Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - HARVEST NATURAL RESOURCES, INC. | d583108d8k.htm |
 EnerCom's The Oil &
Gas Conference 18
August 12, 2013
Exhibit 99.1
® |
 Forward Looking
Statements NYSE: HNR
www.harvestnr.com
2
Cautionary
Statements:
Certain statements in this presentation are forward-looking and are based upon
Harvest’s current belief as to the outcome and timing of future events.
All statements other than statements of historical facts including
planned
capital
expenditures,
increases
in
oil
and
gas
production,
Harvest’s
outlook
on
oil
and
gas
prices,
estimates of oil and gas reserves, business strategy and other plans, estimates,
projections, and objectives for future operations,
are
forward-looking
statements
within
the
meaning
of
the
“safe
harbor”
provisions
of
the
Private
Securities
Litigation Reform Act of 1995. Important factors that could cause actual results to
differ materially from those in the forward-looking statements herein include
Harvest’s concentration of assets in Venezuela; timing and extent of changes in
commodity prices for oil and gas; political and economic risks associated with international operations; and other risk
factors
as
described
in
Harvest’s
Annual
Report
on
Form
10-K
and
other
public
filings.
Should
one
or
more
of
these
risks
or
uncertainties
occur,
or
should
underlying
assumptions
prove
incorrect,
Harvest’s
actual
results
and
plans
could
differ materially from those expressed in the forward-looking statements. Harvest
undertakes no obligation to publicly update or revise any forward-looking
statements. Harvest may use certain terms such as resource base, contingent resources,
prospective resources, probable reserves, possible reserves, non-proved reserves
or other descriptions of volumes of reserves. These estimates are by their
nature more speculative than estimates of proved reserves and accordingly, are subject to
substantially greater risk of being actually realized by the Company. Investors
are urged to consider closely the disclosure in our 2012 Annual Report on Form
10-K and other public filings available from Harvest at 1177 Enclave Parkway, Houston, Texas, 77077
or from the SEC’s website at www.sec.gov.
Contingent resources are resources that are potentially recoverable but not yet considered
mature enough for commercial
development
due
to
technological
or
business
hurdles.
Prospective
resources
are
those
quantities
of
hydrocarbons which are estimated, as of a given date, to be potentially recoverable from
undiscovered accumulations by application of future development projects. They
indicate exploration opportunities and development potential in the event a discovery
is made and should not be construed as contingent resources or reserves. The contingent and
prospective resources included in this presentation were internally developed by Harvest
Natural Resources. |
 About
Harvest NYSE: HNR
www.harvestnr.com
3
Market Data
Exchange/Ticker
NYSE: HNR
Market Capitalization *
$ 174 MM
Enterprise Value
$ 243 MM
Cash (06/30/2013)
$ 9.8 MM
Debt (06/30/2013)
$ 79 MM
Shares Outstanding
39.5 MM
Institutional Ownership
75%
*
As of August 7, 2013 |
 Highlights
NYSE: HNR
www.harvestnr.com
4
Venezuela continues strong production growth
Up 16% in 2012
Current production 43,000 bopd, up 19% vs. 2012 average
“2 for 2”
Exploration in pre-salt offshore Gabon
Ruche discovery in 2011
Tortue discovery in 2013
49 million bbl oil discovered on block
Large scale outboard potential identified
Proven hydrocarbon system onshore Indonesia
Oil and gas encountered in two exploration wells
3
rd
well expected to spud 1
Q 2014
Process underway for Gabon and Indonesia farmout/sale
Colombia entry
st |
 Venezuela -
Petrodelta
NYSE: HNR
www.harvestnr.com
5
32% Equity Interest in Petrodelta
Six fields, 9.9 billion barrels of gross
oil-in-place
Growth underway
Current production rate of 43,000
bopd
Successful development program
ongoing in Temblador, Isleño and
El Salto
El Salto producing 20,000 bopd
Isleño producing 2,200 bopd from
three horizontal wells
Five drilling rigs operating plus one
new rig assembling on location
Operations generating solid
financial performance
2012 CFO of $248 million (gross)
$84 million in dividends (net to HNR)
received since 2008
$9.8 million (net to HNR) in dividends
declared and receivable
Cash
Surplus
Jan
2010
-
2013
Q2:
$90 million net to HNR 32% interest
2009
2010
2011
2012
2013 1H
Cash From Operations ($MM, Gross)
140
192
196
248
126
Production (MMBOE, Gross)
8.6
8.9
11.8
13.5
7.1
Proved Reserves (MMBOE, net to Harvest)
46.3
50.0
43.3
38.4
36.9
2P Reserves (MMBOE, net to Harvest)
83.3
103.6
103.8
100.2
98.7
3P Reserves (MMBOE, net to Harvest)
224.3
220.6
210.5
204.6
203.1
South Monagas Unit (SMU):
New Fields:
El Salto, Temblador, Isleño
Total Area Petrodelta’s Fields: 1000.03 Km
Uracoa, Tucupita, Bombal
2 |
 Petrodelta Production
NYSE: HNR
www.harvestnr.com
6
# of Drilling Rigs
New Fields
SMU
Production Outlook
2004
2005 2006
2007
2008 2009 2010 2011
2012 2013
2013 Outlook
41,300 BOPD average full year
38,211 BOPD average Q2 2013
43,000 BOPD current
$210 million Capex for 2013
New fields Infrastructure
6 rigs at year-end for development wells
25 new oil wells
60
50
40
30
20
10
0
6
5
4
3
2
1
0
Conversion Process |
 Petrodelta Reserves Valuation
NYSE: HNR
www.harvestnr.com
7
(1)
Net to HNR after 33.33% royalty
At December 31, 2012
Six fields with 9.9 billion barrels gross OOIP
38.4 million BOE net Proven, 166.2 million BOE net Probable and Possible
2013 Drilling Program at El Salto, Temblador and Isleño fields will continue to
drive reserve additions and increase production
Petrodelta Reserves Value
(After Tax
(2)
-
Net to HNR 32% Interest
)
(2)
After Venezuelan Income Taxes but before U.S. Income Taxes
1,600
1,800
1,200
1,400
800
1,000
600
400
200
0
NPV10
@ WTI = $50/BBL
NPV10
@ WTI = $70/BBL
NPV10
@ WTI = $100/BBL
Possible
Probable
Proved
Ryder Scott reserve report @ 12/31/2012
WTI =
$94.2/BBL, Petrodelta oil price = $95.9/BBL
(Net to Harvest Natural Resources 32% Interest and
net of 33.33% royalties)
Net Resource Base
(1)
Proved
Probable Oil, MMBBL
34.5
54.7
99.5
Gas, BCF
23.2
42.9
29.4
Total, MMBOE
38.4
61.8
104.4
Proved
2P
3P
Reserves (MMBOE)
(1)
38.4
100.2
204.6
After –
Tax PV10 ($MM):
As of 12/31/2012:
450
917
1,647
Per BOE
$11.7
$9.2
$8.1
Possible |
 Gabon
– Dussafu Block
NYSE: HNR
www.harvestnr.com
8
GABON
Lucina
Etame
Yombo
Ruche
Walt
Whitman
Moubenga
GMC-1X
Tortue
Avouma
Ebouri
North
Tchibala
South Tchibala
HNR PROPERTIES
GAMBA PROSPECTS/LEADS
OTHER PROSPECTS/LEADS
OIL FIELDS
GAS DISCOVERY
680,000 acre PSC, Offshore Gabon
66.667% operated interest
49 MMBO mean contingent resources
discovered
3 Exploration Period
•
Extends to May 27, 2016
•
Work commitments completed
Key HNR Activities to Date
Tortue Discovery (2013)
•
28 MMBO Mean Contingent Resources
Ruche Discovery (2011)
•
14 MMBO Mean Contingent Resources
Development planning nearing completion
•
POD to be submitted 3Q 2013
Central Dussafu 3D acquired 2011
•
Final PSDM processing complete
Outboard 3D Seismic planned 2013
•
Large Dentale structures seen on 2D
•
Analogous to nearby Diaman prospect
currently being drilled by Total
rd |
 NYSE: HNR
www.harvestnr.com
9
Tortue Exploration Well DTM-1
Oil discovery in pre-salt Gamba and Dentale
reservoirs, 53m net pay
Appraisal sidetrack DTM-1 ST1, 20m net pay
in Dentale
Well suspended pending future appraisal and
development studies
DTM-1
Gamba
Structure
Dentale
Structure
DTM-1 ST1
N
Tortue Marin-1
Reservoir
STOIIP (MMBO)
Contingent
Resources
(MMBO)
Mean
P10
Mean
P10
Gamba
24
42
9
16
Dentale
72
129
19
39
Total
96
171
28
55
Dussafu –
Tortue Discovery |
 Dussafu -
Ready for Development
NYSE: HNR
www.harvestnr.com
10
Work-In-Progress
Subsurface engineering
Project and facilities engineering
Logistics planning
Well completion design
Equipment selection
Expect FEED complete 3Q 2013
First production by mid 2015
Project sanction by partners 2013
Long lead items to be ordered
Declaration of commerciality
Initial Tortue wells drilled in 2014
FPSO installed 1Q 2015
Continued development through
2015-16
Well and facility layout for sub-sea tiebacks
to FPSO located at Tortue Field |
 Dussafu Resource Potential
NYSE: HNR
www.harvestnr.com
11
Resource Type
Mean MMBO
Contingent Resource
49
13 Prospects (unrisked)
201
16 Leads (unrisked)
765
TOTAL
1015
Name
Formation
Unrisked
STOIIP
Unrisked
Recoverable
Reserves
Overall
Lead/Prospect
COS
Oil/Condensate (MMBBl)
P10
Mean
P10
Mean
2 Tchibobo NE
Gamba
43
25
14
8
40%
2 Tchibobo NE
Mid Dentale
109
60
33
18
40%
12 Moubenga East
Gamba
113
70
38
23
35%
12 Moubenga East
Mid Dentale
145
64
33
14
12%
11 Moubenga updip
Gamba
34
23
11
8
29%
13 Bougainvillea N amplitude
Gamba
48
28
16
9
52%
14 Bougainvillea N NW amplitude
Gamba
26
19
9
6
45%
8 Hibiscus Updip
Gamba
39
23
13
7
30%
9 Mupale
Gamba
118
70
39
22
28%
9 Mupale
Mid Dentale
107
51
25
11
27%
10 Hibiscus North
Gamba
144
74
47
24
26%
10 Hibiscus North
Mid Dentale
94
41
21
9
16%
23
Gamba
59
40
20
13
34%
23
Mid Dentale
46
23
11
5
41%
25 NW Walt Whitman
Gamba
32
20
11
7
39%
28 West M'Bya
Gamba
28
19
9
6
35%
38 SE Walt Whitman
Gamba
22
14
7
5
39%
39 SSE Walt Whitman
Gamba
30
19
10
6
39%
3 Tchibobo N West
Gamba
112
53
37
17
18%
4 Tchibobo N NW
Gamba
39
19
13
6
18%
6 Dussafu West
Gamba
118
62
39
20
23%
15
Gamba
74
51
25
17
20%
18
Gamba
99
48
33
16
20%
18
Mid Dentale
91
38
21
8
12%
19 Dussafu East
Gamba
89
44
30
14
26%
19 Dussafu East
Mid Dentale
197
88
45
20
17%
26 Jedi West
Gamba
89
53
29
17
27%
42 Hibiscus South
Gamba
26
14
9
4
23%
49 Tchibobo West
Gamba
37
25
13
8
14%
31 Mukombo Combined
M'Bya/Lucina
143
81
23
12
13%
Outboard leads
A Gamba Lead 43 (Ruche SW)
Gamba
44
27
15
9
14%
A Dentale Lead 5
Dentale
137
65
41
19
19%
B Gamba Lead 45 (Ruche SE)
Gamba
54
34
18
11
14%
B Dentale Lead 4
Dentale
406
171
121
51
20%
C Dentale Lead 3
Dentale
307
157
92
47
19%
D Gamba Lead D1
Gamba
27
17
9
6
14%
D Gamba Lead D2
Gamba
14
9
5
3
14%
D Dentale Lead 1
Dentale
1643
698
493
209
17%
E Gamba Lead
Gamba
75
50
25
16
14%
E Dentale Lead 2
Dentale
817
415
245
124
19%
F Dentale
Lead 6 Dentale
800
369
241
111
15%
Exploration Prospects and Leads |
 Dussafu Outboard Leads
NYSE: HNR
www.harvestnr.com
12
Dussafu outboard leads in relation to nearby
Dentale exploration activity
Total / Cobalt / Marathon drilling Diaman-1 targeting 250-
800 MMBO
Shell / CNOOC expected to drill 2 well in BC9/10 in 2013
Vaalco / Sasol / Sinopec drilling Ovoka-1 well targeting
140 MMBO
Acquiring 3D is key to de-risking outboard leads
Dussafu Outboard Leads
Based on 2D seismic
BC9/10
Diaman-1
At TD
250-800 MMBO
Ovoka
Drilling
140 MMBO
Lead A
30-50 MMBO
Lead C
50-100 MMBO
Lead F
110-250 MMBO
Lead E
140-270 MMBO
Lead B
60-140 MMBO
Lead D
200-500 MMBO |
 NYSE: HNR
www.harvestnr.com
13
South Gabon Pre-Salt Structures
Tortue-1
Tortue Discovery (Harvest 2013)
Gamba & Dentale structures formed by listric normal
faults detaching on older Melania shale
Dentale consists of stacked lacustrine and fluvial deltaic
channel systems
Diaman Prospect (Total/Marathon/Cobalt)
Well targeted stacked Gamba & Dentale reservoirs
Large faulted anticline
Dussafu Outboard Leads (Harvest)
Defined by multiple 2D lines
Stacked Gamba and Dentale potential
Closures are larger than seen on inboard portion of
block
3 miles
Marathon Oil Investor Presentation
Top Salt
Top Gamba
Dentale
Marker
Madiela
3 miles
Dussafu Outboard
Lead D |
 Dussafu Potential Value, Net to Harvest
NYSE: HNR
www.harvestnr.com
14
Exploration Program Mean
Risked Value: $947
$317
$167
$31
$35
$284
$663
$1,497
Contingent Resources
Mean Value: $550
Total Mean Value:
$1497
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
Tortue
Ruche
Walt Whitman
Moubenga
Inboard Expl
Mean
Outboard Expl Total Resource
Mean
Mean Value |
 NYSE: HNR
www.harvestnr.com
15
Indonesia -
Budong-Budong
611,943 acre PSC
71.5% WI -
Onshore West Sulawesi
4 year extension to Jan 2017
Harvest became operator in April 2013
Proven Petroleum System
Lariang and Karama sub-basins
Source kitchen known
Extensive oil and gas seeps
Undrilled structures on seismic and surface
anticlines
LG-1 and KD-1 wells drilled in 2011-12
Oil and gas encountered in overpressured
sands
Farming Down
Madjene
Prospect
(MJN-1)
Prospect and Leads
Inventory
Mean
MMBO
Prospects (13)
660
Leads (10)
In-progress
TOTAL
660
HNR LICENSE
BACK THRUST PROSPECTS/LEADS
FOLD BELT LEADS
STRATIGRAPHIC PROSPECTS/LEADS |
 Budong-Budong Madjene Prospect
NYSE: HNR
www.harvestnr.com
16
Madjene Prospect
Thrusted anticline
Stacked reservoir targets
Pliocene and Miocene sands
96 MMBO total mean unrisked
reserves
MJN-1 well
1Q 2014
Unrisked Gross
Reserves
Mean
MMBO
P10
MMBO
COS
%
Pliocene 490 Sand
44
74
30%
Upper Miocene Sand
37
64
21%
Middle Miocene Sand
15
27
20%
TOTAL
96
165 |
 Colombia Entry
NYSE: HNR
www.harvestnr.com
17
HNR Farmin to VSM14 and VSM15 Blocks
Signed agreements with operators of blocks
Subject to approval of the Colombia ANH
HNR 75% operated interest in both blocks*
VSM 14 –
137,061 gross acres
VSM 15 –
105,721 gross acres
Phase 1 Exploration through Dec 2015
Investment Rationale
Compelling unconventional and conventional
potential
2000+ ft Cretaceous La Luna/Tetuan shales in
synclines from 5,000-12,000 ft depths
Thrust-related structures
Favorable political and fiscal environment
Favorable risk-reward
Nearby infrastructure
Emerging unconventional focus in Colombia
Harvest prior unconventional success
2 years of studies on international unconventional
Upper Magdalena Basin
VSM 15
VSM 14
La Hocha
Palermo
Oil Pipeline
*
Harvest's
acquisition
of
the
Participating
Interest
and
the
transfer
of
operatorship
on
VSM14
and
VSM15
are
subject
to
the
approval
of
the
Colombia
ANH
COLOMBIA
NEIVA
San Francisco
Dina
Tenay
Palo Grande
Caguan
Tello
Antares
Brisas
Balcon
Los Mangos
La Canada
20km |
 Cretaceous Shale Characteristics
NYSE: HNR
www.harvestnr.com
18
VSM 15
VSM 14
1
2
Villeta
TOC 2%
50-70 feet net pay
10-16% porosity
30-50 MMBO/sq mile
La Luna
TOC 3%
100-220 feet net pay
8-14% porosity
50-70 MMBO/sq mile
Tetuan
TOC 3.7%
100-230 feet net pay
8-12% porosity
50-90 MMBO/sq mile
Total Cretaceous Section
TOC 2-3.7%
250-550 feet net pay
8-16% porosity
130-210 MMBO/sq mile
Villeta
faulted out
3
1,160’
gross
1
2,040’
gross
Cretaceous Shales
on or near blocks VSM14-15
Villeta
La Luna
Tetuan
2
1,750’
gross
Log analysis by NuTech Shale Vision
HC filled porosity
Permeability
La Luna
Tetuan
3 |
 NuTech Log Analysis
Unconventional Reservoirs –
Comparison
NYSE: HNR
www.harvestnr.com
19
Eagleford
1
1
La Luna
Middle Mag
Niobrara
3
3
Feet
100
200
300
350
0
VSM 14/15 La Luna
VSM 14/15 Tetuan |
 Why
Invest in Harvest? NYSE: HNR
www.harvestnr.com
20
Significant Valuation Gap
Currently trading at 1/3 of the after-tax proceeds from failed
Petrodelta sale
Trading at a discount to valuation of contingent resources for
existing discoveries in Dussafu Block in Gabon
Near-term development with first oil by first half 2015
High-impact exploration portfolio in pre-salt offshore
Two blocks onshore Colombia in government approval stage
Large scale potential in unconventional and conventional
|