Metgasco Ltd · ASX:MEL
Metgasco — CMM Summit, Brisbane May 2007
15 slides from Metgasco's conference presentation, May 8, 2007
Slide 1: CSM Development in the Clarence Moreton Basin
Ona ACN 088 196 383 CSM Development in the Clarence Moreton Basin CSM — CMM Summit, Brisbane May 2007 Page 4
Slide 2: Agenda
Nn Oa fF wn > Company Overview Board and Management Basin Gas Supply Review Regional Gas Demand Review Richmond Valley Power Station CS Energy Farm-in Summary Page 2 tii iii
Slide 3: ASX Listed Company Overview
December 2004 ASX Listed Company Focus on appraisal and development of coal seam gas (CSM) and also conventional oil and gas potential in Clarence Moreton Basin. Goal to expand 2P gas reserves to 660 PJ over next 12 Share price (2/5/2007): Market cap: Shares on issue: Options on issue: Cash on hand:
Slide 4: Board and Management
Dr Peter Power - Chairman Former Managing Director of Ampolex. Over 40 years experience. Foundation Head of Geology at NONE {row Curtin University}. Past President of Australian Geoscience Council. Past Chairman 9) . David Johnson — Managing Director Geologist with 20 years experience in the mineral
Slide 5: The Clarence Moreton Basin is under explored
The Clarence Moreton basin is one of the most under explored sedimentary basins on the east coast of Australia = Jurassic — Cretaceous basin with CSG and conventional gas (& oil) potential = CSG development focused on Walloon Coal Measures = Gross acreage over 1,350,000 acres (5,483km?) PEL 16 (96%)
Slide 6: Reserves
| Reserves | 22P! Section 3 — Basin Gas Supply Review Page 6 CSG Development : Focus on Walloon Coal Measures Program to December 06 Possible (3P) gas reserves of 1,123 PJ = Probable gas reserves are 22 PJ (2P) Certified 2P reserves are only on a single coal seam (Richmond seam) over 36 km? at South
Slide 7: Gas content and optimising production
Gas content High Horizont Drilling \ Vertical Dri & Frac \ ro Drill & Under-rea Low Low Permeability High metres Coal seam SE STE RS I EL SS RS BSE LS CO ES SSI ~ Optimising Production - Matching technology to the CSM reservoirs Walloon Coal Measures in the Clarence Moreton Basin = High Gas Contents
Slide 8: Metgasco Ensign Alliance
Section 3 Basin Gas Supply Review Page 8 Metgasco Ensign Alliance Provision of ADR 100 on head lease, long term option basis Identical to rigs being used in Arkoma where: - 1800m TVD holes in 7 days - Recently 1200m coal in 40 hours ~ 54km coal in 1 year, 1 day standby Air drilling capability, conve
Slide 9: Untested conventional potential
Substantial untested conventional potential - lateral equivalents of surat basin reservoirs Previous gas flows at Hogarth/ Clifden Irregular seismic coverage, “old” drilling technology Recent core drilling —- numerous trace hydrocarbon indicators, one “live” oil/condensate show Reprocessing of pre e
Slide 10: Regional Gas Demand Review
vost (AS SOURCE) Existing pipeline _e Proposed 2 pipeline Section 4 Regional Gas Demand Review Clarence Moreton Gas is close to fast growing markets — as electricity or gas South east Queensland and north east New South Wales are Australia’s fastest growing regions. - Power demand forecast to grow b
Slide 11: Richmond Valley Power Station and CS Energy Farm-in
= — Richmond Valley Power Station = CS Energy Farm in = 200 MW gas fired power station located in northern NSW. « — Additional gas sale agreements - currently in discussion. » Local customer base high margin gas sales Section 4— Regional Gas Demand Review Page 11 METGASTO uid
Slide 12: Richmond Valley Power Station
Page 12 30 MW gas fired power station located at Casino Supply power into local grid at 66kv connection ~500m away Australian Pipeline Trust appointed preferred infrastructure partner Currently negotiating tolling agreement with APT EA nearly complete Will require gas supply of 2.5 PJ/ year for 10 y
Slide 13: CS Energy Farm-in
In Dec 06, CS Energy (Qld Government owned generator) entered into farm-in deal with Metgasco covering CSG rights to Blocks 4,5 & 1 of PEL 16 (approx 27%). CS Energy will spend $11 M to earn an initial 15% interest in farm-in area. - To fund 10 core wells and a pilot horizontal drilling program. - T
Slide 14: Summary
A substantial resource identified Significant additional conventional potential Major reserve delineation and production development program Fundamental energy market supply position Numerous supply opportunities Accelerating commercialisation phase ne METGASCOu: ACN OBE 106 382
Slide 15: Forward looking statements
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 and changes in underlying assumptio