Aj Lucas Group Limited · ASX:AJL
Aj Lucas — Investor Presentation (March 2008)
14 slides from Aj Lucas's investor presentation, Mar 18, 2008
Slide 1: Lucas Energy - an emerging CSG supplier
For personal use only AJ Lucas Group Limited Lucas Energy - “an emerging CSG supplier” Paul Bilston – General Manager, Lucas Energy 18th March 2008
Slide 2: AJ Lucas Group
AJ Lucas Group For personal use only 6mth Two Separate Businesses (A$ Million) 05/06 06/07 ended 31 • Specialist infrastructure / mining Dec 2007 services provider Revenue 171.2 216.4 205.3 • Investor in Coal Seam Gas (from EBITDA 8.4 14.9 18.8 early 2002 when industry Underlying 10.6 19.0 22.1 unde
Slide 3: Operating Business Divisions
AJ Lucas Group For personal use only Operating Business Divisions • Pipelines – Major Gas & Water Pipelines • Western Corridor Water Project $450m (Alliance with Transfield) • Brooklyn to Lara ($43m) & Bonaparte ($140m) gas pipelines – Very strong $324m order book • Drilling – Largest specialist Coa
Slide 4: Lucas Energy - Overview
Lucas Energy - Overview For personal use only • 100% owned by AJ Lucas Group • Established to identify, develop and commercialise CSG & other unconventional gas assets • New management team established in Melbourne Feb 2007 • Separate advisory board • 4 major investments • Initial reserves certifica
Slide 5: Lucas Energy – Overview (2)
Lucas Energy – Overview (2) For personal use only Four initial investments: • PEL 285 – Gloucester Basin – Key focus for Lucas Energy – 1,050 km2 including approx 200 km2 of coal measures – Lucas operator & 70% owner • ATP 651 – Woleebee Creek – 375 km2 in the Walloons Fairway – Lucas 15% owner (QGC
Slide 6: Gloucester Basin - Overview
Gloucester Basin - Overview For personal use only • Exciting new CSG field, close to highest gas priced market in eastern Australia • Rural location 100 km north of Newcastle (NSW) • Coal properties – 200 km2 coal bearing sequence – 11 major seams >2.5m thick – Average total thickness 30–60m – Gas c
Slide 7: Gloucester Basin – Activity
Gloucester Basin –Activity For personal use only • Exploration (past 12 months) – Collated and interpreted existing data set, including existing log and seismic data – Drilled 5 new core holes & 1 new stratigraphic hole – Confirmed potential for southern extents of the Basin – Planning further explo
Slide 8: Gloucester Basin – NSW Gas Market
Gloucester Basin – NSW Gas Market For personal use only • Substantial uncontracted demand for gas in NSW • Demand growth driven by supply of gas into new power generation • Proposed LNG projects in QLD limit potential for gas to supply NSW • Proposed LNG & carbon environment are increasing gas price
Slide 9: Gloucester Basin – Commercialisation
Gloucester Basin – Commercialisation For personal use only • Pipeline to Hexham – Route selection & refinement underway – Consultants for approvals engaged • Gas sales agreements – Reviewing potential for small to medium scale power generation at Stratford – In discussion with a number of potential
Slide 10: ATP 651 Woleebee Creek
ATP 651 For personal use only • Lucas Energy 15% (QGC 68% & Operator, BG 17%) – QGC ownership recently reduced with BG taking a 17% stake in the permit as part of the QGC/BG Alliance – Key focus of QGC exploration effort to support proposed LNG at Gladstone – Previously 6 wells drilled • Recently co
Slide 11: Arawn Energy
Arawn Energy For personal use only • Arawn Energy (BC) Limited – Lucas - 60% • Rationale – Investment vehicle for Lucas in North America, and access to Chris Cornelius & Marc Bustin (Well regarded CSG experts) for technical support • Foundation Investment – Farmout from Encana & Burlington Resources
Slide 12: Sydney Gas Investment
Sydney Gas Investment For personal use only • Strategic investment (15.35%). Options over further 10% subject to milestones and shareholder approval • Andy Lukas CEO • 3 year Technical Services and 2 year Drilling Services Agreements under negotiation – Accelerate exploration and development of Sydn
Slide 13: Summary
Summary For personal use only AJ Lucas Group Listed entity with two underlying business propositions AJ Lucas Group Lucas Energy • Specialist infrastructure / mining • Portfolio of CSG investments service provider • Planning to spin off within next • Strongly positioned in growth 12 months sectors •
Slide 14: Lucas Energy
For personal use only Lucas Energy Paul Bilston – General Manager 18th March 2008