Australian Securities Exchange - ASX - Investor Presentation For … · 2011. 9. 12. · Australian...

ASX Announcement Company Announcements Office Australian Securities Exchange By e-lodgement 13 September 2011 (ASX Code GRK)

Investor Presentation With the upcoming drilling of the Lawford #1 well in EP 417 the Canning Basin, Green Rock is conducting a significant roadshow in Perth, Sydney and Melbourne to brokers and fund managers. Please find attached the presentation to be given in this roadshow. Nigel Hodder Company Secretary Investors and Media: T: +61 (0) 9482 0482 E: [email protected]

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Investor Presentation

S t b 2011September 2011

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DISCLAIMER

Reliance should not be placed on the information or opinions contained in this presentation which does not take into account theparticular needs or financial situation of any particular investor

Green Rock Energy Limited has taken reasonable care in producing the text and images contained in this presentation but does notrepresent or warrant that the information contained herein is fair, correct, accurate, complete or up to date

This presentation does not constitute an offer, invitation or recommendation to subscribe for or purchase any security

The information on these slides is not intended to give investment or other advice to anyone

To the extent permitted by law Green Rock Energy Limited will not be responsible for any loss or damage (direct or indirect,consequential or otherwise) resulting from the use of information provided in this presentationconsequential or otherwise) resulting from the use of information provided in this presentation

Any mention in this presentation of geothermal resources in Australia also provides a reference to an ASX release containing therelevant resource assessment required under the Australian Geothermal Reporting Code including a competent person statement

Page 1 Investor Presentation ‐ 13 September 2011

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CORPORATE OVERVIEW

Green Rock Energy (ASX:GRK)

Ordinary Shares 676m

Listed Options (GRKO: 3 6c March 2013) 243m

Jeff Schneider, Non‐Executive Chairman•Over 35 years in the Australian energy industry including 24 years at Woodside culminating as Director – Australian Gas

Listed Options (GRKO: 3.6c March 2013) 243m

Unlisted Options 43m

Market capitalisation (@ 1.5c share) ~$10m

Cash at 30/6/2011 3.83m

EV $6

Richard Beresford, Managing Director•28 years commercial experience in development of natural gas and renewables including with BG, Woodside, China Light & Power

EV ~$6mAdrian Larking, Director of Operations

•Geologist and resource lawyer with over 30 years experience•Mineral and petroleum experience gained while working for Western Mining Corporation Ltd (now owned by BHP)

Source: GRK as at 9 September 2011

GRK 12 month share price

Dr Jörg Baumgärtner, Non‐Executive Director•Substantial drilling and development experience in a range of resources• Developed Landau and Insheim geothermal power projects in Rhine Valley

Top 5 Shareholders

Mahsor Holdings Pty Ltd <Rosham Family Super A/C> 43m 6.36%

Deck Chair Holdings Pty Ltd 25m 3.78%

Nutsville Pty Ltd <Indust Electric S/F> 17m 2.58%

PKA Investments Pty Ltd <Larks Super Fund> 16m 2.41%

Source: ASX as at 9 September 2011


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Craig Burton & Katrina Burton <Burton Super Fund> 13m 2.00%

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PORTFOLIO

Green Rock Energy Limited(ASX:GRK)

Hydrocarbons Geothermal

EP 417 AMI Pacific Hydro Alliance MOL Joint Venture

Earning 15% interest 50% Joint Venture

Seven Lakes SPA Mid West ProjectGreat Artesian Basin

Project

Multi prospect

Estimated 2250BCFGIP

Potential to earn 40% interest on new permit

7 Permits ~2100km2

Hot Sedimentary

11 wholly owned Permits

Well successfully tested and acquired

Adjacent to EP 417Hot Sedimentary Aquifers

Inferred geothermal resource 1million Petajoules

Hot Sedimentary Aquifers

Investor Presentation ‐ 13 September 2011Page 3

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GREEN ROCK STRATEGY

Green Rock is an energy exploration and development company bringing world‐class experience to the commercialisation of emerging energy resources

Geothermal – focusing on lower risk resources close to infrastructure

Hydrocarbons – focusing on unconventional hydrocarbons with large volume potential

Si il t h i d t t t d ti Similar techniques used to target productive zones

Similar capabilities needed to get product to market

Id tif A D l C t t O tIdentify Assess Develop Construct Operate

GRK L d R l J i t V t GRK E it Mi it I t tGRK Lead Role Joint Venture GRK Exit or Minority Interest


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HYDROCARBONS – THE OPPORTUNITY

WA landscape changing fast with new focus on unconventional gas to meet rapidly growing demand

Canning Basin

demand

Canning Basin is a known but underexplored petroleum system:

‐Multiple unconventional plays–shale gas tight gas & oil‐Multiple unconventional plays shale gas, tight gas & oil

‐Known gas in unconventional targets seen in conventional drilling

EIA confirmation of significant shale gas potential g g pfor Canning Basin – April 2011

Greater extensive exploration potential than conventional targets

EP 417 and Seven Lakes SPA1

Remote and arid area with history of oil & gas activity

Opportunity for Green Rock to develop a EP 417 and Seven Lakes SPA indicative location only.Source: EIA and Cygnet Capital estimates

substantial business with near‐term drilling


Source: EIA and Cygnet Capital estimatesFor

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EP 417 FARM‐IN

EP417 (NSE 65% BRU 35%) 3150 km2 in Fitzroy Trough

Green Rock right to earn 15% in EP417 from NSE by funding 27.5% of first $4m of costs of deepening Lawford #1 and 15% of any further well costsany further well costs

Green Rock right to increase interest in EP417 to 20% by funding 22.5% of the first $10m costs of drilling a second well$10m costs of drilling a second well (expected in 2012) and 20% of any further well costs

In addition Green Rock executed an Area of Mutual Interest agreement with NSE for gFitzroy Trough which gives Green Rock the right to earn 40% of new permit areas, including any permit resulting from the Seven Lakes SPA awarded to NSE in July 2011


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LAUREL SHALE / TIGHT SANDS PROJECT

Lawford ‐1 well suspended in 2008 above Anderson (tight sands) and Laurel (shales/tight sands)

Lawford ‐1 to be deepened in September – early October

Primary target is the Laurel sands and shales

Secondary target is the Anderson formation

NSE estimates >850BCFGIP potential for Lawford ‐1

In addition to Lawford ‐1, numerous large Laurel formation structures exist on EP417 and the Seven Lakes SPA for future shale

d ti ht l ti

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gas and tight gas exploration

Investor Presentation ‐ 13 September 2011

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LAWFORD ‐1 CROSS SECTION

SESECTION ACROSS EP 417


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REGIONAL SUCCESS St. George Range‐1 (1966), White Hills‐1 (1982) and Bindi‐1 (1984) all had hydrocarbon shows from the Laurel

Y ll 1&2 BRU t d “fl d t f Yulleroo‐1&2: BRU reported “flowed gas to surface from tight gas sands”

Valhalla‐2: BRU reported “good to excellent gas shows from the lower Laurel gas sands” and g“extensive shale zones identified and interpreted to be gas charged”

GRK INTEREST – EP417 & SPA


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GEOTHERMAL – FOCUS ON HSA

Hot Dry Rocks Hot Sedimentary Aquifer (HSA)

Need to create Use natural underground heat exchanger

Drilling through sediments into granite

l ll d i

underground reservoirs

Drilling into sediments

i l ll d i Complex well design

Potentially high water requirement

Potential over pressuring

Simpler well design

Water present in known aquifers

Normal pressuresover‐pressuring

Special materials and equipment

Higher temperatures, but high flow rate

pressures

Normal materials and equipment

Lower temperatures, but lower flow ratebut high flow rate

risk Operating at

demonstration scale (Soultz)

but lower flow rate risk

~250MW operating globally (US, Europe, Australia)Australia)


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MID WEST GEOTHERMAL POWER PROJECT

Substantial MW potential close to rapidly growing Mid West markets (magnetite developments etc) and infrastructure

Green Rock holds 7 Permits covering 2100km2

Targeting naturally permeable HSA in known hot spots close to local power network

Inferred Geothermal Resource report by HDRPL indicates huge potential (over 1 million PJt ‐ refer ASX release of 28/10/2010)ASX release of 28/10/2010)

Through Alliance with Pacific Hydro we aim to secure upstream partner(s) by early 2012

Planning for first well late‐2012 Planning for first well late 2012

Strong contender for government funding towards first 2 wells


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PACIFIC HYDRO – GREEN ROCK ALLIANCEGreat Artesian Basin LicensesPacific Hydro is the leading Australian renewable

power developer with a capital value of assets over $1bn and interests in wind, hydro, large‐scale solar PV and geothermaland geothermal

The Alliance Covers Green Rock permits in Mid West (WA) and Green Rock & Pacific Hydro licences in Great Artesian Basin (SA) and brings together Green RockArtesian Basin (SA) and brings together Green Rock geothermal and Pacific Hydro power generation expertise

Target initial 25‐50MW leading to hundreds MW in g gboth areas

Jointly developing IM to attract upstream partner(s) to fund drilling in one or both areas

Mutual farm‐in right for 5% free‐carried interest when upstream partner commits

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Pacific Hydro right to 51% of power project – GRK sell down or sell out at pre‐agreed value

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MOL – JOINT VENTURE (HUNGARY) MOL is listed on the Budapest Stock

Exchange and is Hungary’s largest company (market capitalisation ~US$9bn

B d b d JV CEGE (50%

Why we are in Hungary:• Over 5000 petroleum wells have been drilled in Hungary, many finding hot waterG th l th t lik l bl t t H ’ EU Budapest‐based JV company CEGE (50%

Green Rock / 50% MOL)

First commercial project identified

• Geothermal the most likely renewable to meet Hungary’s EU target (20% by 2012)• Potential for Government grants and attractive feed‐in tariffs

Former MOL petroleum well tested and acquired

Securing concesssion(s) anticipated by March 2012

Second well by end 2012 and initial electricity production targeted early 2014

Government funding support possible for g pp pfirst project

Green Rock seeking to fund its interest from European investors once concession(s) secured


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UPCOMING EVENTS

Sept 2011: Drilling of the Lawford‐1 well in the Canning Basin. Estimated target of 380 bcf GIP (Tight Gas) and >470 bcf GIP (Shale G )Gas)

Sept –Nov 2011: Selection of geothermal drilling target in the Mid West

Oct ‐ Nov 2011: Testing and analysis of Lawford‐1 well core

Oct ‐Mar 2012: Hungary project concession application process and evaluation.Concession allocation anticipated in March 2012

Dec 2011: Decision on drilling of the potential Lawford‐2 well in the Canning BasinCanning Basin

Nov ‐ Dec 2011: Secure rig for 2012 geothermal drilling in the Mid West

GRK currently provides low cost exposure to high quality hydrocarbon and geothermal projects with substantial upside potential


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Australian Securities Exchange - ASX - Investor Presentation For … · 2011. 9. 12. · Australian...

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