Kinetiko Energy Ltd. · ASX:KKO
Kinetiko Energy — Investor Presentation (March 2012)
22 slides from Kinetiko Energy's investor presentation, Mar 7, 2012
Slide 1: Advanced exploration projects in a rapidly expanding gas market
Advanced exploration projects, For personal use only in a rapidly expanding gas market; with strong asset expansion opportunities. March 2012 ASX: KKO 1 www.kinetikoenergy.com.au
Slide 2: Disclaimer
Disclaimer For personal use only This document should be read in conjunction with any other available information on Kinetiko Energy Ltd. This document is a summary only and does not include all information about the Company’s assets and liabilities, financial position and performance, profits and l
Slide 3: Kinetiko Growth – leverage off Amersfoort
Kinetiko Growth – leverage off Amersfoort For personal use only 3 Kinetiko Energy Ltd
Slide 4: Highlights
Highlights Amersfoort Project drilling progressing as planned For personal use only February 2012 “Confirmed Discovery of 1.12TCF” Contingent Resource @ P50 Strong indications of additional conventional gas above target CBM intervals, below dolerite sills (cap rock) Operations on time and un
Slide 5: Kinetiko rapid growth since IPO
Kinetiko rapid growth since IPO Key Dates Key Events st July 2011 21 Kinetiko Energy Ltd successfully listed on the ASX For personal use only 27th September 2011 Earth Resources Pty Ltd commences drilling (diamond rig) on tenement 30/5/2/3/56ER 27th September 2011 TCP Area 1 PASA Application (4,329K
Slide 6: Kinetiko Directors
Kinetiko Directors Adam Sierakowski - Non-Executive Chairman For personal use only Lawyer and founding Director of Price Sierakowski Law firm and corporate advisor at Trident Capital. Extensive experience in capital raising and ASX transactions for major companies; Director of ASX listed Coziron
Slide 7: Corporate Structure
Corporate Structure For personal use only Capital Structure Shares Existing Shareholders 50 million Seed Shareholders @ 10 cents 10 million Initial Public Offering @ 20 cents 50 million Total Shareholding 110 million Market Capitalisation on IPO @ 20 cents AUD $22M Market Capitalisation @ 18 cents A
Slide 8: Kinetiko JV Partner
Kinetiko JV Partner Badimo Gas are an Experienced BBE partner with a significant land position For personal use only Mr Donald Ncube – Chairman & controlling shareholder of Badimo Respected businessman, Community leader & pioneer of the BEE initiative 22 years in senior management with Anglo Gol
Slide 9: Structure of the Amersfoort Project JV
Structure of the Amersfoort Project JV For personal use only RSA Section 11 granted in May 2011 Amersfoort Tenure registered Minister Approved Section 11 May 2011 Kinetiko 49% equity (JV Operator) Badimo 51% equity Kinetiko to spend first ZAR26m (approx. AUD$4m) Reimbursed past costs Z
Slide 10: South Africa Needs Alternative Gas Supply
South Africa Needs Alternative Gas Supply For personal use only Little Domestic Gas availability – price increasing Intensive power demand exceeds supply (in crisis) Coal supply's ~77% of energy Coal mining costs are rising Competition from the export trade Increasing need for Gas in exi
Slide 11: Gas Markets and Energy Infrastructure in South Africa
Gas Markets and Energy Infrastructure in South Africa Ten of RSA's largest coal fired power stations within 250kms of Amersfoort For personal use only Eskom is seeking gas / coal co -fired to meet increased efficiency and environmental trends RSA gas consumption increased over 200% between 200
Slide 12: Amersfoort Project Overview
Amersfoort Project Overview Gustavson and Associates For personal use only Gas in place (GIP) 1.7Tcf Contingent Resource of 1.12Tcf (P50) Assessment from 800+ holes in the area 2 gas exploration permits - 1,800km2 Exploration and Evaluation 16 hole diamond coring program 5 Permeabili
Slide 13: Potential at Amersfoort
Potential at Amersfoort For personal use only Over 800 coal exploration drill holes in the Amersfoort area Rare and unique definition of coal seam data and thickness Underground coal operations nearby indicates gas and coal content Major Commercialisation potential Significant potential of
Slide 14: Amersfoort Exploration
Amersfoort Exploration Overall Aim: improve Resource definition for 56ER and 38ER within 18 months For personal use only Phase 1: Drill 8 Exploration Drill Holes in 56ER Phase 2: Drill 8 Exploration Drill Holes in 38ER Phase 3: 2-3 Permeability Wells in 56ER Phase 4: 2-3 Permeability Wells
Slide 15: Amersfoort Exploration – Phase 1
Amersfoort Exploration – Phase 1 Exploration optimises spatial coverage and targets gassy holes. For personal use only • Phase 1 - Drill 8 core hoes at Amersfoort (56 ER) • After drilling conduct Wire line Logging and Water quality sample Results (early March 2012) are below: Hole ID Status Depth (m
Slide 16: Amersfoort Exploration results to date
Amersfoort Exploration results to date 115 core samples to desorption to date For personal use only Tests have produced encouraging data and results from Targeted coal seams & thick carbonaceous mudstones Wire line logging of 6 holes KA06 360m - controlled flaring of Strong indications of sh
Slide 17: Exploration Program will Improve Project Certainty
Exploration Program will Improve Project Certainty* Permeability Tests are key to attain “Reserves” For personal use only Illustration only 1P 2-3 Permeability Tests – Commence Late 2012 2P 2-3 Permeability Tests – Commence Mid 2012 3P Contingent Resource 1.12 Tcf 16 Exploration Holes - by mid 2012
Slide 18: Commercialisation studies underway
Commercialisation studies underway Gas Distribution Options For personal use only Supply CNG (Compressed Natural Gas) Pipelines to allow scale, and if attractive supplemented by road tankers Supply Mini LNG or LPG Pipelines to allow scale, and if attractive supplemented by road tankers Market Gas Co
Slide 19: Kinetiko Growth – leverage off Amersfoort
Kinetiko Growth – leverage off Amersfoort For personal use only 19 Kinetiko Energy Ltd
Slide 20: Kinetiko Growth
Kinetiko Growth Kinetiko’s actual and potential exploration area For personal use only Amersfoort Project JV (current drilling operations 56ER & 38ER) 1,874Km2 TCP Area 1 Application 4,329Km2 TCP Area 2 Application 1,458Km2 TCP Area 3 Application 1,888Km2 TCP Area 4 Application 363Km2 Badimo Gas App
Slide 21: Our High Level Year Strategy
Our High Level 5 Year Strategy Our 5 Year Strategy is focussed CBM Exploration and selective targeting of other Gas opportunities. For personal use only Our Strategy is comprised of Four Pillars, as below. Kinetiko Growth & Transformation (Value Realisation) Focus on CBM and opportunistic to other
Slide 22: Summary - Strong foundation and high growth
Summary - Strong foundation and high growth For personal use only *Kinetiko has a strong foundation & an attractive growth Potential Amersfoort Project 1.12TCF (based on 3 out of 16 holes) Strong Management Team and Technical Team (IP) Strong JV Partner Local and Regional Market Demand Upward South