TSX-V: NZ OTCQX: NZERF Waihapa Production Station Corporate Presentation June 2, 2014
Fully Integrated Upstream/Midstream Company 1.93 million acres of permits with both conventional and unconventional opportunities Completed strategic acquisition in October 2013 - Three petroleum mining licenses with significant…
Asset Overview Permit Working Net Acres 2P boe Contingent Prospective Interest Reserves 1 Resource 1 Resource 1 Eltham 2 100% 47,395 536,000 - 31.6 MM bbl Conventional Alton 65% 38,717 - - 45.0 MM bbl Focus TWN 50% 11,525 1,113,000…
Planned Work Program Taranaki Basin (as at November 2013) Tikorangi development Reactivate oil production from six Tikorangi wells on TWN Licenses (achieved production in November) Optimize oil production from reactivated wells on TWN…
NZEC Production & Development Wells Status at May 30, 2014 7
Immediate Value from Near-term Work Program 8
Reactivate Production from Existing Wells Drill-proven Tikorangi formation 23.6 million bbl historical production from 11 wells since 1992 1 Remaining 2P reserves estimated at 1,852,700 bbl oil, 1.45 Bcf gas, 50,700 bbl NGL (100%…
Mt. Messenger Work Program Drill-proven formation Significant discoveries to the west (TAG: Cheal), south (NZEC: Copper Moki, Waitapu) and east (Kea: Puka) Contingent resources: 88,000 bbl oil (100% basis) 1 Prospective resources:…
Tikorangi New Wells 1 Drill new wells to access oil reserves 410,300 bbl (100% Basis) 2P Undeveloped Reserves attributed to crestal well 2 - Potential crestal well location NZEC study indicates higher productivity within 250 metre…
Kapuni Group High Impact Deep Targets Drill-proven formation Kapuni Gas Field onshore oil/gas discovery (Shell) producing since 1969, estimated ultimate recovery of 1,365 billion cf (Bcf) natural gas and 66 million bbl oil TWN…
Full-cycle Production Station 13
Waihapa Production Station Assets Full-cycle facility with gathering and sales pipeline infrastructure Oil facility 25,000 bbl/d oil handling facility 7,800 bbl oil storage capacity 49-km 15,500 bbl/d oil sales pipeline from Waihapa…
Production Facility: Buy vs Build Waihapa Production Station Neighbouring Production Facility 3 Gas processing 45 MMcf/day Gas processing 15 MMcf/day Oil handling 25,000 bbl/day Oil handling 5,000 bbl/day Water handling 18,000 bbl/day…
Waihapa Production Station Generating Third-Party Cash Flow * Owned by TWN Limited, a 50/50 Limited Partnership of NZEC and L&M Energy. Operated by NZEC Ngaere Limited as the General Partner. Contact paying a monthly fee of C165,000…
NZECs TWN Management & Operational Experience NZEC Position Years Relevant Years Experience Previous TWN Associated Roles O&G Experience with TWN Assets Mike Oakes, NZ Asset Manager (Origin), Plant Super & 35+ 8 GM Operations…
Drilling Inventory 18
De-risking Drilling Inventory RPS Mt. Messenger reservoir study Merged 3D seismic provides better identification of targets New data from Mt. Messenger recompletions and new wells drilled on TWN and Horoi will provide additional…
New Proprietary Merged 3D Seismic Database Reprocessed datasets Combined five 3D surveys Total area covered (full fold) 552 km2 Pre-stack merge and post-stack time migration complete, pre-stack time migration underway Greater…
Individual 3D Surveys = Mismatched Data Kapuni 3D Rotokare 3D 1989 2012 21
Proprietary Merged 3D Datasets Increase Chance of Success Kapuni 3D Rotokare 3D Reprocessed and merged 2013 22
Inventory of Taranaki Drilling Leads NZECs Copper Moki area converted to long-term mining license Copper Moki Waitapu Wairere Waipapa site Arakamu Horoi site 23
Advancing Unconventional Oil Shales 24
East Coast Basin Oil Shales Over 300 oil and gas seeps sourced back to two oil shale formations: Whangai and Waipawa - Whangai shale package estimated to be 300 600 metres thick - Characteristics similar to Bakken shales…
East Coast Strategy Results from technical work providing greater insight into unlocking shale potential - Drilled three stratigraphic wells - Acquired 120 km of 2D seismic - Results pending from unconventional test on adjoining…
Corporate Profile Common shares outstanding at April 2014 170.9 million Options outstanding at January 2014 (Exercisable at average 0.67) 1 11.8 million Warrants issued in Oct 2013 Private Placement (Exercisable at 0.45 until Oct 2014)…
Value Drivers Next 12 Months Increase production and cash flow 1 - Reactivating oil production from existing Tikorangi and Mt. Messenger wells - Recompleting existing wells uphole in Mt. Messenger - Continuing to review 3D seismic,…
Appendix 29
Taranaki Activity: NZECs Property Portfolio Strategically Located in Main Production Fairway 1. NZEC owns 100% of the Eltham Permit. 2. NZEC and L&M Energy have formed a 50/50 joint arrangement to explore, develop and operate the…
NZEC Reserve Estimate (net to NZEC) 1 Marketable Oil and Gas Reserves As at December 31, 2013 Forecast Prices and Costs Light & Medium Oil Natural Gas Natural Gas Barrels Oil NPV, After Tax Reserves Category (bbl) (Mcf) Liquids…
TWN Resource Estimate (NZECs 50% Interest) 1 Formation Product Type Low Best High Contingent Resources Miocene Sands (Mt. Messenger) Oil (Mbbl) 17 44 101 Gas (MMcf sales) 1,257 2,518 5,168 Eocene Sands (Kapuni Group) NGL (Mbbl) 51 117…
Taranaki and East Coast Resource Estimates Net Unrisked Undiscovered Petroleum Net Unrisked Prospective Recoverable Net Permit Net Permit (MM barrels of oil) (MM barrels of oil) Area Acreage Low Best High Low Best High TARANAKI…
Historical Production Tikorangi Formation 23.6 million bbl of historical production 1 Well name 1 Max bbl/d Total bbl produced Ngaere-1 7,537 4,337,084 Ngaere-2 3,658 1,002,565 Ngaere-3 8,652 1,089,505 Toko-2B 298 126,286…
Oil in Tikorangi Formation 23.6 million bbl produced to date Numerous independent estimates of original oil in place (OOIP) ranging from 25 mmbbl (P90) to 100 mmbbl (P10) 1 Fractured limestone oil recoveries can be as high as 65% of…
Assumptions in NZECs Mid-case Financial Model (as at July 31, 2013) Development program includes the following: Other Assumptions Six Tikorangi reactivations - wells placed on gas lift, subsequently on high volume lift Oil sales price/bbl…
Board of Directors Name Expertise Experience Founder and financier of numerous mining and oil John Greig, M.Sc, P.Geo Founder, Director & Officer Sutton Resources, Cumberland and gas companies. Specializing in recognizing Chairman…
Corporate Office Canada Name Expertise Experience Proven track record of building companies from grass Chairman, Director & CEO, Southern Arc Minerals Inc. John Proust, C.Dir roots to advanced development. Specializes in Chairman,…
Operations Team New Zealand Name Expertise Experience Chartered Accountant and Chartered Corporate Secretary with more Commercial and Finance Manager, Origin Energy Derek Gardiner, CA than 25 years of experience in the New Zealand…
Technical Team New Zealand Name Qualifications Expertise B.Sc, June Cahill Acquisition, management, and analysis of complex geoscience data B. Applied Econ. B.Sc (Hons) Bill Leask Petroleum geology related to the East Coast and…
Analyst Coverage Company Analyst Contact Credit Suisse David Phung 403-476-6023 Dundee Capital Markets David Dudlyke 44-203-440-6870 Mackie Research Bill Newman 403-750-1297 M Partners David Buma 416-603-7381 Prosdocimi Brian…
Contact NZEC Corporate Head Office John Proust, Chief Executive Officer Rhylin Bailie, VP Investor Relations North America Toll-free: 1-855-630-8997 Phone: + 1-604-630-8997 New Zealand Operations Office David Robinson, CEO New Zealand…
Loading...
