Australian Oil Company Limited · ASX:AOK
Australian Oil — Investor Presentation (June 2017)
25 slides from Australian Oil's investor presentation, Jun 26, 2017
Slide 1: Dempsey Update and Corporate Presentation
Sacgasco Limited ABN 83 114 061 433 Unit 14, 210 Bagot Road, Subiaco, WA, 6008. T +61 8 9388 2654 E info@sacgasco.com Announcement to ASX 26 June 2017 Dempsey Update and Corporate Presentation Dempsey 1 well planning on track for July spud Updated Corporate Presentation for Brokers and Investors
Slide 2: About Sacgasco Limited (ASX: SGC)
About Sacgasco Limited (ASX: SGC) Sacgasco Limited (ASX: SGC) is an Australian‐based energy company focused on conventional gas exploration and production in the Sacramento Basin, onshore California. Sacgasco has an extensive portfolio of natural gas producing wells and prospects at both exploration
Slide 3: Drilling Soon in the World-Class Sacramento Basin
DRILLING SOON IN THE WORLD-CLASS SACRAMENTO BASIN TARGETING CALIFORNIA’S OVER-LOOKED, WORLD-CLASS GAS POTENTIAL INVESTOR PRESENTATION – JUNE 2017 ASX:SGC
Slide 4: “After recent strategic acquisitions the Sacgasco Joint Venture’s
Sacgasco Limited (ASX:SGC) is uniquely placed to test the under-explored, multi-Tcf potential of the over- looked Natural Gas plays in the North Sacramento Basin. Any one of the company’s large prospects has the ability to transform Sacgasco and the Californian natural gas market. “After recent stra
Slide 5: Corporate overview
Corporate overview Corporate Snapshot Register structure: ASX Code: SGC Cash (as at 31 March 2017): $1.5m Market Cap (@$0.08/share): ~$16m 52 week high ($/share): $0.085 52 week low ($/share): $0.023 ~55% Shares on issue: ~201m Unlisted Options @$0.15 (expire Dec 19): 27m Unlisted Options @$0.10 (ex
Slide 6: California Gas Market
California Gas Market 2.5 Tcf/year – California gas demand 7 to 11 Bcf – Average to peak daily consumption 6.5 Bcf/day – supply shortfall 90+ % – imported from out-of-state 10 – 15% premium – over Henry Hub price SGC already connected to Open-Access gas pipelines High demand for in-state gas product
Slide 7: 'Discovery Thinking' used by SGC to unlock huge overlooked potential
‘Discovery Thinking’ used by SGC to unlock huge overlooked potential Over 6,000 wells have been drilled in the Sacramento Basin Less than 10 have drilled to SGC primary target in a proven Petroleum System (PS) in 1+ million acres (Reservoirs, seals, structures and sources can be demonstrated by past
Slide 8: Sacramento Basin holds Multi-Tcf gas potential
We believe that the Sacramento Basin holds Multi-Tcf gas potential Many gas traps have been overlooked and the basin is under-explored Sacgasco is uniquely positioned to unlock this potential; with high working interests; tight share register; low cost onshore operations and easy access to a world-c
Slide 9: The best place to look for more gas is under and adjacent to discovered gas
The best place to look for more gas is under and adjacent to discovered gas Over 11 Tcf has been produced in the Sacramento Basin Rio Vista, the largest gas field, has produced 3.5+ Tcf to date Extensive database of 2D and 3D seismic and wells readily available Lower operating cost due to accessible
Slide 10: Asset Summary
Asset Summary Dempsey Appraisal and Exploration Prospect- 1+Tcf in 7 stacked targets Alvares Discovery Appraisal- 2+ Tcf gas appraisal Multiple mapped look-a-like prospects 200+ Bcf to Multi-Tcf gas exploration targets Production and Infrastructure in 6 Fields- Multiple Prospects for drillin
Slide 11: Increasing Gas Production
Increasing Gas Production A simple pathway to rapid growth and cash flow Production (operated): Rancho Capay and Los Medanos: 165 mcf/d gross – March quarter 2017 Recently acquired: Malton, Dutch Slough and Denverton, Rancho Capay and Rice Creek East: 640 mcf/d gross - March quarter 2017 More under
Slide 12: SGC owned and operated infrastructure for low cost, rapid development
SGC owned and operated infrastructure for low cost, rapid development, and early cash flow 10
Slide 13: Unlocking multi-Tcf Potential from over-looked reservoirs - Dempsey Project
Unlocking multi-Tcf Potential from over-looked reservoirs- Dempsey Project A proven working Petroleum System and Play-gas to surface in the two valid tests Supported by structurally consistent amplitude anomalies, and regional source, seals, and reservoir data Integrated well control through 2D and
Slide 14: Dempsey Project - Schematic
Dempsey Project - Schematic Appraisal/ Exploration - 1+ Tcf* Reduced Risk - 7 stacked independent conventional sand reservoirs High Potential - Total (100%) deterministic un-risked recoverable prospective resource: 1+ Tcf High Probability of Success - Multiple independent targets ranging from 1+ 1+T
Slide 15: Dempsey Project – 3D Seismic Based
Dempsey Project – 3D Seismic Based Simple regionally prominent structure Mapped on 3D seismic Focus for gas migration Proximal to sand reservoir source Good gas trap seals In a gas unit with pipeline access 1+Tcf 13
Slide 16: Alvares Project
Alvares Project Appraisal/ Exploration - 2+ Tcf* Gas Reduced risk – Overlooked conventional natural gas discovery drilled in 1982 when looking for oil High Upside - 1500+ metres of gas shows with gas flow to surface Highly prospective - On trend with analog Tulainyo and James wells with multiple sta
Slide 17: Alvares Project – 2D Seismic and 1500 metres of Gas Shows
Alvares Project – 2D Seismic and 1500 metres of Gas Shows Conventional reservoirs in outcrop 15
Slide 18: Tulainyo gas on trend with SGC Alvares overlooked gas discovery
Tulainyo gas on trend with SGC Alvares overlooked gas discovery • SGC’s Dempsey and Alvares Prospects are located in 11 Tcf produced natural gas basin and Alvares is on trend with geologically similar multi-Tcf Tulainyo Project West Tulainyo 1 East • Tulainyo developed by Cirque, and part explored b
Slide 19: Alvares and Tulainyo
ALVARES Pipeline Quality Gas in Conventional Reservoir Sands in Alvares 1 Published Texaco line Published CRC line Potential Gas Gas Sands Sands TULAINYO 17
Slide 20: Exploration Project Costs
Exploration Project Costs Dempsey: 1+Tcf potential Dempsey: 1+Tcf potential US$4.4m US$0.7m Total completion cost SGC share at 50% WI Alvares: 2+Tcf potential Alvares: 2+Tcf potential US$1-$8m US$0.3-$3m Total completion cost SGC share at 45% Work programme is discretionary, as all prospects are hel
Slide 21: Recent Progress on Value Delivery
Recent Progress on Value Delivery Q4 2016 - Acquired additional equity in and operatorship of Sacramento Basin Portfolio Q4 2016 - Farmed out part of Sacramento Basin portfolio of follow-up prospects for leasing funds Q1 2017 - Acquired additional producing conventional gas wells for infrastructure
Slide 22: Staged Growth and Value Delivery Plan
Staged Growth and Value Delivery Plan Phase 1: 2H 2017 Leasing to increase prospect diversification in Sacramento Basic over new large-scale targets Drill Dempsey 1+ Tcf appraisal well Acquire additional producing assets to add scale, infrastructure and exploration inventory Test Alvares cas
Slide 23: Investment Summary
Investment Summary The California gas market has extremely favourable economics Management are highly motivated to achieve results with a low cash burn rate Gas is the transition fuel of choice in the US and will be for decades to come Sacgasco has diversity in production and prospects with asymmetr
Slide 24: Contact
Contact Managing Director – Gary Jeffery 08 9388 2654 OCTO Building Level 2, Unit 14 210 Bagot Road Subiaco, WA 6008 Email: info@sacgasco.com Twitter: @SacGasCo 22
Slide 25: Disclaimer
Disclaimer This document contains forward looking statements that are subject to risk factors associated with the oil and gas industry. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by many variables which could cause actual results or tr
Australian Oil Company — Investor Presentation (June 2017) on 6ix