Aj Lucas Group Limited · ASX:AJL
Aj Lucas — Investor Presentation (December 2011)
34 slides from Aj Lucas's investor presentation, Dec 28, 2011
Slide 1: AJ Lucas Group Limited: The Road To Cuadrilla
For personal use only AJ Lucas Group Limited: The Road To Cuadrilla December 2011
Slide 2: Executive Summary & Update
Executive Summary & Update The Company AJ Lucas Group Limited (“AJL” or the “Company”) For personal use only Drilling Services Operational Business Units Building, Construction & Infrastructure (“BC&I”) Asset Services Cuadrilla –European shale gas and liquids; 200 Tcf Gas In Place at Bowla
Slide 3: A Diversified Infrastructure Construction & Drilling Services Group
A Diversified Infrastructure Construction & Drilling Services Group Operational Business Units For personal use only Drilling Services Building, Construction and Infrastructure Asset Services • Largest drilling service provider to the coal and CSG • Provides engineering and construction services to
Slide 4: Business Model
Business Model For personal use only Identify Create Investment Generate Returns Operational Opportunities Leverage Goal Operating Drilling Asset BC&I Services Services Focus Four Supply Specialist, Niche Engineering & Infrastructure Related Services Sectors Water & Public Energy Resources Waste Inf
Slide 5: Track Record of Delivering On Investments
Track Record of Delivering On Investments For personal use only Period of Ownership Investment ($m) Sale Proceeds ($m) IRR Realised Investments Gloucester Basin 2002-2008 26.4 259.0 112% Sydney Gas 2007-2008 28.8 34.2 19% ATP 651 2003-2010 5.1 98.6 148% Arawn 2006-2010 7.9 Written off 0% Current Inv
Slide 6: Performance and Outlook
Performance and Outlook 2011 Performance Financial Summary (FY11 Actual) (Source 2011 Annual Report) For personal use only • Project delays, residual business acquisition integration costs, wet 2010 2011 2011 2011 2010 /11 weather, one-off write downs($8.4m), high financing costs (13-15%) all Year 1
Slide 7: Balance Sheet Effect of Recapitalisation Plan
Balance Sheet Effect of Recapitalisation Plan Statutory Kerogen Cuadrilla Mezzanine Repay ATO Pro-forma $'000 30/06/11 Placement Subscription Loan RCPS Buyback Rights Issue and ANZ 30/06/2011 For personal use only Current Assets Cash 1,348 13,389 (10,108) 85,000 (59,159) 48,219 (70,067) 8,622 Other
Slide 8: Drilling Services
For personal use only 8 Drilling Services
Slide 9: Drilling Services Business Overview
Drilling Services Business Overview Geographic Footprint (Number of Operating Rigs) Drilling Division Revenue ($m) (1) For personal use only $200.0 $190.1 $189.3 $174.7 $180.0 $160.0 $140.0 $120.0 $100.0 $77.3 $80.0 $54.9 $60.0 $40.0 $20.0 $12.2 Bowen Basin $0.0 Galilee Basin 2006 2007 2008 2009 201
Slide 10: Drilling Services Business Overview
Drilling Services Business Overview Lucas Drilling Divisional Breakdown For personal use only Lucas Drilling Services Exploration and Development Production Directional Drilling Engineering Services Well Services NSW QLD Coal CSG Service Offering Exploration and Development Production Drilling Direc
Slide 11: Drilling Services Business Highlights
Drilling Services Business Highlights – Direct exposure to the booming Australian resources sector Strong Industry – Coal and energy activity expected to remain buoyant For personal use only Fundamentals – Australia is expected to remain as the world’s second-largest exporter of coal (25% market sha
Slide 12: Building, Construction and Infrastructure
For personal use only Building, Construction and Infrastructure 12
Slide 13: BC&I Business Overview
BC&I Business Overview For personal use only BC&I Group Capability Major Projects Decades of design and construct experience in Yarwun HDD and Moomba Sleeving Gladstone Area commercial, industrial, government and residential Gorgon HDD $4m Waterboard $175m $55m Construction business projects Cre
Slide 14: BC&I Business Highlights
BC&I Business Highlights For personal use only Strong Industry – Massive infrastructure spending forecast in support of coal export growth (railways, port capacity expansion and associated works) and Fundamentals LNG exports from CSG (gas pipelines, gathering systems, pump stations, compressor stati
Slide 15: Asset Services
For personal use only 15 Asset Services
Slide 16: Asset Services Business Overview
Asset Services Business Overview For personal use only Overview Future Opportunities Relatively new business unit which provides maintenance and refurbishment services to The market for this activity is expanding rapidly as reticulation and network systems in gas both gas and water reticulation ne
Slide 17: Safety
For personal use only 17 Safety
Slide 18: Industry Leader in Safety
Industry Leader in Safety For personal use only Lucas Practices A Proactive And Vigilant Safety Culture. Our Goal Is To Achieve An Injury-Free Workplace. Proactive Safety Actions vs. TRIFR 9000 25 Weekly Safety / Toolbox 22.9 Meeting 21.5 8000 Hazard Reports 20.3 The 12 month TRIFR has 20 Safety Obs
Slide 19: Investment Portfolio
For personal use only Investment Portfolio 19
Slide 20: Cuadrilla Overview
Cuadrilla Overview For personal use only Net 1.65m acres awarded; a further 0.8m acres pending Large Land Holding – First Amongst the largest holdings in Europe Mover Advantage Generally targeted basins with proven petroleum history and/or in close proximity to existing gas pipeline infrastruc
Slide 21: Cuadrilla European Plays
Cuadrilla European Plays For personal use only Cuadrilla is holds one of the most geographically diversified unconventional portfolios in Europe EIA Assessed Basins with Resource Estimate PEDL165, EXL269 Bowland Shale 293,190 Acres EIA Assessed Basins Multi TCF shale gas without Resource Weald: KOSP
Slide 22: Cuadrilla Exploration Licences Granted
Cuadrilla Exploration Licences Granted For personal use only Award Date License/Prospect Country Basin Gross Acres Net Acres Partner (%WI) PEDL 165 UK Bowland 2008 293,190 219,893 Lucas 25% PEDL 244 UK Weald 2008 67,000 50,250 Lucas 25% PEDL 247 UK Weald 2011 135,265 135,265 Noord Brabant Neth Roer
Slide 23: Bowland Basin, Lancashire UK
Bowland Basin, Lancashire UK For personal use only 1. Preese Hall #1 2. Grange Hill #1 3. Becconsall #1 2 4. Anna’s Road #1 1 A A. Thistleton #1 B. Hesketh #1 4 C. Banks #1 B 3 C 23
Slide 24: Bowland Basin, Potential Near Term Commercial Resource
Bowland Basin, Potential Near Term Commercial Resource For personal use only Extracts from Debate on Fifth Report from the Energy and Climate Change Committee: 3 November 2011 Charles Hendry, Minister of State, Department of Energy and Climate Change: “ we are in no doubt about the importance of hav
Slide 25: Strategic Importance to the UK is being recognised
Strategic Importance to the UK is being recognised For personal use only Even if only ten per cent [of Bowland’s 200Tcf OGIP] turns out to be commercially recoverable this would still be enough to meet Britain’s gas supply needs for around 15 years. In time it may be enough to offset the rapid decli
Slide 26: Hungary: Cuadrilla's First Hydrocarbon Production
Hungary: Cuadrilla’s First Hydrocarbon Production For personal use only Cuadrilla has a 22% Working interest in the Kiha Licence and BA-E1 in Hungary. Cuadrilla’s first unconventional production well, producing from tight gas sands Close to pipeline infrastructure, production contracted for 12 m
Slide 27: East Texas Monument Prospect
East Texas Monument Prospect Overview Location Stratigraphic Column (East Texas Basin) For personal use only • 62, 560 acres (net to Tekxon Monument Oil & Gas LP) located in Trinity County, East Texas (Monument Prospect AMI) in East Texas Basin • East Texas Basin has a long history of oil production
Slide 28: Canning Basin Holdings
Canning Basin Holdings Location Well Results (Prior to Fraccing Technology) For personal use only AJ Lucas Overview • 100% beneficial interest in an application for a petroleum permit over 8,010 square kilometres in the Canning Basin Exploration Permit Application 17/07-8EP • The company considers t
Slide 29: Appendices
For personal use only 29 Appendices
Slide 30: European Gas Market: Shale Gas to Cause A Fundamental Shift
European Gas Market: Shale Gas to Cause A Fundamental Shift European Gas Production (and their relative consumption) European Gas Per Capita Consumption For personal use only 25,000 180,000 160,000 Russian Federation Turkmenistan 20,000 140,000 15,000 120,000 Netherlands Russian Federation 100,000 1
Slide 31: The Importance of Shale Gas: A US Case Study
The Importance of Shale Gas: A US Case Study What is Shale Gas? US Natural Gas Consumption For personal use only Shale gas refers to natural gas that is trapped within shale formations. Shales are Shale gas in 2009 made up 14% of total U.S. natural gas supply and is expected fine-grained sedimentary
Slide 32: Extracting and Commercialising Shale Gas
Extracting and Commercialising Shale Gas Generic Schematic Showing Shale Fas Extraction Pad Drilling Multi-Lateral Drilling For personal use only Increasingly common to use a single drill Involves the drilling of two or more pad to develop as large a sub- surface horizontal wells from the vertic
Slide 33: Key Risks Factors
Key Risks Factors Please refer to the Company Prospectus dated 15 December 2011 for additional risk factors and more detail on those below For personal use only What are the Key Personnel key risks Terminable Material Contracts associated with Environmental the operational businesses of Seas
Slide 34: Disclaimer
Disclaimer These presentation materials (Presentation Materials) are being issued solely to and directed solely to Sophisticated and Professional Investors, as those terms are defined For personal use only in the Corporations Act 2001 (Cth), who may have interest in sub underwriting the Entitlement
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