asx code: ipb 31 july 2013 for personal use only · 2018. 12. 8. · iΠb ipb petroleum ipb...
TRANSCRIPT
IΠB
IPB Petroleum
IPB Petroleum Limited (ABN 52 137 387 350)
23 Small Street, Hampton, Victoria 3188 Australia P: +61 3 9598 0188 F: +61 3 9598 0199 W: www.ipbpet.com.au
ASX Code: IPB
31 July 2013
ASX ANNOUNCEMENT
INVESTOR PRESENTATION
Please find enclosed a presentation on IPB Petroleum provided to financial institutions today, 31st July 2013.
John Osborne Company Secretary
For Further information contact Brendan Brown, Managing Director +61 3 9598 0188 or [email protected].
IMPORTANT NOTICE: The resources evaluation of petroleum permits is subject to uncertainty because it involves judgments on many parameters that cannot be precisely assessed and which may change as new information becomes available. All resources quantities contained in this announcement have been independently estimated by ISIS Petroleum Consultants Pty Ltd (ISIS) for and on behalf of IPB Petroleum Ltd. Further the resources quantities contained within this announcement have been prepared in full compliance and adherence to The Society of Petroleum Engineers Guidelines for the application of the Petroleum Resources Management System (SPE-PRMS). The qualification of the ISIS persons who prepared the resources estimates for and on behalf of IPB Petroleum Ltd and contained within this announcement are as follows: Dr Douglas Gillies holds a BSc and a PhD in Geology. He is a member of the Society of Petroleum Engineers (SPE) and has over 25 years’ experience in the petroleum industry in Europe, USA, FSU, Middle East, Asia and Australia. Mr Richard Carter holds a BAppSc (Geophysics), and a Graduate Diploma in Applied Physics (Geophysics). He has over 24 years’ experience in the Australian petroleum industry as a technical specialist and an independent investor. He worked as a Senior Geophysicist with BHP Petroleum for 14 years.
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ΙΠB IPB Petroleum Limited (ASX Code : IPB) www.ipbpet.com.au
Investor Presentation
31 July 2013
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Company Overview
This presentation has been prepared by IPB Petroleum Limited (IPB) and is provided on the following basis.
This presentation does not constitute or form part of any offer or invitation to purchase or subscribe for any securities in IPB or an invitation or inducement to
engage in investment activity. All persons should consider seeking appropriate professional advice in reviewing the presentation and IPB.
No representation or warranty, express or implied, is made by IPB or any of its directors, officers, employees, advisers, related bodies corporate or any other
person as to the accuracy, reliability, relevance or completeness of the material contained in this presentation and nothing contained in this presentation is, or
may be relied on, as a promise, representation or warranty, whether as to the past or future.
Except for statutory liability which cannot be excluded, each of IPB, its directors, officers, employees and advisers expressly disclaims any responsibility for the
accuracy or completeness of the material contained in this presentation and excludes all liability whatsoever (including in negligence) for any loss or damage
which may be suffered by any person as a consequence, either directly or indirectly, of the use of any information in this presentation or any error or omission
there from. IPB accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in this presentation or any other
information made available to a person nor any obligation to furnish the person with any further information.
This presentation contains certain statements which may constitute "forward-looking statements". Such statements are only predictions and are subject to
inherent risks and uncertainties which could cause actual values, results, performance or achievements to differ materially from those expressed, implied or
projected in any forward-looking statements. Any forward looking statements speak only as at the date of this presentation and are based on current expectations
and belief. No representation or warranty, express or implied, is made by IPB that the material contained in this presentation will be achieved or prove to be
correct.
Unless otherwise stated information, opinions and conclusions contained within this presentation has been provided by IPB Petroleum Limited and may not
necessarily represent those of our other joint venture partners.
RESOURCES:
The resources evaluation of petroleum permits is subject to uncertainty because it involves judgments on many parameters that cannot be precisely assessed
and which may change as new information becomes available.
All resources quantities contained in this presentation have been independently estimated by ISIS Petroleum Consultants Pty Ltd (ISIS) for and on behalf of IPB
Petroleum Ltd . Further the resources quantities contained within this presentation have been prepared in full compliance and adherence to The Society of
Petroleum Engineers Guidelines for the application of the Petroleum Resources Management System (SPE-PRMS). The qualification of the ISIS persons who
prepared the resources estimates for and on behalf of IPB Petroleum Ltd and contained within this presentation are as follows : Dr Douglas Gillies holds a BSc
and a PhD in Geology. He is a member of the Society of Petroleum Engineers (SPE) and has over 25 years’ experience in the petroleum industry in Europe,
USA, FSU, Middle East, Asia and Australia; Mr Richard Carter holds a BAppSc (Geophysics), and a Graduate Diploma in Applied Physics (Geophysics). He has
18 years experience in petroleum exploration and development and a further 6 years as a full time independent investor in the Australian oil and has industry. He
worked as a Senior Geophysicist with BHP Petroleum for 14 years; Mr Werner Ribul holds a MSc in Petroleum Engineering. He has over 24 years of petroleum
and reservoir engineering experience with specific focus on recovery optimisation opportunities, reserves determination and classification. Dr. Enrique Carballido
is the Chief Operating Officer of ISIS. He holds a Bachelors degree in Geological Engineering, and a Ph.D. in Geology. He has over 20 years of exploration,
appraisal and development experience in the petroleum industry in the, USA, FSU, Asia and Australia, including 17 years with Shell. For further information,
including assumptions, limitations and qualifications relating to the estimation of resources contained within this presentation, please refer to the Independent
Technical Expert’s Report by ISIS in IPB’s Prospectus dated 1 March 2013, and IPB’s ASX Release “IPB gains additional prospective resources from WA-485-P”
dated 27 May 2013 available on the Company website www.ipbpet.com.au.
Important Notice
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About IPB Petroleum Ltd
• CONVENTIONAL Australian Oil Explorer
• Oil discovered in IPB’s first permit at Gwydion
• QUALITY Shareholder base
• PGS 8.3 %
• Quality JOINT VENTURE Partner and FUNDING
• CalEnergy is a subsidiary of MidAmerican
• CalEnergy are funding up to $32.4m
• NEAR TERM Material Activity
• Pryderi-1 estimated ~Q4/ 2013 is 100% free
carried
• Large Material STRATEGIC POSITION
• Large OIL RESOURCE BASE
• IPB net equity share in permits is 672
MMbbls of oil at a Mean Prospective
Resource level (unrisked) ISIS
• EXPERIENCED & WELL QUALIFIED BOARD
AND MANAGEMENT TEAM
• DIVERSIFICATION through multiplay large permits
• Listed on ASX 30 April 2013 (ASX code IPB) 3
Company & Asset Overview
Highly Active Locale
• US$11B Prelude (Shell) world first FLNG
Development Project
• US$34B Ichthys (Inpex) LNG condensate
Development Project
• Proposed Browse LNG Project (Woodside)
• ConocoPhillips 5-8 well exploration
programme on and around Poseidon
(underway with success)
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2009 Company established
2010 Sept-10 Acquire
WA-424-P
Nov-10 Raise A$6m
2011 Apr-11
Acquire 200km2 3D seismic
Dec-11 Processing of 3D
seismic completed
2012 Apr-12
Interpretation of 3D seismic completed
May-12 Acquired
WA-471-P
Jun-12 Raise A$2.5m
Sept-12 Farmout to CalEnergy
2013 Apr-13
Listed on ASX raising an
additional $2.9m
May-13 Acquired
WA-485-P
~Q4/2013 Planned Pryderi-
1 Drilling
2014 New Ventures/
Farmouts
Potential Pryderi Appraisal Well
Planned 3D seismic Activities
IPB’s Activity Timelines F
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• 30 years experience in oil and gas industry, commenced career with Esso Australia
• Numerous management and senior exploration positions with BHP Petroleum, directly involved in the Macedon,
Pyrenees, Montara, Argus and Gwydion discoveries
• Substantial experience in Australia, in particular offshore Western Australia, SE Asia, and United States.
Geoffrey King
BSc (Hons)
Non-Executive Director
Board of Directors
Shane Tanner
FCPA, ACIS
Non-Executive Chairman
• Former CEO of Mayne Nickless Diagnostic Services (later renamed Symbion Health)
• Vast commercial and financial experience having helped numerous start-up companies grow both organically and
through acquisitions
• Currently Chairman of Funtastic Limited (FUN), Paragon Care Limited (PGC) and Vision Eye Institute Limited (VEI).
Brendan Brown
BSc, BE(Hons),
MBA(Melb), F Fin
Managing Director
• Established IPB Petroleum in early 2009 and has over 20 years experience in the Oil and Gas and Finance
industries
• Commenced career as an engineer with BHP Petroleum - heavily involved in the Jabiru, Challis and Skua projects
and operations, and Griffin oil field developments
• Previously an analyst and corporate advisor with ANZ Investment Bank
• Was head of finance and business development with Nexus Energy (2007-2008) - responsible for substantial
financing, both equity and structured debt, secured by the company and the negotiation and maintenance of its key
commercial agreements and relationships.
Philip Smith
BSc Physics(Hons), Msc
Geophysics, Grad Dip App
Fin & Inv
Technical Director
• Has over 30 years experience working as an exploration geoscientist
• Previously worked in London with Phillips Petroleum and Kufpec and in Australia with Woodside Petroleum and
BHP Petroleum
• During his 15 year tenure with BHP Petroleum he held senior technical and managerial roles in offshore basins
around Australia and was involved in oil and gas discoveries at Elang, Laminaria, Maple and Argus
• Most recently with Nexus Energy where he was responsible for building the exploration portfolio and was involved in
the Longtom and Crux appraisal and development projects.
Craig Mathieson
B.Bus(Banking & Finance)
Non-Executive Director
• CEO of The Mathieson Group
• Current Non-Executive Directors to ASX listed Funtastic Limited (FUN) and Greater Western Exploration NL (GTE)
• Previously Managing Director of DMS Glass (2001-2007) and with ANZ Bank (Business Banking Division) and St
George Bank (Property and Finance division) where he gained banking and commercial expertise.
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Gwydion -1
Spill Point
OWC GOC
Reservoir
(Sandstone)
WATER
GOC
OWC
Increasing
Density
GAS
OIL
Seal (Impermeable rock)
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Gwydion Oil Field (WA-424-P) F
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3D Result – Pryderi Prospect (WA-424-P) F
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Gwydion-1 Pryderi Prospect level
Up dip Shut off
Down dip Shut off
Gas/Oil in
Barremian/Hauterivian Reservoir
3D Arbitrary Line through Gwydion oil discovery and
Pryderi channel prospect F
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gas oil
water
Pryderi Channel System
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WA-424-P
Outline of 3D data
Identified additional prospectivity
from 2D seismic interpretation
Amplitude Anomalies from 2D Data
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Company Overview
ΙΠB Strictly Confidential IPB Petroleum Ltd 11
Amplitude Anomalies from 2D Data F
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Company Overview
Amplitude extraction at top Gwydion gas reservoir level
Shut offs
ΙΠB Strictly Confidential IPB Petroleum Ltd 12
Amplitude Anomalies from 2D Data F
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WA-424-P
Mean unrisked prospective
recoverable resource
40 MMbbls oil
Mean unrisked prospective
recoverable resource
282 MMbbls oil
Amplitude Anomalies from 2D Data
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WA-471-P WA-485-P
WA-424-P
Pryderi Prospect
Mean unrisked prospective recoverable
resource 40 MMbbls oil
WA-424-P
Mean unrisked prospective recoverable
resource 282 MMbbls oil
WA-485-P
Mean unrisked prospective recoverable
resource 166 MMbbls oil
Independent
Assessment (ISIS)
Permit WA-485-P Extension of Pryderi Play F
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WA-471-P WA-485-P
WA-424-P
Pryderi Prospect to be drilled in ~Q4 2013
Mean unrisked prospective recoverable
resource 40 MMbbls oil
WA-424-P
Total M.australis Mean unrisked
Prospective Recoverable Resource
322 Mbbls oil
WA-424-P
Permit – WA-485-P Extension of Pryderi Play
WA-485-P
Total M.australis Mean unrisked
Prospective Recoverable Resource
166 Mbbls oil
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IPB Prospects and Leads Map (WA-424-P)
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CONTINGENT RESOURCES (Oil - Million Barrels ) Net to IPB Chance of Success (Risk: Pg)
Sub Commercial Discovered PIIP Contingent Resources %of Total
P90 P50 P10 Mean P90 P50 P10 Mean 0.4%
1.00 Gwydion 4 5 6 5 1 2 3 2
PROSPECTIVE RESOURCES (Oil Million Barrels) - Net to IPB
Undiscovered PIIP Prospective Resources (unrisked )
Mathonwy Prospect 1.4 1.8 2.3 1.8 0.5 0.8 1.2 0.8 0.2% 0.72
Pryderi 3D Prospect 23 56 131 70 9 24 59 30 5.9% 0.45
2D Pryderi Channel Leads P90 P50 P10 Mean P90 P50 P10 Mean
High Case 496 704 1019 738 217 315 467 332 0.15
Low Case 162 199 239 200 70 89 111 90 0.40
Mid Case 344 455 610 469 153 203 280 212 41.4% 0.23
Arianrhod 3D Stratigraphic Lead 8 19 45 24 3 8 20 11 2.1% 0.24
"Mordred" Structural Leads 82 106 136 108 35 47 64 48 9.5% 0.20
Tristram OIL CASE (On Block)* 223 433 818 487 85 179 362 207 40.6% 0.04
* 80% of the lead lies in WA 424-P SUBTOTAL 508
TOTAL PORTFOLIO (contingent + prospective resouces)
In Place Recoverable (unrisked) P90 P50 P10 Mean P90 P50 P10 Mean
High Case 1049 1391 1887 1433 452 611 848 631
Low Case 621 850 1241 895 263 368 554 389
Mid Case 835 1120 1564 1164 357 489 701 510
WA-424-P Resources: Net to IPB Independent Technical Experts Report (ISIS) – Prospectus March 2013
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P ROS P E CT IVE RESOURCES (Oil - Million Barrels) (Unrisked)
Undiscovered PIIP Prospective Resources
P90 P50 P10 Mean P90 P50 P10 Mean
M.Australis play 247 350 513 369 108 157 235 166
IPB Resources continued
ISIS Independent Review (May 2013) : WA-485-P M.australis play resources
Combined Mean Prospective Resources
WA-424-P & WA-485-P Net to IPB (Unrisked Recoverable) :
= 672 MMBBLS oil net to IPB
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Leads and Plays:
The 2D seismic data in the block highlights the
potential for stratigraphic traps at deeper levels to the
Pryderi Prospect
Oil-prone source rocks have been identified further to
the north, such that WA-471-P is believed to be located
along the oil migration pathway for the oil discovered at
Gwydion
Amplitude anomalies within structural/stratigraphic
closures are observed similar to – Gwydion/Caspar
plays
Substantial number of additional alternative plays
Work program and technical case involves the
acquisition of 3D seismic to work up future drillable
prospects.
No Resources attributed to this permit at this stage.
Permit WA-471-P Strategic with additional play opportunities
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• IPB has Farmout agreement with CalEnergy Resources (Australia) Ltd ( "CE")
• CE is 100% owned by Mid American Energy Holdings Company
CE has upstream hydrocarbon assets in Australia, UK, and Poland
• Key details of the Farmout are that CE:
• Will fund 100% of the cost of drilling the Pryderi Prospect exploration well in our WA-424-P permit
(IPB estimates to cost around $15m) to earn a 25% interest in the whole Permit. (Except a 60%
interest in the Permit’s current Gwydion Discovery and the neighboring Mathonwy/Gilfaithwy
structures ("GMG") Area.) CE has become the operator of WA-424-P.
• Have an option for 3 months after drilling the Pryderi well to increase their interest in the balance of
the WA-424-P permit to 60% by spending further funds as they determine on exploration, appraisal
and or development activities up to an amount = ($32.4m – less the cost of the Pryderi well)
• Have the option to participate at a 25% interest in our WA-471-P permit which can be exercised for
nominal cost within 3 months of the date of the Pryderi well being drilled. IPB will remain operator of
this permit
Farmout to CalEnergy F
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Amplitude extraction at top Gwydion gas reservoir level
Pryderi Prospect and GMG Area F
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Pryderi (WA-424-P) Indicative Development Model and Economics
• CASE: 40 MMbbls Recoverable
• Development drilling – jack-up
• Dry Trees – 2 well head platforms
• Processing/Export FPSO – leased
• Lift Electrical Submersible Pumps
• 8 production wells (dry) (5MMbbls
recoverable per well)
• 4 Water Injection wells (dry)
• Peak Production 20,000 bbls/day
• Oil Price $95 real (tapis)
• AUD/USD $0.95 - $0.85 flat after 3
years
• Based on third party independent
design concepts, IPB analysis
$ $ per bbl
CAPEX (USD) $587 million $14.68
OPEX (per annum) (USD) $84 million $12.11
NPV 10 (AUD) $680 million $17
Oil off-loaded to shuttle tanker
Wellhead Platforms
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• Market Capitalisation @ A$0.25 = $24.7m, with $2.6 m in cash EV = $22.1 m
• With additional funding available through the two stage Farmout to Cal Energy of between a
minimum (IPB estimated) $15m for drilling Pryderi-1 up to a potential $32.4m into the company’s JV
assets.
• Unrisked Mean Contingent and Prospective Recoverable Resources of over 670 MMBBLS
Oil net to IPB post CalEnergy initial farm-in (before any option to exercise increase notice
post Pryderi)
• Implied Market Cap of 3.7 cents a barrel at the Mean Prospective recoverable (unrisked)
oil resource level
• Estimate of today’s equivalent of sunk exploration costs in WA-424-P alone: Existing
exploration wells - Gwydion $15m and Caspar $15m (BHP 1995,1998), and 9 x 2D
surveys substantially over $30m plus IPB’s 3D survey ~$4m is estimated at over $60m.
Implied value of IPB’s 75% interest in WA-424-P = $45m
• CalEnergy Farmout* (first phase) : WA-424-P ~ drill Pryderi Well for 25% WA-424-P [ but
60% GMG] plus option 25% WA-471-P for drilling Pryderi ~$15m est. Implied value IPBs
permits of approximately 3x $15m = $45m.
• Success at Pryderi – assuming 40 MMbbls mean recoverable resource – has estimated
NPV10 of $680m (100%) → value to IPB estimated (40% interest) = $272m, + 11 other
leads at the same level in WA-424-P alone.
* Refer to CalEnergy Farmout Agreement on slide 20
Valuation Considerations F
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Indicative Use of Funds Jan – Dec 2013
A$ Million
Funds available as at 1 January 2013 $1.18
Funds raised IPO – received 30 April 2013 $2.92
Total Funds available before expenses $4.10
Application of Funds Raised
Exploration and development expenditure on WA424P, WA471P, WA-485-P $1.28
IPO expenses $0.49
Administration $1.06
Working Capital balance as at 31 December 2013 $1.27
Total Application of Funds available $4.10
• Cash Balance end June 2013 - $2.6 m
Note:
Does not include up to $A 32.4m of funding from WA-424-P from CalEnergy Farmout . First stage of
Farmout will fully fund the cost of the Pryderi-1 oil exploration well estimated to be $15m
Sources and Use of Funds F
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Indicative Work Program (current assets)
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Initial Public Offer (IPO)
Permit Primary Terms
WA-424-P Term End
Well Planning - Drilling & Environmental Approvals
Drill Pryderi-1 Well 12-15 days
Seismic Moratorium (Whale Migration)
WA-471-P Term End (May 4th) Year 1 Year 2 Year 3
Studies
Acquire Seismic in WA-471-P
Process WA-471-P Seismic
Potential Farmout of WA-471-P
Well Planning WA-471-P
Drill Commitment Well WA-471-P
WA-485-P Term End (May 13th) Award Year 1 Year 2
Studies
Reprocess & intepret 900km of 2D Seismic
Acquire 3D Seismic in WA-485-P
Process WA-485-P Seismic
Potential Farmout of WA-485-P
Well Planning WA-485-P
Drill Commitment Well WA-485-P
IPB Indicative Future Work Program Options
Contigent Plan
Acquire 3D Seismic data over 2D M.Australis Leads
Drill Appraisal Well Pryderi-2
Process 3D Seismic data over 2D M.Australis Leads
Further Exploration Drilling M.Australis Leads
LEGEND
IPO
Firm Work Commitments
Contigent Plan
Primary Term Permit Year End
2013 2014 2015
Current date - 1st July 2013
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• Early entry with high equity and a risk management plan
• Early part of E&P life-cycle very high reward, but aim to manage risks
• Usually with different insight/idea/application of new technology, e.g. 3D
• Aim for strategic position e.g. WA-424-P, WA-471-P and WA-485-P (Browse
Basin potential new oil fairway_
• IPB’s strategy is to operate only up to FID:
• Operatorship has value to IPB up to FID
• Seek value add partnerships/JV’s
• Opportunistic
• New Ventures/early entry/minimise dilution
• Optimise future funding mix with alternatives, asset, company, JV, etc.
Long Term Strategy F
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• IPB is an Australian conventional oil explorer
• Holds a large acreage position along Oil prone margin of Browse Basin – NW Australia
• Relatively shallow water c ~ 80m, shallow reservoir depth ~ 700m– allows for low cost drilling and
development
• Large Oil Resource – 672 MMbbls of oil - mean Prospective Resource level in WA-424-P and
WA-485-P ( Net IPB share)
• 3D seismic is the key to unlocking the potential of its key plays
• Existing oil discovery in IPB’s WA-424-P Permit at Gwydion 6 MMbbls (mean Contingent
Resource), also likely to lower the commercial threshold at Pryderi if successful
• Confidence of potential further WA-424-P and WA-485-P permit wide 3D prospectivity, due to
large existing 2D data set and demonstrated good 2D to 3D comparison
• Near term drilling activity e.g. Pryderi-1 – fully carried with CalEnergy Farmout
• Total potential funding available of up to $32.4m from CalEnergy Farmout
• Large permits provide diversification as well as success based leverage and play coverage
• Highly qualified and capable Board and Management team
• Current Market Capitalisation at 25 cps ( 29 July 2013) = $24.7m
Conclusion – Key Points F
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