Metgasco Ltd · ASX:MEL
Metgasco — ASX Investor Series (December 2008)
25 slides from Metgasco's conference presentation, Dec 11, 2008
Slide 1: Presentation to ASX Investor Series
For personal use only Presentation to ASX Investor Series Glenda McLoughlin Chief Financial Officer
Slide 2: Metgasco – an emerging Australian gas company
Metgasco – an emerging Australian gas company For personal use only Coal bed methane and conventional gas exploration company Focussed on Clarence Moreton basin in New South Wales Large tenement position - 1.5 million acres (gross) - 930,000 acres (net) Booked significant gas reserves 2P res
Slide 3: Snapshot of financials
Snapshot of financials For personal use only Listed Australian Securities Exchange (ASX) Dec 2004 ASX Code MEL Current Share Price $0.30 Market Cap A$40 million Shares on issue 132 million Options on issue 21 million Notes: Share price and market Cap as at 11th Dec 2008 Page 3
Slide 4: An experienced board & management team
An experienced board & management team For personal use only BOARD MANAGEMENT Dr Peter Power – Chairman Kevin Dixon – General Manager Gas Marketing Former Managing Director of Ampolex. Past Chairman Former Head of Strategy for Australian Pipelines of APPEA. Trust, 30 years experience with ExxonM
Slide 5: Achievements in past months
Achievements in past 12 months For personal use only Exploration Program Increased 2P gas reserves by 164% to 284 Bcf Increased 3P gas reserves by 33% to 1,538 Bcf 6 CBM pilot wells completed and undergoing dewatering Lead pilot well – Corella 11 – producing at 200,000 scf/day while dewateri
Slide 6: Untapped potential of the Clarence Moreton basin
Untapped potential of the Clarence Moreton basin For personal use only Large underexplored basin in eastern Australia – close to markets and energy infrastructure Excellent CBM potential - multi-TCF gas supply potential - reserves currently booked over less than 5% of acreage - coals extend over
Slide 7: CBM Potential
CBM Potential For personal use only Appraisal of the Jurassic Walloon Coal Measures (WCM) which have been successfully developed in the Surat basin (Queensland). Coals extensive throughout the 1.5 million acres held by Metgasco Net coal – 16- 40 metres 11 coal seams – 2 primary reservoirs -
Slide 8: First conventional gas discovery in basin
First conventional gas discovery in basin For personal use only Discovery of Kingfisher Field in September 2008 Gas-in-place 82 - 831 bcf Shallow gas at 4,000 ft Mackellar Riflebird-E14 drilled and flowed gas Prospect at 247,000 scf/day Productivity enhancement achievable 700 metres of a
Slide 9: Kingfisher Structure on Seismic Line S82-A
Kingfisher Structure on Seismic Line S82-A For personal use only Riflebird E14 1km (Projected) 9 Page 9
Slide 10: Other leads and prospects in PEL
Other leads and prospects in PEL 16 For personal use only PMean P10 Processing and Bcf Bcf interpretation of recently Kingfisher 82 831 shot seismic has identified a Mackellar 63 688 number of attractive leads Mackellar North 146 1,793 and prospects in PEL 16 Bowerbird 28 295 Liquids deeper in t
Slide 11: Primer on the Australian gas sector
Primer on the Australian gas sector For personal use only Single remote basin to market supply by dedicated pipeline Gas markets historically East coast gas market “locked up” by major players with long restricted term contracts Exploration focussed offshore – targetting LNG scale finds Energy
Slide 12: The east coast CBM sector is developing rapidly
The east coast CBM sector is developing rapidly For personal use only In 1996 CBM production in Australia was < 1Bcf /annum By 2008, CBM is supplying > 127 Bcf TOWNSVILLE /annum Between 1997 to 2008 CBM 2P 10,984 PJ SURAT & BOWEN GLADSTONE reserves have grown from 95 Bcf to 1,495 PJ COOPER/ 11
Slide 13: Once in a generation structural change in the Australian energy sector
Once in a generation structural change in the Australian energy sector. For personal use only The “dash for gas” - imminent introduction of carbon emission trading is has increased demand for “low CO2 producing” gas Availability of large scale gas resources from Australia combined with huge grow
Slide 14: The value of Australian CBM assets has been increasing
For personal use only Sa nt os /T ($/Gj) i pe rra ry O (J rig ul in -0 /P 5) an ge $0.45 a (F eb Ar -0 ro 6) w/ increasing CH 4( M $0.60 Takeover ay AG -0 6) L/ BH $0.76 P (J un AG -0 6) L/ Q G C( M De $0.48 ol c- op 06 o ) /H el m Minority Interest Acquisition $1.71 (J un BG -0 7) Page 14 PE /Q G $
Slide 15: Demand for gas is growing rapidly and gas prices are increasing
Demand for gas is growing rapidly and gas prices are increasing For personal use only Historical Prices Present Pricing Future Prices (Export) 7 7 7 6 6 6 5 5 5 4 4 4 3 3 3 2 2 2 1 1 1 0 0 Early CSM East Coast Gas Prices Present Prices 0 Present Prices Historically east coast gas prices QLD gas
Slide 16: Metgasco corporate strategy
Metgasco corporate strategy For personal use only Large scale play – multi TCF gas supply potential Exploration and development requires focus and systematic evaluation of hydrocarbon potential of basin Initial focus on evaluation of CBM - Establish gas reserves - Prove production potential
Slide 17: Reserve development milestones
Reserve development milestones For personal use only Gas-in-Place Possible Probable Proven Reserves (Contingent Reserves “3P” Reserves “2P” resource) “1P” 4,572 Bcf 1,460 Bcf 284 Bcf tba Converting resources to reserves is the critical first step This means moving a prospective resource estimate i
Slide 18: Progress on our CBM pilot
Progress on our CBM pilot For personal use only Metgasco is currently running a 5 well horizontal well pilot. Each coal seam gas project needs to identify the optimal production technique for its reservoir - eg Horizontal wells, Vertical underream, Frac etc Lead well in the pilot – Corella-11
Slide 19: Metgasco commercialisation strategy
Metgasco commercialisation strategy For personal use only Alliances in place with strong counterparties: - CS Energy - BP Develop Lions Way Gas Pipeline Richmond Valley Power Station (30 MW) Current projects represent annualised gas sales of 35 Bcf per year Page 19
Slide 20: Commercialisation strategy
Commercialisation strategy For personal use only Project Comments Richmond 30 MW gas fired power station 2.5 PJ per year Valley Power Environmental Assessment completed, DA expected in December Station First sales end 2009/ early 2010 Farm-in up to 50% of Blocks 4,5,&1 in PEL 16. First S
Slide 21: Delivering gas to SE-Queensland
Delivering gas to SE-Queensland For personal use only Lions Way gas pipeline - 145 km high pressure gas pipeline. Brisbane is the only capital city on the east coast of Australia supplied with gas by a single gas pipeline. The Lions Way pipeline enhances security of gas supply to Brisbane by s
Slide 22: Best value in the Australian CBM sector on 2P reserves
Best value in the Australian CBM sector on 2P reserves For personal use only Market Cap/2P 2P Reserve Position (Net PJ) 2 1.86 3,000 1.8 2,536 1.57 2,500 1.6 1.41 1.4 1.1 2,000 1.2 0.93 1 1,500 0.8 1,001 0.6 1,000 0.17 0.4 264 500 218 128 0.2 41 0 0 QGC SGL AOE ESG MPO MEL QGC AOE MEL ESG MPO SGL Re
Slide 23: What about on 3P reserves?
What about on 3P reserves ? For personal use only Market Cap/3P 3P Reserve Position (Net PJ) 1.4 7,000 6,560 1.19 1.2 6,000 1 5,000 0.8 0.72 4,000 0.64 0.6 3,000 2,189 0.4 0.28 0.27 2,000 1,419 845 438 0.2 1,000 0.03 54 0 0 SGL QGC AOE ESG MPO MEL QGC AOE MEL ESG MPO SGL Recent takeover targets Re
Slide 24: Next months
Next 12 months For personal use only 9 Large scale gas play at the cusp of commercial development 9 CBM and conventional prospects 9 Moving towards development of a substantial portfolio of gas commercialisation projects. Gas sales of approx 35 Bcf/pa in development (over 30% of the current Brisbane
Slide 25: Disclaimer
Disclaimer For personal use only This presentation may contain forward looking statements that are subject to risk factors associated with the oil and gas business. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables an