Attached files
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| 8-K/A - 8-K/A - HARVEST NATURAL RESOURCES, INC. | d775294d8ka.htm |
 Enercom Oil and Gas Conference
Enercom Oil and Gas Conference
August 18, 2014
August 18, 2014
Exhibit 99.1 |
 Forward Looking Statements
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 2013 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 About Harvest
NYSE: HNR
www.harvestnr.com
3
Market Data
Exchange/Ticker
NYSE: HNR
Market Capitalization *
$ 202 MM
Enterprise Value *
$ 194 MM
Cash (06/30/2014)
$ 8.1 MM
Debt (06/30/2014)
$ 0 MM
Shares Outstanding
42.1 MM
Institutional Ownership
71.5%
*
As of August 14, 2014 |
 Highlights
Highlights
NYSE: HNR
www.harvestnr.com
4
Venezuela continues strong production growth
Up 11% in 2013
2Q 2014 production 45,073 bopd, up 13% vs. 2013 average
Venezuela sale pending government approval
Estimated $220 million net proceeds after tax and other costs
Gabon valuation improving based on success
“2 for 2”
Harvest exploration discoveries in 2011 and 2013
Exclusive Exploitation Authorization received
3
rd
party
Contingent
Resources
Report
confirms
discovered
volumes
Acquired new 3D seismic on outer third of block
New 3D confirms the large structures seen on 2D
Exit from Indonesia and China blocks |
 Venezuela –
Venezuela –
Petrodelta
Petrodelta
NYSE: HNR
www.harvestnr.com
5
20.4% Equity Interest in Petrodelta
Six fields, 9.9 billion barrels of gross
oil-in-place
Growth underway
Average 45,073 bopd in 2Q 2014
Successful development program
ongoing in Temblador, Isleño and
El Salto
Six drilling rigs operating
El Salto –
23,000 bopd
Temblador –
10,000 bopd
Isleño –
3,500 bopd
Sale of entire interest progressing
Sold 11.6% interest in Dec 2013 for
$125 million
Pending close of sale of remaining
20.4% interest for $275 million
Net proceeds after tax and closing
costs estimated $220 million
Subject only to Venezuela
government approval
2010
2011
2012
2013
8.9
11.8
South
Monagas
Unit
(SMU):
Uracoa,
Tucupita,
Bombal
13.5
50.0
38.4
20.7
103.6
103.8
100.2
62.2
220.6
210.5
204.6
125.1
15.0
43.3
Production (MMBOE, Gross)
Proved Reserves (MMBOE, net to Harvest)
2P Reserves (MMBOE, net to Harvest)
3P Reserves (MMBOE, net to Harvest)
New Fields:
El
Salto,
Temblador,
Isleño
Total Area Petrodelta’s Fields: 1000.03 Km²
|
 Gabon
– Gabon –
Dussafu Block
Dussafu Block
NYSE: HNR
www.harvestnr.com
6
680,000 acre PSC, Offshore Gabon
Harvest 66.667% operated interest
3
rd
Exploration Period
Extends to May 27, 2016
Work commitments fulfilled
Key Harvest Activities
Discovered Ruche (2011) and Tortue
(2013)
Contingent Resources Report (2014)
Development of the four oil discoveries
Declaration of Commerciality by partners
in March 2014
Exclusive Exploitation Authorization
(EEA) received July 17, 2014
850.5 sq km (~ 210,160 acres)
Outboard 3D Seismic in 2013
Improves imaging over current
discoveries
Confirms the large Dentale structures
seen on 2D
Improved imaging of new targets below
the Dentale
Raw PSDM expected Sep 2014
Yombo
Etame
M’Bya
GABON
Moubenga
Ruche
Tortue
Walt Whitman
HNR DUSSAFU BLOCK
GAMBA PROSPECTS
GAMBA LEADS
DENTALE LEADS
OIL FIELDS
GAS DISCOVERY
GMC-1X
RUCHE EEA |
 Ruche
and Tortue Main Pay Zones Ruche and Tortue Main Pay Zones
NYSE: HNR
www.harvestnr.com
7
Ruche Gamba Sand Structure Map
DRM1 ST1
DRM1 ST2
DRM1
Oil/Water Contact
2 km
Tortue Dentale 6 Sand Structure Map
DTM 1 ST1
DTM 1
Oil/Water Contact
2 km
Ruche main pay zone is the Gamba sand, with
additional pay in stacked Dentale sands
Tortue main pay is Dentale 6 sand, with
additional pay in Gamba sand and Dentale
sands 2 through 5 |
 Cluster Development of Oil Discoveries
Cluster Development of Oil Discoveries
NYSE: HNR
www.harvestnr.com
8
Contingent Resources Report
1C: 17.0 mmbo gross
2C: 36.3 mmbo gross
3C: 70.6 mmbo gross
Work-In-Progress
FEED for facilities/equipment
FPSO selection
Well completion design
Logistics planning
First production by 2H 2016
First oil 21 months after project sanction
Project sanction expected at year-end
Drilling commences first half of 2016
FPSO installed 2Q 2016
Continued development of nearby
structures
Contingent Resources Report prepared by Gaffney, Cline & Associates with an
effective date of December 31, 2013 based on the development plan provided by Harvest in November 2013 using
SPE/PMRS guidelines. The report concludes that the potentially recoverable volumes are
classified as Contingent Resources pending a Declaration of Commerciality and government approval of the
Field Development Plan.
Ruche EEA
Layout for sub-sea tiebacks to FPSO at Ruche
Walt Whitman
GAMBA PROSPECTS
GAMBA LEADS
DENTALE LEADS
OIL FIELDS
Moubenga
Ruche
31.5 km
Tortue |
 Dussafu Gamba Oil Resources
Dussafu Gamba Oil Resources
NYSE: HNR
www.harvestnr.com
9
Tortue
Ruche
Walt Whitman
Ruche EEA
Gamba Oil
Reservoir
Gamba Prospect
Gamba Lead
Gamba Sand the historical
main objective
Immediately below salt
Very continuous
High quality
Low-risk undrilled structures
New seismic improving imaging
Similar in size to Ruche and
Tortue discoveries
Future expansion opportunity
Close to discoveries
Short cycle time to production
Low-cost
Gamba only the “first act”
Dentale potential coming into
focus
Deeper “syn-rift”
tilted fault
blocks now recognized on 3D
0 2 KM
|
 New
Plays Confirmed by New 2013 3D New Plays Confirmed by New 2013 3D
NYSE: HNR
www.harvestnr.com
10
Structural Cross-section Across Dussafu Block
Syn-rift
Fault Blocks |
 2013
Outboard 3D – 2013 Outboard 3D –
Dip Line PSTM
Dip Line PSTM
NYSE: HNR
www.harvestnr.com
11
10 km
Tortue/Ruche
1994 3D Coverage Limit
Prospectivity in Dentale folds and Syn-rift blocks
Dentale
Salt
Mobile Shale
Syn-rift
Fault Blocks |
 Dentale
Dentale
Lead
Lead
3
3
(3D
(3D
PSTM)
PSTM)
4km
NYSE: HNR
12
www.harvestnr.com
A
Geology
4-way closure
Stacked Dentale sands
Scale of target
Vertical closure of 130m over area of 12 km
2
P50 oil-in-place of 250 mmbo
About 4x Tortue Dentale 6 sand
Intra Dentale Structure
A
Salt
Dentale
Mobile Shale
Lead 3
Lead 1
Lead 2 |
 Outboard Dentale Leads Based on 2D Aug 2013
Dussafu Outboard Leads From 2D
Dussafu Outboard Leads From 2D
NYSE: HNR
www.harvestnr.com
13
Large Dentale Structures on 2D
Close to Ruche and Tortue
150 –
700 meters water depth
30 –
200 million bbl oil (P50)
Large structures confirmed
Currently being mapped
P50-P10
Recoverable
MMBO
Tortue
20 km
Ruche
200-500
MMBO
110-250
MMBO
140-270
MMBO
50-100
MMBO
30-50
MMBO
60-140
MMBO
Prompted 3D Acquisition in 2013 |
 NYSE: HNR
www.harvestnr.com
14
Comparison of 2D and 3D Seismic
Comparison of 2D and 3D Seismic
2D Seismic 1991 PSTM
3D Seismic 2013 PSTM |
 Geology
Fault-separated twin 4-way closures
Stacked Dentale sands
Scale of combined target
Vertical
closure
of
600m
over
area
of
66
km
Combined P50 oil-in-place of 1.8 billion bbl
Dentale
Dentale
Outboard
Outboard
Leads
Leads
1
1
&
&
2
2
(3D
(3D
PSTM)
PSTM)
NYSE: HNR
www.harvestnr.com
15
Lead 3
Lead 1
Lead 2
Salt
15 km
Lead 1
Lead 2
Mobile
Shale
Dentale
Lead 1
Lead 2
Intra Dentale Structure
2 |
 www.harvestnr.com
Dentale Outboard Leads 1 & 2 (3D PSTM)
Dentale Outboard Leads 1 & 2 (3D PSTM)
16
Dip Lines
Lead 2
Lead 1
Salt
Dentale
Mobile Shale
Salt
Mobile Shale
Lead 3
Lead 1
Lead 2
8 km
8 km
Dentale
Lead 1
Lead 2
NYSE: HNR |
 Why
Invest in Harvest? Why Invest in Harvest?
NYSE: HNR
www.harvestnr.com
17
Catalyst-Rich in Near Term and Beyond
Debt-free
Currently trading at less than the net proceeds expected
from the sale of Venezuela business
Gabon Dussafu block provides solid value and compelling
upside
Contingent resources confirmed
Exploitation
Area
approved
covering
850.5
km
2
Development planning progressing toward project sanction
First production planned for second half 2016
New 3D confirms the larger Dentale structures outboard and
new play in the syn-rift tilted fault blocks |