Metgasco Ltd · ASX:MEL
Metgasco — Investor Presentation (June 2011)
23 slides from Metgasco's investor presentation, Jun 17, 2011
Slide 1: Investor Update & Capital Raising
Investor Update & Capital Raising 17 June 2011
Slide 2: Disclaimer
Disclaimer This presentation is being provided for the sole purpose of providing the recipients with background information about Metgasco Ltd (Metgasco). No representation, express or implied, is made as to the fairness, accuracy, completeness or correctness of information contained in this present
Slide 3: Executive Summary
Executive Summary Metgasco is seeking to raise approximately $21 million through: a non-underwritten Placement; and a Share Purchase Plan (“SPP”). Institutional placement at $0.26 per share which represents a discount of 17.5% to Metgasco’s closing price on 14 June 2011. Further details on
Slide 4: Overview
Overview Metgasco is an ASX Listed, onshore conventional and unconventional gas company, with significant 100% owned acreage in Clarence Moreton Basin (NSW) Onshore conventional and unconventional gas Large uncommitted coal seam gas reserves – established in less than 10% of the Company’s acre
Slide 5: Corporate Overview
Corporate Overview Capital Structure Purpose ASX code MEL Share price (at 14 June 2011) $0.315 Market Capitalisation (million) $79.6 Shares on Issue (million) 252.7 Options on Issue (million) 9 Cash (at 31 March 2011) $7.7 Debt Nil Board and Management Team Nicholas Heath Chairman, Non-Executive Dir
Slide 6: New Managing Director – Peter Henderson
New Managing Director – Peter Henderson Metgasco about to transition from exploration to production Skills now added at the top of the organisation to ensure delivery of our projects Peter Henderson Senior roles with Santos, WMC, Clough & ExxonMobil Mechanical engineer with 30 years experi
Slide 7: Acreage
Acreage World scale acreage position in Clarence Moreton Basin (CMB) 3 tenements (PEL 16, 13 & 426) 1,126,059 acres 100% owned Active 2 year drill program demonstrated CMB is gas charged over distance of 100km Large gas resources with significant volume growth potential Located close t
Slide 8: Large and growing coal seam gas reserves
Large and growing coal seam gas reserves Australian Coal Seam Gas Reserves 100% ownership of gas (Petajoules) reserves Company 3P 2P QGC (BG) 14,261 7,245 Large uncontracted reserve Origin 6,206 4,786 position in the CSG sector Conoco Phillips 6,206 4,786 Reserves: Shell 4,129 2,636 PetroChina
Slide 9: Significant progress over the last 12 Months
Significant progress over the last 12 Months CSG exploration – Bowerbird drilling program likely to deliver reserve upgrade First drilling in PEL 13 CSG fairway interpreted to extend to the west Currently preparing data for reserve certification process CSG: drilling program completed. Har
Slide 10: CSG Trial Production - Richmond seam
CSG Trial Production - Richmond seam Corella P11 – single lateral on production test for over two years Corella P18 – sidetrack single lateral (improved drilling and completion techniques) - currently dewatering Harrier P01 – dual lateral recently finished drilling – production testing underwa
Slide 11: CSG Trial Production – Thornbill E01
CSG Trial Production – Thornbill E01 Thornbill E01 – Vertical well, no stimulation Produced gas immediately at 100Mcf/d No water production
Slide 12: Kingfisher gas field
Kingfisher gas field Kingfisher E01 First major conventional gas discovery in NSW (November 2009) 138 meters of gas charged sands identified Additional gas charged sands likely below the TD of Kingfisher E01 Depth of system unknown Up to 500 meters of additional section below TD of Kingf
Slide 13: Exploration program – 2010 2D seismic
Exploration program – 2010 2D seismic Kingfisher Field Contingent resource P50 : 77 Bcf P10 : 284 Bcf Likely to be related to Mackellar North structure Mackellar Lead P50 OGIP 77 Bcf Mackellar North Lead P50 OGIP 1,312 Bcf
Slide 14: The growing importance of gas worldwide
The growing importance of gas worldwide Recent Exxon Mobil forecasts predict… Natural gas will surpass coal use in the next two decades China’s natural gas demand will rise 6-fold Natural gas consumption will come close to oil consumption The UK Government says… The rapid growth of gas-f
Slide 15: Unconventional gas is here to stay
Unconventional gas is here to stay Unconventional gas Coal seam gas Tight gas Shale Gas Hydrates and other Energy majors are hungry for positions in large scale unconventional gas resource plays Shell/ Petrochina – Acquisition of Arrow Energy A$3.5 Billion BG – Acquisition of QGC A$5
Slide 16: Multiple development pathways – gas, power, LNG
Multiple development pathways – gas, power, LNG 700 1x 3.5 Mtpa NSW Electricity LNG Plant Market with 600 Carbon price or direct action Distance to Market (Km) 500 policy Power 400 Brisbane 300 Gas Load Mini200 LNG Nth NSW 100 Electricity ad NRPS RVPS 0 Export LNG 0 100 200 300 400 500 Market Sector
Slide 17: Commercialisation Agenda - Local sales and power generation
Commercialisation Agenda - Local sales and power generation Gas sales to Richmond Valley customers 30 MW Richmond Valley Power Station Field development studies complete Site acquisition complete Development approval granted EPC contracts in discussion Offtake agreements now being nego
Slide 18: Commercialisation Agenda - Lions Way Pipeline
Commercialisation Agenda - Lions Way Pipeline New high pressure gas pipeline to connect Metgasco gas fields in Northern NSW to customers in SE Qld 145km pipeline starting in Casino (NSW) and finishing in Ipswich (Qld) Environmental Assessment Studies lodged with DOP. Regulatory review process
Slide 19: Commercialisation Agenda - LNG Sector
Commercialisation Agenda - LNG Sector Eastern Australia Gas Demand Growth 2500 2000 10% pa demand growth PROJECTED LNG DEMAND for the next decade 1500 1000 PROJECTED DOMESTIC DEMAND 500 Source : McLennan and Magasanik Associates - 23 June 2010 Annual Gas Market Review 0 2010 2015 2020 2025 2030
Slide 20: Commercialisation Agenda - LNG Studies
Commercialisation Agenda - LNG Studies Metgasco gas resources should be sufficient for LNG scale participation or development Worley Parsons LNG Feasibility Study completed Demonstrated that standalone LNG developments at Gladstone, Brisbane and offshore NSW (FLNG) are economically attractive
Slide 21: Looking forward
Looking forward Heightened demand for gas Domestic customers currently seeking to lock in large gas volumes Gladstone LNG projects require additional gas to meet export commitments Potential for stand-alone LNG project Metgasco is one of three companies on the east coast with large, uncomm
Slide 22: Equity Raising - Details
Equity Raising - Details Metgasco to raise gross proceeds of approximately $21 million of new equity Placement of approximately $6 million to s708 investors Share Purchase Plan of approximately $15 million The offer price of A$0.26 represents: a 17.5% discount to last close; and a 18% di
Slide 23: Capital Raising - Source and Use of Funds
Capital Raising - Source and Use of Funds Source of Funds A$Million Use of Funds A$Million Opening Cash (31 Mar) 7.7 Conventional Gas Exploration 5.0 Local electricity and gas supply 12.0 Placement 6.0 • Local Gas Sales • Richmond Valley PS (6MW) • Production wells SPP 15.0 • Surface infrastructure