Euro Pacific Capital Global Investment Conference

Transcription

1 0 kilometers ARUN NSO J S E R U W A Y P S C GURAME LEMURU TERIPANG SALEM S A KUALA LANGSA L E M GOS GLAGAH MYANMAR BANGKOK BUALUANG MANORA JASMINE THAILAND G 2 / 4 8 CAMBODIA PHNOM PENH kilometers 0 kilometers S O U T H M A D U R A P S C Surabaja r Euro Pacific Capital Global Investment Conference May 31, 2012

2 Disclaimer Compliance Disclaimer This presentation includes certain forward-looking statements that have been based on current expectations about future acts, events and circumstances. These forward-looking statements are, however, subject to risks, uncertainties and assumptions that could cause those acts, events and circumstances to differ materially from the expectations described in such forward-looking statements. These factors include, among other things, commercial and other risks associated with estimation of potential hydrocarbon resources, the meeting of objectives and other investment considerations, as well as other matters not yet known to the Company or not currently considered material by the Company. MEO Australia accepts no responsibility to update any person regarding any error or omission or change in the information in this presentation or any other information made available to a person or any obligation to furnish the person with further information. 2 MEO Australia Limited

3 Presentation outline The case for considering an investment in MEO 1. Corporate snapshot 2. People Board of directors Senior personnel 3. Portfolio overview 7 upstream, 3 infrastructure projects 4. Track record high value transactions Petrobras, Eni 5. Portfolio examples Bonaparte Gulf, Timor Sea, Northern Australia, WA-454-P Tassie Shoal infrastructure projects Offshore North Sumatra, Indonesia, Seruway PSC 6. Near term value drivers 7. Key take-aways People + Projects + Multiple Catalysts = Worthy of further consideration 3 MEO Australia Limited

4 Corporate snapshot ASX & OTC listed, SE Asian focus, adequate cash*, open register Ticker symbols (ASX / OTC) MEO MEOAY Share Price (ASX: MEO) (28-May) A $0.245 Issued shares (million) Issued options ($0.50 ex) (million) 21.6 Market Capitalisation (million) A $132 Cash & Cash Equivalents (31-Mar) A $62 Enterprise value (million) A $70 Daily liquidity (3 month avg) (million) 4.9 General HQ Melbourne, Australia Jakarta branch office SE Asian portfolio 7 upstream projects 3 infrastructure projects (Tassie Shoal) Core strengths Conservative management High calibre new venture capability Track record of high value transactions Adequately funded (subject to farm out) Top Shareholders ~9,750 shareholders 31.34% Held by top 20 shareholders 6.58% Raydale Holdings Pty Ltd 5.00% Bentley Capital (LIC ASX: BEL) 4.88% HSBC Custody Nominees (Australia) Ltd 2.34% Merrill Lynch (Australia) Nominees Pty Ltd * Subject to successful farm-out 4 MEO Australia Limited

5 Board of directors Depth of experience with major companies, diverse skill set Non executive Chairman Nick Heath Engineer Appointed NED May 2008 Appointed Chairman November yrs ExxonMobil (retired) Chairman Metgasco Limited (ASX: MEL) Managing Director (& CEO) Jürgen Hendrich - Geologist Appointed MD July 2008 Appointed CEO June 2008 Tolhurst Noall (Corp Finance) Private practice (Corp Advisory) JB Were & Son (Energy Analyst) 12 yrs ExxonMobil (Geologist) Non-executive director Michael Sweeney Practicing Barrister Appointed Oct 2008 Mitsui-Mitsubishi (MiMi) Non-executive director Greg Short - Geologist Appointed July yrs ExxonMobil (retired) NED Pryme Oil & Gas (ASX: PYM) NED Po Valley Energy (ASX: PVE) Non-executive director Stephen Hopley Appointed Oct 2008 Macquarie Bank (retired) 5 MEO Australia Limited

6 Senior personnel Hand picked team, proven oil finders & deal-making capability Ken Hendrick Implementation Manager Joined Jul Consulting to CRA/Mobil/Shell/Woodside/ Origin/ExxonMobil Colin Naylor Chief Financial Officer Joined Feb 2007 BHP Petroleum Woodside Dave Maughan Exploration Manager Joined Aug 2008 ExxonMobil (34 yrs) Peter Stickland New Ventures Manager Joined Apr 2011 Tap Oil BHP Billiton Robert Gard Commercial Manager Joined Nov 2008 ExxonMobil (22 yrs) Robert Zammit Executive Manager - BD Joined Dec 2010 ExxonMobil (22 yrs) Oliver Gross Geoscience Adviser Joined Apr 2012 ExxonMobil (30 yrs, retired) Errol Johnstone Chief Geoscientist Joined Oct 2010 ExxonMobil (29 yrs) Delhi Petroleum * Dean Johnstone Senior Geoscientist Joined Oct 2011 ExxonMobil (27 yrs) Delhi Petroleum * Jarrod Dunne (PhD) Senior Geophysicist Joined Apr 2011 Shell, Woodside, Nexus Energy Lubing Liu Chief Reservoir Engineer Joined Oct 2011 CNOOC, Sinopec, ConocoPhillips, Woodside, RPS, Senergy Andrew Leeds Senior Commercial Adviser Joined Apr 2011 Macquarie Bank, Santos, Bechtel + Peter Stickland was CEO of Tap Oil (ASX: TAP) * Delhi Petroleum years of service credited to ExxonMobil (acquired Delhi in 1988) 6 Executive team June 2008 MEO Australia Limited

7 0 kilometers ARUN NSO J S E R U W A Y P S C GURAME LEMURU TERIPANG SALEM S A L KUALA LANGSA E M GOS GLAGAH MYANMAR BANGKOK BUALUANG MANORA JASMINE THAILAND G 2 / 4 8 CAMBODIA PHNOM PENH kilometers 0 kilometers S O U T H M A D U R A P S C Surabaja Portfolio overview Thailand, Indonesia, NW Australia oil, gas & LNG Gulf of Thailand (Oil Focus) (50% *) r North Sumatra (Oil and Gas Focus) (100%) East Java (Oil Focus) (90%*) Tassie Shoal Infrastructure (LNG and Methanol) MEO 100% Bonaparte Basin (Oil, Gas & LNG Focus) (NT/P68 50%, others 100%) - Gas - Oil - Methanol Carnarvon (North West Shelf) (LNG Focus) (50% %) * Subject to receipt of regulatory approvals 7 MEO Australia Limited

8 Transactions: WA-360-P farm-out US$39m cash, 1-well fully funded, contingent cash & 2 additional wells Target: ~12 Tcf (mean prospective) Equity : 50% (MEO farmed down from 70%) Back costs and cash bonus Artemis-1 (capped) US$ 39m US$ 42m Success Bonus US$ 31.5m Second Well (capped) Third well (capped) Funding range US$ 62m US$ 62m US $81m - $236.5m MEO farmed into permit Oct-2007 Earned 60% via acquiring 3D seismic Identified 12 Tcf Artemis prospect Secured 1 yr extension for drill/drop Increased to 70% via extra 3D seismic Accepted farm-in offer late 2009 Raised $27m for rig commitment Signed FIA with Petrobras early 2010 Purchased additional 5% equity Drilled Artemis-1 late 2010 (MEO 25%) Renewed permit 2012 (MEO 62.5%) Result : MEO cash after well ~A$100m Funded expansion into SE Asia Firm (or value already received) Contingent consideration 8 MEO Australia Limited

9 Transactions: NT/P68 farmout >US$200 work program to earn 50% interest, options to earn 75% Target: ~6 Tcf (discovered + prospective) Equity : 50% (MEO farming down from 100%) 1 st Heron well (MEO est.) US$ 75m Blackwood 3D Seismic (est.) 2nd Heron well (MEO est.) Blackwood well (MEO est.) US$ 10m US$ 75m US$ 45m Funding range US $85m - $205m Awarded permit Feb-2004 Acquired 3D in 2007 Farmout 10% PI to Petrofac Heron#2 gas discovery early 2008 Blackwood#1 gas discovery early 2008 Acquired Blackwood 3D post well Technical studies to understand cause of reservoir quality distribution Renewed permit early 2010 Signed FIA with Eni Australia early 2011 Acquired Bathurst 3D seismic late 2011 Plan to spud Heron South #1 August Result :Blackwood 3D seismic 4Q-2011 Heron South-1 drilling 3Q-2012 Consideration for additional 25% equity: Carry to FID (including wells) US$ TBD Cash at FID US$ 75m Firm (or value already received) Contingent consideration 9 MEO Australia Limited

10 Remote gas, Timor Sea Northern Australia Focus of 3 MEO upstream projects & 3 Tassie Shoal infrastructure projects Woodside (Greater Sunrise) 4.0 Mtpa FLNG FID: Unspecified INPEX (Abadi) 2.5 Mtpa FLNG FID: Target 2013 ConocoPhillips 3.7 Mtpa LNG (Darwin) Commenced Feb 2006 Tassie Shoal Woodside (Browse) 8.4 Mtpa LNG Currently in FEED Shell (Prelude) 3.6 Mtpa FLNG FID: May 2011 PRELUDE AC/P53 INPEX (Ichthys) 8.4 Mtpa LNG FID: Jan 2012 (MEO 100%) GDF Suez/Santos Proposed Bonaparte FLNG (2.0 MTA) FID: Target 2014 Joseph Bonaparte Gulf 10 MEO Australia Limited

11 Tassie Shoal a natural hub location Environmental approvals to host infrastructure in <15m water depth Accommodation and Control Platform (ACP) LNG Plant (~3 MTA) Methanol Plant (1.75 MTA Stage 1 only) LNG Tank (170,000 m 3 ) 11 MEO Australia Limited

12 Hosting proven, off the shelf technology Simple grounded structures, proven technology, no movement issues Arup Concept Elevating (ACE) Platform L N G + = M E T H A N O L Process plant based on Davy Process Technology plants operating in Trinidad + = ExxonMobil s Adriatic Re-gas terminal on CGS. Barge becomes island and storage 12 MEO Australia Limited

13 TSMP MTA, demand=8.3 MTA (EoI) 1 st plant requires ~1.4 Tcf raw gas (@ 25% CO 2 ) over 20 yrs of operation Upstream JV(s) Midstream JV(s) Downstream Off taker(s) Methanol SPA(s) Current Focus Area JV or GSA Supply LNG SPA(s) 13 MEO Australia Limited

14 Bonaparte Gulf, WA-454-P (100%) Next to proposed US$6 billion F-LNG project & producing gas facility GDF Suez/Santos Proposed Bonaparte FLNG (2.0 MTA) FID: Target 2014 Floyd 3D area Leads (MEO 100%) ENI Blacktip gas production commenced September 100 mmscf/d Breakwater prospect Area of closure at 1.59 sec = 40 km 2 P50 Area = 20 km 2 Marina gas and probable oil Blacktip gas pipeline to Darwin Awarded permit mid-2011 Technical studies reveal: Probable oil in Marina Breakwater prospect Acquired 3D early 2012 Independent assessment Marina contingent gas and probable oil Multi-Tcf Breakwater prospect with potential for significant oil legs Planning to launch farmout process early Q4 Possible drilling in 2013 (subject to farmout & rig availability) 14 MEO Australia Limited

15 Interpreted Hydrocarbon Depth (m, TVD SS) Marina-1 Well MDT Pressure Data Interpretation (Zone 1 Gas Cap and Oil Leg - P50 Case) Marina gas and probable oil discovery Pressure ( Contingent resources: 5 22 mmbbls oil & Bcf gas (P50-P10) Oil Gradient=1.162psi/m Proven Gas Pay 1830 Gas Gradient=0.267psi/m 1840 Zone 1 Top: m TVDSS GOC=1842m TVDSS Probable Oil 1850 Probable Oil Gradient OWC=1865m TVDSS 2012 Floyd 3D 1880 Water Gradient=1.514psi/m Marina structure is a simple four way rollover (lowside fault bend fold) Zone 1 Top: m TVDSS 1890 Bad Points Contingent Resources (Recoverable) * Water Points Gas Points 1900 Oil Points (Zone 1) P50 Gas Line (CGR=30bbl/MMscf) Gas (Bscf) P50 Oil Line P50 Water Line GOC=1842m TVDSS P90 Mean P10 Oil (MMstb) OWC=1865m TVDSS Condensate 1920 (MMstb) Total Liquids (MMstb) * Source: Senergy, February 2012 Marina 1500ms Timeslice from 3D 15 MEO Australia Limited

16 Breakwater gas & oil? prospect Significant gas prospect with potential for mmbbls oil (P50-P10) Breakwater : Amplitudes in Marina and Blacktip reservoirs Lead Breakwater Marina Breakwater Prospect Time slice from Floyd 3D Salt Swell Un-Risked Prospective Resources (Recoverable) * Scenario A: Gas only P90 Mean P10 COS** Gas (Bscf) ,798 Condensate (MMstb) % Total Liquids (MMstb) Scenario B: Gas & Oil P90 Mean P10 COS** Gas (Bscf) ,391 Oil (MMstb) % Condensate (MMstb) Total Liquids (MMstb) ** COS: Risk Factor or Chance of Geological Success is the product of four prospect elements; trap, reservoir, seal integrity and charge Floyd 3D seismic Demonstrates Breakwater structure is robust 4 way closure caused by drape over a deep salt swell * Source: Senergy, February MEO Australia Limited

17 North Sumatra, Seruway PSC (100%) Multiple projects launched farm out to attract funding partner LNG Plant ExxonMobil Arun LNG Plant 4 MTA LNG (2 trains) <50% capacity Operations cease 2014 ExxonMobil divesting ARUN Gurame discovery GURAME (MEO 100%) LEMURU TERIPANG Ibu High Cluster Juaro Prospect SALEM SALEM Purchased 100% PI mid-2011 PSC has 3 distinct projects 1. Gurame gas/oil discovery 2. Kuala Langsa gas discovery 3. Ibu Horst gas/oil discoveries Technical studies reveal*: Oil in Gurame deep mmbbls Gas in Gurame Deep Bcf Lower CO 2 in Kuala Langsa Acquired 3D seismic late 2011 Ibu Horst 3D 0 kilometers KUALA LANGSA Kuala Langsa discovery Launched farmout April Expect transaction Q3 Planned drilling (1 well) Q (2 wells) 2H * MEO estimates,classified as prospective recoverable resources (P50-P10) + subject to rig availability 17 MEO Australia Limited

18 Gurame discovery: mmbbls oil? FIT samples from multiple wells indicate deep oil columns of >50m & >26m! Proposed Gurame SE-1X 2.5 km 5.6 km 2.7 km ONS-A5 ONS-A2 ONS-A3 Mid Baong mtvdss LKG -2697m (A5) FIT 1 HKO -2724m (A2) P(50) GOC 2800 FIT 2 LKO -2777m (1X) Belumai P(50) OWC LKG -3003m (A5) HKO -3012m (A4) P(50) GOC FIT 5 LKO -3038m (A2) DST-1 P(50) OWC Gross prospective resources (MEO estimates) Gas in Place (raw bcf) Recoverable sales gas (bcf) P90 P50 P10 P90 P50 P10 Baong , Belumai Total , Oil in place (MMstb) Recoverable oil (MMstb) P90 P50 P10 P90 P50 P10 Baong Belumai Total A5 Seruway PSC Boundary A2 Coastline P(50) Mid Baong Depth Structure Map Line of Section Proposed Gurame SE-1X A3 Approx. LCC -3150m Fluid Type Known Gas Potential Gas Known Oil Potential Oil Known Water Potential Water 18 MEO Australia Limited

19 382 m Kuala Langsa gas discovery lower CO 2? CO 2 significantly lower in recovered samples compared with surface tests Kuala Langsa 1X 382m gross reservoir thickness thicker in Seruway PSC 230m gross gas column, 212m net pay thicker in Seruway PSC DST-1 3,517-3,523m (6m) - 2 MMCFGD (83% CO 2 anomalous?) 1 2 PT mmd 34.1 mmcfd BWPD mmd Rec 84.4 ft 3 Gas 0.9 L SO&MCW (50% CO 2 ) PT mmd 20.3 mmcfd BWPD GWC -3507mss DST-2 3,370-3,385m (15m) - 34 MMCFGD (81.5% CO 2 anomalous?) Calc open hole flow rate MMCFGD FIT gas sample at subsurface conditions 60% CO 2 RFT pressure gradients consistent with 55-60% CO 2 CO 2 in nearby Salem-1 47% CO 2 A Seruway PSC Boundary B Top Peutu Limestone 7 liner 3558 mmd Kuala Langsa-1 Peutu Limestone Depth Structure Seismic Cross Section A-B 19 MEO Australia Limited

20 Potential near term value drivers Transactional processes underway, portfolio to be tested by drilling from Q3 MEO Potential catalyst Equity Remarks Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Planned transactions Tassie Shoal Projects 100% Focus on TSMP 1 Seruway farmout 100% Underway WA-454-P farmout 100% Planned pending 3D Potential transactions NWS farmout % Pending 3D results AC/P farmout 100% Pending 3D results Own drilling - firm Target Heron South #1 50% Multi-tcf >? Gurame Sth #1x 100% mmbbls >? Gulf of Thailand 50% mmbbls Own drilling - contingent Seruway PSC (2 wells) 100% TBC pending results WA-454-P (2 wells) 100% Marina/Breakwater NWS (1-2 wells) % TBC pending studies Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Drilling by others Impacts Banambu Deep #1 WA-389-P NWS: WA-361-P <? >? Ananke #1 WA-269-P NWS: WA-360-P <? >? Evans Shoal North #1 NT/P48 Bonaparte: NT/P68 <? >? 20 MEO Australia Limited

21 Key take-aways Attributes of a company with investment appeal 1. High quality people 2. Track record of high value transactions Farmed out 50% of NT/P68 to Eni for >US$200m work program (2011) 3. Portfolio with substantial optionality 4. Multiple near term potential value drivers Several additional transactions underway or planned in 2012 Own drilling (Australia, Thailand, Indonesia) 3 wells in 2H-2012, expect similar level in 2013 (2H) Drilling by others in adjacent Australian permits 3 wells commencing Q2 5. Modest enterprise value (~$70m) 6. Adequately funded (subject to farmout) 21 MEO Australia Limited

22 Thank you Contact details Australia MEO Australia Limited 500 Collins Street, Level 23 Melbourne VIC 3000 Jürgen Hendrich Managing Director & CEO T: E: United States Cooper Global Communications 245 Park Avenue, Level 39 New York, NY Jennifer K Zimmons, Ph.D Managing Director T: E: jzimmons@cgc-us.com 22 MEO Australia Limited