Greenfields Petroleum Corporation Investor Update Annual General Meeting August 14, 2014 Houston, Texas TSX.V: GNF & GNF.DB
Forward-Looking Statements This presentation contains forward-looking statements. More particularly, this presentation contains statements concerning the anticipated future corporate plans and initiatives for Greenfields Petroleum Corporation (“Greenfields”). Some of the forward-looking statements can be identified by words such as “expects”, “anticipates”, “should”, “believes”, “plans”, “will” and similar expressions. Specifically, forward-looking statements in this presentation include the anticipated milestones schedule, the amount of anticipated net annual cash flow and the company’s drilling program. The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Greenfields, including expectations and assumptions concerning timing of receipt of required shareholder, regulatory or third party approvals, the availability of equity investment, the ability to acquire assets, the success of future drilling and development activities, the performance of existing wells, the performance of new wells, the application of regulatory and royalty regimes, the volatility of oil and gas prices, the receipt of cooperation from contractual counterparties where their assistance is required and prevailing commodity prices and exchange rates. Although Greenfields believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Greenfields can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to obtain necessary shareholder, regulatory or other third party approvals to the planned transactions, risks associated with the availability of capital in the financial markets, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. The forward-looking statements contained in this document may not be appropriate for other purposes and are made as of the date hereof and Greenfields does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. Disclaimer Greenfields’ securities are a highly speculative investment and are not intended as a complete investment program. They are designed only for sophisticated persons who can bear the economic risk of the loss of their investment in Greenfields and who have limited need for liquidity in their investment. There can be no assurance that Greenfields will achieve its investment objective. Target investment goals are not a guarantee of future returns. The attached material is provided for informational purposes only as of the date hereof, is not complete, and may not contain certain material information about Greenfields, including important disclosures and risk factors associated with an investment in Greenfields. This information does not take into account the particular investment objectives or financial circumstances of any specific person who may receive it. More complete disclosures and the terms and conditions relating to an investment in Greenfields will be contained in Greenfields’ subscription agreement and/or similar offering documents. Before making any investment, prospective investors should thoroughly and carefully review such documents with their financial, legal and tax advisors to determine whether an investment is suitable for them. This document and its contents are confidential. It is being supplied to you solely for your information and may not be reproduced or forwarded to any other person, or published (in whole or in part) for any purpose. Measurement Barrels Oil Equivalent or “boe” may be misleading, particularly if used in isolation. A boe conversion ratio of 6mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. The Company uses a 6mcf: 1bbl ratio to calculate its share of entitlement sales from the Bahar project. The production threshold of 6,944 boe to earn the full 25 year initial term of the ERDPSA uses a 5.559 mcf: 1bbl conversion ratio per contract to measure total field production toward this obligation. Currency All amounts in this presentation are in US dollars unless otherwise noted. 2
Agenda • Highlights of past year – Production – Reserves • Key Technical Learnings • Key Commercial Issues • 3D Seismic in Gum Deniz oil field • Next steps
Key Highlights • Successes in three new offshore oil wells (GD 715, 716, & 714) • Production as high as 10,000+ BOEPD • Met 1.5X Production Goal January 2014 • Met 2.0X Production Goal March 31, 2014 • Gum Deniz and Bahar workovers and recompletions ongoing • Gum Deniz drilling program on hold • 3 ‐ D Seismic evaluation of Bahar 2 Exploration block being finalized • New 3 ‐ D Seismic for Gum Deniz being acquired Materials being transported to 4 Platform 208 for Drilling
Greenfields Petroleum 2013 Net Production 1,641 BOE/d 2014 Q1&2 Net Production 1,708 BOE/d Debt $25 Million Convertible Debenture $24 Million Net Reserves (P1+P2)* 5.3 MMBO 65.1 BCF 16.2 MMBOE $182 million Asset Valuation PV10 (P1+P2)* * GLJ 2013 Reserves Report 5
Greenfields Reserves (year end 2013) Greenfields Proved Proved Proved Total Total Total 2P Net Interest Producing Developed Undeveloped Proved Probable Oil Mbbls 426 586 2,792 3,378 1,520 4,898 Gas MMcf 4,574 25,196 4,731 29,927 35,178 65,105 Total NGL 40 160 35 195 262 457 Total BOE 1,228 4,945 4,221 8,561 7,645 16,206 Mbbls NPV 10% $M 11,036 62,479 6,018 68,354 113,846 182,200 9/17/2014 6
2012 ‐ 2013 GNF Net Reserves 30,000 2013 25,000 20,000 2013 15,725 Gas 15,000 Oil 7,598 2013 10,851 10,000 6,805 4,878 4,988 5,000 8,886 8,769 5,770 5,355 4,073 3,573 ‐ 1P 2012 MBOE 1P 2013 MBOE 2P 2012 MBOE 2P 2013 MBOE 3P 2012 MBOE 3P 2013 MBOE 9/17/2014 7
2012 ‐ 2013 GNF Net NPV 10% NPV 10% 350,000 326,418 300,000 250,000 2012 1P $M 202,137 200,000 2013 1P $M 182,200 2012 2P $M 2013 2P $M 150,000 2012 3P $M 117,696 2013 3P $M 100,000 68,354 48,667 50,000 ‐ 2012 1P $M 2013 1P $M 2012 2P $M 2013 2P $M 2012 3P $M 2013 3P $M 9/17/2014 8
10000 12000 Bahar Gross Production (2013 ‐ 2014) 2000 4000 6000 8000 0 1 ‐ Jan ‐ 13 8 ‐ Jan ‐ 13 15 ‐ Jan ‐ 13 22 ‐ Jan ‐ 13 29 ‐ Jan ‐ 13 5 ‐ Feb ‐ 13 BOEPD 12 ‐ Feb ‐ 13 19 ‐ Feb ‐ 13 26 ‐ Feb ‐ 13 5 ‐ Mar ‐ 13 12 ‐ Mar ‐ 13 BOPD 19 ‐ Mar ‐ 13 26 ‐ Mar ‐ 13 2 ‐ Apr ‐ 13 9 ‐ Apr ‐ 13 16 ‐ Apr ‐ 13 23 ‐ Apr ‐ 13 30 ‐ Apr ‐ 13 7 ‐ May ‐ 13 14 ‐ May ‐ 13 21 ‐ May ‐ 13 28 ‐ May ‐ 13 4 ‐ Jun ‐ 13 11 ‐ Jun ‐ 13 18 ‐ Jun ‐ 13 25 ‐ Jun ‐ 13 2 ‐ Jul ‐ 13 9 ‐ Jul ‐ 13 16 ‐ Jul ‐ 13 23 ‐ Jul ‐ 13 30 ‐ Jul ‐ 13 6 ‐ Aug ‐ 13 13 ‐ Aug ‐ 13 2013 ‐ 2014 Gross Produc on 20 ‐ Aug ‐ 13 27 ‐ Aug ‐ 13 3 ‐ Sep ‐ 13 10 ‐ Sep ‐ 13 17 ‐ Sep ‐ 13 Bahar ERDPSA 24 ‐ Sep ‐ 13 1 ‐ Oct ‐ 13 8 ‐ Oct ‐ 13 15 ‐ Oct ‐ 13 22 ‐ Oct ‐ 13 29 ‐ Oct ‐ 13 5 ‐ Nov ‐ 13 12 ‐ Nov ‐ 13 19 ‐ Nov ‐ 13 26 ‐ Nov ‐ 13 3 ‐ Dec ‐ 13 10 ‐ Dec ‐ 13 Oil Gas 17 ‐ Dec ‐ 13 24 ‐ Dec ‐ 13 31 ‐ Dec ‐ 13 7 ‐ Jan ‐ 14 TPR1 14 ‐ Jan ‐ 14 21 ‐ Jan ‐ 14 28 ‐ Jan ‐ 14 4 ‐ Feb ‐ 14 11 ‐ Feb ‐ 14 18 ‐ Feb ‐ 14 25 ‐ Feb ‐ 14 4 ‐ Mar ‐ 14 11 ‐ Mar ‐ 14 18 ‐ Mar ‐ 14 TPR2 25 ‐ Mar ‐ 14 1 ‐ Apr ‐ 14 8 ‐ Apr ‐ 14 15 ‐ Apr ‐ 14 22 ‐ Apr ‐ 14 29 ‐ Apr ‐ 14 6 ‐ May ‐ 14 13 ‐ May ‐ 14 20 ‐ May ‐ 14 27 ‐ May ‐ 14 shortfall funding Partner 3 ‐ Jun ‐ 14 10 ‐ Jun ‐ 14 17 ‐ Jun ‐ 14 24 ‐ Jun ‐ 14 1 ‐ Jul ‐ 14 8 ‐ Jul ‐ 14 15 ‐ Jul ‐ 14 22 ‐ Jul ‐ 14 29 ‐ Jul ‐ 14 5 ‐ Aug ‐ 14
Key Technical Learnings Bahar Gas Field Limited Seismic – some recent 2D • Recompletions adding value and gas volumes • Gas price may increase closer to European prices • when TANAP (2018) Gum Deniz Oil Field • Limited Seismic • Acquired limited 2D • Currently acquiring field wide 3D (120 sq kms) • Well cost coming down (~$7MM) • Complicated structural picture: 12 different reservoirs Reservoir flow units complicated • Artificial lift required: ESP & Gas Lift (reservoir • depletion) Some zones have wax / paraffin problems • Platform refurbishment less expensive than planned • Southern development will require new platforms •
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