Metgasco Ltd · ASX:MEL

Metgasco — IIR CSG 2010 Conference

27 slides from Metgasco's conference presentation, Mar 29, 2010

  1. Slide 1: IIR CSG 2010 Conference - Brisbane

    For personal use only IIR CSG 2010 Conference - Brisbane David Johnson – Managing Director 29-31 March 2010

  2. Slide 2: 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

  3. Slide 3: Metgasco

    Metgasco For personal use only  Some history – EVG  Metgasco CSG operations  Acreage  Resources and reserves  Production capability  Development considerations  Forward plan  Metgasco corporate details  Market data & financials  Board and management  Competitive position

  4. Slide 4: Some history – the EVG story

    For personal use only Some history – the EVG story

  5. Slide 5: Back to the future : EVG

    Back to the future : EVG For personal use only  Evergreen Resources (Raton Basin CSG) 2003 SEC 10k Filing Total Cost $ 1.86 1.92 1.62 1.39 1.36 P&L Margin $ 1.00 1.97 1.41 0.57 0.79  5 year average realised price of $US 2.77Mcf

  6. Slide 6: Back to the future : EVG

    Back to the future : EVG For personal use only  Evergreen Resources (Raton Basin CSG) 2003 SEC 10k Filing Number of wells 837 681 491 252 159 Daily Production/Well (Mcf/d) 127 123 108 148 172  5 year average realised daily sales price of $US 2.77Mcf*  5 year daily average production/well of 135Mc

  7. Slide 7: Back to the future : EVG - Some of the lessons

    Back to the future : EVG For personal use only Some of the lessons… Acreage Good acreage position 271,234 net acres Extensive Vermejo coals, a large resource Resource capability Production A low cost producer, internalised cost Capability structures, basin focus Steady production ramp up Development

  8. Slide 8: Metgasco CSG Operations

    For personal use only Metgasco CSG Operations

  9. Slide 9: Acreage

    Acreage For personal use only Tenements PEL 16 826 km² PEL 13 900 km² PEL 426 4,023 km² Total 5,749 km²  1,420,000 acres, mostly contiguous, 100% MEL - a basin focused player  All covering the highly prospective Walloon Coal Measures

  10. Slide 10: Resources & reserves

    Resources & reserves  Extensive occurrence of Walloon Coal Measures For personal use only  From outcrop to 800m depth, most in the 200-600m depth range  Net coal thickness 14-44m, average 29m  Generally fully gas saturated  Mainly clean +95% CH4/C2H6, little or no impurities  Permeability test

  11. Slide 11: Resources & reserves

    Resources & reserves  Consistent and steady 2,500 For personal use only 2,153 buildup of reserves associated with core drilling and testing 2,000 1P 2P 3P 1,479  3P reserves 2,153 Bcf 1,336 1,500  2P reserves 381 Bcf 1,084  Richmond 201 Bcf Bcf  I/J/K 180 Bcf 1,000  All in PEL 16  Productivit

  12. Slide 12: Production Capability

    Production Capability For personal use only Activity Purpose  Trial production & pre development objectives:  NPV/well  Optimised expected ultimate recovery (EUR)/well  Likely cost/well  Where are the productive fairways/hotspots  Appraisal activities to date have identified CSG reservoirs wit

  13. Slide 13: Richmond seam reservoir

    Richmond seam reservoir For personal use only 1000 Activity Purpose  > 2 years of production CP-11 Production Profile history  Initial 1P certification 2.7PJ  Single leg lateral, 680m 100 inseam length  Approaching 0.1Bcf recovery, no decline  Gas composition still +97% 10 CH4  Only modest wat

  14. Slide 14: Richmond seam reservoir

    Richmond seam reservoir For personal use only  Optimised EUR  more in seam exposure to the coal  Underbalanced to reduce formation damage  More efficient water extraction  CP-18 in progress  Inseam completion remaining  Likely cost structure/well  Time on well - CNX Virginia operations 7 day

  15. Slide 15: I/J/K Reservoirs

    I/J/K Reservoirs For personal use only Activity Purpose  Banded sequence coal-carb shale  Estimated equivalent lower Taroom in Surat Basin  Laterally very extensive  Average 14m thick  Gas content average 527scf/t daf  Gas composition  92% CH4  5% C2H6  Current 2P reserves 180 Bcf 15

  16. Slide 16: I/J/K Reservoirs

    I/J/K Reservoirs For personal use only Activity Purpose  Banded nature of coal carbonaceous shale  Suitable frac candidate  What is the EUR ?  Frac design  Intervals to be fracced  Fluid type & quantity  Proppant type and quantity  Likely cost structure/well  Design improvements  Scale of

  17. Slide 17: Full Section dry coal (Wyan)

    Full Section dry coal (Wyan) WYAN E-1: Full Section Flow Test For personal use only Activity 1000  PEL 13, south west of Casino 18/6 22/6 24/6  Drilled using air (Air Drill Flow Rates (Mscf/d) Vertical – ADV) 100  Stabilised flow rate on test of 170Mcf/d  Gas signature is CSG, NO WATER ! reservo

  18. Slide 18: Full section dry coal (Wyan)

    Full section dry coal (Wyan) For personal use only Activity Purpose Initial rate comparable to Horseshoe * Canyon production well  Horseshoe Canyon (Canada)  Prolific play in western canadian sedimentary basin  Drill and complete 3 wells per day  Dry – no or little water  Wyan E1 - potentially

  19. Slide 19: Development Considerations

    Development Considerations For personal use only Activity Purpose  Metgasco is assessing optimised EUR/well and likely cost structures (NPV/well) for different reservoirs  For development - where and what are the productive fairways/hotspots to commence activities ?  One only example: The Eden Cr

  20. Slide 20: Eden Creek Trend

    5km Eden Creek Trend  Potential emerging fairway For personal use only Activity  Broad anticline covering 193km²  Sitting on previously known conventional structure (Dyraaba lead) A  Major East Richmond fault  Walloon outcrop updip to west  Isotope data showing biogenic recharge  A regional s

  21. Slide 21: Eden Creek Trend

    Eden Creek Trend For personal use only A B WALLOON COAL MEASURES

  22. Slide 22: CSG 2010 Forward Plan

    CSG 2010 Forward Plan  Eden Creek Trend (PEL’s 16 &13) pre For personal use only Activity development activities Purpose  Bowerbird E2 core well  Likely follow up stratigraphic drilling  Complete CP-18  I/J frac well design and completion  30km new 2D seismic BE-2 ☼  Reservoir data and NPV/we

  23. Slide 23: CSG 2010 Forward Plan

    CSG 2010 Forward Plan For personal use only Activity Purpose  Basin Exploration Program – Fairway identification  Seek to highgrade prospectivity  Air drill vertical program  PEL 426  Banyabba, Tullymorgan ADV’s  30km new 2D seismic  PEL 13  Wyan ADV, other areas  60km new 2D seismic 23

  24. Slide 24: Metgasco corporate details

    For personal use only Metgasco corporate details

  25. Slide 25: Market Data & Financials

    Market Data & Financials ASX code MEL Activity Share price (25 MarchPurpose 2010) $0.59 For personal use only Market Capitalisation $147 m Shares on Issue 250 m Options on Issue 6m Cash at 31 Dec 09 $29.0 m Debt nil 100 500000 90 450000 80 400000 70 350000 Share Price (cents) 60 300000 Share Price 5

  26. Slide 26: 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 roles exploration worldwide in senior roles. Previously previousl

  27. Slide 27: MEL : CSG Competitive Advantages

    MEL : CSG Competitive Advantages  SignificantActivity acreage, large resource and Purpose reserve position For personal use only  Significant resource understanding with developed knowledge of reservoirs and drilling and completion methods  Can be cost competitive  Single operations base, lean c

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