enercom* - gulfslope · 19/08/2014 · 2 forward looking statements this current report on form...
TRANSCRIPT
Exploring the Gulf of Mexico
August 20th 2014 EnerCom
www.GulfSlope.com OTC QB: “GSPE”
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Forward Looking Statements
This Current Report on Form 8-K and the materials described above, including the Prospective Resources Report, may contain forward‐looking statements about the business, financial condition and prospects of the Company. Forward-looking statements can be identified by the use of forward-looking terminology such as “believes,” “projects,” “expects,” “may,” “goal,” “estimates,” “should,” “plans,” “targets,” “intends,” “could,” or “anticipates,” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy or objectives. Forward-looking statements relate to anticipated or expected events, activities, trends or results from operations. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties. The forward-looking statements contained in the materials described above speak only as of the date of the material, and the Company expressly disclaims any obligation or undertaking to report any updates or revisions to any such statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based. Certain factors may cause results to differ materially from those anticipated by some of the statements made in the material described above. Please carefully review our filings with the SEC as we have identified many risk factors that impact our business plan. U.S. Investors are urged to consider closely the disclosures in our Forms 10-K, 10-Q, 8-K and other filings with the SEC, which can be electronically accessed from our website at www.GulfSlope.com or the SEC's website at http://www.sec.gov/. The estimates of recoverable resources used in the materials described above, including the Prospective Resources Report, do not comply with the SEC Oil and Gas Industry Disclosures. The results of the prospective resources evaluation conducted by D&M are estimates only and may not accurately reflect actual oil volumes in the Company’s interests in the Gulf of Mexico. The analyses conducted by D&M relied upon 3-D seismic data and visualization techniques, which are only tools used to assist geoscientists in identifying surface structures and hydrocarbon indicators and do not enable the interpreter to know whether hydrocarbons are present in those structures. Other geologists and petroleum professionals, when studying the same seismic data, may have significantly different interpretations than D&M. The prospective resources evaluated by D&M are those undiscovered, highly speculative resources estimated where geological and geophysical data suggest the potential for discovery of petroleum, but where the level of proof is insufficient for classification as reserves or contingent resources. The SEC does not recognize the term “prospective resources” and the SEC permits oil and gas companies, in their filings, to disclose only “reserves.” In addition, prospective resources have a great amount of uncertainty as to their existence and economic feasibility. Investors are cautioned not to assume that estimates of prospective resources are economically drillable, or will ever be upgraded into reserves. The actual volume of recoverable oil, if any, may differ substantially from estimates of reserves.
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Company Profile Trading Profile
Snapshot
Ticker GSPE
Market Cap $150 MM Daily Trading Volume ~380,000 Insider Ownership 40%
Name GulfSlope Energy
Established 2013 Focus Area Offshore Gulf of Mexico Target Shelf Miocene 3D Seismic 2.2 MM acres Lease Blocks 21
GulfSlope Focus Area
Shelf
Deep Water
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Company Highlights
• Significant Oil ExploraWon Exposure -‐ 2+ billion Boe resources -‐ AZracWve return profile given large target sizes and shallower water depth
• First Mover Advantage -‐ Renewed interest in play by oil and gas industry -‐ GulfSlope’s success in recent lease sale establishes leading posiWon -‐ Strategic advantage from proprietary reprocessed seismic
• World Class Management and Technical Team -‐ Proven track record of finding oil & gas -‐ Average 30+ years of experience -‐ Extensive Gulf of Mexico and sub-‐salt experWse
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Strategy • Capitalize on Recent Advancements in Sub-‐Salt Seismic Imaging
-‐ Apply worldwide proven technologies to proven basins with remaining exploraWon potenWal
-‐ Extend prolific deepwater Miocene trend up to the shelf -‐ Deploy specialized technical team for subsalt exploraWon
• Focus on Shallower Water Depths -‐ Higher returns -‐ Faster cycle Wmes to 1st producWon
• Grow and OpWmize ExploraWon Poraolio -‐ 2.2 million acres of 3D seismic licensed in the Shelf Miocene trend -‐ Through lease sales, private transacWons, trades, and partnerships
• Drilling planned for 2015: EvaluaWng partner strategy with potenWal operators
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Exploring a Proven Petroleum System 420 MMboe were discovered in the 1990s in the Shelf Miocene sub-‐salt play 50% ExploraAon success rate by industry leader in the 1990s (5 of 10 wells)
Conger data based on Wood Mackenzie data, other fields based on reported producWon to date
Enchilada >43 MMBoe Discovered 1St Prod 1995 1997
GSPE Lease Blocks Previous Sub-‐Salt Discoveries Oil and Gas-‐Producing Field
Mahogany >45 MMBoe Discovered 1St Prod 1993 1997
Hickory 47 MMBoe Discovered 1St Prod 1998 2000
Tanzanite >30 MMBoe Discovered 1St Prod 1998 1999
Conger 248 MMBoe Discovered 1St Prod 1998 2000
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3rd Party Resource Report
DeGolyer & MacNaughton performed an independent appraisal of GulfSlope’s 17 individual prospects:
• In-‐line with previous internal company esWmates
• Consistent with deepwater Miocene evaluaWons
0
100
200
300
Million Ba
rrels
17 Prospects
ExisWng Field Size Range
*PotenWally recoverable resources. See company website for full DeGolyer & MacNaughton report and disclosures. Net of exisWng farm-‐out arrangements.
MMboe Unrisked Risked
Net Mean 2,005 508 2 Billion boe Resource EsWmate*
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Why we like the shelf: High Value
Based on Wood Mackenzie (WM) data where available or company esWmates based on current rig rates or offset wells
Conger Field Hickory Field
EUR 243 MMboe 47 MMboe
% Oil 61% Oil 28% Condensate
NPV10 $4.2 B $701 MM
IRR 95% 63%
Discovery to ProducWon 2 years 2 years
ExploraWon Costs Today’s cost $105 MM $ 42 MM
Development Cost Today’s cost $977 MM $353 MM
F&D Costs ($/boe) $4.45 $8.46
Discovering E&P Hess Anadarko
Development Sub-‐sea Plaaorm
Reservoir Depth 19,845’ 15,970’
Sand Thickness 343’ 205’
What do previous Shelf Miocene fields look like at today’s costs and commodity prices?
0
15
30
45
60
2016 2020 2024 2028 2032 2036 2040
Mbo
e/d
Conger ProducQon
Gas
Oil
-‐
15
30
45
2016 2020 2024 2028
Mbo
e/d
Hickory ProducQon
Gas
Oil
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Why we like the shelf – Lower Costs
Deepwater costs and resources based on Wood Mackenzie data of the follow current deepwater fields under developments: AppomaZox, Big Bend, Big Foot, Buckskin, Gunflint, Kaskida, Kodiak, Lucius, Moccasin, North PlaZe, Shenandoah, St Malo, Stones, Tiber, Tubular Bells, and Vito. GulfSlope informaWon based on internal company esWmates.
4%
60%
19%
Leasing ExploraWon Drilling
Development
Deepwater Costs 15 Current Development Projects
$/boe
GulfSlope’s unit costs on the shelf are lower at all stages of exploraAon & development
GulfSlope Shelf Cost ProjecQons
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• Large fields: 30 -‐ 248 MMboe exisWng fields in Shelf Miocene play
• All field produced oil or condensate • Average 3 Years from discovery to 1st
producWon • ExploraWon drilling & producWon limited
to primarily Upper Miocene • Middle & Lower Miocene are largely
untested • Industry leader in the ‘90s achieved 5
commercial discoveries in 10 wildcat wells
Shelf Miocene Fields Discovered in 1990s
Shelf Opportunity
• Many large fields sWll exist • Significant infrastructure for fast-‐track development • ExploraWon Wells cost $40-‐65 MM using a jackup rig
• Jackup rig market soq with amply supply in 2015 • Modern Drilling: access mulWple, deeper targets
than in the 1990s with new technology & equipment
• Pipelines: Extensive infrastructure reduces Wme to 1st producWon
• Synergies with offset fields: extends offset field’s life and reduces GSPE throughput costs
Modern Day ExploraQon PotenQal
0 12 24 36 48 60 72 84 96 108 120
Shelf
Deepwater
ExploraWon Drilling
Appraisal Drilling Permisng ConstrucWon & Development Drilling
1 2 3 4 YEARS 5 6 7 8 9
+/-‐ 3 Years
+/-‐ 9 Years1
Development Timeline: Discovery to 1st ProducQon
(1) Based on Wood Mackenzie “High value in deepwater Gulf of Mexico’s riskier assets” dated March 2013
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Technology has reduced entry costs
Technology EvoluQon • Seismic Processing
– Advanced algorithms increase imaging accuracy
– Processing is now faster & cheaper – Reverse Time MigraWon and other
technologies uWlized by GulfSlope and industry provide the most accurate view of sub-‐salt prospects
• Seismic Capture – 1990s: 2D and isolated 3D seismic – Today: 3D data now standard
ü Maximize chance of discoveries ü Improve resource esWmates ü Enable a small team to successfully
compete
Large E&P companies no longer have singular access to expensive advanced processing technologies
1980s 1990s 2000 2005 2012
Kirchhoff MigraQon
Wave EquaQon MigraQon
Reverse Time MigraQon Scalable
Processing
Parallel Processing
CompuQng Cost
Imaging Capability
Beam MigraQon
MulQ-‐core Processors
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Legacy: WEM Processing Modern: RTM Reprocessed
Seismic Processing Improvements
AddiQonal salt body appears
Seismic data courtesy of TGS
Why this Opportunity SAll Exists Today…
Previous generaWons of seismic interpretaWon were insufficient to reduce exploraWon risk below salt
Unclear interpretaQon of geology below salt
Recent advances in seismic processing provide clear images of prospects below salt, where previous interpretaWons failed, as proven by mulW-‐billions of boe discovered in deepwater and internaWonally.
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GSPE has executed its strategy and has a well-‐defined plan going forward
Timeline
Milestones Achieved Future Plans
*PotenWally recoverable resources. See company website for full DeGolyer & MacNaughton report and disclosures. Net of exisWng farm-‐out arrangements.
Acquire 2.2 MM acres of 3D seismic data
Build team of veteran geologists and geophysicists
UQlize seismic to idenQfy and high-‐grade large oil prospects to lease
Lease 21 federal OCS lease blocks with 17 prospects
Re-‐process 1 MM acres of seismic
4Q’14 1H’15 +
Farm-‐out prospects to mulQple operaQng E&P partners
3rd Party Resource Report: 2 Billion boe
4Q’14 1H’15 Announce Drilling Plans
4Q’14 1H’15 Uplist to naQonal exchange
1Q’15 2015 Lease Sale
2015 + Drilling
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• Pure Gulf of Mexico exploraWon exposure
• MulW-‐year drilling poraolio with 2 Billion boe of resources*
• Large prospects in shallower water generate industry leading returns
• TargeWng underexplored oil play with new technology
• Proven leadership with track record of finding oil and gas
• Team fully aligned with investors
• GulfSlope is well posiWoned as industry returns to the Shelf Miocene play
The GulfSlope Opportunity
*PotenWally recoverable resources. See company website for full DeGolyer & MacNaughton report and disclosures. Net of exisWng farm-‐out arrangements.
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GulfSlope.com Contact Investor RelaQons: OTC QB: “GSPE” Brady Rodgers
281.918.4110 [email protected]
Thank you
Exploring the Gulf of Mexico
Special thanks to EnerCom
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Appendix
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The play was 1st produced 1990’s but older technology leR behind a lot of potenAal
Evolution of the Shelf Miocene Play
-‐ 1990 -‐ Shelf Miocene Play 1st Developed
Oil below salt discovered by accident!
• SMI 200 well discovered
1000’ of reservoir sand below salt in 1986
420 MMboe Discovered in the Shelf Miocene play
-‐ 2000 -‐ Sub-‐Salt Seismic Successful din deepwater
ShiR to Deepwater
• Seismic advances lead to massive discoveries in deepwater GoM, followed by globally (Brazil, West Africa, East Africa, Nova ScoWa, and others)
• Extensive R&D spending on sub-‐salt imaging & drilling due to global “size of the prize”
-‐ 2010 -‐ Deepwater Technology Re-‐applies to the Shelf
GulfSlope Captures Leading PosiAon
• Industry applies RTM to Shelf Miocene
sub-‐salt play • GulfSlope acquires a leading posiQon in
the Shelf Miocene sub-‐salt play
Shelf Miocene ExploraAon Limited by Seismic Clarity
• Early sub-‐salt seismic has difficulty with
GoM shelf • Play limited by drilling depth capabiliWes
Seismic Advancements
• New Reverse Time MigraWon (RTM) more accurately images sub-‐salt
• RTM and other technologies proven successful in sub-‐salt deepwater GoM, Brazil, West Africa, & Canada