Kinetiko Energy Ltd. · ASX:KKO
Kinetiko Energy — Investor Presentation (March 2015)
24 slides from Kinetiko Energy's investor presentation, Mar 5, 2015
Slide 1: Gas Resource Plays in Southern Africa
v For personal use only Kinetiko Energy Limited GAS RESOURCE PLAYS IN SOUTHERN AFRICAN www.kinetiko.com.au ASX: KKO
Slide 2: Disclaimer
Disclaimer For personal use only This document should be read in conjunction with any other available information on Kinetiko Energy Ltd. This document is a summary only and does not include all information about the Company’s assets and liabilities, financial position and performance, profits and l
Slide 3: Company Snapshot (ASX:KKO)
Company Snapshot (ASX:KKO) For personal use only 12 MONTH SHARE PRICE PERFORMANCE CAPITAL STRUCTURE As at February 2015 April 14 Last Price A$0.026 Ord Minnett initiates research with speculative buy (target 12 Month Trading Range A$0.185 - A$0.025 price of $0.31/share) Dec 13 $3m Capital Shares 139
Slide 4: Gas Resource Plays
Gas Resource Plays For personal use only Kinetiko Energy Ltd is exploring and developing unconventional gas resource plays onshore in Southern Africa. The company has over 20,000km2 of tenure and tenure applications in South Africa and Botswana. www.kinetiko.com.au ASX: KKO 4
Slide 5: Strategic South African Partner
Strategic South African Partner For personal use only Kinetiko holds a 49% interest in the Amersfoort project and is outright operator Its founding partner Badimo Gas ( private South African company ) holds a 51% interest in the Amersfoort project Kinetiko commenced a search for potential strategic
Slide 6: Strategic Partners Key To Unlock Scale
Strategic Partners Key To Unlock Scale STRATEGIC STRENGTHS For personal use only PROJECT LOCATION Early mover and large scale potential and is actively looking for strategic partners to fast track and fund development Advanced discussion with several major established and well funded South African B
Slide 7: Northern Main Karoo Basin Gas Model
Northern Main Karoo Basin Gas Model For personal use only www.kinetiko.com.au ASX: KKO 7
Slide 8: Proven Geological Prospectivity
Proven Geological Prospectivity For personal use only www.kinetiko.com.au ASX: KKO 8
Slide 9: Drilling Has Demonstrated Widespread Gas Distribution
Drilling Has Demonstrated Widespread Gas Distribution For personal use only OVERVIEW (Operator) Comprised of 2 exploration licences 56ER and 38ER 1,401km2 with consistent geology 20 exploration core holes with average depth of 500m Gas identified in every hole drilled Maiden reserves expected mid 20
Slide 10: Detailed Geological Aeromagnetics Unlock Field Potential
Detailed Geological Aeromagnetics Unlock Field potential For personal use only High resolution aeromagnetics undertaken have significantly aided in targeting exploration and field design www.kinetiko.com.au ASX: KKO 10
Slide 11: Interval well tests and pilot field development
Interval well tests and pilot field development For personal use only Exploration Production Well development 1. Wireline / geophysical data collection 2. Interval packer tests 3. Production zones tests 4. Packer tests on production zones 5. Packer tests on the coal bed zones Exploration completion
Slide 12: First Pilot Field
First Pilot Field - 6 Month Duration Aim to establish optimal production well design and first reserves For personal use only • Cost $3.4m total • Development time 6 months • Potential trial production revenues possible. www.kinetiko.com.au ASX: KKO 12
Slide 13: Pilot Field Development Stage
Pilot Field Development Stage 1 Aim to demonstrate commerciality and operational parameters For personal use only • Capital cost stage 1 - 8 further wells approx. - $4.5m (inc collection and compression) • Development time 6-8 months • Anticipated cost repayment from gas sales in 6- 12 months possib
Slide 14: Pilot Field Development Stage
Pilot Field Development Stage 2 Aim to demonstrate extended commerciality and operational parameters for sequential field development For personal use only • Capital cost Stage 2 Pilot Field up to 10 further wells total $4.0m • Development time 8 months • Notional average production rates year 1 = 5
Slide 15: Sequential Field Development Of Blocks 2-5
Sequential Field Development Of Blocks 2-5 For personal use only • Each Field development block containing ~20 wells • Cost per block 2-5, including incremental collection and compression facilities approx. $8.5m • Each development block anticipated notional first 12 months full production 5,000,000
Slide 16: Sequential Field Development Of Blocks 6-10
Sequential Field Development Of Blocks 6-10 For personal use only • Continued roll our of development blocks - 20 wells per block for 100 wells. • Assuming equivalent metrics to blocks 1-5, cost $8.5m • Development time 12 months (4 rigs plus 2 workover rigs) • Anticipated notional production in fir
Slide 17: Project Context Of Block Well Development
Project Context Of 10 Block 200 Well Development For personal use only 10 block - 200 well development, covering 35km2 of a demonstrated 1,400km2 shallow gas resource play • Scale potential to develop multiple fields totalling thousands of wells www.kinetiko.com.au ASX: KKO 17
Slide 18: Amersfoort Resource Statement
Amersfoort Resource Statement For personal use only INDEPENDENT RESOURCE P50 Contingent Resource of 1.5 Tcf* Gas in Place (GIP) 2.4 Tcf* Significant resource potential within conventional sandstone reservoirs adjacent to the coals Maiden Reserves expected mid 2015 AS AT AUGUST 20121 Contingent Resou
Slide 19: Superior Location: Existing infrastructure, markets and off take options
Superior Location Existing infrastructure, markets and off take options For personal use only ACCESS TO EXISTING INFRASTRUCTURE PROXIMITY TO MARKET Located at the centre of South Africa’s power generation, mining and transport infrastructure Close to major population centres of Johannesburg and Tshw
Slide 20: Lowest Quartile Cost Environment
Lowest Quartile Cost Environment For personal use only SHALLOW DEPTH = LOW COST = STRONG ECONOMICS Drilling and completions are predominantly shallow and inexpensive Production Well cost ~$200,000-400,000 High quality gas with greater than 95% methane with minimal treatment required for end users Hi
Slide 21: South African Gas Market
South African Gas Market For personal use only GROWING DEMAND AND INSUFFICIENT SUPPLY Current source from Mozambique pipeline ~400 mmscf/day Pipeline nearing capacity - high demand with limited supply Gas price top global quartile $10-12/GJ upwards Coal accounts for 85% of energy mix – under pressur
Slide 22: CBM Peer Comparison
CBM Peer Comparison For personal use only CBM Peer Comparison Company Company (at 4th March 2015) Market Cap (A$m) 3.5 29 309 Gross Tenure (km 2) 19,145 76,000 3,000 Location South Africa & Botswana Botswana China Gross Prospective GIP (Tcf) 6.8 7.7 13.3 Gross 2C Resource (Tcf) 1.5 0.2 2.5 Gross 2P
Slide 23: KKO technical management and consultants
KKO technical management and consultants For personal use only South African Expertise Appointment of South African based CEO Johan Visage, 30 years experience in the oil and gas industry as an engineer with senior roles in mid and downstream gas engineering, field development economics and gas sale
Slide 24: Investment Highlights
Investment Highlights For personal use only Encouraging wells results – gas flowing spontaneously from sandstone Large acreage position Amersfoort Project Prospective GIP 2.4Tcf - Reserves mid 2015 High gas market demand and pricing Right location - close to existing infrastructure and market Experi