investor update presentation announcement 2 august 2010 … · 2010-08-02 · 2 august 2010 ....
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INVESTOR UPDATE PRESENTATION
ANNOUNCEMENT 2 AUGUST 2010
Coretrack Limited is pleased to release its latest Investor Update Presentation. CEO/Managing Director, Nanne van ‘t Riet, will be delivering this updated presentation at the Australian Microcap Investment Conference on Tuesday, 3 August 2010, in Melbourne, Victoria. For more information on the Australian Microcap Investment Conference please visit microcapconferences.com AUTHORISED BY:
Shannon Coates Company Secretary Coretrack Limited is an ASX listed company that provides technical solutions to the energy industry in the form of down hole tools, products and services. Since the company’s conception, Coretrack has focused primarily on building its highly anticipated integrated core tracking tool, the Core Level Recorder System (CLRS), and introducing the tool into the commercial market. The company has accelerated its operations and growth plan by acquiring one of Australia’s leading drill rig manufacturing/drilling services companies, Globe Drill Pty Ltd. The Globe Drill acquisition has brought together two world class companies, both at the forefront of producing superior products and services for the global energy sector.
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CORETRACK INVESTOR
2010 Australian Microcap Investment Conference
Presenting: Managing Director/ CEO Nanne van ‘t Riet
Core Level Recorder System (CLRS)
Globe Drill’s GT3000
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DISCLAIMER
The information contained in this presentation is current as at 27 July 2010 and is provided byCoretrack Limited (ABN 80 112 379 503) ("Coretrack") as a summary document for informationpurposes only.
Any forward looking statements included in this presentation involve subjective judgment and analysisand are subject to uncertainties risks and contingencies, many of which are outside the control of andmay be unknown to Coretrack at the time of preparing this presentation.
Actual future events may vary materially from the forward looking statements and the assumptions onwhich these statements are based. Recipients of this information are cautioned not to place unduereliance on such forward looking statements.
The information contained in this presentation is provided in good faith, however, Coretrack makes norepresentation or warranty as to the accuracy, reliability or completeness of the information. To theextent permitted by law, Coretrack and its officers, employees, related bodies corporate and agents,disclaim all liability, whether direct, indirect or consequential, and whether or not arising out of thenegligence, default or lack of care of Coretrack and/or any of its agents, for any loss or damage sufferedby a recipient or any other persons, arising out of or in connection with any use or reliance on thispresentation or information.
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Coretrack & Globe Drill…
Ready to revolutionise coring and drilling in the energy, water and
mineral sectors
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CONTENTS
Company Overview
CLRS - Status Update
GT3000 – Status Update
Benefits of Globe Drill Acquisition
Competitive Advantages
Anticipated Timeline
Conclusion
Financials
Progress since Acquisition
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CORETRACK WHO IS CORETRACK
CORETRACK OVERVIEW
Coretrack Limited
GT3000 (Globe Drill)
Energy- Geothermal Drilling
CLRS (Coretrack)
Oil and Gas Coring Tool
Stock Information
BOARD OF DIRECTORS
Nanne van ‘t Riet
MD/CEO BA, JurisDoctor, FAICD
- Extensive oil & gas background (Royal Dutch Shell Group, Qatar Petroleum)
Warren Strange Executive Director
GeneralManager Globe Drill
- 34 years of successful experience in the drilling industry
- Sold Strange Drilling for >$30M
Trevor Beazley Non-exec B.Bus (Acc) - Extensive public company director experience- Broking background and founder of Maiden Capital
Coretrack Limited (19 July 2010)
Stock Exchange Code
(AUS)CKK
Stock Exchange Code
(GER)KXT.BE
Date Listed31 August
2006
Listed Shares 125,395,711
Unlisted Options on
Issue14,100,000
Current Share Price $0.19
12 Month Low $0.13
12 Month High $0.36
* Information correct as of 19 July 2010*Table Sourced from:http://www.asx.com.au/asx/research/companyInfo.do?by=asxCode&allinfo=&asxCode=ckk
LAST THREE MONTHS:
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Real Figures:
Offshore rigs cost between $40,000 and $50, 000 per hour.
To “side track” an offshore well after milling core can cost millions.
It is estimated that the oil and gas industry spends $0.691 - $1.7 billion on coring every year.*
Lack of Real Time Data
• Core barrel jamming
• Formation milling
Geological Puzzle
• Cut length vs. Received length
CORING PROBLEM = CORETRACK’S OPPORTUNITY!
CLRS - STATUS UPDATE
*Source: Pegasus Securities Pty Ltd report ‘Coretrack (CKK)’ dated 28 April 2009
Problems:
WHAT IS CORING? WHY DO WE CORE?
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CORETRACK CLRS - STATUS UPDATE
To view animated demonstration of the Core level Recorder System please visit www.coretrack.com.au
Coretrack provides technical solutions to the oil and gas industry in the form of tangible tools/products. The current focus is on coring.
CLRS Animation - click to play
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END USER ADVANTAGES
Direct and substantial tangible benefits for the oil and gas industry:
Real time measurement whilst coring
Immediate identification of core milling
Immediate core jam notification
No stop losses due to information uncertainty
No need for expensive deviated wells to “re-do” jobs gone
wrong
Vastly improved core recovery data
Certainty in respect of core-to-reservoir correlation
Reduced exploration risk and reduced development risk
Substantial cost savings
CLRS - STATUS UPDATEF
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TESTING & INDUSTRY SUPPORT
Testing Partners: Aramco, Occidental, PDO, Apache
Other Assistance: Halliburton/DBS & Baker Hughes
Commerciality: Interest from parties such as Chevron, BHP, Woodside, ENI
Full System Run: Woodside/Halliburton mobilised the CLRS for full system run (16/7/2010)
Competitors: No other company provides a tool which collects and transmits core acquisition data in real time
CLRS - STATUS UPDATEF
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GLOBE DRILL COMPANY OVERVIEW
GT3000 – STATUS UPDATE
• Globe Drill was established by Mr. Warren Strange
• Globe Drill was part of the Strange Group of companies
• Warren Strange and Globe Drill have built 14 drill rigs (ultimately sold for in excess of $30m)
• Warren Strange has 34 years of successful experience in the drilling industry
• Proven track record in manufacturing
• Proven track record in management
• Proven track record in drilling operationsFor
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ACQUISITION INFORMATION – GLOBE DRILL:
• Completed February 2010
• Script Acquisition for 6,583,273 CKK shares @ 22cps ($1.448m)
• License agreement for IP agreed
• Underwritten Capital Raising of $10.06m by Cygnet Capital
GT3000 – STATUS UPDATEF
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ADVANTAGES OF ACQUISITION:
BENEFITS OF ACQUISITION
Revenue potential commencing in Q3 2010
Bolt-on complementary business acquired for asset price minimising investment risk
Superbly placed to take advantage of the growing energy market (including geothermal energy)
Significant upside for all shareholders due to advantageous acquisition terms
Current Kalgoorlie complex also has the versatility of building standard mineral rigs should the market demand this product
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THE GT3000 - ENERGY EXPLORATION AND PRODUCTION RIG
Outcomes :
Superior pull back force
Size and weight advantage
Heat resistant advantages
Considerable site footprint advantages
Superior fuel efficiency
Fewer operators required
Delivers superior profits at industry charge out rates
COMPETITIVE ADVANTAGESF
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GT 3000 RIG’S COMPETITIVE ADVANTAGES
Competing Models Globe Drill Competition Competition
Rig Type GT3000 Rig 1 Rig 2
Horsepower required: 500HP 1500HP 3,000HP
Pullback capacity 154 tonne 90 tonne 180 tonne
Fuel Efficiency (without auxiliary equipment) 50 litres/hour 200 litres/hour 400 litres/hour
Mobilisation (truck loads required for set-up) 5 loads 15 loads 75 loads
Site Footprint 1000 square metres 10,000 square metres 20,000 square metres
Staff Operating Requirements (per shift) ≈4 Personnel ≈15 Personnel ≈25 Personnel
Product Strategy
Temperature Resistance 60C 45C 45C
Average Production per 3km, 9inch hole 25 metres per hour 5 metres per hour 3 metres per hour
Availability 95 - 99% 75 - 85% 75 – 85%
Gross Profitability (operator) 60%-80% 15-35% 20-40%
Operator Maintainability High Poor Poor
Maintenance Service level20,000 hours between
major overhauls10,000 hours between
major overhauls12,000 hours between
major overhauls
Durability Average 25 years Average 8 years Average 12 years
Country of origin Australian Imported Imported
Current Minimum Availability 5 months 12 months 18 months
COMPETIVE ADVANTAGESF
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CORETRACK COMPETIVE ADVANTAGES
Globe Drill’s GT3000 animation can be viewed at www.coretrack.com.au
GT3000 Animation - click to play
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GT3000 CASHFLOW POTENTIAL PROJECTIONS DURING A 12 MONTH PERIOD:
• Cost to construct a GT3000 drill rig: $3,300,000
• Cost of auxiliary equipment and consumables: $6,000,000
• Annual rig revenue projection at 50% utilisation: $21,600,000
• Annual rig profitability projections at 50% utilisation: $14,600,000
• GT 3000 is expected to drill at least twice as fast as conventional rigs
• GT 3000 is expected to be in high demand due to its proposed size and time benefits
FINANCIALSF
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CORETRACK PROGRESS SINCE ACQUISITION
FEBRUARY – JUNE 2010
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CORETRACK PROGRESS SINCE ACQUISITIONF
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NEWS AND DATES TO KEEP AN EYE OUT FOR:
ANTICIPATED TIMEFRAME
GLOBE DRILLING EVENTS:
• Completion & “shake down” of GT3000: Q1 FY 2011
• First commercial well: Q1-2 FY 2011
CORETRACK EVENTS:
• Currently on track for full system run of CLRS with
Woodside/Halliburton
• European Listing (Berlin Stock Exchange)
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CONCLUSION:
CONCLUSION
CLRS: R&D completed
CLRS: commercialisation imminent
Globe Drill: Exciting new acquisition with enormous
potential for the geothermal and broader energy market
Coretrack Group: exciting, world class technologies with
huge potential
Join us: ASX Code: CKK
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THANK YOU
www.coretrack.com.au
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