Corporate Presentation January 2013 - Niko Resources
Corporate Presentation January 2013 - Niko Resources
Corporate Presentation January 2013 - Niko Resources
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<strong>Corporate</strong> <strong>Presentation</strong><br />
<strong>January</strong> <strong>2013</strong>
Forward Looking Statements<br />
FORWARD-LOOKING STATEMENTS AND INFORMATION<br />
This document contains statements about expected future events, anticipated financial and operating results, anticipated terms of the offering and related transactions, estimations of<br />
reserves and resources, future net revenues associated therewith and future development costs that constitute "forward-looking statements" and "forward-looking information" under<br />
applicable securities laws. Forward-looking statements and information give <strong>Niko</strong>'s current expectations or forecasts of future events and are based information presently available. You<br />
can identify these statements by forward-looking words such as "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential", "predict", "scheduled",<br />
"forecast", "budget" and similar expressions, or statements that events or conditions "will", "would", "may", "could", "should" or "might" occur and similar words. In addition, statements<br />
that <strong>Niko</strong> makes in this document that are not statements of historical fact may also be forward-looking statements and information. Forward-looking statements and information are not<br />
guarantees of <strong>Niko</strong>'s future performance and involve risks, uncertainties and assumptions that may cause actual results to differ materially from the expectations <strong>Niko</strong> describes in its<br />
forward-looking statements and information. For example, some risks, uncertainties and assumptions include: risks associated with international operations such as political, economic,<br />
social and other uncertainties; risks associated with exploring for, developing, producing and transporting oil and natural gas; liabilities stemming from damage to the environment,<br />
accidental or otherwise, compliance with, and liabilities under, environmental laws and regulations; imprecision in estimating capital expenditures as well as potential delays or changes<br />
in plans regarding exploration and development projects or capital expenditures; price volatility in the spot and forward markets for commodities; fluctuations in the international currency<br />
markets and in the rates of exchange of the currencies of Canada, the United States and the other countries in which <strong>Niko</strong> carries on business; changes in national and local<br />
government legislation in Canada, the United States or any other country in which <strong>Niko</strong> currently or may in the future carry on business; changes in taxation; discrepancies between<br />
actual and estimated production and between actual and estimated reserves and resources; diminishing quantities or grades of reserves; additional funding requirements and access to<br />
capital resources; the outcome of outstanding legal claims in foreign jurisdictions; competition; loss of key employees; accidents (and the risk of inadequate insurance or inability to<br />
obtain insurance to cover these risks); labour disputes; and defective title to claims or property or contests over claims to oil and gas properties. You should not place undue reliance on<br />
forward-looking statements or information. <strong>Niko</strong> does not promise to notify you if it learns that its assumptions or projections are wrong for any reason except as required under<br />
applicable securities laws. <strong>Niko</strong> does not undertake any obligation to update forward-looking statements or information, whether as a result of new information, future events or<br />
otherwise except as required under applicable securities laws. You should be aware that all the risk factors discussed in this document could cause <strong>Niko</strong>'s actual results to differ from<br />
any forward-looking statements or information and these variations could be material.<br />
Contingent resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or<br />
technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. The contingent resource estimates provided<br />
herein are not currently classified as reserves pending host government approval of development plans. Contingent resources entail additional commercial risk than reserves and<br />
adjustments for commercial risks have not been incorporated in the estimate of contingent resources set forth herein. There is no certainty that it will be commercially viable to produce<br />
any portion of the resources. Boe and Mcfe may be misleading, particularly if used in isolation. A conversion ratio of 1 bbl:6 Mcf is based on an energy equivalency conversion method<br />
primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In addition, future net revenues do not represent fair market value.
Production<br />
Contingent Resource<br />
Exploration<br />
Operations<br />
<strong>Niko</strong> is engaged in production, development and exploration of natural gas and oil in<br />
India, Bangladesh, Indonesia, Trinidad, Madagascar, and Pakistan<br />
2
Production Assets – D6 Block, India<br />
D6 Block<br />
• D1 D3 field<br />
• Work underway for:<br />
• water handling and<br />
compression project<br />
• MA field<br />
• Work underway for:<br />
• compressor modification<br />
• additional gas well<br />
• workovers<br />
3
Production Assets – Bangladesh<br />
Block 9<br />
� Bangora field<br />
• Workovers planned<br />
for March/April<br />
<strong>2013</strong><br />
• Compression<br />
onstream by 2014<br />
4
Development Opportunities - D6 Block<br />
MA Field<br />
Satellite Area<br />
• FDP approved<br />
• G2 well<br />
successfully drilled<br />
R1 Cluster<br />
• FDP to be<br />
submitted by<br />
March<br />
Other Satellite Area<br />
• Development<br />
concept being<br />
finalized<br />
Potential for ~100 MMcf/day (<strong>Niko</strong> share) of additional production<br />
5
Development Opportunities – NEC-25 / Block 5(c)<br />
NEC-25 Block, India<br />
• FDP to be<br />
submitted by<br />
March <strong>2013</strong><br />
Block 5(c), Trinidad<br />
• FDP submitted for<br />
approval<br />
Potential for ~100 MMcf/day (<strong>Niko</strong> share) of additional production<br />
6
(Bcfe)<br />
<strong>Niko</strong> 2P & Contingent <strong>Resources</strong> as at March 31, 2012<br />
1P reserves 2P reserves<br />
Potential to increase 2P reserves by 160% upon booking of contingent resources<br />
7
Exploration D6 Block – MJ1 Prospect<br />
8
Exploration D6 Block – MJ1 Prospect (cont.)<br />
Oil & Gas Prospect<br />
• Expected to spud<br />
in March/April<br />
• Targeting<br />
Mesozoic synrift<br />
clastic reservoir,<br />
similar to MA oil<br />
and gas field<br />
Gross Prospective <strong>Resources</strong><br />
Low Best High<br />
Gas (Bcf) 262 819 2562<br />
Liquids (MMbbl) 18 56 176<br />
9
Exploration Indonesia<br />
22 PSCs<br />
7 JSAs in progress<br />
30MM gross acres<br />
10
Innovative Sea Seep Technology<br />
• Creates science advantage<br />
• 1,000,000 km2 multibeam program completed<br />
11
Innovative Sea Seep Technology<br />
Hydrocarbon seepage supports chemosynthetic<br />
communities on the seafloor, which increases the<br />
backscatter.<br />
With high resolution multibeam, we can identify<br />
potential seep targets on the seafloor.
Ocean Monarch<br />
13
Ocean Monarch<br />
14
Exploration Indonesia Kofiau<br />
22 PSCs<br />
7 JSAs in progress<br />
30MM gross acres<br />
15
Kofiau Block<br />
Ajek-1 well<br />
• Sub-commercial deepwater<br />
oil and gas discovery<br />
• Confirmed presence of<br />
reservoir and hydrocarbon<br />
system in new basin<br />
• Results will allow improved<br />
reservoir analysis assessing<br />
thin bed pay potential and<br />
improved prediction of<br />
locations with thicker sand<br />
packages<br />
• Additional prospectivity<br />
remains to be evaluated in<br />
Pliocene clastic section and<br />
in Miocene carbonate play<br />
16
Exploration Indonesia West Papua<br />
22 PSCs<br />
7 JSAs in progress<br />
30MM gross acres<br />
17
West Papua IV Block<br />
West Papua IV Block<br />
• 6,389 km2<br />
• Multiple large oil and gas<br />
prospects<br />
• Rig moving to Cikar-1<br />
location<br />
18
West Papua IV Block – Cikar-1 Prospect<br />
Cikar-1 well<br />
• Projected drilling<br />
time of 60-70<br />
days<br />
• Targeting large<br />
Miocene<br />
carbonate<br />
prospect<br />
Gross Prospective<br />
<strong>Resources</strong>, MMBOE<br />
Low Best High<br />
119 380 1216<br />
19
West Papua IV Block – Untung-1 Prospect<br />
Untung-1 prospect<br />
• Possible next well after<br />
Cikar-1<br />
• Projected drilling time of<br />
25-30 days<br />
• Targeting Pliocene clastic<br />
prospect
Exploration Indonesia Cendrawasih<br />
22 PSCs<br />
7 JSAs in progress<br />
30MM gross acres<br />
21
EN 700 Top of secondary objective<br />
Cendrawasih Block – Elang-1 Prospect<br />
Elang-1<br />
Cendrawasih Block<br />
• 4,991 km2<br />
Elang-1 prospect<br />
• Possible next well<br />
after Cikar-1<br />
• Projected drilling<br />
time of 60-70 days<br />
• Targeting Oligo-<br />
Miocene Clastics
Exploration Trinidad<br />
• 8 Blocks, 9 PSC’s<br />
covering 2.5 million<br />
acres<br />
NCMA 2<br />
NCMA 3<br />
Central Range<br />
Guayaguayare<br />
Block 2(ab)<br />
M/G<br />
Block<br />
Block 4(b)<br />
Block 5(c)<br />
23
Venezuela Border<br />
NCMA2 & NCMA3 Blocks<br />
Block NCMA 2<br />
Block NCMA 3<br />
• Multiple<br />
Pliocene and<br />
Miocene<br />
prospects<br />
• Adjacent to<br />
existing gas<br />
fields and<br />
infrastructure<br />
24
NCMA-2 Proposed Prospects<br />
25
NCMA-2 Miocene Fans Amplitude<br />
NCMA 2
Liquidity and Capital Spending<br />
<strong>Niko</strong> is confident that cash generated from producing properties<br />
and proceeds from farm-outs, asset dispositions and other<br />
arrangements will provide appropriate ongoing liquidity to fund<br />
F<strong>2013</strong> and F2014 business plan<br />
• Operating cash flow and cash on hand sufficient to fund capital<br />
spending in F<strong>2013</strong>, net of proceeds of farm-outs and other<br />
arrangements<br />
• Planned capital spending in F2014 focused on exploration<br />
activities in Indonesia and Trinidad, and development activities<br />
in India and Bangladesh<br />
• Level of capital spending flexible with ability to defer work<br />
commitments<br />
27
Liquidity and Capital Spending - Continued<br />
• Borrowing base for credit facility could increase significantly<br />
due to:<br />
• Resolution of D6 natural gas pricing issue, and/or<br />
• Booking of current contingent resources as proved reserves<br />
• Potential capital spending in F2014 for development<br />
opportunities in India and Trinidad expected to be funded<br />
primarily from credit facility<br />
28
Conclusion<br />
• Near term reserve growth from discoveries already made at<br />
D6, NEC25 and Block 5c<br />
• Exploration potential on 43 million gross acres<br />
• High Impact prospects up to 50 over next 60 months, 6 over<br />
the next 8 months<br />
29
<strong>Corporate</strong> Information<br />
Edward Sampson<br />
President, Chief Executive Officer<br />
William Hornaday<br />
Chief Operating Officer<br />
Glen Valk<br />
Vice President Finance,<br />
Chief Financial Officer<br />
Edward Sampson<br />
Chairman<br />
Jim Cummings<br />
Director<br />
William Hornaday<br />
Director<br />
Conrad Kathol<br />
Director<br />
Wendell Robinson<br />
Director<br />
Murray Hesje<br />
Advisor<br />
KPMG<br />
Auditors<br />
Computershare<br />
Transfer Agent<br />
Edward Sampson<br />
Glen Valk<br />
Investor Relations<br />
TSX: NKO<br />
How to reach Us<br />
<strong>Niko</strong> <strong>Resources</strong> Ltd.<br />
4600, 400 3 rd Avenue SW<br />
Calgary, Alberta Canada T2P 4H2<br />
Email: niko@nikoresources.com<br />
www.nikoresources.com<br />
30
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