exploration development · pdf file18,200,000 convertible notes ... 0.9 million top 5...
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Golden Gate Petroleum LimitedInvestor Presentation November 2011Steve Graves, Executive Chairman
Exploration
Development
Production
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Golden Gate Petroleum Limited is an independent oil and gas exploration and production company listed on the Australian Securities Exchange (ASX:GGP) with its corporate office in Melbourne, Australia and its operations centre in Houston, Texas.
Strategy: To develop a portfolio of oil and gas exploration and development projects, balancing its exploration activities with low cost, low risk development opportunities via acquisition or farm in of proven reserves.
Focus of Operations: Onshore Gulf Coast region and Permian Basin of the USA
Golden Gate Petroleum LimitedInvestor Presentation – November 2011
Permian Basin
Gulf Coast region
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Investor Shares Held %
Alimold Pty Ltd 61,500,000 3.49
Sacha Investments Pty Ltd 24,000,000 1.36
Dr T Kolimackovski 22,000,000 1.25
Four P Investments Co P/L 21,450,000 1.22
Lawnbet Pty Ltd 20,000,000 1.14
Date 23 November 2011
Share Price (A$) 0.02
52 Week High / Low (A$) 0.22 / 0.008
Shares on Issue (ASX: GGP) 1,761,952,688
Market Cap (A$) 35.2 million
Top 20 shareholders control 18%
Options on Issue (ASX: GGPO)Expire 31 Aug 2012, exercise price of $0.08
679,100,395
Debt (A$)18,200,000 Convertible notes with $0.05 face value, maturing 30 June 2013. May convert early at 85% of 10 day VWAP.
0.9 million
Top 5 Shareholders as at 23 Nov 2011
Golden Gate Petroleum LimitedInvestor Presentation – November 2011
NSW (38.81%)
VIC (20.82)
QLD (15.63%)
SA (10.05%)
WA (9.47%)
International (3.19%)
NT (0.72%)
ACT (0.70%)
TAS (0.615)
Capital Structure
Location of Shareholders
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Board & Management
Executive Chairman
Steve Graves
Director
Frank Petruzzelli
Director
Frank Brophy
CompanySecretary
Chris Bowyer
Chief Financial Officer
Chris Ritchie
Mr Graves has over 35 years in the oil and gas industry both in Australia and overseas. Most recently Mr Graves was Executive Chairman of Orchard Petroleum Ltd. Mr Graves worked for Mobil Corporation and affiliated companies 23 years and has been a consultant to the energy industry and a senior consultant to Ernst & Young.
Mr Petruzzelli is a principal of MDB & Co, an Australian accounting firm and has been a director of the company since 2003. He is an accounting and management services specialist and advises many ASX listed companies and large private organisations.
Mr Brophy is a geologist with more than 45 years experience in the oil and gas industry. Mr Brophy has an extensive background in petroleum exploration, development and production projects across the world with companies that became subsidiaries of Elf Aquitane and Maurel & Prom.
Mr Bowyer is a Chartered Accountant with 17 years public practice and private sector experience. Mr Bowyer has previously been Company Secretary for Orchard Petroleum Ltd. and is currently Secretary of Solimar Energy Ltd.
Mr Ritchie is a FCPA and FCIS with financial managementexperience of construction and engineering companies involved in major energy & resources projects as well as CFO / Co Sec experience with several small to medium size ASX listed companies.
Golden Gate Petroleum LimitedInvestor Presentation – November 2011
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2011AUD 000’s
2010AUD 000’s
Variance000’s Notes
Current assetsCash & cash equivalentsTrade & other receivablesInvestmentsPrepaymentsTotal current assets
Non‐current assetsTrade & other payablesPlant & equipmentExploration & development assetsOil & gas propertiesTotal non‐current assets
Total assets
Total current liabilitiesTotal non‐current liabilities
Total liabilities
Net assets
2,388856757
3,308
20327
8,8941,34310,467
13,775
1,6691,603
3,272
10,503
7,5841,158
‐59
8,801
28347
3,7545,8779,961
18,762
3,881814
4,695
14,067
(5,196)(302)
7(2)
(5,493)
(80)(20)
5,140(4,534)
506
(4,987)
2,212(789)
1,423
(3,564)
Reduction in creditors 2.7m & overheads 1.8m
Permian Basin & Bullseye acquisitionsWrite down of Bullseye Project Assets
See note for cash movement above1.5m convertible notes issued
Consolidated Statement of Financial Position as at 30 June 2011
Golden Gate Petroleum LimitedInvestor Presentation – November 2011
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Golden Gate Petroleum LimitedInvestor Presentation – November 2011
Permian Basin
Bowtie West
Bullseye
Napoleonville
North Edna
Fausse Point
Geographical location of Projects
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Permian Basin Project
GGP has acquired 4 leaseholds totalling 8,806 acres in Reagan and Irion Counties in Texas. Total purchase price was AUD$4.9 million. The acreage covers most depths and intervals.
Leases have been paid through to March 2013 with the opportunity to hold the leases in perpetuity through continued production and continuous drilling.
GGP has successfully drilled the first two wells, hydraulic fractured one and readying the second, preparing to drill two new vertical wells in December plus commenced work on a valuation report.
Permian Basin
Golden Gate Petroleum LimitedInvestor Presentation – November 2011
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Permian Basin Project
SRH‐C #6H WellWell was drilled to a total depth of 9,235 feet.
Eight pay intervals ranging from 5,220 feet to 9,176 feet have been identified from the logs.
Over 130 feet of conventional sand and 1,600 feet of rich oil shales have been identified for testing and hydraulic fracturing.
Total recoverable oil estimated from log analysis is 260,000 barrels, which is approximately US $20 million in gross revenue, assuming an US$ 80 per barrel oil prices.
Estimate is based on total oil attributable to the conventional sands of 136,000 barrels assuming a 40 acre drainage area & a recovery factor of 25.85 barrels of oil per acre foot. Oil attributable to the rich oil shales is estimated to be 124,000 barrels of oil assuming a 1% recovery of the oil in place which works out to be 1.94 barrels of oil per acre foot.
Well has successfully undergone hydraulic fracturing.
Currently returning frac fluids along with oil and gas.
Initial production testing next week.
Golden Gate Petroleum LimitedInvestor Presentation – November 2011
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Permian Basin Project
SRH‐A #8A WellWell was drilled to a total depth of 9,500 feet.
Seven pay intervals ranging from 5,474 feet to 9,321 feet have been identified from the logs.
Over 60 feet of conventional sand and 1,250 feet of rich oil shales have been identified for testing and hydraulic fracturing.
Total recoverable oil estimated from log analysis is 202,000 barrels, which is approximately US $16 million in gross revenue, assuming an US$ 80 per barrel oil prices.
Estimate is based on total oil attributable to the conventional sands of 97,000 barrels assuming a 40 acre drainage area & a recovery factor of 40.4 barrels of oil per acre foot. Oil attributable to the rich oil shales is estimated to be 105,000 barrels of oil assuming a 1%to 1.5% recovery of the oil in place which works out to be between 1.3 and 2.9 barrels of oil per acre foot.
Well is being prepared for hydraulic fracturing by Halliburton in mid December.
Equipment and site preparation underway.
Golden Gate Petroleum LimitedInvestor Presentation – November 2011
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Indicative Permian Basin Drilling Program
Well Nov 2011 Dec2011
Jan2012
Feb2012
Mar2012
Apr2012
May2012
Jun2012
Jul2012
Aug2012
Sep 2012
Oct2012
SRH‐C6H V
SRH‐A8A V
No 3 V
No 4 V
No 5 H
No 6 V
No 7 V
No 8 H
No 9 H
No 10 H
Drilling Fracture Stimulating On Production
Golden Gate Petroleum LimitedInvestor Presentation – November 2011
H = Horizontal Well V= Vertical Well
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Indicative Permian Basin Project FinancingOf 10 Well Drilling Program
Description Amount USD
Drilling, completion & fracingcosts6 vertical wells @ 1.5m4 horizontal wells @ 3.0m
9,000,00012,000,000
Less amounts already paid (1,500,000)
Existing Cash (1,500,000)
Future Rights Issue / Placement
(9,000,000)
Revenues & Production Financing Facility
(9,000,000)
Golden Gate Petroleum LimitedInvestor Presentation – November 2011
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Bullseye Project
Jumonville #1 & #2
Total production for the 2011 financial year was:
TotalOilBBL
GGP ShareBBL
Total GasMCF
GGP ShareMCF
Jumonville #1 11,799 5,839 39,118 19,358
Jumonville #2 32,714 16,000 43,187 21,122
Total 44,513 21,839 82,305 40,480
Plan is to test the Camerina interval through the Jumonville #1 well when this well finishes commercial production in the first quarter of calendar 2012.
The Camerina interval is estimated to contain resources of between 2.2 – 7.1 million barrels of oil and between 2 – 7 BCF of gas, but extent of reservoir unknown.
Golden Gate Petroleum LimitedInvestor Presentation – November 2011
Operator & 54.25% Working Interest
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Huth Prospect
Jumonville #4 (Huth Prospect)
GGP has acquired the rights to a 21% working interest, after paying 25% before casing point in the first two wells.
The Huth prospect comprises the mineral rights down to 11,000 feet which contains the producing zone at 10,100 feet.
The Huth sand has produced over 2.3 million barrels of oil and in excess of 2.5 billion cubic feet of gas from the 8 wells previously producing from this interval.
Initial daily production rate is estimated at between 100 to 200 barrels of oil equivalent (mostly oil).
GGP’s net cost to participate in the initial well through completion is approximately US$ 250,000 after offsets for services provided.
Commence drilling operations in December 2011.
Golden Gate Petroleum LimitedInvestor Presentation – November 2011
Operator and 21% Working Interest
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Napoleonville Project
Dugas & Leblanc #3
Produced 1,050 barrels of condensate and 162 million cubic feet of gas before being temporarily shut in to complete the “M” sand.
Logged 40 feet net oil pay and 26 feet of net gas pay in the “M” sand.
Recently completed in the “M” sand with production at 210 barrels of oil per day & 1.7 million cubic feet of gas per day.
Estimated recoverable reserve of 400,000 barrels of oil and 1.2 billion cubic feet of gas.*
Potential for a further 10 – 15 billion cubic feet of gas updip
* Reserve review undertaken by Grand Gulf Energy Ltd
Golden Gate Petroleum LimitedInvestor Presentation – November 2011
Non‐ Operator & 15% Working Interest
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Fausse Point Project
TGR #1 Well – Side‐track
A side‐track to the TGR #1 well is to be drilled at Fausse Point targeting a potential 200 acre hydrocarbon accumulation over two primary intervals up‐dip from the original well.
The fault block to be drilled has no previous penetrations of the targeted pay interval and is estimated to contain up to 20 billion cubic feet of gas (3.5 million barrel of oil equivalent) of recoverable gas on an un‐risked basis.
The major partner in the project, Verus Investments Limited (ASX: VIL) is reviewing the option to farm out a portion of their 72.0% working interest. The project is on hold pending VIL’s decision.
Golden Gate Petroleum LimitedInvestor Presentation – November 2011
Operator & 18% Working Interest
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Fausse Point Project
New Shallow Oil Target
Utilising reprocessed 3D seismic covering 50 square miles of the Fausse Point Salt Dome, GGP has been able to identify a separate shallow oil target within the Area of Mutual Interest shared by the partners.
The new objective is an oil sand ~3,000 feet measured depth and covers approximately 200 acres.
The potential recoverable resource estimated at this early stage is 2.4 million barrels of oil in a 100 acre trap, assuming 30% recovery factors.
The sands are estimated to be 70 feet thick with good porosity. There are analogue wells which have produced from these sands located around the Fausse Point Salt Dome.
GGP is continuing to complete the leasing of the targeted area and examining potential drill sites within the wetland area. Permitting has commenced but will take time.
Golden Gate Petroleum LimitedInvestor Presentation – November 2011
Operator & 18% Working Interest
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Other Projects
North Edna Project – 85% Working Interest
The Richardson #1 Well was shut in during June 2011.
Partners have elected to exit this project.
GGP is assessing a number of options for this project.
3D Seismic Project
GGP owns 3D seismic licences covering Fausse Point (Louisiana), Magnet Withers (Texas) and Padre Island (Texas).
Intention is to build leasehold positions and promote prospects.
Bowtie West Project – 18% Working Interest
Bowtie West (Sugar Valley #1) is ready to drill and GGP has been advised that the Operator will drill this well in the first quarter of 2012 targeting the prolific Vicksburg sandstone reservoir.
Golden Gate Petroleum LimitedInvestor Presentation – November 2011
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Golden Gate Petroleum Ltd
DisclaimersReliance on Third Party InformationThe views expressed here contain information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. This presentation should not be relied upon as a recommendation of forecast by Golden Gate Petroleum.
Forward Looking StatementsThis presentation contains forward looking statements that are subject to risk factors associated with oil and gas businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including but not limited to; price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimates, loss of market, industrycompetition. Environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates. All references to dollars, cents or $ in this presentation are to AUD currency, unless otherwise stated.
Competent Persons’ StatementThe information in this report concerning projects in Louisiana has been reviewed and signed off by Mr Mark Decker, Geologist (BS Geology), with over 34 years relevant experience with the oil and gas sector.
The information in this report concerning the Permian Basin project has been reviewed and signed off by Mr Mickey McGhee a Geologist with over 30 years’ experience within the oil and gas sector and an extended background in the Permian Basin.
No Offer of SecuritiesNothing in this release should be construed as either an offer to sell or a solicitation of an offer to buy or sell Golden Gate Petroleum securities in any jurisdiction.
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