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2TERRA NOVA CORPORATE PRESENTATIONTSX-V : TGC | OTCQX: TNVMF
This presentation contains “forward-looking information” which may include,
but is not limited to, statements with respect to the future financial or
operating performance of Terra Nova Energy Ltd. (the “Company”). Often, but
not always, forward-looking information can be identified by the use of words
such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”,
“forecasts”, “intends”, “anticipates”, or “believes” or variations (including
negative variations) of such words and phrases, or statements that certain
actions, events or results “may”, “could”, “would”, “might” or “will” be taken,
occur or be achieved.
Forward-looking information involves known and unknown risks and
uncertainties that may cause the actual results, performance or achievements
of the Company to be materially different from any future results, performance
or achievements expressed or implied by the forward-looking information.
Such factors include, among others, general business, economic, competitive,
political and social uncertainties; the actual results of current exploration
and drilling activities; actual results of reclamation activities; changes in
labour costs or other exploration costs; conclusions of economic evaluations;
changes in project parameters as plans continue to be refined; future prices
of hydrocarbons; accidents, labour disputes and other risks of the oil and gas
exploration industry; delays in obtaining governmental approvals or financing
or in the completion of wells or integration with hydrocarbon collection
infrastructure; and other acts of God or unfavourable operating conditions
and losses; political instability, insurrection or war.
Forward looking information is based on a number of material factors and
assumptions, including the determination of reserves or resources, if any; the
results of exploration and drilling activities, the availability and final receipt
of required approval, licenses and permits; that sufficient working capital
is available to complete proposed exploration and drilling activities; that
contracted parties provide goods and/or services on the agreed time frames;
the equipment necessary for exploration is available as scheduled and does
not incur unforeseen break downs, that no labour shortages or delays are
incurred and that no unusual technical problems occur. While the Company
considers these assumptions may be reasonable based on information
currently available to it, they may prove to be incorrect. Actual results may
vary from such forward-looking information for a variety of reasons, including
but not limited to risks and uncertainties discussed above.
The Company intends to discuss in its quarterly and annual reports referred
to as the Company’s management’s discussion and analysis documents,
any events and circumstances that occurred during the period to which
such document relates that are reasonably likely to cause actual events or
circumstances to differ materially from those disclosed in this presentation.
New factors emerge from time to time, and it is not possible for management
to predict all of such factors and to assess in advance the impact of each
such factor on the Company’s business or the extent to which any factor,
or combination of factors, may cause actual results to differ materially from
those contained in any forward-looking information.
FORWARD LOOKING STATEMENTS
3TERRA NOVA CORPORATE PRESENTATION
TERRA NOVA’S MISSION
Focused on exploring for and developing low cost, high margin oil and gas opportunities in safe jurisdictions within the Pacific Rim Region to service its growing demand for energy
4TERRA NOVA CORPORATE PRESENTATIONTSX-V : TGC | OTCQX: TNVMF
TERRA NOVA ENERGY LTD.
RECENTTRADING $.17
Closing Price(3/11/2015)
$.06 - $.2552 - Week Range
73kAvg. Daily Volume3 - Month
3 All information as of March 11, 2015 unless otherwise stated.
CAPITALSTRUCTURE
ENTERPRISEVALUE
87.5MillionShares Out
7.4MillionOptions Out
1.9MillionWarrants Out
$14.9MillionMarket Cap
$0MillionConvertible Debt
$3,085,000Cash as of 2/23/2015(Unaudited)
CORPORATE OVERVIEW: TSX-V: TGC | OTCQX: TNVMF
5TERRA NOVA CORPORATE PRESENTATION
INVESTMENT HIGHLIGHTS
STRONG MANAGEMENTwith expertise in natural resource exploration development and financing as seen with the recent success of Pacific LNG
HIGH MARGIN CASH FLOWSgenerated in numerous recent western flank discoveries have had a return on investment of under one year
UNDER EXPLOREDflanks of the Cooper Basin are the prime focus of new oil and gas exploration
RIGHT LOCATION Central to Australia’s extensive pipeline infrastructure and in close proximity to Southeast Asian Markets
6TERRA NOVA CORPORATE PRESENTATION
THE TERRA NOVA TEAM
HENRY ALDORFChairman + Chief Executive Officer
Mr. Aldorf has 37 years of experience in the petroleum and chemicals industry and is currently President of Pacific LNG Operations Ltd., which recently landed a deal with Oil Search Ltd. for $900M USD plus further contingent payments
MATT ANDERSONChief Financial Officer
Chartered Accountant and Senior Consultant with Malaspina Consultants Inc., a private company that provides financial services to public companies, previously the CFO of I-Minerals Inc., Search Minerals Inc. and Dynamic Oil & Gas Exploration Inc.
CHAS LANECountry Manager, Australia
Petroleum geologist, with 30 years experience in exploration and production operations around Australia including the discoveries and development of the Mirage, Growler and Snatcher Oilfields in Cooper/Eromanga Basin
NICO CIVELLIVP Finance + Director
Independent financial advisor who provides financial consultancy services by working closely with several leading European and North American asset managers, which specialize in the natural resources
ISTVAN GYORFIExploration Manager, Australia
Geophysicist and Reservior Engineer with extensive exploration experience and track record in discovering hydrocarbons. Most recently at Pacific Rubiales Corp. in Columbia and other companies including MOL, PDVSA and GDF Suez
TECHNICAL + CAPITAL MARKET EXPERIENCE
CARLO CIVELLISenior Advisor
Founder of Pacific LNG Operations Ltd. and Clarion Finance Pte. Ltd. with over 30 years of experience in the venture capital and natural resources sector, having financed at least a dozen early stage investments which developed into billion dollar market cap companies
7TERRA NOVA CORPORATE PRESENTATIONTSX-V : TGC | OTCQX: TNVMF
WHY AUSTRALIA?
STRATEGIC LOCATIONIdeally situated to supply China, Japan and other Southeast Asian countries
POLITICAL STABILITYAustralia has the lowest risk of political instability in the region and 4th lowest in the worlds
BUSINESS FRIENDLYOf the 34 OECD countries, Australia has the fewest restrictions on product markets and least government ownership of business
GROWTH MARKET#1 ranked country to replicate unconventional oil success of the US with an estimated 1.7 trillion barrels of oil equivalent (BOE)1
1Lux Research Inc. January 14, 2014 Source: Government of South Australia, DMITRE
OIL AND GAS PIPELINE NETWORK
8TERRA NOVA CORPORATE PRESENTATION
INCENTIVES AND LICENSING
ATTRACTIVE FISCAL TERMS• Federal Royalty 10%• Native Trust Royalty 1%• Corporate Tax Rate 30%
DATA ACCESSAll geological data available in the public domain after two years
PETROLEUM EXPLORATION LICENSEMaximum Area: 10,000 sq km per licenseInitial Term of Tenement: 5 yearsRelinquishment End of Term: 50%
Renewal Term: 5 years
PETROLEUM PRODUCTION LICENSEMaximum Area: 100 sq km per licenseInitial Term + 1st Renewal Term: N/A
Industry Respondent2013 Fraser Institute Global Petroleum Survey
Favourable fiscal terms, exploration is incentivized, regulations transparent. Ease of access to authorities and technical data. ”
“
9TERRA NOVA CORPORATE PRESENTATIONTSX-V : TGC | OTCQX: TNVMF
THE COOPER+EROMANGA BASINS
COOPER BASIN OIL & GAS SUCCESS RATESJANUARY 2002 - DECEMBER 2013
NEW ENTRANTS (AFTER 2002)
Source: Government of South Australia, DMITRE
Source: Government of South Australia, DMITRE
AUSTRALIA’S MOST PROLIFIC ONSHORE PRODUCTION
LIGHT + SWEETOil recovered from the basin consists of light, sweet crude oil (>40 API) which receives premium pricing
100 OIL FIELDSand 200 gas fields discovered since the first commercial discovery in 1963
INFRASTRUCTURE5,600 km network of pipeline infrastructure connecting a central processing plant in the heart of the basin to 3 major seaports
ACTIVE AREAFour producers in the Cooper Basin, including industry leaders:
• Beach Energy • Drillsearch Energy • Senex Energy
COOPER BASIN OIL SUCCESS RATE
EXPLORATION WELLS DRILLED
COMMERCIAL SUCCESS RATE
TECHNICAL SUCCESS RATE
APPRAISAL AND DEVELEOPMENT WELL DRILLED
COMMERCIAL SUCCESS RATE
215 40% 46% 102 93%
OIL
DIS
COVE
RIES
OIL EXPLORATION WELLS
1978
2000
2013
OIL
PRI
CES
(US$
)
150
125
100
75
50
25
0
120
100
80
60
40
20
00 50 100 150 200 250 300 350 400 450 500 550 650
10TERRA NOVA CORPORATE PRESENTATIONTSX-V : TGC | OTCQX: TNVMF
AUSTRALIAN ASSETS OVERVIEW
20.66% OWNERSHIPof two licenses located on western flank of Cooper/Eromanga Basins
Holloman Energy* 48.50%Perseville Investing Inc. 30.83%
3,444 SQ KMor 850,000 acresPEL 112 1,086 sq km (268k acres)PEL 444 2,358 sq km (582k acres)
UNDER EXPLORED6% of PEL 112 and PEL 444 have been shot with 3D seismic leaving a substantial exploration upside
*Current farm-in agreement with Holloman and Perseville: Holloman and Perseville are required to transfer an aggregate 5.83% to Terra Nova on both Petroleum Exploration Licenses (PELs) for each well drilled to a maximum ownership of 49.83%.
Perseville is not required to transfer its earning contribution to Terra Nova in the event that it pays its proportionate share of the drill costs. If Perseville elects to fund its share of all five wells, Terra Nova would obtain a 41.05% ownership.
11TERRA NOVA CORPORATE PRESENTATIONTSX-V : TGC | OTCQX: TNVMF
PEL 444
SIXTEEN DRILL LOCATIONShave been recently identified by the reprocessed Wingman 3D seismic in the Birkhead, Hutton and Namur formations
LOCATIONLicense is geologically similar to the Charo and Snatcher oil fields located 21 km south of PEL 111
3D SEISMIC80 sq km of 3D seismic was acquired in July 2013 leading to the interpretation that the Jurassic Oil Fairway possibly extends into PEL 444
NEARBY SUCCESSSenex drilled 11 wells in the Snatcher oil fields which each produce 100 - 900 barrels of oil per day (Bopd)1
1 DMITRE and Senex Energy data; initial production rates
12TERRA NOVA CORPORATE PRESENTATIONTSX-V : TGC | OTCQX: TNVMF
PEL 112
LOCATIONTargets on the license are similar geologically to the producing Butlers, Perlubie and Parsons oil fields located to the north
3D SEISMIC127 sq km of 3D seismic was acquired in August 2012 in addition to reprocessing 665 sq km of 2D seismic, which generated 40 drill targets
1,000 BARRELSPrinciple reservoir target is the Namur sandstone that can produce at rates in excess of 1000 barrels of oil per day
NEARBY SUCCESSProduction in Beach Energy’s Bauer oil field in PEL 91 near record high at 2.4 million BOE in Q1-FY2015
1Beach Energy, November 2014
ON TREND AREA PRODUCTION IN DISCOVERIES WITHIN THE PAST 10 YEARS
Butlers Oil Field (2009) 1 Mmbbls; 1,425 Bopd
Perlubie Oil Field (2009) 101,000 Bbls; 560 Bopd
Parsons Oil Field (2008) 1.7 Mmbbls; 2,775 Bopd
Source: Discovery Energy Corporation, 2012
13TERRA NOVA CORPORATE PRESENTATIONTSX-V : TGC | OTCQX: TNVMF
- Field makes up 66% of Senex’s ($448 million mkt cap) total oil production*
- Field located 15 km south of the TGC’s Wingman 3D Seismic
0 2000 4000 6000
Scale = 1:136902
8000 10000 m
0 2000 4000 6000
Scale = 1:136902
8000 10000 m
0 2000 4000 6000
Scale = 1:136902
8000 10000 m
CHARO-SNATCHER PROVEN AREAS: Seismically Constrained + Well Control
Approximately 316 hectares - Estimated 19.8 MMBO Recoverable
WINGMAN CHANNELS SUMMED: Seismically Constrained Areas Similar to Charo-Snatcher
Approximately 1480 hectares
NEARBY SUCCESS - THE CHARO-SNATCHER OIL FIELDS
*Senex Energy Limited, Annual Report 2014
STRUCTURAL MAP OF 3D SURVEYS SHOWING SEISMICALLY MAPPABLE CHANNEL SYSTEMS
14TERRA NOVA CORPORATE PRESENTATIONTSX-V : TGC | OTCQX: TNVMF
SEVEN GROUP HOLDINGS BUYS 13.8% OF BEACH ENERGY LTD.
RECENT DEVELOPMENTS
RECENT ACQUISITIONMedia group Seven Group Holdings has began actively acquiring Australian-focused petroleum oil and gas companies
On February 2, 2015, they secured a relevant interest of 13.79% in Beach Energy Limited (ASX: BPT), a major producer in the Cooper/Eromanga Basins
NEW ACQUISITION OF PEL 570 NEAR TERRA NOVA’S PEL 444 BLOCK
PEL 111
PEL 104
NEW ACCESS GRANTEDto New Standard Energy in one of the few remaining substantial acreage positions within the Cooper Basin
PROSPECTIVE POTENTIAL 2,400 sq km block on trend of a proven, producing petroleum system and pipeline infrastructure
15TERRA NOVA CORPORATE PRESENTATION
INVESTMENT SUMMARY
STRONG MANAGEMENTwith expertise in natural resource exploration development and financing as seen with the recent success of Pacific LNG
HIGH MARGIN CASH FLOWSgenerated in numerous recent western flank discoveries have had a return on investment of under one year
UNDER EXPLOREDflanks of the Cooper Basin are the prime focus of new oil and gas exploration
RIGHT LOCATION Central to Australia’s extensive pipeline infrastructure and in close proximity to Southeast Asian Markets
Kip Ferguson , CEO of Magnum Hunter Resources
January 2014
Within 12 months, you’re not going to have the ability to find a deal, or find acreage, in the Cooper Basin. ”
“
SOUTH AUSTRALIA OIL AND GAS SALES
Source: Government of South Australia
16TERRA NOVA CORPORATE PRESENTATIONTSX-V : TGC | OTCQX: TNVMF
CORPORATE HEAD OFFICE880 - 580 Hornby StVancouver, BC V6C 4B6Canada
INVESTOR RELATIONSTel: +1 604-200-1039E-mail: [email protected]
CORPORATE COUNCIL: Northwest Law GroupAUDITORS: KPMG
www.terranovaenergyltd.comTSX-V: TGC I OTCQX: TNVMF