Challenger Gold Limited · ASX:CEL
Challenger Gold — Investor Presentation (March 2012)
16 slides from Challenger Gold's investor presentation, Mar 21, 2012
Slide 1: Excellence in Oil & Gas
For personal use only Excellence in Oil & Gas 22 March 2012 1
Slide 2: Disclaimer
Disclaimer For personal use only This announcement contains “forward-looking statements”. Such forward-looking statements include, without limitation: estimates of future earnings, the sensitivity of earnings to oil & gas prices and foreign exchange rate movements; estimates of future oil & gas prod
Slide 3: Corporate Overview
Corporate Overview For personal use only Shares on Issue: 289.5 million1 Listed Options: 105.2 million2 Unlisted Options: 30.5million Share Price: $0.075 20/3/12 Market Cap: $21.7M Note 1: Includes shares to be issued under recent raising Note 2: 20c Options - 30 June 2012 3
Slide 4: Strategy
Strategy For personal use only Identify, acquire and appraise material upstream oil and gas exploration opportunities: Primarily unconventional hydrocarbons, CBM, Shale Gas, tight Oil. Low cost of entry, with primary expenditure on the drill bit High materiality (> 1 TCF Gas, or >10 Million
Slide 5: Why Unconventional?
Why Unconventional? For personal use only Can test large play concepts cheaply Attractive acquisition targets for major Oil & Gas Companies LAND: Typical range is $9,500 Deal Location Date Net Acres Value to $15,000 per acre, BHP - Petrohawk Eagleford (SA) July 11 1,000,000 US$12.0b though some
Slide 6: Presenting today
Presenting today For personal use only Mercury Stetson Shale Gas Prospect Barnett Shale Woodford Shale South Africa Cranemere Project - Fort Brown Shales 6
Slide 7: Mercury Stetson
Mercury Stetson For personal use only Proven Shales Barnett Woodford Large prospect area – ~55,000 (85 sqm) Contiguous Leases ~ 26,000 acres Target ~ 35,000 acres OGIP – 360 BCF/sqmile (55 sq miles) Potentially > 1.5 TCF net to CEL 7
Slide 8: Has all the elements of successful shale
Has all the elements of successful shale For personal use only Element Target Mercury Stetson Kerogen Type Amorphous Kerogen Amorphous Kerogen Organic Richness (TOC) 2% to 6% Range: 2% to 5% Gas in Place >100 BCF/sq.mile 360 BCF+ estimate Thermal Maturity 1.0 – 1.8% Ro 1.5% Barnett 1.5% Woodford Upl
Slide 9: Mercury Stetson – Log Analysis
Mercury Stetson – Log Analysis Only well to intersect For personal use only Drilled in 1978 – chasing Barnett Shale 10,725 conventional target at 17,000 ft. Log shows High Gamma Good “Density” porosity across the shale interval High Resistivity indicating Sycamore Lime presence of Hydroc
Slide 10: Barnett Shale Log
Barnett Shale Log For personal use only Well sidetracked from original well at 5 000 ft. ~ 600 ft apparent thickness High gamma High resistivity High density porosity 10 – 14% Upper 8-12% Lower Strong gas shows 500 – 600 units(5 – 6%) 10
Slide 11: How much gas?
How much gas? For personal use only OGIP for the prospect is estimated at 360 bcf/sq mile Net (100%) ownership of target area 35,000 acres (55 sq miles) OGIP 360 x 55sqmiles = 19.8 TCF Current industry expectations are for recovery factors of : 15-20% Barnett & 30% Woodford At 15% total re
Slide 12: Mercury Stetson - Go Forward Plan
Mercury Stetson - Go Forward Plan For personal use only Early 2012 2013 and beyond 2012 First BOOK vertical GAS Drill BOOK 2ndCore Vertical Drill 2 Well additional GAS Analysis Well RESERVES COMMENCE HZ wells RESOURCE & Vertical or FULL PROOF Delineation DEVELOPMENT Seismic HZ OF Wells Program Delin
Slide 13: Karoo Basin – International gas focus
Karoo Basin – International gas focus For personal use only Shale Gas within the Karoo Basin Surrounded by Shell & Falcon Permit of ~ 800,000 acres centred on only well (CR 1/68) within the basin to flow significant gas to surface BEE Partners in place EMP submitted September 2010 Curren
Slide 14: Cranemere Geology
For personal use only 14 Cranemere Geology
Slide 15: Cranemere Well (CR 1/68)
Cranemere Well (CR 1/68) For personal use only Drilled 1968 Well blowout ~ 8,300 ft 1.8 MMscfd in 24 hrs US EIA report Karoo Basin large potential “Risked Recoverable Resource” averaged across basin ~ 6.8 BCF / square mile. Equivalent to more than 7 TCF of Risked Recoverable Resource wit
Slide 16: Summary
Summary Mercury Stetson Prospect in North Texas, US For personal use only Two proven shale formations – Barnett and Woodford Massive potential OGIP ~360 BCF/sq mile Large prospect area – potentially up to 55,000 acres (86 sq miles) Close infrastructure Contiguous land position of ~ 26,00