Raphael Energy Group Limited

Transaction Summary

Investment Highlights

Transaction Overview

Terms of offer:

400,000 Class A ordinary shares are offered for US$2.00 per share with a detachable warrant to buy two Class A shares for US$2.50 per share that expires 30 June 2030.

USE OF FUNDS

*Initial EMAI (electromagnetic analogue induction) logging for fluid indications – oil, gas, water – and inferred porosity and permeability for preliminary resource estimates by hydrocarbon, reservoir thickness and depth

Company Overview

Raphael Energy Group Limited (“Raphael”), via a wholly owned Australian subsidiary, holds a Western Australia Special Prospecting Authority with Acreage Option STP-SPA-0089 (“SPA-89”) located onshore the north central area of the Officer Basin. SPA-89 has the benefit of massive reservoirs seen in Officer Basin wells as well as located within a tectonically quiescent area, structures with vast areas. With that combination, SPA-89 has structures that collectively can host billions of barrels of oil and/or gas resource. For example, a Ryder Scott 2009 best estimate (P50) of recoverable oil resource for a license covering the southern part of SPA-89 was 32.3 billion barrels (P90 17.0, P10 55.4). Notably, Ryder Scott clients include oil and gas majors BP and Chevron as well as Bank of America and Citibank.

Raphael’s proprietary 3D GravMag mapping technique that maps structures the equivalent of 3D seismic subsurface mapping with a resolution on the Z-Axis as low as 50 meters, has mapped one formation in 12 structures with total mean unrisked prospective oil resource recoverable of 9.16 billion barrels of oil (“BnBO”) (P90 3.41 BnBO, P10 15.82 BnBO) or 5.14 billion oil-equivalent barrels of gas (“BnOEB”) (P90 1.99 BnOEB, P10 8.89 BnOEB), assuming the hydrocarbons in the reservoirs are entirely oil or entirely gas.

SPA-89 3D GravMag Structures - P50 Areas

In addition, the near vertical migration of hydrocarbon microseepages from pressured hydrocarbon accumulations induce changes at the surface that provide a variety of near-surface expressions - indirect hydrocarbon indications. Raphael undertook four reconnaissance surveys of SPA-89 for indirect hydrocarbon indications that yielded 3D GravMag structures with as many as four stacked indirect hydrocarbon indications. A presentation at the American Association of Petroleum Geologists 2017 International Conference reported that 80% of 1,150 wells drilled with an indirect hydrocarbon indication (positive anomaly) were discoveries. As such, 3D GravMag leads with multiple indirect hydrocarbon indications have an excellent chance of discovery, that in this instance may be hundreds of millions or billions of barrels of oil or gas equivalent. 

The most significant outcome of SPA-89 work to-date is highlighting three adjoining 3D GravMag leads, Ambrosia North, Ambrosia South and Concorde (the “SPA-89 Trio”), with a valuable combination of: 

• 94% to 100% of as many as four stacked indirect hydrocarbon indications; and
• major oil company scale (Occidental Petroleum) prospective resource with mean unrisked recoverable resource of 5.0 BnBO (P90 1.9 BnBO, P10 8.9 BnBO) or 3.1 BnOEB (P90 1.1 BnOEB, P10 5.4 BnOEB), assuming the hydrocarbons in the reservoirs are entirely oil or entirely gas.