NORTH PERTH BASIN Petroleum Permit DR 11 & EP 455 OVERVIEW & 2012 WORK PLAN Company Overview
ASX CODE TTE MARKET CAP $14M** 52 WEEK RANGE 0.22/0.12 LISTED SHARES 929M CASH POSITION 3.5M* DEBT POSITION 0
Western Australian-based Titan Energy Ltd (ASX: TTE) is a global oil and gas explorer with growing interests in Australia and the United States.
The Company is ac vely searching for oil and gas in the highly prospec ve onshore Perth Basin in Western Australia, and interna onally.
*Undiluted, based on the share price at $0.015 **At the me of publishing 27/07/12 Darren Levy – Execu ve Chairman
Mr Levy holds a Bachelor of Commerce degree from Melbourne University, Post Graduate Diploma from the Securi es Ins tute of Australia and has been admi ed as a Fellow of the financial services ins tute of Australia (F.Fin.). He has more than 25 years experience in the finance and stockbroking industry.
Stephen Thomas – Managing Director
Mr Thomas graduated with a B.Sc (Hons) in Geology from the University of South Wales in the UK in 1978, and subsequently gained 25 years experience in conven onal oil and gas explora on. Since 1997 he has had a strong focus on Coal Seam Gas (CSG) environments in Australia, Canada and the US.
Paul Garner – Execu ve Director
Mr Garner has extensive experience in interna onal business and over 35 years experience in the property and equi es market. He has extensive experience with Public Company capital raising and restructuring. He has served on the Boards of various listed oil and gas companies at various stages of their development.
Jack Toby – Company Secretary
Mr Toby is a Fellow of the Ins tute of Chartered Accountants in Australia, a Fellow of the Ins tute of Chartered Accountants in England and Wales and an Associate member of the Australian Computer Society. He has extensive experience as Company Secretary and Chief Financial Officer of several listed public companies and major corpora ons since 1984. • The estimated recoverable reserves of naturally occurring hydrocarbons in Western Australian offshore basins are 156.9 tcf. Onshore, the EIA estimates that the technically recoverable reserves of shale gas are 288 tcf.
• Western Australia has demonstrably huge SGR, double the recoverable offshore gas reserves. As such, it is inevitable that the recovery of SGR will dominate Western Australia in years to come.
• Shale gas represents an unprecedented opportunity for Western Australia
• Department of Mines and Petroleum estimates that the Perth Basin holds 9-12 tcf of recoverable shale gas resources within the vicinity of existing pipelines.
• 1 tcf of gas can provide enough energy to power a city of one million people for 20 years. • Permit Overview
• Previous Exploration Research
• Geo-Technical Data Review
• Work Plan
• Goals DR 11
• Permit Issued 05/11/2008
• Area: 223.1 square kilometers
• 3 Graticular Blocks – 6528, 6600, and 6672
• Traditional Title - Yued, Franks, and Amangu
• Shire of Carnamah
• 280 km North of Perth, 30 km East of Leeman
Northern Perth Basin Stra graphy In the north Perth Basin and the Cadda Terrace; an analysis of the lithostratigraphic units, structural setting, oil and gas accumulations, and hydrocarbon shows indicates that mature source rocks are widespread, that reservoirs are abundant, and that structures are well timed for hydrocarbon entrapment.
The high source-rock potential for both oil and gas, the presence at drillable depth of Early Triassic seals and Late Permian objectives, and the abundance of anticlinal structures, suggest that the Cadda Terrace sub-basin offers high potential for further hydrocarbon discoveries Work Completed 2011/12 _ DR 11:
• The Warradarge Seismic Survey, Completed October 2011
• Seven 2D Seismic Lines (direct line) 22.1 km’s of line data
• Increased Confidence in mapping the Cadda/Cattamarra horizon
• Extensive Environmental Management planning for the areas of exploration activities
• Native title Heritage Survey
• Botanist Survey
• Historical Data Review
• Geotechnical Research • Historical Survey Data availability (within boundary) : LOW • 3 Vintages of Seismic Data (1960 - 1988) • Generally Poor to Very Poor Data Quality • No petroleum wells have been drilled within permit area Historical Drilling
DR 11 Proximity
• WOODADA GAS FIELD - 10KM’s West
• Ocean Hill #1 - 6KM’s East
• Arrowsmith #1 - 20KM’s North West
• Indoon #1 – 9 KM’s West
• Beekeeper #1 – 7 KM’s North West
• East Lake Logue #1 – 9KM’s West
Ocean Hill #1 • Good gas shows associated with sandstone beds in the Cadda Fm • DST 2 test @ 3070-3130m flowed gas at a rate of 0.7 MMcf per day
Indoon #1 • Stabilized flow rate of approximately 2MMcf/d from the Cattamarra formation @ interval 2101 – 2257m
East Lake Logue #1 • Drill Stem Test 1 over the interval 2184-2430m flowed gas at a rate of 10.4 MMcf per day. Following completion and stimulation the well flowed gas at a stabilized rate of 14.1 MMcf per day from the interval 2327-2333m
Arrowsmith #1 • Produced gas at a rate of 4 MMcf per day from a zone within the middle units of the Carynginia Fm.
Woodada #1 • Flowed gas at a rate of 6.9 MMcf per day from fractured Caryginia Formation limestones DR 11 Work Plan 2012
• Two Stratigraphic Test Wells to be drilled late third quarter 2012
• Drilling Locations have been Identified and drilling contractor appointed
• Environmental Management Plan completed
• Application for Approval to Drill Submitted
• These wells are aimed at defining two fault blocks of the North Perth Basin
• Drilling to begin immediately following DMP approval Goals Set for 2012/13 – Permit DR 11
• Investigate potential hydrocarbon targets within the Cadda Formation & Cattamarra Coal Measures
• Prove the viability of hydrocarbon exploration and development within DR 11 permit area
• Test conventional targets
• Investigate potential Triassic & Permian targets JOINT VENTURE PERMIT AREA
EP 455
2012 WORK PROGRAM VARIATION; IN CONSIDERATION FOR TITAN ENERGY AGREEING TO THE VARIATION, TITAN ENERGY’S WORKING INTEREST HAS INCREASED FROM 10% TO 18.5% CURRENT FRACCING OPERATIONS IN THE PERTH BASIN
Western Australian Environment Minister Bill Marmion has upheld a decision by the Environment Protec on Agency to support fraccing opera ons in WA.
The decision has been welcomed by the gas industry and Australian Petroleum Produc on and Explora on Associa on (APPEA), which says fraccing is a long-established and safe technology.
Mobilisa on of the Halliburton hydraulic fracture s mula on equipment to the Norwest Energy’s Arrowsmith-2 site con nues, with the first stage of the frac program scheduled to be implemented before the end of July 2012. EP 455
• Permit Issued 22/06/07 • Traditional Title – Yued, Franks, and Amangu • Area 445.3 square km’s • Shire of Coorow • 6 Graticular Blocks • 150 km South of Geraldton, 11 km East of Greenhead • 3 Petroleum Wells drilled within the permit area • 2 deep wells – Woolmulla #1 & Gairdner #1 • Gairdner #1 provides accurate depths to the target shale formations - Important for achieving coring objectives of the planned well • 5 Vintages of Seismic data (1979-1989) • Data quality – Generally Poor • Fair Confidence in mapping the Base Kockatea Shale Prospec ve Shale Area • The potential of shale and coal formations as sources of gas has been known for several decades but have remained underdeveloped due to the difficulty in recovering gas from these formations.
• Shale gas has become an important global source of gas. The combination of the development of horizontal drilling and fraccing has greatly increased the likelihood for profitable extraction of shale gas from shale formations.
• Naturally occurring hydrocarbons dominate the offshore basins, while shale gas resources (SGR) dominate the onshore basins.
Work Completed EP 455
• Historical Data Review
• Well data analysis
• Comprehensive mapping of seismic events
• Integration of seismic interpretation with geochemical, maturity and mineralogical assessment
• Identification of target zones
• Drilling location Identified & landowner engaged Work Plan 2012/2013
• Heritage Survey
• Flora & Fauna Surveys
• Environmental Management Plan (EMP) Preparation for the well
• Geological Program Preparation
• Drilling of a Deep Well
• Fraccing program to be completed by 21 June 2013 Base Kockatea Depth Structure Map
Source: AWE Limited With the approval now provided by the Department of Mines and Petroleum for the suspension of the Year 5 work program, the Year 5 (drilling of an explora on well) and Year 6 (hydraulic s mula on of the drilled well) will run concurrently. Goals Set for Permit EP 455
• Evaluate potential Shale gas targets – Carynginia, Irwin River Coal Measures and Kockatea shale
• Prove the viability of Shale gas development in the North Perth Basin
• Production test prospective formations
• Improve drilling and fraccing procedures for shale gas wells
• Test conventional targets WHY INVEST IN TTE
Experienced & Energetic board and management
• Management with field development and operational experience
• New direction, new acquisitions, targeting known resource reservoirs
• Strong vision along with motivation to drive TTE to be a big industry player
• High potential gas prospects in the North Perth Basin
• Strong exploration program for 2012 and 2013 References:
Crostella, 1995, An Evalua on Of The Hydrocarbon Poten al Of The Onshore Northern Perth Basin, Western Australia. GSWA, Report 43
McKellar, 1971, Cockleshell Gully Forma on, WAPET, Report S1174
Tarabbia, 1991, Sedimentology and Diagenesis of Sandstones Within the Lower Jurassic Ca amarra Coal Measures, North Perth Basin, Western Australia
Governement of Western Australia, 2011, Department of Mines and Petroleum Response to Report: Regula on of Shale, Coal Seam and Tight Gas Ac vi es in Western Australia
U.S. Department of Energy, U.S. Energy Informa on Administra on, 2011, World Shale Gas Resources: An ini al Assessment of 14 Regions Outside of the United States
Competent Person’s Statement:
Informa on in this report that relates to Hydrocarbon Reserves and or Resources is based on informa on compiled by Mr Stephen Thomas, Director of Titan Energy Ltd who has consented to the inclusion of that informa on in the form and context in which it appears.
Mr Thomas has over 30 years experience in petroleum geology and in oil and gas explora on and produc on, both in Australia and interna onally, as either an employee or consultant to oil companies opera ng in the upstream petroleum industry.
Mr Thomas reviews the Company’s opera ons with the help of various professional consultants, appropriately qualified and experienced in their respec ve fields within the upstream petroleum industry.
He is also a member of AusIMM, a fellow of the Royal Geological Society of London and has a BSc (Hons) in geology from the University of South Wales.