Star Energy Group Plc · LSE:STAR
Star Energy — Dart Energy — Shareholder Meeting (November 2011)
20 slides from Star Energy's shareholder meeting presentation, Nov 29, 2011
Slide 1: Foundations Laid. Poised for Growth. Annual General Meeting
FOUNDATIONS LAID. POISED FOR GROWTH. Annual General Meeting 29 November 2011 Nick Davies – Executive Chairman ASX: DTE:AX www.dartenergy.com.au
Slide 2: The Energy Business Opportunity of Our Time
THE ENERGY BUSINESS OPPORTUNITY OF OUR TIME.. Dart Energy Vision: A leading independent global unconventional gas business Environment: “unconventional gas is an energy game-changer” US: 30% of production Australia: multi billion dollar CSG-to-LNG industry Governments worldwide seeking out experienc
Slide 3: Strong Macro-Market Dynamics
STRONG MACRO-MARKET DYNAMICS. Country (AUSTRALIA) (NSW) (CHINA) (INDIA) (INDONESIA) (UK&EUROPE) Gas Demand Growth 4% 76%6 12% 10% 5% 2% Rate 2010 > 20201 2020 Gas Surplus (0.4 TCF) (0.2TCF) (5.2 TCF) (9.2 TCF) (1.4 TCF) (13.8 TCF) (Deficit)1 Gas as % of Energy Mix 12% > 22%3 9%7 > 15%8 4% > 8% 11% >
Slide 4: A Simple Model
A SIMPLE MODEL. RAPID COMMERCIALISATION WHERE GAS IS NEEDED FAST. 1 2 3 ACCESS APPRAISE MONETISE High quality Diagnostic know- Commercialise prospects how & “tool-kit” quickly high demand Small volumes Accessible markets markets required Achieve high Diverse portfolio Rapid certification margins Str
Slide 5: Foundations Laid. Poised for Growth
FOUNDATIONS LAID. POISED FOR GROWTH. July 2010 November 2011 Projects • 7, CSG only 34, CSG (and shale entry) • 10,000 km2 35,000 km2 Activity • Minimal drilling activity Portfolio wide drill-out underway as part of 100+ well, 18 month work program Resource (TCF, net) • 8 62 OGIP/Prospective • 4 21
Slide 6: Dart's Markets Require a Different Mindset to QLD
DART’S MARKETS REQUIRE A DIFFERENT MINDSET TO QLD. Typical Australia “CSG to LNG” International (& NSW) Resource Resource Market + + Features Limited Market Extensive Accessible Market Business Prove up a large reserve base Monetise small reserve base quickly Model to justify large capital decisions
Slide 7: Pathway to Monetisation
PATHWAY TO MONETISATION. Several projects with a clear path to near-term production and revenues Up to c. 11 BCF pa already subject to GSAs; targeting additional GSAs in 2012 Resource maturation & scale options offers significant upside Country License / Asset Dart GIP 2C Resources Reserves Appraisa
Slide 8: Operational Activity Across the Portfolio
OPERATIONAL ACTIVITY ACROSS THE PORTFOLIO. Work underway in every country of operation 2011: seismic, 18 core wells, 12 production wells, 4 pilots 2012: planning 30+ core wells, 20+ production wells, 7 pilots, portfolio-wide resource / reserve reassessment, first developments DJD 04E exploration wel
Slide 9: NSW: Potential for a CSG Industry of Scale
NSW: POTENTIAL FOR A CSG INDUSTRY OF SCALE. Technology Technology Horizontal well technology preferred. Small scale, low well density developments - allowing other land uses to continue. Commercialisation Assets strategically positioned, close to market. Price upside given projected strong demand. S
Slide 10: Community, HR & HSE&S: A Year of Progress
COMMUNITY, HR & HSE&S: A YEAR OF PROGRESS. Community Local communities: work actively, be sensitive to customs and culture Land owners: respect, fair compensation, share information openly Contractors: use local companies as far as possible Unconventional gas is an economically viable, greener energ
Slide 11: Well Funded Heading into 2012
WELL FUNDED HEADING INTO 2012. Cash balance (end Nov, est.) : A$132 million Cash on deposit: A$110 million Liquid assets: A$10.8 million Cash-backed guarantees: A$11.4 million Multiple finance options emerging as portfolio matures Strategic restructure & potential partnerships Asset level financing
Slide 12: Restructure Initiated to Unlock Value
RESTRUCTURE INITIATED TO UNLOCK VALUE. Rationale Dart trades at discount to peers International asset portfolio not fully recognised by Australian investors Response Separate international listing of international assets – Dart Energy International Management restructure / separate board Explore str
Slide 13: 2012 Objectives: Australia
2012 OBJECTIVES: AUSTRALIA. 2012 SCORECARD Portfolio 3 – 5 licence additions Portfolio optimisation Operations Continue portfolio drill-out: additional 10+ wells 2 CSG pilots 2P 50 - 150 PJ and 3P 150 - 500 PJ Value Clear line of sight to 2013 revenues 1+ Gas Sales Agreements HSE&S 0 HS&S incidents
Slide 14: 2012 Objectives: International
2012 OBJECTIVES: INTERNATIONAL. 2012 SCORECARD Portfolio 3-5 strategic licence additions Ongoing portfolio optimisation Additional low entry cost shale acreage Operations Complete portfolio drill-out: additional 40+ wells 5 additional CSG pilots 1-2 shale exploration wells 2P 100 - 150 PJ and 3P 500
Slide 15: Access – Explore – Appraise - Produce Potential
POTENTIAL. NORTH AMERICA AUSTRALIA INTERNATIONAL UNCONVENTIONALS UNCONVENTIONALS UNCONVENTIONALS M&A 2010: acquired by 2010: A$3.5bn acquisition by Shell Exxon for US$41bn / CNPC 2010: 2nd largest US 2009: A$5.2bn Access – Explore – Appraise - Produce producer; CNOOC acquisition by BG US$2bn+ strate
Slide 16: Foundations Laid. Poised for Growth
FOUNDATIONS LAID. POISED FOR GROWTH. Unconventional gas is the energy business opportunity of our time On the agenda in the world’s fast growing economies & the OECD Dart Energy: Exploration, development and commercial experience Track record An excellent portfolio of assets spread across three cont
Slide 17: Questions?
QUESTIONS? Resource Estimates for Asia and Europe are per Netherland, Sewell and Associates Inc. Resource Estimates for Australia are per Netherland Sewell and Associates Inc (PEL458) and MBA Petroleum Consultants (PEL456, PEL459, PEL460, PEL461, PEL463, PEL464) 1. Does not include 2 geothermal lice
Slide 18: Dart Portfolio Summary as at 30/09/2011
DART PORTFOLIO SUMMARY AS AT 30/09/2011. DART ASIA Location Dart Interest Operator Area Gross OGIP Gross Resources (100%) (Tcf) Gross Reserves (100%) (Bcf) (km2) (Tcf) Prospective 3C 2C 3P 2P Sangatta West PSC East Kalimantan, Indonesia 24% Dart & Ephindo 1,301 0.6 0.3 Tanjung Enim PSC South Sumatra
Slide 19: Disclaimer
DISCLAIMER. This presentation (Presentation) has been prepared by Dart Energy Limited (ABN 21 122 588 505) (Dart). This Presentation is not a prospectus or a product disclosure statement under the Corporations Act and has not been, nor is it required to be, lodged with the Australian Securities and
Slide 20: Contact Information
CONTACT INFORMATION. Dart Energy Limited Singapore (Head Office) 152 Beach Road, #19-01/04 The Gateway East Singapore 189721 Tel: +65 6508 9840 Fax: +65 6294 6904 Australia (Registered Office) Level 11, Waterfront Place, 1 Eagle Street GPO Box 3120 Brisbane QLD 4001 Tel: +61 7 3149 2100 Fax: +61 7 3