Agenda Equity raising overview Drillsearch overview Forward program discussion 2
Introduction Drillsearch is conducting a 48 million capital raising comprising: 1. 15 million unconditional placement; 2. 16 million conditional placement; and 3. 17 million non-renounceable entitlement offer Funds raised will be…
Placement Overview 15 million unconditional placement Offer 29.4 million shares, 14% of issued capital Size 16 million conditional placement (subject to shareholder approval) 31.4 million shares, 15% of issued capital Fixed offer…
Entitlement Offer Overview 3 for 20 non-renounceable entitlement issue to raise 17 million Offer Size 35.5 million shares Fully underwritten Fixed offer price of 0.48 per share 17.9% discount to last close of 0.585 (11 May 2011)…
Sources and Uses of Funds Sources of funds (Am) Uses of funds (Am) Opening cash balance PEL 91 oil exploration and 8.5 22.6 (31 March 2011) development Unconditional Placement 1 15.0 Inland-Cook Oil exploration 5.0 Conditional…
Indicative timetable 1 Timetable Trading halt and bookbuild undertaken Thurs 12 Fri 13 May Capital raising announced to ASX Mon 16 May Drillsearch shares recommence trading Notice of EGM and explanatory memorandum Tues 17 May…
Risk highlights An investment in Drillsearch has risks attached to it and neither Drillsearch or its Directors, management and any related entities, nor any party associated with the preparation of this presentation, is able to guarantee…
Agenda Equity raising overview Drillsearch overview Forward program discussion 9
Investment Proposition Create shareholder value by the successful exploration and development of our highly prospective Cooper-Eromanga Basin assets Through a focused approach to investing both financial and technical resources Leading…
What Makes Us Unique Drillsearch is the only listed company with a sole geographic focus on the Cooper- Eromanga Basin Drillsearch believes it represents an attractive mix of: 1. Existing oil production 2. Significant wet gas…
Financial Snapshot Key Data Share Price (11/5/11) 0.585 Shares on Issue 207M Market Cap 121M 52 Week High 0.79 52 Week Low 0.50 Average Daily Trading Volumes 230K Cash (31/03/11) 8.5M FY 2010 Production Revenue 9.6M…
Reserves & Resources Growth Drillsearch Conventional Reserves A significant uplift of 887% in 2P gas and liquids Reserves to 8.49MMboe 887% 2P gas and liquids Reserves growth 2P liquids Reserves increased by 363% to 3.98MMboe…
Comparison to Peers of Enterprise Value to 2P Reserves Source: Wilson HTM Corporate Finance Ltd May 2011 14
Three Pathways to Success Unconventional Wet Gas Oil Short, medium and long-term growth opportunities 15
Agenda Equity raising overview Drillsearch overview Forward program discussion 16
Geographical Footprint Oil Key Data Production 330 BOPD Reserves (2P) 0.86MMbbls Contingent 0.28MMbbls Resources (2C) Unrisked Prospective Western Flank = 16.0 MMbbls Resources (Best) Inland Fairway = 43.3 MMbbls PEL 91…
PEL 91 exploration and development Highlights Stage 1 2011 Drill 5 exploration wells and develop successful discoveries Acquire Aquillus 3D seismic Targeting initial production Dec 2011 Stage 2 2012 Drilling program based on…
Oil Exploration Inland Cook Oil Fairway Highlights Shoot 2D seismic to infill existing 2D grid Acquire 200km2 3D seismic grids over highlighted area (see map). Lead areas to define drillable prospects Q2 Q3 Q4 Q1 Q2 Key…
Geographical Footprint Wet Gas Key Data Production Nil Reserves (2P) 7.63MMboe Contingent 3.37MMboe Resources (2C) Unrisked Prospective 41.0 MMboe Resources (Best) PEL 91 60% BPT (O) 40% PEL 106A 100% PEL 106B 50% BPT…
Wet Gas Pilot Project PEL 106B Highlights Target production rate of 15-25mmcf/d (gross) raw gas including liquids from Oct 2011 Average liquids content 30-40boe per mmcf raw gas Proposed initial pilot project to connect PEL 106B wet…
Wet Gas Development and Exploration PEL 106A and PEL 107 Highlights PEL 106A Finalise commercial arrangement and convert Contingent Resources to Reserves Planning reinstatement of wet gas deliveries from a side track of the Smegsy-1…
Geographical Footprint Unconventional Key Data Production Nil Reserves (2P) Nil Contingent Nil Resources (2C) Unrisked Prospective Deep CSG = 8-17 TCF Resources (Best) Shale Gas = under evaluation PEL 106A 100% PEL 106B…
Unconventional Exploration Western Cooper Unconventional Core and analyse gassy coals in 8 conventional wet gas wells 12 pilot production areas to be high graded based on wet gas coring testing program Central Cooper…
Projected Near Term News Flow Completed 5 May 2011 Gas May 2011 Gas - Q2 2011 Oil Q3 2011 UNC - Q3 2011 Targeted Wet Gas Wet Gas production Commence acquisition of Possible coring program Reserves Upgrade licence grant and field…
2011 Excellent Prospects and High Activity Oil Wet Gas Unconventional 5 well drilling program Initial development of PEL Secure material position targeting gross prospects 106B discoveries in Cooper Shale Gas ranging from 430,000…
Appendix Slides 27
Our Board & Management Jim McKerlie Chairman Jim is a Chartered Accountant with extensive experience as a Director and Chairman of private and public companies. John Whaley Chief Strategy & Brad Lingo Managing Director Development…
A Balanced Portfolio Reservoir Eng Explore Appraise / 3D Seismic Production + G&G Work Wells Develop ATP 299P - Tintaburra ATP 299P - Tintaburra ATP 299P - Tintaburra ATP 539P ATP 539P ATP 539P Oil ATP 549P ATP 549P ATP 549P…
Reserves and Contingent Resources Drillsearch Reserves & Contingent Resources FYE 2010 4 May 2011 Total Gas & Liquids Liquids Only Gas & Liquids Liquids Only Gas & Liquids 2P Reserves MMboe MMbbls MMboe MMbbls Reserve Increase…
Financial Performance Half Year Comparatives HY Dec 2010 HY Dec 2009 Change Gross m m % Revenue from Operations 8.9 2.9 203% Net loss (5.3) (10.5) (44)% Net cash flow from operating activities 3.3 (2.6) 227% Cash balance 9.1…
EGM Resolutions 1 APPROVAL OF THE ISSUE OF SHARES UNDER THE CONDITIONAL PLACEMENT 2 APPROVAL TO REFRESH THE COMPANY's 15% PLACEMENT CAPACITY 3 APPROVAL OF THE LONG TERM INCENTIVE PLAN 2011 FOR THE PURPOSES OF ASX LISTING RULE…
Proposed ESOP Grant to Directors Options proposed to be granted to directors under the Long Term Incentive Plan 2011 (subject to approval): Jim McKerlie (Chairman) 342,742 Brad Lingo (Managing Director) 342,742 Ross Wecker…
Risks Introduction An investment in Drillsearch has risks attached to it and neither Drillsearch or its Directors, management and any related entities, nor any party associated with the preparation of this presentation, is able to…
Risks relating to Drillsearch's operations (cont.) Operational Industry operating risks include fire, explosions, blow outs, pipe failures, abnormally pressured formations and environmental hazards such as accidental spills or leakage of…
Risks relating to Drillsearch's operations (cont.) Environmental Oil and gas exploration, development and production can be potentially environmentally hazardous giving rise to substantial costs for environmental rehabilitation, damage…
Risks relating to Drillsearch's operations (cont.) Government actions Drillsearch will require government regulatory approvals for its operations. The impact of actions, including delays and inactions, by governments may affect…
Risks relating to Drillsearch's operations (cont.) Joint Ventures Drillsearch will have, and may become a party to joint venture or joint operating agreements for the blocks in which it holds interests. Under these agreements,…
Risks relating to Drillsearch's operations (cont.) Litigation Drillsearch may be exposed to potential legal and other claims or disputes in the future which could negatively impact Drillsearch's financial performance through damages…
International Offer Restrictions Malaysia No approval from the Malaysian Securities Commission (SC) has been applied for or will be obtained for the offer for subscription or purchase or invitation to subscribe for or purchase the Offer…
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