chairman’s address to agm for personal use only · 1/29/2014 · neither rdt, or any of its...
TRANSCRIPT
January 29, 2014
CHAIRMAN’S ADDRESS TO AGM Dear Shareholders, It is with both pride, and a degree of corporate self-interest, that I ask you today to reflect upon what Rampart has achieved since its last AGM. In short we have:
Undertaken a strategic review resulting in the withdrawal from the geothermal sector.
Recapitalised the Company and refocused on oil and gas projects.
Converted to an Australian jurisdictional based company, removing all residual Canadian administrative restrictions and complications.
Identified, and become a potentially significant participant in, a major unconventional and conventional petroleum play in Alaska, certainly the most significant emerging unconventional fairway in the United States. Our net exposure could reach over 42,000 acres following completion of the farmin executed with Royale Energy Inc.
Importantly, we are very close to finalising an ACES based credit facility which will cover a significant portion of our North Slope exploration costs.
We have, through the support of DJ Carmichael’s, raised over $11 million by way of share placements and conversion of options.
Via this funding we have instigated and are funding, as part of our farmin, an US$8 million 3D seismic program in the Western Block, immediately adjacent to concessions held by Respol and Conoco Phillips and adjacent to the Moose Tooth Oil Field.
These milestones have been achieved with a company having a full time staff of 1, assisted with a small number of very motivated contractors and consultants. This has been achieved by a company, in the period since the last AGM, having a maximum market capitalization of no more than circa AUD$15 million. The past year’s efforts will now allow Rampart to open the door to this year’s opportunities. • Detailed identification of both conventional and unconventional targets following completion of the 3D. • Selection of two sites for drilling, as part of the Royale Farmin agreement. • Reassessment of the resource potential following completion of the 3D seismic. • Potential to farmout on the basis of this newly defined target inventory. There can be few, if any, other micro-cap companies on the ASX which can present such a glowing annual report card to shareholders.
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January 29, 2014
CHAIRMAN’S ADDRESS TO AGM
Rampart’s results portray the incredible enthusiasm and diligence of our Managing Director Torey Marshall, of the Board, our small band of contractors, and consultants including the unswerving support of DJ Carmichaels. Typically each of these milestones has involved the surmounting of considerable challenges. Challenges will no-doubt continue unabated this year. Rampart has grown under these challenges and will continue to do so. However, and in saying that, by far our biggest and most persistent challenge is the market realising that “this too good to be true” story is indeed true, is credible, and is being accomplished by a company with the market capitalisation the size of Rampart’s. I contend that there can be no stronger indicator of our credibility, and of the future potential of the Company, than what has been achieved in this past year. I thank you for attending this meeting and trust that you will stay following the formalities to hear a short presentation from Torey Marshall on what will unfold in the coming months.
Yours Faithfully, Dr. Raymond D. Shaw, Chairman of the Board
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Shareholder Presentation AGM – January 2014
Rampart Energy Limited
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Welcome to Rampart Energy
This presentation may contain certain statements and projections provided by or on behalf of Rampart Energy Ltd (RTD) with respect to the anticipated futureundertakings. These forward-looking statements reflect various assumptions by or on behalf of RTD. Accordingly, these statements are subject to significantbusiness, economic and competitive uncertainties and contingencies associated with exploration and/or mining which may be beyond the control of RTD whichcould cause actual results or trends to differ materially, including but not limited to price fluctuations, exploration results, ore reserve and resource estimation,environmental risks, physical risks, legislative and regulatory changes, political risks, project delay or advancement, ability to meet additional funding requirements,factors relating to title to properties, native title and aboriginal heritage issues, dependence on key personnel, share price volatility, approvals and cost estimates.Consequently, there can be no assurance that such statements and projections will be realised. Neither RDT, or any of its affiliates, advisers, consultants, agents orany of their respective officers or employees (Relevant Parties) make any representations as to the accuracy or completeness of any such statement of projectionsor that any forecasts will be achieved.Additionally, RTD makes no representation or warranty, express or implied, in relation to, and to the fullest extent permitted by law, no responsibility or liability(whether for negligence, under statute or otherwise) is or will be accepted by RTD as to or in relation to the accuracy or completeness of the information,statements, opinions or matters (express or implied) arising out of, contained in or derived from this Presentation or any omission from this Presentation or of anyother written or oral information or opinions provided now or in the future to any Recipient or its advisers. In furnishing this presentation, RTD undertakes noobligation to provide any additional or updated information whether as a result of new information, future events or results or otherwise. Nothing in this materialshould be construed as either an offer to sell or a solicitation of an offer to buy or sell securities.
Information in this report relating to hydrocarbon reserves or resources has been reviewed and checked by Mr C. Ashley Smith Vice President and PetroleumEngineer and Shane Howell Vice President and Petroleum Geologist, of Netherland Sewell & Associates who combined have over 30 years of experience inpetroleum engineering and geology and are members of the Society of Petroleum Engineers and AAPG. Messrs Smith and Howell (pending) to the inclusion of theinformation in this report relating to hydrocarbon reserves and resources in the form and context in which it appears. Resource estimates contained in this reportare in accordance with the standard definitions set out by the Society of Petroleum Engineers, Petroleum Resources Management System, 2007. This document mayinclude forward-looking statements. Forward-looking statements include, but are not necessarily limited to, statements concerning Rampart Energy Ltd’s plannedexploration program and other statements that are not historic facts. When used in this document, the words such as “could”, “plan”, “estimate” “expect”, “intend”,“may”, “potential”, “should” and similar expressions are forward-looking statements. Although Netherland Sewell & Associates believes that its expectationsreflected in these are reasonable, such statements involve risks and uncertainties, and no assurance can be given that actual results will be consistent with theseforward-looking statements.
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Rampart Energy Year In Review
Since the last AGM the Company has :
• Recapitalised, rebranded, relaunched with world class project in North Slope of Alaska
• Completed Transition to become Australian Company;
• Identified and became a player in the most significant emerging unconventional
fairway in the US with net exposure potentially exceeding 42,000 acres.
• Completed circa A$10m in equity raisings in support of the main project and close to
finalising a significant ACES based credit facility to be used for further exploration;
• First on ground activity underway – 3D Seismic;
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Rampart Energy Year In Review
• These milestones have been achieved with a company having a full time staff of 1, assisted with a small number of very motivated contractors and consultants.
• This has been achieved by a company, in the period since the last AGM, having a maximum market capitalization of no more than circa AUD$15 million.
This year’s opportunities will include.
• Detailed identification of both conventional and unconventional targets following completion of the 3D.
• Selection of two sites for drilling as part of the Royale Farmin agreement.
• Reassessment of the resource potential following completion of the 3D seismic.
• Potential to farmout on the basis of this newly defined target inventory.
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Rampart Energy Year In Review
• The Challenges have been met and will continue to be met
• Our biggest challenge is for the market to realise that this “too good to be true” story is
in fact true, is credible and is being accomplished.
*******
Thank you for attending and I invite you to remain after the formalities for an
address by our MD, Torey Marshall, on our exciting next chapter.
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3D seismic Survey
• SA Exploration has been awarded the contract;
• Constructing Ice Roads and Ice Pads;
• Layout finished by February 1;
• 25-30 Day Shoot;
Commences February of 2014
• Essential tool in de risking the drilling, and of particular note will be any conventional prospectivity similar to Meltwater/Moose’s Tooth fields;
• Data processed and Interpreted Q2 2014For
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Next Farmin Stage – 3D seismic commences
• 3D seismic to provide detailed prospect and lead inventory;
• Adjacent conventional fields have good seismic signature;
• Essential tool in de risking the drilling and selecting dual targets;
• Seismic data processed and Interpreted Q2 2014.
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Seismic targets for conventional plays F
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• Includes major players, robust basin activity and limited
acreage availability ensuring competitive interloper
tension.
• Alaskan Government extremely industry pro-active,
ensuring to see maximum infrastructure usage
• Well established industry skills base, stakeholder and
access protocols.
• Well costs comparable to unconventional in Australia, BUT
with huge conventional potential AND the 85% rebate
North Alaskan Slope – the Attraction F
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Big Activity, Big Results for 2014 Winter SeasonF
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Rampart Farmin – On budget and on Schedule
2013 2014
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Project/Activity J F M A M J J A S O N D J F M A M J J A S O N D
Project acquisition
Options underwriting
Seismic prep
Seismic Acq
Seismic Interp
Drilling Prep
Drilling
Geoscientific review
Corporate/Farmout
External results
Note: The above dates and t imeing are indicat ive only and may change without not ice.
• 3D Seismic promote cost capped at US$8m due in multiple payments through early 2014;
• Option to pay US$1.71m by June 30 2014 to earn final interest in central block;
• Drill two wells during first half of 2015 US$30m (average cost per well net to RTD US$10m-US$15m
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Mr. Torey MarshallManaging Director+61 8 8223 1681
ASX : RTD
Contacts
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Transaction Summary
• Agreement to earn up to 42,350 net acres in the prolific North Slope of Alaska across two
contiguous blocks
• To earn an initial 10% working interest in the Western Block
– Pay US$3.4m in two tranches ($100 per gross acre), half by June 3 2013 and half by December 1 2013
– Issue Options to Royale to purchase US$1.7m of RTD stock with a strike price of 150% of the VWAP prior to the signature on
the agreement
• To earn an additional 20% working interest in the Western Block; acquire a 3D seismic survey over
both the Western and Central Blocks by March 31 2014
• To earn a final 45% working interest in the Western Block; drill, test and complete two wells,
including horizontal sections in target formations by March 31 2015
• To earn the 75% working interest in the Central Block, RTD must complete the 3D seismic survey
above, and pay an additional US$1.7m by June 30 2014
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• Prospective Resource classified by Netherland Sewell & Associates Inc*.
• Represent oil numbers only;
• Considerable additional upside in conventional hydrocarbon systems;
• Recovery rates in lower 48 vary between 1% and 10% currently.
Low Estimate (mmbbl) Best Estimate (mmbbl) High Estimate (mmbbl)
OOIP Recoverable OOIP Recoverable OOIP Recoverable
Gross 810 36 3799 167 9485 481
Net RTD 608 27 2851 125 7119 361
Huge Upside in Acreage
* Refer ASX release 22 August 2013 for full details
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