Investor Presentation

April 2013
Investor Presentation
►
US$230 million farmout secures funding for two deep water wells on Mazagan permit, offshore
Morocco
►
Pura Vida free carried on drilling of the 1.5 billion barrel (350 mmbo net) Toubkal prospect in Mazagan
permit in Q1 2014
►
20 mmbo gross P50 contingent resource at Loba M 1 discovery in Nkembe block offshore Gabon
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A developing portfolio of highly prospective acreage
MAZAGAN
► Multi-billion barrel resource potential
► Free carried two well program, first well
Q1 2014
► 1 in 3 chance of success
► Significant drilling activity offshore
Morocco commencing Q4 2013
► Producing oil prone basin
► 80% interest and Operatorship
►
Existing oil discoveries including
20 mmbo P50 contingent resource
► Sub-salt and pre-salt plays
NKEMBE
GABON
2
Snapshot
Issued Capital
Ordinary shares (ASX: PVD)
20c partly paid shares (paid to 1c)
Incentive options (35c)
Incentive options (25c)
Management Incentives
Incentive options (40c)
72.0m
21.9m
3.0m
1.5m
RESEARCH COVERAGE
Broker
Analyst
Date
Hartleys
Peter Gray
+61 8 9268 2826
7 Mar 2013
Fosters
Haris Khaliqi
+61 2 9993 8152
4 Feb 2013
Argonaut
Dave Wall
+61 8 9224 6864
15 Jan 2013
Krista Walter
+61 7 3334 4775
22 Jan 2013
6.2m
Market Capitalisation
Fully diluted at $0.45/share
$47.1m
RBS Morgans
Cash
Payment on completion of farmout
Unpaid Capital
Short-Term Loan (payable)
$1.4m
$14.5m
$8.0m
$6.0m
Directors
Damon Neaves, Managing Director
David Ormerod, Technical Director
Bevan Tarratt, Non-Executive Chairman
Net Resources
Mazagan permit, Morocco
– mean prospective resource 1,614 mmbo*
Nkembe block, Gabon
– P50 contingent resource
16 mmbo**
* Based on 23% interest post-farmout
** 80% net interest
Head Office
Level 1, 89 St Georges Tce
Perth WA 6000
t: +61 8 9226 2011
f: +61 8 9226 2099
e: [email protected]
Melbourne Office
Level 2, 480 Collins St
Melbourne VIC 3000
t: +61 3 8610 6680
f: +61 3 8610 6334
3
Track record
►
Strong delivery since inception with all stated milestones achieved in 2012
CORPORATE MILESTONES
2011
2012
2013
SCORECARD
Q4
MAZAGAN MILESTONES
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Award of Mazagan
IPO
Drop core program
« CONFIRMATION OF OIL IN DROP CORES
Seismic reprocessing
« IMPROVE RISKING & ADDITIONAL RESOURCES
Review of prospectivity
« UPGRADE TO 5.3 BILLION BARRELS (NET PURA VIDA)
Acquisition of new project
« DIVERSIFY PORTFOLIO
Farmout process - EZDataRoom
« SECURE FARMOUT FOR DRILLING
►
Early-entry strategy has generated significant value through farmout
►
Management team has demonstrated its ability to execute strategy
►
2013 will see … (1) Significant drilling activity in Morocco leading into Mazagan wells

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(2) Value-creating work program on Nkembe block
(3) Continuation of growth strategy through new ventures
4
2013 look ahead
►
Multiple value-adding catalysts in near term …
5
Management team
Damon Neaves
David Ormerod
MANAGING DIRECTOR

Formerly BDM for Tap Oil

Over 25 years industry experience

Led Business Development, Commercial
and Legal teams during 8 year tenure at
Tap


Several major acquisitions, many
involving entry into new countries:
Thailand, Ghana, Indonesia, Brunei,
Philippines, Australia & New Zealand
Participated in several major discoveries
over his career: Mad Dog, Atlantis and
Neptune (deep water Gulf of Mexico
(GoM)) and Stybarrow (NW Shelf)

Responsible for Karoon Gas’ entry into Brazil
which saw a period of dramatic growth in
shareholder value
Experience with BHPBP, Woodside, Stirling
and Tap in areas as diverse as the GoM,
West Africa, SE Asia and the NW Shelf

Established highly profitable domestic
gas business

Upstream project management
experience

Legal/corporate advisory background
Bevan Tarratt
TECHNICAL DIRECTOR


NON-EXECUTIVE CHAIRMAN

Accounting industry background
focused on small/mid caps

Founding partner of Hemisphere
Corporate

Equity markets experience with Patersons
Securities

Managed IPOs, secondary raisings and
re-structuring of numerous listed
companies

Director of a number of Australian public
companies
Leads a strong technical team at
Pura Vida
►
Pura Vida has assembled a management team with extensive commercial, technical and A&D expertise with a track record of exploration
success and value accretive acquisitions
►
Seeking early entry opportunities with exceptional potential for growth in value
6
Management team (cont)
Simon Horan

Extensive operational experience in
South Africa, China and Australia

Brings development and appraisal
experience from geological
perspective having worked both
carbonate and clastic reservoir systems

Extensive petrophysical experience with
tight and conventional reservoirs and
imaging of reservoir facies

Experience with BHPBP, Schlumberger
and Molopo
►
Phil Ormerod
Andrew Morrison
SENIOR GEOLOGIST
DRILLING MANAGER
NEW VENTURES MANAGER

25 years’ experience in the oil and gas
industry in both a technical and
managerial capacity

Significant exposure to exploration,
appraisal and development
experience from an operating capacity

Held senior technical roles with Cue
Energy Resources Limited, Karoon Gas
Australia Ltd and BHP Billiton Petroleum

Over 25 years experience in the oil &
gas sector

Managed drilling operations in
Tunisia, Gabon, Angola, S.E. Asia and
Australia

British Gas worldwide testing engineer

Experience with BG, Texaco, Shell
and other oil majors
Operational and technical team utilises the latest techniques and cutting edge technologies
7
MAZAGAN PERMIT, MOROCCO
Mazagan Permit, Offshore Morocco
Farmout secures funding for drilling program targeting multiple plays – Pura Vida free carried

Secures up to US$215 million of exploration
expenditure with Pura Vida free carried, including
a firm commitment to fund and drill two wells

PXP is a capable and experienced operator

Drilling will test multiple play types, including the
giant Toubkal prospect that has a mean resource
potential of 1.5 billion barrels

Farmout conditional on regulatory approval by
no later than 17 September. Regulator requesting
ministerial approval with process expected to
complete by mid-year
CAP JUBY OILFIELD

Payment of US$15 million on closing
8
2013/14 drilling program offshore Morocco
► 9-10 wells to be drilled offshore Morocco (including Pura Vida’s two wells)
► Up to 3 rigs operating concurrently
► Drilling activity and news flow to commence Q4 2013
► Any discovery will have positive implications for Mazagan
► Pura Vida’s first well in Q1 2014 will target the giant
Toubkal prospect - 1.5 billion barrels (mean)
► Multiple targets/wells = high chance of finding oil
9
Seismic amplitudes on Toubkal
WATER
AMPLITUDE SCALE
OIL
SALT
LOW
(WATER)
MODERATE
(OIL)
GAS
HIGH
(GAS)
SEISMIC AMPLITUDE MAP
RESERVOIR
150 metre gross column
OIL/WATER CONTACT
► High quality 3D seismic
► Direct Hydrocarbon Indicators (DHIs)
► Amplitude response conforms to structural closure
SEISMIC SECTION
10
Significant prospectivity
Data source: DeGolyer & MacNaughton

Independent resource estimates prepared by
recognised industry leader, DeGolyer & MacNaughton
PROSPECTIVE OIL RESOURCES (RECOVERABLE)
TRENDS



MEAN (mmbbl)
Pg*
Miocene (including Toubkal)
3,724
31-34%
Drilling inventory consists of multiple prospects with a
chance of success ranging from 19% to 34%
Lower Cretaceous toe thrust
691
19%
Lower Cretaceous inversion anticline
2,600
19%
NPV/barrel of around US$20
TOTAL
7,017
Avg. 26%
NET TO PURA VIDA (23%)
1,614
Avg. 26%
Three independent play types with total mean
prospective resource of 1.6 bn bbl (net to Pura Vida)
45%
CHANCE OF SUCCESS
40%
35%
Toubkal
30%
25%
20%
15%
10%
5%
0%
0
200
400
600
800
1000
1200
1400
1600
1800
Zagora
Amchad
Tafraoute
Amtoudi East
Amtoudi West
Toubkal
Jbel Ayachi
Jbel Musa
Jbel Lakhdar
Jbel Talmest
Jbel Aroudane
Jbel Tadrart
Jbel Azavza
GROSS PROSPECTIVE RESOURCE (MEAN)
11
NKEMBE BLOCK, GABON
Nkembe block
Pura Vida’s second offshore oil project in a proven oil producing basin

80% interest and Operatorship in proven oil producing basin

1,000 km2 of existing 3D seismic

Exposes Pura Vida to a wide variety of exploration plays
associated with salt basins

Major operators in country include: Total, Shell, Tullow,
Petrobras, Perenco & Ophir

Low risk strategy to generate value from Nkembe with several
near-term catalysts:
-
resource certification
-
detailed review of historical seismic and drilling
-
new multi-azimuth 3D seismic
-
drilling
12
Mature, oil prone basin

Surrounded by producing oil fields

Potential for near-term appraisal of 20 mmbo
LANCON
Loba M 1 discovery

Significant upside in pre-salt and sub-salt oil
plays

Gabon and Angola are conjugate to Brazil
where several billion barrels have been
discovered in pre-salt in recent years

HJN
Pura Vida will use modern seismic technology to
unlock new potential in a proven basin
MOUVENI
CAPELAN

LOBA
Recent discoveries in Gabon made by Mitsubishi
in post-salt and Harvest in pre-salt
20 MMBO DISCOVERY
► Located in shallow water with nearby infrastructure means the economics for
commercialisation of the Loba M 1 oil field are very attractive
13
20 mmbo Loba M 1 discovery
LOBA RESERVOIR
► DISCOVERED IN 1976
► BATANGA FORMATION
(PRODUCING NEARBY)
PETROPHYSICAL LOG
► DRILLED ON EDGE OF
STRUCTURE – NOW DEFINED
ON 3D
► 18.4% POROSITY
► 33 API OIL RECOVERED
LOBA M 1
OIL COLUMN
► 150 METRE GROSS COLUMN/
46 METRE NET
► 20 MMBO (P50) GROSS
RECOVERABLE CONTINGENT
RESOURCE
14
Loba M 1 Discovery in post salt

Loba M 1 tested the geology above the salt

The diagram (right) illustrates the Loba M 1 well
path which found a shallow oil zone

Deeper sub-salt reservoirs are known in the area
with traps interpreted to exist below the salt.
There are two major salt plays in Gabon, the
sub-salt (shallow) and pre-salt (deeper)

The pre-salt play has delivered multi-billion
barrels in Brazil and Angola

Pre-salt reservoirs are in production onshore
Gabon and Harvest recently announced a presalt discovery offshore

Sub-salt oil plays have produced billions of
barrels in the Gulf of Mexico and West Africa
46 metre oil
Sub-salt
potential
traps
Pre-salt
potential
traps
15
Why invest?
High-impact, fully funded drilling program

Pura Vida free carried for 2 wells, first well Q1 2014 targeting 350 mmbo net to Pura Vida

Significant value in success case

One in three chance of success of Toubkal prospect (Q1 2014)
Near-term catalysts

Completion of Mazagan farmout and receipt of US$15 million (Q2 2013)

Announcement of timing and targets of high impact Mazagan drilling program

Drilling on neighbouring blocks offshore Morocco with activity commencing Q4 2013

Certification of resource potential of Nkembe block
Leverage & Upside

Tight capital structure (72 million shares on issue) provides investors with significant leverage in success case

Mazagan prospective resources of 1.6 billion barrels (net) with further resources to be reported for Nkembe block

Strategy successful in generating significant value for Mazagan in 2012 – to be replicated on Nkembe block in 2013

Low risk strategy to generate value from Nkembe block
Growth and diversification

Industry experienced board and management team with a demonstrable track record of growth in shareholder value through
exploration success and value accretive acquisitions

High quality exploration portfolio spanning frontier acreage with significant resource potential to acreage in a proven, oil
prone basin
16
Disclaimer
Certain statements contained in this presentation, including information as to the future financial or operating performance of Pura Vida Energy NL (Pura Vida) and
its projects, are forward-looking statements. Such forward looking statements:

are necessarily based upon a number of assumptions and estimates that, while considered reasonable by Pura Vida, are inherently subject to significant
technical, business, economic, competitive, political and social uncertainties and contingencies;

involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results
reflected in such forward-looking statements; and

may include, among other things, statements regarding targets, estimates and assumptions in respect of production, prices, operating costs, results, capital
expenditures, reserves and resources and anticipated flow rates, and are or may be based on assumptions and estimates related to future technical,
economic, market, political, social and other conditions.
Pura Vida disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
All forward-looking statements made in this presentation are qualified by the foregoing cautionary statements. Investors are cautioned that forward-looking
statements are not guarantees of future performance and accordingly investors are cautioned not to rely on forward-looking statements due to the inherent
uncertainty therein.
Persons compiling information about hydrocarbons
The information in the presentation has been prepared using the internationally recognised Petroleum Resources Management System to define resource classification and volumes by Mr David Ormerod BSc. Geology
(Hons) a Geologist who has over 25 years experience in petroleum geology, geophysics, prospect generation and evaluations, prospect and project level resource and risk estimations. Mr Ormerod is a full time employee
of the Company and has consented to inclusion of the resource estimates in this report in the form and context in which it is included. The resource estimates above are in accordance with the standard definitions set out
by the Society of Petroleum Engineers, further information on which is available at www.spe.org
END