Sacga gasco L Limi mite ted ABN 83 114 061 433 Unit 14, 210 Bagot Road, Subiaco, WA, 6008. T +61 8 9388 2654 E info@sacgasco.com ASX ANNOUNCEMENT 4 June 2020 SGC PRESENTATION FOR TODAY’S WEBINAR Sacgasco Limited ( ASX:SGC ) is pleased to provide an updated Investor Presentation which includes a high level comparison of the Sacramento and Perth Basins. Managing Director, Gary Jeffery will speak to this presentation in a Webinar scheduled for 12 pm (AEST) (10am - Perth) today, Thursday 4 June 2020 with a question and answer session to follow. Questions can be submitted in written form online when registering or during the presentation. Webinar Time: 10am Perth time (12.00pm Australian East Standard Time (AEST)) Thursday 4 June 2020 To register click on the following link: https://register.gotowebinar.com/register/4315781458425604620 Authorised for lodgment by Gary Jeffery, Managing Director. Gary Jeffery Ben Jarvis Managing Director Six Degrees Investor Relations +61 8 9388 2654 +61 (0) 413 150 448 About Sacgasco Limited (ASX: SGC) Sacgasco’s strategy is to find, acquire and develop undervalued and under-developed opportunities connected to materially under supplied oil and gas markets across the world. Sacgasco Limited (ASX: SGC) is an Australian-based energy company focused on conventional gas exploration and production in the Sacramento Basin, onshore California. Sacgasco has an extensive portfolio of natural gas producing wells and prospects at both exploration and appraisal stages, including multi-Tcf opportunities. The Company is targeting gas supply to the local Californian gas market and burgeoning LNG market in North America. Sacgasco is of the view that the size of the prospects in California have the potential to supply both domestic Californian natural gas and export LNG markets, including those in Asia. www.sacgasco.com Twitter: @SacGasC o
SExp Sacramento Basin Conventional Natural Gas Company Investor Presentation June 2020 ASX: SGC
Webinar Agenda 1. Sacgasco -Sacramento Basin Natural Gas Company 2. Sacgasco in the Sacramento Basin -Prolific Playground* 3. Sacgasco in California -Insatiable Premium Market 4. Sacgasco -Invaluable Infrastructure 5. Sacgasco – Activity to add Gas Flows and Revenue “The Sacramento Basin is Perth Basin’s big brother!” *Plays – An industry term for areas in which hydrocarbon accumulations or prospects of given types occur. 2
Corporate Summary Corporate Snapshot June 2020 ASX Code: SGC Market Cap (@$0.015/share): ~$4m ~41% Shares on issue: ~270m Options (@ 4 cents expire 31 Dec 2021): 150m Number of Shareholders: 1151 Top 20 Shareholders Directors Shareholding: ~9.4% ✓ “Sacgasco has a highly leveraged Board & Management corporate structure run on the smell Chairman Andrew Childs of an oily rag.” Managing Director Gary Jeffery ✓ “Oil and gas industry veterans ensuring dollars go into the ground for Non-executive Director Greg Channon shareholder leverage.” 3 Confidential
SGC-Prominent position in world-class Sacramento Basin ▪ Sacramento Basin has produced over 12 Tcf gas, BUT is under-explored with extensive room for reservoir ‘sweet spots’ including “Tcf - plus” natural SGC’s gas opportunities like Dempsey, and Borba Focus Area ▪ Irreplaceable SGC-owned infrastructure to provides quick connections to gas sales (US$10+ million cost to duplicate today) ▪ SGC operates a material portfolio of conventional- reservoir, natural gas flowing wells and prospects with associated Infrastructure in 7 onshore gas fields in the Northern Sacramento Basin ▪ SGC Working interest of 30%-100% in leases which cover natural gas prospects ranging in size from 5- 20 Bcf to 1+ Tcf ▪ SGC operates in areas of strongly supportive County Governments OGJ 4
Under-explored, world-class Sacramento Basin Prospect Types “Very similar to Perth Basin, but Scaled - Up” Penetration of most wells Outcrop West East Dempsey Type Lower Cretaceous Type www.australianoilcompany.co 5 5 m
California gas market attracts premium pricing ✓ California has the 5 th highest GDP in the world. ✓ Relevant Natural Gas prices in California are currently almost 50% higher than the USA benchmark Henry Hub natural gas prices ✓ California’s average gas demand is approximately 7 billion cubic feet (Bcf) per day or 2.5 trillion cubic feet (Tcf) of gas per year- 70% higher than Australia’s total Natural Gas consumption ✓ California’s domestic production is less than 10% of California’s gas needs ✓ “Natural gas is an important component of California’s energy system, supplying about one-third of the state’s primary energy demand. ✓ “Coupled with renewables, gas will provide a reliable, sustainable and efficient energy source to achieve California’s energy goals” 6
A clearly defined growth strategy ▪ Increase current production from workovers and in- field additions (0.5 to 4 Bcf) and explore larger 200+ Bcf to Multi-Tcf targets ▪ Active workover program of existing natural gas wells to increase gas flows and revenue from current premium gas price ▪ Three (3) immediate workover targets identified - low cost strategy with short payback timeframe ▪ Increased gas flows will be sold using existing mostly owned connected equipment and pipelines ▪ Planning for drilling of larger-potential appraisal targets like Dempsey follow-up and Borba when operational risks are reduced post COVID-19; mapped prospects have multiple targets and multi-TCF play potential in Sacgasco Focus Area. 7
Near-term value catalysts ▪ Scale up natural gas production and cash flows from imminent low cost workovers of existing wells ▪ First 3 wells identified to boost production – more pending ▪ Capitalise on favourable near-term outlook for natural gas and California’s premium prices ▪ Convert resources to cash flow using irreplaceable owned pipeline infrastructure - replacement CAPEX would be over US$10 million ▪ Follow-up West Africa reservoir analogues on extensive 3D seismic; reservoir model consistent with outcrops seen “a stone’s throw away” to the west ▪ SGC monitoring operating conditions to determine timeframe for large prospect drilling ▪ Take advantage of mis-matched asset prices – SGC is always on the alert 8
Perth Basin Comparison – SGC and Strike / Warrego Comparison Criteria Sacramento Basin Perth Basin Production to Date Over 12 Tcf Around 0.6 TcF Gas Market 7 Bcf per day; Undersupplied- 90% gas imported <1 Bcf per day; Over supplied, limited market from interstate subject to WA DOMGAS Policy Gas Price ~A$4 per mcf ~A$4 per mcf Well Depths Less than 3,000 Metres Around 5,000 metres Market Caps and Leverage SGC - $4 million ( 270 Million Shares) STX - $ 300 million ( 1,700 Million Shares) XST - $3 million ( 1,400 Million Shares) WGO - $ 100 million ( 900 Million Shares) Reservoirs and Opportunity Tens of Bcf to Tcf potential; Highly pressured; Tens of Bcf to Tcf potential; Highly Pressured; Identified in Outcrop; Identified Sweet Spots in Identified from limited well intersection and Subsurface from 3D Seismic; Extensive vertical high flow rates; reliant on seismic amplitudes column of gas saturated rocks in Sacgasco’s for Resource Estimation Dempsey control well Land Access Landowner Incentives in form of 15-20% Royalty “Lock the Gate” adversarial activity; little from Production landowner incentive; Equipment and Industry Existing owned plant; Extensive local suppliers New plant needed; Limited suppliers and Support and competition mean lower costs -> $ equipment and labour drive costs up -> $$$$ Government Regulation Existing Gas Field Administrative Areas facilitate Special Government support packages activity 9 Confidential 9
SGC- “Sacramento Basin is the Perth Basin’s big brother!” ✓ Sacgasco -Sacramento Basin Natural Gas Company ✓ Sacgasco in the Sacramento Basin -Prolific Playground* ✓ Sacgasco in California -Insatiable Premium Market ✓ Sacgasco -Invaluable Infrastructure ✓ Sacgasco – Activity to add Gas Flows and Revenue “Sacgasco –provider of sustaining Natural Gas for future energy needs” 10
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