Metgasco Ltd · ASX:MEL
Metgasco — Investor Presentation (January 2008)
21 slides from Metgasco's investor presentation, Jan 15, 2008
Slide 1: Investor Presentation January 2008
For personal use only Investor Presentation January 2008
Slide 2: Company Overview
Company Overview For personal use only Exploration, appraisal and commercialisation of coal seam gas (CSG) and conventional oil and gas. Focus on NSW Clarence Moreton basin in NSW – large acreage position with prospective resource estimate in excess of 5 TCF. Conversion of “prospective resource” to
Slide 3: Eastern Australian gas markets are rapidly evolving
Eastern Australian gas markets are rapidly evolving For personal use only Demand for “clean gas” is increasing. Traditional sources of gas supply are in decline New sources of gas are rapidly emerging Gas markets are becoming more connected National Gas Code – a new regulatory regime Emerging traded
Slide 4: The importance of gas in the energy mix
The importance of gas in the energy mix For personal use only Australia has now signed the Kyoto Protocol. CO2 emissions must be reduced. Gas is the transitional fuel to a clean fuel economy (ALP policy statement). Unlikely there will be any new coal fired power stations for the next 20 years on the
Slide 5: Metgasco is focussed on the Clarence Moreton basin
Metgasco is focussed 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 Large land position of around 6,000km2 Key assets (operator): PEL 16 (
Slide 6: Financial Snapshot
Financial Snapshot For personal use only Share Price $0.91 Market Cap ($million) $125 (fully diluted) Shares on issue (million) 121 Options on issue (million) 16 Cash on hand ($million) $12 As at 14.1.2008 Last 12 months Page 6 6
Slide 7: 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. Establish 2P reserves in PEL16 of 640 PJ by early 2008 July 2006 – 22 PJ July 2007 – 130 PJ Sept 2007 – 194 PJ Additional data package provided to MHA –
Slide 8: 2007 Achievements - Exploration
2007 Achievements - Exploration For personal use only PEL 426 Joint Venture with Molopo Southern Clarence Moreton Basin 6000 CSM & conventional exploration 6000 215 l/km reprocessing, data gathering 5000 Pine Brush, Clifden leads 4000 3000 PEL 16 CE 6 – major gas kick 2000 Conventional structure ana
Slide 9: 2007 Achievements - Reserves & Production
2007 Achievements - Reserves & Production For personal use only Increased 2P reserve base to 194 PJ Completed 12,500m core drilling and testing 250 program – no LTIs or EIs 194 Pilot Production Program commenced 200 Ensign Alliance – use of ADR 100 rig for 150 improved capability Vectra Alliance – s
Slide 10: 2007 – Gas Commercialisation Achievements
2007 – Gas Commercialisation Achievements For personal use only BP – MOU for sale of 15 PJ/pa 397.5 400 Extension of pipeline to Port of Brisbane Richmond Valley Power Station progress – 2.5 PJ/pa 300 Environmental Assessment completed Network Connection Application underway 200 CS Energy Developmen
Slide 11: BP – proposed gas sale
BP – proposed gas sale For personal use only BP operates Bulwer Island Refinery 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 options. BP and Metg
Slide 12: 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. 172 PJ certified to date – further reserve upgrades expected. Goal to suppl
Slide 13: Casino to Ipswich Pipeline
Casino to Ipswich Pipeline For personal use only Brisbane is the only capital city on the east coast of Australia supplied with gas 2P by a single gas pipeline. Reserves The Casino to Ipswich 22 PJ pipeline enhances security of gas supply to Brisbane by 3P Reserves supplying gas from a different bas
Slide 14: 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 EA completed Drilling program underway to establish 2P reserve target of 100 PJ Page 14 14
Slide 15: Pilot Drilling Progress
Pilot Drilling Progress For personal use only Specialised rig mobilised from Canada for pilot drilling program. Rig performance has been excellent. 8 Surface to Inseam (SIS) wells being drilled. 4 wells completed to date, dewatering underway 3 wells currently on pump – very encouraging water and gas
Slide 16: Conventional oil & gas exploration is beginning..
Conventional oil & gas exploration is beginning.. For personal use only The basin has had minimal conventional exploration in the past Metgasco has completed a two year program to re-process and re- interpret available 2D seismic data in PEL 16. Substantial seismic program underway: • Reprocessing a
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: Comparative Data
Comparative Data For personal use only Market No of Share Hybrid Contributed Net 1P Net 2P Net 3P Cap Shares Company Name ASX Code Price Equity Equity Reserves Reserves Reserves Date Listed ($Million) (Million) 14.01.07 (Million) 14.01.07 (PJ) (PJ) (PJ) 14.01.07 14.01.07 Queensland Gas QGC 3.13 2,31
Slide 19: 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 4.00 3.59 MEL is valued at $0.74 per GJ 3.34 3.50 based on current 2P reserve 3.00 position. 2.50 Zero value currently attributed to 1.94 substantial 3P reserve position. 1.76 2.00 1.34 Zero value currently attrib
Slide 20: In Summary…
In Summary… For personal use only Pilot drilling program is progressing well Metgasco is continuing to develop and commercialise a large gas reserve position. Metgasco has established a substantial portfolio of gas commercialisation projects. Gas sales of approx 35 PJ/pa in development (over 30% of
Slide 21: 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