Red Sky Energy Limited · ASX:ROG
Red Sky Energy — Investor Presentation (November 2010)
15 slides from Red Sky Energy's investor presentation, Nov 23, 2010
Slide 1: Red Sky Energy: Moving to the next level....a business update
For personal use only Red Sky Energy Moving to the next level....a business update. Rohan Gillespie, Managing Director 23rd November 2010
Slide 2: Gas Sector Expansion
Gas Sector Expansion For personal use only • LNG driven by Asian demand and competitiveness of Australian supply • Positive news for LNG in Gladstone – BG’s Qld Curtis LNG Project go‐ahead – Environmental approvals for Santos/Petronas and Origin/Conoco projects – Shell/PetroChina completes Arrow acq
Slide 3: Implications for exploration companies
Implications for exploration companies For personal use only • Gas market – Major increase in demand – Global oil price linkage – Gas prices forecast to rise strongly (as happened in WA) • Gas resources – Intensifies demand for gas – LNG projects will soak in gas from a wide radius • Attract new pla
Slide 4: Role of Clarence Moreton Basin
Role of Clarence Moreton Basin For personal use only • Geographically well positioned – Access to SE Qld via proposed Lions Way Pipeline – Link Li k tto start t t off Gladstone Gl d t pipelines i li att Dalby D lb via i RBP – Comparable distance to market as for Galillee (700kms to Gladstone vs 600k
Slide 5: Gas resource in Clarence Moreton Basin
Gas resource in Clarence Moreton Basin For personal use only • Potential size within basin – ~12,000km2 (~167 blocks) – Metgasco has independently certified reserves and resources of 3.8TCF within only six blocks (450km2) – Extrapolated this equates to a potentially recoverable resource of 105TCF •
Slide 6: Basin valuation is lagging others
Basin valuation is lagging others For personal use only • Basin has lacked exposure – Due to lack of majors in the basin, Metgasco has been sole player to date • Metgasco is considered to be undervalued • Comparison with peers – Eastern Star Gas – has a market capitalisation of $690m net of cash – R
Slide 7: Red Sky in Clarence Moreton Basin
Red Sky in Clarence Moreton Basin For personal use only • Metgasco – Hold approx 36% of the basin by acreage – Continuous exploration/appraisal since 2004 – Spent $40m to date • Arrow (Shell/PetroChina) – Hold approx 44% of the basin – Five core program proposed • Red Sky Energy – Hold approx 16% of
Slide 8: Forward plan
Forward plan For personal use only • Reserves Expansion Project – Two phases – Phase 1 underway – Phase 1 through 2011 – Subject to available funds • Target – Increase reserves to 1200PJ with five wells – Increase reserves to 2400PJ with further five wells NOV DEC JAN FEB MAR APR Initial will provid
Slide 9: Red Sky valuation
Red Sky valuation For personal use only • Red Sky acreage has same potential as Metgasco – Prospective across all plays: CSG and conventional • Comparison now – Based on Metgasco current market cap – Red Sky need only spend $10m to achieve Metgasco’s current reserves position – Guidance provided by
Slide 10: Other assets – Yaraka Project
Other assets – Yaraka Project For personal use only ATP946 is located near the Gilmore Gas Field in the Eromanga Basin. The main coal bearing formation in the area is the Winton Formation, with depths of 800m and with a likely thickness of 400‐ 600m. Net coal accumulations are estimated to be up to
Slide 11: Other assets – Taroom Trough Project
Other assets – Taroom Trough Project For personal use only A number of wells around ATP840 have tested gas in the Early Triassic and Late Permian sands Drilled in the early 1960’s Identified basin centred tight gas play Greater flows (>10times) expected by latest techniques for fraccing horizontal w
Slide 12: Other assets - Sandy Camp Project
Other assets ‐ Sandy Camp Project For personal use only Sandy Camp #1 well lies in the Kurrabooma #1 well d ill d b drilled by ESG southern sector of PEL 467, Red Sky’s proposed near the northern edge of PEL Carinda #1 Well Baradine Creek #1 481. well drilled by ESG 12 seams were identified from the
Slide 13: Update on current exploration
Update on current exploration For personal use only • Talma #1 – Coring to commence 28th Nov – Expected E l ti 8th December t d completion D b • Annvale #1 – Coring expected to commence 9th December – Expected completion 20th December • Carinda #1 – Spud 27th November – Expected d completion l 15th
Slide 14: Red Sky undervalued
Red Sky undervalued For personal use only $800m Shares (m) Listed Options (m) Unlisted Options (m) ROG.AX $700 $700m Current C 1 121 1,121 298 208 issued (ROGOA ‐ 2 cent Sep (200m 4 cent 2014, 6m 20 Eastern Star Gas capital 2011) cent 2010, 2m 20 cent $600m 2011) Capitalisattion TOTAL 1,121 298 208
Slide 15: Disclaimer
Disclaimer For personal use only The information presented herein contains predictions, estimates and other forward looking statements that are subject to risk factors that are associated with the oil and gas business. Certain information in this presentation has been derived from third parties and,
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