For personal use only

Size: px

Start display at page:

Download "For personal use only"

Gabriella Cross
5 years ago
Views:

ANTARES ENERGY LIMITED A.C.N. 009 230 835 Level 2, 5 Ord Street Telephone: + 61 8 9324 2177 West Perth WA 6005 Facsimile: + 61 8 9324 1224 Website:www.antaresenergy.

IN THE PERMIAN BASIN, WEST TEXAS The Board of Directors advise that they have executed a Committed Letter of Offer for a 200,0000,000 USD Term Debt Facility to support the development of Oil and Gas

1 ANTARES ENERGY LIMITED A.C.N Level 2, 5 Ord Street Telephone: West Perth WA 6005 Facsimile: Website: PO Box 690 West Perth WA 6872 ASX/NEWS RELEASE 31 October ,000,000 USD TERM DEBT FACILITY, EXECUTED COMMITTED LETTER OF OFFER TO SUPPORT THE DEVELOPMENT OF OIL AND GAS PROPERTIES LOCATED IN THE PERMIAN BASIN, WEST TEXAS The Board of Directors advise that they have executed a Committed Letter of Offer for a 200,0000,000 USD Term Debt Facility to support the development of Oil and Gas properties located in the Permian Basin, West Texas. Antares announced its Permian Basin focus at the beginning of the Second Quarter after having successfully sold the Eagle Ford Shale projects, Yellow Rose and Bluebonnet, for 200,000,000 USD resulting in a Net Profit after income tax of 75,379,000 AUD. Since commencing the Permian Basin focus Antares has undertaken 15 wells during the last two Quarters creating a new record level of drilling activity for the company. Antares will now undertake a not less than 30 well drilling program which will be completed by the 31 st December By the conclusion of 2012, Antares will have drawn down 50,000,000 USD to facilitate this fully funded drilling program, which will consist of 24 wells in Southern Star and 6 wells in Big Star and Northern Star combined. The conclusion of the Southern Star drilling program will result in the entire Southern Star project being held by production. The Macquarie Bank Limited, 36 month facility attracts an interest rate of LIBOR % per annum, payable on a quarterly basis in arrears. Antares intends to draw upon the facility in multiples of 10,000,000 USD as the not less than 30 well drilling program progresses. The Board of Directors would like to thank Macquarie for their professionalism, time efficiency and vision in providing this Term Debt Facility which will be utilized to enhance; reserves, production, revenue and earnings per share. The Board looks forward to a long and mutually rewarding relationship. The Southern Star 24 well continuously committed single rig drilling program is structured as below, based on a 1,935,000 USD completed cost per well.

2012 Drilling Program Well Name AEC WI AEC $ Well No. 1 0.48633363 $941,056 Well No. 2 0.97540054 $1,887,400 Well No. 3 0.19159646 $370,739 Well No. 4 0.97266727 $1,882,111 Well No. 5 0.

2 2012 Drilling Program Well Name AEC WI AEC $ Well No $941,056 Well No $1,887,400 Well No $370,739 Well No $1,882,111 Well No $370,739 Well No $1,829,350 Well No $1,935,000 Well No $1,882,111 Well No $941,056 Well No $1,887,400 Well No $1,882,111 Well No $941,056 Well No $1,882,111 Well No $1,829,350 Well No $941,056 Well No $1,935,000 Well No $1,887,400 Well No $1,829,350 Well No $1,824,061 Well No $1,824,061 Well No $1,887,400 Well No $941,056 Well No $1,829,350 Well No $941,056 Total/Average $36,301,379 In keeping with previous guidance management is committed and financially well equipped to achieve its self imposed commitment to shareholders of realizing a share price of $1.00 by 31 st December 2011, $1.50 by 31 st December 2012 and $2.00 by 31 st December Antares has bought back and cancelled in excess of 37,000,000 shares at an average price of approximately 41.5 cents. Management will continue its capital management inclusive of the share buy back for the ongoing wealth creation of all shareholders and does not currently see the need to issue any further shares during the next three years of growth. Please find below for informational purposes the previously released slides inclusive from our Good Oil Conference presentation addressing the Southern Star Desired Development Plan which is now fully funded as well as the Southern Star Average Well Economics and associated reference material. For further information please contact: James Cruickshank Chairman & CEO + (61) (0) or + (1) Or visit our website:

3 For personal use RIU only GoodOilConference 6-7 September 2011

Antares Energy s Permian Position PROJECT LOCATION CURRENT NET ACRES # NET WELL LOCATIONS EUR/WELL 1P NET RESERVES 2P NET RESERVES 3P NET RESERVE POTENTIAL Howard

, TX 12,400 310* 125 175 MBOE Not Booked Not Booked 29-41 TOTALS 29,880 800+ 125 220 MBOE 12.

Matt Gentry, who is a full-time employee of Antares Energy. Mr.

4 Antares Energy s Permian Position PROJECT LOCATION CURRENT NET ACRES # NET WELL LOCATIONS EUR/WELL 1P NET RESERVES 2P NET RESERVES 3P NET RESERVE POTENTIAL Howard Co., TX 3, * 220 MBOE Dawson Co., TX 14, MBOE Not Booked Not Booked Dawson Co., TX 12, * MBOE Not Booked Not Booked TOTALS 29, MBOE NOTE: The above table is based on information which has been compiled by Antares Energy s Chief Operating Officer, Mr. Matt Gentry, who is a full-time employee of Antares Energy. Mr. Gentry exceeds the professional qualifications of reserve estimators as set forth by the SPE/WPC/AAPG/SPEE Petroleum Resource Management System (SPE-PRMS). Mr. Gentry is qualified in accordance with ASX Listing Rule 5.11 and has consented to the form and context in which this statement appears. * Southern Star locations based on 20 acre spacing, while Big Star and Northern Star are based on 40 acre spacing. Slide 15

Southern Star SUMMARY 3,920 Gross Acres 1P Net Reserves of 12.6 (40 ac spacing) 2P Net Reserves of 27.0 (20 ac spacing) Current Gross Production 850 BOEPD Current Net Monthly Revenue Approx. $1.

$2011 (post-acquisition) 4 wells fracture stimulated, 1 well awaiting frac, 2 wells drilling/to be drilled. Lonestar No. 1 reached 24-hr max production rate of 148 boepd.$

5 Southern Star SUMMARY 3,920 Gross Acres 1P Net Reserves of 12.6 (40 ac spacing) 2P Net Reserves of 27.0 (20 ac spacing) Current Gross Production 850 BOEPD Current Net Monthly Revenue Approx. $1.2MM Final adjustment settlement occurred August 5 th 10,300 wells: Spraberry, Dean, Wolfcamp, Cline, Strawn, Mississippian & Woodford 1 rig currently drilling UPDATE 7 Antares wells to be drilled in 2011 (post-acquisition) 4 wells fracture stimulated, 1 well awaiting frac, 2 wells drilling/to be drilled. Lonestar No. 1 reached 24-hr max production rate of 148 boepd. Permanent production facilities are currently being installed at Cottonwood No. 1 & Smith No. 1. Cottonwood No. 1 & Smith No.1 to date have achieved 24-hr max production rates of over 300 boepd and 150 boepd respectively. Near term milestone of > 1,000 boepd gross to be achieved shortly. All land to be HBP in 2012 Slide 16

6 Southern Star Well Specific Results Three wells in the Southern Star project area have 1.) greater than 12 months of production history and 2.) were completed with modern hydraulic fracturing procedures. Below is a table showing monthly production averages for each of those wells as well as monthly production averages from an updated Southern Star type curve. Aloe Vera No. 1 Nichols No. 1 Pecan No. 1 SOUTHERN STAR TYPE CURVE OIL GAS GOR BOE OIL GAS GOR BOE OIL GAS GOR BOE OIL GAS GOR BOE Time (month) (bopd) (mcfpd) (scf/bo) (boepd) (bopd) (mcfpd) (scf/bo) (boepd) (bopd) (mcfpd) (scf/bo) (boepd) (bopd) (mcfpd) (scf/bo) (boepd) , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , AVG , , , , The Lonestar No. 1 was recently announced to have a 1 st months average production of 81 boepd* and a 2 nd months average production of 109 boepd*. * Gas production was estimated using a GOR of 3,500 scf/bo. This is due to commingling of all Lonestar lease gas coming from the Lonestar Nos. 1, 2, 3 & 4. All gas is being sold and receiving a premium because of high liquids content ( barrels of NGLs per 1 Mmcf). Slide 17

7 Average Monthly Production (BOEPD) Southern Star Type Curve Antares' Southern Star Type Curve vs. Pioneer Spraberry Type Curves* TYPE CURVE PARAMETERS Di = 99.5% Qi = 132 bopd B = 1.8 GOR = 4,000 scf/bo Terminal decline = 4% Terminal rate = 4 bopd Time (Months) PIONEER 110 MBOE PIONEER 140 MBOE SOUTHERN STAR 220 MBOE SOUTHERN STAR ANNUAL EFFECTIVE DECLINE 1 st Year 73% 2 nd Year 30% 3 rd Year 19% 4 th Year 14% 5 th Year 11% Completion thru Partial Wolfcamp Completion thru Full Wolfcamp 6 th Year 9% 7 th Year 8% 8 th Year 7% 9 th Year 6% 10 th Year 6% * From Pioneer s August 2011 Investor Presentation Slide 18

8 Average Monthly Production (BOEPD) Southern Star Type Curve (Continued) 350 Southern Star 220 MBOE Type Curve with Production PIONEER 110 MBOE PIONEER 140 MBOE SOUTHERN STAR 220 MBOE Aloe Vera No. 1 Nichols No. 1 Pecan No. 1 Lonestar No. 1 Avg. Southern Star Well Time (Months) Slide 19

17 Wells Used to Construct Type Curve* * Actual data from Southern Star wells suggests outperformance of area wells used to construct the type curve.

9 17 Wells Used to Construct Type Curve* * Actual data from Southern Star wells suggests outperformance of area wells used to construct the type curve. Antares will continue to use the lower, area-wide type curve until sufficient data is available to generate a potentially higher Southern Star specific type curve. Slide 20

10 Southern Star Average Well Economics AVERAGE SOUTHERN STAR WELL Oil (bopd) Gas (mcfpd) Oil Revenue Gas Revenue Total Revenue 25% Royalties OPEX Severance Tax Profit $160,404 $27,334 $187,738 $(46,935) $(3,000) $(7,071) $130, $332,649 $88,465 $421,114 $(105,278) $(3,000) $(16,453) $296, $269,097 $111,869 $380,966 $(95,242) $(3,000) $(15,576) $267, $237,650 $106,613 $344,263 $(86,066) $(3,000) $(14,196) $241, $173,922 $80,878 $254,800 $(63,700) $(3,000) $(10,550) $177, $174,531 $67,086 $241,618 $(60,404) $(3,000) $(9,795) $168, $162,402 $59,177 $221,579 $(55,395) $(3,000) $(8,932) $154, $147,121 $61,116 $208,237 $(52,059) $(3,000) $(8,513) $144, $147,644 $60,475 $208,119 $(52,030) $(3,000) $(8,495) $144, $125,206 $49,107 $174,313 $(43,578) $(3,000) $(7,082) $120, $91,102 $35,996 $127,098 $(31,774) $(3,000) $(5,168) $87, $99,918 $34,351 $134,269 $(33,567) $(3,000) $(5,379) $92,322 $2,121,647 $782,468 $2,904,115 $(726,029) $(36,000) $(117,211) $2,024,876 SUMMARY The above was calculated on a flat $95/bo and $5/MMBTU basis. 1 Mcfg of Southern Star gas contains 1.4 MMBTUs. Operating costs are held flat at $3000/month Texas severance tax is 4.6% on oil revenues and 7.5% on gas revenues Profit is burdened with 25% royalties. Annual gross profit of $2.02MM USD. CONCLUSION At a cost of $1.935MM USD to drill and complete, Southern Star wells achieve payout in less than a year. Slide 21

Similarity of Southern Star Well Logs Aloe Vera-1 Cottonwood-1 Lonestar-1 Pecan-1 Nichols-1 Smith-1 GR (GAPI) GR (GAPI) GR (GAPI) GR (GAPI) GR (GAPI) GR (GAPI) The above cross-section shows the

11 Similarity of Southern Star Well Logs Aloe Vera-1 Cottonwood-1 Lonestar-1 Pecan-1 Nichols-1 Smith-1 GR (GAPI) GR (GAPI) GR (GAPI) GR (GAPI) GR (GAPI) GR (GAPI) The above cross-section shows the highly correlable productive interval from those wells with greater than 12 months production history and the first three wells Antares has drilled and completed in the Southern Star project area. Slide 22

12 Daily Production (boepd) Southern Star Desired Development Plan A single rig continuously drilling for the next four years beginning in Rig will be able to complete approximately 2 wells/month or 100 wells over four years Gross Daily Production (boepd) Time (months) NOTES: Uses Southern Star type curve yielding 220 MBOE EUR and all type curve parameters shown on Slide 18. Results in over 5,000 gross boepd/3,750 net boepd at the drilling programs conclusion at the end of year five. Slide 23

13 Monthly Cash Flow (USD) Monthly Cash Flow From Drilling Program $10,000,000 Monthly Cash Flow 2012 Drilling Program $8,000,000 $6,000,000 $4,000,000 $2,000,000 $ $(2,000,000) $(4,000,000) Time (months) NOTES: Cash flow is inclusive of $1.935MM USD well cost, royalties, operating costs and severance taxes. Gross cash flow peaks at approx. $8.0MM USD per month coinciding with the cessation of the drilling program. The project, inclusive of the cost of drilling program being $3.87 MM USD per month, becomes cash flow positive in month 13. Slide 24

14 Cumulative Cash Flow (USD) Cumulative Cash Flow From Drilling Program $900,000,000 Monthly Cumulative Cash Flow $800,000,000 $700,000,000 $600,000,000 $500,000,000 $400,000,000 $300,000,000 $200,000,000 $100,000,000 $- $(100,000,000) Time (months) NOTES: Minimum cumulative cash flow reaches ($15.0) MM USD at the end of month 12. The drilling program reaches payout in month 27. Twenty-year cumulative gross cash flow is $640 MM USD. Cumulative cash flows are inclusive of $1.935MM USD well cost, royalties, operating costs and severance taxes. Antares blended working interest in the Southern Star project area is approximately 75%. Slide 25

FOR IMMEDIATE RELEASE. Lonestar Resources, Ltd. Announces Eagle Ford Shale Acquisitions

FOR IMMEDIATE RELEASE. Lonestar Resources, Ltd. Announces Eagle Ford Shale Acquisitions FOR IMMEDIATE RELEASE Lonestar Resources, Ltd. Announces Eagle Ford Shale Acquisitions February 24 th, 2014- Fort Worth, Texas-based Lonestar Resources, Ltd. ( Lonestar, ASX: LNR) is pleased to announce