Red Sky Energy Limited · ASX:ROG
Red Sky Energy — Investor Presentation (June 2015)
18 slides from Red Sky Energy's investor presentation, Jun 25, 2015
Slide 1: Red Sky Energy Limited Investor Presentation June 2015
For personal use only Red Sky Energy Limited AGGREGATING QUALITY US ONSHORE OIL & GAS ASSETS Investor Presentation June 2015
Slide 2: Disclaimer
Disclaimer For personal use only This presentation may contain certain forward-looking statements that have been based on current expectations about future acts, events and circumstances. These forward-looking statements are, however, subject to risks, uncertainties and assumptions that could cause
Slide 3: Executive Summary
Executive Summary For personal use only Decision to undertake asset aggregation strategy in October 2014 Strategic Direction The Company is now focussed on building a portfolio of US-based onshore conventional oil & gas assets First deal is being executed with definitive binding agreement to a
Slide 4: Company Snapshot
Company Snapshot For personal use only Capital Structure ASX Code ROG Shares Outstanding 2,430,916,486 Options (var ex prices & dates) 160,000,000 Performance Rights 225,000,000 Market Cap (@ 0.1c) $2,430,916 Cash (30 Apr.) $470,000 Shareholder Register (1 Jun.) Energy Infrastructure and Resources P
Slide 5: Incoming Team
Incoming Team For personal use only • ROG has entered into a definitive acquisition agreement with Monument Global Resources Inc. (MGRI). As part of the agreement, MGRI will continue as manager of the oilfield. • MGRI is a management consultancy with significant experience in the US oil & gas indust
Slide 6: Current Directors
Current Directors For personal use only Russell Krause 25+ years of executive management and director level experience in a range of corporate advisory, stockbroking and investment banking roles with some of Australia’s leading financial services firms. Mr. Non-Exec. Chairman Krause also has extensi
Slide 7: Aggregation Strategy
Aggregation Strategy For personal use only • Directors elected to undertake an asset aggregation strategy, taking advantage of the significant decrease in acreage valuations • The aggregation strategy will create a portfolio of producing oil & gas assets with substantial leverage to rising energy pr
Slide 8: Market Opportunity
Market Opportunity Demand remains strong & new supply is being impacted by current market dynamics For personal use only Aggregation Opportunity • After peaking in Oct. ‘14, US rig count has plunged as • US oil production has steadily increased (up 80%), with capital expenditure was sharply cut foll
Slide 9: Cache Transaction
Cache Transaction For personal use only • ROG will acquire a 50% equity interest in the holder of the • ROG will undertake a capital raising to raise up to $1.85m, Cache Field from the current owners Monument Global with a minimum raise of $0.7m Resources Inc. and Mr Robert Morris (the Vendors) Min.
Slide 10: ROG Opportunity
ROG Opportunity For personal use only • Due to current market dynamics, acreage positions are able to be acquired at attractive entry prices with significant upside in a rising energy price environment • Typical value pathway established for oil & gas fields: Early stage drilling & Good understandin
Slide 11: Cache Oil Field
Cache Oil Field For personal use only • Located in the Paradox Basin, Montezuma County in Colorado • 10 miles east of the Greater Aneth Field (1.5bn barrels OOIP & peak production of 100,000 BOPD) • Discovered in 1964, with first production in 1965 (24 historic wells drilled) • 1,840 acres • Vendors
Slide 12: Production History
Production History For personal use only • 24 wells (conventional vertical wells) have been drilled at • As was common practice during the 1970’s, the reservoir 40-acre spacing to date, of which 21 have produced oil was injected with a hot acid solution (28% HCL) to • Initial flow rates were strong
Slide 13: Current Status
Current Status For personal use only • A number of factors suggest that significant recoverable oil #1 well with current production is still present within Cache: - Only 20% of OOIP has been produced to date* - Historic production declined due to poor field management practices under previous owners
Slide 14: Cache Development Program (3 years)
Cache Development Program (3 years) For personal use only • Modern horizontal / multi-lateral drilling & completion techniques should enhance oil production rates from future wells • The current operator has proposed the following work program: 1. General field workover 2. An initial two-well test p
Slide 15: Cache Valuation
Cache Valuation • Global Resources & Infrastructure Pty Ltd has prepared an For personal use only independent opinion of the Fair Market Value of ROG’s 50% equity interest in the Cache Field*: Forecast Revenue (A$m)* - Preferred value of A$30.02m with a valuation range of 20 A$29.66m to A$35.27m 15
Slide 16: Transaction Milestones
Transaction Milestones For personal use only Binding terms sheet entered Final pricing of transaction into with Monument Global Transaction completed & associated capital raising Resources Inc. (Cache vendor) Nov. Dec. 2015 Jan. Feb. Mar. Apr. May Jun. Jul. Sep. Due Diligence Complete Definitive acq
Slide 17: Executive Summary
Executive Summary For personal use only • Strategic redirection of the company to take advantage of opportunity in significant revision in acreage valuations - Building a portfolio of quality producing onshore oil & gas assets that will be levered to a rising energy price environment & management sy
Slide 18: Contacts
Contacts For personal use only Red Sky Energy Halcyon Corporate Clinton Carey Justin Lewis Managing Director Principal clinton@redskyenergy.com.au jlgl@halcyoncorporate.com +61 3 8692 9047 +61 3 9627 9954 Russell Krause Tim Chapman Non-Exec. Chairman Principal russell@redskyenergy.com.au tpc@halcyon