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Four exploration permits: three onshore and one offshore in the Taranaki Basin
Onshore: 100% interest in three petroleum exploration permits, totalling 990 sq km (244,510 acres)
Offshore: 100% interest in Taranaki exploration permit of 232.5 sq km (57,452 acres)
Present best estimate prospective resources1 in the Taranaki permit areas exceed 1.92 TCF gas & 126 mmbbl oil/condensate
Management team have considerable experience in this area and the geotechnical team were involved in a number of discoveries in the region
Unique joint venture arrangement with MethanexOverview of Kea Petroleum plc
1. P50 Recoverable
Home to Australia & New Zealand’s largest onshore oil field (McKee -55 MMbbl), two large onshore gas-condensate fields (Kapuni & Mangahewa), and a large nearshore gas-condensate field (Pohokura) adjacent to Kea acreage
Oil discoveries have been recently developed offshore with the Tui & Maari fields along with development of the Kupe & Pohokura gas-condensate fields
There are 18 onshore & 6 offshore fields producing from a number of stratigraphic levels
Total proven producing reserves are in excess of 1 billion barrels oil equivalentTaranaki Basin: A Proven Hydrocarbon Province
Oil strike April 2012 – Awaiting flow testing
Targeting Mount Messenger sands – shallow and deemed lower risk than Mauku-1 and Douglas-1
Significant number of similar discoveries in Taranaki, e.g.
Copper Moki discovery (NZEC)
Cheal field (TAG Oil) both within 5,000m of Puka
Combined market cap of NZEC and Tag Oil US$833m
Well costs – c. US$2.4mm including testing
New seismic acquired in February funded jointly with Methanex assisted targeting of well
24 mmbbls of oil have been produced from the adjacent Waihapa/Ngaere field, from a fractured limestone reservoir; with individual wells producing at up to 10,000 bbls/d
Douglas drilled from Wingrove site which has full production facilities
Well costs – c. US$6mm including testingDouglas-1: PEP 51153
No vertical exaggeration
PEP 51153 & 51155: Eastern margin Tikorangi Lmst sub-thrust prospects and leads
Kea controls same 50km of eastern margin on trend Tikorangi limestone play
3D seismic programme in Q2/2012 now deferred until 2013 awaiting seismic vessell
Potential to discover up to 300 million barrels of oil
Oil shows in offset wells
7km offshore, and drillable from onshore by EWD well
Considered one of Company’s main assets
(Sw on Sl)
(Pluto 1258m Sand)
Top Murihiku Basement
Kea entered into a strategic alliance with Methanex during 2011
Farm-in and offtake agreement
Methanex Corporation (Canada) is the world's largest distributor, and a major manufacturer, of methanol – 15% world market share*
Methanex New Zealand Limited owns two methanol plants in the province of Taranaki which are working at reduced capacity due to lack of gas. These plants have a maximum potential demand for gas of 90bcf/annum
Strategic Alliance – Highlights
*Source: Methanex CIBC World Markets presentation January 2010
Possible upside potential recoverable resource > 1 TCF of gas and 50 million barrels of condensate / oil
Test Mangahewa sands
Deep drill to 3,400m in drill hole late Q4 2012 or early Q1 2013
Remote coastal location
Access to national pipeline system 25km south east of prospect. A 70km subsea pipeline direct to Methanex’s Motonui plant also feasible if upside discovery is made.
Site preparation – challenging location – 20km of public road and 4km of new road access to be prepared
Well costs – c. US$15mm before testing to be met 50/50 by Methanex
Source: MBA Petroleum Consultants as adapted by Kea inhouse staff
KEA & NZEC acreages are much more lightly drilled than TAG acreage
KEA has no holdings in the non producing East Coast Basin where both TAG and NZEC are active
KEA has 10 times more net prospective acreage in Taranaki than TAG, and twice that of NZEC
KEA has 1/7 the Market Cap of TAG and 1/5 that of NZEC
KEA has bigger prospects in Mauku and Douglas and Huinga than either TAG or NZEC
Investment in KEA has greater upside potential than either TAG or NZECListed Companies TAG OIL, NZEC & KEA
All figures as at 22 May 2012
*Thornaby Limited is a company wholly owned by the trustees of the IR Gowrie-Smith Settlement of which I R Gowrie-Smith is a beneficiary
** Ocarina Investments is a company wholly owned by D J Lees Family Settlement of which D J Lees is a beneficiary
Exciting 2012 drilling programme already successful
Puka 1: Oil Strike awaiting flow testing
Douglas 1: Oil shows completion and testing
Farm-in and offtake agreed with Methanex
At a transformational point
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