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Golden Gate Petroleum Limited Investor Presentation November 2011 Steve Graves, Executive Chairman Exploration Development Production.

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Presentation on theme: "Golden Gate Petroleum Limited Investor Presentation November 2011 Steve Graves, Executive Chairman Exploration Development Production."— Presentation transcript:

1 Golden Gate Petroleum Limited Investor Presentation November 2011 Steve Graves, Executive Chairman Exploration Development Production

2 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 Limited Investor Presentation – November 2011 Permian Basin Gulf Coast region

3 InvestorShares Held% Alimold Pty Ltd61,500,0003.49 Sacha Investments Pty Ltd24,000,0001.36 Dr T Kolimackovski22,000,0001.25 Four P Investments Co P/L21,450,0001.22 Lawnbet Pty Ltd20,000,0001.14 Date23 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 control18% 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 Limited Investor Presentation – November 2011 Capital Structure Location of Shareholders

4 Board & Management Executive Chairman Steve Graves Director Frank Petruzzelli Director Frank Brophy Company Secretary 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 management experience 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 Limited Investor Presentation – November 2011

5 2011 AUD 000’s 2010 AUD 000’s Variance 000’sNotes Current assets Cash & cash equivalents Trade & other receivables Investments Prepayments Total current assets Non-current assets Trade & other payables Plant & equipment Exploration & development assets Oil & gas properties Total non-current assets Total assets Total current liabilities Total non-current liabilities Total liabilities Net assets 2,388 856 7 57 3,308 203 27 8,894 1,343 10,467 13,775 1,669 1,603 3,272 10,503 7,584 1,158 - 59 8,801 283 47 3,754 5,877 9,961 18,762 3,881 814 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 acquisitions Write down of Bullseye Project Assets See note for cash movement above 1.5m convertible notes issued Consolidated Statement of Financial Position as at 30 June 2011 Golden Gate Petroleum Limited Investor Presentation – November 2011

6 Golden Gate Petroleum Limited Investor Presentation – November 2011 Permian Basin Bowtie West Bullseye Napoleonville North Edna Fausse Point Geographical location of Projects

7 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 Limited Investor Presentation – November 2011

8 Permian Basin Project SRH-C #6H Well Well 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 Limited Investor Presentation – November 2011

9 Permian Basin Project SRH-A #8A Well Well 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 Limited Investor Presentation – November 2011

10 Indicative Permian Basin Drilling Program WellNov 2011Dec 2011 Jan 2012 Feb 2012 Mar 2012 Apr 2012 May 2012 Jun 2012 Jul 2012 Aug 2012 Sep 2012 Oct 2012 SRH-C6HV SRH-A8AV No 3V No 4V No 5H No 6V No 7V No 8H No 9H No 10H Drilling Fracture Stimulating On Production Golden Gate Petroleum Limited Investor Presentation – November 2011 H = Horizontal Well V= Vertical Well

11 Indicative Permian Basin Project Financing Of 10 Well Drilling Program DescriptionAmount USD Drilling, completion & fracing costs 6 vertical wells @ 1.5m 4 horizontal wells @ 3.0m 9,000,000 12,000,000 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 Limited Investor Presentation – November 2011

12 Bullseye Project Jumonville #1 & #2 Total production for the 2011 financial year was: Total Oil BBL GGP Share BBL Total Gas MCF GGP Share MCF Jumonville #111,7995,83939,11819,358 Jumonville #232,71416,00043,18721,122 Total44,51321,83982,30540,480 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 Limited Investor Presentation – November 2011 Operator & 54.25% Working Interest

13 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 Limited Investor Presentation – November 2011 Operator and 21% Working Interest

14 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 Limited Investor Presentation – November 2011 Non- Operator & 15% Working Interest

15 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 Limited Investor Presentation – November 2011 Operator & 18% Working Interes t

16 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 Limited Investor Presentation – November 2011 Operator & 18% Working Interest

17 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 Limited Investor Presentation – November 2011

18 Golden Gate Petroleum Ltd Disclaimers Reliance on Third Party Information The 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 Statements This 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, industry competition. 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’ Statement The 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 Securities Nothing 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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