Greenbond – Australia – Oil & Gas Assets
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Tina Vital | Managing Director
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(917) 432-8474
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OVERVIEW
Greenbond Group, Inc. is seeking +/-$817 million (excluding $10 million in prior investment) to purchase oil & gas producing and development assets offshore Western Australia.
- Private acquisition of producing oil & gas assets – estimated PV10 valuation near $460 million (details provided separately, upon discussion with Greenbond)
- Five-year oil development assets – +/-$20 million acquisition from Kato Energy Pty Ltd (plus $17 million start-up and $285 million development)
- contingent oil resources of 21.6 million barrels and prospective resources of 61.4 million barrels across two shallow water oil developments (fully drilled and many wells appraised) located in the Dampier sub-basin of the Carnavon Basin
- seismic analysis improved and de-risked additional prospects in the blocks; full 3-D seismic reprocessing over Amulet/Talisman; seismic amplitude and inversion work over all resources
- Experienced global oil & gas management team – expertise in onshore and offshore oil & gas exploration, development, and production, as well as drilling and oilfield services
OPPORTUNITY
Worldwide oil & gas production assets outside of OPEC is limited – assets located in politically and economically stable, non-OPEC locations (such as Australia) are highly valued.
- Global upstream oil & gas reserves continue to deplete on increased production amid limited experienced labor
- Non-OPEC oil & gas producers, such as the supermajor and major oils continue to struggle to maintain their upstream production and expertise
- As a result, there is increased interest in non-OPEC offshore drilling, as onshore production is challenged by decline rates
AUSTRALIA – LARGEST GLOBAL EXPORTER OF LNG
Successful history of oil & gas exploration & production since the 1960s, culminating in Australia becoming the largest exporter of LNG, as of 2022.
- Stable democracy, governed by Rule of Law – low sovereign risk and attractive fiscal terms
- Strategically located to service the strong Asian LNG markets – such as Japan, South Korea, and Taiwan
AUSTRALIA – OIL & GAS OPERATING ASSET MAP
SOLUTION/STRATEGY
Greenbond Group is a U.S.-based independent oil & gas exploration & production company focused on oil & gas assets offshore Northwest Shelf of Australia, assisted by its oilfield service and drilling subsidiary.
- Five-year oil production & development project – payback expected within 1.4 years
- Contingent oil resources of 21.6 million barrels in Phase 1 – Amulet and Talisman, and Phase 2 – Corowa; and unrisked prospective resources of 61.4 million barrels in Phase 1 – Gandalf, Saruman, Gem and Arwen, and Phase 2 – Stonehedge, Stonehedge West and Avebury
- Offshore Project Proposals (OPPs) have been approved by NOPSEMA (Regulator) for Amulet/Talisman and Corowa
KATO ENERGY PTY LTD – FIELD MAP
Kato holds three hub locations (100% working interest) in shallow waters, offshore Australia’s West Shelf – focused on oil resources (gas quantities not present in commercial volumes).
- Phase 1 – Amulet/Talisman (current production & development)
- Phase 2 – Corowa (current production & development)
- Phase 3 – Blencathra (n/a; future development & exploration)
KATO ENERGY PTY LTD – PERMIT STATUS
All permits have been satisfied to-date.
- Sky Resources Pty Ltd is a shareholder of Kato
PHASE 1 – AMULET OIL RESOURCES
Amplitude response relationship to structure.
- Indicates anomaly crosses depth structure and is not contained within a satellite structural crest
- Look of a ‘geo-body’, with low-side interpretation – represents a cemented channel faces or coaly facies
- Alternative high-side interpretation – represents a channelized sand-body in a combination structural/stratigraphic trap
PHASE 1 – TALISMAN OIL RESOURCES
Time Structure (Top Mira Marl & Base Toolonga Calcilutite).
- Expansion of overall structure and attic to NW from base-case to high-case interpretation
- Full model rebuild from new seismic reprocessing and geological model; numeric simulation history match provided the certified range or resources
- Alternative high-side interpretation – represents a channelized sand-body in a combination structural/stratigraphic trap
PHASE 2 – COROWA OIL RESOURCES
Top Birdrong Reference Case DSM.
- Similar form to Reference Case Depth Structure Map, but depth structure raised slightly to the East (as would be expected with the residual Corowa East-1 mis-tie) and depressed by a similar magnitude to the West and North (as might be expected by the residual Corowa Flank-1 mis-tie)
PHASE 1 & 2 – OIL FIELD PRODUCTION & DEVELOPMENT
PHASE 1 & 2 – OIL FIELD RESOURCES
MANAGEMENT
Joseph Samuel Graham – Chief Executive Officer
Over 25 years of petroleum engineering and management experience. Chief Executive Officer, Skye Energy Ventures (Australia). Chief Executive Officer, KATO Energy (Australia). Oil and gas consultant specializing in optimizing data and production forecasting; provided support to energy companies globally in Asia, North and South America, Europe and the Middle East. Previously served as Technical Director at the Information Store (Houston); Senior Petroleum Engineer at Chevron Corporation (Australia); Principal Petroleum Engineer at Helix RDS (Australia, Scotland); and Mining Engineer and Mine Surveyor for Goldfields (Australia). Post Grad Diploma in Petroleum Engineering, Curtin University. B.S. in Mining and Engineering Surveying, West Australian School of Mines.
Lars Elias Olrik – Chief Operating Officer
Over 20 years of professional experience in executive management and management consulting focused on developing technology and energy-based businesses internationally. Vice President of Business Development at DATAGRATION Solutions; Co-Founder Datagration Inc; Founder and Partner at EMCO Partners; Advisor at Zenarus Ltd. Former Chief Executive Officer at Phoenix D.A.S; Verdande Technology; and Keronite. Previously held executive management roles across multiple industries including Chief Operating Officer at Smart Cell International Ltd; Managing Director at Covisint Europe; Vice President of CAP Gemini (U.K.); and Principal at Peter Chadwick Ltd (U.K.). Served in the Royal Danish Guard (military service). B.A. in Economics and Agriculture from the University of Copenhagen (Denmark) and Royal Agriculture University (UK).
Brian Marshall – Chief Financial Officer
Over 19 years of investment and finance experience focused in private equity, debt, real estate, operations and governance. Chief Financial Officer, Elk Avenue Capital (fka Rising Covey Ventures). Previously served as Chief Financial Officer at DealerBuilt; Vice President – Finance at Newquest Crosswell; Manager of Corporate Development (Operating Partner) for LKCM Distribution (Houston-based private equity backed platform). MBA from Rice University. M.S. and B.BA. in Accounting, Texas A&M University.
Guy Fortune Feasey – Senior Vice President
Over 25 years of operations, sales and business management experience in the oil & gas industry across all aspects of upstream oil & gas drilling, completion, and evaluation. Since 2019, founder and Chief Executive Officer Render, LLC, a management consulting firm focused on developing new and innovative oilfield service technologies. Since 2018, General Manager at NeoOiltools, LLC (North America). Past Vice President of Sales & Marketing at Weatherford International (global); Operations Manager at Corpro (Asia Pacific); Petroleum Geologist at Baker Hughes Inteq (New Zealand); and Field Geologist at Delta Gold. B.S. in Geology from the University of Otago (New Zealand).
Andrew Hogan – Head of Drilling and Completion
Over 39 years of upstream oil and gas geological experience focused on onshore and offshore directional drilling, HPHT wells, semi sub and jackup MODUs. Since 2020, Director for Networked Energy Consulting Pty Ltd (upstream oil and gas consultancy). Previously served as Global Marketing Manager, General Manager – Business Development for COSL (Europe, Australia); Account Manager, Drilling Services Product Line Manager, District Manager, Operations Manager for Baker Hughes (Teleco Oilfield Services); Field Geophysicist for Conroy Petroleum and Natural Resources (Ireland); and Mud Logger and Data Engineer for Geoservices International (UK, Asia). M.S. in Applied Geosciences from University College (Ireland). B.A. in Natural Sciences – Geology from Trinity College (Ireland).
FOOTNOTES:
Overview
Solution/Strategy
Kato Energy Pty Ltd – Oil & Gas Field Map
Phase 1 & 2 – Oil Field Production & Development
Phase 1 & 2 – Oil Field Resources
(1) Kato Energy – ERCE – Competent Person Report Contingent Resources – Amulet Field WA-8-R – Nov 2021
(2) Kato Energy – ERCE Australia Pty Ltd – Competent Person Report Contingent Resources – Talisman Field WA-8-L – Jan 2022
(3) Kato Energy Pty Ltd – ERCE – Competent Person Report Contingent Resources – Corowa Field WA-41-R – March 2022
(4) Skye Resources – ERCE – Blencathra Cluster Technical Report – 220318
(5) Kato Energy – ERCE Australia Pty Ltd – Competent Person Report Contingent Resources – Talisman Field WA-8-L – Jan 2022
(6) Kato Energy Pty Ltd – ERCE – Independent Technical Review – 220317
Australia – Largest Global Exporter of LNG
(7) https://www.oilandgas360.com/lng-could-contribute-55-billion-to-australias-gdp/
(8) Statista.com/statistics/1262074/global-lng-export-capacity-by-country/
(9) https://www.statista.com/statistics/1338931/australia-lng-export-leading-markets-by-country/
Australia – Oil & Gas Operating Assets Map
(10) https://www.oilandgas360.com/lng-could-contribute-55-billion-to-australias-gdp/
Kato Energy Pty Ltd – Field Map
Kato Energy Pty Ltd – Permit Status
(17) Kato Energy – map created by Darius Jablonski – 2021
(18) Carnarvon Petroleum Ltd – NOPTA – Request for extension of application period for Retention License – Outtrim Location – 231018
(19) Skye Energy – TAP Santos Kufpec – Transfer of Title -Offshore Petroleum License WA-8-L – FULLY EXECUTED -190822
(20) Tamarind Corowa Pty Ltd – Hydra Kufpec – Transfer of Title -Offshore Petroleum License WA-41-R – FULLY EXECUTED -181219
(21) Kato Corowa Pty Ltd – Tamarind Corowa Pty Ltd – Certificate of Registration on Change of Name – FULLY EXECUTED – 211006
(22) Kato Amulet Pty Ltd – Tamarind Amulet Pty Ltd – Certificate of Registration on Change of Name – FULLY EXECUTED – 211006
(23) Kato Energy (WA) Pty Ltd – Hydra Energy (WA) Pty Ltd – Certificate of Registration on Change of Name – FULLY EXECUTED – 211006
(24) Skye Resources Pty Ltd – State of WA – Renewal of Petroleum Retention Lease TR3 – FULLY EXECUTED – 220812
(25) Skye Resources Pty Ltd – State of WA – Letter Approval for Application for Renewal of Retention Lease TR3 – signed MK – 220822
(26) Carnarvon Petroleum Ltd – Skye Carnarvon – Transfer of Petroleum Exploration Title WA-155-P – FULLY EXECUTED – 200918
(27) NOPTA – Extension of Application Period – Outtrim Location – WA-155-P – FULLY EXECUTED – 231101
Kato Energy Pty Ltd – Permit Status
(27) NOPTA – Extension of Application Period – Outtrim Location – WA-155-P – FULLY EXECUTED – 231101
(28) Carnarvon Energy Ltd – Petroleum Exploration Permit WA-155-P – Annual Title Assessment Report – 230613
(29) Carnarvon Petroleum Ltd – Skye Resources Pty Ltd – Transfer of Petroleum Exploration Title WA-155-P – FULLY EXECUTED – 230509
(30) Skye Exploration / Resources Pty Ltd – Carnarvon Energy Ltd – Sale and Purchase Agreement WA-155-P – FULLY EXECUTED – 230509
(31) Carnarvon Petroleum Ltd – NOPTA – Approval for Suspension and Extension of Petroleum Exploration Permit WA-155-P – 210928
(32) Australia – NOPTA – Variation Suspension Extension of Petroleum Exploration Permit WA-155-P – signed GAW – 210928
(33) Carnarvon Petroleum Ltd – Quadrant Permits Pty Ltd – NOPTA – Renewal of Petroleum Exploration Permit WA-155-P – FULLY EXECUTED – 231101
(34) Kato Energy – Australia – Renewal of Petroleum Retention Lease WA-41-R – FULLY EXECUTED – 240823
(35) Kato Energy – Australia – Letter Notification – Renewal of Petroleum Retention Lease WA-41-R – 240823
(36) Skye Energy – Australia – Renewal of Petroleum Retention Lease TR-3-R4 – TTP-RLR-0006 – FULLY EXECUTED – 220812
Phase 1 – Amulet Oil Resources
Phase 1 – Talisman Oil Resources
(37) Amulet – Subsurface Review – Mark O-Clery – 200325
Phase 3 – Corowa Oil Resources
(38) Hydra Energy – Corowa – Subsurface Review – Rev D – 200221
Phase 1 & 2 – Oil Field Production & Development
Phase 1 & 2 – Oil Field Resources
(39) Hydra Energy – Reservoir Modeling Report – Amulet Field – Calypso Formation – WA-8-L -180818
(40) Kato Energy (WA) Pty Ltd – ERCE – WA-8-L Independent Technical Review – P5847 – 220603
(41) Kato Energy Pty Ltd – ERCE – Independent Technical Review – Avebury Stonehedge – 220317
(42) Greenbond management estimates
SPECIFIC RISKS
Financial models and other supporting information regarding historical data, hypothetical target returns, contextual analysis, and other pertinent matters will be made available to prospective investors upon request. There is no guarantee of success, and there is a potential for loss of your investment.
Risks related to early-stage company
- Limited financial history, limited assets, and cash flows
Risks related to liquidity
- Insufficient capital to acquire/develop oil & gas assets, and/or drilling rig(s)
Risks related to commodity prices
- Oil & gas prices are impossible to predict and historically have been cyclical in nature
Risks related to the economy
- Decline in economic demand could negatively impact prices and demand, and prevent expected returns on investment
Risks related to geology
- Search for oil & gas involves a high degree of risk including dry holes and lower than expected concentration or production volumes
Risks related to operations
- Higher than expected drilling costs, blowouts or fires, unexpected equipment / supply chain bottlenecks
Risks related to key persons
- Expertise is concentrated in a few executives; expansion will require finding experienced executives, geologists, and engineers to fill open positions
Risks related to competition
- Oil & gas industry is highly competitive with new wells coming on line and new companies entering the market vying for a relatively static and selective pool of prospects, leadership and labor. Existing and/or new entrants, some with deep pockets and global operations, could develop and/or expand to compete in Greenbond markets
Risks related to the regulation and politics
- State and federal government permits must be in-place in order for drilling and production
- New legislation and/or change in regulation could negatively impact operations and/or costs
Private securities are speculative, illiquid, and carry a high degree of risk – including the loss of the entire investment.