Red Sky Energy Limited · ASX:ROG
Red Sky Energy — Investor Presentation (November 2009)
16 slides from Red Sky Energy's investor presentation, Nov 23, 2009
Slide 1: Red Sky Energy - 20:20 Investor Series Presentation
Red Sky Energy ‐ 20:20 Investor Series Presentation Rohan Gillespie, Managing Director 23 November 2009
Slide 2: Value Proposition
Value Proposition • Large prospective acreage portfolio • W ld class World l management team • Near term drilling results • Undervalued with respect to peers
Slide 3: Corporate
Corporate ROG.AX Shares (m) Listed Options Unlisted (m) Options (m) Post Cydonia Resources 686 298 212 acquisition and $4m capital ($31m market cap raise at 4.6 cents/share) Norwest Hydrocarbons 80 acquisition Surat Resources acquisition 80 TOTAL POST SHAREHOLDER 846 298 212 APPROVAL Issue Upon Mile
Slide 4: Large prospective acreage portfolio
Large prospective acreage portfolio • Cretaceous CSG Play in Queensland and NSW – 1700km2 in heart of Surat Basin – 155,000km2 in Surat and Eromanga Basins in northern NSW – Strong evidence of extensive coals g with biogenic charged g ggas • Pedirka CSG Play in Northern Territory – 10% interest in 3
Slide 5: Cretaceous CSG play in Qld and NSW
Cretaceous CSG play in Qld and NSW • Extends across most of southern Qld and NSW – Shallow coals, coals likely to be permeable • Now getting attention – Eastern Star Gas: PEL 428 and 6 in NSW – AGL – PEL 103 in SA – Icon – ATP 626 in QLD, PEL 218 in SA – Rawson – ATP 893 and 901 in QLD Taroom Trough
Slide 6: Cretaceous CSG play in Qld and NSW
Cretaceous CSG play in Qld and NSW Right to earn 100% in two permits; ATP 840 and 904 In heart ea t o of Su Surat at Basin, as , cclose ose to BG, Origin/Conoco, Arrow, et al ATP 840 – 1 well 50%, further 100km 2D seismic and 1 well 100% of non conv rights ATP 904 – 1 well 33.3%, further 2 wells 100
Slide 7: Pedirka CSG play
Pedirka CSG play PEDIRKA BASIN Northern Territory Right to earn 10% across permits totaling 30,000km2 Recent well intersected 140 metres of net coal Laterally y extensive Estimated in excess of trillion tonnes of coal above 1000 metres Potential gas-in-place 7tcf (Red Sky’s 10% share)
Slide 8: Tight gas plays in QLD, NSW, NT
Tight gas plays in QLD, NSW, NT Red Sky Energy is also Tight gas maturing fast evaluating its tight gas potential; – Barnett Shale play in • Surat Basin Texas is 2nd largest gas – ATP 840 Taroom field in USA Trough basin centred PEL 449 – Majors are very active PEL 448 gas (Exxon, BG, Statoil) – Aus
Slide 9: World class management team
World class management team • Industry leading expertise in coal seam gas and business building • Managing Director: Rohan Gillespie – As Vice President and Chief Operating Officer at BHP Billiton built a substantive coal seam gas business • Non Executive Chairman: Gerrit de Nys – Built businesses w
Slide 10: Near term drilling results
Near term drilling results • ATP 840 in Surat Basin, QLD – 1 core hole, location selected – Landowner consents secured – Drilling contract soon to be awarded – Expected spud in January • EP 93 and 107 in Pedirka Basin – 5 core hole program – Contract awarded to Wallis Drilling – Dec 2009 to April 20
Slide 11: Gas in Australia - market pull
Gas in Australia ‐ market pull Australian gas will be pulled into the market • Continued urbanisation of China and India • Geographic closeness • Political stability • Secure petroleum tenure • Competitive royalty regime Australia’s market share is forecast to grow from 13% to 36% • Asian LNG demand
Slide 12: Gas in Australia - resource push
Gas in Australia ‐ resource push Australian gas will be pushed into the market • Emerging unconventional plays maturing fast • • Coal Seam Gas Tight gas . Darwin • Many under‐explored basins • • • Galilee Eromanga Pedirka .. Karratha Onslow . Gladstone • Amadeus . • Beetaloo • • • Canning Arckaringa
Slide 13: Positioning Red Sky Energy
Positioning Red Sky Energy • Red Sky Energy is being positioned to be attractive to major oil/gas companies • Its key selling features are: – Materiality: target portfolio with potential 100tcf gas‐in‐place – Diversity: portfolio of large acreage holdings across a number of basins – Scarcity: major
Slide 14: Capitalisation: CSG sector is undervalued
CSG sector is undervalued $40b Woodside Petroleum $35b $30b Capitalisation $ $25b $20b Sector re‐rating once first Gladstone LNG p project j is Market C $15b committed... Access to high volume oil $10b Santos, Origin, price linked gas market !!! Arrow Energy $5b Established bl h d CSG Producer d Est
Slide 15: Red Sky undervalued with respect to peers
Red Sky undervalued with respect to peers $800m • Average pre‐discovery market cap in 2007 ‐ $27m $700 $700m • First LNG announcement in February 2008 • Entire CSG sector has doubled in value since then • Pre discovery market cap $50m+ in 2009? $600m Pure Energy, • Further re‐rating upon FID of firs
Slide 16: Disclaimer
Disclaimer 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, although Red Sky Ener
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