Grand Gulf Energy Limited · ASX:GGE
Grand Gulf Energy — Investor Presentation (July 2007)
31 slides from Grand Gulf Energy's investor presentation, Jul 17, 2007
Slide 1: Grand Gulf Energy Limited – July 2007
For personal use only Grand Gulf Energy Limited July 2007 Content of presentation » Why invest in the USA? » Why choose Grand Gulf? » What returns could occur?
Slide 2: Why the US? – Instant Gratification
Why the US? – Instant Gratification For personal use only • The very best country in the world to find oil and gas – The most energy-hungry market in the world – Consumes more per year than the total developed reserves of the North West Shelf every year • Production is immediately sold at high price
Slide 3: USA Gas Consumption and Gas Price
USA Gas Consumption and Gas Price For personal use only 30000000 8 USA Gas consumption 7 25000000 6 20000000 5 Developed NW Shelf Reserves US$/mcf mmcfd 15000000 All WA Gas would only supply USA for 5 years 4 3 USA Gas Price 10000000 2 USA Gas Imports 5000000 1 0 0 80 85 90 95 00 05 19 19 19 19 20 2
Slide 4: Australian Advantage
Australian Advantage For personal use only • Willing to challenge the paradigm • Access to early stage capital • Lower administrative cost for Public Companies • Better at cricket The Right People, Position & Plays
Slide 5: Why Grand Gulf?
Why Grand Gulf? For personal use only • People - right people in the right places • Position - right areas & the right properties • Plays with running room • Poised for growth The Right People, Position & Plays
Slide 6: People
People For personal use only The people – – 150 years oil and gas experience – Running US operation from Houston – Corporate managed from Perth Outstanding corporate, industry and local board and management strength •James Trimble CEO Long career in upstream E&P business - known and trusted by local
Slide 7: People
People For personal use only Large and long-haul investors - putting their money where their mouth is. – Directors and Management = 15.6% – Macquarie Bank = 11% – Argonaut Capital Group = 6% – Other Top 10 shareholders = 35.5% – All management participated in the rights issue – James Trimble was Mac
Slide 8: Position – Great Assets
Position For personal use only Great Assets – All GGE leases are in proven, producing areas – Close to infrastructure – no more than 3 Km away – All areas are highly active and productive The Right People, Position & Plays
Slide 9: Position – Running Room
Position For personal use only Running Room – GGE has “running room” - acquires a meaningful interest in a “play” not single prospects – At Napoleonville and Oklahoma GGE has picked up a “play” so any success will lead to a roll-out of successful wells – Fee Minerals – ownership forever – Track reco
Slide 10: Louisiana & Oklahoma Progress Report
Louisiana & Oklahoma Progress Report For personal use only Conventional plays, Backed by 3D seismic data, High well productivity Extensive infrastructure, Ready market for new discoveries, Short development cycle • Louisiana – Napoleonville Salt Dome • 52 sq miles 3D almost complete – Phase 3B drill
Slide 11: Exploration and Development Program
Exploration and Development Program* For personal use only 2007 2008 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec LOUISIANNA Conoco Legend 3B Phillips #4 3 Legend wells Napoleonville 6 - 8 Napoleonville wells OKLAHOMA Pate 5-18 Reed 4-8 5 Reed wells
Slide 12: Napoleonville 3D seismic survey
For personal use only Napoleonville 3D seismic survey The Right People, Position & Plays
Slide 13: Louisiana Napoleonville Salt Dome
Louisiana Napoleonville Salt Dome For personal use only • A 25% working interest in 28,100 gross lease option acres • 52 sq miles 3D seismic to be completed July 2007 • One of the last Louisiana Salt Domes not to have 3D seismic survey – 3D seismic has historically increased production from Salt Dom
Slide 14: ConocoPhillips-5
ConocoPhillips-5 For personal use only Upper Krumbar Regional Absorption >20BCF >20BCF ConocoPhillips-5 Reserves = 6 Bcf Well depth = 12,500ft Drilling cost = US$1.8 million GGE expects 7.5% interest Arb Line A - Seismic Absorption The Right People, Position & Plays
Slide 15: Bastian Bay
Bastian Bay For personal use only 2000’ Sd. Amp Arb L- B LL & E Well Bastian Leased Area Bay well 2000 Pay 650 Ac. Amp W E Reserves = 3.0 Bcf Well depth = 2,000ft 1800’ sd. Drilling cost = US$1.5 million 2000’ sd. GGE expects 25% interest The Right People, Position & Plays
Slide 16: Catapult-1
Catapult-1 IL 2993 For personal use only Proposed Location Catapult-1 Well XL 1880 35’ Logged Pay B Amplitude Map – 13,400’ Pay Sand Reserves = 30 Bcf Catapult-1 Well depth = 13,500ft Drilling cost = US$2.8 million GGE expects 3.75% interest Arb Line B The Right People, Position & Plays
Slide 17: Oklahoma
Oklahoma For personal use only •3D seismic interpretation underway •2 successful wells drilled •3 immediate follow-up wells •Fee Mineral purchase The Right People, Position & Plays
Slide 18: Recent Seismic Acquisition
Recent Seismic Acquisition For personal use only Most Recent 3D seismic outline Grand Gulf 3D seismic outline Past 3D seismic surveys The Right People, Position & Plays
Slide 19: Preliminary 3D results
Preliminary 3D results For personal use only NW SE Arb Ln2 Amplitude extraction on Sprio pick •Excellent data •Confirms gas trends •Attributes can predict pay The Right People, Position & Plays
Slide 20: Nixon 1-8
Nixon 1-8 For personal use only Reed Nixon #4-8 #1-8 Reserves = 1.0 Bcf Well depth = 9,700ft Drilling cost US$1.5 million GGE expects 8% interest The Right People, Position & Plays
Slide 21: Red Oak 2-17 & Spiro 6-23
Red Oak 2-17 & Spiro 6-23 For personal use only Reserves 1.0 & 3.0 Bcf Well depth = 10000/12000ft Pate #5-18 Drilling cost US$2.5 million GGE expects 8/10% interest The Right People, Position & Plays
Slide 22: Fee Minerals Acquisition
Fee Minerals Acquisition For personal use only • Purchased net 4,000 acres of fee minerals • 3 significant benefits – The fee minerals owner may participate in the drilling of wells and pay no royalty on its interest – Owner may sell mineral leases to exploration companies to drill exploration wells
Slide 23: Areas where GGE Owns Fee Minerals
Areas where GGE For personal use only Owns Fee Minerals Gas Fields Sequoyah Haskell Latimer Foothills Areas LeFlore
Slide 24: 3D Seismic
For personal use only 3D Seismic
Slide 25: 3D Seismic
For personal use only 3D Seismic
Slide 26: Fee Minerals Value
Fee Minerals Value For personal use only • More than an E&P company: through fee minerals and 3D data, assets have intrinsic value in themselves Preliminary Assessment of Thompson Acreage Expected Possible BCF per Probability Sections wells per BCF wells well of success Section Leased within 3D 11 2
Slide 27: Poised for Growth
Poised for Growth For personal use only Value Proposition • Properties + success + right people = Shareholder Value • Current Market Capitalisation – 297.6 million shares @ 8c ~A$24 million • Exposure to potential unrisked prospects of 20Bcf net over next 18 months Potential Value Add from planned d
Slide 28: Monthly Operations Report June 2007
Monthly Operations Report June 2007 Prospects Target Target For personal use only Working Spud Date Total Depth Initial Rate Reserves Well Interest Location (County) (estimated) (estimated) mcf/d mmcf gross Oklahoma 3D Seismic Spiro 10.0% LeFlore October 11,000 ft 1,500 3,000 3D Seismic Red Oak 10.0
Slide 29: 2008 Funding
2008 Funding For personal use only • Oklahoma – Self funding Æ Rabbits • Louisianna - Napoleonville – 3D prospect mapping done 4th Quarter – Delineate PUDs, PUPs ÆArmadillos – Decision whether to fund by debt or equity or farmout or combinations or the three The Right People, Position & Plays
Slide 30: Summary – Why Grand Gulf Energy?
Summary For personal use only Why Grand Gulf Energy? • People – the right people located in Australia and USA • Place – great areas in largest energy market • Plays – large land position with “running room” • Poised for Growth – 20 to 30 wells planned by end 2008 2007/08 Drilling has potential to ad
Slide 31: Contacts
Contacts For personal use only • Charles Morgan – Chairman – cmorgan@seaspin.com.au – +61 (412)152534 • James Trimble – CEO – jtrimble@grandgulf.net – +1 (713)8297930 • Stephen Keenihan – Director – skeenihan@grandgulf.net – +61 (407)757844 The Right People, Position & Plays
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