Mako Hydrocarbons Ltd. Excellence in Oil & Gas Conference March 2013 1
Todays Agenda 1. Company Overview 2. Makos Core Play The Duvernay Shale 3. Duvernay Farm-out 4. Farm-out 2013 Work Program 5. The Duvernay Shale Emerging Resource Play 6. Increasing Interest and Activity in the Play 3
Company Overview Stock Exchange ASX Mako Hydrocarbons Ltd. is an oil (at 1 March 2013) (Australia) and gas E&P company focused on Trading Symbol MKE a large onshore land position in Shares (Basic) 187 MM the liquids-rich Duvernay…
Investment Highlights Significant land position (91,000 gross acres, 33,000 net acres) in pure exposure to emerging liquids-rich Duvernay shale play Substantial near-term activity with two Joint Ventures over three project areas…
Makos Core Play: The Duvernay Shale Canadian Pan Ocean Joint Venture Mako: 50% Working Interest pre farm-out over 60,640 acres (30,320 net acres). CPO is Operator; to carry Mako for two vertical wells and two horizontal wells in…
Duvernay Farm-out Key Points CPO to fund up to C220M appraisal and development drilling program over 3 years Mako: 50% working CPO to incrementally earn working interest (pre farm-out) interest; Mako to retain 12.5% CPO to…
Duvernay Farm-out The Strategic Rationale Resource plays such as the Duvernay Shale require significant funding to commercialise Farm-out will fund a work program to fast-track appraisal and development on Makos acreage Outstanding…
Duvernay Farm-out The Partner Canadian Pan Ocean Limited (CPO) is a Canadian public company Created specifically to bring necessary investment and expertise together to: Appraise and develop Alberta Joint Venture acreage Other…
Duvernay Appraisal & Development Fast-Tracked Proposed Pembina locations for 2013 drilling campaign 2013 work program to commence immediately 2 horizontal wells to spud in Q3 2013 2 horizontal wells to spud in Q4 2013 (to be…
Duvernay Shale Emerging Resource Play An emerging world-class liquids-rich resource play in the Western Canadian Sedimentary Basin, 38,000 mi2 (100,000 km2) in size Play came to prominence in 2010 with an estimated C4.5 billion spent…
Duvernay: Greater Kaybob Kaybob field located approximately 120 km north of CPO acreage NGLs rich gas window mapped based on proprietary independent study from the Greater Kaybob Discovery Group (experts on Eagle Ford and Marcellus…
Duvernay: Evolution to Greater Pembina Initial success moved the industry south- east 34 wells drilled in Greater Pembina to Greater Kaybob date plus additional 10 drilling licences remaining at end 2012 NGLs rich fairway has been…
Duvernay: Increasing Industry Interest The Duvernay formation has characteristics similar to the best resource plays in North America Liquids rich Long life resource potential Scalable development potential Existing…
Duvernay: Accelerating Industry Activity More than C5 billion spent on Crown Land sales and acquisitions in the Duvernay Shale since 2009 Over 100 wells drilled across the Duvernay Shale play to date; some 100 wells expected to be…
Canada Favorable Operating Environment Prolific hydrocarbon-producing province of Alberta Mature and established exploration & production industry Politically stable Open domestic market and export friendly Competitive royalty…
Recap: Investment Highlights Significant land position (91,000 gross acres, 33,000 net acres) in pure exposure to emerging liquids-rich Duvernay shale play Substantial near-term activity with two Joint Ventures over three project…
Canada Australia 800 - 521 3rd Ave SW 14 Emerald Terrace Calgary, AB West Perth, WA Canada T2P 3T3 Australia 6005 1-403-476-7850 +61-8-9226-0443 www.makohydrocarbons.com ASX:MKE Early Stage Value in from Canadian Oil and…
APPENDICES 20
CPO Duvernay Farm-out The Terms Rolling 3-year option to earn into Mako lands, appraise acreage and develop to hold lands beyond initial lease term Mako will be carried for all costs of Earning Wells, including completion and tie-in…
Duvernay Proximity to Other Industry Players Significant activity adjacent to Mako lands Average Duvernay thickness of 45 meters gross is over-pressured with no water present Mako lands: 91,062 gross acres (33,362 net acres)…
Industry Activity: Encana Farm-out to Petrochina Approximate location of Encanas Duvernay Encana farmed out 49.9% interest in 445,000 Shale acreage compared to MKE Acreage (red) net acres to PetroChina for CAD2.18 billion cash…
Deep Cut Gas Plants Extensive regional infrastructure and plant capacity available to process natural gas and associated liquids. Approximately 405 mmcf/d of available gas processing capacity to process production.…
Duvernay Industry Economic Assumptions Duvernay Economic Assumptions Company EUR/well Liquids Yield IP (30 Day) Well Cost GIIP Spacing Acreage Area Bcfe bbl/mmscf mmcf/d million Bcf/section Wells/section Trilogy 5.8 80-120 4.1…
Rock Creek Overview Secondary Target Rock Creek formation is a tight sandstone with localized areas of better permeability and porosity producing light oil and NGLs rich natural gas at a depth of 2,500 meters Liquids rich areas of…
Significant Rock Creek Horizontal Drilling Activity Drilling activity increasing with 56 Rock Creek Horizontal Wells Drilled since 2006 (56 wells) horizontal wells drilled to December 14 2012 12 Additional 7 drilling licences to end…
Provost Dina Overview Low risk, heavy oil asset in Provost area of SE Alberta provides production and cash flow 480 net acres (100% WI) of land with OOIP of 6.2 MMbbls in Dina and 2.6 MMbbls in Cummings formations 5 horizontal and…
Canada Australia 800 - 521 3rd Ave SW 14 Emerald Terrace Calgary, AB West Perth, WA Canada T2P 3T3 Australia 6005 1-403-476-7850 +61-8-9226-0443 www.makohydrocarbons.com ASX:MKE Early Stage Value in from Canadian Oil and…
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