Metgasco Ltd · ASX:MEL
Metgasco — Australian Gas Markets Conference 2007
20 slides from Metgasco's conference presentation, Aug 23, 2007
Slide 1: Developing Gas Reserves In New South Wales
For personal use only Developing Gas Reserves In New South Wales Glenda McLoughlin – Director & Chief Financial Officer Australian Gas Markets Conference 23 August 2007
Slide 2: Introduction to Metgasco
Introduction to Metgasco For personal use only Exploration, appraisal and commercial development of coal seam gas (CSG) and conventional oil and gas. Listed on ASX two and a half years ago (ASX Code: MEL). Focus on the Clarence Moreton basin in NSW - Large acreage position – approx 6,000 km2 -
Slide 3: Developing the Clarence Moreton basin
Developing the Clarence Moreton basin For personal use only One of the most unexplored petroleum basins on the east coast of Australia Triassic - Jurassic – Cretaceous basin - CSG and conventional oil & gas potential Large land position of around 6,000km2 Key assets (operator): PEL 16 PEL
Slide 4: Experienced Board & Management
Experienced Board & Management For personal use only Dr Peter Power – Chairman Former Managing Director of Ampolex. Past Chairman of APPEA. David Johnson – Managing Director Geologist with 20 years experience in the minerals and petroleum sectors. Glenda McLoughlin – Director & Chief Financial
Slide 5: Eastern Australian gas markets are rapidly evolving
Eastern Australian gas markets are rapidly evolving For personal use only Demand for “clean gas” is increasing. Traditional sources of gas supply are in decline New sources of gas are rapidly emerging Gas markets are becoming more connected National Gas Code – a new regulatory regime Eme
Slide 6: Demand for clean energy is increasing
Demand for clean energy is increasing For personal use only New power Electricity demand growth has absorbed excess capacity generation New power generation capacity required in NSW and Qld required Wholesale power prices increases Carbon Strong community desire to reduce CO2 emissions const
Slide 7: Effective gas markets are being established
Effective gas markets are being established For personal use only Historically Australia has historically had single basin-to-market pipeline infrastructure isolated markets Long term contracts required to underwrite development of infrastructure New new pipelines: Eastern Gas Pipeline, SEAGAS
Slide 8: Changing gas supply and demand dynamics
Changing gas supply and demand dynamics For personal use only Gas Cooper basin and Bass strait in decline supplies Alternatives have more attractive markets elsewhere declining CSG CSG now supplying 30% of Queensland market volume growth Rapid expansion of Queensland gas reserves Low gas p
Slide 9: Big users are targeting upstream supplies
Big users are targeting upstream supplies For personal use only Conflicting forecasts from “expert” models on demand / supply fundamentals Big gas users are focused on securing natural fuel hedges - Origin invests $260 million in Spring Gully - AGL buys 50% of Sydney Gas, 27.5% of QGC, 35% of CS
Slide 10: Metgasco is close to fast growing markets
Metgasco is close to fast growing markets For personal use only SE Qld and NE NSW are Australia’s fastest growing regions. - Power demand forecast to grow by 260 MW pa - No pipeline/reticulated gas in northern NSW Metgasco is in NSW, the State with a critical need for new gas supplies Metgasco
Slide 11: Substantial CSG exploration program underway to increase gas reserves
Substantial CSG exploration program underway to increase gas reserves For personal use only Metgasco holds the largest certified 700 640 gas reserves in NSW. 600 Large reserve increase announced 500 in July. 400 Substantial CSG exploration drilling 300 program underway over the past 8 months 2
Slide 12: CSG – exploration focus on Walloon Coal Measures
CSG – exploration focus on Walloon Coal Measures For personal use only Drilling into coal seams at 400 – 500m High gas content: 770 Scf/t (daf) Substantial coal volumes: 20 – 44 metres of net coal 11 coal seams identified WCM extensive throughout the basin 12 Section 3 – Growth Potential P
Slide 13: Conventional oil & gas exploration is beginning
Conventional oil & gas exploration is beginning.. For personal use only The basin has had minimal conventional exploration in the past - poor data availability Metgasco has completed a two year program to re-process and re- interpret available 2D seismic data in the basin. Additional 300 km of
Slide 14: Metgasco has a portfolio of core projects
Metgasco has a portfolio of core projects For personal use only CS Energy gas sale – major generation company in Qld - 360 PJ over 20 years Develop pipeline infrastructure to deliver gas to customers - 145km high pressure gas pipeline from Casino to Swanbank Achieve early commercialisation of
Slide 15: CS Energy – a foundation customer
CS Energy – a foundation customer For personal use only CS Energy farm-in to CSG rights of 27% of PEL 16 1 Goal to establish 540 PJ in 2P reserves within 12 months 4 5 Goal to supply 18 PJ/year for 20 years CS Energy will invest $11 M to earn an initial 15% interest in farm-in area CS Ener
Slide 16: Casino to Ipswich Pipeline
Casino to Ipswich Pipeline For personal use only 2P Reserves 22 PJ 3P Reserves 1,123 PJ 16 Section 4 – Project Update Page 16
Slide 17: Richmond Valley Power Station
Richmond Valley Power Station For personal use only 30 MW gas fired power station at Casino Requires 2.5 PJ/pa over 15 years FEED completed EA completed Drilling program underway to establish 2P reserve target of 100 PJ Page 17 17 Section 4 – Project Update
Slide 18: CSG pilot drilling commencing in October
Phase 2 – CSG pilot drilling commencing in October For personal use only Achieving commercial gas flows of > 400 mcf/day/well is key metres Phase 1 – pilot SIS wells - sub-optimal in design & execution - improvements 2P identified 100 Reserves Phase 2 pilot 22 PJ production trials planned Coal
Slide 19: In Summary…
In Summary… For personal use only 9 A fundamental shift is underway in the eastern Australian energy market 9 Access to energy resources is key 9 Metgasco holds the largest certified gas reserves in NSW 9 Substantial reserve upgrade program underway 9 Well defined gas commercialisation strategy 9 Cl
Slide 20: Disclaimer
Disclaimer For personal use only 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 an