2. 2TERRA NOVA CORPORATE PRESENTATIONTSX-V : TGC | OTCQX: TNVMF
This presentation contains “forward-looking information” which may include,
but is not limited to, statements with respect to the future financial or
operating performance of Terra Nova Energy Ltd. (the “Company”). Often, but
not always, forward-looking information can be identified by the use of words
such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”,
“forecasts”, “intends”, “anticipates”, or “believes” or variations (including
negative variations) of such words and phrases, or statements that certain
actions, events or results “may”, “could”, “would”, “might” or “will” be taken,
occur or be achieved.
Forward-looking information involves known and unknown risks and
uncertainties that may cause the actual results, performance or achievements
of the Company to be materially different from any future results, performance
or achievements expressed or implied by the forward-looking information.
Such factors include, among others, general business, economic, competitive,
political and social uncertainties; the actual results of current exploration
and drilling activities; actual results of reclamation activities; changes in
labour costs or other exploration costs; conclusions of economic evaluations;
changes in project parameters as plans continue to be refined; future prices
of hydrocarbons; accidents, labour disputes and other risks of the oil and gas
exploration industry; delays in obtaining governmental approvals or financing
or in the completion of wells or integration with hydrocarbon collection
infrastructure; and other acts of God or unfavourable operating conditions
and losses; political instability, insurrection or war.
Forward looking information is based on a number of material factors and
assumptions, including the determination of reserves or resources, if any; the
results of exploration and drilling activities, the availability and final receipt
of required approval, licenses and permits; that sufficient working capital
is available to complete proposed exploration and drilling activities; that
contracted parties provide goods and/or services on the agreed time frames;
the equipment necessary for exploration is available as scheduled and does
not incur unforeseen break downs, that no labour shortages or delays are
incurred and that no unusual technical problems occur. While the Company
considers these assumptions may be reasonable based on information
currently available to it, they may prove to be incorrect. Actual results may
vary from such forward-looking information for a variety of reasons, including
but not limited to risks and uncertainties discussed above.
The Company intends to discuss in its quarterly and annual reports referred
to as the Company’s management’s discussion and analysis documents,
any events and circumstances that occurred during the period to which
such document relates that are reasonably likely to cause actual events or
circumstances to differ materially from those disclosed in this presentation.
New factors emerge from time to time, and it is not possible for management
to predict all of such factors and to assess in advance the impact of each
such factor on the Company’s business or the extent to which any factor,
or combination of factors, may cause actual results to differ materially from
those contained in any forward-looking information.
FORWARD LOOKING STATEMENTS
3. 3TERRA NOVA CORPORATE PRESENTATION
TERRA NOVA’S MISSION
Focused on exploring for and developing low
cost, high margin oil and gas opportunities in safe
jurisdictions within the Pacific Rim Region to service
its growing demand for energy
4. 4TERRA NOVA CORPORATE PRESENTATIONTSX-V : TGC | OTCQX: TNVMF
TERRA NOVA ENERGY LTD.
RECENT
TRADING
$.16
Closing Price
(3/27/2015)
$.06 - $.25
52 - Week
Range
73k
Avg. Daily Volume
3 - Month
3
All information as of March 27, 2015 unless otherwise stated.
CAPITAL
STRUCTURE
ENTERPRISE
VALUE
87.5
Million
Shares Out
7.4
Million
Options Out
1.9
Million
Warrants Out
$14
Million
Market Cap
$0
Million
Convertible Debt
$3,085,000
Cash as of 2/23/2015
(Unaudited)
CORPORATE OVERVIEW: TSX-V: TGC | OTCQX: TNVMF
5. 5TERRA NOVA CORPORATE PRESENTATION
INVESTMENT HIGHLIGHTS
STRONG MANAGEMENT
with expertise in natural resource exploration development
and financing as seen with the recent success of Pacific LNG
HIGH MARGIN CASH FLOWS
generated in numerous recent western flank discoveries
have had a return on investment of under one year
UNDER EXPLORED
flanks of the Cooper Basin are the prime focus of new oil and
gas exploration
RIGHT LOCATION
Central to Australia’s extensive pipeline infrastructure and in
close proximity to Southeast Asian Markets
6. 6TERRA NOVA CORPORATE PRESENTATION
THE TERRA NOVA TEAM
HENRY ALDORF
Chairman + Chief Executive Officer
Mr. Aldorf has 37 years of experience in the
petroleum and chemicals industry and is
currently President of Pacific LNG Operations
Ltd., which recently landed a deal with Oil Search
Ltd. for $900M USD plus further contingent
payments
MATT ANDERSON
Chief Financial Officer
Chartered Accountant and Senior Consultant with
Malaspina Consultants Inc., a private company that
provides financial services to public companies,
previously the CFO of I-Minerals Inc., Search
Minerals Inc. and Dynamic Oil & Gas Exploration Inc.
CHAS LANE
Country Manager, Australia
Petroleum geologist, with 30 years experience
in exploration and production operations
around Australia including the discoveries
and development of the Mirage, Growler and
Snatcher Oilfields in Cooper/Eromanga Basin
NICO CIVELLI
VP Finance + Director
Independent financial advisor who provides
financial consultancy services by working closely
with several leading European and North
American asset managers, which specialize in
the natural resources
ISTVAN GYORFI
Exploration Manager, Australia
Geophysicist and Reservior Engineer with
extensive exploration experience and track
record in discovering hydrocarbons. Most
recently at Pacific Rubiales Corp. in Columbia
and other companies including MOL, PDVSA
and GDF Suez
TECHNICAL + CAPITAL MARKET EXPERIENCE
CARLO CIVELLI
Senior Advisor
Founder of Pacific LNG Operations Ltd. and
Clarion Finance Pte. Ltd. with over 30 years of
experience in the venture capital and natural
resources sector, having financed at least a
dozen early stage investments which developed
into billion dollar market cap companies
7. 7TERRA NOVA CORPORATE PRESENTATIONTSX-V : TGC | OTCQX: TNVMF
WHY AUSTRALIA?
STRATEGIC LOCATION
Ideally situated to supply China, Japan and other
Southeast Asian countries
POLITICAL STABILITY
Australia has the lowest risk of political instability in the
region and 4th lowest in the worlds
BUSINESS FRIENDLY
Of the 34 OECD countries, Australia has the fewest
restrictions on product markets and least government
ownership of business
GROWTH MARKET
#1 ranked country to replicate unconventional oil success
of the US with an estimated 1.7 trillion barrels of oil
equivalent (BOE)1
1
Lux Research Inc. January 14, 2014 Source: Government of South Australia, DMITRE
OIL AND GAS PIPELINE NETWORK
8. 8TERRA NOVA CORPORATE PRESENTATION
INCENTIVES AND LICENSING
ATTRACTIVE FISCAL TERMS
• Federal Royalty 10%
• Native Trust Royalty 1%
• Corporate Tax Rate 30%
DATA ACCESS
All geological data available in the public domain after
two years
PETROLEUM
EXPLORATION LICENSE
Maximum Area: 10,000 sq km per license
Initial Term of Tenement: 5 years
Relinquishment End of Term: 50%
Renewal Term: 5 years
PETROLEUM
PRODUCTION LICENSE
Maximum Area: 100 sq km per license
Initial Term + 1st Renewal Term: N/A
Industry Respondent
2013 Fraser Institute Global
Petroleum Survey
Favourable
fiscal terms,
exploration is
incentivized,
regulations
transparent.
Ease of access
to authorities
and technical
data.
”
“
9. 9TERRA NOVA CORPORATE PRESENTATIONTSX-V : TGC | OTCQX: TNVMF
THE COOPER+EROMANGA BASINS
COOPER BASIN OIL GAS SUCCESS RATES
JANUARY 2002 - DECEMBER 2013
NEW ENTRANTS (AFTER 2002)
Source: Government of South Australia, DMITRE
Source: Government of South Australia, DMITRE
AUSTRALIA’S MOST PROLIFIC ONSHORE PRODUCTION
LIGHT + SWEET
Oil recovered from the basin consists of
light, sweet crude oil (40 API) which receives
premium pricing
100 OIL FIELDS
and 200 gas fields discovered since the first
commercial discovery in 1963
INFRASTRUCTURE
5,600 km network of pipeline infrastructure
connecting a central processing plant in the
heart of the basin to 3 major seaports
ACTIVE AREA
Four producers in the Cooper Basin,
including industry leaders:
• Beach Energy
• Drillsearch Energy
• Senex Energy
COOPER BASIN OIL SUCCESS RATE
EXPLORATION
WELLS DRILLED
COMMERCIAL
SUCCESS RATE
TECHNICAL
SUCCESS RATE
APPRAISAL AND
DEVELEOPMENT
WELL DRILLED
COMMERCIAL
SUCCESS RATE
215 40% 46% 102 93%
OILDISCOVERIES
OIL EXPLORATION WELLS
1978
2000
2013
OILPRICES(US$)
150
125
100
75
50
25
0
120
100
80
60
40
20
0
0 50 100 150 200 250 300 350 400 450 500 550 650
10. 10TERRA NOVA CORPORATE PRESENTATIONTSX-V : TGC | OTCQX: TNVMF
AUSTRALIAN ASSETS OVERVIEW
20.66% OWNERSHIP
of two licenses located on western flank of
Cooper/Eromanga Basins
Holloman Energy* 48.50%
Perseville Investing Inc. 30.83%
3,444 SQ KM
or 850,000 acres
PEL 112 1,086 sq km (268k acres)
PEL 444 2,358 sq km (582k acres)
UNDER EXPLORED
6% of PEL 112 and PEL 444 have been shot with
3D seismic leaving a substantial exploration
upside
*Current farm-in agreement with Holloman and Perseville:
Holloman and Perseville are required to transfer an aggregate
5.83% to Terra Nova on both Petroleum Exploration Licenses
(PELs) for each well drilled to a maximum ownership of 49.83%.
Perseville is not required to transfer its earning contribution
to Terra Nova in the event that it pays its proportionate share
of the drill costs. If Perseville elects to fund its share of all five
wells, Terra Nova would obtain a 41.05% ownership.
11. 11TERRA NOVA CORPORATE PRESENTATIONTSX-V : TGC | OTCQX: TNVMF
PEL 444
SIXTEEN DRILL LOCATIONS
have been recently identified by the reprocessed Wingman
3D seismic in the Birkhead, Hutton and Namur formations
LOCATION
License is geologically similar to the Charo and Snatcher oil
fields located 21 km south of PEL 111
3D SEISMIC
80 sq km of 3D seismic was acquired in July 2013 leading
to the interpretation that the Jurassic Oil Fairway possibly
extends into PEL 444
NEARBY SUCCESS
Senex drilled 11 wells in the Snatcher oil fields which each
produce 100 - 900 barrels of oil per day (Bopd)1
1
DMITRE and Senex Energy data; initial production rates
12. 12TERRA NOVA CORPORATE PRESENTATIONTSX-V : TGC | OTCQX: TNVMF
PEL 112
LOCATION
Targets on the license are similar geologically to the
producing Butlers, Perlubie and Parsons oil fields located
to the north
3D SEISMIC
127 sq km of 3D seismic was acquired in August 2012 in
addition to reprocessing 665 sq km of 2D seismic, which
generated 40 drill targets
1,000 BARRELS
Principle reservoir target is the Namur sandstone that can
produce at rates in excess of 1000 barrels of oil per day
NEARBY SUCCESS
Production in Beach Energy’s Bauer oil field in PEL 91 near
record high at 2.4 million BOE in Q1-FY2015
1
Beach Energy, November 2014
ON TREND AREA PRODUCTION
IN DISCOVERIES WITHIN THE PAST 10 YEARS
Butlers Oil Field (2009) 1 Mmbbls; 1,425 Bopd
Perlubie Oil Field (2009) 101,000 Bbls; 560 Bopd
Parsons Oil Field (2008) 1.7 Mmbbls; 2,775 Bopd
Source: Discovery Energy Corporation, 2012
13. 13TERRA NOVA CORPORATE PRESENTATIONTSX-V : TGC | OTCQX: TNVMF
- Field makes up 66% of Senex’s ($448 million
mkt cap) total oil production*
- Field located 15 km south of the TGC’s
Wingman 3D Seismic
0 2000 4000 6000
Scale = 1:136902
8000 10000 m
0 2000 4000 6000
Scale = 1:136902
8000 10000 m
CHARO-SNATCHER PROVEN AREAS:
Seismically Constrained + Well Control
Approximately 316 hectares -
Estimated 19.8 MMBO Recoverable
WINGMAN CHANNELS SUMMED:
Seismically Constrained Areas Similar to Charo-Snatcher
Approximately 1480 hectares
NEARBY SUCCESS - THE CHARO-SNATCHER OIL FIELDS
*Senex Energy Limited, Annual Report 2014
STRUCTURAL MAP OF 3D SURVEYS SHOWING SEISMICALLY MAPPABLE CHANNEL SYSTEMS
14. 14TERRA NOVA CORPORATE PRESENTATIONTSX-V : TGC | OTCQX: TNVMF
SEVEN GROUP HOLDINGS BUYS 13.8%
OF BEACH ENERGY LTD.
RECENT DEVELOPMENTS
RECENT ACQUISITION
Media group Seven Group Holdings has began
actively acquiring Australian-focused petroleum oil
and gas companies
On February 2, 2015, they secured a relevant interest
of 13.79% in Beach Energy Limited (ASX: BPT), a major
producer in the Cooper/Eromanga Basins
NEW ACQUISITION OF PEL 570 NEAR
TERRA NOVA’S PEL 444 BLOCK
PEL 111
PEL 104
NEW ACCESS GRANTED
to New Standard Energy in one of the few
remaining substantial acreage positions within the
Cooper Basin
PROSPECTIVE POTENTIAL
2,400 sq km block on trend of a proven, producing
petroleum system and pipeline infrastructure
15. 15TERRA NOVA CORPORATE PRESENTATION
INVESTMENT SUMMARY
STRONG MANAGEMENT
with expertise in natural resource exploration development
and financing as seen with the recent success of Pacific LNG
HIGH MARGIN CASH FLOWS
generated in numerous recent western flank discoveries
have had a return on investment of under one year
UNDER EXPLORED
flanks of the Cooper Basin are the prime focus of new oil and
gas exploration
RIGHT LOCATION
Central to Australia’s extensive pipeline infrastructure and in
close proximity to Southeast Asian Markets
Kip Ferguson , CEO of Magnum Hunter Resources
January 2014
Within 12 months,
you’re not going
to have the ability
to find a deal, or
find acreage, in the
Cooper Basin.”
“
SOUTH AUSTRALIA
OIL AND GAS SALES
Source: Government of South Australia
16. 16TERRA NOVA CORPORATE PRESENTATIONTSX-V : TGC | OTCQX: TNVMF
CORPORATE HEAD OFFICE
880 - 580 Hornby St
Vancouver, BC V6C 4B6
Canada
INVESTOR RELATIONS
Tel: +1 604-200-1039
E-mail: info@terranovaenergyltd.com
CORPORATE COUNCIL: Northwest Law Group
AUDITORS: KPMG
www.terranovaenergyltd.com
TSX-V: TGC I OTCQX: TNVMF
