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PETSEC ENERGY LTD
ACN 000 602 700
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22 May 2014
Petsec Energy Ltd
2014 AGM Presentation
Petsec Energy Ltd (ASX: PSA / OTC ADR: PSJEY)
Attached is a copy of the presentation to be delivered today by Petsec Energy Ltd.’s
Chairman and Managing Director Mr. Terry Fern at the 2014 Annual General Meeting
(“AGM”) of members of Petsec Energy Ltd, held at the Museum of Sydney, corner
Bridge and Phillip Streets, Sydney.
A copy of the presentation will also be made available on the Company’s website,
www.petsec.com.au.
For further information, please contact:
Paul Gahdmar
Company Secretary & Group Financial Controller
Petsec Energy Ltd
Tel: 612 9247 4605
Fax: 612 9251 2410
Level 13, Gold Fields House, 1 Alfred Street, Sydney NSW 2000, Australia
PO Box R204, Royal Exchange NSW 1225, Australia
Telephone (61 2) 9247 4605 Facsimile (61 2) 9251 2410
Company information is available on: www.petsec.com.au
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Petsec Energy Ltd
Annual General Meeting 2014
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Petsec Energy Ltd
Annual General Meeting 2014
Forward Looking Statement Disclaimer
This presentation contains predictions, estimates and other forward looking statements that are subject
to risk factors associated with the oil and gas industry. Although the company believes that the
expectations reflected in these statements are reasonable, it can give no assurance that its expectations
and goals will be achieved. Important factors that could cause actual results to differ materially from
those included in the forward looking statements include, but are not limited to, commodity prices for oil
and gas, currency fluctuations, the need to develop and replace reserves, environmental risks, drilling
and operating risks, risks related to exploration and development, uncertainties about reserve estimates,
competition, loss of market, government regulation, economic and financial conditions in various
countries, political risks, project delay or advancement, and approvals and cost estimates.
All references to dollars in this presentation are to US currency, unless otherwise stated.
The reserves assessment follows guidelines set forth by the Society of Petroleum Engineers –
Petroleum Resource Management System (SPE-PRMS). The U.S. oil and gas reserves estimates used
in this presentation were compiled by Mr. Ron Krenzke, Executive Vice President of Petsec Energy Inc.,
who is a qualified person as defined under ASX Listing Rule 5.41 and has consented to the use of the
reserves figures in the form and context in which they appear in this presentation.
The estimates of oil and gas reserves provided within this presentation together with the required
statements and consent were initially contained within the market announcement given to ASX on 21
February 2014.
The Company confirms that it is not aware of any new information or data that materially affects the
information included within that announcement, and that all the material assumptions and technical
parameters underpinning the estimates therein continue to apply and have not materially changed.
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Contents
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Petsec Energy Corporate Profile
o
Operations
o
Capital Structure
o
Board / Management
Petsec Energy Oil & Gas Assets
o
USA Conventional: Production / Exploration
o
USA/Canada Unconventional: Shale Oil Exploration
o
Yemen Conventional: Development / Exploration
2013 Key Achievements
o
Corporate
o
Operations
o
Financials
Reassessing our Strategy for Growth
o
2011 – 2013 Plan
o
Change in strategy mid 2013
o
2014 Objectives / Strategy
2014 Exploration & Development Programme
Annual General Meeting 2014
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Annual General Meeting 2014
Petsec Energy
Corporate Profile
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Petsec Energy Ltd
Annual General Meeting 2014
Petsec Energy Corporate Profile
Petsec Energy is an independent oil and gas exploration and production company listed on the
Australian Stock Exchange with operations in the shallow waters of the Gulf of Mexico and
onshore Texas and Louisiana, USA, and onshore Yemen.
Objective: Build a mid-tier (> $300 million) E&P company through successful exploration
Strategy: Concentrate on large (> 50 Bcfe) high impact exploration, mainly onshore

Conventional: Gas/Condensate; Oil
USA
o Operated in USA Gulf of Mexico and Louisiana since 1991
o Drilling Success: 99 wells / 78 successful / 79% success
o Current producing 2P Reserves as of 1/1/14: 7.2 Bcfe* / PV10 US$16.5 million
o Net cash 30/4/14: US$27.1 million
o 8 prospects: target sizes 20 – 200 Bcfe gross
Yemen
o Agreed to acquire 21.25% participating interest in Block 7 (March 2014) – subject to approvals
o Undeveloped oil discovery and high potential oil prospects in large lease area (5000 sq. km)
o 8 prospects / leads: target sizes 2 – 900 MMbbl gross

Unconventional: Shale Oil – USA/Canada
o Early entry, large leasehold strategy began in 2011 following GoM drilling moratorium.
o Drilled two wells (one vertical & one horizontal) in 2012/2013 – completion of wells did not result in
economic oil flow rates, earned an average 25% W.I. in 11,360 acres (2,827 net acres to Petsec)
o Due to high cost and lack of early production success activity suspended mid-2013
* Calculated using deterministic method and conversion to Bcfe was calculated using ratio of six thousand cubic feet of natural gas to one barrel of oil
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Annual General Meeting 2014
Petsec Energy Corporate Profile
Capital Structure at 19 May 2014
Capital Structure
Market Listing
Shares / Options on issue
Market capitalisation
Cash at 30/4/14
Net oil & gas reserves (2P) as of 1/1/14
PV10 reserves (2P) as of 1/1/14
ASX: PSA / OTC ADR: PSJEY
231.2 million / 0.3 million
A$20.6 million
US$27.1 million
7.2 Bcfe
US$16.5 million
PSA Share Price vs. S&P/ASX200 Energy Index (XEJ)
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Petsec Energy Ltd
Annual General Meeting 2014
Petsec Energy Corporate Profile – Board of Directors
Strengthening the Board of Directors
Appointed two U.S. based non-executive directors to the Board in May 2013
Alan Baden and Mark Lober bring a wealth of US commercial and technical E&P and capital markets
experience to the Board.
Alan Baden,
Non-Executive Director

Over 30 years experience
in the U.S. oil & gas
industry
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Juris Doctor Degree from
Case Western Reserve
University, and a Bachelor
of Science (Economics)
Degree from the University
of Pennsylvania
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Ex Partner at Vinson &
Elkins.

Current Senior
Commercial Lawyer with
Thompson & Knight
Mark Lober,
Non-Executive Director
David Mortimer AO,
Non-Executive Director
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Over 35 years experience in the
U.S. oil & gas industry
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Over 35 years experience in
corporate finance
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Master of Science (Geophysics)
Degree from the Boston College,
and a Bachelor of Science
(Geology) Degree from the State
of New York at Brockport
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Bachelor of Economics Degree
(First Class Honours), University
of Sydney
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Ex Senior Geophysicist,
Exploration Manager and New
Ventures Manager with a number
of U.S. entities including Amoco
Production Company, Standard
Oil Production Company,
Amerada Hess Corporation.

Ex CEO of TNT Limited Group
and Chairman of Leighton
Holdings, Chairman of Australia
Post.

Current Chairman of Opera
Australia, Crescent Capital
Partners Limited, Buildcorp
Advisory Board, Defence
Industry Innovation Board
Terry Fern,
Chairman & Managing Director
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Over 35 years experience in
petroleum & minerals
exploration, development and
financing
Bachelor of Science Degree,
University of Sydney
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Petsec Energy Corporate Profile – U.S. Management Team
Strengthening the North American Business
The Company sought and added a local experienced and successful E&P leader to
strengthen the existing management team of Ross Keogh and Ron Krenzke.
Richard (“Dick”) Smith brings a high level of technical and commercial expertise and experience, and a
wealth of relationships and E&P ideas which we expect to generate significant growth in the value of the
Company.
Dick Smith
Chief Executive Officer of
Petsec Energy Inc.

Over 35 years experience in the U.S. and
international oil & gas industry

Master of Science (Geology) from the University
of Tennessee, Knoxville, Tennessee and a
Bachelor of Science (Geology) from SUNY at
Brockport, Brockport, New York

Ex Amerada Hess Corporation, Amoco
Production Company, Pedernales Production
LLC, Houston Energy LLC, Prime Natural
Resources (formerly F-W Oil Interests, Inc.), and
F-W Oil Exploration LLC/F-W Oil Trinidad LLC
Ross Keogh
President of Petsec Energy Inc. &
Group Chief Financial Officer
Ron Krenzke
Executive Vice President Exploration of
Petsec Energy Inc.

Over 30 years of experience in the oil
& gas industry

40 years of experience in the oil & gas
industry
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Bachelor of Economics Degree,
Macquarie University
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Bachelor of Science Degree
(Geophysics), Texas A&M University

Ex Total Oil Company & Bridge Oil
Limited

Ex Mobil, Amerada Hess, VP
Exploration Gryphon Exploration
Company.
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Petsec Energy
Oil & Gas Assets
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Petsec Energy Oil and Gas Assets
Conventional: USA : Gulf of Mexico and Gulf Coast, Louisiana
Four producing oil and gas fields and 2P reserves of 7.2 Bcfe as of 1 January 2014 +
New discovery May 2014 – ASF No. 4 well, Jeanerette Field
 Gulf of Mexico is a prolific oil and gas producing region – more than 31 million acres are
currently leased for oil and gas development. Almost 6 million of those acres are
producing oil and natural gas 1
ASF #4
1
Sourced from BOEM website – www.boem.gov/Gulf-of-Mexico-Region
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Petsec Energy Oil and Gas Assets – Production
Conventional: USA : Gulf of Mexico and Gulf Coast, Louisiana
Main Pass 270
Main Pass 18/19
Chandeleur 31/32
Being decommissioned
Marathon
 Four producing fields + new gas/condensate discovery (ASF No. 4 well)
o Net reserves (2P) as of 1/1/14: *
7.2 Bcfe; PV10: US$16.5 million
o 2013 average daily production (net):
9.62 MMcfpd & 61.65 bopd
o 2013 production (net):
3.6 Bcfe
o 2013 revenue (net):
US$16.4 million
* Does not include ASF No.4 well
 GoM/Gulf Coast prospect inventory:
o 8 mapped high impact prospects
o Prospect mapped gross target sizes: 20 – 200 Bcfe
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Petsec Energy Oil and Gas Assets: Production
Marathon Gas/Condensate Field
Atchafalaya Bay, Louisiana – 8 ft. water depth
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Petsec share: 8% W.I. / 5.84% N.R.I.
Discovered October 2010
Petsec’s largest producing field
4 separate proven gas and condensate
reservoirs identified below 17,000 ft. subsea
drilling depths
 5 wells drilled and producing at gross rates
of ~ 100 MMcfpd + 315 bopd
(~ 6 MMcfpd + 18 bopd, net to Petsec)
 Cumulative field production to 1/1/14:
62 Bcfe gross (3.6 Bcfe, net to Petsec)
 Remaining field 2P reserves at 1/1/14:
87 Bcfe gross (5.1 Bcfe, net to Petsec)
Marathon rig & production facilities
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Petsec Energy Oil and Gas Assets: Production
Main Pass Block 270
Gulf of Mexico, USA – 215 ft. water depth
 Petsec share: 22.5% W.I. / 18.75% N.R.I.
 Discovered in 2003 / Acquired by Petsec in
2007
 3 producing wells
 ~ 11,500 ft. reservoir depth
 Recent production rates:
~ 7.5 MMcfpd + 200 bopd gross
(1.4 MMcfpd + 38 bopd, net to Petsec)
 Field currently shut-in due to work underway
on downstream, third party facilities
 Cumulative production to 1/1/14:
~ 22.4 Bcfe gross (4.4 Bcfe, net to Petsec)
 Estimated field reserves (2P) at 1/1/14:
5.9 Bcf + 206 Mbbl gross
(1.1 Bcf + 38.7 Mbbl, net to Petsec)
Main Pass 270 platform
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Petsec Energy Oil and Gas Assets: Production
Jeanerette Field
Adeline Sugar Factory (ASF) No. 4 Discovery Well – May 2014
 Petsec share: 12.5% W.I. / 9% N.R.I
 Petsec’s first conventional exploration well
since Marathon discovery in 2010
 Onshore exploration well located in Jeanerette
Field, St Mary Parish, Louisiana
 Spud date: 12 March 2014
 Drilled to a Total Depth of 15,300 ft.
 Estimated net drilling & completion cost:
US$1.5 million
 Initial production expected June 2014
 Field size - TBD
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Annual General Meeting 2014
Petsec Energy Oil and Gas Assets: Exploration
Prospect Inventory
USA: Prospect mapped gross target sizes: 20 – 200 Bcfe
 8 identified prospects
Onshore - Louisiana
 English Bayou Deep prospect
Gulf of Mexico
 Hummer prospects – Main Pass Blocks
 Bonanza prospects – Breton Sound Blocks 39 and 42
 Gazelle prospect – Main Pass Block 132
 Ship Shoal Block 74
YEMEN: Prospect / lead mapped gross target sizes: 2 – 900 MMbbl
Onshore
 8 identified prospects / leads
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Petsec Energy Oil and Gas Assets: Exploration
Conventional – Farm-in Opportunity
USA: Onshore Louisiana
English Bayou Deep Prospect
 Petsec share: 25% W.I.
 Conventional, high potential oil prospect
in South Louisiana
 3D seismic defined prospect in structural
fault trap
 Prospect located in highly prolific
producing trend
 13,000 ft. total depth
 Petsec net DHC exposure of US$1.32
million
 Productive fields shown in different
colours depending on age of formation
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Petsec Energy Oil and Gas Assets – Exploration
Gulf of Mexico, USA – Internally Generated Exploration Prospects
Hummer Prospect – Main Pass 270
 Petsec share: 22.5% W.I.
 Identified seismic amplitudes in a
structural fault trap
 Water depth 200 feet
 Anticipated spud date of well - late 2014.
 Well cost: US$17.3 million DHC
 Petsec is likely to reduce its current W.I.
to better manage expected high drilling
and development costs.
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Annual General Meeting 2014
Petsec Energy Oil and Gas Assets – Exploration
Gulf of Mexico, USA – Internally Generated Exploration Prospects
Gazelle Prospect – Main Pass 132
 Petsec share: 75% W.I.
 Identified seismic amplitudes
in a structural fault trap
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Petsec Energy Oil and Gas Assets – Exploration
Gulf of Mexico, USA – Internally Generated Exploration Prospects
Bonanza Prospects – Breton Sound Blocks 39 & 42
 Petsec share: (56.25% and 37.5% W.I.)
 Objectives are Tex “W” B sands adjacent to
the Breton Sound Block 41 field which has
produced 30 Bcfg + 900 Mbc
 3 identified structural fault traps
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Petsec Energy Oil and Gas Assets – Exploration
Gulf of Mexico, USA – Internally Generated Exploration Prospects
Ship Shoal Block 74
 Petsec share: 75% W.I.
 Objectives are Tex W through to
and including Cib Op sands
 Identified seismic amplitudes within
a very large structural closure
down to depths of 17,000 ft. +
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Unconventional: Shale Oil – Exploration
North American Shale Plays – Areas Studied by Petsec
Western Canada Sedimentary Basin San Joaquin Basin
Permian Basin
Fort Worth Basin
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Unconventional: Shale Oil – Exploration
Western Canada Sedimentary Basin – Alberta, Canada
Strategy – early mover in a new shale play in JV with a recognised expert in oil shale
and the target shale, objective to acquire significant land position
 Completed 1 year comprehensive geological and
petrophysical study over AMI area of 2 million acres of the
target shale in 2011/2012
 Commenced exploration in Feb 2012. Activity to-date has
earned an average 25% W.I. in 11,360 acres (2,827 net
acres, to Petsec). Leases continue till 2017
 Farm-in on a drill to earn basis over the areas considered
to hold highest potential oil production
 Drilled 2 wells (1 vertical & 1 horizontal) in the target shale
in 2012/2013
 Due to high cost and lack of early production success,
activity suspended mid 2013
 Further participation predicated on advances in horizontal
well completions by other operators in areas nearby to the
Company’s projects – decision not expected until late 2014
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Annual General Meeting 2014
Petsec Energy Oil and Gas Assets
Republic of Yemen: Block 7 (Al Barqa) – Onshore
In addition to strengthening our North American business, the Company has sought
opportunities outside of the U.S. where it can acquire producing reserves or near
development reserves, with associated high potential exploration in large lease
areas.
 In March 2014, the Company entered into an agreement with a wholly owned subsidiary of AWE
Limited to acquire its 21.25% Participating Interest in Block 7, Al Barqa Permit, in the Republic of
Yemen
 Block 7 is an onshore exploration permit covering an area of 5,000 km2, located 340 km East of
Sana’a the capital of Yemen
 Block 7 is operated by Oil Search Limited (34% Participating Interest)
 Contains the Al Meashar oil discovery as well as an inventory of leads and prospects defined by 2D
and 3D seismic surveys with significant oil potential
 Terms of transaction include a cash consideration of US$1 million; the replacement of AWE’s existing
Letter of Credit with the Arab Bank; and working capital adjustments on completion of the transaction
 Completion of transaction is subject to customary approvals from the JV Partners and the state
owned Yemen Oil and Gas Company
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Petsec Energy Oil and Gas Assets
Republic of Yemen: Block 7 (Al Barqa) – Onshore
 On completion of transaction the Participating
Interests (P.I.) in Block 7 will be:
Company
P.I.
Petsec Energy Yemen Ltd
21.25%
Oil Search (ROY) Limited
34.00%
KUFPEC (Aden) Limited
21.25%
Mitsui E&P Middle East B.V.
The Yemen General Corporation
for Oil and Gas
8.50%
15.00%
 Completion of transaction expected to occur in
late 2014 / early 2015
1
Source: AWE Limited
Annual General Meeting 2014
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Petsec Energy Oil and Gas Assets
Republic of Yemen: Block 7 (Al Barqa) – Onshore
1
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Source: Oil Search Limited
Block 7 includes the Al Meashar Oil Discovery and a material prospect and lead inventory which extends the productive
Kuhlan-Basement play which is productive in the adjacent S2 Habban field (OMV) located 14 km to the West of Al
Meashar
Habban Field discovered 2005, OMV stated reserves 1P reserves: 50 MMbbl; 2P: 170 million. Facilities production
capacity - 30,000 bopd, current production - 15,000 bopd
The Basement play is relatively new and has delivered the most recent significant discoveries in Yemen, with significant
remaining potential given the lack of any major exploration activity since the start of the Arab Spring
2014: 5000 sq. km airborne magnetic/gravity survey, planning for a possible EWT at Al Meashar
A 250km 2D seismic survey is planned for acquisition starting in Q4 2014
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Petsec Energy Oil and Gas Assets
Republic of Yemen: Block 7 (Al Barqa), Al Meashar Oilfield – Development
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1
Source: Oil Search Limited
In 2010 the Al Meashar-1 and 2 wells
successfully tested a tilted fault block trap
defined on 2008 3D seismic, and proved oil in
the Kuhlan Sandstone and fractured Basement
over a gross 637m column
Al Meashar-1 DST#1 commingled lower Shukra
carbonates, Kuhlan sandstone and fractured
Basement to deliver a peak flow of 1046 bopd
and 6.36 MMscfpd gas on a 1” choke
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Petsec Energy Oil and Gas Assets
Republic of Yemen: Block 7 (Al Barqa) – Prospectivity
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To date 8 seismically (3D and 2D) defined prospects and leads have been identified including three large tilted
basement fault blocks potentially containing significant volumes of hydrocarbons
Mapped target sizes for each prospect / lead: range from 2 – 900 MMbbl
The largest three structures have been mapped via surface mapping and will be matured by 2D seismic planned for
2014
The prospects have primary objectives in the Khulan-Basement reservoirs productive in the adjacent licences.
Significant potential is also recognised in Cretaceous sands of the Lam and Meem formations which have had
extensive shows in the wells drilled in Block 7 and which have tested oil in the neighbouring Habban Field in Block S2
Exploration 2014: 5000 sq. km airborne magnetic/gravity survey, 250km 2D seismic survey is planned for acquisition
starting in Q4 2014
Habban Field
1
Source: Oil Search Limited
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2013
Key Achievements
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Annual General Meeting 2014
U.S. Natural Gas Price / Natural Gas in Storage
2008 – Current
Henry Hub Gas Price / WTI Oil Price
 Declining gas price 2008-2012: ~ US$8/Mcf in 2008 to low of US$1.80/Mcf in 2012 ,the reason for 2011 – 2013
strategy
 2012 – 2013 very cold winters, reduction in gas in storage, increase in gas price from US$1.80/Mcf to ~ US$4.60/Mcf
at end of Apr 2014
 Increase in gas price reason to return to conventional exploration
 NYMEX 12 and 36 month forward strip price for gas on 19 May 2014: ~ US$4.45/MMbtu and US$4.31/MMBtu
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2013 Key Achievements
2013 Exploration & Development Programme – Scorecard
Conventional
Drill 5th Marathon well – Spud May 2013 & brought into production Sep 2013
Complete Marathon facilities expansion
Bring in partners & permit Petsec GoM prospects for drilling 2014/2015
Identify third party Gulf Coast prospects for 2013/2014 drilling Unconventional
Continue testing Canadian wells to determine commerciality Farm‐out & progress Texas projects
Evaluate non‐operating working interests in proven plays
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Annual General Meeting 2014
2013 Key Achievements
Corporate
 Appointments to strengthen the Board and North American business
o Appointed two U.S. based non-executive directors to the Board in May 2013 –
Alan Baden & Mark Lober
o Appointed a new CEO to the Company’s U.S. subsidiary, PEI in March 2014 –
Dick Smith
 Share Buy-backs
Provided liquidity for those shareholders who did not wish to support the
Company’s revised business strategy and to reduce the significant
administrative & share registry costs associated with minimum holdings
(< A$500 in value)
o Completed an on-market buy-back in November 2013 @ 9.4 cps – 3.2 million
shares acquired for total consideration of A$0.3 million)
o Completed a minimum buy-back in December 2013 @ 9.4 cps – 3.3 million
shares held by 2,217 shareholders acquired for total consideration of A$0.3
million
o Reduced number of shareholders by more than 50%
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2013 Key Achievements
Operations
 2013 Net Production
o 3.6 Bcfe, up 49%
o Average daily net production: ~ 10 MMcfepd
 Marathon Field
o Completed drilling and commenced production for 4th and 5th wells
o Field production increased to a peak rate of ~ 150 MMcfepd (~ 8.8 MMcfepd, net)
o Cumulative field production to 1.1.14: 62 Bcfe, gross / 3.6 Bcfe, net
o Remaining field 2P reserves at 1.1.14:
87 Bcfe, gross / 5.1 Bcfe, net
 Main Pass 270 A-3 well
o Restored production to a peak rate of ~ 8.7 MMcfepd gross / 1.6 MMcfepd, net
 Shale Oil Exploration
o Completed 3 major shale basin studies; Canada and USA
o Acquired leases in Alberta, Canada; drilled 1 vertical science / 1 horizontal well
o Suspended shale oil exploration mid 2013 due to cost and lack of early success
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2013 Key Achievements
Financials
 Cash at 31/12/13: US$25.4 million
 No Debt
 Net 2P Oil & Gas Reserves as of
1/1/14: 7.2 Bcfe; PV10 US$16.5 million
 Net Production: 3,645 MMcfe, up 49%
 Net Revenue: US$16.4 million, up 91%
 Avg. Sales Price: US$4.50/Mcfe, up 29%
 Unit Operating Costs: US$2.40/Mcfe, down 39%
 EBITDAX: US$7.7 million, up 1440%
 Net Loss after Tax: US$15.2 million
o Impairments US$14.4 million
o DD&A US$7.0 million
Annual General Meeting 2014
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Annual General Meeting 2014
2013 Financials
Key Factors Impacting Results
Positives
 Higher production: 3.6 Bcfe, up 24% on forecast, up 49% on 2012
o Marathon field – additional 2 wells brought into production (previously three
producing wells)
 Higher U.S. natural gas prices:
o Average gas price received of US$3.99/Mcf; (US$4.50/Mcfe on combined basis, up
29% on 2012)
Negatives
 Net impairment, abandonment, work-over and exploration expense of US$14.4 million:
o US$7.9 million impairment against shale oil projects in Canada/USA
o US$6.2 million impairment against Main Pass 270 due to reserve revisions
o US$0.3 million additional abandonment provisioning
 Unfavourable movement in value of options held in an unrelated entity of US$1.3 million
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Reassessing Our
Strategy for Growth
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Annual General Meeting 2014
Reassessing our Strategy for Growth
2011 – 2013 Business Plan
Implemented in response to the:
o Substantial reduction in U.S. natural gas prices: US$8/Mcf to US$4/Mcf (2008 – 2010); and
o Gulf of Mexico difficult operating environment post Macondo well blowout in 2010
Strategy
o Focus operations in North America
o Change target commodity from gas to oil
o Move from the GoM to Gulf Coast and onshore USA and Canada
o Redirect exploration activity from small gas prospects to large oil and gas/condensate prospects and
unconventional shale oil plays
Conventional: USA Large oil & gas/condensate prospects (target size 50 – 200 Bcfe)
o Target – 100 Bcfe (2P)
Unconventional – Shale Oil: USA/Canada
o Early entry and proof of concept, exit prior to development stage, new emerging areas, high potential,
shallow – low drilling and completion costs, low lease costs, large land positions available. JV with
shale experts.
o Target – 100 MMbbl oil
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Annual General Meeting 2014
Reassessing our Strategy for Growth
Change in strategy mid 2013:
Back to what we know and do best – conventional exploration
Change in Strategy
 Suspension of 2011-2013 unconventional shale oil strategy mid-year 2013
due to high cost and lack of early success
 Refocus on high impact conventional exploration due to a substantial increase
in U.S. natural gas price:
Gas prices have increased from a low of ~ US$1.80/Mcf in April 2012 to a
current price of ~ US$4.50/Mcf
 Pursue onshore lease acquisitions with producing reserves, or near term
development reserves, with significant exploitation and exploration potential
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Annual General Meeting 2014
2014 Exploration and Development
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Petsec Energy Ltd
2014 Exploration and Development
Strategy
USA
 Conventional exploration USA –
Focus on Gulf Coast onshore and
shallow Gulf of Mexico high impact
target prospects (20 – 200 Bcfe
gross target size)
 Reserves acquisition with significant
exploitation/exploration upside –
target oil and high liquid opportunities
YEMEN
 Exploration: Preparation for 2015
drilling - airborne magnetics/gravity,
2D seismic
 Development: Al Meashar - extended
well tests, production infrastructure
Annual General Meeting 2014
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Petsec Energy Ltd
Annual General Meeting 2014
2014 Exploration and Development
 USA Exploration
o
ASF No. 4 – onshore gas/condensate discovery well May 2014
o
English Bayou Deep prospect – high potential onshore oil prospect
o
Hummer prospect – high potential offshore gas/condensate prospect
o
Other high potential oil and gas/condensate onshore and shallow water
GoM opportunities
 Yemen Exploration
o 5,000 sq. km airborne magnetic/gravity surveys
o 2D 250 km seismic acquisition
o Development of Al Meashar oilfield – long term well test of Al Meashar #1
and # 2 wells
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Petsec Energy Ltd
2014 Exploration and Development
Republic of Yemen: Block 7 (Al Barqa)
Airborne Gravity/Magnetics
 Principle flight line spacing: 1000 m Flight line direction: 022°
 Tie line spacing: 5000 m Tie line direction: 112°
 Project start estimated between May – August
1
Source: Oil Search Limited
Annual General Meeting 2014
For personal use only
Petsec Energy Ltd
2014 Exploration and Development
Republic of Yemen: Block 7 (Al Barqa)
2D Seismic Programme – 250 km
1
Source: Oil Search Limited
Annual General Meeting 2014
Annual General Meeting 2014
For personal use only
Petsec Energy Ltd
2014 Exploration and Development
Republic of Yemen: Block 7 (Al Barqa), Al Meashar oilfield – Development


1
Source: Oil Search Limited
In 2010 the Al Meashar-1 and 2 wells
successfully tested a tilted fault block trap
defined on 2008 3D seismic, and proved oil in
the Kuhlan Sandstone and fractured Basement
over a gross 637m column
Al Meashar-1 DST#1 commingled lower Shukra
carbonates, Kuhlan sandstone and fractured
Basement to deliver a peak flow of 1046 bopd
and 6.36 MMscfpd gas on a 1” choke
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Petsec Energy Ltd
Annual General Meeting 2014
Glossary of Certain Industry Terms
1P
2P
Bcfe
Bcfg
Bopd
DHC
EWT
Ft.
Mbbl
Mbc
Mcf
MMbc
MMcfe
MMcfpd
MMscfpd
N.R.I.
PV10
W.I.
Proved Reserves
Proved and Probable Reserves
Billion cubic feet of gas equivalent (conversion ratio: 1 barrel of oil = 6 Mcf of gas)
Billion cubic feet of gas
Barrels of oil per day
Dry hole cost
Extended well test
Feet
Thousand barrels of oil
Thousand barrels of condensate
Thousand cubic feet
Million barrels of condensate
Million cubic feet of gas equivalent
Million cubic feet of gas per day
Million standard cubic feet per day
Net Revenue Interest
Present value calculated at 10% discount
Working Interest
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Annual General Meeting 2014

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