For personal use only. DART ENERGY: A Glocal Company? Simon Potter, CEO

Transcription

1 DART ENERGY: A Glocal Company? Simon Potter, CEO

2 TO BE THE FIRST GLOBAL COAL SEAM GAS COMPANY TO BE THE FIRST GLOBAL COAL SEAM GAS COMPANY Resource rich Governments with massive unfulfilled energy markets are racing to create domestic CBM industries and need credible and reliable industry leaders to emerge This is The Time for CBM and unconventional gas companies with the right expertise, business model, portfolio and cost/funding structure will prosper Success in CBM will be driven by low-cost, local, commercially nimble and technically excellent operators, enhanced by access to global capabilities and skills. Dart is both local and global, and this is a unique value proposition Opportunity Competitive Advantage 2010: Foundations demerger from Arrow, grew the portfolio and team, reentered Australia via Apollo, entered UK/Europe, built business processes to underpin success 2011: Delivery of an extensive exploration programme and early-stage development / commercialisation strategies across the portfolio Performance 2012: Development phase and into production with the long-term objective of creating a series of self-sustaining regional Dart businesses. 2

3 CBM EXPERIENCE - VALUE TRACK RECORD BOARD AND MANAGEMENT Nathan Rayner Chief Operating Officer Peter Roles Chief Technical Officer Martin Cooper Chief Financial Officer Eytan Uliel Chief Commercial Officer Robbert de Weijer Australia MD COST, EFFICIENCY, TECHNOLOGY STRATEGY - MARKET AND PRICING Low cost, early entry in areas with significant resource potential Proximity to growth gas markets and infrastructure Leveraged by rapid reserves growth once pilot project proves concept Margins maximised: low-cost base - existing infrastructure; revenue upside pricing, fiscal terms Access multiple markets in multiple jurisdictions 3

4 DART ENERGY INTERNATIONAL PORTFOLIO ASSET SUMMARY PORTFOLIO TARGETS 38 CBM licenses in 7 different countries incorporating 17 discrete coal basins. 9 offices worldwide, 125 staff Australia, China, Indonesia, Vietnam, India, Scotland, England, Wales and Poland; business development pipeline both in-country and new geographies Gross CBM area (km 2 ) 38,000 Net CBM area (km 2 ) 29,000 Gross CBM OGIP (Tcf.) 32.7 Net CBM OGIP (Tcf) 17.8 Sizeable shale gas position in several European licenses SOUTH ASIA CHINA Target of 70 PJ per annum net production by 2015 Revised forward targets to end 2011, as follows: AUSTRALIA Sign-up 4 new licenses (including Composite) Appraise and execute 6 new pilot projects Negotiate and execute 2 new Gas Sales Agreements Sustained commercial production rates during 2011 in multiple jurisdictions in support of reserves growth Targeting 175/1,500 PJ of 2P/3P net reserves respectively by end 2011 Commence gas sales in 2012 or earlier EUROPE 4

5 KEY MILESTONES (12 MONTHS) 2011 Drilling Program commences 12 separate rigs in operation in 6 different countries Even split exploration / pilot appraisal Even spending distribution across China, Indonesia, India, Australia and European portfolio Exploration Drilling evaluation Commences in 14 licenses in 5 different countries Dajing exploration drilling begins Australia program commenced already Pilot / Appraisal Drilling 6 new programs in 4 different countries 2 already ongoing Development spend commences on Liulin and Sangatta $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 Mar 05 Dec 05 Nov 06 Sep 07 Jul 08 May 09 Mar 10 Arrow S&P/ASX200 Commercial Gas Sales Capital Raising Significant resources/reserves re-evaluation and upgrade 5

6 CORE CBM COMPETENCIES PROJECT MATURATION - PACE Exploration 2-3 yrs Appraisal 1-2 yrs ~10-20% Reserves Developed 20+ yrs Full Field Development 2-3 yrs Initial Development Dart focus s on key competency areas to support the different stages of the project life cycle: Ability to predict production Early selection of the optimal well design Focussed production monitoring Fit for purpose project management (cost efficiency) Effective external stakeholder management 6

7 KEY COMPETENCIES FOR CBM PROJECTS PROJECT, THUS COST, MANAGEMENT - SCALE Akin to managing mature fields Reduce capital costs Wells design, site infrastructure, surface facilities, pipelines (third party supplied?) Improve execution Planning and scheduling (reduce delays, fire fighting and re-work) Implementation (reduce lead times with seamless handoffs) Improve efficiency and quality Improve reliability of equipment and processes (reduce failures and rework) Systematic across whole business Networked Local solutions, shared globally Knowledge transfer Capital reallocation ($/well) (Mscf/d) Arrow Experience Like-for-like well costs year-on-year Average Peak Rate per Year Cost per unit yield efficiency increase 7

8 POTENTIAL SCALE DEVELOPMENT DAJING, CHINA PetroChina 51%, Dart Energy 49% 4,000 km 2, single seam 30 70m deep 14 core wells planned for Later wells could be converted to pilot wells (subject to partner approval).

9 POTENTIAL PACE DEVELOPMENT NEWCASTLE, AUSTRALIA Dart owns and operates 7 CBM blocks in NSW, Australia 23,000km 2 of strategically located acreage is close to markets and infrastructure Resources have already been independently certified in excess of 1.5 TCF 9% of NSW energy mix gas, 96% from out of state

10 DART ENERGY KNOWLEDGE TRANSFER CHINA SCOTLAND Liulin project, Ordos Basin, China Multiple thin, low permeability coal seams Existing wells Inseam cluster development 2 x inseam well, each with up to 8000m of total lateral length Up to 3 layers Up to 24,000m of inseam hole Drilled with multi-lateral surface-in-seam wells Slant wells provide the production conduit All operations on one drill pad Gas sales arrangement in place for CNG initially followed by connection to Chinese gas network PEDL 133 is located near Stirling, Scotland Multiple thin, low permeability coal seams Planned wells Drilled with multi-lateral surface-in-seam wells Vertical production wells are intersected at multiple levels close to coal seam entry Additional seams mean that between m of coal is accessed. Further laterals could add more Operations on 2 existing drill pads Local commercialisation options available through gas network and power generation 30m 1 drill Pad 2 drill Pads 10

11 DEVELOPMENT FUNNEL Indonesia HoA Australia UK: 14 th Round Shale Africa Poland: New Licences Europe licences Adaro I - V CIS CMM China Assam 2 Years Apollo 461 UK Shale Satpura Muralim Hanoi ONGC India Apollo 463 Apollo 458, 456 Tanjung Enim Access Drill Pilot Develop 11 FEEC Prospective 1 Year Dajing C 3P Sangatta West CMM India PEDL 133 2P Delivered or likely to be delivered Possibility of delivery Maturing Liulin TR India Now Gas Sales

12 EXPENDITURE BY REGION 12

13 SUCCESS FACTORS/CHALLENGES Control your destiny (or someone else might) Set strategy, avoid distractions. Manage alignment, distribute risks Partners, authorities, coal-miners, contractors, suppliers, opportunists Face reality as it is, not how you wish it was CBM is not a prestige industry, it is an immature, margin business akin to manufacturing Mindset: we are drilling water wells with gas as the by product no room for mid-cap culture Shortage of true experience and skills; invest in training; avoid glocalisation; scale matters Change before you have to Global does not mean big; retain a start-up mentality; maintain a unique offering Differential service pricing; Europe, USA, India, China, Indonesia, Australia extraordinary range Shale; downstream; local suppliers; CMM; multiple markets Don t compete unless you have a competitive advantage CBM will be exploited by low cost, commercially nimble, technically excellent operators applying appropriate technology Dart knows CBM, can spread risks, chase margins. Knows how to operate in target countries. Knows how to succeed 13

14 DIFFERENTIATED Management credibility and track record established Distinctive delivery since listing Mitigation of regulatory risk via portfolio and partnering Uniquely diversified portfolio proximal to infrastructure and booming energy markets offering immediate commercialisation opportunities Substantial options for margin growth Third party verification: Reserves reports, Shell, analyst coverage Portfolio delivers detailed, regular, news flow

15 DISCLAIMER AND IMPORTANT NOTICE This presentation contains forward-looking statements that are subject to risk factors associated with the gas and energy industry. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a range of variables outside the control of Dart Energy Limited and its Directors which could cause actual results or trends to differ materially, including but not limited to: price and currency fluctuations, geotechnical factors, drilling and production results, development progress, operating results, reserve estimates, legislative, fiscal and regulatory developments, economic and financial markets conditions in various countries, approvals and cost estimates. Therefore, undue reliance should not be placed on forward-looking statements. All references to dollars, cents or $ in this document are to Australian currency, unless otherwise stated. This presentation is not an offer or recommendation in relation to securities in Dart Energy Limited. It includes only a summary of select information and does not, and does not purport to, contain all information relevant to those securities. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Except to the extent required by law, Dart Energy Limited disclaims any obligation to correct, update or revise this presentation or oral communications associated with this presentation. The reserves and resource estimates used in this presentation were compiled by Dan Paul Smith and John Hattner of Netherland, Sewell & Associated, Inc., Dallas, and are consistent with the definitions of proved, probable, and possible hydrocarbon reserves that appear in the Australian Stock Exchange (ASX) Listing Rules. Mr. Smith and Mr Hattner are qualified in accordance with the requirements of ASX listing rule 5.11 and consents to the use of the resource and reserve figures in the form and context in which they appear in this presentation. Other resource information in this presentation has been compiled by Nathan Rayner who at the time of preparation was a fulltime employee of the Company. Mr Rayner is qualified in accordance with ASX listing rule 5.11 and has consented to the form and context in which they appear in this presentation. 15

16 KEY COMPETENCIES FOR CBM PROJECTS EFFECTIVE STAKEHOLDER MANAGEMENT Be transparent about our business... People are afraid of the unknowns explain our business in simple terms. Be open about risks and opportunities explain how these will be managed. Engage effectively: talk and listen... Listen to people s concern and try to address these together. Speak with one voice as a company and as an industry. Take the community seriously... Snr company reps to engage with the community. Meet on their land where possible. Deliver on commitments... Make genuine commitments to help address concerns and deliver on those. 16