Aj Lucas Group Limited · ASX:AJL
Aj Lucas — JP Morgan Shale Corporate Access Day 2012
27 slides from Aj Lucas's conference presentation, May 10, 2012
Slide 1: AJ Lucas European Shale Assets Update
For personal use only AJ Lucas European Shale Assets Update JP Morgan Shale Corporate Access Day I 10 May 2012
Slide 2: Presentation Outline
Presentation Outline For personal use only • Who is AJ Lucas? • Why look for shale gas / shale oil in Europe? • Lucas investment in Cuadrilla and Europe • Lancashire Bowland prospect opportunity • How Bowland compares with major shale plays in USA • Public / Government issues • Gas Market in UK • Co
Slide 3: Who is AJ Lucas Group? (AJL.ASX)
Who is AJ Lucas Group? (AJL.ASX) For personal use only Drilling Services Pipelines Infrastructure Exploration Assets • Coal Exploration • Oil & Gas Pipelines • Desalination plants • UK Shale • Gas Production • Water & Waste Water • Waste Water Treatment • Netherlands Shale • Geotechnical • Gathering
Slide 4: Recent US Trends
Recent US Trends For personal use only 6 • Price of gas has halved in 12 months US Henry Hub Index (Midline) 5 • Over 800,000 new jobs created 4 3 • US moving to becoming a net 2 exporter of gas 1 • US awash with methane molecules 0 Apr 11 Jun 11 Aug 11 Oct 11 Dec 11 Feb 12 Apr 12 • Boon to US heavy
Slide 5: Why Europe?
Why Europe? For personal use only • Europe has numerous unexplored unconventional basins with analogous burial history, structure, depositional patterns and pressure regimes to North American resource plays • Numerous opportunities identified by our experts • Europe lagging behind North America in e
Slide 6: Cuadrilla Resources Limited
Cuadrilla Resources Limited For personal use only • Lucas investment in shale exploration in Europe principally through Cuadrilla • Cuadrilla - privately owned UK exploration & production company • Lucas owns 42% of Cuadrilla • Founded in 2006 by management and Lucas • Based in Staffordshire, Englan
Slide 7: Cuadrilla Acreage
For personal use only Cuadrilla Acreage 7
Slide 8: Vertically Integrated E&P Model
Vertically Integrated E&P Model For personal use only • Proven operations management team with global experience • Proven gas finders in unconventional hydrocarbons • Internal controls through company owned and operated services - Drilling rig owned by Cuadrilla - Purpose built / Cuadrilla owned cem
Slide 9: Cuadrilla Drilling Rig
Cuadrilla Drilling Rig For personal use only 9
Slide 10: Cuadrilla Frac Suite & Service Rig
Cuadrilla Frac Suite & Service Rig For personal use only 10
Slide 11: Cuadrilla & Lucas UK Licences
Cuadrilla & Lucas UK Licences For personal use only • Lucas has 25% of these licences • Cuadrilla has 75% of these licences • Lucas has 42% of Cuadrilla • Lucas has effectively 56% of these licences BOWLAND SHALE GAS PLAY BOLNEY / KIMMERIDGE SHALE OIL PLAY AND PORTLAND SAND GAS PLAY BALCOMBE Hz GREA
Slide 12: Lancashire Bowland Licence
Lancashire Bowland Licence For personal use only • Lucas has 25% of licence • Cuadrilla has 75% of licence • Lucas has 42% of Cuadrilla • Lucas has effective 56% of Bowland 12
Slide 13: Bowland in Summary
Bowland in Summary For personal use only • Bowland Basin is a very significant Shale Gas Resource Play • GIIP > 200 tcf • Many places GIIP > 1 tcf / sq.mile • Over 1000m (>3300 ft) thickness of shales and associated lithologies • Shale is naturally fractured (free + adsorbed gas) • Very good quality
Slide 14: Gas Bubbling from New Core
Gas Bubbling from New Core For personal use only Becconsall – 1 7,025ft Grange Hill – 1 10,234ft 14
Slide 15: Stratigraphy
For personal use only Stratigraphy 15
Slide 16: Shale Comparison: Lancashire Bowland vs. Barnett
Shale Comparison For personal use only Lancashire Bowland vs. Barnett • Asbian-Brigantian (Late Miss) • Chesterian (Late Miss) • 3000’+ black shales with • 1000’+ black shales with interbedded lsts interbedded lsts • Basinal/ slope • marine-prodelta/basinal • Fractured carbonate bands • Fractured ca
Slide 17: Gas Surface Density Comparison
Gas Surface Density Comparison For personal use only Note: these are Cuadrilla estimates Play Age Depth Net Thickness Approx. Feet Feet Average Resource Billion cu.ft / sq. mile (GIIP) Barnett Mississippi 6500 - 8500 100 - 600 240 Marcellus Mid Devonian 4500 - 8500 50 - 350 13 Fayetteville Mississip
Slide 18: Maturity v Organic Content
Maturity v Organic Content For personal use only Note: Ro is vitrinite reflectance. It's a measure of the maturity of Kerogens 18
Slide 19: Current Programme
Current Programme For personal use only • Preese Hall-1 drilled to 9,100 ft • Grange Hill-1 drilled to 10,700 ft • Becconsall-1 drilled to 10,500 ft • Elswick-1 producing from 3,500 ft • These wells are vertical • Anna’s Road vertical starts in July, the horizontal later in the year • Previous core
Slide 20: Continuing Exploration of Bowland
Continuing Exploration of Bowland For personal use only • Concentrating on deepest parts (blue, green) • Deepest parts likely to be gassiest • 3D seismic over 150 sq. km (15% of Bowland) • Preese Hall , Grange Hill, Anna’s Road wells within 150 sq. km with Becconsall just outside • Other wells consi
Slide 21: Public Concerns
Public Concerns For personal use only • Groundwater protection - We are thousands of feet below aquifers - Fracking does not have enough energy to crack to aquifers - Wellbore design prevents gas to water - Surface damming, bunds, impermeable barriers • Chemical usage - We are approved to run water
Slide 22: Managing Public Issues
Managing Public Issues For personal use only • Engaged experts well known in region • Separating real risks and hazards from “outrage issues” “When people are outraged, they tend to think the hazard is serious. Trying to convince them that it’s not as serious as they think is unlikely to do much goo
Slide 23: UK Energy Demand
For personal use only UK Energy Demand 23
Slide 24: UK Energy Demand
UK Energy Demand For personal use only 1000 tonnes oil equivalent = 41.68 TJ = 41,680 GJ gas UK Energy Flow chart 2010 : UK production (incl. UK North Sea) = 2,380 PJ / year Imported Natural Gas = 2,110 PJ / year _____________ Total Natural Gas Usage: = 4,497 PJ / year Gas used in Power Generation =
Slide 25: Major Pipelines through Bowland
Major Pipelines through Bowland For personal use only 25
Slide 26: Conclusions
Conclusions For personal use only • Lucas via Cuadrilla has significant interest in huge world scale shale gas acreage in Europe - 680,000 acres in Netherlands = 1061 sq. miles - 350,000 acres in UK = 546 sq. miles - 213,000 acres in Poland = 332 sq. miles • Bowland resource in Lancashire has except
Slide 27: Disclaimer
Disclaimer For personal use only This presentation has been compiled by AJ Lucas Group Limited from sources it believes to be reliable. However, it is not warranted as to its completeness or accuracy. This presentation is not an offer to sell or a solicitation to buy any securities. As it is prepare
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