Greenbond – Australia NW Shelf Jackup & Oil Assets

Industry

Upstream Oil & Gas / Energy Services

Company Type

Oil Production & Development / Drilling Rigs

Location

Australia

Size

$605 Million

Investment Type

Debt / Equity
For important risk and disclaimer information, Click Here.

Contact: Tina Vital, Managing Director

Email: tvital@castleplacement.com

Cell (917) 432-8474 

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OVERVIEW

Greenbond Group, Inc. is seeking +/-$605 million (excluding $10 million in prior investment) to purchase shallow water oil assets and a new premium jackup offshore Western Australia.

  • Five-year oil production & development project, payback expected within 1.4 years – $20 million for acquisition of oil assets from Kato Energy Pty Ltd (plus $17 million start-up and  $285 million development) – contingent oil resources of 21.6 million barrels and unrisked 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
    • recent 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
  • Attractive priced newbuild premium jackup (TS Jasper) at $216 million (plus $41 million for upgrades/startup) well-suited to serve high demand market offshore Australia – capable of top tier jackup/semi-submersible dayrates
    • planned integrated RigCo service entity – provides rig services to secure the successful execution of internal oil development and external commercial services to operators in Asia
  • Experienced global oil & gas management team – expertise in onshore and offshore oil & gas exploration, development, and production, as well as drilling and oilfield services
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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
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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
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AUSTRALIA – OIL & GAS OPERATING ASSET MAP

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JACKUPS DOMINATE THE ‘HOT’ JACKUP MARKET IN SOUTHEAST ASIA

  • Dayrates for jackups has risen over the past three years on tightened utilization reflecting increased drilling activity by oil & gas producers amid robust oil prices and a shortage of available rigs
  • As of December 2023, dayrates averaged $180,000 for premium jackups in Australia versus $165,000 in Southeast Asia, and $150,000 in the Middle East
  • Dayrates for jackup rigs are projected to continue to increase, with premium jackup dayrates topping $200,00 over the next five years reflecting increased drilling activity amid a shortage of rigs and record low book orders for new rigs (less than 2% of the fleet)
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SOLUTION/STRATEGY

Greenbond Group is a US-based independent oil & gas exploration and production company focused on the acquisition, development and production of offshore oil assets in the shallow waters offshore Northwest Shelf of Australia.

  • 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
  • TS Jasper jackup rig – newbuild premium jackup well-suited to serve Australia’s offshore oil & gas market
    • Honeybee production system (MODPU and FSO) moved in sequence to each field; production wells will be dry tree completed and MODPU includes the drilling package which will be used for plugging & abandoning the wells; environmental impact minimized by having no fixed platform
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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)
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KATO ENERGY PTY LTD – PERMIT STATUS

All permits have been satisfied to-date.

  • Sky Resources Pty Ltd is a shareholder of Kato
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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
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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
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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)
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PHASE 1 & 2 – OIL FIELD PRODUCTION & DEVELOPMENT

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PHASE 1 & 2 – OIL FIELD RESOURCES

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TS JASPER DRILLING RIG (SINGAPORE)

Premium jackup rig capable of competing with semi-submersibles.

  • Low overall operating costs – less supply vessel usage due to high drilling variable deck load (VDL) of 12,000 tonnes
  • Newbuild requiring less maintenance costs
  • Active drilling fluid capacity of 9,000 barrels; rated for 500 feet water depth with advanced in-parallel on-line/off-line capabilities
  • Further enhancements planned – flexibility to use as a Mobile Offshore Drilling & Production Unit (MODPU); power system/engine upgrade; install ESG equipment to reduce carbon emissions during operations
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HONEYBEE PRODUCTION SYSTEM

Flexible and mobile – Honeybee production facility has been successfully used globally.

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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).

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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/


Jackups Dominate the Hot Drilling Market in Southeast Asia
Kato Energy Pty Ltd – Permit Status
(11) GreenBond management estimates
(12) https://www.nopsema.gov.au/offshore-industry/safety/operator-nomination-and-registration
(13) S&P Global Commodity Insights – Petrodata Rigs – https://www.spglobal.com/commodityinsights/en/ci/products/oil-gas-drilling-rigs-offshore-day-rates
(14) Clarksons – TS Jasper Jackup Rig – History – signed Morten Haugan – 231209


TS Jasper Jackup Drilling Rig (Singapore)
(15) https://www.technologycatalogue.com/product_service/esgian-greenpact-rigs
(16) Rig fleet, contract info and day rates
a) https://www.valaris.com/our-fleet/default.aspx
b) https://noblecorp.com/our-fleet/fleet/default.aspx
c) https://www.diamondoffshore.com/fleet-overview
d) https://deepwater.com/investors/fleet-status-report


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
(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


Phase 1 – Amulet Oil Resources
Phase 1 – Talisman Oil Resources
(34) Amulet – Subsurface Review – Mark O-Clery – 200325


Phase 3 – Corowa Oil Resources
(35) Hydra Energy – Corowa – Subsurface Review – Rev D – 200221


Phase 1 & 2 – Oil Field Production & Development
Phase 1 & 2 – Oil Field Resources
(36) Hydra Energy – Reservoir Modelling Report – Amulet Field – Calypso Formation – WA-8-L -180818
(37) Kato Energy (WA) Pty Ltd – ERCE – WA-8-L Independent Technical Review – P5847 – 220603
(38) Kato Energy Pty Ltd – ERCE – Independent Technical Review – Avebury Stonehedge – 220317
(39) Greenbond management estimates


TS Jasper Jackup Drilling Rig (Singapore)
(40) https://www.technologycatalogue.com/product_service/esgian-greenpact-rigs


Honeybee Production System
(41) https://katoenergy.com.au/honeybee-old


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