Metgasco Ltd · ASX:MEL
Metgasco — ABN AMRO Emerging Gas/Coal Seam seminar (September 2008)
16 slides from Metgasco's conference presentation, Sep 4, 2008
Slide 1: Presentation to ABN AMRO Emerging Gas/Coal Seam seminar
For personal use only Presentation to ABN AMRO Emerging Gas/Coal Seam seminar Glenda McLoughlin – Director and Chief Financial Officer September 2008
Slide 2: What's happening in the gas sector?
What’s happening in the gas sector? For personal use only Page 2
Slide 3: Primer on the Australian gas sector
Primer on the Australian gas sector For personal use only Single remote basin to market supply by dedicated pipeline Gas markets historically East coast gas market “locked up” by major players with long restricted term contracts Exploration focussed offshore – targetting LNG scale finds Energy Marke
Slide 4: The emergence of the coal seam gas sector
The emergence of the coal seam gas sector For personal use only In 1996 CSG production in Australia was < 1PJ/annum By 2008, CSG is supplying >133 PJ/annum PNG gas pipeline is cancelled CSG now supplies 60% of the Qld gas market First movers: - Origin and Santos Followed by second generation: - Arro
Slide 5: With a huge increase in gas reserves from CSG
With a huge increase in gas reserves from CSG For personal use only Between 1997 to 2008 CSG 2P reserves have grown from 100PJ TOWNSVILLE to 12,400 PJ Total CSG resources on the east 10,984 PJ GLADSTONE coast are estimated at 60,000 PJ 1,495 PJ SURAT & BOWEN COOPER/ EROMANGA 298 PJ CSG gas reserves
Slide 6: We are at the beginning of the story
We are at the beginning of the story For personal use only Unconventional gas plays are barely developed in Australia Unconventional gas usually refers to: Tight Gas Sands Coal Seam Gas Shale Gas In the US unconventional gas plays account for: - 46% of US gas production (2007) or 9,000 PJ/ per year
Slide 7: What are the market opportunities? Domestic Market
What are the market opportunities? For personal use only Domestic Market East coast gas demand is approximately 800 PJ per annum (2008) Demand is forecast to grow to 1,200 PJ per annum by 2030 (Owen Report) Growth largely driven by demand for “clean” gas from the power generation sector. Page 7
Slide 8: What are the market opportunities? International Market
What are the market opportunities? For personal use only International Market Global LNG demand is forecast to triple by 2030 (ExxonMobil April 2008) Spot LNG sales are increasing 5 export terminals in pre-development at Gladstone Others likely? LNG customers and major players in the LNG industry ar
Slide 9: Some thoughts on the long term implications for the gas market?
Some thoughts on the long term implications for the gas market? For personal use only Gas is likely to emerge as the primary source of base load power generation in the NEM: (AcilTasmanJuly 2008) 6,700MW of coal fired generation is forecast to shut down under an ETS Coal prices are forecast to tripl
Slide 10: What does this mean for an emerging gas producer?
What does this mean for an emerging gas producer? For personal use only Gas-in-Place Possible Probable Proven (Contingent Reserves “3P” Reserves “2P” Reserves “1P” resource) Resources scale is important and converting resources to reserves is the critical first step - This means moving a “resource e
Slide 11: Metgasco strategy
Metgasco strategy For personal use only Metgasco has a large scale resource and has already established the largest certified 2P gas reserves in NSW Coal seam and conventional gas Close to markets and infrastructure Relationships with key customers - CS Energy - BP Development projects well advanced
Slide 12: Metgasco assets
Metgasco assets For personal use only Coal seam gas reserves - 298 PJ (2P) - 1,534 PJ (3P) Significant acreage position – gross 1.5 million acres: PEL 16: - CSG (MEL 96%, CSE 4%) - Conventional (100%) PEL 13: - CSG (MEL 75%, MPO 25%) - Conventional (MEL 50%, MPO 50%) PEL 426: – 50% Reserves establis
Slide 13: Metgasco also has conventional hydrocarbon potential
Metgasco also has conventional hydrocarbon potential For personal use only Kingfisher Field Gas-in-place 12- 70 bcf Seismic indicates seal & trap Riflebird-E14 drilled and flowed gas at 247scf/day Productivity enhancement Mackellar achievable by fraccing and Prospect accessing additional gas bearing
Slide 14: Best value in the CSG sector on 2P reserves
Best value in the CSG sector on 2P reserves For personal use only Mkt Cap/2P Reserves 4.00 3.50 $3.30 $3.15 3.00 $2.29 2.50 $1.86 $1.80 2.00 1.50 $0.93 1.00 $0.36 0.50 0.00 ESG SGL AOE SHG QGC MPO MEL MEL is valued at $0.36 per GJ based on current 2P reserve position. Recent corporate activity has v
Slide 15: Corporate Profile – MEL 1 Year Stock Profile
For personal use only 27 Volum e Share Price ($) /0 8/ 20 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 10 07 /0 9/ 24 20 /0 07 9/ 20 8/ 1 0 07 /2 22 0 /1 07 0/ 2 5 / 0 07 11 / 1 9 2 00 /1 7 1/ 20 3/ 1 2 07 / 1 7 2 00 /1 7 2/ 3 1 20 0 /1 7 2/
Slide 16: Disclaimer
Disclaimer For personal use only This presentation may contain forward looking statements that are subject to risk factors associated with the oil and gas business. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables an
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