Kinetiko Energy Ltd. · ASX:KKO
Kinetiko Energy — Indaba (February 2014)
19 slides from Kinetiko Energy's conference presentation, Feb 3, 2014
Slide 1: Kinetiko Energy Limited – The Early Mover in Southern African Onshore Gas
v For personal use only Kinetiko Energy Limited THE EARLY MOVER IN SOUTHERN AFRICAN ONSHORE GAS 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 SHARE PRICE PERFORMANCE CAPITAL STRUCTURE Price($) Volume As at 22 November 2013 6 May 13 Acquired 0.40 10,500km2 in 1.0 Last Price A$0.20 12 March 13 Increased land Botswana position to 15,707km2 in 12 Month Trading Range A$0.36 - A$0.155 South Afric
Slide 4: First Mover in Southern Africa's Onshore Gas
First Mover in Southern Africa’s Onshore Gas For personal use only STRATEGIC STRENGTHS Early mover and large scale potential (>19,000km2) Coal bed methane and sandstone gas resource PROJECT LOCATION Strong energy market and gas outlook ($8-$10/GJ) Existing infrastructure and offtake customers Low co
Slide 5: Amersfoort Project the Story So Far
Amersfoort Project the Story So Far Expanding Gas Footprint For personal use only OVERVIEW (KKO 49%, Operator) DRILLING LOCATIONS Comprised of 2 exploration licences 56ER and 38ER 1,601km2 with consistent geology 20 exploration core holes with average depth of 500m Gas identified in every hole drill
Slide 6: Proven Geological Prospectivity
Proven Geological Prospectivity For personal use only CBM & ADJACENT SANDSTONE GAS World class coal field Coal seams between 1m to 4m thick Hydraulic stimulation is unlikely to be required Significant resource potential within conventional sandstone reservoirs adjacent to the coals trapped by volcan
Slide 7: Proven Geological Prospectivity
Proven Geological Prospectivity For personal use only www.kinetiko.com.au ASX: KKO 7
Slide 8: Amersfoort - Independent Resource
Amersfoort - Independent Resource 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 2014 AS AT AUGUST 20121 Contingent R
Slide 9: Beyond Amersfoort Securing First Mover Momentum
Beyond Amersfoort Securing First Mover Momentum For personal use only 19,000 km 2 OF EXPOSURE IN SOUTH AFRICA LARGE EXPLORATION FOOTPRINT Strategically secured Technical Commercial Permits (TPC) over a large area surrounding Amersfoort TCP allow holder to carry out desktop studies for 12 months prio
Slide 10: Summary of Operations
Summary of Operations For personal use only TOTAL EXPLORATION RIGHTS AND APPLICATIONS BOTSWANA PROJECTS Project/ Tenure Area (km2) Amersfoort Project 1,601 ER Application TCP37 to ER12/3/266 3,168 ER Application TCP39 to ER12/3/267 757 ER Application TCP42 to ER12/3/268 363 App TCP64 2,394 App TCPAm
Slide 11: Work Program Update
Work Program Update For personal use only PILOT PRODUCTION IN 2014 Test wells have shown that gas is present in both the coals and sandstones at pressure that can sustain significant flow rates with no stimulation other than water pumps Technical review underway to optimise 2014 exploration Pilot pr
Slide 12: Lowest Quartile Cost Environment
Lowest Quartile Cost Environment For personal use only SHALLOW DEPTH = LOW COST = STRONG ECONOMICS PILOT TEST WELL KA-03PT Drilling and completions are predominantly shallow and inexpensive Well cost ~$200,000 High quality gas with greater than 95% methane with minimal treatment required for end use
Slide 13: South African Gas Market
South African Gas Market For personal use only GROWING DEMAND AND INSUFFICIENT SUPPLY POTENTIAL PARTNERS Current source from Mozambique pipeline ~400 mmscf/day Pipeline nearing capacity - high demand with limited supply Gas price top global quartile $12/GJ upwards Coal accounts for 85% of energy mix
Slide 14: Superior Location Existing infrastructure, markets and off take options
Superior Location Existing infrastructure, markets and off take options For personal use only ACCESS TO EXISTING INFRASTRUCTURE PROXIMITY TO MARKET Located at the centre of South Africa’s power generation, mining and transport infrastructure Close to major population centres of Johannesburg and Tshw
Slide 15: KKO Board and Management
KKO Board and Management For personal use only Adam Sierakowski – Non-Exec Chairman Lawyer and founder of Price Sierakowski and Trident Capital Extensive experience in capital raising and ASX transactions for major companies Director of ASX listed Coziron Resources Ltd and Triangle (Global) Energy L
Slide 16: Strong South African Partner
Strong South African Partner Experienced RSA organisation with a significant ER holding and strong Government and regulator relationships For personal use only Donald Ncube (BA Economics), MSc (Manpower Studies), Honorary Doctorate Commerce (University of Transkei) Executive Chairman & Founder of Ba
Slide 17: Investment Opportunity
Investment Opportunity For personal use only Government supportive of gas development High gas market demand and pricing Encouraging wells results – gas flowing spontaneously from sandstone Robust economics - low well and operating costs Right location - close to existing infrastructure and market M
Slide 18: Photos
Photos For personal use only Gas compressor for vehicles KA-03 Coring rig on Volksrust Well head and separator KA-03 Gassy core on Volksrust Initial Pilot Test well flare KA-10 Pilot Test cement job crew Pilot Test drilling Initial Pilot Test well flare KA-03 www.kinetiko.com.au ASX: KKO 18
Slide 19: CBM Peer Comparison
CBM Peer Comparison For personal use only CBM Peer Comparison Africa International Company Market Cap (A$m) 25 41 8 15 290 360 3721 Gross Tenure (km 2) 19,000 76,000 36,500 5,200 3,000 877 >1,556 Location South Africa & Southern Botswana & Indonesia & China India UK Botswana Africa Australia Eastern