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⚫
⚫ Exploring the prolific Rona
Ridge West of Shetland,
UK Continental Shelf
⚫ Mark Pay
⚫ Spark Exploration, Technical Director
⚫ APPEX 2020 Conference
⚫ 5th March 2020
1
Disclaimer
⚫ This document has been prepared by Spark Exploration Pty Ltd (“Spark”) in connection with providing an overview of its business to interested parties/analysts/investors.
⚫ This presentation is being provided for the sole purpose of providing preliminary background information to enable recipients to review the business activities of Spark. This presentation is thus by its nature
limited in scope and is not intended to provide all available information regarding Spark. This presentation is not intended as an offer, invitation, solicitation, or recommendation with respect to the purchase or
sale of any securities. This presentation should not be relied upon as a representation of any matter that a potential investor should consider in evaluating Spark.
⚫ Spark and its affiliates, subsidiaries, directors, agents, officers, advisers or employees do not make any representation or warranty, express or implied, as to or endorsement of, the accuracy or completeness
of any information, statements, representations or forecasts contained in this presentation, and they do not accept any liability or responsibility for any statement made in, or omitted from, this presentation. No
responsibility or liability is accepted and any and all responsibility and liability is expressly disclaimed by Spark and its affiliates, subsidiaries, directors, agents, officers, advisers and employees for any errors,
misstatements, misrepresentations in or omissions from this presentation. Spark accepts no obligation to correct or update anything in this presentation.
⚫ Any statements, estimates, forecasts or projections with respect to the future performance of Spark and/or its subsidiaries contained in this presentation are based on subjective assumptions made by Spark's
management and about circumstances and events that have not yet taken place. Such statements, estimates, forecasts and projections involve significant elements of subjective judgement and analysis
which, whilst reasonably formulated, cannot be guaranteed to occur. Accordingly, no representations are made by Spark or its affiliates, subsidiaries, directors, officers, agents, advisers or employees as to the
accuracy of such information; such statements, estimates, forecasts and projections should not be relied upon as indicative of future value or as a guarantee of value or future results; and there can be no
assurance that the projected results will be achieved.
⚫ Prospective investors and interested parties should make their own independent evaluation of an investment in Spark or its assets.
⚫ Nothing in this presentation should be construed as financial product advice, whether personal or general, for the purposes of section 766B of the Corporations Act 2001 (Cth). This presentation consists purely
of factual information and does not involve or imply a recommendation or a statement of opinion in respect of whether to buy, sell or hold a financial product. This presentation does not take into account the
objectives, financial situation or needs of any person, and independent personal advice should be obtained.
⚫ This presentation and its contents have been made available in confidence and may not be reproduced or disclosed to third parties or made public in any way without the express written permission of Spark.
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2
Spark Exploration – An Introduction
⚫ Spark Exploration is a privately owned company focused on exploring
the prolific Rona Ridge, West of Shetland
⚫ Currently holds two innovate licences on the ridge with 100% equity
and a 32nd Round application pending
⚫ Attractive portfolio of fractured basement and conventional prospects
(>1.7 bn bbls mean recoverable), imaged on excellent 3D seismic
⚫ Looking for partners to go drilling (Dry hole cost approx. US$ 10-15M)
3
Why the Rona Ridge?
⚫ A long lasting regional structural high adjacent to a
world class oil-rich petroleum system
⚫ 20+ billion bbls STOIIP discovered to date in the
surrounding accumulations (Clair, Lancaster-
Halifax, Foinaven, Schiehallion etc.)
⚫ The area is underexplored compared to other
similar basins, with significant recent discoveries
and appraisal/development activity
4
⚫ Two 100% licences, plus pending 32nd Round application
⚫ Diverse opportunities including:
▪ Fractured Basement (Bader)
▪ Devonian (Marmaduke, Ginger)
▪ Lower Cretaceous (Cherry)
▪ Upper Cretaceous (Tuck)
⚫ Possibility to test multiple plays with one well
Portfolio Overview
5
Bader – Extension of Basement Mega-Closure
⚫ Lancaster-Halifax-Bader forms a single depth structural
mega-closure with > 1,000 m relief. The structural crest
is at 800 mTVDss
⚫ This ‘buried mountain range’ is being actively charged
from its flanks by a rich, mature oil-prone Kimmeridge
Clay source rocks
⚫ The Lancaster-Halifax-Bader mega-closure expected to:
▪ share the same deep oil water contact proven at
Lancaster-Halifax; and
▪ share the same oil quality (38°API)
Lancaster Early Production System (Hurricane)
Lancaster contains resources of 523 MMstb (2P & 2C)3
of 38.2° API oil. Production commenced in May 2019
>3.5mmbbls produced so far, at an average of 12,900
bopd. Production has increase to 20,000 bopd.
6
Fractured Basement Exceeding Expectations on Rona Ridge
⚫ Hurricane has progressively removed industry
scepticism in the play on the Rona Ridge
⚫ Early Lancaster EPS production data is rapidly de-
risking remaining challenges
Source: Hurricane Energy CMD Presentation July 2019Source: Hurricane CMD Presentation July 2019
Since start-up in May 2019 Lancaster EPS has produced over 3.4 mmbbls
7
Fractured Basement Reservoir Model
⚫ Granodiorite-tonalitic gneisses with
faults and fractures that extend from
the palaeo-surface hundreds of meters
into the basement
⚫ Forms a dual fracture porosity system:
1. Fault Zones – seismically identified
features forming highly permeable zones
20-70m wide
2. Fractured Basement – connected
permeable fractures and joints between
Fault Zones
⚫ Network naturally propped open with
sediment and hydrothermal minerals
(Holdsworth et al., 2019)
⚫ Seismically mapped fault and fracture
patterns within Bader are similar to
Lancaster-Halifax and in outcrops
onshore Scotland
8
Devonian Clair Group Reservoir Distribution
⚫ Clair Field contains STOIIP >7 billion
bbls oil. Clair development phases I & II
target reserves of c. 1 billion bbls. Clair
Phase III is currently being planned
⚫ Lower Clair Group clastic reservoirs are
up to 600 m thick and infill basement
topography on the south-eastern flanks
of the Rona Ridge
⚫ Devonian play fairway extends further
south-west along the flanks of the Rona
Ridge
⚫ Ginger and Marmaduke prospects are
combination structural/truncation traps.
9
Ginger Prospect Regional seismic line to the Clair Field
10
Ginger Prospect (Devonian)
BCU Depth Structure Map (m TVDss)
⚫ The Ginger Prospect has a combination
structural / stratigraphic trap to the south-
west of the Clair Field spill point
⚫ Updip well 205/20-1 penetrated
Kimmeridgian shales unconformably above
Lewisian Basement
⚫ The prospect straddles P2412 and Block
205/20 (subject to a 32nd Licensing Round
award)
11
Lower Cretaceous Ssts Play
⚫ Lower Cretaceous reservoirs have been
targeted by a recent multi-well appraisal
campaign to evaluate the potential for Clair
Phase III development.
⚫ Sandstones have been comprehensively
evaluated including coring and successful
testing via MDT and DST – good quality
⚫ The 2018 Achmelvich oil discovery well
successfully tested Lower Cretaceous
reservoirs in an independent fault bounded
structure, beyond the greater Clair spill point
to the east
⚫ The SW Clair wells have a higher proportion
of later lighter undegraded oil with an
average API value of 26°in 206/12a-5
BADER
CLAIR
RIDGE
205/20-1Significant oil staining in Lwr Cretaceous Ssts
S h e t l a n d P l a t f o r m
F a r o e S h e t l a n d
B a s i n
206/13-1 TD in intrusive volcanics
Poor seismic image due to intrusive volcanics
W e s t S h e t l a n d
B a s i n
P2407
P2412
Top Victory Sands TWT (ms)
SW Clair appraisal targeting Lower
Cretaceous reservoirs
Achmelvich oil discovery in Lwr Cretaceous Ssts
Cherry Prospect
12
Cherry Prospect (Lower Cretaceous)
P2407
Crest @
1050m TVDss
Victory Sands juxtaposed against
Jurassic shales
⚫ Cherry is located updip from 205/20-1
where cored Lower Cretaceous Victory
Ssts were strongly oil stained
⚫ Trap created by onlap onto the flank of
the Rona Ridge basement high with 42
km2 closure
⚫ 205/20-1 drilled in 1974 on 2D seismic
and did not penetrate reservoir within a
structural closure
205/20-1 Significant oil staining in Victory Ssts ~700m downdip from
crest of Cherry Prospect
Top Victory Sands (m TVDss)
205/20-1 oil stained core
P10 OWC @ 1600m TVDss
C
C’
Victory Sstsonlap Rona Ridge
13
Cherry Prospect - Updip of oil-stained Ssts in 205/20-1
Basement
Base Balder
Top Balder
205/19-B Cherry(Proposed)
C C’
TGS RR13 Full Stack
BCU
Top Victory
Sands
205/20-1
Relayed fault No reservoir offset and no lateral seal
Cherry ProspectBader
Bland seismic character, sand prone section
205/20-1 Significant oil staining in Victory Ssts ~700m downdip from
crest of Cherry Prospect
14
Tuck Prospect - Upper Cretaceous Ssts updip of proven gas
⚫ Upper Cretaceous Macbeth sandstones encountered on
north-west flank of the Rona Ridge. 206/11-1 flowed
1.65 MMSCFD gas. Same sandstones also gas charged
in 205/15-1
⚫ Tuck Prospect is an updip stratigraphic trap of the same
sandstones where a far offset amplitude anomaly
indicates better developed reservoir
15
⚫ Two 100% held Licences with a diverse portfolio
of opportunities
⚫ Exploring a regional high adjacent to a world
class petroleum system
⚫ Continuation of the Lancaster-Halifax fractured
basement play
⚫ Possibility to test multiple plays with one well
Portfolio Summary
⚫
⚫Thank You
⚫ Visit us at Stand 28
⚫ Contact Details:
⚫ Mark Pay
⚫ Spark Exploration, Technical Director
⚫ mp@sparkexploration.com
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