Red Sky Energy Limited · ASX:ROG
Red Sky Energy — Shareholder Meeting (May 2010)
15 slides from Red Sky Energy's shareholder meeting presentation, May 25, 2010
Slide 1: Red Sky Energy: an ideal exploration partner for coal seam gas in Australia
For personal use only Red Sky Energy... an ideal exploration partner for coal seam gas in Australia Presentation to: Annual General Meeting Rohan Gillespie, Managing Director 25 May 2010
Slide 2: Business Strategy
Business Strategy For personal use only Red Sky Energy is positioning to be attractive to LNG players
Slide 3: CSG to LNG: unique opportunity
CSG to LNG: unique opportunity For personal use only Putting CSG to LNG in global context: – Unique: major new LNG province within two years of conception – Size of resource: coal seam gas 2P: 25TCF, 3P: 51TCF, 2C 26TCF – Credibility: y Conoco,, Shell,, BG and Petronas teamed with substantive Austra
Slide 4: CSG to LNG: key drivers – investment attraction of Australia
CSG to LNG: key drivers For personal use only Investment attraction of Australia: – Stable politically: no risk of nationalisation – Security of tenure: clear title to exploration and production areas – Competitive p royalties: y State based 10% royalty at well‐head, although uncertainty about propo
Slide 5: CSG to LNG: key drivers – LNG market in Asia
CSG to LNG: key drivers For personal use only LNG market in Asia: – Growth: Asian LNG demand is forecast to grow to 290mtpa by 2030 due to continued urbanisation of China and India – Market share: Australia is well positioned to capture half of this growth – Price: LNG prices have been strengthening
Slide 6: CSG to LNG: key drivers – CSG lower risk than conventional gas
CSG to LNG: key drivers For personal use only CSG lower risk than conventional gas: – Track record: Most coal basins have been proven to work for CSG – Discovery risk: extent of coals well known from coal exploration – Lower cost: Targeted g spend, p , cores <$1m, $ , pilots < $5m – More certainty o
Slide 7: CSG to LNG: key drivers – CSG strengths in QLD and NSW
CSG to LNG: key drivers For personal use only CSG strengths in QLD and NSW: – Coal: highest quality coal province globally – Supply security: has been demonstrated, supplying into domestic markets – Size of resource: > 200 TCF gas‐in‐place – Cost competitive: Amortised capex plus opex ~$2.50/GJ, BG
Slide 8: Potential entry positions
Potential entry positions For personal use only Entry positions for new incumbents are scarce! • Existing LNG proponents: Unlikely to require further partners plus very high entry price • Mid tier and junior explorers: Very few with resource size suitable for LNG • Acquire acreage: Almost all acreag
Slide 9: An Ideal Partner: Acreage position
Red Sky Energy – An Ideal Partner For personal use only Acreage position: – Focus: CSG and unconventional gas – Acreage: Major acreage position across several basins – Materiality: Targeting a portfolio with p potential for at least 50tcf ggas‐ in‐place – Location: Positioned for supply to the Glads
Slide 10: An Ideal Partner: Track record
Red Sky Energy – An Ideal Partner For personal use only Track record: – Substantial exploration company: established within 12 months Secured access to $4m capital raising and Chairman Drilling Biogenic g shareholder approval approval.. appointed.. appointed rig Methane Managing Director NSW acreage
Slide 11: An Ideal Partner: Proven industry experience
Red Sky Energy – An Ideal Partner For personal use only Proven industry experience: – Rohan h Gill Gillespie: i Previously i l VP and d COO off BHP Billiton’s illi ’ Coal C l Seam S Gas G business, b i involved i l d in i pioneering Moranbah Gas Project from inception – Murray Durham: Previously wit
Slide 12: An Ideal Partner: Value
Red Sky Energy – An Ideal Partner For personal use only Value: – Low entry price: Red Sky Energy gives broad exposure at a reasonable cost – Undervalued: Red Sky Energy is undervalued with respect to acreage portfolio Market Company Capitalisation Comments ($m) Bow Energy 326 Focused on gas to power
Slide 13: Significant near term potential discoveries
Red Sky Energy – An Ideal Partner For personal use only Significant near term potential discoveries: – PEL 467 in New South Wales – ATP 946 in Queensland • ATP 946 in Eromanga Basin, central QLD • Two core holes planned • Potential 10tcf gas‐ in‐place • Spud date target mid year (dependent on resolv
Slide 14: Value proposition
Red Sky Energy value proposition For personal use only • Unique opportunity: CSG to LNG in Eastern Australia is a never‐ to‐be‐repeated resource play • Team of choice: Red Sky Energy has vast industry experience and has made significant achievements in a short time • Portfolio still growing: Red Sky
Slide 15: Disclaimer
Disclaimer For personal use only The information presented herein contains predictions, estimates and other forward looking statements that are subject to risk factors that are associated with the oil and gas business. Certain information in this presentation has been derived from third parties and,