Red Sky Energy Limited · ASX:ROG
Red Sky Energy — Investor Presentation (August 2009)
16 slides from Red Sky Energy's investor presentation, Aug 21, 2009
Slide 1: Red Sky Energy – 20:20 Investor Series
For personal use only Red Sky Energy – 20:20 Investor Series Rohan Gillespie, Managing Director (designate) 21 August 2009
Slide 2: Opportunity Summary
Opportunity Summary For personal use only • Red Sky Energy Limited (ROG.AX) is acquiring Cydonia Resources Pty Limited (CRL) which has secured farm-ins to two major exploration leases in the Surat Basin • The acquisition is subject to Red Sky Energy shareholder approval, scheduled for 11 September •
Slide 3: CRL deal terms and Red Sky capital structure
CRL deal terms and Red Sky capital structure For personal use only Shares (m) Listed Options (m) Unlisted Options (m) Pre acquisition 01 / 08 / 09 334 300 12 Capital Raise @ 2 cents 200 Acquisition and Advisory 150 200 TOTAL POST VEND 684 300 212 Issue Upon Milestone 150 TOTAL ISSUED POST 834 300 21
Slide 4: Proximity to major gas infrastructure
Proximity to major gas infrastructure For personal use only
Slide 5: Proximity to projects and leases of major players
Proximity to projects and leases of major players For personal use only
Slide 6: Prospectivity – Cretaceous Coals
Prospectivity – Cretaceous Coals For personal use only • Gassy cretaceous coals exist extensively throughout the world • The most prolific CSG basin, the San Juan Basin in New Mexico/Colorado, is cretaceous • Also New Zealand has significant deposits of gassy cretaceous coals • In Victoria the Strze
Slide 7: Cretaceous coals in the Surat Basin
Cretaceous coals in the Surat Basin For personal use only • There is strong evidence of prospectivity for the Cretaceous coal measures in the Surat Basin • The cretaceous coals lie within the Bungil Formation, which shows laterally extensive on the regional seismic • The Bungil Formation is estimate
Slide 8: Cretaceous coals in the Surat Basin
Cretaceous coals in the Surat Basin For personal use only Bungil Formation Bungil Formation hosting cretaceous coals Taroom Trough Walloon coals Permian coals
Slide 9: Prospectivity – ATP 840
Prospectivity – ATP 840 For personal use only Cretaceous Bungil Formation shows clearly on seismic running east/west and north/south across ATP 840
Slide 10: Prospectivity – ATP 904
Prospectivity – ATP 904 For personal use only Giddi Giddi #1 well intersected gassy coals at 480 metres depth ATP 904
Slide 11: Potential resource size
Potential resource size For personal use only ATP 840 Potential resource size: 675km2 x 20m average net coal thickness x 5m3/t gas content x 1.6t/m3 density = 3.8 tcf. Assuming a recovery factor of 60%, the potential recoverable resource is 2.3 tcf. ATP 904 Potential resource size: 1050km2 x 15m ave
Slide 12: Red Sky Energy team
Red Sky Energy team For personal use only • Rohan Gillespie: Managing Director of CRL. As Vice President and Chief Operating Office, Rohan created and led BHP Billiton’s CSG business until sold to AGL. Since forming his own company in 2006, Rohan has advised several major corporations on CSG. Rohan
Slide 13: Value realisation option and timing
Value realisation option and timing For personal use only • The LNG industry in Western Australia has created the environment for huge foreign investment. This is driven by: Size of prospective resources Stable political system Supportive Government Reasonable fiscal terms Closeness to Asian custome
Slide 14: Valuation comparatives
Valuation comparatives For personal use only • Consider pre discovery stage (i.e. acreage + management) • Companies assessed: Icon Energy, Westside Corp, Blue Energy, Pure Energy, Bow Energy, Central Petroleum • Timing 2007 • Range of market caps pre discovery; $14m to $44m with average $27m • Red S
Slide 15: Strategy for Red Sky Energy
Strategy for Red Sky Energy For personal use only • Drill first well to secure initial interest in ATP 840 • Diversify acreage position • Focus spend on highest impact areas • Move to initial reserves certification as soon as possible • Position Company for interest by majors
Slide 16: Disclaimer
Disclaimer For personal use only 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,