Bounty Oil & Gas NL Annual General Meeting 27 November 2013 CEO’s Report Philip F Kelso
Highlights Australia • Bounty has successfully delineated and de-risked the Azalea Prospect in AC/P 32 (BUY 100%) Timor Sea, ready for farmout • Azalea contains 511 million barrels of oil (MMbo) in place in the Puffin Sand reservoir up dip from Proven oil in the well Birch 1 • Bounty conservatively estimates that 113 MMbo are recoverable, making this one of the largest potential oil pools in the area • Bounty is also working on some significant acquisitions within Australia 2
Highlights Tanzania • The Kiliwani North gas field (But 10%) is now scheduled for production in early 2015 • Bounty will produce 364 barrels of oil equivalent (boe) per day from this well • Planning to drill the 500 BCF gas Fanjove prospect in early 2014 (BUY 5%) 3
Year on Year Comparison 40 Financials 35 30 25 A$ Millions 20 15 2013 2012 2011 10 5 0 Total Assets Net Assets Current Assets Petroleum Sales Cashflow 4
Bounty Reserves and Resources Discovered MMboe Proved Producing P90 P50 P10 Utopia 0.226 0.582 1.210 Nacccowlah 0.046 0.150 0.286 Total Proved Producing 0.272 0.732 1.496 Proved Non-Producing Kiliwani North 0.820 0.820 Reserve Categories Year on Year Comparison Downlands 0.020 0.360 0.360 Total Proved Non-Producing 0.020 1.180 1.180 Proved P50 Contingent Prospective Total Proved 0.292 1.912 2.676 1000 Contingent Utopia 0.612 1.490 2.816 South Surat 0.044 0.069 0.102 100 North Surat 0.000 0.950 0.040 Total Contingent 0.655 2.509 2.958 10 Total Discovered Reserves and Resources 0.948 4.421 5.633 MMbo 1 Undiscovered MMboe 0.1 Prospective P90 P50 P10 2010/11 2011/12 2012/13 At AGM South Surat 0.1 0.2 0.4 North Surat 0.0 0.5 0.0 AC/P 32 16.0 75.5 143.3 Nyuni Block 15.4 24.7 45.2 PEP 11 10.7 128.8 0.0 Total Undiscovered 42.1 229.7 188.9 5
Project Review What are we going to review? • Strategy • Performance • Way Forward 2014 – 15 • Bounty Projects Overview • SW Queensland Oil Production • Kiliwani North Gas Commercialisation • Nyuni Block Stratigraphic Gas Leads • AC/P 32 Timor Sea 500 MMboip Azalea Prospect – Major Component of Bounty’s Future 6
Strategy Sector Objective Operations Drill prospect inventory in Surat Basin, pursue further prospects with 3D Fiscal Oil seismic and continue development and near field exploration drilling in Stability Business SW Queensland Revenue 1. Bring on stream 10% owned Kiliwani North (Tanzania) and continue Gas Boost with exploration drilling in this globally significant gas play Business 2. Renew Surat Basin production from Downlands 2014/15 Upside for Pursue huge oil targets in AC/P 32 Timor Sea (BUY 100%), and gas in Nyuni Growth PSA, Tanzania Shareholders 7
Performance Bounty Daily Production by Field 90.00 Oil Naccowlah bopd 80.00 Utopia bopd • Participated in two successful development wells at Utopia Downlands Boped 70.00 drilled in early 2013, and 60.00 • In a further 4 successful development and appraisal wells at 50.00 Naccowlah and Utopia drilled in the last three months 40.00 • 30.00 Maintaining production levels 20.00 10.00 Gas 0.00 • Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 Kiliwani North commercialisation progressing with sales agreement for gas under active negotiation, new government owned gas plant scheduled to be ready by Azalea Prospect early 2015 Puffin Sands • Bounty to net 2 MMcfg/d production (364 boepd) (golden hues) Growth • Azalea Prospect AC/P 32 (BUY 100%) 511 MMbbl oil in place Prospect developed and de-risked this year • Additional leads of a similar size being developed • Planning for Drilling 500 BCF gas target at Fanjove in Nyuni PSA Tanzania (BUY 5%) 8
Way Forward 2014 - 15 Oil • Ongoing development and appraisal drilling at Naccowlah (SW Qld) • Ongoing development and appraisal drilling at Utopia (SW Qld) • Appraisal Drilling PL 2, Surat Basin Qld • Production and testing of oil leg at Downlands, Surat Basin Qld Gas • Finalise sale agreement and bring Kiliwani North (BUY 10%) into production at 2 MMcfg/d net to BUY for 6 years. Will lift BUY production from ~70 boepd to 434 boepd early 2015 Growth • Drill 500 BCF target at Fanjove (Nyuni PSA BUY 5%) early 2014, and acquire 3D over deep water prospects • Farmdown 100% interest in 500 MMbbl oil in place Azalea Prospect for drilling FY 2014/15, this project provides a major upside for Bounty’s shareholders 9
Bounty Projects Overview 10
SW Queensland Oil Production Utopia Field East Pool Depth Structure Irtalie East and Cooroo North West • SW Qld Production 2012/13 Utopia 14 drilled early 2103 proved the eastern extension of the Utopia Field, confirmed by the step out 80.00 Naccowlah bopd Utopia bopd well Utopia 16 just completed 70.00 • 60.00 Follow up wells Irtalie East 4 and 5 and NFE well Cooroo 50.00 North 1 drilled in September 2013 all intersected good 40.00 reservoir in the target Basal Birkhead/Hutton and also 30.00 established new pools in the Westbourne Fmn. and 20.00 Basal Jurassic 10.00 • Ongoing successful development and appraisal drilling 0.00 has offset natural decline and kept production relatively Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 steady 11
Kiliwani North Gas Commercialisation – BUY 10% • The new Tanzanian Government gas plant and pipeline to shore to be adjacent to Kiliwani North well head • Joint Venture will produce from the 45 BCF Kiliwani North gasfield at a rate of 20 million cubic feet per day in early 2015 (2 MMcfg/d or 364 boepd net to BUY) • Fanjove prospect 7 km southeast of Kiliwani North well head is a 500 BCF Pmean target in the same Neocomian Sands as host Kiliwani North and Songo Songo Gas Fields • JV is currently considering drilling this in early 2014. Drilling involves a land rig located on Fanjove Island. Well to test the target within the Nyuni PSA and BUY will contribute 5%. • Tanzania Government keen for new resources to fill pipeline 12
Nyuni Block Stratigraphic Gas Leads – BUY 5% • Recent Exploration by ENI, Anadarko, BG and others offsore Tanzania and Mozambique has discovered over 130 Tcf of gas in structural/stratigraphic traps in deep water turbidite sands, sourced from adjacent river deltas • Bounty has several significant leads in the same units within the Nyuni PSA which are marked by strong seismic amplitude anomalies and other direct indicators of hydrocarbons with targets of 2.6 TCF gas. • The deeper water off the shelf edge (dark blue) within the Nyuni PSA will be explored with around 600 km 2 of 3D seismic. The JV is planning to acquire it in 2014. Stratigraphic Targets BCF Gas P90 P50 P10 Pmean 220 792 2840 1303 Lead 3 Pande East 1054 1375 1495 1317 Other Leads 1274 2167 4335 2620 Total 13
AC/P 32 High Impact Oil Exploration 500 MMboip – BUY 100% • AC/P 32 is located in the Vulcan Sub-basin in Ashmore and Cartier Territory, Timor Sea • The basin is oil prone and the permit is surrounded by oil fields with substantial production • It is located only 25 km from the Montara/Skua/ Swallow project currently operated by PTTEP Australia • Bounty has this year developed the 511 MMboip Azalea Prospect, which lies in the Puffin Formation up dip from proven oil in Birch 1 to the west of the permit. • Using very conservative parameters, Bounty estimates that there could be over 100 MMbo recoverable from this prospect. If recovery is similar to some nearby fields this could double • As the number of wells with oil shows but no pools indicates, structural traps in this area have a high risk factor to cap rock integrity and breaching, whereas Bounty’s stratigraphic prospects are in many ways lower risk than many Timor Sea plays 14
Azalea Prospect Fundamentals • This Accoustic impedance view of the seismic clearly shows the Puffin Sands in the Azalea Prospect with identical low impedance (light blue) to the excellent Upper sands encountered in Birch 1 (Av. Porosity 25%), and the corresponding higher impedance (green red) in the thin, discontinunous, oil bearing (Lower) sands • The trap occurs where the sands pinchout up dip just west of Wisteria 1 • The stratigraphic nature of the trap and the proven oil in Birch 1 minimises the risks associated with the timing, generation and � migration of oil 15
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