Star Energy Group Plc · LSE:STAR
Star Energy — Dart Energy — CLSA Corporate Access Forum, Singapore, May 2011
33 slides from Star Energy's conference presentation, May 2011
Slide 1: The First Global Coal Bed Methane Company
The First Global Coal Bed Methane Company Company Presentation CLSA Corporate Access Forum, Singapore, May 2011 ASX: DTE:AX www.dartenergy.com.au
Slide 2: Dart Energy overview
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Slide 3: Dart Portfolio Summary as at 31/4/11
Dart Portfolio Summary as at 31/4/11 Dart Energy Active CBM Licences (1) 36 summary Countries 2 8 Coal Basins 18 Gross CBM Acreage (km ) 38,091 Gross CBM Prospective Resource 32.9 2 Net CBM Acreage (km ) 28,785 Net CBM Prospective Resouce 19.6 Gross CBM OGIP (Tcf) 77.2 Gross Shale OGIP (Tcf) 1.2 Net
Slide 4: Dart is in process of closing a $100m entitlements offer
Funding Dart is in process of closing a $100m entitlements offer Sources Uses 1 Current sources A$m Business expenditure A$m Cash on hand 1 47.9 Australia 20.3 Cash-backed guarantees 2 9.0 China 30.4 Capital raising proceeds 3 100.0 South Asia 32.1 TOTAL SOURCES 4 156.9 Europe 21.6 Sub-Total 104.4 B
Slide 5: Australia 2011 Capital budget – 12 to 14 wells
Australia 2011 Capital budget – 12 to 14 wells programme summary PEL 459 Coring PEL 464 PEL 463 Possible PEL 461 Pilots PEL 460 PEL 458 Pilot PEL 456 Possible 2011 2012 Monetisation Critical path / issues PEL 458, 12–18 months Resources and reserves re-evaluation • Gas to wire – Daandine-like initia
Slide 6: China 2011 Capital budget – 16 to 22 wells
China 2011 Capital budget – 16 to 22 wells programme summary Top hole Dajing Core well Commute to Pilot Pilot Liulin Vertical Production Wells Development GSA GSA? 2011 2012 Monetisation Critical path / issues Liulin – GSA commences July 2011, take or pay Dajing: permeability and gas content commenc
Slide 7: South Asia 2011 Capital budget – 21 to 29 wells
South Asia 2011 Capital budget – 21 to 29 wells programme summary Sangatta West Pilot Coring GSA? Development Tanjung Enim Coring Muralim G&G Tanjung Adaro G&G HoA’s Awards New license Rd. Exploration Hanoi Trough Engineering TR Pilot MR RM Satpura Coring Assam Coring Farm-ins Coring Electrosteel Co
Slide 8: Europe 2011 Capital budget – 3 to 5 wells
Europe 2011 Capital budget – 3 to 5 wells programme summary Pilot Airth - PEDL 133 W/O GSA? Development Airth Shale Cheshire G&G Coring S. Wales G&G E. Midlands G&G UK 14th Award Round USCB Pilot New Europe Award Coring 2011 2012 Monetisation Critical path / issues PEDL 133, 12–18 months New license
Slide 9: Expenditure balanced across portfolio by activity and region
2011 – 2012 Expenditure balanced across portfolio by activity and region work program Region Key items Exploration Appraisal Development Total & Access & Pilots Australia • Portfolio exploration drill-out 12 wells • PEL 458 pilot • Commercialisation options 8.7 11.6 - 20.3 • Additional pilots – PELs
Slide 10: Work programme to deliver portfolio targets by end of 2011 and beyond
Portfolio Work programme to deliver portfolio targets by end of 2011 and beyond… targets Secure 4 new licenses • Indonesia – Muralim secured; Tanjung Adaro by end 2011; 8 others under evaluation • India – Electrosteel JV secured; potential farm-ins (up to 4 by end 2011); other CMM options • Australi
Slide 11: Investment highlights
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Slide 12: Investment highlights
Investment Investment highlights highlights Resource base of scale • Diversified global portfolio – sizeable acreage, GIP, prospective resource • Established operations, retained IP and delivery capability leading to swift resource maturation Markets offering numerous monetisation options and margin
Slide 13: Quality CBM assets of scale with established global footprint
Investment Quality CBM assets of scale with established global footprint highlights Resource Dart Australia Dart South Asia • 7 blocks • 8 active blocks • 23,598 km2 • 6,487 km2 • 32.5 Tcf GIP (net) • 4.2 Tcf GIP (net) • 12.3 Tcf Prospective • 2.1 Tcf Prospective CBM resource (net) CBM resource (net
Slide 14: Exposure to attractive growth markets with substantial margins
Investment Exposure to attractive growth markets with substantial margins…. highlights Markets 12 Ups i de to 11 LNG export Upside pri cing 10 to gas import $8.00 - $12.00 Value chain parity pricing 9 pricing upside Value chain Supply constraint (eg CNG) pricing upside Import 8 substitution NSW 7 pr
Slide 15: Portfolio approach to managing high-quality CBM assets
Investment Portfolio approach to managing high-quality CBM assets highlights Portfolio Risk mitigation – Dart is not reliant on any single asset, country, basin, partner or regime to meet our targets and deliver value to shareholders Capital allocation – Dart is able to reallocate funds across the p
Slide 16: Highly experienced board and management with strong track record
Investment Highly experienced board and management with strong track record highlights Management Board and management team with proven track record of project delivery and shareholder value creation Unrivalled depth of CBM and operations experience across the gas value-chain Well established operat
Slide 17: A unique investment opportunity
Conclusion A unique investment opportunity Dart Energy: a company differentiated by resource, markets, management & portfolio Board and management credibility and track record established Sizeable resource base poised for rapid maturation Mitigation of risk via portfolio approach Uniquely diversifie
Slide 18: Questions
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Slide 19: Additional Dart Energy portfolio & company information
Additional Dart Energy portfolio & company information 19
Slide 20: Detailed portfolio summary
DART ASIA Location Dart Interest Operator Area Gross Resources (100%) 2 Gross OGIP (km ) Prospective 3C 2C Detailed Sangatta West PSC Tanjung Enim PSC East Kalimantan, Indonesia South Sumatra, Indonesia 24% 45% Dart & Ephindo Dart 1,301 308 0.6 0.5 0.3 0.3 portfolio Muralim PSC Central Sumatra, Indo
Slide 21: Shareholder Information, Singapore Management, In-country Leadership
Company information Singapore Management Shareholder Information Shares on issue: 730m Options on issue: 53m Nathan Rayner Eytan Uliel Martin Cooper Peter Roles Toby Hewitt Market Cap (20/42011) : AUD $600m COO CCO CFO CTO General Counsel Cash: AUD $150m Debt: Nil In-country Leadership ASX Code: DTE
Slide 22: Grow big, grow fast – Australia focus projects
Focus projects “Grow big, grow fast” ” PEL 456 & PEL PEL456 PEL458 Others 458, NSW Technical • Large permit area of 5953km2 • Permit area of 2000km2 • PELs 459, 460, 461, 463, 464 Australia Highlights • Bituminous coals with • Bituminous coals with • Gunnedah, Sydney recorded coal thickness of recor
Slide 23: Scale potential – Dajing PSC
Focus projects “Scale potential” ” Dajing PSC, XAR China Technical • Block Size 3,969km2 Highlights • Sub-bituminous coal, thick homogeneous seams 30m - 70m • Extensive coal data; limited CSG data available Resource & • OGIP (gross): 6.6 Tcf Reserves • Prospective Resource (gross): 3.5 Tcf Commercia
Slide 24: First development – Liulin PSC
Focus projects “First development” ” Liulin PSC, Shanxi China Technical • Area 183 km2 Highlights • Licence has special pilot project status • Multiple target seam areas Resource & • OGIP (gross): 0.8 Tcf; 2C (gross): 0.2 Tcf Reserves • 3P (gross): 85 Bcf Commercial • CUCBM 50% and Fortune Liulin Ga
Slide 25: Early monetisation; margin capture
Focus projects “Early monetisation; margin capture” ” Sangatta West, Sangatta West Electrosteel PEDL 133 East Kalimantan, Technical • Area 1301 km2 • 8.8 km2 • 329km2 Indonesia Highlights • Multiple target coal seams; sub- • 18 coal seams, cumulative • Includes CBM and shale potential bituminous coa
Slide 26: Expertise across the project maturation life cycle
Portfolio Expertise across the project maturation life cycle Benefits Core competency Exploration Appraisal 2-3 yrs 1 - 2 yrs 20+ yrs 2-3 yrs Full Field Initial Development Development Dart focuses on key competency areas to support the different stages of the project maturation life cycle: Ability
Slide 27: Cost, efficiency, technology
Portfolio Cost, efficiency, technology benefits Application CBM is a manufacturing process To succeed one needs a culture of low cost operation and an efficiency focus Low cost exploration drives pace of resource development Innovation in development Typical Dart wellhead Typical Dart CBM rig option
Slide 28: China and Scotland knowledge transfer
Portfolio China Scotland benefits Liulin project, Ordos Basin, China Knowledge PEDL 133 is located near Stirling, Multiple thin low permeability coal Scotland transfer seams Multiple thin, low permeability coal Existing wells – Inseam cluster seams development • 2 x inseam well, each with up to Plan
Slide 29: Development funnel
Portfolio benefits Development funnel Resource Delivered or likely to be delivered allocation and 2 Years Possibility of delivery risk mitigation Indonesia HoA’s Maturing Poland: New Licences 1 Year Now Australia Europe licences Muralim UK: 14th Rd NSW 461 Hanoi Milejow USCB Dajing Sangatta Adaro I
Slide 30: Vision
Corporate vision & strategy Vision Dart Energy’s vision is to become the first global coal seam gas (CSG) company with exposure to significant coal/gas resources adjacent to markets that are attractive on a global scale in terms of demand growth and pricing Secure low cost entry to technically high-
Slide 31: Philosophy
Philosophy Control your destiny (or someone else might) Set strategy, avoid distractions. Manage alignment, distribute risks Partners, authorities, coal-miners, contractors, suppliers, opportunists Face reality as it is, not how you wish it was CBM is not a ‘prestige’ industry, it is an immature, ma
Slide 32: Important Disclaimer
Important Disclaimer Notices This presentation (Presentation) has been prepared by Dart Energy Limited (ABN 21 122 588 505) (Dart). This Presentation is not a prospectus or a product disclosure statement under the Corporations Act and has not been, nor is it required to be, lodged with the Australia
Slide 33: Contact information
Contact Dart Energy Limited information Singapore (Head Office) 152 Beach Road, #19-01/04 The Gateway East Singapore 189721 Tel: +65 6508 9840 Fax: +65 6294 6904 Australia (Registered Office) Level 11, Waterfront Place, 1 Eagle Street GPO Box 3120 Brisbane QLD 4001 Tel: +61 7 3149 2100 Fax: +61 7 31
Dart Energy — CLSA Corporate Access Forum, Singapore, May 2011 on 6ix