Star Energy Group Plc · LSE:STAR
Star Energy — Dart Energy — Sanford C. Bernstein China Unconventional Gas Investor Day 2011
23 slides from Star Energy's conference presentation, Feb 16, 2011
Slide 1: China Unconventional Gas Investor Day 2011
Sanford C. Bernstein’s China Unconventional Gas Investor Day 2011 Simon Potter (CEO) Hong Kong, 16 February 2011
Slide 2: To Be the First Global Coal Seam Gas Company
DART ENERGY TO BE THE FIRST GLOBAL COAL SEAM GAS COMPANY • Resource rich Governments with massive unfulfilled energy markets are racing to create domestic CBM industries and need credible and reliable industry leaders to emerge Opportunity • This is “The Time” for CBM and unconventional gas – compan
Slide 3: Track Record, Experience and Opportunity
DART ENERGY TRACK RECORD, EXPERIENCE AND OPPORTUNITY BOARD AND MANAGEMENT • Nathan Rayner – Chief Operating Officer • Peter Roles – Chief Technical Officer • Martin Cooper – Chief Financial Officer • Eytan Uliel – Chief Commercial Officer • Robbert de Weijer – Australia MD COST, EFFICIENCY, TECHNOLO
Slide 4: Clear Commercial Targets
DART ENERGY CLEAR COMMERCIAL TARGETS Target of 70 PJ per annum net production by 2015 Mongolia 1 Revised forward targets to end 2011, as follows: Beijing North Korea Sign-up 4 new licenses (including Composite) South Korea Appraise and execute 6 new pilot projects Afghanistan 2 CHINA Negotiate and e
Slide 5: China Assets: Elephant Hunting
CHINA ASSETS ELEPHANT HUNTING RESOURCE (BCF, gross, per NSAI) Liulin: OGIP 808; 2C 241; 3P 85 Dajing: OGIP 6,589; Prospective 3,481 PROGRAM Liulin pilot drilling ongoing; initial GSA signed; move to early production; reserves upgrade Dajing to commence exploration program PIPELINE Further Liulin equ
Slide 6: China: Liulin PSC - 2010 Objectives
CHINA: LIULIN PSC FORTUNE LIULING GAS (FLG) – 2010 OBJECTIVES Complete CUCBM’s State Pilot Project objectives: Production capacity: 50 x 106 m3/year Chinese reserves certification: 7.5 x 109 m3 Well-count: • 50 x vertical/frac • 5 x horizontals Additional FLG Objectives Test all major seams
Slide 7: China: Liulin PSC Overview
CHINA: LIULIN PSC Overview • Xian Changqing Design institute has been commissioned to design the gathering system and nodal compression. • GSA - 1.3 BCF per annum over a period of 15 years. First gas to be delivered by July 2011, take-or-pay obligations commencing July 2012 • Agreed gas price 1.58 R
Slide 8: China: Liulin PSC 2011 Proposed Well Design
CHINA: LIULIN PSC 2011 PROPOSED WELL DESIGN 4,000m Inseam Cluster (development concept) inseam – 2 x inseam wells hole – Up to 3 layers Initially – Up to 24,000m of inseam hole target – All operations on one drill pad seams – Drilling to commence in 2011 on 3 3/4 & 5 clusters 1 drill Pad 30m 0.9km2
Slide 9: China: Dajing PSC Competitive Outlook
CHINA: DAJING PSC COMPETITIVE OUTLOOK 9
Slide 10: China: Dajing PSC Drill Hole Distribution Map
CHINA: DAJING PSC DRILL HOLE DISTRIBUTION MAP For Y1( Phase I) Exploration commitment: 14 exploration wells Minimum expenditure obligation: $4 mm USD For Y2 (Phase II) Exploration commitment: 6 exploration wells & 5 pilot wells Minimum expenditure obligation: $5 mm USD For Y3 (Phase III) Exploration
Slide 11: China: Dajing PSC 2011 Program
CHINA: DAJING PSC 2011 PROGRAM • 14 core wells planned for 2011. <500m • Later wells could be converted to pilot wells (subject to partner approval). 500-1000m >1000m 11
Slide 12: China: Growth Opportunities
CHINA GROWTH OPPORTUNITIES New PSCs •Foreign cooperation granted to wider group of companies •CNOOC strategic relationship with CUBCM Farm-ins and acquisitions •High entry costs; “Inherit the baggage” Down Stream Partners •Integrate different skills sets Alliance 12
Slide 13: China: Issues
CHINA ISSUES COST STRUCTURE MARGIN CO-OPERATION TECHNOLOGY GROWTH SHALE 13
Slide 14: Dart Energy Portfolio: International Multiple Market Approach
DART ENERGY PORTFOLIO AN INTERNATIONAL, MULTIPLE MARKET APPROACH 1 1 In addition Apollo has 2 Geothermal Licences covering 3,500 km2 An international portfolio approach allows: Balance and offsetting of risk g and experience Transfer of learning p g g p across geographies g / operating and licencing
Slide 15: Expenditure by Region
EXPENDITURE BY REGION Potential capital expenditure - 2010E Potential capital expenditure - 2011E Total: $40m Total: $78m 0% Australia m Australia m China China ™ Indonesia ™ Indonesia Mindia mlndia @ Vietnam Vietnam ™ Europe/other ™ Europe/other 1s DART#ENERGY
Slide 16: Development Funnel
DEVELOPMENT FUNNEL 2 Years Delivered or likely to be delivered Indonesia HoA Possibility of delivery 1 Year Maturing Poland: New Licences Now Australia Europe licences Kebur UK: 14th Round Apollo 461 Hanoi FEEC Dajing Sangatta West Apollo 458, 456 CMM India Liulin Adaro I - V Apollo 463 Tanjung Enim
Slide 17: Disclaimer and Important Notice
DISCLAIMER AND IMPORTANT NOTICE This presentation contains forward-looking statements that are subject to risk factors associated with the gas and energy industry. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a range of variables outs
Slide 18: Australia Assets: Going Again, Grow Fast, Grow Big
AUSTRALIA ASSETS GOING AGAIN – GROW FAST; GROW BIG RESOURCE (BCF, gross, per NSAI) Apollo: 7 PELs - 23,600km2, 2 geothermal licences - 3,500km2 1 PEL458: OGIP 1,342; 2C 542 PEL456: OGIP 2,042; 3C 939 Pipelines Other PELs: Work in progress PARTNERS (takeover offer announced) PROGRAM PEL 458 - complet
Slide 19: Acquisition of Apollo Gas: Company Overview
ACQUISITION OF APOLLO GAS COMPANY OVERVIEW • 7 PELs - 23,600km2, 2 geothermal licences - 3,500km2 • CSG plays, conventional gas and shale • Core hole drilling program, seismic surveys and testing active in 5 PELs • Santos QNT proceeding with farmin work program in PEL 456 • Projected demand growth i
Slide 20: Indonesia Assets: Potential for Early Production
INDONESIA ASSETS POTENTIAL FOR EARLY PRODUCTION RESOURCE (BCF, gross, per NSAI) Tanjung Enim: OGIP 472; Prospective 307 Sangatta West: OGIP 587; 2C 314 PROGRAM Sangatta West, pilot tests commencing; reserves certification; move to early production Tanjung Enim to commence 6 well exploration and pilo
Slide 21: India Assets: Multiple Opportunities
INDIA ASSETS MULTIPLE OPPORTUNITIES PARTNERS RESOURCE (BCF, gross, per NSAI) Asam: OGIP 1,960; Prospective 750 Satpura: OGIP 1,798; Prospective 910 PROGRAM TR block dewatering CBM-IV blocks (x2) recently awarded PIPELINE CMM (x3) ONGC farm-ins MARKET STRATEGY Local sales as CNG. Once scale establish
Slide 22: European Assets: Composite Acquisition Adds Optionality
EUROPEAN ASSETS COMPOSITE ACQUISITION ADDS OPTIONALITY RESOURCE (BCF, gross, per NSAI) CSG OGIP 18,130; Prospective 8,600; 2C 770 Shale OGIP: 1,220 ASSETS 15 UK blocks; 2 Poland blocks - In-place team Dart acquired 10%; options to increase to 20% in Jan 2011 and 100% in June 2011 PARTNER Major partn
Slide 23: European Shale
EUROPEAN SHALE PEDL 133 Two potential shale gas plays within PEDL 133; • The Black Metals Marine Band at depths between 1,000 and 4,000 feet. Appraised by coring at two locations on PEDL 133. Estimated GIP: 0.3 – 4.0 Tcf (NSAI range) • The West Lothian Oil Shale Formation at depths >6,000 feet. Appr
Dart Energy — Sanford C. Bernstein China Unconventional Gas Investor Day 2011 on 6ix