Good Oil Presentation
9 September 2014
Dear Shareholders,
Please find attached a copy of a presentation that will be delivered by Carnarvon Petroleum’s Chief
Operating Officer, Mr Philip Huizenga, at the “RIU Good Oil Conference” in Fremantle on the 9th of
September.
Mr Huizenga will review Carnarvon’s three major assets, namely the Phoenix project in the
Offshore Canning Basin, the Cerebrus project in the Carnarvon basin, both offshore Western
Australia, and the Wichian Buri project in the Phetchabun basin onshore Thailand.
The recovery of oil from the Phoenix South-1 well has changed the view of the prospectivity of the
offshore Canning Basin. At the conclusion of the Phoenix-1 and 2 drilling campaigns some 30
years previously, the area was thought to contain “stranded gas” and “tight rocks”. However the oil
discovery at Phoenix South-1, where the oil and reservoir quality point to a commercial discovery,
has changed the assessment of the area from “tight gas” to “potentially productive oil”. While
further work is still required to determine resource size, the joint venture is encouraged by the work
to date to move the oil prospect Roc-1 from contingent to firm. Significant other leads and
prospects also exist in the acreage.
Further south in the Carnarvon basin, the Company has a 100% equity position in the Cerberus
blocks. The area of the Cerberus blocks is large at around 3,200 km², and lightly explored like
Phoenix with only around a dozen or so wells in the blocks. Modern 3D data already exists over
the majority of the blocks. A number of leads and prospects have already been identified, and
three prospects in three different play types have been high graded as being drill ready. Multiple
development options exist due to the shallow water depth, shallow target depth, proximity to shore
and proximity to existing oil and gas production infrastructure.
Carnarvon will be looking for partners to help unlock the potential of the Cerberus blocks. Having
only recently acquired these blocks with minimal permit commitments, there is long permit life
remaining for exploration.
In Thailand Carnarvon has 20% equity interest in around 1,000 km2 of exploration, appraisal and
production acreage. The acreage lies onshore around 250km north of Bangkok and is developed
with fit for purpose low cost facilities. With reservoirs between 500 and 1,000m below ground,
drilling costs are nominally around $1.5 million each, and post drilling development is around
$200,000 for each well brought into production. The oil is trucked to refineries in Bangkok.
Of the around 1,000 km² of acreage, approximately a third is covered by 3D seismic data and only
some 100 km² has been developed and lies within production licenses, incorporating 29.5 million
barrels of gross proved and probable reserves as reported in the reserves update announcement
on 31 March 2014
Development drilling in Thailand in 2014 has been successful, with recent wells based on updated
technical work increasing the gross field production to around 4,000 bopd.
For all enquiries please contact:
Shareholder Enquiries
Media Enquires
Mr Thomson Naude
Company Secretary
Phone: (08) 9321 2665
Email: investor.relations@cvn.com.au
Mr Tony Dawe
Professional Public Relations
(08) 9388 0944 / 0405 989 743
tony.dawe@ppr.com.au
Yours faithfully
Adrian Cook
Managing Director
Carnarvon Petroleum
This news release contains forward-looking information. Forward-looking information is generally identifiable by the terminology used, such as "expect", "believe",
"estimate", "should", "anticipate" and "potential" or other similar wording. Forward-looking information in this news release includes, but is not limited to, references
to: well drilling programs and drilling plans, estimates of reserves and potentially recoverable resources, and information on future production and project start-ups.
By their very nature, the forward-looking statements contained in this news release require Carnarvon and its management to make assumptions that may not
materialize or that may not be accurate. The forward-looking information contained in this news release is subject to known and unknown risks and uncertainties
and other factors, which could cause actual results, expectations, achievements or performance to differ materially, including without limitation: imprecision of
reserve estimates and estimates of recoverable quantities of oil, changes in project schedules, operating and reservoir performance, the effects of weather and
climate change, the results of exploration and development drilling and related activities, demand for oil and gas, commercial negotiations, other technical and
economic factors or revisions and other factors, many of which are beyond the control of Carnarvon. Although Carnarvon believes that the expectations reflected in
its forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statements will prove to be correct.
ASX: CVN
Good Oil Presentation
September 2014
Major Oil Discovery
Phoenix South-1 Well
Offshore Canning Basin,
Western Australia
Regional Wells – Prior to Phoenix South-1 oil discovery
La Grange-1; 1983, tr. fluor. at JO;
Mid Tr., charge limited by faults
Bedout-1; 1971, dry; JO no structure;
Up Tr. charge limited by faults
Minilya-1; 1974, dry;
Jurassic, no closure
Darwin-1; 1995, Jurassic
Palaeo Oil Column (GOI)
Phoenix-2; 1982, gas shows,
Lw Keraudren, off crest
Nebo-1; 1993, Oil discovery Calypso; Jurassic
Phoenix-1; 1980, gas
discovery, Lw Keraudren
Phoenix 3D
Zeester 3D
North Turtle-1; 1982, dry;
Jurassic
no structure, TR not reached
Bruce-1; 1979, good shows, possible
low sat. pay, transition zone?
Mid Triassic
Keraudren-1; 1973, tr. fluor.;
Lw Keraudren off structure
Poissonier-1; 1974, oil shows (GOI);
Triassic, no closure
Jurassic Test
Triassic Test
Phoenix South -1 Oil Discovery
Multi-field Potential in New Oil Province
Bandy
y
Prospects
within 3D
Minilya
Deep
Zeester 3D Outline
WA 435P
Phoenix 1 possible oil
Phoenix
South-1 oil
discovery
P2
1
Prospects
outside 3D
2
3 4 5 Phoenix South 1
Roc
WA 436P
WA 438P
Bottler
Prospects
within 3D
Bewdy
Bewd
WA 437P
Phoenix 3D Outline
Roc-1 drilling
likely 2015
Emerging New Oil Province
A
Keraudren 1
(1974) :
quality reservoir
not in closure
Phoenix
South 1 oil
discovery
(2014)
Proposed
Roc 1 well
(2015)
Phoenix 1
discovery
(1980)
B
Bandy Lead
Bottler
Prospect
Bewdy
Prospect
Oil Window
Oil
source
Minilya
Deep
P2
1
2
3
4
5
Bottler
10
kilometers
Bewdy
Roc
Cerberus: The Next Wave
Carnarvon Basin,
Western Australia
Carnarvon's footprint in the
North West Shelf
Phoenix (WA-435, WA-436,
WA-437 & WA-438)
Cerberus (EP-490, EP-491 &
TP/27)
FrogTech 2014
Cerberus located in Carnarvon Basin
Wandoo field
Harriet fields
Existing oil fields or discoveries
Stag field
Existing gas fields or discoveries
Top Base Triassic TWT
Carnarvon already advanced in
interpretation
A’
Arabella 1
Candace 1
Kybra 1
A
Kybra 1
A
Submarine
Canyon with
Locker
turbidites
16km
Honeybadger
Candace 1
40km
Belfon
Westy
Locker Source:
High TOC, High
S2, Sapropelic
Layer
Locker Oil
filled Fluid
Inclusions
Mungaroo
1000
1
m
Submarine
Canyon
with
Locker
turbidites
K
Athol
Locker
Top Oil
Window
2000
m
Top Kennedy
oil filled Fluid
3000 Inclusions
Carboniferou
m
s
4000
m
Basement
Kennedy
Source:
High TOC,
High S2,
A’
Arabella 1
Kennedy
Lyons
Gp
Carboniferous?
Carboniferous
Basement
Base Oil
Window
Monodon Survey courtesy Downunder Geophysics
Production from Onshore Assets
Phetchabun Basin,
Central Thailand
Oil production Phetchabun
Basin
L33/43
L44/43
Continuous exploration and
development
Future
Seismic
Future
Seismic
Extent of
discovered oil
Central oil
kitchen
3D in
planning for
2015
2014 Production
Well choked
back to enhance
well longevity
Oil Production
7,000
Oil Production (bbl/day)
6,000
5,000
4,000
3,000
Well choked
back to enhance
well longevity
Well choked
back to enhance
well longevity
2,000
1,000
01/01/2014
01/02/2014
01/03/2014
01/04/2014
Date
01/05/2014
01/06/2014
01/07/2014
01/08/2014
Carnarvon equity net 20%
Carnarvon Petroleum
Australia, Thailand
1
1
1.
Includes an undiscounted receivable of up to US$32m converted to AUD at A$0.90/US$.
Disclaimer
The information in this document, that relates to oil exploration results and reserves, is based on information compiled by the Company’s Chief Operating Officer, Mr Philip Huizenga, who is a full-time employee of
the Company. Mr Huizenga consents to the inclusion of the reserves and resource statements in the form and context in which they appear.
This presentation contains forward looking statements which involve subjective judgment and analysis and are subject to significant uncertainties, risks and contingencies including those risk factors associated with
the oil and gas industry, many of which are outside the control of and may be unknown to Carnarvon Petroleum Limited.
No representation, warranty or assurance, express or implied, is given or made in relation to any forward looking statement. In particular no representation, warranty or assumption, express or implied, is given in
relation to any underlying assumption or that any forward looking statement will be achieved. Actual and future events may vary materially from the forward looking statements and the assumptions on which the
forward looking statements were based.
Given these uncertainties, readers are cautioned not to place undue reliance on such forward looking statements, and should rely on their own independent enquiries, investigations and advice regarding information
contained in this presentation. Any reliance by a reader on the information contained in this presentation is wholly at the readers own risk.
Carnarvon and its related bodies corporate and affiliates and their respective directors, partners, employees, agents and advisors disclaim any liability for any direct, indirect or consequential loss or damages
suffered by a person or persons as a result of relying on any statement in, or omission from, this presentation.
Subject to any continuing obligations under applicable law or any relevant listing rules of the ASX, Carnarvon disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking
statements in this presentation to reflect any change in expectations in relation to any forward looking statements or any such change in events, conditions or circumstances on which any such statements were
based.
Nothing contained in this document constitutes investment, legal, tax or other advice. This document, and the information contained within it, does not take into account the investment objectives, financial situation or
particular needs of any recipient. Before making an investment decision, you should consider seeking independent professional advice before seeking to take any action based on the information contained in this
document.
This presentation has been prepared by Carnarvon. No party other than Carnarvon has authorised or caused the issue of this document, or takes responsibility for, or makes any statements, representations or
undertakings in this presentation.