Slide 1: Comet Ridge Limited: Focus on Building Reserves
www.cometridge.com.au For personal use only Comet Ridge Limited Focus on Building Reserves ASX Code : COI 16 October 2014 www.cometridge.com.au
Slide 2: Contents
For personal use only Contents Offer Summary Company Overview Mahalo Project Capital Raising Investment Risks and Foreign Selling Restrictions Appendix: Additional Information ASX Code : COI www.cometridge.com.au 2
Slide 3: Offer Summary
For personal use only Offer Summary Offer Structure Placement to raise approx. A$8 million Chairman and MD to participate subject to AGM approval Issue price of A$0.135 per share representing a discount of 16% to last close and 14% to the 5-day VWAP SPP offer capped at A$2 million Use of Fun
Slide 4: Section 1: Company Overview
Section 1: For personal use only Company Overview ASX Code : COI www.cometridge.com.au 4
Slide 5: Comet Ridge Limited
For personal use only Comet Ridge Limited High quality Mahalo Initial Reserves certified Project Two pilots continuing to operate Current production testing and work program to expand Reserves, leading to field development plan Adjacent to Mahalo Field Pilot located 11km from pipeline linkin
Slide 6: Priority Project: Mahalo
For personal use only Priority Project: Mahalo Potential for significant project (gross resource 1,480 PJ, 100% basis) Located close to infrastructure connecting to Gladstone LNG and domestic markets Focus on building Reserves and production Two pilot schemes continuing to operate Low cost
Slide 7: Strategically Positioned for Gladstone LNG
For personal use only Strategically Positioned for Gladstone LNG 4 large LNG consortia and AGL control Qld domgas demand and projected gas 97% of 2P CSG reserves in Queensland** demand for LNG exports Intensifying competition for uncontracted gas reserves driven by LNG demand Mahalo Project we
Slide 8: Comet Ridge – Corporate Overview
For personal use only Comet Ridge – Corporate Overview Capital structure (ASX:COI) 6 month trading history Share price $0.16 Shares on issue 458.7m Market capitalisation1 $73.4m Forecast Cash (30 Sep 14) $2.3m Enterprise value1 $71.1m Source: IRESS 1. Excludes 2.7m performance rights ASX Code : COI
Slide 9: Section 2: Mahalo Project
Section 2: For personal use only Mahalo Project ASX Code : COI www.cometridge.com.au 9
Slide 10: Mahalo Project – Background
Mahalo Project – Background ATP 337P Mahalo Block For personal use only JV partners APLNG and Santos participate in two of the Gladstone LNG projects (COI 40%*, APLNG 30%, Santos 30%) 11km from pipeline infrastructure linking to Gladstone LNG and domestic market with significant gas supply requi
Slide 11: Maiden Reserve Booking at Mahalo
Maiden Reserve Booking at Mahalo COI 40%* Share – Mahalo Reserves & Resources For personal use only August 2014 Reserve Statement delivered initial independently certified COI 3P+3C gas volume = 592 PJ (↑34%) reserves and material upgrade to contingent resources ‒ ↑ 150% at 1P + 1C level (208 PJ)
Slide 12: Mahalo and Mira Field Pilots
Mahalo and Mira Field Pilots Brought on-line in April 2013 (Mahalo) and June 2013 (Mira) For personal use only Mahalo Field Pilot (shown in schematic below) returned to production testing following stimulation in early 2014 ‒ Gas production continuing - steadily increasing since early March with
Slide 13: Mahalo Project Forward Strategy
For personal use only Mahalo Project Forward Strategy Strategy for High quality asset – COI 40% (largest equity interest) Mahalo 2014/15 work program and budget issued by Operator Project Drilling and Mahalo 7 horizontal well approved by JV to spud in Nov 2014 appraisal Further Mahalo Projec
Slide 14: Section 3: Capital Raising
Section 3: For personal use only Capital Raising ASX Code : COI www.cometridge.com.au 14
Slide 15: Offer Details
For personal use only Offer Details Offer Structure Placement to raise approx. A$8 million by issuing 59.3 million shares (11.4% of the issued capital) Chairman and MD to participate subject to AGM approval SPP offer capped at A$2 million Pricing Issue price of A$0.135 per share representing
Slide 16: Use of Proceeds to end FY2015
For personal use only Use of Proceeds to end FY2015 Sources Uses Mahalo Project: Mahalo and Mira pilot operations A$0.8m Cash (30 Sep 2014) A$2.3m Appraisal drilling program * A$4.1m Total A$4.9m Placement A$8.0m Corporate and technical team costs A$2.6m Other Projects A$0.6m Offer costs and exp
Slide 17: Section 4: Investment Risks and Selling Restrictions
Section 4: For personal use only Investment Risks and Selling Restrictions ASX Code : COI www.cometridge.com.au 17
Slide 18: Investment Risks
Investment Risks There are various risks associated with investing in Comet Ridge, as with any stock market investment and, specifically, because of the nature of Comet Ridge’s exploration For personal use only business and the present stage of development of Comet Ridge’s operations. Potential in
Slide 19: Investment Risks (cont'd)
For personal use only Investment Risks (cont’d) The rate at which gas flows from Comet Ridge’s wells will be a determinant of its profitability. There is a risk that gas flow rates from Comet Ridge’s wells will not Gas flow rates be sufficient to meet the requirements of future gas supply contract
Slide 20: Investment Risks (cont'd)
Investment Risks (cont’d) Comet Ridge’s activities in the petroleum industry are subject to legislation, regulation and approvals. The introduction of new legislation, amendments to For personal use only existing legislation, the application of developments in existing common law or policies or th
Slide 21: Investment Risks (cont'd)
For personal use only Investment Risks (cont’d) Comet Ridge’s progress in pursuing its exploration and appraisal programs within the timeframes and currently envisaged cost structure could be influenced by Reliance on the loss of existing key personnel or a failure to secure and retain additional
Slide 22: Foreign Selling Restrictions
Foreign Selling Restrictions WARNING: This Presentation has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) For personal use only Ordinance (Cap. 32) of Hong Kong, nor has it been authorised by the Securities and Futures Commission
Slide 23: Appendix: Additional Information
Appendix: For personal use only Additional Information ASX Code : COI www.cometridge.com.au 23
Slide 24: Portfolio Net Gas Reserves and Resources
Portfolio Net Gas Reserves and Resources Initial independent Reserve certification for Mahalo Project in August 2014 For personal use only Significant independent Resource bookings in four areas Comet Ridge Limited – Net Recoverable Reserves and Resources Location Project COI Reserve (PJ) 1 Cont
Slide 25: Mahalo Buy Back
For personal use only Mahalo Buy Back Comet Ridge announced the buy back of interests in the Indicative GSA Example Mahalo Project previously sold to Stanwell in 2011, increasing COI’s project interest to 40% Based on 35 PJ/a Gross Project Field Development Stanwell can elect either of the follo
Slide 26: Galilee Basin – Gunn Project Area
Galilee Basin – Gunn Project Area ATP 743P, ATP 744P and ATP 1015 (CSG) For personal use only 100% interest in ~8,500 km2 operated by COI plus 20% interest in 870 km2 within ATP 1015P 5 initial wells (2010) and 2D Seismic acquisition programme (2011) 1,870 PJ of 3C Contingent Resource and cons
Slide 27: Galilee Basin – Conventional Gas
For personal use only Galilee Basin – Conventional Gas Conventional petroleum potential 3 historic petroleum wells within ATP 743P and ATP 744P recovered oil and/or gas from Lake Galilee Sandstone at the base of the Galilee Basin Carmichael 1 flowed gas to surface on three tests from deeper sand
Slide 28: Galilee Basin – Commercial Options
Galilee Basin – Commercial Options Galilee Basin market opportunities For personal use only Different market segments emerging for commercial development: coal, power, LNG Development option 1: Power for coal mines / local generation Development option 2: Gas supply to LNG projects at Gladston
Slide 29: Gunnedah Basin – Regional Activity
Gunnedah Basin – Regional Activity Significant investment has been PEL 6, PEL 427, PEL 428 (CSG & Conventional) For personal use only made in the basin (ESG, Santos, EnergyAustralia) and material Reserves delineated ~ 1,600 PJ 2P Santos holds 55,000 km2 in NSW – COI in JV over 18,000 km2 at 22.5
Slide 30: Important Notice and Disclaimer
Important Notice and Disclaimer Disclaimer For personal use only This presentation (Presentation) has been prepared by Comet Ridge Limited (ABN 47 106 092 577) (Comet Ridge). The Presentation and information contained in it is being provided to shareholders and investors for information purposes onl
Slide 31: Important Notice and Disclaimer
For personal use only Important Notice and Disclaimer Competent Person Statement and ASX Listing Rules Chapter 5 - Reporting on Oil and Gas Activities The estimate of Reserves and Contingent Resources for the MGP as part of ATP 337P provided in this presentation, is based on, and fairly represents,
Slide 32: Comet Ridge Limited: Contact
Comet Ridge Limited For personal use only Contact Level 3 GPO Box 798 Telephone: +61 7 3221 3661 283 Elizabeth Street Brisbane 4001 Facsimile: +61 7 3221 3668 Brisbane 4000 Email info@cometridge.com.au www.cometridge.com.au ASX Code : COI www.cometridge.com.au 32