Blue Energy Limited · ASX:BLU
Blue Energy — 4th Annual CBM Conference Singapore 2011
34 slides from Blue Energy's conference presentation, Jul 12, 2011
Slide 1: 4th Annual CBM Conference Singapore
4th Annual CBM Conference Singapore 12 July 2011
Slide 2: Forward looking statements
This presentation may contain forward looking statements that are subject to risk factors associated with the gas and energy industry. It is believed that the expectations reflected in the statements contained within are reasonable, but they may be affected by a range of variables which could cause
Slide 3: 3 TCF Potential in the Eastern Australian LNG Province
3 TCF Potential in the Eastern Australian LNG Province
Slide 4: Vision & Strategy
Vision & Strategy VISION To build the reserve base to 3TCF by YE 2014 STRATEGY Blue has significant CSG and Shale Gas acreage in world class, active sedimentary basins. Targeted work programs in strategically located and prospective permits Permit Target Reserve Bowen Basin (ATP814P) 1.5 TCF + 3
Slide 5: Corporate Snapshot – Asset spread
Corporate Snapshot – Asset spread
Slide 6: Value Timeline
Value Timeline Decreasing risk/Increasing CAPEX 20 TCF Current State GIP Galilee Basin 10 TCF Contingent Resources 3P Maryborough Bowen Basin Basin Potential Maryborough Basin Bowen Basin Bowen Basin ~15 TCF GIP 2.617 TCF Rec 3.0 TCF 3P 2014 2011
Slide 7: Corporate Snapshot
Corporate Snapshot Employees 13 SIGNIFICANT SHAREHOLDERS ANZ Nominees 15.7% Shares on Issue 722.48m* Stanwell Corporation 12.1% Market Capitalisation $50m* KOGAS 8.7% Cash $15m* Mathews Capital 8.4% Coal Seam Gas Acreage 21,049km2 Resource Base (3C rec) 2.6 TCF * As at 30 June 2011
Slide 8: Board and Management
Board and Management BOARD Mr Peter Cockcroft (Chairman) International Gas and LNG veteran Mr John Phillips (CEO & MD) Technical and Management background – petroleum/CSG Dr Paul Massarotto Technical specialist and research background Mr Heung Bog Lee Engineering expertise in global LNG MANA
Slide 9: Safety and Environment
Safety and Environment Zero Recordable Staff Lost Time Injuries Zero Recordable Contractor Lost Time Injuries Zero significant environmental incidents Pro-actively engaged in Galilee Basin aquifer study Positive community contributor
Slide 10: Industry Perspective Reserve Distribution
Industry Perspective Reserve Distribution
Slide 11: Eastern Australia 2P Gas Reserves by Basin
Industry Perspective Eastern Australia 2P Gas Reserves by Basin in PJ (31 December 2010) Adavale Conventional 21 (0.0%) 7200 16 4% Gloucester 6 dah ef Gunnedah 669 (1.5%) Gunneda ( ) 6 (0.0%) 1520 (3.5%) Bowen Cooper-Eromanga sydney 68 (0.2%) 1396 (3.1%) 293 (0.7%) Surat Clarence 137 (0.3%) x — -Mor
Slide 12: Eastern Australia 2P CSG Reserves by Basin
Industry Perspective Eastern Australia 2P CSG Reserves by Basin in PJ (31 December 2010) Gunnedah 1520 (4.2%) Gloucester 669. (1.8%) Sydney 293 (0.8%) Clarence-Moreton 397 (1.1%) Surat 24,772 (67.7%) Total Reserves: 36,598 Queensland: 33,719 PJ - 92.1% New South Wales: 2,879 PJ - 7.9% 16/03/2010
Slide 13: Eastern Australia 2P CSG Reserves by Company
Industry Perspective Eastern Australia 2P CSG Reserves by Company in PJ Total Reserves: 36 598 PJ (31 December 2010) AGL Energy, 2029 (5.5%) Arrow Energy, 5579 (15.3%) | | y Eis croup 2300 228% 2029 (5.5%) [i ontain eneray, 4786.13.1%) Arrow / 5579 (15.3%) [cartes 3415 0.3%) Sinopec, 1690 (4.6%) } )
Slide 14: Industry Perspective
Industry Perspective QCLNG (BG/QGC) APLNG (Origin/Conoco Phillips) GLNG (Santos/Petronas/ Total/KOGAS) AELNG (Shell/Petrochina) NLNG (ESG/Hitachi) LNG Ltd 9.0 7.2 8.0 1.0 1.5 35.2 8,360 11,262 5,010 13,165 14,602 7,680 (2,690) (438) (4,350) (4,821) 220 (1,950) (14,029) 2,115 2,902 (1,680) (2,278) 1,
Slide 15: Bowen Basin ATP 814P
Asset Overview Bowen Basin ATP 814P – Blue Energy 100%
Slide 16: Asset Overview – Bowen Basin
Asset Overview - Bowen Basin Taynsvile KEY Authorities to Prospect Authorities to Prospect Applications Bowen —— Gas Pipelines =+~ Gas Pipelines (planned) —— OilPipelines = Gas Fields 3 Major Towns BS /A, BLUE ENERGY LIMITED ACREAGE LOCATION - ATP 81. so GALILEE ‘BASIN Central\. Moranbat ATP 813P "
Slide 17: Asset Overview - Bowen Basin
Asset Overview - Bowen Basin 2,222 km2 area 100% Blue Energy ownership Signed MOU for GSA 6-10 PJ per annum over 20 years 2.1 TCF Contingent Resources Shale Gas potential Proposed Blue Energy well
Slide 18: Asset Overview – Bowen Basin
Asset Overview – Bowen Basin Surrounding acreage activity: Shell/Petrochina Permits Reserves 2P: 2.1 TCF 3P: 4.4 TCF Domestic Gas production - 46 mmcf/day - 16 BCF pa Gas export infrastructure is being developed
Slide 19: Asset Overview - Bowen Basin
Asset Overview - Bowen Basin LNG tenements adjacent GSA opportunity adjacent Minimal domestic gas supply competition Significant coal mining area – large energy sink Potential market for Micro LNG and fuel switching
Slide 20: Deep CSG potential yet to be tested
Asset Overview - Bowen Basin Deep CSG potential yet to be tested
Slide 21: Galilee Basin ATP 813P
Asset Overview Galilee Basin ATP 813P – Blue Energy 100%
Slide 22: Asset Overview – Galilee Basin
Asset Overview – Galilee Basin
Slide 23: ATP 813P
Asset Overview ATP 813P 4,139 km2 100% Blue Energy owned and operated Sparsely explored basin Blue Energy Resource assessment from NSAI 3C Contingent Resource = 0.5 TCF (rec) Prospective Resource = 1.1 TCF (rec) Regional resource base is building Little gas infrastructure in place cu
Slide 24: Asset Overview – Galilee Basin
Asset Overview – Galilee Basin Basin resource base growing 3C Contingent Resources = 3.6 TCF Active drilling in the basin Deal flow 2009: AGL spends $37 million to earn 50% in ATP 529P 2010: CNOOC farming into Exoma acreage for $50 million to earn a 50% interest in 26,800 Km2
Slide 25: Asset Overview - Galilee Basin
Asset Overview - Galilee Basin Superimposed sedimentary sections Extensive coal distribution Significant coal mining projects in development
Slide 26: Maryborough Basin ATP 613P
Asset Overview Maryborough Basin ATP 613P – Blue Energy 75% (post farm in)
Slide 27: Asset Overview – Maryborough Basin
Asset Overview – Galilee Basin
Slide 28: Asset Overview - Maryborough Basin
Asset Overview - Maryborough Basin Shale gas play independently identified (EIA) CSG and tight conventional gas potential Blue Energy is Operator and earning 75% equity Awaiting Govt award of ATP674A & ATP733A
Slide 29: Asset Overview – well results
Asset Overview – well results Gregory Sandstone – Conventional gas potential Burrum Coal Measures – CSG potential Deep CSG Potential - Tiaro Gas indications in Cherwell Mudstone – Gregory River 3 well
Slide 30: EIA Assessment
Asset Overview EIA Assesment Sparsely explored basin Thick Marine Shale established Compares well with other Australian shale Basins Potentially significant resource Source: EIA report April 2011
Slide 31: Summary
Summary Blue has exposure to multiple resource plays in several different east coast active basins Currently - 2.6 TCF recoverable contingent resource. Bowen Basin focus area (814P) is adjacent to export LNG feed gas supply for Arrow Exposure to potential world class shale gas play close to
Slide 32: Forward Plan
Forward Plan Bowen – two stimulations; two new wells and prod testing – fully funded Maryborough – permit award – studies to define gas potential. Galilee – potential core holes plus pilot production wells (5 spot) Immediate Activity – Bowen Basin ATP814P ACTIVITY AUGUST SEPTEMBER WELL COMPLET
Slide 33: Forward Plan
Forward Plan Production testing activities in the Bowen. New well results in the Bowen Reserves in the Bowen Permit award in the Maryborough Play confirmation in the Maryborough
Slide 34: www.blueenergy.com.au
www.blueenergy.com.au info@blueenergy.com.au
Blue Energy — 4th Annual CBM Conference Singapore 2011 on 6ix