Metgasco Ltd · ASX:MEL
Metgasco — Investor Presentation (March 2009)
26 slides from Metgasco's investor presentation, March 2009
Slide 1: Investor update and capital raising
Investor update and capital raising March 2009
Slide 2: Disclaimer
Disclaimer 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 contained in this present
Slide 3: Today's agenda
Today’s agenda 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 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 its resources Proxim
Slide 5: Building a significant presence in CSG & conventional gas
Overview Building a significant presence in CSG & conventional gas 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 2004 Metgasco has sinc
Slide 6: CSG is a growing energy resource in Australia
Industry dynamics CSG is a growing energy resource in Australia 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 on the east coast are
Slide 7: Significant future growth in gas demand
Industry dynamics Significant future growth in gas demand 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 privatisation of NSW electri
Slide 8: CSG is a strategically valuable asset
Industry dynamics CSG is a strategically valuable asset A number of recent transactions have occurred that highlight the value of Australian CSG assets $4.91 $4.02 $4.08 $2.72 $2.37 $2.53 $2.11 EV/2P ($/GJ) $1.67 $1.71 BG/QGC (Feb-08) PETRONAS/STO Shell/AOE (Jun- QGC/SHG (Aug- Conoco/ORG BG/QGC (O
Slide 9: Tenements and location
Coal seam gas Tenements and location 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 markets and infrastructur
Slide 10: Significant gas resources located in Clarence Moreton
Coal seam gas Significant gas resources located in Clarence Moreton A substantial reserve position has been PEL 16 - Growth in gross reserve base (PJ) established Significant opportunity for further reserve 1,538 1,538 growth : 2P reserves booked in 4 out of 11 1,158 1,158 blocks in PEL 16 r
Slide 11: Pilot production testing
Coal seam gas Pilot production testing 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 to reservoir model Co
Slide 12: Proven gas reserves established
Coal seam gas Proven gas reserves established 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 identified and proved a mech
Slide 13: Conventional gas: Substantial prospects
Conventional gas Substantial prospects 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 limited by capability
Slide 14: Significant growth potential with Kingfisher Field
Conventional gas Significant growth potential with Kingfisher Field 138 80 30 12 13 500,000 MTR 505,000 MTR 510,000 MTR 515,000 MTR 148 0 1 43 0 80 1630 12 15 Kingfisher field is part of larger 80 1 23 0 geological structure “Mackellar High 0 0 13 3 123 Trend” 0 6,815,000 MTR 6,815,000 MTR 1 53 13
Slide 15: Commercialisation strategy: Demand Base
Commercialisation strategy 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 take CS Energy – Farm
Slide 16: Commercialisation strategy: Supply Base
Commercialisation strategy 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 allow for supply of g
Slide 17: Further drilling and infrastructure development
Next 12 months Further drilling and infrastructure development 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 (diversify supply) dev
Slide 18: Capital raising
Capital raising 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 evaluation and 2.0 2.0 2.5 deve
Slide 19: Rights issue indicative timetable
Rights issue indicative timetable 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 Acceptance Form to sharehol
Slide 20: Investment risk
Investment risk 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 Offer, investors should c
Slide 21: Market risk
Market risk 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 particular interests or pr
Slide 22: Company risk
Company risk 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 exploration and appraisal
Slide 23: Company risk (continued)
Company risk (continued) 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 production. Acquisition of p
Slide 24: Board & Management
Appendix Board & Management 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 experience with ExxonMobi
Slide 25: Financial Data
Appendix Financial Data 1.6 Listed Australian 1.4 Securities Exchange Dec 2004 1.2 (ASX) 1 ASX Code MEL 0.8 Current Share Price $0.55 0.6 Market Cap $73 million 0.4 0.2 5000000 Shares on issue 133.3 million 4000000 0 3000000 2000000 3/07/2006 3/08/2006 3/09/2006 3/10/2006 3/11/2006 3/12/2006 3/01/20
Slide 26: Glossary of key terms
Appendix Glossary of key terms 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 basin containing early