Challenger Gold Limited · ASX:CEL
Challenger Gold — Challenger Energy — Investor Presentation (July 2013)
25 slides from Challenger Gold's investor presentation, Jul 29, 2013
Slide 1: Challenger Energy Ltd Investor Presentation
Challenger Energy Ltd Investor Presentation For personal use only July 2013 1
Slide 2: Disclaimer
Disclaimer For personal use only This announcement contains “forward-looking statements”. Such forward-looking statements include, without limitation: estimates of future earnings, the sensitivity of earnings to oil & gas prices and foreign exchange rate movements; estimates of future oil & gas prod
Slide 3: Agenda
Agenda For personal use only !! Company Overview !! Cranemere Project !! South Africa – context !! Summary & Conclusions 3
Slide 4: Company Overview
Company Overview For personal use only !! Presently focused on world class shale play in the Karoo Basin, South Africa !! Discovered gas !! Potentially transformational to the SA economy, highly motivated government !! A company making opportunity - Challenger the only ASX small cap with exposure to
Slide 5: Financial Overview
Financial Overview Home > Prices, Research & Announcements > Charting Detailed search - prices, announcements and charts For personal use only CEL, CHALLENGER ENERGY ORD !"#$%&'$()%&'%$*+$,#-)%&./!01&2345& The chart of daily prices over 6 months for security CEL 2#6(7#8&!7$9)79$%& Fully paid ordinar
Slide 6: Board & Management Team
Board & Management Team For personal use only Chairman Managing Director Adviser Technical Director Country Manager Michael Fry Robert Willes Bill Bloking Paul Bilston Peter Price Qualifications B.Com (UWA), F.Fin BA (Hons), MAICD BSc Mech Eng (Summa B.Eng, PhD. MSc, Royal School of cum Laude), FAIC
Slide 7: World Scale Opportunity
World Scale Opportunity For personal use only Proven Gas to Surface !! Permit of ~ 800,000 acres centred on only well within the basin to flow significant gas to surface (Cranemere) !! CEL first mover - Shell and Falcon/Chevron pursuing adjacent acreage Basin Resource Potential (U.S. Energy Informat
Slide 8: Investment Case
Investment Case 20000 For personal use only $18,489 / acre • Korea National Oil / Anadarko US Mar ’11 18000 • Marathon / Hilcorp Resources US Jun ‘11 • Mitsui / SM Energy (US) Jun ‘12 • Osaka Gas / Cabot Oil (US) Jun ‘12 16000 Recent transactions demonstrate increasing 14000 $4,009 / acre market val
Slide 9: Building the Company
Building the Company For personal use only 1 Growth Platform – Cranmere "! World class exploration asset with high WI "! Re-rating anticipated on permit award "! Advanced farm-in discussions "! BEE partners in place "! Future Legacy Asset - leverage high value position to grow the firm 2 Enhance Sus
Slide 10: Agenda
Agenda For personal use only !! Company Overview !! Cranemere Project !! South Africa – context !! Summary & Conclusions 10
Slide 11: Prime Acreage Position
Prime Acreage Position For personal use only !! Substantial foothold in some of best acreage, adjacent to Falcon/ Chevron permit area !! The application area contains the only well to flow substantial gas to surface (unstimulated, vertical well) !! Easier terrain than that to the north Source: Compa
Slide 12: Discovered Gas
Discovered Gas Cranemere 1 For personal use only 23 ° 24 ° 25 ° 26 ° 23.5 ° 24.5 ° 25.5 ° 26.5 ° Jura ssic Stormberg Group Merriman NOOPOORT Cranemere SP Section Through Offsetting Wells 500 Carboniferous Triassic Beaufort Group Karoo STEYNSBURG 1000 Ecca and Dwyka Flattened on Top Ecca 1500 RICHMON
Slide 13: Geological Setting
Geological Setting Cr 1/68 Vr 1/66 For personal use only SC 3/67 Cape Fold Belt S tormberg s Beaufort eas ure lM Coa Middle Pretoria Ecca S Ecca Shales Mmabatho ds an Cape te Bloemfontein Durban Supergroup l li Ti Sketch Section a yk Through Karoo Basin Dw Cape Town Port Elizabeth CEL Lands !! Fort
Slide 14: Cranemere 1/68 Discovery Well
Cranemere 1/68 Discovery Well For personal use only !! The well entered a gas zone at approximately 8150 ft MDRT which threatened to blow out, it was controlled by closing BOP !! Zone interpreted as fractured Ecca Group shales !! DST 3B over the interval 8154’ – 8312’ produced a strong gas flow to s
Slide 15: Permit Summary
Permit Summary For personal use only !! Applicant – Bundu Gas and Oil Exploration (Pty) Ltd – 90% owned and controlled entity of Challenger Energy Ltd. (CEL), 10% BEE partners !! Area – ~1 million acres (4300 km2) applied for, expecting award ~800,000 acres to allow for game parks !! Prospectivity –
Slide 16: Timeline & Status
Timeline & Status For personal use only Regulatory Shell Technical Falcon Technical Shell application Moratorium Moratorium Framework Co-operation Co-operation for Exploration Introduced Lifted anticipated Permit granted Permit granted Rights Submitted April 2011 Sept 2012 4Q13 2009 Oct 2009 Dec 201
Slide 17: Agenda
Agenda For personal use only !! Company Overview !! Cranemere Project !! South Africa – context !! Summary & Conclusions 17
Slide 18: South Africa – Economy under Pressure
South Africa – Economy under Pressure For personal use only !! Largest economy in Africa; high levels of unemployment and inequality are the key economic problems facing the country. !! Official unemployment 25%, unofficial estimates ~40%, youth unemployment ~53%. !! A quarter of South Africans live
Slide 19: South Africa – Power Issues
! series are plotted together in the chart below. and trains running on compressed natural gas, which could displace displace some of the demand for coal-coal based Although the two price indices do diverge from each other for short periods, the overall level of correlation synthetic fuels.!!! is re
Slide 20: Growing International Interest
Growing International Upstream - Offshore Blocks Interest 20 Key points Increasing Offshore activity with significant global interest For personal use only !! Recent events There is in SA increasing investor interest and offshore acreage. activity regarding ExxonMobil application for Existing partic
Slide 21: Shale Gas in South Africa
Shale Gas in South Africa For personal use only !! Shale gas impact on US energy security and the economy widely acknowledged; !! decreasing reliance on imports, revitalizing existing and creating new industries, stimulating growth, increasing employment and improving the balance of payments (IHS re
Slide 22: Shale Gas: Core to the National Debate
Shale Gas: Core to the National Debate For personal use only !"#$%&'"("%)"&*'+,!-.+/+,"0'$1! ! "!#$%&'(!")*"! ! ! -.+/+,$.&'"2+'03&4%'++&)5%("&6%)&#"7"(+2,"/0&.+8(#&9++)0&:;<&%/#&.'"%0"&58/#'"#)&+*& 05+8)%/#)&+*&=+9)& ! - !"#$%&'(%)*%$+,%-.%/01%,#$234$,5%678%$9*%:$;2<<2)=%9">29%*,,$?%#+4<,%;,#)";9,%
Slide 23: Agenda
Agenda For personal use only !! Company Overview !! Cranemere Project !! South Africa – context !! Summary & Conclusions 23
Slide 24: Challenger has a Bright Future
Challenger has a Bright Future For personal use only 1 "! Unique small cap access to a proven gas to surface shale play in a global Top Ten basin Company making base asset "! EIA inferred GIP 32tcf, >7 tcf risked recoverable with in Cranemere upside for Fort Brown shales "! Balance of play fairway u
Slide 25: Contact
Contact For personal use only Robert Willes – MD Challenger Energy Limited Mobile: +61 410 479 032 Email: robert.willes@challengerenergy.com.au Web: www.challengerenergy.com.au 25
Challenger Energy — Investor Presentation (July 2013) on 6ix