Norwest Energy NL Managing Director Presentation to Annual General Meeting 29 November 2019 NORWEST ENERGY NL ASX:NWE
Important Information The information contained in this Presentation or subsequently provided to the Recipient of this Presentation whether orally or in writing by or on behalf of Norwest Energy NL (“NWE”) or their respective employees, agents or consultants ("Information") is provided to the Recipients on the terms and conditions set out in this notice. The Presentation contains reference to certain intentions, expectations and plans of NWE. Those intentions, expectations and plans may or may not be achieved. They are based on certain assumptions which may not be met or on which views may differ. The performance and operations of NWE may be influenced by a number of factors, many of which are outside the control of NWE. No representation or warranty, express or implied, is made by NWE or any of its respective directors, officers, employees, advisers or agents, that any intentions, expectations or plans will be achieved either totally or partially or that any particular rate of return will be achieved. The Presentation does not purport to contain all the information that any existing or prospective investor may require. It is not intended to be a complete or accurate statement of material information. In all cases, before acting in reliance on any information, the Recipient should conduct its own investigation and analysis in relation to the business opportunity and should check the accuracy, reliability and completeness of the Information and obtain independent and specific advice from appropriate professionaladvisers. The Recipient should not treat the contents of this Presentation as advice relating to legal, taxation or investment matters and should consult its own advisers. NWE and its advisers take no responsibility for the contents of this Presentation. NWE makes no representation or warranty (express or implied) as to the accuracy, reliability or completeness of the information. NWE and its respective directors, employees, agents and consultants shall have no liability (including liability to any person by reason of negligence or negligent misstatement) for any statements, opinions, information or matters (express or implied) arising out of, contained in or derived from, or for any omissions from the Presentation, except liability under statute that cannot be excluded. NWE is not aware of any new information or data that materially affects the information included in any market announcement referenced throughout the Presentation and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materiallychanged. Prospective Resources are the estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) and relate to undiscovered accumulations. These estimates are quoted as gross (100%) and have both an associated risk of discovery and a chance of development. Further exploration, appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.
FY19 Review and FY20 Lookahead Recent gas discoveries transform the Perth Basin, greatly enhancing 1. prospectivity of EP368 & EP426 Norwest’s High-impact well to be drilled in EP368 in CY H1 2020 2. Completed Xanadu 3D seismic program 3. Divested of L14 minority interest, raising $700,000 4. Recent capital raising strengthens balance sheet and enables Norwest to participate in drilling at full working interest – preferable to farming out, on a 5. risk vs reward basis. Directors participating in placement, subject to shareholder approval Share Purchase Plan opens today, enabling existing eligible shareholders to 6. participate on the same basis as the placement
A New Era for the Perth Basin Waitsia Discovery West Erregulla-2 and Beharra Springs Deep Discoveries Three months ago STX/WGO made a 2014 AWE made a serendipitous large gas “staggering” gas discovery at West Erregulla-2 discovery at Waitsia Beach Energy subsequently made a further find Largest onshore gas discovery in over 40 years at Beharra Springs Deep Opened up new geological play Waitsia not an anomaly Current reserves estimate 844 Bcf WE-2 has 2C resources of 1.2 Tcf gas, and By 2016 first gas produced from Waitsia down flowed at up to 69 mmscfd from the Kingia Fm. the Parmelia Gas Pipeline to Perth These results significantly enhance prospectivity Now co-owned by Mitsui & Beach Energy of NWE’s EP368 and EP426 permits
Perth Basin Creaming Curve 700 650 Beharra Springs Deep 600 ? 550 Cumulative Reserves (mmboe) West 500 Erregulla-2 450 400 350 Waitsia 300 250 200 Example of Typical Mature Basin Creaming Curve Dongara 150 100 Beharra 50 Woodada Springs 0 1960 1970 1980 1990 2000 2010 2020
Perfectly Placed for Big Gas § EP368 & EP426: Norwest 20%/22%%, Dongara § Operator Energy Resources Ltd * EP368 EP426 Springy Creek Western § Adjacent to Strike Energy’s 1.2 Tcf oil prospect Australia West Erregulla-2 find Perth LOCALITY MAP § Kingia/High Cliff play extends in to Lockyer Deep NWE’s permits s m k North Erregulla § Beharra Springs Deep result 5 1 Deep further de-risks gas prospects § Large combination gas prospect, Waitsia 10 kms high case 1.1 Tcf+ § Significant oil prospect at Springy West Erregulla- 2 gas discovery Creek, up to 61 MMbbls Beharra Springs Deep gas discovery § Various other structural leads being assessed 0 10 km § JV decision pending on location Nor 0012.dgn for drilling by commitment well * A wholly owned subsidiary of Mineral Resources Ltd H1 2020 (ASX: MIN)
EP 368/426 Gas Prospect 0 0 0 0 0 3 0 3 0 0 9 1 0 1 0 0 3 3 0 0 2 3 0 0 Combination 4 0 0 0 A’ Mid Case 4 5 0 0 0 4 5 0 Lockyer Deep 4 2 5 4 0 0 3 Low Case 0 Combination 4 0 2 3 5 5 7 4 0 5 0 0 0 0 0 3 High Case 0 2 5 0 0 0 4 0 2 5 5 0 4 4 0 0 5 0 0 3 7 0 5 0 A 4 5 0 4 0 4 7 5 5 5 0 5 2 5 2 4 5 0 0 0 0 0 5 5 0 0 0 0 North Erregulla Deep 4 5 0 0 4 0 0 Low Case 2 0 5 4 0 4 0 0 0 4 4 5 0 5 km 5 0 0 0 EP368 EP426 0 0 5 7 4 5 0 7 4 Nor 0008.dgn Upgraded Prospective Gas Resources (Recoverable) Gross Bcf (100%) NWE Share Bcf (20%) Low Mid High Low Mid High Lockyer Deep 36 7 459 1122 92 224 North Erregulla Deep 131 22
EP 368/426 Seismic Example Seismic Line 87-01 A A’ 0.500 1.000 T o p C a d d a F m Top Cattamarra Fm Top Cadda Fm Seismic Amplitude 1.500 “Brightening” within Cattamarra Coaly S ec ond s Kingia Fm = possible n indicator of gas charge i Top Wagina Fm m e T i 2.000 Base Kockatea Shale Top Kingia Fm Top Kingia Fm 2.500 Refer to previous slide for line location A-A’ 3.000 Nor 0009.dgn
TP/15: Xanadu Oil Discovery 3 N m § Norwest (25% and Operator) with partners C o a s t a Triangle Energy (45%) and 3C Group (30%) l W a t e r W.A. L i m i t § Shallow water oil discovery drilled from Perth onshore location (Sept. 2017) LOCALITY MAP § Norwest was fully carried through drilling Dongara of exploration well - JVPs now funding pro TP/15 rata Cliff Head Oil Field § 3D seismic program completed in July 2019 I N D I A N O C E A N § Preliminary results recently released Xanadu-1 Xanadu Well Pad § Updip potential are really limited, downdip potential higher risk but may warrant Xanadu Discovery Oil field appraisal drilling Gas field § Further engineering & commercial studies required to de-risk downdip area and determine feasibility of appraisal 0 15km Nor 0005.dgn
TP/15: Xanadu Appraisal § Updated structural interpretation Vindara-1 1 5 0 0 0 0 5 1 reveals significantly different fault 0 1 0 6 0 5 0 0 1 0 4 1 3D Survey Area 0 North 0 geometry 3 1 A 1 5 Xanadu 0 0 Lead 1 6 0 0 § In particular the area updip of 1 5 0 0 0 0 4 Xanadu-1 is smaller than previously 0 1 0 6 1 0 0 1 7 thought 1 1 6 Xanadu-1 7 0 0 Revised Fault 0 0 § A larger oil volume may exist intersection 0 0 Interpretation 8 1 6 1 0 0 0 1 0 post 3D 7 downdip, based on an interpretation 0 2 1 0 1 5 1 0 1 5 8 0 0 0 0 0 of downhole pressure data 1 0 0 4 0 0 0 4 0 1 1 9 3 0 1 1 0 6 0 0 0 0 7 § Further engineering studies are 0 1 0 0 2 0 6 1 West 1 required to determine if this Xanadu Freshwater Point-1 Lead interpretation is valid § Commercial and drilling studies will A’ 0 1 1 4 0 then follow, to determine the 5 0 6 0 0 1 0 viability of future 9 0 0 Downdip appraisal/development drilling 1 Area 0 0 0 1 § Additional potential exists to north 1 0 0 2 km 0 and west Nor 0010.dgn
In Summary Norwest’s exposure to the Permian gas play offers shareholders 1. and new investors an opportunity to participate in a potential “company maker” Funded to drill in 2020, for what will be perhaps the most exciting 2. drilling campaign in Norwest’s history Commercialisation of Xanadu is not “off the cards”, but does 3. require additional analysis of available data to support further drilling Perfectly placed – NWE is well positioned and well leveraged to 4. benefit from the resurgence of Perth Basin exploration and the emerging “big gas play”
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