Mon, 1 Dec 2008|
Automatically Generated Transcript (may not be 100% accurate)
Up next is pyramid when Crandall of the -- and the -- player and please come on -- thank you for attending this afternoon it's. When and Graham -- -- VP of business development for. Pyramid petroleum thinks the parent pyramid go home TOM. Here in Houston. Kermit. There's a pretty new company most of you probably haven't -- of us we work. First incorporated in 2005. As a Canadian public company. In 2007. We made. First major acquisition which was to. For a number of problems is from ConocoPhillips. In the offshore. Gulf of Mexico. This is a focus we we aren't operator posted shall award from the deep quarter and -- where we have a growth plan. The map here -- shows. The platforms we now -- of the sudden most oneself of New Orleans and green canyon. And another one south of Houston and -- the other platforms on on their. A non operated platforms in which we have interest. I think this is pretty unusual for a startup company to start off by getting into the relatively deep water -- deepest and production and facilities -- 17100 feet of water. Currently we operate. Two platforms and in green canyon. And seven and highland. Those platforms produced 3000 barrels of oil equivalent -- day. Pound net total is today at around 11100 barrels want to put them today that -- That there is this roughly 50% oil -- -- -- gas. I think the big asset and one reason where we we did this is. On green canyon 52 we own. Own and operate. The processing plant -- Which was built by Conoco back in the late date is to process 55000 barrels of oil a day and -- 125. Million cubic feet today it's currently -- producing as you see that 2250000. -- and -- cubic feet today. It therefore has a tremendous capacity to. It's taken other produces. And production processes. With the production -- agreement and we are in negotiations and discussions with a number of other operators -- We to have discovered resort planning on Vernon Wells in the vicinity. The feels the -- underneath these platforms -- have behind -- reserves. And and in some cases expiration potential as well. Skip through the management will be in the in the breakout room after this you could mean some of us. I'm that Saudi reserve report as -- year in 2007. Credit this with two and a half million barrels or. Now own estimate that this year. That will increase to about three and a half million barrels of oil equivalent. And that's probably due to better than. Better. The wells and fields of produce better than what forecasted 2007. But also acquired some some other assets -- to help that. We -- what do have significant cash flow or. Of them effect of -- tonight we have significant cash flow. In the second quarter. We we averaged just under two million dollars a month and put that it. Our interest vary from twelve and a half percent. To 50% of all these facility is on the deep water platforms -- partners are with a major company Chevron Apache. Trust us to operate the fields for. -- -- -- -- -- The gross production we operate this 3000 barrels of oil a day. That little bit about platforms was -- coming up. The two main assets green canyon 184 is commonly known as Joliet field. It was the first tension -- well platform in the Gulf of Mexico back in 1989. And green canyon 52 was more commonly known as Marquette. And both those -- were discovered -- Conoco. Back in the -- -- is and two -- to those big companies these rather mature assets to us we still see a lot of potential in the fields the wells. And particularly in the production handling opportunities we have now owning the problem. Since -- acquire these properties last year. We've been doing. Geological and reservoir valuations to look for other potential. And we will be starting to develop that we have started doing some work goes on them. But to requests that we see a lot more potential in in all these fields. We will starting this next month's. Be participating in -- a number of drilling opportunities drilling prospects we've taken interest and generally and on the shelf in the Gulf of Mexico -- the first well will be split it next year next month. It's -- non operated deal. We started to work over program. Prior to -- and -- Which unfortunately didn't come right through world platforms are and but -- on now -- proud to say we are facts about 50% of production before -- And over the next six weeks -- so we should get back to full productions that was before before it. We've planned. Soon to drill. One development well some some podcast on on -- violent law. We are currently as a set negotiating. Production handling agreements which -- -- for this. Processing platform green canyon 52. Of these and these -- greatly increase our cash flow. Without any risk. -- target is to get 3000 barrels of oil equivalent today by mid 2009. Without acquisitions and that'll be through the drilling program where the starting. Next month. Answer some work overs. On those platforms. The other thing we're doing now is is actively. Trying to acquire all of -- properties some of those of these platforms -- ones in -- water. Where -- potential it's no longer -- value to. To the major companies that -- And where there possibly opportunity is to sign production -- agreements without partners. That the long -- -- -- a lot different from that. We want -- leverage what we've got to -- to build up for the real. Preston says that as an operator in the Gulf of Mexico. Just to show where. I mean assets are angry and can in the 124. Miles from coastal Louisiana -- a 160. Five so from new -- The -- adapts. 550 feet that shallow one and 17100 feet from the people. Just to show that the TOP is a floating production plant platform. It was billed -- built -- great expense by ConocoPhillips. They looked opponent is an abandonment liability and felt the field. A year or two ago didn't have. That -- -- left to justify keeping it -- sold between facts that being a floater can be moved used elsewhere. And the shallow -- on the right hand side of the screen. It is is on the sea floor and -- the -- goalless capacity to handle other people's oil and gas and we do see really filling up -- capacity. Over the next couple of years with other people's. Production. Just a map of Joliet field it was. -- discovered back in the intimidated isn't. Did not turn out to be nearly as successful was comical hoped it would however still producing 17100 barrels a day and -- -- cubic feet today. Which which threw us a significant. Photograph Soviet people see photos like that people. And just an idea of what left field is it has. A multitude of different -- the produce and it. Some of which are still behind pipe and on and not produced. As time goes on and producing wants to please. We we will look at for that proliferating new zones up hole wells. But the main thing it green canyon 52 Marquette field does still produce oil and gas. It it does have this processing facility associated what. -- just to demonstrate to. What would happen. -- the oil into Joliet field one in deep -- This goes but twelve mile pipeline which we owned partly -- 2 central processing platform green canyon 52 -- -- And and then onto -- it to another pipeline we own a piece of up to him shell facilities up on the shelf. Star hasn't said a number of other prospects being planned -- other operators. In the deep water. And are also -- to -- -- -- made out there where we have the closest and most convenient. Structured to bring their oil and gas production to use of that -- -- Explaining that. -- that it happened production and capacity is. But twenty times what is producing now. Ohio and blocks it. There's an old field it was called didn't field discovered by shell. In the sixth is. And again is produced so what happened TCF of gas. This is -- is for major company was pretty depleted however they shell and comic who -- -- later. So a lot of from undeveloped fault blocks and other zones in the but. They were ready to move on to bigger things so it was an opportunity for for small. -- actually start up companies to acquire trying to develop those. The remaining reserves and we're about to commence on that. It's in 5500 feet of water today only produces. One and a half million cubic feet day. I think that's about production today it'll go up a little bit when we restore everything after -- economic. They -- both violent and every -- properties -- Did suffer damage from americanized but that there -- is now back on stream and creek canyon will be. The next few weeks. There -- seven platforms there. And an amendment a couple of manned platforms. Should have set the creek canyon platforms -- man to we have been living quarters and -- Constantly man. We also -- Small interest and in another -- operated by energy resource technology on T. Which. I think -- put out a press release yesterday went back is now back on on stream. It it also was not harmed so much -- -- -- was home buyer. The plant on shall being hit by an American and also the pipeline. From it the -- -- had -- -- grandparent dragged over broke it but that's that's -- fix tobacco production. The million produces about 3540%. Of and -- revenues. We commenced -- work over program which is largely. Repair or. Cleaning up send it up wells on green canyon -- -- and just before I can. Only just started that we plan they work overs and you can see them our share is but the cost is pretty small the incremental production to make to -- is pretty significant. Once we've got that part the oil flowing right through the pipeline would be able to get back to that work over program and increase -- Production. Some wherever -- public company. -- Cash flows around one point eight million. A month or was before -- it will come down because it's commodity prices have come down since there. I think I think the key things on here we -- very little debt. We. We've all these problems does -- the right time. With some debt which has now been paid off our our only debt is that this fell one point eight million dollars. Which is on an asset we -- earlier this year so what we're a pretty good position. And concerns we get production up again we'll be back up to you have to guess but it. Millions -- million and half dollars a month. You can read you can read those that your that your own time ask questions about. It in this recount room. -- -- -- -- The body reserves two and a half million barrels of oil equivalents and with the with the acquisition of other assets this year. And better performance than was predicted we we think we'll have three and a half million books to -- in 2008. -- the values of those. On on -- two. -- 49 million a year in 2007. Using seven dollar oil seven -- -- royals seven dollar gas. Probably around seventy million by the end of this year on top of that we have bonds and -- with the MMS. And with the seller of the properties. Which is. Should be added to that to come to a net asset value. By now you can see we. What we use the number there. Seven to seven million for -- net asset value. Net asset value per share for a dollar 72. We've got. Round about forty million shares outstanding which trade on Toronto stock picture on the venture exchange -- Well we're pretty pleased without performance. Since required these properties we've been able to pay off pay off the debt. Go to cash flow and now looking looking to grow from this -- By. Developing behind Harper's well identified in the fields we we -- Doing some exploration work on those existing assets and also on other. Projects were looking at the size that little -- drilling program in December. And -- -- involved in various prospects throughout next year and up -- elsewhere in the Gulf of Mexico optional. We have substantial capacity. To. To multiply. Several times -- cash flow by. Signing production coming agreements with other operators who have discovers in the years. Particularly green canyon market field. We currently. Looking at acquiring other other -- -- similar to the ones but currently you know what we can do similar -- things. So we've. What we're also looking internationally. And other opportunities where we have some knowledge but we do similar kind of project fine by -- chip feels. Where we can take another -- team up and other operators and do something some. I think that's -- that's about it to him. Context within -- in the breakout -- following this. Thank you very much his time.