Galilee Energy Limited · ASX:GLL
Galilee Energy — Shareholder Meeting (November 2015)
24 slides from Galilee Energy's shareholder meeting presentation, Nov 19, 2015
Slide 1: AGM Presentation
19 NOVEMBER 2015 For personal use only AGM PRESENTATION ASX: GLL Peter Lansom Managing Director
Slide 2: Company overview
Company overview For personal use only Well funded, diversified oil and gas explorer trading near cash backing Experienced leadership team with a demonstrated track record of top tier Australian CSG and conventional exploration success Strong shareholder alignment with the directors and manage
Slide 3: Corporate snapshot
Corporate snapshot For personal use only Financial information Top shareholders Share price (17-Nov-15) A$0.115 Ecarlate 12.1% AMP Capital Investors 5.5% Number of shares1 152.1M Ekco Investments 4.6% Market capitalisation A$17.5M Nero Resource Fund 4.2% Cash (30-Sep-15) A$14.9M Directors and manage
Slide 4: Outstanding operational delivery
Outstanding operational delivery For personal use only SUSTAINED OPERATIONAL PERFORMANCE SINCE THE ELECTION OF THE NEW BOARD IN OCTOBER 2013 Galilee has outperformed the S&P/ASX300 Energy Index and oil price, in a period of oil price collapse and despite significant capital markets headwinds Share
Slide 5: Executing on a clear strategy
Executing on a clear strategy For personal use only STRONG AND CONSISTENT EXECUTION OF OUR STRATEGY FIRST OUTLINED IN APRIL 2014 Strategy outlined April 2014 2014 2015 2016 Maximise the Technical review of Acquired 100% Pilot testing value of the 1 historical exploration Upgraded 2C resource
Slide 6: Prudent cash management
Prudent cash management For personal use only GALILEE’S NEW STRATEGY HAS REDUCED CORPORATE EXPENDITURE AND FOCUSED FUNDS ON EXPLORATION Since its election in October 2013, Galilee’s Board and management has been executing on a clear strategy of focused investment and reduced corporate expenditure
Slide 7: Galilee global portfolio
Galilee global portfolio For personal use only NEGLIGIBLE VALUE ASCRIBED BY THE MARKET TO GALILEE’S PORTFOLIO OF HIGHLY STRATEGIC ASSETS Galilee has constructed a portfolio consistent with its corporate strategy A key focus in building the portfolio has been to maintain and acquire assets with s
Slide 8: East coast gas market is structurally short
East coast gas market is structurally short For personal use only EAST COAST GAS IS IN LIMITED SUPPLY – NEW GAS SUPPLY VITAL TO MEET SURGING DEMAND Demand for QLD gas supply will more than triple with GLNG, APLNG and QCLNG online Gas supply market is structurally short – supply needed to service
Slide 9: Glenaras Gas Project - Galilee Basin (ATP 529P)
Glenaras Gas Project - Galilee Basin (ATP 529P) For personal use only GLENARAS GAS PROJECT IS GALILEE’S FOUNDATION ASSET AND REMAINS A KEY EXPLORATION FOCUS Glenaras Gas Project (GGP) has the potential to become a key supplier to the structurally undersupplied east coast gas market Very large, y
Slide 10: Glenaras Gas Project contingent resources
Glenaras Gas Project contingent resources For personal use only 2015 ASSESSMENT SIGNIFICANTLY INCREASED THE GGP RESOURCES AND HIGHLIGHTS ITS POTENTIAL VALUE 2015 MHA Resource Assessment significantly upgraded the contingent resources at the GGP ‒ Highlights the strong opportunity for GGP to supply
Slide 11: CSG properties of Betts Creek
CSG properties of Betts Creek For personal use only BETTS CREEK COAL EXHIBITS EXCELLENT CSG PROPERTIES Successful CSG projects require three key parameters: Betts Creek – Resource Concentration (thickness, gas content) ✓ – Productivity (thickness, permeability) ✓ – Pressure drawdown in the coal (w
Slide 12: Glenaras Gas Project forward program
Glenaras Gas Project forward program For personal use only ASSESSMENT OF R1 SEAM COMMERCIAL PRODUCTION POTENTIAL EXPECTED TO BE COMPLETED IN 1H 2016 Testing of the uppermost R1 coal seam is underway Cash expenditure will be prudently managed over the next 3 quarters with clear focus on the curre
Slide 13: US onshore assets
US onshore assets For personal use only US ONSHORE ASSETS PROVIDE GALILEE WITH POTENTIAL FOR NEAR TERM CASH FLOW Texas – Lavaca County (generally 25-40% WI) Location of USA assets Participation agreement covering 65,000 acres primarily focused around two existing large 3D seismic datasets in Lavac
Slide 14: US onshore assets – Texas
US onshore assets – Texas For personal use only HOFFER B1 IS A CONFIRMED GAS DISCOVERY LOCATED ON THE EDGE OF A SIGNIFICANT CHANNEL Hoffer B1 well a confirmed gas discovery in multiple Middle Midcox sandstones with 43 ft net pay (GLL 43.5% WI BPO, 34.8% APO) Flowed in aggregate ~ 6 MMscfd during
Slide 15: Share price catalysts
Share price catalysts For personal use only GALILEE HAS SEVERAL OPERATIONAL AND MACRO CATALYSTS UPCOMING IN THE NEXT 6 MONTHS GLENARAS R1 coal seam production testing currently underway Commercial Program expected to complete in 1H 2016 flow results Success would be critical in converting 2C r
Slide 16: Appendix
For personal use only Appendix BACKGROUND ON GALILEE MANAGEMENT AND THE GLENARAS PROJECT 16
Slide 17: Board and management team
Board and management team For personal use only EXPERIENCED LEADERSHIP TEAM WITH A HISTORY OF AUSTRALIAN CSG EXPLORATION SUCCESS Coal seam gas experience of Galilee Board and management team Core Galilee exploration team is ex-Origin Energy – Key members of the team that built Origin Energy’s port
Slide 18: Exploration history of Glenaras Gas Project
Exploration history of Glenaras Gas Project For personal use only SUPERIOR GEOLOGICAL UNDERSTANDING BUILT ON COMPREHENSIVE HISTORIC DATABASE Significant historic exploration activity Glenaras Gas Project map – Commenced in 1992 Historic works provided an excellent geological database across the
Slide 19: Glenaras Gas Project pilot performance
Glenaras Gas Project pilot performance For personal use only DESPITE LIMITED HISTORIC PERFORMANCE THERE WERE SIGNS OF COMMERCIAL PRODUCTION POTENTIAL Demonstrating commercial flow is the final Previous Glenaras pilot performance element to booking reserves Previous pilot well designs have failed
Slide 20: Pathway to commercial flow
Pathway to commercial flow For personal use only BETTS CREEK COAL SHOWS Formation Image Log EXCELLENT PERMEABILITY New completion design formulated to suit the geological setting Key is accessing the coal and drawing down pressure in the coal and not the sand Coals have excellent master cleat
Slide 21: Glenaras R1 seam pilot
Glenaras R1 seam pilot For personal use only THE R1 SEAM HAS NOT BEEN TESTED AND HAS THE POTENTIAL TO PROVE SIGNIFICANT RESERVES Galilee has completed the workover program at five Glenaras wells in order to production test the R1 seam – R1 is thickest seam, never completed in initial pilot testing
Slide 22: Structural section across Glenaras Pilot
Structural section across Glenaras Pilot For personal use only Seam R1 R2 R3 R4 R5 R6 R7 22
Slide 23: Competent Person’s Statement
Competent Person’s Statement For personal use only Competent Persons Statement & Listing Rule 5 Reporting on Oil & Gas Activities The estimate of Contingent Resources for the ATP 529 as appears on page 7 of this presentation, is based on, and fairly represents, information and supporting documentati
Slide 24: Disclaimer
Disclaimer For personal use only This presentation may contain forward looking statements that are subject to risk factors associated with oil and gas businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and