Challenger Gold Limited · ASX:CEL
Challenger Gold — Challenger Energy — Investor Presentation (March 2014)
26 slides from Challenger Gold's investor presentation, Mar 3, 2014
Slide 1: Challenger Energy Ltd Investor Presentation
Challenger Energy Ltd Investor Presentation For personal use only March 2014 1
Slide 2: Disclaimer
Disclaimer For personal use only This announcement contains “forward-looking statements”. Such forward-looking statements include, without limitation: estimates of future earnings, the sensitivity of earnings to oil & gas prices and foreign exchange rate movements; estimates of future oil & gas prod
Slide 3: Agenda
Agenda For personal use only Company Overview Cranemere Project South Africa – context Summary & Conclusions 3
Slide 4: Company Overview
Company Overview For personal use only Presently focused on world class shale play in the Karoo Basin, South Africa Discovered gas Potentially transformational to the SA economy, highly motivated government A company making opportunity - Challenger the only ASX small cap with exposure to SA
Slide 5: Financial Overview
Financial Overview For personal use only Share Price Performance (ASX: CEL) Company information - ASX 27/ 02/ 2014 12:58 pm Capital Structure Fully paid ordinary shares 329,482,541 Unlisted Options and Rights1 43,500,000 Share Price2 A$0.10 Market capitalisation2 A$32.9m Cash3 A$0.44m Shareholders 1
Slide 6: Board & Management Team
Board & Management Team For personal use only Chairman Managing Director Non-Exec Director Technical Adviser Country Manager Michael Fry Robert Willes Bill Bloking Paul Bilston Peter Price Qualifications B.Com (UWA), F.Fin BA (Hons), GAICD BSc Mech Eng (Summa B.Eng, PhD. MSc, Royal School of cum Lau
Slide 7: World Scale Opportunity
World Scale Opportunity For personal use only Proven Gas to Surface Permit of ~ 800,000 acres centred on only well within the basin to flow significant gas to surface (Cranemere) CEL first mover - Shell and Falcon/Chevron pursuing adjacent acreage Basin Resource Potential (U.S. Energy Informatio
Slide 8: Investment Case
Investment Case 20000 For personal use only $18,489 / acre • Korea National Oil / Anadarko US Mar ’11 18000 • Marathon / Hilcorp Resources US Jun ‘11 • Mitsui / SM Energy (US) Jun ‘12 16000 • Osaka Gas / Cabot Oil (US) Jun ‘12 Recent transactions demonstrate increasing 14000 $4,009 / acre market val
Slide 9: Building the Company
Building the Company For personal use only 1 Growth Platform – Cranemere World class exploration asset with high WI Re-rating anticipated on permit award Advanced farm-in discussions 5% BEE partners in place Future Legacy Asset - leverage high value position to grow the firm 2 Enhance Sust
Slide 10: Agenda
Agenda For personal use only Company Overview Cranemere Project South Africa – context Summary & Conclusions 10
Slide 11: Prime Acreage Position
Prime Acreage Position For personal use only Substantial foothold in some of best acreage, adjacent to Falcon/Chevron permit area The application area contains the only well to flow substantial gas to surface (unstimulated, vertical well) Easier terrain than that to the north Source: Company p
Slide 12: Discovered Gas
Discovered Gas Cranemere 1 For personal use only 23 ° 24 ° 25 ° 26 ° 23.5 ° 24.5 ° 25.5 ° 26.5 ° Jura ssic Stormberg Group Merriman NOOPOORT Cranemere SP 500 Section Through Offsetting Wells Carboniferous Triassic Karoo Beaufort Group STEYNSBURG 1000 Ecca and Dwyka Flattened on Top Ecca 1500 RICHMON
Slide 13: Geological Setting
Geological Setting Cr 1/68 Vr 1/66 For personal use only SC 3/67 Cape Fold Belt S tormberg s Beaufort eas ure lM Middle Coa Ecca S Pretoria an Ecca Shales Mmabatho ds Cape Bloemfontein te Durban Supergroup l li Ti Sketch Section a yk Dw Through Karoo Basin Cape Town Port Elizabeth CEL Lands Fort B
Slide 14: Cranemere 1/68 Discovery Well
Cranemere 1/68 Discovery Well For personal use only The well entered a gas zone at approximately 8150 ft MDRT which threatened to blow out, it was controlled by closing BOP Zone interpreted as fractured Ecca Group shales DST 3B over the interval 8154’ – 8312’ produced a strong gas flow to surf
Slide 15: Permit Summary
Permit Summary For personal use only Applicant – Bundu Gas and Oil Exploration (Pty) Ltd; 95% owned and controlled entity of Challenger Energy Ltd. (CEL), 5% BEE partner - Donald Ncube, Director Gold Fields and Vula Mining Supplies, Exec Chair Badimo Gas, Chair Chiporo Rail, formerly Chair of
Slide 16: Timeline & Status
Timeline & Status For personal use only Shell Technical Falcon Technical Shell application Moratorium Moratorium Technical Publication of Co-operation Co-operation for Exploration Introduced Lifted Regulations Tech Regs Permit granted Permit granted Rights Submitted April 2011 Sept 2012 Gazetted ant
Slide 17: Agenda
Agenda For personal use only Company Overview Cranemere Project South Africa – context Summary & Conclusions 17
Slide 18: South Africa – Economy under Pressure
South Africa – Economy under Pressure For personal use only Largest economy in Africa; high levels of unemployment and inequality are the key economic problems facing the country. Official unemployment 25%, unofficial estimates ~40%, youth unemployment ~53%. A quarter of South Africans live on
Slide 19: South Africa – Power Issues
South Africa – Power Issues For personal use only Significantly increased demand since 1994, ageing fleet, ~90% dependent on coal, mine locations remote to demand = line losses, cheap coal reserves running low. Typical available capacity ~30GW vs peak demand of ~36GW Integrated Resource Plan (
Slide 20: Competitive Position of Gas in SA Power Generation Mix
Competitive Position of Gas in SA Power Generation Mix For personal use only Multi Year Price Determinant 3 Eskom electricity pricing plan (MYPD3) regulated by National Energy Regulator of South Africa (NERSA) SA delivered electricity prices rose 12.3% 2012-13, following three years of >20% incr
Slide 21: Growing International Upstream Interest
Growing International Upstream - Offshore Blocks Interest 20 Key points Increasing Offshore activity with significant global interest For personal use only ‣ Recent events There isin incSA r e as in g in ves t o rinter estan d offshore acreage. act ivit y regardin g ExxonMobil application for Existi
Slide 22: Shale Gas in South Africa
Shale Gas in South Africa For personal use only Shale gas impact on US energy security and the economy widely acknowledged; decreasing reliance on imports, revitalizing existing and creating new industries, stimulating growth, increasing employment and improving the balance of payments (IHS rese
Slide 23: Shale Gas: Core to the National Debate
Shale Gas: Core to the National Debate For personal use only State of the Nation Address – Jacob Zuma, President of the Republic of South Africa - 13 Feb 2014 “The development of petroleum, especially shale gas will be a game-changer for the Karoo region and the South African economy. Having evaluat
Slide 24: Agenda
Agenda For personal use only Company Overview Cranemere Project South Africa – context Summary & Conclusions 24
Slide 25: Challenger has a Bright Future
Challenger has a Bright Future For personal use only 1 Unique small cap access to a proven gas to surface shale play in a global Top Ten basin Company making base asset EIA inferred GIP 32tcf, >7 tcf risked recoverable with in Cranemere upside for Fort Brown shales Balance of play fairway unde
Slide 26: Contact
Contact For personal use only Robert Willes – MD Challenger Energy Limited Mobile: +61 410 479 032 Email: robert.willes@challengerenergy.com.au Web: www.challengerenergy.com.au 26
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