Challenger Gold Limited · ASX:CEL
Challenger Gold — Challenger Energy — Investor Presentation (August 2011)
27 slides from Challenger Gold's investor presentation, Aug 29, 2011
Slide 1: ASX Announcement cover letter
29th August 2011 For personal use only Manager Announcements Company Announcements Office Australian Securities Exchange 10th Floor, 20 Bond Street SYDNEY NSW 2000 Investor Presentation Attached herewith is a copy of the Investor Presentation of Challenger Energy Ltd. For further information please
Slide 2: Investor Presentation August 2011
For personal use only Investor Presentation August 2011 1
Slide 3: 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 4: Corporate Overview
Corporate Overview For personal use only Shares on Issue: 214,021,000 Non Executive Chairman - Michael Fry Michael holds a Bachelor of Commerce degree from the University of Western Listed Options 105,222,171 1 Australia, is a Fellow of Financial Services Institute of Australasia, and is a past memb
Slide 5: Strategy
Strategy For personal use only ` Identify, acquire and appraise material upstream oil and gas exploration opportunities: ` Utilising network of global contacts ` Primarily unconventional hydrocarbons, CBM, Shale Gas, Shale Oil. ` Low cost of entry, with primary expenditure on the drill bit ` High ma
Slide 6: Why Unconventional Gas?
Why Unconventional Gas? For personal use only ` Can test large play concepts cheaply ` Attractive acquisition targets for major Oil & Gas Companies Deal Location Date Net Acres Value BHP - Petrohawk Eagleford (SA) July 11 1,000,000 US$12.0b Historical transactions for BHP-Chesapeake Fayettteville (U
Slide 7: Asset Portfolio
Asset Portfolio For personal use only ` Mercury Stetson Shale Gas Prospect ` Barnett Shale ` Woodford Shale ` Triple Crown ` Hybrid Gas Play ` Ellenburger ` South Africa ` Fort Brown Shales 6
Slide 8: Mercury Stetson
Mercury Stetson For personal use only ` Two proven shale formations – Barnett and Oklahoma Woodford Woodford Anadarko Arkoma ` Large prospect area – Basin Basin ` potentially up to 55,000 acres (86 sq miles) Hollis Basin ` Properties consistent with core areas of current Newark Field Core Barnett sh
Slide 9: Expected Stratigraphy & Thickness
Expected Stratigraphy & Thickness For personal use only Note: TOC results are from cuttings – Actual TOC expected to be ~ 100% higher based on experience with analysis of results in the Barnett shale. 8
Slide 10: Elements of successful shale play
Elements of successful shale play For personal use only Element Mercury Stetson Prospect Kerogen Type - Target: Amorphous Kerogen Amorphous Kerogen Organic Richness (TOC) - Target: 2% to 6% Range: 2% to 5% Avg: Barnett 3.2%, Woodford 3.1% Gas in Place - Target: >100 BCF/Section (sq Mile) 360 BCF+ es
Slide 11: Proven Shales
Proven Shales For personal use only Barnett Shale ` First recognised shale gas project in US with more than 14,000 wells now drilled ` Wells in core area recovering ~ 3 BCF ` Producing 1.8 TCF/yr Woodford Shale ` More recently developed ` Wells in core area recovering ~ 4 BCF ` Over 1,000 wells dril
Slide 12: Mercury Stetson - Go Forward Plan
Mercury Stetson - Go Forward Plan For personal use only 2011 2012 2013 and beyond First BOOK BOOK vertical GAS Drill BOOK ndCore 2 Vertical Drill 2 GAS Well RESERVES additional GAS Analysis Well HZ wells RESERVES RESOURCE & Vertical or PROOF Delineation Seismic Target HZ Target OF Wells Program 600
Slide 13: Triple Crown Prospect
Triple Crown Prospect For personal use only Existing Ellenburger Fields Existing Canyon Sands Fields De ve lop me n t HP Pipeline Dallas Triple Crown Houston San Antonio Edwards County 50 km 12
Slide 14: Triple Crown Prospect - Texas
Triple Crown Prospect- Texas For personal use only ` 45,000 Acres in Edwards County Texas Well ` Options over ~ 6,500 acres acquired ` Challenger has 80% WI (100% before payout) ` Two Targets ` Ellenburger ` Hybrid (Sand/Unconventional) ` First appraisal well successfully drilled Dec/Jan 2011. ` Str
Slide 15: Ellenburger
Ellenburger For personal use only Fracture and high porosity zone ` Drilling results confirmed a significant gas charged structure – potentially multi TCF gas in place ` Fractures and high porosity intersected at the top of the Ellenburger, however zone cemented during setting of casing, which likel
Slide 16: Triple Crown – Canyon Hybrid Play
Triple Crown – Canyon Hybrid Play For personal use only ` Very strong gas shows over an 1150 ft Sand ` Challenger believe this to be a hybrid play that Sand consists of a number of sands interbedded within a large unconventional gas zone 1,150 FT Gas Column Strong Gas ` Preliminary analysis suggests
Slide 17: Triple Crown - Go Forward Plan
Triple Crown - Go Forward Plan For personal use only 2011 2012 2013 Core & Stimulate Petro- & BOOK BOOK Drill Core Pilot physical production test GAS Delineation Analysis production GAS GAS Analysis RESOURCE Wells RESERVES as well as testing SALES regional PROOF mapping OF CONCEPT Land Acquisition D
Slide 18: Karoo Basin – International gas focus
Karoo Basin – International gas focus For personal use only ` Shale Gas within the Karoo Basin is now a major focus for international E&P companies seeking to put their foot on new resources ` Following initial 12 month Technical Co-Operation permits, both Shell and Falcon have moved to the next ste
Slide 19: Cranemere Well (CR 1/68)
Cranemere Well (CR 1/68) For personal use only ` Located in the centre of the Application Area ` Drilled 1968 ` Well blowout at around 8,300 ft ` Peak flow of 16 mmcfd during DST ` Fort Brown Shales ` dark grey to black and carbonaceous with occasional siltstone stringers. ` Strong gas shows in a nu
Slide 20: Summary
Summary For personal use only ` Challenger Energy’s strategy is to identify, acquire and appraise material upstream oil and gas exploration opportunities ` Mercury Stetson Prospect in North Texas, US ` Two proven shale formations – Barnett and Woodford ` Massive potential gas in place with OGIP esti
Slide 21: Appendices
For personal use only Appendices Supporting Mercury Stetson Slides August 2011 20
Slide 22: Prospect Scope
Prospect Scope For personal use only Property Range Average Risks OGIP / Section (Square Mile) (BCF) 280 – 420 360 Based on analog data and comparison of shale properties to existing plays Estimated Recovery Factor (%) 10 – 40% 15% Barnett Dependent on well spacing 30% Woodford Prospect area (Acres)
Slide 23: Joint Venture Agreement
Joint Venture Agreement For personal use only ` Governs relationship between the parties until no leases held by any party. ` Provides for Challenger to earn 50% interest in Phase 1, by the following: ` Payment of up to $2.2 million as and when required for the renewal and extension of existing leas
Slide 24: Scoping Economics
Scoping Economics For personal use only Single Well Case Well IP Capex EUR NPV(10) @ US$/mscf Flat MMSCFD US$M BCF $4.5 $6 $7.5 1 2.0 2.6 2.5 1.8 2.4 3.4 2 3.0 2.6 3.0 2.1 3.4 4.8 3 4.0 4.0 4.0 2.1 3.8 5.5 4 5.0 4.0 5.0 3.0 5.2 7.2 Notes Based on current operators in the sector, `the Expected Ultima
Slide 25: Barnett / Woodford drilling activity
Barnett / Woodford drilling activity For personal use only Oklahoma Map showing Barnett and Woodford remnant basins (purple) with 2000-2011 shale Arnansas Anadarko Arkoma Basin Basin gas drilling areas (yellow Ar A circles) bu B c kl e Ar d M Ba mo Mt Hollis ar si re .U Basin ie n pli M tta ue ft B
Slide 26: NW-SE Ardmore Basin X-Section A-A
NW-SE Ardmore Basin X-Section A-A For personal use only NW SE Stetson Oklahoma Red River Texas /Mercury Area Cretaceous Pennsylvanian Ouachita Caney Barnett Shale Thrust Sheet Shale Devonian Ordovician Woodford Shale 100 miles 25
Slide 27: NE-SW Texas/Oklahoma X-section B-B
NE-SW Texas/Oklahoma X-section B-B For personal use only Stetson / Mercury Area 10 miles east of section S N Muenster Arch Arbuckle Mtns. Ft. Worth Basin Ardmore Basin Arkoma Basin Cretaceous Woodford Shale Pennsylvanian Barnett Shale Devonian Ordovician 120 miles 26
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