Red Sky Energy Limited · ASX:ROG
Red Sky Energy — Investor Presentation (May 2011)
13 slides from Red Sky Energy's investor presentation, May 3, 2011
Slide 1: Red Sky Energy: Focus on near term production
For personal use only Red Sky Energy Focus on near term production....a business update. Rohan Gillespie, Managing Director 3rd May 2011
Slide 2: Clarence Moreton Basin – results to date
Clarence Moreton Basin – results to date For personal use only • Two core hole program – Annvale #1 and Talma #1 – Target Walloon coal measures – Completed last month • Very successful program – ~ 20 metres of gassy coals in each well – Major upgrade to certified reserves • Red Sky Energy delivered
Slide 3: Major reserves position
Major reserves position For personal use only Walloon Coals Reserves independently certified by MHA Petroleum Consultants (100% basis). Probable Reserves 2P 17PJ Possible Reserves 3P 380PJ Contingent Resources 2C 629PJ Within permits PEL 479 and 457. Red Sky has earned 30% interest in these permits
Slide 4: Power generation - alternative gas market
Power generation - alternative gas market For personal use only • Gas into power is a viable option – Significant local demand (~250MW) – Nearby high voltage electricity grid – Confirmed by specialist consultant • Gas prices expected to rise strongly – LNG pricing linked to oil price – Likely to flo
Slide 5: New gas play – Kangaroo Creek formation
New gas play – Kangaroo Creek formation For personal use only • New gas discovery • Found in the recent Talma well • Gassy sandstone resource sitting above Walloon coals • Attractive features – Shallow, hence low cost development – Laterally extensive – Thick – up to 300 metres – Expect minimal wate
Slide 6: Near term power opportunity
Near term power opportunity For personal use only Strategic drivers • Quickest route to production – Match power station to Kangaroo Creek resource – Small power station more do-able • Materiality – Value created could be significant in terms of Red Sky cents per share • Demonstrates producibility –
Slide 7: Summerland Way Power Project
Summerland Way Power Project For personal use only • Pre-feasibility study completed – Involved major engineering consultants – Grid connection study undertaken – Project configuration and costings assessed – Site options assessed close to Kangaroo Creek gas resource • Project configuration – Size 2
Slide 8: Forward plan
Forward plan For personal use only • Feasibility Phase – Confirm gas resource – Confirm project costs – Negotiate major contracts – Secure funding – Target project go-ahead in 2013 2011 2012 2013 Pre-feasibility Complete Talma Pilot Further Pilots and Certified Reserves Grid connection agreement Lan
Slide 9: Key initial step - Talma Pilot
Key initial step - Talma Pilot For personal use only • Single well pilot • Located adjacent to the Talma #1 well site • The process to secure regulatory approvals has commenced • Landowner consents in place. • Planned to drill the pilot well during June/July 2011 • Operating in August 2011. • Operat
Slide 10: Capital structure
Capital structure For personal use only ROG.AX Shares (m) Listed Options Unlisted Options (m) (m) As of 28th April 2011 1,231 298 268 (2 cents, exercisable to (200m @ 4 cents till 18/9/14, 2/9/11) 60m @ 2.25 cents – directors) TOTAL 1,231 298 268 • Market capitalisation : $21m at 1.7 cents/share • C
Slide 11: Red Sky Energy team
Red Sky Energy team For personal use only • Rohan Gillespie: Managing Director. As Vice President and Chief Operating Office, Rohan created and led BHP Billiton’s CSG business . He has extensive experience in gas commercialisation including power generation and petrochemicals. Prior roles include cr
Slide 12: Fundamentals of gas in Eastern Australia
Fundamentals of gas in Eastern Australia For personal use only LNG market in Gladstone creates huge demand • Two projects committed, two more likely to follow – Initial 8 trains totalling ~34mtpa of LNG – Buyers want evidence full 20 years of contracted gas is there – Requires ~55TCF of gas – Anothe
Slide 13: 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,