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| 8-K - FORM 8-K - TELLURIAN INC. /DE/ | d8k.htm |
 NASDAQ:
MPET www.magellanpetroleum.com
SEAAOC Darwin 1
SEAAOC
William H. Hastings
23
rd
September, 2010; Darwin
Exhibit 99.1 |
 NASDAQ:
MPET www.magellanpetroleum.com
SEAAOC Darwin 2
Forward Looking Statements
Except
for
historical
information,
this
presentation
contains
forward
looking
statements
and
information
with
respect
to
net
oil
and
gas
reserve
assertions,
valuations
and
key
development
assumptions
and
timing,
gas
sales
in
Australia
and
its
valuation,
potential
development
projects,
and
exploration
and
drilling
plans.
These
statements
are
subject
to
risks
and
uncertainties
that
could
cause
actual
results
to
differ
materially
from
those
expressed
or
implied
from
such
information.
Among
these
risks
and
uncertainties
are
the
ability
of
Magellan
Petroleum
Australia
Limited
(“MPAL”),
with
the
assistance
of
the
Company,
to
successfully
and
timely
close
the
Evans
Shoal
acquisition,
the
ability
of
the
Company
to
successfully
secure
financing
and/or
offtake
opportunities
necessary
to
implement
a
strategy
for
methanol
development,
pricing
and
production
levels
from
the
properties
in
which
Magellan
and
MPAL
have
interests,
the
extent
to
which
demand
for
methanol
continues
to
grow
in
targeted
markets,
the
extent
to
which
methanol
can
be
used
as
an
economical
fuel
alternative,
the
extent
of
the
recoverable
reserves
at
those
properties,
the
profitable
integration
of
acquired
businesses,
including
Evans
Shoal,
the
future
outcome
of
the
negotiations
for
gas
sales
contracts
for
the
remaining
uncontracted
reserves
at
both
the
Mereenie
and
Palm
Valley
gas
fields
in
the
Amadeus
Basin,
including
the
likelihood
of
success
of
other
potential
suppliers
of
gas
to
the
current
customers
of
Mereenie
and
Palm
Valley
production.
In
addition,
Magellan,
and
its
operating
subsidiaries
have
exploration
permits
and
face
the
risk
that
any
wells
drilled
may
fail
to
encounter
hydrocarbons
in
commercially
recoverable
quantities.
Any
forward-looking
information
provided
in
this
presentation
should
be
considered
with
these
factors
in
mind.
Magellan
assumes
no
obligation
to
update
any
forward-looking
statements
contained
in
this
presentation,
whether
as
a
result
of
new
information,
future
events
or
otherwise.
Oil
and
gas
issuers
are
required
to
include
disclosure
regarding
proved
oil
and
gas
reserves
in
certain
filings
made
with
the
U.S.
Securities
and
Exchange
Commission.
Proved
reserves
are
the
estimated
quantities
of
crude
oil,
natural
gas,
and
natural
gas
liquids
which
geological
and
engineering
data
demonstrate
with
reasonable
certainty
to
be
recoverable
in
future
years
from
known
reservoirs
under
existing
economic
and
operating
conditions,
i.e.,
prices
and
costs
as
of
the
date
the
estimate
is
made.
The
SEC
also
permits
the
disclosure
of
probable
and
possible
reserves
which
are
additional
reserves
that
are
less
certain
to
be
recovered.
Investors
are
urged
to
consider
closely
the
disclosures
in
Magellan’s
periodic
filings
with
the
SEC
available
from
us
at
the
company’s
website
www.magellanpetroleum.com |
 NASDAQ:
MPET www.magellanpetroleum.com
SEAAOC Darwin 3
Company Profile:
Magellan
Petroleum
Corporation,
through
its
wholly
owned
subsidiary,
Magellan
Petroleum
Australia
Limited,
and
its
majority
controlling
interest
in
Nautilus
Poplar
LLC,
is
engaged
in
the
exploration,
development,
and
sale
of
oil
and
gas
reserves
worldwide.
The
Company’s
operations
are
in
Australia,
North
America,
and
in
the
United
Kingdom.
The
Company
has
a
differentiated
business
model
guided
by
personnel
with
over
100
man-years
of
large
oil
company
experience.
Magellan
adds
value
to
large
assets
through
unconventional
commercial
solutions
such
as
Methanol
production
for
high
CO2
fields,
and
CO2
“tertiary”
flooding
in
overlooked
reservoir
plays.
The
Company
also
holds
23,000
contiguous
acres
overlying
Bakken
oil
shale.
Company
endeavors
include
a
significant
partner
base;
we
work
with
Petronas,
Shell,
and
Osaka
Gas,
and
Northern
Petroleum.
Business Summary:
Company Profile
Pacific -
Develop discovered/proven natural gas
fields to service growing Fuel Oxygenate and Olefins
demand in Asia; mainly China
North America -
Redevelop overlooked domestic
onshore oil fields
using Enhanced Oil Recovery
techniques and new technologies |
 NASDAQ:
MPET Magellan Petroleum Corporation www.magellanpetroleum.com
SEAAOC Darwin 4
Focus on Australian Plans
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 NASDAQ:
MPET www.magellanpetroleum.com
SEAAOC Darwin 5
•
Long-time, onshore Australian Producer
–
In business since 1954
–
25 years of gas supply to Darwin uninterrupted
–
Three fields onshore, licenses offshore
–
P1 and P2 reserves, 2.8mmbbl and 49BCF net
•
Evans Shoal and NT/P82 offshore
–
Contracts to acquire highly prospective licenses offshore
–
Potential for significant and economic Methanol plan
•
Mereenie Oil Field, onshore Australia
–
Undrilled, significant contingent resources remain
–
Large oil ring with gas cap
–
Fuel gas for industrial development in Darwin
–
Substantial potential due to new drilling technology
–
Santos is the Operator
•
Palm Valley Gas Field, onshore Australia
–
Tight, highly fractured gas reservoir
–
Current supplier of Alice Springs volumes
–
Operator, Magellan
Australia |
 NASDAQ:
MPET Magellan Petroleum Corporation www.magellanpetroleum.com
SEAAOC Darwin 6
A New Direction
Evans Shoal and Methanol
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 NASDAQ:
MPET www.magellanpetroleum.com
SEAAOC Darwin 7
Evans Shoal and Methanol
•
Methanol
production
can
use
up
to
25%
CO2
in
feedstock
–
Steam Methane Reforming
o
CH
4
+ H2O = CO + 3H2
–
Water Gas shift reaction
o
CO + H2O = CO2
+ H2
–
Methanol Synethesis
o
CO + 2H2
= CH3OH
–
Excess Hydrogen plus CO2
•
CO2
+3H2
= CH3OH + H2O
Market timing is good.
Methanol leads to reduced oil imports and more efficient fuel consumption in Asia.
It is a low-cost, environmentally-friendly feedstock for Olefins.
Our project capitalizes on China’s large CAGR and emerging Methanol derivative Markets
Methanol
Evans Shoal
•
Key role in a larger value creation chain that ends up in Olefins or fuel markets in
Asia •
Ideally situated in shallow water close to existing facilities with good reservoir data
•
Larger Companies focus on bigger LNG business at fields that don’t require CO2
management •
Evans Shoal has significant CO2 content |
 Evans Shoal
- Closest Supply
Magellan Business Model
Develop “discovered”
resource for Asia
Utilize Methanol as development tool;
1.Lowest cost Olefins feed (Polyethylene)
2.Methanol is mandated as fuel oxygenate in China
3.Methanol augments Chinese propane systems
Gas Fields
Key to China’s economy for next 50 years
Process uses CO2 |
 NASDAQ:
MPET www.magellanpetroleum.com
SEAAOC Darwin 9
Supply and Demand
Methanol
North East Asia Forecasted Annual Growth Rates of 13-15%
Current 18mmtpy or 44% of Global Demand
Forecasted 37mmpty or 57% of Global
19mmt Demand over 5years in NE Asia
Iranian and Algerian “suggested plants”
online 2014
Chinese Capacity is higher-cost Coal to Methanol
Chile/New Zealand have Gas Supply constraints
Iran and Algeria have the only
proposed supply in 5 years Globally |
 NASDAQ:
MPET www.magellanpetroleum.com
SEAAOC Darwin 10
Correlates to Oil, Cheaper than Gasoline
Correlation Factor 0.81 |
 NASDAQ:
MPET www.magellanpetroleum.com
SEAAOC Darwin 11
Pacific Methanol Market
North East Asia Projected Annual Growth Rates of 13-15%
Current 18mmtpy or 44% of Global Demand
Forecasted 37mmpty or 57% of Global Demand
Methanol Usage
Vehicle fuel
Propane Supplement
Methanol to Olefins
No
new
Pacific
Methanol
capacity
planned
13% CAGR
Indonesia 1mmt
New Zealand .9mmt
China 14mmt
India .5mmt
Malaysia 2.4mmt
Russia 3.3mmt
Europe 4.5mmt
Iran 3.5mmt
Saudi 6.6mmt
Oman 1mmt
Qatar .8mmt
EG 1mmt
Egypt 1.3mmt
Libya .6mmt
U.S. 1mmt
Trinidad 6.5mmt
Venezuela 1.4mmt
Chile 4mmt
Argentina .5mmt
2009 World Capacity –
68 mmT; 60% operating
(excess capacity is high-cost lignite feed) |
 NASDAQ:
MPET www.magellanpetroleum.com
SEAAOC Darwin 12
Asian Focus
China imports 46% of Demand currently (8.3mmtpy)
Forecasted to import 36% of Demand in 2014 (13.3mmtpy)
Chinese Production
60% Coal (Higher-Cost Coal to Methanol)
22% Natural Gas
18% Coking Gas
Chinese Utilization rate averages below 50% driven by costs and
coal |
 NASDAQ:
MPET www.magellanpetroleum.com
SEAAOC Darwin 13
Market Changing Fast |
 NASDAQ:
MPET www.magellanpetroleum.com
SEAAOC Darwin 14
Evans Shoal
Competitive Advantage
•
Contract to acquire 40% interest in field
–
Other owners are Shell (25%), Petronas
(25%), Osaka Gas (10%)
•
Hub Location (up to 80TCF in Bonaparte Basin)
•
Full 3D seismic coverage
•
Shallow water, huge structure
•
Close to markets, particularly China
•
Low marginal development cost
•
Proximity to Darwin and its facilities and port
Up to 8 TCF -
Methanol
Central
Darwin
Bayu
Undan
LNG
East Jetty
NT Power Plants |
 NASDAQ:
MPET www.magellanpetroleum.com
SEAAOC Darwin 15
Evans Shoal
Abadi
10-14.5 TCF
Inpex
Evans Shoal
Up to 8 TCF
MPET-Shell-Petronas-Osaka Gas
Caldita
-
Barossa 8 TCF
COP-Santos
Evans
Shoal
Heron /Blackwood 1.5 TCF
MEO Australia
•
Evans Shoal-2 DST 25.5mmscf/d in upper third
of Elang
Plover
•
Drilled by Shell in 1998 to 3,850meters |
 NASDAQ:
MPET www.magellanpetroleum.com
SEAAOC Darwin 16
Next Steps & Timeline
Evans Shoal
MAR10 –
Enters into Agreement to purchase 40% interest in Evans Shoal
from Santos
JUNE 10 -Commonwealth / FIRB
Letter stating “no objections”
received
AUG10 -
Northern Territory
Approval received
Q4 10 -
Methanol Site Development
Gain approvals, establish team.
Access to water, facilities, market is good
Next to key existing projects & infrastructure
Q410 –
Santos Payment AUS$85mln (US$79 mln)
Q4 10 -
Financial and Offtake
Partner(s)
•
Q4 10 –
Development Strategy
Key co-owner discussions
Key development plan work next year
New wells and targeted seismic
2011 -
Further Testing / Offtake
/ Financing
2011
2012
2013
2014
Q3/10
Q4/10
Potential Private
or Public
Placement
Finalize Initial
Financial and
Offtake
Partners
Cash
US$35
mln
Project Finance
First
Cash Flow
Payment due
to Santos
Two wells
Seismic add
Wells #2-5
Wells 6 onward, Pipeline &
Development Facilities
First
Production
2015
Next Well -
2011
FID |
 NASDAQ:
MPET www.magellanpetroleum.com
SEAAOC Darwin 17
Corporate Profile
Walter McCann
Chairman
Ex President, The American International University
Chapel Hill, North Carolina
J. Robinson West
Chairman Designee
Chair, Petroleum Finance Corp (PFC Energy)
Washington, DC
William Hastings
President / CEO
Portland, Maine
Nikolay
Bogachev
Independent Investor
President
Young Energy Prize S.A
Annisquam, Massachusetts
J. Thomas Wilson
Oil and Gas Advisor
Denver, Colorado
Ronald Pettirossi
Head of Audit Committee
Consultant-CPA
Vero Beach, Florida
Donald Basso
Geologist, Advisor
Calgary, Canada
Robert Mollah
Geophysical Consultant
Brisbane, Australia
Directors
Bernstein Shur, Sawyer & Nelson
100 Middle Street
West Tower
Portland, Maine
04101
(207) 774-1200
Legal
Counsel
Management
William H. Hastings
Chief Executive Officer
Antoine Lafargue
Chief Financial Officer
Susan M. Filipos
Controller
Daniel J. Samela
Vice President, New Ventures
J. Thomas Wilson
Technical Advisor
Jeffrey G. Tounge
Manager, Commercial Operations
Jeff Tounge
Manager, Commercial Operations
Magellan Petroleum Corp
Tel: (207) 619-8504
Mob: (207) 850-0099
JTounge@magellanpetroleum.com
Stock Transfer Agent
American Stock Transfer & Trust
59 Maiden Lane
New York, New York 10038
(800) 937-5449
(212) 936-5100
(718) 921-8336 fax
Investor
Relations
Contact |
 NASDAQ:
MPET Magellan Petroleum Corporation www.magellanpetroleum.com
SEAAOC Darwin 18
…
A new direction
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