Metgasco Ltd · ASX:MEL
Metgasco — Coal Seam Methane World Australia 2010
22 slides from Metgasco's conference presentation, Mar 17, 2010
Slide 1: Coal Seam Methane World Australia 2010
For personal use only Coal Seam Methane World Australia 2010 Opportunities for expansion and outlook Glenda McLoughlin – Director and Chief Financial Officer 17 March 2010
Slide 2: Corporate overview
Corporate overview For personal use only Onshore oil and gas exploration close to markets on east coast of Australia Approximately 250 million shares on issue and 6 million options Market cap A$150 million @$0.60 (8 Mar 2009) Cash A$29 million (31 Dec 2009) No debt Unconventional gas resource – larg
Slide 3: Projects are close to markets & infrastructure
Projects are close to markets & infrastructure For personal use only Large acreage position in the Clarence Moreton Basin in northern NSW – 1,420,000 acres, mostly continuous Clarence Moreton is the southern extension of the Surat basin in Queensland – CSG focussed on Walloon Coal Measures 100% owne
Slide 4: Opening up the vast energy resources of the Clarence Moreton basin
Opening up the vast energy resources of the Clarence Moreton basin For personal use only Unconventional Coal seam, shale, tight gas Conventional Walloon Coal Measures Conventional units are focus of all Metgasco CSG lateral equivalents of work to date where all gas primary producing reserves are boo
Slide 5: Multi TCF scale CSG play with established reserves
Multi TCF scale CSG play with established reserves For personal use only 2500 1P 2P 3P 2,239 2000 1,538 1P 2P 3P 1500 1,389 PJ 2.7 397 2,239 1,127 Mmboe 0.46 68 385 1000 500 397 247 298 22 2.7 2.7 0 2007 2008 2009 2010 Reserves have been certified by Mr Tim Hower of MHA Petroleum Consultants (Denver
Slide 6: Coal seam gas - successful trial of horizontal drilling
Coal seam gas - successful trial of horizontal drilling For personal use only Avg Gas rate = 172Mscf/d 1000 Avg Water rate = 58 bbls/d Cum gas prodn = 89476 Mscf CP-11 Production Profile Cum water prodn = 46218 bbls 100 10 1 0 100 200 300 400 500 600 700 800 Gas production Mscf/d Water production BB
Slide 7: Coal seam gas - next generation pilot wells
Coal seam gas - next generation pilot wells For personal use only Multilaterals allowing more exposure to the coal and increased production rates Implement identified drilling and completion techniques Located in identified high priority locations Corella P18 is first next generation pilot well 7
Slide 8: Recent conventional gas discovery – Kingfisher E1
Recent conventional gas discovery – Kingfisher E1 Kingfisher E1 reached Total Depth (TD) of 2,090 For personal use only metres on 27 November 2009 Multiple stacked gas bearing sands identified Wireline logs identified up to 138 metres of possible gas bearing sands with 30 metres of net pay identifie
Slide 9: Expanding exploration in the Clarence Moreton Basin
For personal use only Expanding exploration in the Clarence Moreton Basin 9
Slide 10: Regionally extensive coal seam gas resource
Regionally extensive coal seam gas resource Metgasco has demonstrated that the For personal use only basin is gas charged with a coal seam gas resource covering more than 100 km of strike Metgasco is utilising new technologies from the US - CBM, Shale and Tight Gas - to bring a whole new basin into
Slide 11: CSG – new areas to be evaluated (Wyan area)
CSG – new areas to be evaluated (Wyan area) For personal use only WYAN E-1: Full Section Flow Test Activity 1000 Located in PEL 13, south west of Casino Wyan a low cost vertical 18/6 22/6 24/6 F lo w R a te s (M s c f/ d ) well 100 Stabilised flow rate on test of 170Mcf/d Dry – no water NO WATER ! P
Slide 12: CSG exploration in PEL to commence this year
CSG exploration in PEL 13 to commence this year For personal use only Activity Eden Creek Trend to be evaluated Step out from current CSG evaluation program in PEL 16 Broad anticline covering 193km² Sitting on previously known conventional structure (Dyraaba lead) Major east richmond fault Walloon o
Slide 13: Development of the Australian CSG Sector – Growth in Market Cap from date of IPO
Development of the Australian CSG Sector – Growth in Market Cap from date of IPO For personal use only 6000 QGC SHG PES SGL AOE ESG MEL QGC 5000 4000 Market Cap ($ million) AOE 3000 2000 SHG PES 1000 ESG MEL SGL 0 2 10 18 26 34 42 50 58 66 74 82 90 98 106 114 Months since IPO Metgasco on track in “u
Slide 14: Emerging portfolio of conventional potential
Emerging portfolio of conventional potential For personal use only PEL 16 - Leads and Prospects (OGIP ) Previously unknown mid-basin high has been identified by PMean P10 Metgasco (Bcf) (Bcf) Large number of leads and Mackellar 63 688 prospects identified with upside Mackellar North 146 1,793 drilli
Slide 15: The increasing need for gas in domestic energy markets
For personal use only The increasing need for gas in domestic energy markets 15
Slide 16: Demand for gas
Demand for gas For personal use only NSW forecast gas demand 450 Domestic demand for gas will 400 350 be driven by: 300 250 Electricity demand 200 150 Timing and extent of CPRS 100 Renewable energy schemes 50 0 and incentives 2009 2014 2019 2024 2029 Gas prices – which will be significantly impacted
Slide 17: Increasing demand for gas will place pressure on pipelines & infrastructure
Increasing demand for gas will place pressure on pipelines & infrastructure to supply to demand zones Commercialisation strategy For personal use only Primary demand for gas in NSW is electricity generation. Metgasco PELs are located on the high voltage electricity grid – low cost access to the elec
Slide 18: Meeting local power needs - Richmond Valley Power Station under development
Meeting local power needs - Richmond Valley Power Station under development For personal use only 30MW gas fired power station located at Casino requiring 2.5PJ of gas per annum Field development studies complete Environmental assessment lodged with NSW Dept of Planning on 11 August 2008 – waiting f
Slide 19: The "EXport Factor" - structural change in the Australian gas sector
The “EXport Factor” - once in a generation structural change in the Australian gas sector - $24 billion in acquisitions in past 2 years For personal use only Growth in Asian LNG demand has led to a land grab for Australian unconventional assets Feb 2008 – BG Farms into QGC ($815 million) May 2008 –
Slide 20: 2010 Activities
2010 Activities Exploration experience combined with seismic data and coal For personal use only Activitymapping now sufficientPurpose to identify csg sweetspots. Identification of Seismic to assist in fairway identification and mapping high potential 2-4 pilot wells and ongoing production testing o
Slide 21: Board and Management
Board and Management Board Management & Technical Team For personal use only DR PETER POWER Chairman MICK O’BRIEN Chief Operating Officer Geologist with 50 years experience in hydrocarbon Over 30 years experience in senior engineering exploration worldwide in senior roles. Previously roles previousl
Slide 22: 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