ABN: 38 115 711 601 12 November 2008 Australian Securities Exchange By ASX online CORPORATE PRESENTATION The attached presentation will be given to the Rodman and Renshaw Investment Conference in New York on Wednesday evening 12 November by Incremental’s Managing Director, Gerry McGann. It contains updated reserves information and projected production profiles sourced from data contained in the Independent Technical Specialist Report prepared by RPS Energy Pty Ltd as part of Incremental's recently published Target's Statement. Jonathan Asquith Company Secretary 20 Howard Street PERTH WA 6000 Po Box Z5490 PERTH WA 6831 Ph: +618 9481 8696 Fx: +618 9481 2394 For personal use only
Transcript
ABN: 38 115 711 601
12 November 2008 Australian Securities Exchange By ASX online CORPORATE PRESENTATION The attached presentation will be given to the Rodman and Renshaw Investment Conference in New York on Wednesday evening 12 November by Incremental’s Managing Director, Gerry McGann. It contains updated reserves information and projected production profiles sourced from data contained in the Independent Technical Specialist Report prepared by RPS Energy Pty Ltd as part of Incremental's recently published Target's Statement.
Jonathan Asquith Company Secretary
20 Howard Street PERTH WA 6000 Po Box Z5490 PERTH WA 6831
Ph: +618 9481 8696 Fx: +618 9481 2394
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Version 15
RODMAN and RENSHAW INVESTMENT CONFERENCE Nov 10-12 2009, NEW YORK
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DISCLAIMER AND IMPORTANT NOTICE
This presentation contains forward looking statements that are subject to risk factors associatedwith oil and gas businesses. It is believed that the expectations reflected in these statements arereasonable but they may be affected by a variety of variables and changes in underlyingassumptions which could cause actual results or trends to differ materially, including but notlimited to: price fluctuations, actual demand, currency fluctuations, drilling and production results,reserve estimates, loss of market, industry competition, environmental risks, physical risks,legislative, fiscal and regulatory developments, economic and financial market conditions invarious countries and regions, political risks, project delay or advancement, approvals and costestimates.All references to dollars, cents or $ in this presentation are to Australian currency, unlessotherwise stated.
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SOLID OIL PRODUCTION, EXCITING NEW PROJECTS
6 gas discoveries,
$ in 2009
Maintain 480k bbl pa
5 newprojects
Drilling now
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FILLING THE PROJECT PIPELINE, TIER BY TIER
• SELMO maintains production at 480k barrels p.a. - scope to increase, provides strong
cash-flow.
» TIER 1 GENERATES $ NOW
• Kettleman Oilfield: Production now; Drilling in 2009
• West Turkey gas Project: Production mid 2009;
• California shallow gas and oil projects: Drill in Q1 2009.
» TIER 2 PROJECT $ 2009
• Turkey exploration.
• California exploration: multiple large targets;
• TIER 3 PROJECT $ Beyond 2009
Tier 1
Tier 2
Tier 3
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Shares on issue Options on issue (2010)
79,735,605 6,800,000 @ $1.20 2,000,000 @ $1.45
FINANCIAL
Market Capitalization @ $A1.05 per share
$A83.7m……$US58.5m
Returns to shareholders2006 - 3.0 cents per share2007 - 8.0 cents per share2008 - 6.0 cents per share
Half Year EPS
7.2 7.8 8.2
11.3
0
5
10
Second Half2006
First Half 2007
Second Half2007
First Half 2008
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hare
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INCREMENTAL
• WHY TURKEY ?
• Imports 95% of oil, 98% of gas
• International crude prices
• Double US Gas price
• Great fiscal regime
•12.5% royalty
•20% corporate tax
• Can repatriate all profits
IPO in late 2005
Always looking to find and exploit ‘unloved” oil and gas fields
Took 2 years to find Selmo Field in Turkey
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NOW KNOW HOW TO INCREASE SELMOPRODUCTION - DRILL MORE WELLS !
Transitionalfacies and/or
diageneticboundary
MSD
LSL
LSD
?
Garzan
Facies and/ordiagenetic boundary
?
Hot, hydrothermal fluid result in dolomitisation
Campanian Unconformity
?
Dolomite, porous
Sucrosic Saddle Dolomite(excellent porosity)
Regional shear fractures& faults Open fractures
Dolomite with moderate porosity Limestone
Saddle Dolomite, sucrosic
Dolomite, sucrosic
Legend:
?
Previous Wells(2006-07)
Inclined Sidetracks(2008-09)
Infill Wells(2010-12)
Previous Wells(2006-07)
NEW WELLS 2010-2012For
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SIDETRACK OF ‘DEAD’ WELL NOW OUR BEST PRODUCERF
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2006Q1
2006Q2
2006Q3
2006Q4
2007Q1
2007Q2
2007Q3
2007Q4
2008Q1
2008Q2
2008Q3
Rev
enue
(Mill
ion
$)
0
20
15
10
5
QUARTERLY REVENUE
SIGNIFICANT INCREASE IN CASH FLOW,COSTS DECREASING
quarterly revenue A$ 16.57 million
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SELMO PRODUCTION FORECASTSELMO - PRODUCTION FORECAST
WEST TURKEY GAS PROJECT (IPM 55%):• Six gas wells from 7• Gas price amongst highest in world• Production in mid 2009• Potential cash flow >$13m pa to IPM
ORTAKCI 1
IKIHOYUK 1
ARPACI 2
KUZEY ARPACI 1
0 5 km
3D AREA
LICENCE BOUNDARY
LOCATION MAP
OrtakciBati Yagci
Yagci
Ikihoyuk
Kuzey Arpaci
ArpaciKoyustu
Umur
SulogluTest Rates(MMSCF/D)
3.6
1.9
2.8
2.4
3.8
PROJECT AREA
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TURKEY EXPLORATION PROJECTS
Atesler 1 (40%)
Drilling nowFREE
Ankara blocksHuge gas potential
FARMING OUT AT PRESENT
75% Carried WELL in 2009
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• On trend with over 300 million barrels of production.
• 13 Million Barrels Upside
• DRILLING NOW at NO COST To IPM.
S-E TURKEY EXPLORATION PLAY (IPM 40%)F
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CALIFORNIA PROJECTS
Cum: 480 MMBBL
Cum: 7.3 MMBBL
Cum: 800 MMBOE
Cum: 4.2 MMBBL
IPM’s Focus
7 different reservoirs have produced
From
1800’
to
13000’
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• Tested, undeveloped gas project• Two wells (4,500’ TD) plus 4 mile pipeline
SHALLOW GAS PROJECT
WELL 1 WELL 2
Tested 2825 MSCF/D
from only 6-12’
Tested850
MCF/D
1100MCF/D
550MCF/D
2400 ft
CONTINGENT RESOURCES 4 mmboe to IPM
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REGIONAL CROSS-SECTIONF
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CALIFORNIA PROJECTS
• 100’s MILLION BARREL POTENTIAL KMD
• Q1 2009 wells in SHALLOW GAS PROJECT (8mmboe Potential)
• Q1 2009 well SHALLOW OIL PROJECT (5-15 mmb potential)
• POSSIBLE DEEP STRUCTURES
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Combined Reserves and Resources (IPM Share, MMBOE)
12.04
16.461.034.01
0.160.34
NoReserves
0
5
10
15
20
December2005
Selmo(Turkey) 2P
Reserves (as atJuly 2006)
Edirne(Turkey) 1C
Resources* (asat June 2008)
KMD (USA) 2PReserves (as at
June 2008)
McFlurrey(USA) 2C
Resources* (asat Sep 2008)
SelmoProduction
(July 2006 toSep 2008)
SelmoAdditional 2PReserves (as at
Oct 2008)
CombinedReserves &
Resources (asat Oct 2008)
-1.12
* (Note – IPM has elected to conservatively book only 1C volumes at the 2C level at this time)
CONTINUALLY BUILT RESERVESF
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A Projected Production Profile for IPM's Proven Reserves
SOURCE: RPS ENERGY Oct 2008
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MARKET CONDITIONS LEAD TO CORPORATE ACTION
• Cooper launched hostile "low-ball" bid early Sept 08
• Independent Expert valued IPM at A$2.70 p/share
• Directors advised shareholders to Reject the bid
• Bid closed Friday (at A$1.05 p/share) and only 27% shareholders accepting
• TransAtlantic has bought approx 11% on market and announced they will
bid in late Nov 08
• IPM will consider corporate proposals ( Mergers and Acquisitions) but only
if they add to shareholder value
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Experienced, involved board of directors
• 80 field staff
• 18 office staff, Istanbul, Ankara, USA
• Five geologists
• Five reservoir engineers
• Strong IT and financial back-up
• Worldwide technical network
PERSONNEL
World class team in Turkey and USA
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FIRST PRIVATE COMPANY IN TURKEY TO START A MICROCREDIT PROJECT
• More than 1000 people impacted by loans already.
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Batman Governor and Australian Ambassador at microcredit loan opening ceremony
