Kina Petroleum Limited (ASX: KPL) - PDF document

Page 1 of 2 Kina Petroleum Limited (ASX: KPL) Company Description: Kina Petroleum Limited is a Papua New Guinea (PNG) - registered company that was established in 2009 to apply for and acquire oil and gas exploration and production concessions in PNG. It has an impres sive portfolio of nine tenements including participation in two petroleum retention licences (PRLs). Kina has a carried interest in several licences through active and collaborative farm - in partners. URL for 2013 Annual Report: http://www.kinapetroleum.com/investor - info.html Operations: The most advanced tenement in Kina’s portfolio is a 15% participating interest in PRL 21 (Elevala, Ket u and Tingu fields) which is located in Western Province. The PRL 21 partners aim to submit a Petroleum Development Licence (PDL) in 1H 2014 and reach FID during 20 14. The licence has 2C contingent resources1 of 40 mmbbls of condensate and 795 bcf of gas , of which 6 mmbbls and 119 bcf are net to Kina. Additionally, P50 prospective resources1 of approximately 400 bcf of gas and 20 mmbbls of condensate exist in the recent Ting u discovery. The company is also operationally active in its exploration licences . In PPLs 337 & 437 – where an interest in these licences has recently been farmed out to Heritage Oil plc – seismic acquisition and drilling activity, respectively, are expected to commence around mid year. In PPLs 435 & 436, Aerogravity and Aeromagnetic surveys are currently being undertaken in preparation for planning future seismic acquisition programs. In PPL 340, an Aeromagnetic and Aerogravity survey has recently been completed, and evaluation of the prospects and leads in PPLs 338 & 339 (located adj acent to the Elk/Antelope discovery) continue. 1 Per Kina Petroleum Limited release to the ASX on 16 October 2012, and Horizon Oil Limited release of 12 October 2012. Recent Developments: Kina was recently awarded a 25% participating interest in PRL38 (Pandora) located offshore in the Gulf of Papua. Gas was fou nd in the l ate 1980s via the Pandora - 1 discovery and the licence has an estimated 2C contigent resource2 of “792” bcf – of which 198 bcf would be attributable to Kina. The PRL 38 partners all aim to commercialise the Pandora and neighbouring fields as soon as practi cable, either as part of an aggregation of as a standalone project. 2 Based on the latest publicly available information which is the Oil Search Limited 2012 Annual Report which shows a 2C cont ingent resource of 191.1 bcf for their then 24.0909% interest in the PRL 1 licence. Resources / Reserves Estimates: (resources companies only) Existing gas resourc es in PRL 21 2 (net 2C contingent resource of 120 bcf and an additional net P50 prospective resource of 60 bcf). Net Page 2 of 2 liquids resource in PRL 21 comprises a net 2C contingent resource of 6 mmbbls and P50 Prospective resource of around 3 mmbbls . Confirmation of the PRL 38 resource would more than double the company’s existing gas resources . Significant Contractual Arrangements:  PPL 337 (Ramu Sub Basin) Kina is currently 100% owner, with Heritage Oil plc farming in to drill 2 wells to earn 70% and operatorship  PPL 338 (E Papua Basin – onshore) Kina is 100% owner with Oil Search undertaking seismic and geophysics to earn 30%, and up to a possible 70% through committing to drilling a well and carrying Kina up to a capped amount.  PPL 339 (E Papua Basin – onshore) Kina is 100% own er with Oil Search undertaking seismic and geophysics to earn 30%, and up to a possible 70% through committing to drilling a well and carrying Kina up to a capped amount.  PPL 340 (E Papua Basin – onshore) Kina is 100% with Oil Search and has recently comp leted an aerogravity survey  PPL 435 (Western Papuan Basin) - Kina is 50% and operator with Cott Oil and Gas Limited. Currently undertaking an aerogravity survey  PPL 436 (Western Papuan Basin) - Kina is 50% and operator with Cott Oil and Gas Limited. Curr ently undertaking an aerogravity survey  PPL 437 (Western Papuan Basin) - Kina is 80% and operator with Cott Oil and Gas Limited20%. Kina recently farmed in Heritage Oil plc who will earn 30% by undertaking seismic acquisition planned for 2014, and a poss ible further 20% and Operatorship by carrying Kina through a well.  PRL 21 – Kina is 15% participating partner  PRL 38 – Kina is 25% participating partner Future Outlook: Commercialisation of the resource in PRL 21 via a liquids stripping project is the company’s key near term development priori ty. Field production life is estimated at 20 years. This will provide Kina with a cash flow enabling it to un dertake further exploration activity with the objective of capitalising on the significant upside that exists within the exploration portfolio as well as looking at new pr ojects. Gas from PRL 21 will be commercialised through a Western Province aggregatio n project, a component of which may be the gas from the recently acquired interest in the PRL 38 licence. Presentation by: Richard Schroder Managing Director and CEO Richard Schroder has a Bachelor of Science degree, majoring in Geophysics, f rom the University of Sydney. He is experienced in Australian and international oil and gas exploration commencing with Conoco in the North Sea in 1975. Richard’s experience extends to both UK and Norwegian sectors of the North Sea, Africa, Indonesia, PNG , NZ and onshore and offshore Australia. Richard has over 20 years’ experience as an operator in the lowland and highland jungles of PNG and has managed junior companies such as Sydney Oil Company as well as majors such as Santos in the capacity of Explora tion Manager, South East Asia. Richard has drilled 14 wells in PNG and Papua Province Indonesia, resulting in 1 commercial oil field, and 5 oil and or gas intersections, and helped pioneer the boutique seismic technology which was responsible for considera ble savings and drilling success. Contact Details: Correspondence Address: Level 6, 9 - 13 Young St. Sydney 2000 Phone Number: +61 2 82472500 Email Address: tahina.booth@kinapetroleum.com Webs ite: www.kinapetroleum.com This profile is provided by the presenting company; ASX takes no responsibility for the information included. Participation in this event should not be taken as an endorsement by AS X of the company.