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SKY METALS LIMITED AGM Information 2015
65807_rns_2015-05-19_b3eeb2f9-f2fd-421f-8368-1243cf43d90f.pdf
AGM Information
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20 May 2015
The Manager Companies ASX Limited 20 Bridge Street SYDNEY NSW 2000 (16 pages by email)
Dear Madam
PRESENTATION TO THE ANNUAL GENERAL MEETING
Attach is a PowerPoint presentation which is to be delivered to the shareholders present at today's Annual General Meeting which is convened to be held at 11.00 am.
For further information, please contact Norman Seckold, Anthony McClure or Peter Nightingale on (61-2) 9300 3322.
Yours sincerely
Marcelo Mora Company Secretary
pjn8106
Planet Gas Limited ABN 46 098 952 035
Level 2, 66 Hunter Street Sydney NSW 2000 Australia T +61 2 9300 3322 F +61 2 9221 6333
Annual General Meeting 20May 2015
Disclaimer
This presentation may contain forward looking statements which involve subjective judgment and analysis and are subject to significant uncertainties, risks and contingencies including those risk factors associated with the oil and gas industry, many of which are outside the control of and may be unknown to Planet Gas Limited (ACN 098 952 035).
No representation, warranty or assurance, express or implied, is given or made in relation to any forward looking statement. In particular, no representation, warranty or assumption, express or implied, is given in relation to any underlying assumption or that any forward looking statement will be achieved. Actual and future events may vary materially from the forward looking statements and the assumptions on which the forward looking statements were based.
Given these uncertainties, readers are cautioned not to place undue reliance on such forward looking statements, and should rely on their own independent enquiries, investigations and advice regarding information contained in this presentation. Any reliance by a reader on the information contained in this presentation is wholly at the readers own risk.
Planet Gas Limited and its related bodies corporate and affiliates and their respective directors, partners, employees, agents and advisors disclaim any liability for any direct, indirect or consequential loss or damages suffered by a person or persons as a result of relying on any statement in, or omission from, this presentation. Subject to any continuing obligations under applicable law or any relevant listing rules of the Australian Securities Exchange, Planet Gas Limited disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statements in this presentation to reflect any change in expectations in relation to any forward looking statements or any such change inevents, conditions or circumstances on which any such statements were based.
Company Snapshot
- • Australia Cooper Basin
- • Origin Energy/Senex Energy exploration JV for gas exploration
- Up to $80 million expenditure for Stages 1 and 2
- Planet Gas free carried
- • Oil exploration JV with Senex Planet Gas free carried
3
2014onwards
| bF2014eraruy | kfhdLiOiiEttanmargasarm‐orgnnerguwy |
|---|---|
| lAi2014pr | llllddSi1iitttprggexporaonweesngconcue‐ |
| J2014une | 2dklDi3D164iitunnnamsesmcprocesscompee |
| A2014tugus | lfliiiIUSARtttttnaagreemenoroyayransacon |
| bS2014tepemer | hllllddi‐iH1ttaexporaonweconcue |
| bO2014tcoer | hllllddiBE1ttageeraasexporaonweconcue‐ |
| b201N4ovemer | ()'sdl118128i1PRLPEL54tgraneprevousy‐ |
| b201F5eruary | lldUSAiRttttoyayransaconcompee |
| hM2015arc | 2hkldJ3D150iiiiitttonoonmsesmcacqsonprogramcompeeu |
| hM2015arc | 2dkdMi3D99iirangemsesmcprogramcommenceu |
Cooper Basin
- • 1,972 km2 of the Cooper Basin, South Australia
- • WithinPatchawarra Trough
- • WesternFlank Oil Fairway and
- • Unconventional GasFairway
- •Tight Gas Sand
- • Permiansystem, Patchawarra Trough
- • Farm‐out toOrigin Energy
- • Planet Gas 12.5% free carried (may reduce to 10.0%)
- •Conventional Oil
- • Newand historical oil prospects
- • Birkhead Jurassicoil
- • Planet Gas 20%free carried by Senex
- • Alsotargets in deep coals and shale
Origin/Senex Joint Venture ‐ Gas
PEL 638"Deeps" (Planet Gas 12.5% may reduce to 10.0%)
- • Landmark gas farm‐out agreement between Origin Energy and Senex updated June 2014
- • Targeting tight gas sands with exposure to gas in shales and coal in the Permian("Deeps")
- •Origin Energy earning up to 45% from Senex Energy and Planet Gas
- • Work program expenditure of up to $80 million spread equally across Stages 1 and2
- • Planet Gas free carriedfor Stages 1 and 2
- • Possibleadditional expenditure of up to $67 million by the joint venture
Origin/Senex Joint Venture ‐ Gas
Origin/Senex Joint Venture ‐ Gas
- • Origin Joint Venture solely in PEL 638 "Deeps"
- • Over 904km2
- • Oil JV with Senex remains in place for "Shallows" and"Remainder" area
Senex JointVenture ‐ Oil
PRL's 118through PRL128 and PEL 638 Shallows (20% PGS : 80% Senex)
INITIAL FARM‐IN ‐ COMMENCEDMAY 2012
- • 159km2 3DCordillo seismic program
- • Twowells program
SECONDAGREEMENT ‐ MAY 2013
- •$5 million cash to Planet Gas
- • Free‐carried for Planet's 20%share
- •Principal target is oil in Jurassic Birkhead channel sands
- • Planet Gas also to receive;
- • a 2%well head royalty on oil capped at $7.5 million
- •$10 million in 2P reserve bonus ($5 million @ 8 Mmbbls oil, $5 million @ an additional 4 Mmbbls oil)
Senex JointVenture ‐ Oil
| Oil | (O) Planet Ga |
|---|---|
| $\sim$ $\sim$ $\sim$ $\sim$ $\sim$ $\sim$ $\sim$ $\sim$ |
| didEtttpenresoaexu | ()dhM2015toenarc |
|---|---|
| ()liiFFttrsarmncompee‐ | $*211m |
| diSFeconarmn‐ | $*141m |
*Planet Gas interest free carried
2014PROGRAM
- • Dundinna 3Dseismic surveys 164 km2
- • 2wells
- • Second farm‐in expenditure program 31% complete (as at end April 2014)
Senex JointVenture ‐ Oil
| O Planet Gas Limited | |
|---|---|
| ----------------------------- | -- |
| llilldWDesre | hDtep()tmeres | ibjiPOtrmaryecve |
|---|---|---|
| Pii2trramna‐ | 1,771 | MFturam |
| Si‐1prgg | 2,407 | hiTFncoom |
| hi‐H1ta | 2,568 | hiTFnoomc |
| hBE1t‐ageeraas | 2,547 | hTiFncoom |
- • Each well plugged and abandoned with nosignificant hydrocarbons intersected
- • Hathi‐1 and Bagheera East‐1 show hydrocarbon migration beyond previous knownlimits
- • Next step is AVO (Amplitude Versus Offset) and inversion processes to the Dundinna 3D seismic survey to identify stratigraphic traps (subject to JV approval)
USAOil and Gas Royalties
- • Royalty transaction complete with Macquarie Bank in February 2015
- • 3.0% Overriding Royalty Interest ("ORRI") over establishing oil and gas assets in Kansas, Pennsylvania and New York States
- • Assets produce ~500,000 barrels of oil equivalent per annum
- • ~60%oil by revenue
- • Purchasewas US$4.45m
- • 5 year US$15m facility in place for further acquisition (US$3.2m drawn as part of the aboveacquisition)
- • Potential acquisitions include low risk oil and gas royalties and other oil and gas cashflow assets
Global Prices
- • West Texas Intermediate bottomed out at US$44 per barrel in January and March 2015
- • Nowat ~US$60 per barrel
- • Consensus forecasts show consolidating pricing over next two years to over US$75 per barrel
• US gas prices have had a moderate bounce increasing from US$2.50 to US$2.85MMBtu
Looking Forward
- • Gas exploration programs under Joint Venture with Origin Energy and Senex Energy
- • "Jonothon" and "Mudrangie" 3D seismic programs data acquisition complete processing and interpretation pending
- • Bothseismic programs for next generation gas drilling programs
- • Twogas wells to be completed by end FY16
- •Oil exploration back to planning states with AVO work (subject to JV approval)
- • Active newproject generation program continues (oil and gas)
- • Target projects include low risk cashflow/royalty streams and acquisitions for farm‐out
Planet Gas LimitedLevel 2, 66 Hunter Street, Sydney NSW 2000 Australia
www.planetgas.com
Anthony McClure
T: +61 2 9300 3322 F: +612 9221 6333
