Comet Ridge Ltd · ASX:COI
Comet Ridge — Merger or Acquisition (March 2014)
12 slides from Comet Ridge's merger presentation, Mar 19, 2014
Slide 1: Comet Ridge buys back Mahalo interests from Stanwell
www.cometridge.com.au For personal use only Comet Ridge buys back Mahalo interests from Stanwell 19 March 2014 ASX Code : COI www.cometridge.com.au
Slide 2: Executive Summary
For personal use only Executive Summary Comet Ridge buys back interests in Mahalo sold to Stanwell in 2011 In September 2011 Stanwell purchased: ― a 5% interest in the Mahalo Gas Project (MGP); and ― an option to acquire up to a further 35% interest in MGP Stanwell has relinquished these interes
Slide 3: Summary of Key Benefits to COI
For personal use only Summary of Key Benefits to COI Restores COI interest in MGP to 40% with consideration in the form of a 1 GSA or cash payment deferred until Final Investment Decision for the MGP COI retains optionality to maximise value achieved for its equity gas (less 2 gas sold to Stanwell u
Slide 4: Summary of 2011 Option Deed
For personal use only Summary of 2011 Option Deed Original Sale & Purchase Option Deed over the MGP executed with Stanwell in 2011 Sale of 5% interest in ATP 337P Mahalo to Stanwell for $7m – completed December 2011 Funding up to $8m by Stanwell of COI’s expenditure commitments (carrying COI thr
Slide 5: Key Terms of 2014 Agreement
For personal use only Key Terms of 2014 Agreement Stanwell can elect either of the following at FID of MGP as consideration for the relinquishment of its interests in the MGP GSA OR Cash payment GSA with COI for supply of Cash payment of $20m * 20 PJ to 40 PJ from the MGP over Represents rei
Slide 6: Mahalo Gas Project
Mahalo Gas Project Quality project located close to For personal use only infrastructure linking to Gladstone LNG market with gas supply shortages and rising prices Initial drilling and testing exceeded expectations and confirmed a high quality asset: ― 7 to 9 metres of continuous net coal thick
Slide 7: Rationale and Benefits to COI
For personal use only Rationale and Benefits to COI 1. Restores COI interest in the MGP to 40% with consideration in the form of a GSA or cash payment deferred until FID COI interest in MGP increases from 35% to 40% Stanwell relinquishes its option to acquire COI’s interest in the MGP for an ave
Slide 8: Rationale and Benefits to COI
For personal use only Rationale and Benefits to COI 2. COI retains optionality to maximise value achieved for its equity gas (less gas sold to Stanwell if a GSA is elected) GSA to Stanwell for supply of Indicative GSA Example Based on 20 PJ to 40 PJ over 10 years to 35PJ/a Gross Project Field Deve
Slide 9: Rationale and Benefits to COI
For personal use only Rationale and Benefits to COI 3. Provides COI exposure to increased gas prices from production or gas reserves from the MGP in a tightening East Australian gas market Gas prices have risen strongly since 2011: Long-run LNG netbacks ― Gas traded on the Brisbane STTM at $3.25/G
Slide 10: East Australian Gas Shortage Widely Reported
For personal use only East Australian Gas Shortage Widely Reported Queensland LNG to be slowed by gas Australian LNG boom could cause shortage: Citi domestic gas shortages The Australian Financial Review, 17 March 2014 Platts, 29 November 2013 LNG demand to force spike in gas price NSW gas shortage
Slide 11: Summary
For personal use only Summary Buying back Stanwell’s interests in the MGP provides considerable benefits to COI: ― Restores COI interest in the MGP to 40% ― Provides a potential cornerstone gas customer to underwrite future development ― Provides COI with optionality to maximise value achieved for
Slide 12: Important Notice and Disclaimer
For personal use only Important Notice and Disclaimer Disclaimer This presentation (Presentation) has been prepared by Comet Ridge Limited (ABN 47 106 092 577) (Comet Ridge). The Presentation and information contained in it is being provided to shareholders and investors for information purposes onl