For personal use only - Australian Securities Exchange esah a-1, p lanned for 2H 2012 M esah a c onc...
Transcript of For personal use only - Australian Securities Exchange esah a-1, p lanned for 2H 2012 M esah a c onc...
November 2012
Investor Presentation
Leveraged for Growth
Agri Energy Limited to be renamed
100,000 km2 oil exploration block in Sudan
Prospective resource of 1.5 billion barrels in Block
Highly experienced Management Team based in Perth and Khartoum
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Agri Energy Limited, to be renamed
Corporate snapshot
Share structure $MM
Share price 0.01
Issued shares 750
Market capitalisation 7.5
Cash and equivalents 0.4
Enterprise value 7.1
Highlights
49.9% shareholding in African focussed explorer holding a 75% working interest in highly prospective 100,000 km2 onshore exploration block in Sudan (37.4% beneficial share)
CPR indicates 1.5 billion barrel gross un-risked prospective resources
Block surrounded by multi-billion barrel oil producing provinces
Unexplored Mourdi and Mesaha sub-basins within block
Exploration activity in Sudan and neighbouring regions increasing, drilling in adjacent acreage in 2012 and 2013
Agri Energy Limited (ASX:AAE) to change its name to Sirocco Energy Limited
Management ownership
Management and directors 22.9%
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Leadership
Dougal Ferguson
FINANCE DIRECTOR
Over 20 years’ corporate and financial experience in the oil and gas sector
Upstream technical, commercial and capital markets experience
Principal architect of merger acquisition by Salinas Energy of Neon Gas in 2010, resulting in Neon Energy (ASX)
Internationally has worked in commercial roles for Premier Oil plc, Hess Corporation in the United Kingdom, and Brightoil Petroleum Limited (HKSE)
Greg Channon
MANAGING DIRECTOR
Over 25 years’ experience in oil industry, most recently Executive Director of Brightoil Petroleum Limited (HKSE)
Trained across geoscience disciplines and as a qualified person
Lead technical director of CLNR, whose Ivory Coast assets were acquired by ASX listed Rialto Energy
Previously held management roles with Santos, Fletcher Challenge Energy, Shell, Swift Energy, Salinas
Michael Earle
JOC PRESIDENT
Based in Khartoum, Sudan
Petroleum Geologist with 28 years’ experience
PhD in geology from University of London
Worked for BP, Hess, Lasmo and OMV. International focus, with expatriate assignments completed in nine countries
Experienced in North Africa (Sudan, Libya and Egypt), Middle East, SE Asia and Europe
Strong leadership team forged over years of working together in other ventures
Proven commercial and technical expertise and a track record of exploration success
Pat Burke
NON-EXECUTIVE DIRECTOR
15 years legal experience with law firms and companies in Australia and Ireland
Expertise in corporate, commercial and securities law with an emphasis on capital raisings and mergers and acquisitions
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Agri Energy Limited, to be renamed
100,000 km2 un-explored onshore exploration block
Net 37.4% to Agri
Two sub-basins identified on gravity and existing seismic
1.5 billion barrel gross prospective resource
“Early Mover” status in post-separation Sudan
Competitive process, many international participants
Ground floor opportunity
low entry cost
US$2 million signature bonus (gross)
Experienced management
direct onshore operating experience
Standard EPSA Terms
50 B bbls Reserves
10.6 B bbls Reserves
2.2 B bbls Reserves
1.9 B bbls Reserves
7.2 B bbls Reserves
6.0 B bbls Reserves
Block 14, Sudan
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Block 14 and regional activity
Higher level of activity at the present time
Well in Block 12A (Al Qahtani and partners) to the south
El Mesaha Block (Petroceltic and partners) in Egypt are drilling immediately to the north
Majors returning to Libya
Further licencing activity in Chad and Sudan
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Competent Persons Report by Senergy (GB) Limited
Estimated number of potential traps 30
Best estimate of trap size 50 mmbbls
Gross un-risked prospective resource 1,500 mmbbls
Net un-risked prospective resource (Agri at 37.4%) 560 mmbbls
CPR independently validates plays in Block 14
Using the current limited dataset, Senergy has determined Block 14 to be frontier but potentially high reward hydrocarbon exploration acreage
Based on analogue with the Muzurq Basin, and an estimate that 25-35% of the entire block is prospective, Senergy estimate 30 traps can be identified
Predicted field size distribution of traps
Low (P90) 20 mmbbls
Best estimate 50 mmbbls
High (P10) 200 mmbbls
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CPR recognises de-risking process to increase value
Significant de-risking can occur in Block 14 over 12-18 months The above de-risking can be realized prior to drilling a well reducing the risks of
dilution through raising capital
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Slide 39 Asian Roadshow June 2012
Beach 15%, Melrose 40% (operator), Hellenic 30%, Kuwait Energy 15%
The largest concession area in Egypt at 42,700 km2
Possible rift basin similar to Gulf of Suez
Potential for very large oil fields (>100 MMbbl+)
~ 2,500 km of regional and infill 2D seismic acquired and interpreted
First exploration well, Mesaha-1, planned for 2H 2012
Mesaha concession
Wildcat acreage with rift graben potential
The Mesaha Block in Egypt is adjacent to Block 14
Operated by Melrose Petroleum Plc, with partners Beach Energy Ltd, Hellenic Petroleum SA and Kufpec
2,500km seismic acquired in 2010–12, following basin definition by gravity in 2009
Mesaha-1X is designed as a combination structural and stratigraphic test to evaluate as much of the sedimentary package as possible
The drilling will assist in defining the prospectivity of the basin and the Block 14 potential
El Mesaha Block Egypt
Source: From Beach Energy website
Mesaha-1X
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Mature oil producing country
good infrastructure and systems
High prospectivity
country-wide exploration success >50%
Strong basin analogues in surrounding countries
Majors already exploring and producing:
CNPC
Petronas
ONGC
International contractors and service providers already in place
2012 Licensing Round attracted ~70 bidders, including many western companies. All blocks were awarded to international companies
Sudan’s oil industry
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Block Data
gravity
340km x 229km
2D seismic
13 lines, ~1,200km
well
SW- 1 shallow stratigraphic well
Bouguer gravity data over western Block 14 shows two main depo-centres, identified as the Mourdi and Mesaha Sub-basins.
Mesaha Mesozoic Graben?
A
B
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D
No Data
A B C D
Dep
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Gravity and structural cross section
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Over 1,000 boreholes drilled
Significant hydrocarbon indications from extensive micro-biological sampling over primary lead
Early indication of petroleum system in block
Microbiological survey
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Agri Energy Limited, to be renamed
Previous Field Activity
2005
Airborne gravity and magnetic survey in by Sudapet and Petro SA
2007-2008
1,200km seismic by Salima Operating Company (PetroSA)
Microbial geochemical survey
Ground gravity and magnetic survey
Geological surveys
Block 14 is remote, un-inhabited, safe, access all year round
Block 14 past exploration
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Block 14 minimum work commitments
Agreed minimum work program Estimated minimum
expenditure (100% (US$) Minimum expenditure
Agri share 41.58%1 (US$)
First 36-month commitment
Geology and geophysical studies and gravity 2,000,000 831,667
1,000km 2D seismic acquisition 3,000,000 1,247,500
Drill one exploration well 7,000,000 2,910,833
Minimum first commitment 2012–2015 12,000,000 4,990,000
Second 18-month commitment
4,000km 2D seismic acquisition 5,000,000 2,079,167
Drill one exploration well 7,000,000 2,910,833
Optional second commitment 12,000,000 4,990,000
Third 18-month commitment
1 Joint Venture: Earning Paying Statesman Africa 75% 83.3% Express Petroleum 15% 16.7% Sudapet (carried) 10% 0.0%
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Timing
Q3 2012 Dec 2013
ASX re-compliance and prospectus
Technical desktop studies
Reinterpretation of seismic
New resource estimate Seismic acquisition
Procurement of Block 14 and signing of EPSA
Exploration well planning
Jan 2013 Jul 2013
Drilling in Block 12A
Publication of CPR 560 mmbbls prospective resource to Agri
El Mesaha drilling result Sudan Block 12A drilling Prospect generation
New resource estimate
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Agri Energy Limited, to be renamed
Experienced Management Team in place, both in Perth and Khartoum
560 MMbbls Net Prospective Resource
Clear de-risking process to add significant value
Increasing Exploration Activity in the region
Highly leveraged to potential new oil province
Why Invest in Agri?
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Agri Energy Limited, to be renamed
Certain statements contained in this presentation, including information as to the future financial or operating performance of AGRI ENERGY LIMITED (AGRI ENERGY) and its projects, are forward looking statements. Such forward looking statements:
are necessarily based upon a number of assumptions and estimates that, while considered reasonable by AGRI ENERGY, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies;
involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward looking statements; and
may include, among other things, statements regarding targets, estimates and assumptions in respect of production, prices, operating costs, results, capital expenditures, reserves and resources and anticipated flow rates, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions
AGRI ENERGY disclaims any intent or obligation to update publicly any forward looking statements, whether as a result of new information, future events or otherwise.
All forward looking statements made in this presentation are qualified by the foregoing cautionary statements. Investors are cautioned that forward looking statements are not guarantees of future performance and accordingly investors are cautioned not to rely on forward looking statements due to the inherent uncertainty therein.
Disclaimer
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Agri Energy Limited, to be renamed
Greg Channon Managing Director
+61 404 879 307 [email protected]
Address Level 8, 225 St Georges Terrace Perth 6000 WA
Ph: +61 9486 4036 www.agrienergy.com.au
Contact information
Dougal Ferguson Finance Director
+61 404 073 360 [email protected]
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