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HARTSHEAD RESOURCES NL — Investor Presentation 2020
Feb 2, 2020
65052_rns_2020-02-02_acea94eb-7f5b-4b5d-9150-2e9f7d8f285e.pdf
Investor Presentation
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UNLOCKING
EUROPEAN OIL & GAS RESOURCES
FEBRUARY 2020
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Forward Looking Statements
This document has been prepared by Ansila Energy NL ("Ansila”). This document contains certain statements which may constitute "forward-looking statements". It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including, but not limited to: price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve and resource estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, project delays or advancements, approvals and cost estimates.
Ansila’s operations and activities are subject to regulatory and other approvals and their timing and order may also be affected by weather, availability of equipment and materials and land access arrangements. Although Ansila believes that the expectations raised in this document are reasonable there can be no certainty that the events or operations described in this document will occur in the timeframe or order presented or at all.
No representation or warranty, expressed or implied, is made by Ansila or any other person that the material contained in this document will be achieved or prove to be correct. Except for statutory liability which cannot be excluded, each of Ansila, its officers, employees and advisers expressly disclaims any responsibility for the accuracy or completeness of the material contained in this document and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this document or any error or omission there from. Neither Ansila nor any other person accepts any responsibility to update any person regarding any inaccuracy, omission or change in information in this document or any other information made available to a person nor any obligation to furnish the person with any further information.
Qualified Person’s Statement
As an Australian public company with securities listed on the ASX, the oil and gas reserves and resource estimates in this presentation are prepared in accordance with the PRMS and ASX Listing Rule reporting guidelines.
The reserves and resources information of Ansila in this document is based on, and fairly represents, information and supporting documentation prepared by, under the supervision of, or reviewed by Mr Christopher Lewis (Technical Director). Volume estimates in this presentation are from the Netherland, Sewell Associates, Inc report entitled “Estimates of Reserves and Future Revenue and Contingent Resources and Cash Flow to the Gemini Resources Ltd Interest and Gross 100 Prospective Resources in Certain Oil Gas Properties located in the Nowa Sol and Gora Concessions Permian Basin, Onshore Poland as of May 1 2019 and were first reported to the ASX on 4 July 2019. Contingent and prospective resources reported herein have been prepared using a combination of deterministic and probabilistic methods.
Mr Lewis is a Director of Ansila Energy and has a BSc from the Imperial College, University of London and is a member of the American Association of Petroleum Geologists (AAPG) and the European Association of Geoscientists and Engineers (EAGE). The reserve and resource information is consistent with the definitions of proved, probable, and possible hydrocarbon reserves and resources that appear in the ASX Listing Rules. Mr Lewis is qualified in accordance with ASX Listing Rule 5.41 and consents to the inclusion of the Ansila reserves and resources figures in the form and context in which they appear in this presentation.
Corporate Information
This presentation is dated 3 February 2020 and is authorised to be given to ASX by the Board of Directors of Ansila The address of Ansila is Level 1 89 St George’s Terrace Perth WA 6000 and its website is www.ansilaenergy.com.au. Shareholders, investors and other interest parties can contact Nathan Lude, Executive Director, on 61 8 9226 2011 or at [email protected].
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© Ansila Energy NL│Corporate Presentation │ 2020
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SUMMARY
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Siciny-2 appraisal programme (Gas Resource: 1.6 Tcf 2C contingent resources) nearing completion*
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Transient pressure build-up test underway
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Post-operational analysis of well data in process
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Strategy to exploit the conventional gas potential across Gora licence underway
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209 Bcf of additional conventional prospective resources identified with an average CoS of 28%*
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Purchased reprocessed 3D dataset over part of Gora licence adjacent to proven Rawicz field (2P reserves 94 Bcf – Palomar Natural Resources)
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Option to reprocess 3D seismic data over Siciny and/or flow test Rotliegendes interval in Siciny-2 well
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Jany-C1 appraisal programme scheduled for Q2 2020
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Confirm the flow rate and commerciality of the Jany-C1 (Oil) discovery well
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Fracture stimulation and flow testing of unconventional Zechstein Dolomite
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Independently assessed 2C contingent resources of 36 MMbbls of oil ( CoS 28% )*
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New Ventures
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Focus on low risk, low entry cost, near-term European assets
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Strategic investment in a private UK North Sea Vehicle[†] with two applications submitted in UK 32[nd] Seaward Licensing Round
Photo: On location at Siciny-2 wellsite
*** Volume estimates in this presentation are from Netherland, Sewell & Associates, Inc, report entitled “Estimates of Reserves and Future Revenue and Contingent Resources and**
- Cash Flow to the Gemini Resources Ltd Interest and Gross (100%) Prospective Resources in Certain Oil & Gas Properties located in the Nowa Sol and Gora Concessions Permian Basin, Onshore Poland as of May 1, 2019” (Report or CPR). The % CoS in the presentation has been estimated by Ansila’s Management.
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† See disclosures in the Company’s Entitlement Issue Prospectus dated 10 September 2019, FY19 Annual Report released on 25 September 2019 and Quarterly Report released on 30 October 2019.
© Ansila Energy NL│Corporate Presentation │ 2020
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EUROPEAN ONSHORE FOCUS AND PROJECTS
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NOWA SOL
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North Sea ■ Ansila: 35% ■ Jany-C1 well ■ Area: 1,165 km[2] ■ Oil Resource: 36MMbbls 2C contingent resources*
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■ Resource Potential: 400MMbbls[†]
GORA (Unconventional)
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Ansila: 35%
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Siciny-2 well
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Area: 693 km[2]
Projects on trend with giant Permian Basin gas fields in Europe
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Gas Resource: 1.6 Tcf
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2C contingent resources*
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Resource Potential: 9 Tcf[†]
Map source: USGS
UK North Sea Vehicle
GORA (Conventional)
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Ansila: Major Shareholder
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Ansila: 35%
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Application: Seven Blocks
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Rotliegendes interval
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Multiple fields and resources
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Prospective Resources: 209 Bcf *
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OGA Award Results: Mid2020
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CoS range: 24% to 42%*
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*** Netherland Sewell & Associates Report (CPR) – 1 May 2019 † Gemini Resources management estimates**
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PROJECTS OVERVIEW
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Siciny-2
Jany C1 Feb 2012
Jul 2013
GORA
NOWA
SOL
Czaslaw SL-1
Dec 2012/13
Lelechow SL-1
Aug 2012
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35% interest in the Nowa Sol and Gora projects in the prolific Polish Permian Basin [†]
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Both licenses have recent discoveries and multi-Tcf/MMbbls potential
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Surrounded by Poland’s largest gas fields with over 100 discoveries in the area
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Netherland Sewell’s CPR estimate a large, single well 2C contingent resource potential:
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**Siciny-2: 1.6 Tcf *** 2C contingent resources (unconventional gas)
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Jany-C1: 36 MMbbls* 2C contingent resources (unconventional oil)
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209 Bcf * of conventional prospects identified in the Rotliegendes
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Additional 3D seismic acquisition/reprocessing likely to develop conventional prospectivity further
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Low onshore drilling costs for additional wells
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Prime location with nearby infrastructure, refineries and services, 500m from gas pipeline
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Robust average gas pricing (>US$6 per mscf) and favourable fiscal regime
†Farm-in excludes working interest in the Czaslaw SL-1 and Lelechow SL-1 wells
- Netherland Sewell & Associates Report (CPR) – 1 May 2019
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SICINY-2 APPRAISAL OPERATIONS
| Siciny-2 appraisalon schedule and within A$3.9 million budget Successful fracture stimulation of Carboniferous interval Confirmation of hydrocarbon gas in Carboniferous reservoir Free gas (methane) detected at surface oWellhead methane detectors oMethane vented from frac fluid flow-back tanks “Swabbing” of coiled tubing also resulted in pockets of gas being released oGas samples taken for analysis Inflow of formation water followed clean-up of frac fluid oFormation water prevented the break-through of free gas flow oOrigin and route of formation water needs to determined Long-term transient pressure build-up test oReservoir characterisation - Permeability, pore pressure and formation water |
MONTH OPERATIONS (Completed) |
|---|---|
| October 2019 Site preparation - Completed |
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| 12 November 2019 25 November 2019 27 November 2019 28 November 2019 Install isolation valves/lower Frac Tree Mobilisation of Coiled Tubing Unit to wellsite Well clean out - Completed Perforation of Carboniferous reservoir |
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| 1-2 December 2019 9 December 2019 10 December 2019 10 – 15 December 2019 15 – 30 December 2019 Casing Integrity Test/Cement Bond Log (CBL) Mini-frac of the Carboniferous reservoir Pump of hydraulic frac of the Carboniferous reservoir Frac fluid flow-back through casing Rig up well for well test operations |
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| January 2020 January 2020 January - February 2020 Continued well clean up through production tubing Isochronal and well flow tests- Omitted Long-term transient pressure build-up test – In Progress |
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- Post-operational well analysis in progress
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GORA CONVENTIONAL: PROVEN ROTLIEGENDES GAS FAIRWAY
| ZUCHLOW PAPROC CZERWIENSK 700MBO KARGOWA 2000MBOE KIJE 900MBO NOWA SOL LELECHOW KSIAZ SLASKI NOWA SOL OTYN 227BCF 850BCF Over 7 TCF of gas discovered in the Rotliegend in Poland CPR estimateRawicz Northprospective resource of110 Bcf oStructure defined by 3D and 2D seismic oReservoir, seal and charge proven in offset fields oProven Rotliegendes gas fields in close proximity oAdjacent to Rawicz field (94 Bcf) oClose to Zalecze field (900 Bcf) Additional prospectivity oCPR estimates additional100 Bcfof prospective resources oSiciny-2 well has21m conventionalgas pay in Rotliegendes with16%porosity oAddition prospects de-risked in success case oTotal prospective resource209 Bcf oCoS from 42% to 24% (average CoS 28%)*** |
ZALECZE-WIEWIERZ RAWICZ BORZĘCIN WIERZCHOWICE GORA BOGDAJ-UCIECHOW 900BCF 635BCF 422BCF 100BCF 188BCF Prospective Resources Low Best High Bronow Bcf 16.0 21.4 28.1 Rawicz North Bcf 80.1 109.7 148.8 Rawicz South Bcf 37.8 51.8 70.4 Siciny Bcf 9.5 13.1 17.8 Zuchlow West Bcf 10.0 13.3 17.6 TOTAL Bcf 153.4 209.3 282.7 |
|---|---|
Source: PGI (Polish Geological Institute)
*** Netherland Sewell & Associates Report (CPR) – May 1[st] 2019**
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REPROCESSED 3D DATASET: INITIAL INTERPRETATION
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Structures in
Gora License
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Purchased reprocessed 3D seismic data to assist in imaging over part of Rawicz North Structure
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Result is a significant change in structural interpretation
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Initial interpretation has resulted in:
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Cluster of 3 structures found to SE of Rawicz North
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Requires further G&G work in order to:
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Refine resources estimate
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Enable risking prior to drilling decision
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Select drilling location
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Additional potential within western part of the license
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Requires further 3D seismic
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Potentially significant increase in prospectively if additional 3D seismic acquired
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NOWA SOL: JANY-C1 WELL TARGETING OIL RESOURCES
- Jany-C1 well drilled in 2013 by copper company
Main Dolomite Unconventional Oil Play
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Entire section was logged in addition to recovering 45m of whole core
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Target: Mid-case STOIIP 238 MMbbls oil in tight Dolomite reservoir with 2C contingent resources of 36 MMbbls**
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Petrophysical analysis and core data indicate oil saturation with good shows during drilling
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2C resource area covers 48.6 km[2]
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FMI log interpretation indicates good fracture density and porosity in upper and lower fracture zones
- Total Nowa Sol area is 1,165 km[2]
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Numerous wells drilled through reservoir, finding ~40m tight oil dolomite between 1,100–1,800 metres depth
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Due to well construction (target in Copper Shale) drilled with heavy mud
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Jany-C1 well likely drilled off-structure
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2D seismic implies no structural trap present
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Jany-C1 to be re-entered, fracked and tested
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Two open hole DST runs:
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Budget $A2.25 million[1]
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Short duration well tests returned oil and gas in drilling mud
| Contingent Resources 1C 2C 3C |
Contingent Resources 1C 2C 3C |
Contingent Resources 1C 2C 3C |
Contingent Resources 1C 2C 3C |
Contingent Resources 1C 2C 3C |
|---|---|---|---|---|
| Jany-C1 | MMbbls | 9.3 | 36.1 | 85.8 |
- Well test analysis indicates sufficient permeability for frac and commercial flow
*** Netherland Sewell & Associates Report (CPR) – May 1[st] 2019**
- Two fields within the license have historic oil production from the main dolomite
1. £1.23m converted at a currency exchange rate of 1AUD:0.55GBP
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NEW VENTURES
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European onshore and shallow-water focus at both corporate and asset level
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In discussions with several vendors
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Opportunity No.1 – Strategic Investment in Private UK North Sea Vehicle
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Two applications in UK 32[nd] Seaward Licensing Round
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Seven contiguous blocks
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Existing fields and undeveloped resources with exploration upside
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Opportunity No.2 – Onshore Central Europe Gas Field Development
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Operated Interest
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Circa 100 Bcf gas field development
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Near-term FDP submission and first gas targeted within 18 months
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Opportunity No.3 - Onshore Eastern European Oil Production
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Non-operated interest
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Appraisal/Exploration upside
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Potential equity based transaction
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© Ansila Energy NL│Corporate Presentation │ 2020
MULTIPLE NEAR-TERM WORKSTREAMS
Conventional
Acquisition of reprocessed conventional 3D seismic dataset
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Further Geological and Geophysical interpretation
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Refine resources estimates
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Prospect risking prior to drilling decision
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Select drilling location
European onshore and shallow water focus
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Existing discoveries with technical resources
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Modest capital entry requirements
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Material appraisal/exploration upside
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Near-term activity and newsflow
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Unconventional
Siciny-2 Appraisal operations (Nearing Completion)
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Long-term pressure build-up test and completion of operations
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Post appraisal data analysis underway
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Determine next steps
Jany-C1: 2C contingent resources evaluation
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Licence conversion submitted to Ministry of Environment
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Work program designed to commence in Q2 2020
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Completion within 9 months
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© Ansila Energy NL│Corporate Presentation │ 2020
CONCLUSIONS
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Multi-faceted portfolio of European projects and opportunities being progressed
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Siciny-2 appraisal executed within budget and schedule
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Large Carboniferous play proven, but viability depends on understanding formation water ingression
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209 Bcf of additional conventional prospective resources* identified on Gora
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Recently acquired reprocessed 3D dataset highlights additional conventional prospectivity
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Three additional Rotliegendes structures adjacent to Rawicz North identified
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Jany-C1 frac and flow test expected to commence in Q2 2020
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Polish energy macro underpinned by robust and growing energy demand and reduction in Russian gas imports
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Active New Ventures Pipeline
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Strategic Investment in UK North Sea Vehicle[†]
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New asset and corporate opportunities under review
*** Volume estimates in this presentation are from Netherland, Sewell & Associates, Inc, report entitled “Estimates of Reserves and Future Revenue and Contingent Resources and Cash Flow to the Gemini Resources Ltd Interest and Gross (100%) Prospective Resources in Certain Oil & Gas Properties located in the Nowa Sol and Gora Concessions Permian Basin, Onshore Poland as of May 1, 2019” (Report or CPR). The % CoS in the presentation has been estimated by Ansila’s Management.**
- See disclosures in the Company’s Entitlement Issue Prospectus dated 10 September 2019, FY19 Annual Report released on 25 September 2019 and Quarterly Report released on 30 October 2019.
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Photo : On location at Siciny-2 wellsite
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© Ansila Energy NL│Corporate Presentation │ 2020
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APPENDIX I - CORPORATE DATA
| Ansila Energy as at 31st January 2020 Market: ASX ASX Code: ANA Share price: A$0.014 Total Ordinary shares1 508,772,126 Market capitalisation A$7.1 million Cash ~ A$2.7 million Financial Assets - Investments ~ A$1.1 million Cash and Financial Assets ~ A$3.8 million * As at 31 December 2019 1Ordinary shares does not include: Partly paid ordinary shares on issues as at 29 January 2020: • 5,703,550 Partly Paid Shares, issue price of $0.20 of which $0.01 is paid Unquoted securities convertible over un-issued shares, as at 29 January 2020 • 20,000,000 Options, exercisable at $0.04,expring 31/12/2022 • 64,844,991 Performance Rights, subject to performance conditions, expiring 30/09/2022 0 0.01 0.02 0.03 0.04 0.05 0.06 Share Price $ |
13 - 5 10 15 20 25 30 35 40 Volume (millions) Volume Close |
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APPENDIX II - POLAND GAS MARKET AND PRICING
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Source: PGNiG
Source: POLPX Monthly Reports (Dec 2019)
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Poland’s energy consumption is heavily dependent on imports with gas demand growing strongly
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Security of supply and desire to reduce dependency on Russian gas imports is high on the political agenda
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Gas pipeline infrastructure is extensive and has spare capacity (Gaz System S.A. data at 31 Dec 2018):
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Length – 10,743 km
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Gas volume transmitted – 17.2 bcm (607.2 Bcf)
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Seasonal gas pricing (day ahead) historicals between $4.6 per mscf (summer) and US$8 per mscf (winter)
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Source: POLPX Monthly Reports (Nov 2019)
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APPENDIX III - FISCAL TERMS & COMMERCIALISATION
Indicative Development Scenarios
Robust Gas Demand
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Successful frack and flow tests will advance horizontal development programs for the two tight oil and gas plays
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Poland is heavily dependent upon oil and gas imports – particularly from Russia
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Seasonal domestic gas prices in excess of US$10 per mscf during winter
Nowa Sol Tight oil play
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Recently established import terminal – Gas imported from USA
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Horizontal wells with 16 stage fracks, with estimated 2C ultimate recovery per well of 384,000 barrels
Nearby Infrastructure
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Indicative individual horizontal well cost of US$7.1 million (base case estimate)
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Gas pipeline infrastructure is extensive and has spare capacity
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Gaz System S.A. transmitted 607.2 Bcf for (year to December 2018)
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128 acre well spacing and 94 wells across 48.6km[2]
Gora Tight gas play
Supportive Fiscal Terms
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Horizontal wells with 16 stage fracks, with estimated 2C ultimate recovery per well of 8,240 MMCF
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Overriding royalty of 5% of net profits
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Government tax and royalty regime
- Indicative individual horizontal well cost of US$10.4 million (base case estimate)
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Government royalties of:
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6% - conventional oil
- 160 acre well spacing and 192 wells across 41.6km[2]
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3% - unconventional oil
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3% - conventional gas
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1.5% - unconventional gas
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Production tax of
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US$0.39 per bbl for oil
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US$0.19 per mscf for gas
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APPENDIX IV – BOARD AND MANAGEMENT TEAM
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BEVAN TARRATT – NON EXECUTIVE CHAIRMAN
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Non Executive Chairman of ASX-Listed Protean Energy. Non Executive Director of ASX-Listed Jacka Resources
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Extensive experience in primary and secondary capital raising as well as corporate strategic consulting
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Over 20 years experience in accounting and broking firms
DR ANDREW MATHARU – EXECUTIVE DIRECTOR
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25 years+ experience across the oil & gas industry and equity capital markets
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Commenced career as a Petroleum Engineer with Chevron and Kerr McGee in the UK North Sea
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Experience gained in corporate advisory, equity capital markets, M&A and financing numerous small to mid-cap oil & gas companies
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VP Business Development at Tower Resources plc – corporate & asset M&A and capital raisings
NATHAN LUDE – EXECUTIVE DIRECTOR
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Broad experience in asset management, mining and energy sectors
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Operates a corporate advisory firm which introduces capital and new management to public and private vehicles
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Previous and current roles include business development in a Canadian gas major, Non Executive Chairman of ASX listed Frontier Resources and Non Executive Director of ASX listed GTI Resources
CHRIS LEWIS – TECHNICAL DIRECTOR
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Geophysicist and oil & gas professional with 25 years+ experience
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Experience gained with a spectrum of oil majors, small-mid caps, start-ups and consultancies
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Executive and board experience with geographical expertise in Africa, North Sea, CEE and Australasia
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Successful monetisation with Centric Energy, Lion Petroleum, ZETA Petroleum and Blackstar Exploration
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APPENDIX V: POLAND GAS INFRASTRUCTURE
Map source: Gaz System S.A.
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ANNEXURE VI: RESOURCE ESTIMATE
| Contingent Resources 1C 2C 3C Jany-C1 MMbbls 9.3 36.1 85.8 Ansila 35% Interest 3.3 12.6 30.0 Siciny-2 Tcf 0.7 1.6 3.2 Ansila 35% Interest 0.25 0.56 1.1 |
Prospective Resources Low P90 Best P50 High P10 |
Prospective Resources Low P90 Best P50 High P10 |
Prospective Resources Low P90 Best P50 High P10 |
Prospective Resources Low P90 Best P50 High P10 |
Prospective Resources Low P90 Best P50 High P10 |
|---|---|---|---|---|---|
| Bronow | Bcf | 16.0 | 21.4 | 28.1 | |
| Rawicz North | Bcf | 80.1 | 109.7 | 148.8 | |
| Rawicz South | Bcf | 37.8 | 51.8 | 70.4 | |
| Siciny | Bcf | 9.5 | 13.1 | 17.8 | |
| Zuchlow West | Bcf | 10.0 | 13.3 | 17.6 | |
| TOTAL Bcf 153.4 209.3 282.7 |
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| Ansila 35% Interest 53.7 73.3 98.9 |
- Prospective Resources Cautionary Statement: The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.
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