Metgasco Ltd · ASX:MEL
Metgasco — ASX Investor Series (March 2008)
19 slides from Metgasco's conference presentation, Mar 19, 2008
Slide 1: ASX Investor Series: Coal Seam Methane
For personal use only ASX Investor Series Coal Seam Methane Glenda McLoughlin – Director and Chief Financial Officer March 2008
Slide 2: Metgasco - an emerging energy company
Metgasco - an emerging energy company For personal use only Focussed on the Clarence Moreton basin in northern New South Wales. Developing coal seam gas reserves and exploring for conventional oil and gas. Established largest certified 2P gas reserves in NSW at 247 PJ (2P). PEL 16 Exciting commercia
Slide 3: Corporate Profile
Corporate Profile For personal use only Share Price $0.77 Market Cap $94 million Shares on issue 122 million Options on issue 18 million Cash on Hand $12.6 million 31.12.2007 Last 12 months Page 3 3
Slide 4: Comparison with our Peers
Comparison with our Peers For personal use only Share Market No of Hybrid Contributed Net 1P Net 2P Net 3P Price Cap Shares Company Name ASX Code Equity Equity Reserves Reserves Reserves Date Listed ($Million) (Million) (Million) 30.06.07 (PJ) (PJ) (PJ) 10.03.08 10.03.08 10.03.08 Queensland Gas QGC
Slide 5: Lowest valuation in the CSG sector on 2P reserves
Lowest valuation in the CSG sector on 2P reserves For personal use only EV/2P Reserves MEL is valued at $0.44 per GJ 3.59 2.50 based on current 2P reserve 2.10 position. 1.96 2.00 1.68 Recent corporate activity has valued CSG 2P reserves at 1.50 $1.35 - $1.58 per GJ. 1.01 1.00 0.77 Zero value curren
Slide 6: Company Strategy
Company Strategy For personal use only Develop substantial coal seam gas reserves to meet growing demand for gas in Eastern Australian gas markets. Goal to achieve 640 PJ in 2P reserves in PEL16 July 2008. Focus on understanding the CM basin at a very detailed level and leverage basin specific knowl
Slide 7: 1,023% increase in gas reserves since June 2007
1,023% increase in gas reserves since 30 June 2007 For personal use only Gas Reserve Growth (2P) 700 Independently certified by 640 MHA Associates (Denver) 600 Further reserve upgrades 500 anticipated over coming 400 months. PJ 300 247 Reserves established over 200 173 less than 5% of tenement 112 1
Slide 8: Focus on the Clarence Moreton basin
Focus on the Clarence Moreton basin For personal use only One of the most unexplored petroleum basins on the east coast of Australia Triassic - Jurassic – Cretaceous basin - CSG and conventional oil & gas potential Tenements cover 6,000km2 (approx 1.5 million square acres) Key assets (operator): PEL
Slide 9: Development activities
Development activities For personal use only Completed 12,500 metres of core drilling in last 12 months (no LTI’s or EI’s) Completed pilot drilling last month with 6 surface to inseam (“SIS”) wells on early production test – encouraging early water and gas flows. Specialised equipment and skills bro
Slide 10: Conventional oil & gas exploration is beginning…
Conventional oil & gas exploration is beginning… For personal use only The CM is a prospective basin with a close corollary to the Surat basin. Surat Basin Lateral equivalent in the Potential Clarence Moreton Basin Injune Creek Group Walloon Coal Measures CSG Play Hutton Sandstone Koukandowie Format
Slide 11: The opportunity
The opportunity For personal use only “Once in a generation” structural change in the Australian gas market. Demand: Domestic - imminent introduction of carbon ETS has caused a sharp increase in demand for “clean gas”. International - four LNG projects now in development in Queensland based on CSG s
Slide 12: Gas commercialisation plans
Gas commercialisation plans For personal use only Alliances in place with strong counterparties: - BP – MOU for gas sale of 15 PJ per year - CS Energy – MOU for gas sale of 18 PJ per year Development of key transportation infrastructure to deliver gas to markets: - Casino to Ipswich Pipeline - Pipel
Slide 13: CS Energy – a foundation customer
CS Energy – a foundation customer For personal use only CS Energy have provided $11 Million in 1 funding to earn a 15% interest in the Stratheden farm-in area (3 blocks in PEL 16) 4 5 Goal to establish 540 PJ in 2P reserves. Goal to supply 18 PJ/year for 20 years CS Energy then to invest $94.5 M to
Slide 14: BP – proposed gas sale
BP – proposed gas sale For personal use only BP operates Bulwer Island Refinery at Port of Brisbane Consumes 30% of Brisbane’s gas demand Produces 40% of Queensland’s liquid fuels. MOU with BP for the sale of 15 PJ/pa. BP have undertaken extensive evaluation of Refinery expansion and infrastructure
Slide 15: Delivering gas to SE-Queensland
Delivering gas to SE-Queensland For personal use only Casino to Ipswich gas pipeline - 145 km high pressure gas pipeline. Brisbane is the only capital 2P coast of city on the east Reserves Australia supplied with gas 22 PJ by a single gas pipeline. The CIP enhances security 3P of gas supply to Brisb
Slide 16: Richmond Valley Power Station
Richmond Valley Power Station For personal use only 30 MW gas fired power station at Casino Requires 2.5 PJ/pa over 15 years FEED completed Environmental Assessment completed Drilling program underway to establish 2P reserve target of 100 PJ Page 16 16
Slide 17: An experienced board & management team
An experienced board & management team For personal use only Dr Peter Power – Chairman 25 Permanent Staff and 40 Contractors Former Managing Director of Ampolex. Past Chairman of APPEA. Key alliance with US based Vectra CBM to provide drilling and completion advisory services David Johnson – Managin
Slide 18: In Summary…
In Summary… For personal use only Gas is becoming increasingly important in the Australian energy mix. Metgasco is continuing to develop and commercialise a large gas reserve position. Metgasco has a key competitive advantage because it is close to markets and infrastructure. Metgasco has establishe
Slide 19: Disclaimer
Disclaimer For personal use only This presentation may contain forward looking statements that are subject to risk factors associated with the oil and gas business. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables an