Metgasco Ltd · ASX:MEL
Metgasco — Investor Presentation (April 2009)
26 slides from Metgasco's investor presentation, Apr 8, 2009
Slide 1: Excellence in Oil and Gas
For personal use only Excellence in Oil and Gas April 2009 David Johnson, Managing Director
Slide 2: Disclaimer
Disclaimer For personal use only This presentation is being provided for the sole purpose of providing the recipients with background information about Metgasco Ltd (Metgasco). No representation, express or implied, is made as to the fairness, accuracy, completeness or correctness of information con
Slide 3: Today's agenda
Today’s agenda For personal use only Executive summary Overview Industry dynamics Coal seam gas Conventional gas Commercialisation strategy Next 12 months Capital raising Investment risks Appendix
Slide 4: Executive summary
Executive summary For personal use only Metgasco holds a portfolio of Coal Seam Gas and conventional hydrocarbon assets in NSW Metgasco has embarked on a well defined gas strategy aimed at exploiting both gas and Key Value Proposition electricity markets with an aim to fast track development of
Slide 5: Overview: Building a significant presence in CSG & conventional gas
Overview Building a significant presence in CSG & conventional gas For personal use only Metgasco listed on the ASX in December 2004 with the aim of exploring and developing the coal seam and conventional gas potential of the Clarence Moreton Basin in northern New South Wales Listed in December 20
Slide 6: CSG is a growing energy resource in Australia
Industry dynamics CSG is a growing energy resource in Australia For personal use only Estimated 2P Reserve Position CSG production in 1996: < 1PJ /year CSG production by 2008: > 127 PJ /year Between 1997 to 2008 CSG 2P reserves have grown from 95 PJ to 12,174 PJ 12,174 PJ Total CSG resources
Slide 7: Significant future growth in gas demand
Industry dynamics Significant future growth in gas demand For personal use only Domestic Market The domestic market for gas is growing “dash for gas” – imminent introduction of carbon emission trading has increased demand for “low CO2 producing” gas fired electricity generators imminent privat
Slide 8: CSG is a strategically valuable asset
Industry dynamics CSG is a strategically valuable asset For personal use only A number of recent transactions have occurred that highlight the value of Australian CSG assets $4.91 $4.02 $4.08 EV/2P ($/GJ) $2.72 $2.37 $2.53 $2.11 $1.67 $1.71 BG/QGC (Feb-08) PETRONAS/STO Shell/AOE (Jun- QGC/SHG (Aug
Slide 9: Tenements and location
Coal seam gas Tenements and location For personal use only Large acreage position in northern NSW of 6,000 km2 (gross) Metgasco’s CSG Acreage position Gross Area (km2) PEL 16 1 830 km2 PEL 132 1,652 km2 PEL 4262 2,448 km2 Total 5,930 km2 1. In JV with CS Energy; 2. In JV with Molopo Close to mar
Slide 10: Significant gas resources located in Clarence Moreton
Coal seam gas Significant gas resources located in Clarence Moreton For personal use only A substantial reserve position has been PEL 16 - Growth in gross reserve base (PJ) established Significant opportunity for further reserve growth : 2P reserves booked in 4 out of 11 blocks in PEL 16 rep
Slide 11: Pilot production testing
Coal seam gas Pilot production testing For personal use only Flaring at Pilot Well Corella-11 Metgasco is currently running a pilot testing program Lead well in the pilot (Corella-11) produced at 200,000 scf/day 1P Reserves – now achieved Demonstrated by pilot production History matching t
Slide 12: Proven gas reserves established
Coal seam gas Proven gas reserves established For personal use only 1P reserve certification of 2.7 Petajoules (proven, undeveloped) in PEL 16 represents important milestone and highlights the underlying value in Metgasco’s CSG acreage Commercial significance : demonstrates Metgasco has identi
Slide 13: Conventional gas: Substantial prospects
Conventional gas Substantial prospects For personal use only Kingfisher discovery – announced PEL 16 - Prospects and Leads (OGIP estimates) September 2008: PMean P10 Located on the Mackellar high trend PJ PJ Well was drilled to a depth of 1,296 Kingfisher (contingent resource) 41 77 meters and
Slide 14: Significant growth potential with Kingfisher Field
Conventional gas Significant growth potential with Kingfisher Field 138 For personal use only 80 500,000 MTR 505,000 MTR 510,000 MTR 515,000 MTR 30 12 13 Kingfisher field is part of larger 148 1 43 0 1630 0 80 12 15 geological structure “Mackellar High 80 1 23 0 Trend” 0 13 3 0 123 0 6,815,000 MTR
Slide 15: Commercialisation strategy: Demand Base
Commercialisation strategy For personal use only Demand Base Carbon Pollution Reduction Scheme & Gladstone LNG will support east coast gas demand and require additional supply Lions Way Pipeline Flexible supply capability into market Alliances in place with strong counterparties for gas off ta
Slide 16: Commercialisation strategy: Supply Base
Commercialisation strategy For personal use only Supply Base Lions Way Gas Pipeline – Pipeline to connect gas field to customers in QLD under development: Lions Way Pipeline Lions Way pipeline – 145km pipeline starting in Casino (NSW) and finishing in Ipswich (QLD) Development of pipeline will
Slide 17: Next months: Further drilling and infrastructure development
Next 12 months Further drilling and infrastructure development For personal use only Reserve development drilling to: increase reserves ( 2P & 3P) repeat and improve CSG pilot well engineering performance ( 1P) appraise Kingfisher conventional gas discovery and Mackellar advanced prospect (d
Slide 18: Capital raising
Capital raising For personal use only Total amount to be raised up to Use of funds $15.6m, comprising: % rights issue taken up Coal Seam Gas 0% 50% 100% Share placement of 19.9m shares CSG production drilling 3.0 3.0 3.0 at an issue price of $0.40 per share to raise up to $8.0m Reserve evaluatio
Slide 19: Rights issue indicative timetable
Rights issue indicative timetable For personal use only Event Date Trading halt Thu, 12 March Announce placement and rights issue Tue, 17 March Settlement of placement shares Fri, 20 March Record date for the Rights Offer Mon, 30 March Rights Offer opens Fri, 3 April Mailing of Entitlement and Accep
Slide 20: Investment risk
Investment risk For personal use only Metgasco’s activities, as in any business, are subject to range of internal and external risks and uncertainties which may impact on its future performance. Many are outside the control of the Board and the Company. Prior to making any decision to accept the Off
Slide 21: Market risk
Market risk For personal use only The shares issued by Metgasco are speculative due to the nature of the Company. Metgasco has interest in the development of gas, electricity and pipeline projects. The nature of the industry is highly speculative and no assurances can be made that the Company’s part
Slide 22: Company risk
Company risk For personal use only In addition to the general market risk noted in the previous section, shareholders should be aware of the company specific risk. These include but are not limited to the risks below: There can be no assurance that the Company’s planned development projects and expl
Slide 23: Company risk (continued)
Company risk (continued) For personal use only In addition to the general market risk noted in the previous section, shareholders should be aware of the company specific risk. These include but are not limited to the risks below: Land access is critical for exploration, evaluation and finally produc
Slide 24: Board & Management
Appendix Board & Management For personal use only BOARD MANAGEMENT Dr Peter Power – Chairman Kevin Dixon – General Manager Gas Marketing Former Managing Director of Ampolex. Past Chairman of APPEA. Former Head of Strategy for Australian Pipelines Trust, 30 David Johnson – Managing Director years exp
Slide 25: Financial data
Appendix Financial data For personal use only 1.6 Listed Australian Securities Dec 2004 1.4 Exchange (ASX) 1.2 ASX Code MEL 1 Current Share $0.45 0.8 Price Market Cap $69 million 0.6 0.4 Shares on issue 153.3 million 0.2 5000000 Options on issue 20 million 4000000 0 3/07/2006 3/08/2006 3/09/2006 3/1
Slide 26: Glossary of key terms
Appendix Glossary of key terms For personal use only ASX Australian Stock Exchange Limited Bcf Billion cubic feet (109 cubic feet) CSM Coal Seam Gas. Also known as coal bed methane (CBM). Natural Gas contained within coals CPRS Carbon Pollution Reduction Scheme Clarence Moreton Basin A sedimentary b