equivalents (mm)** 17.2 26.7
Enterprise Value (mm) 44.3 68.7
Existing register
85% UK, 10% Europe, 5% R0W
Retail +70%
Future
Bahamian Depository Receipt (BDR)
Growth in ADR & institutional base
Bahamian election
Compliance letter from Minister confirming
referendum
Government confirms drilling
mandate
3D seismic results
Funding - Sources and Uses
4
Current sources US$m
Cash as at 1/1/11 6.1
Cash raised 1 70.1
TOTAL SOURCES 2 76.2
1 in the 6 months to 30/6/2011. Net of raising costs
2 Additional sources expected from farm in
Sources Uses (Estimated - beginning 2011 to end 2013)
Operating expenditures US$m
2D seismic 3.4
3D seismic 34.4
Other Technical Projects 2.2
Technical staffing/Consulting 1 2.4
Licence Related Costs 2.0
2011 Non-recurring costs 2 3.3
Sub-Total 47.7
Corporate Costs 2011/12 13.5
TOTAL USES 3 61.2
1 Including preparation for drilling 2 Raising, Personnel and Legal costs 3 Period 1/1/11 – 31/12/13
Note: BPC is debt free
˃ Farm-in negotiations rejuvenated by clarity on drilling mandate
˃ Drilling program to be funded from new sources (Farm-in)
˃ Licence expenditure obligations met and exceeded
˃ Net cash balance end 2013 assuming all estimated uses ~ US$15 million before any new sources
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Regional Prospectivity
Cuba drilled holes
Anticipated BPC location
Announced December Spud
Anticipated well locations
Previously drilled wells
Regional Prospectivity
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Oil Shows
Some good source rock
Good reservoir/seal intervals
Normally pressured
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High quality data. Good correlation across faults gives higher confidence of fault picks
Cretaceous reef/platform imaging significantly improved. Better imaging of deeper section
Interpretation suggests the potential for a thicker Jurassic (source) interval
Pronounced dip to the south-west; Opens migration pathway to beneath Cuban ramp
Significantly larger potential fetch area to the south and west
Seismic Acquisition: 3D PSDM
Cuban Border Nassau 270 kms Trend A Fold B Fold C
N
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Seismic Acquisition: 3D PSDM - Structure Maps
Trend A
Fold B
Fold C
Fold B
Fold C
Fold B
Cross-section
High to Low
Cuban Border Andros
Trend A
Fold B Fold C
Depth
Length
Closure
Area
Fold B
700m
~75kms
423 km2
(104,526 acres)
Fold C
950m
~25 kms
63 km2
(15,814 acres)
Late Cretaceous
Albian
Aptian
Depth
Length
Closure
Area
Fold B
2,400m
~75kms
288 km2
(71,166 acres)
Fold C
3,250m
~25 kms
64 km2
(15,814 acres)
Competent Persons Report
• Multiple billion bbl potential
• Risking 35 – 23% Folds B/C
Conclusion
• Residual source risk
• Only reduced by drilling
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Original and Relocated Pseudo Doubloon Saxon - 1
DS-1 Pseudo DS-1
3D data
2D data
First Evaporite
Notice good tie between 2D and 3D seismic data
tim
e
First Evaporite
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Seismic Facies – Lower Aptian to Jurassic
Interbedded Anhydrite (seal) and porous
Dolomite (reservoir)
• High amplitude, high frequency reflections
• Lower Cretaceous; regional evaporite basin
• ~1,400’ gross reservoir seen in DS-1 in this
equivalent interval at and below ~16,000’
Cuban Border Nassau 270 kms
Trend A Fold B
Trend A Fold B Fold C
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Seismic Facies – Lower Albian to Aptian
Carbonate platform mega bank
• Continuous high to low amplitude, variable
frequency reflections
• Gradual deepening of water depth
• ‘Fast’ carbonates with porous intervals
Cuban Border Nassau 270 kms
Trend A Fold B
Trend A Fold B Fold C
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Seismic Facies – Albian Reef and Platform
North-east facing reef margins and platform
• Platform edge and margin clearly imaged
• Poorer data quality under karsted Albian margin
• High porosity and possible cavern development –
good reservoir; seal mechanism? Drilling impact?
• Younger mid Cenomanian reef and margin clearly
imaged Cuban Border Nassau 270 kms
Trend A Fold B
Trend A Fold B
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Seismic Facies – Albian Deep Water Facies
Deep water marine mudstone
• High amplitude continuous reflector
• Further deepening of water depth and break up of
mega platform
• Provides quality seal interval over structure
• Interval not present in previously drilled wells
Trend A Fold B
Cuban Border Nassau 270 kms Trend A Fold B Fold C
Perseverance #1 Well Plan
3D seismic data to safely plan well
Planned well depth: 22,500 feet
Water depth at location: 1,500 feet
1 year to plan, 120 days to drill
Anticipated well cost: $120 million
Drilling rig with upgraded and advanced
safety mechanisms
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N
15
Well Target Comparison: Cuba / Bahamas
NW SE
Corte Seismico
Corte Geologico
SW
NE
T
K
T
K
T
K
J
J
J
* Equivalent well bore depths ~ 4,800m – 16,000’
North Cuba Basin
• Transpressional structures; high
standing fault blocks
• Mesozoic carbonates buried
beneath a thick Tertiary cover
• Drilled wells only tested upper
part of carbonate interval
Bahamas
• Compressional thrust fault related
anticlines
• Thin Tertiary cover above Mesozoic
carbonates
• Lowermost Cretaceous units most
prospective – regional evaporites
interbedded with porous dolomites
*
*
*
US Gulf Bahamas
Rock Type Sandstone & Shales Carbonates
Rate of Sediment-ation
Rapid 20,000’ < 10 million
years
Slow 20,000’ ~ 200 million
years
Compaction High Low
Pore Pressure Abnormal – High Normal
Major Shipping Lanes
Atlantic Ocean
Abaco
Grand Bahama
Eleuthera
Cat Is.
San Salvador
Rum Cay
Samana Cay Crooked Is.
Long Is.
Andros
Exuma
Exuma Cays
Cuba
Cay Sal
Great Bahama Bank
New Providence
BPC Exploration Well Zarubezhneft currently drilling Wells drilled in Cuba 2012 Anticipated well locations for 2013
Storages
Oilfields
Oil Pipeline Gas Pipeline
Martin Mesa Field Jarahueca Field
Motembo Field
Central Basin Fields (4)
Boca de Jaruco Fields (5)
Pto. Escondido Yumuri Fields (2)
Santa Cruz
Varadero Fields (7)
Refineries
Terminals
Sustainable: Oil and Gas Activity Already Exists!!
Cayo Coco 10 563 ft (3,200m)
Cay Sal IV-1
Joides 101
Joides 100
Joides 99
Long Is. - 1
Andros - 1
GT. Isaacs
Coastal State -1
Doubloon Saxon -1
Joides 98 Williams
Historic Boreholes
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Incident Prevention and Risk Mitigation
Ability to immediately mobilize vessels, aircraft,
containment equipment and skimming equipment
MA
RP
OL
73
/78
COLO
REG
’s
OP
RC
The
Mer
chan
t
Ship
pin
g (O
il
Po
lluti
on
) A
ct
Bah
amas
Oil
Spill
Co
nti
nge
ncy
Pla
n
Tier
III
Res
po
nd
er
Inte
rnat
ion
ally
Ap
pro
ved
SOP
EP P
lan
s
Enh
ance
d
Pet
role
um
Re
gula
tio
ns
Cuba production and
transhipment √ √ √ √
√
Cuba exploration √ √ √ √ √
International Oil Transport √ √ √ √
√ √
√
Transhipment to
BORCO/SRP √ √ √ √ √ √ √
Domestic oil transport √ √ √ √ √ √ √
Oil Exploration √ √ √ √ √ √ √
Not GoM: rocks, pressures, water depths
Revised standards and equipment – post GoM
EIA Completed
Source: Helix Well Containment Group
Top Hat
Capping Stack
Blow Out Preventer
(BOP)
Source: ajiacomix.wordpress.com
Source: Helix Well Containment Group Upgraded, modernised domestic regulations and standards
√
Timeline: Company Planning
2Q15 1Q15 4Q14 3Q14 2Q14 4Q13 3Q13 2Q13 1Q14 1Q13
ENVIRONMENT
DRILLING OPTIONS
Well Planning
COMMERCIAL
4Q12
Hurricane Season Hurricane Season
Zarubezhneft Drilling
EIA Published
Petronas Drilling
Public Consultation ???
Regulations ??
EMP Spill Plan Sensitivity Maps
Funding Options ?
CUBAN DRILLING
Well Planning
Long Lead Items
Referendum Decision
Decision
Final Consultation? Final Consultation?
Decision
Long Lead Items
Designed Well Engineered
Corporate Objectives
• A well safely executed to 22,5000’ into Jurassic source
• Shallower objectives as justified commercially
• Facilitate the drilling of a well
• Address funding, environment and permissions
Drilling
BDR Listing
Hurricane
Season
Hurricane
Season
Drilling Estimated Range
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bpcplc.com