Blue Energy Limited · ASX:BLU
Blue Energy — Investor Presentation (June 2009)
23 slides from Blue Energy's investor presentation, Jun 16, 2009
Slide 1: Poised for Growth
POISED FOR GROWTH 16 June 2009 Slide 1
Slide 2: Corporate Structure
BLUE ENERGY Corporate Structure Australian listed Energy Company (BUL) Brisbane Head Office Shares on Issue 565.7m Market Capitalisation $130m* Cash $31.9m* Major Shareholders ANZ Nominees 20.3% Stanwell 15.4% Coal Seam Gas Acreage 27,577km2 Conventional Acreage 71,574km2 * as at 9 June 2009 post SP
Slide 3: Mission and Strategy
BLUE ENERGY Mission and Strategy Blue Energy’s Mission: To be a profitable gas company within 3 years. To achieve our Mission: Blue Energy will conduct its activities with technical rigour combined with peer review of technical assumptions and findings. Blue Energy’s focused commercial objectives ar
Slide 4: People
BLUE ENERGY People Board Management Team – Peter Cockcroft - Executive Chairman – Peter Cockcroft - Executive Chairman – Brian McGillivray - Director & Company Secretary – John Phillips - Chief Operating Officer – Dr. Paul Massarotto - Non-Executive Director – Stuart Owen - Chief Financial Officer –
Slide 5: Corporate History
BLUE ENERGY Corporate History • Nov 2004: Blue Energy commenced as a private petroleum exploration company with assets in several producing Australian Basins. • Feb 2006: Energy Investments Ltd (EIV) invested in Blue Energy and gained control. • May 2007: EIV changes name to Blue Energy Ltd. • Jul 2
Slide 6: Top Shareholders
BLUE ENERGY Top 20 Shareholders (as at 15 June 2009) Slide 6
Slide 7: Share Price History
BLUE ENERGY Share Price History Slide 7
Slide 8: Share Purchase Plan Results
BLUE ENERGY Share Purchase Plan Results SHARE PURCHASE PLAN (SPP) RESULTS • Attracted 1685 new shareholders added to register using a variable record date. • Maximum share parcel of $15,000 per shareholder. • 48% of all shareholders took up the offer (34% of pre-existing shareholders & 73% of new sh
Slide 9: KOGAS Heads of Agreement
BLUE ENERGY KOGAS Heads of Agreement KOGAS HOA • Agreement reached between KOGAS and Blue Energy on 29th May 2009. • Blue will make a private placement of Blue shares to KOGAS representing 10% of Blue Energy stock post SPP allotments. • A Board position will be offered to KOGAS. • The share placemen
Slide 10: Stanwell Strategic Alliance
BLUE ENERGY Stanwell Strategic Alliance Stanwell Alliance • Agreement reached between Stanwell and Blue Energy in August 2008. • Blue Energy to supply 8.5 PJ per annum to Stanwell over 25 years for gas fired power project. • Blue Energy’s funding requirement is through to initial certification of re
Slide 11: Two Pronged Strategy
BLUE ENERGY Two Pronged Strategy Domestic Gas – Power Generation Commercialisation Strategy Export LNG Market Slide 11
Slide 12: Two Pronged Strategy
BLUE ENERGY Two Pronged Strategy SHORT TERM STRATEGY - DOMESTIC GAS (1 – 3 Years) • Focus on shallow Walloon Coal Measures to supply to the expanding Southeast Queensland gas market with initial drilling / pilots in ATP 854P. • Leverage the Stanwell Alliance Agreement in the reserve certification pr
Slide 13: Why Domestic Gas?
BLUE ENERGY Why Domestic Gas? DOMESTIC GAS MARKET Demand • Current estimated Eastern Australian Gas demand is approximately 670 PJ per annum (1,835 TJ/day). • Demand has shown strong increase in 2007 largely due to drought related issues (hydro generation decline), but this is expected to level out
Slide 14: Why Domestic Gas?
BLUE ENERGY Why Domestic Gas? DOMESTIC GAS MARKET Price • Successful development of an export LNG project in Gladstone will put upward pressure on gas prices. • Rebound in oil price will impact LNG prices and CSG netback. This will affect domestic gas prices (high side case). • Rationalisation of CS
Slide 15: Why Domestic Gas? Gas Is the Fuel of the Future
BLUE ENERGY Why Domestic Gas? GAS IS THE FUEL OF THE FUTURE • Eastern Australian generation growth forecast to be fuelled by gas. • Decline in coal fired generation from CPRS. • Renewable energy growth not forecast until 2018. Source: Wood Mackenzie 2009 Slide 15
Slide 16: Why Domestic Gas?
BLUE ENERGY Why Domestic Gas? With a base case LNG assumption, “additional potential” is required to meet the supply gap post 2016 given the contingent CSG resources are proved up. Source: Wood Mackenzie 2009 Slide 16
Slide 17: Why Domestic Gas?
BLUE ENERGY Why Domestic Gas? Approximately 85% of the current 2P reserves in Queensland are earmarked for LNG “Green “ acreage is allocated to LNG Source: RLMS Slide 17
Slide 18: Reserve Development Projects
BLUE ENERGY’S RESERVE DEVELOPMENT PROJECTS Blue Energy is currently initiating drilling programs to move current Prospective and Contingent Resource to Independently Certified Reserves to fast track the pathway to revenue: Domestic Gas (1 - 3 Years) • ATP 854P (BUL 100%) Targeting the Walloon Coal M
Slide 19: Reserve Targets
BLUE ENERGY Reserve Targets Slide 19
Slide 20: Schedule of Activity
BLUE ENERGY Schedule of Activity Permit Target Cost Activity 2009 2010 2011 3P Estimate Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ATP 854P 150PJ $1.5MM Coreholes (3) Walloons $2.0MM Pilot Certified Reserves GSA Development ATP 818 / 200PJ $2.0MM Coreholes (3-5) ATP 896P $2.0MM Pilot Walloons Certified Reserves
Slide 21: Strategic Partners
BLUE ENERGY Strategic Partners • Korean State owned gas company. • Qld Government Owned Corporation. • World’s largest LNG Importer (26.3 mt in 2008). • Generation capacity in excess of 1,500 MW of electricity. • 3 LNG Receiving terminals (2.7 mt storage). • Both Hydro (4 sites) and thermal generati
Slide 22: Disclaimer
Disclaimer 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 c
Slide 23: Contact and Registered Office
www.blueenergy.com.au info@blueenergy.com.au REGISTERED OFFICE Suite 15A 421 Brunswick Street Fortitude Valley QLD 4006 Ph: +61 7 3332 8800 Fax: +61 7 3332 8867 Slide 23