Blue Energy Limited · ASX:BLU

Blue Energy — Shareholder Meeting (November 2012)

25 slides from Blue Energy's shareholder meeting presentation, Nov 15, 2012

  1. Slide 1: AGM Presentation

    Blue Energy Limited AGM Presentation 15 November 2012

  2. Slide 2: Disclaimer

    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 variab

  3. Slide 3: Performance Scorecard

    Performance Scorecard Goal Achievement 5 Year LTI milestone reached  Environment, Health and Safety Zero significant environmental incidents 4 wells completed and put on test  Pilot Testing No commercial rates as yet  Add to reserves Increased 3P Reserves by 84% Increased Contingent Resources by

  4. Slide 4: Level of Regulation

    External Environment New Government elected Well stimulation restrictions Nature Conservation Act Wild River Legislation inplemented Well design restrictions introduced Level of Regulation New Land Access guidelines implemented Urban Land Policy relinquishment requirement All Ords Index Baseline Wat

  5. Slide 5: 2012-13 Corporate Goals

    2012-13 Corporate Goals  Zero Environment and Safety issues  Pilot production goal – commercial rate from at least two pilots  Add reserves – 1,000PJ’s 3P  Expand and monetise the portfolio Slide 5

  6. Slide 6: Operational Update

    Operational Update  Sapphire 4 - hydraulic stimulation conducted  Sapphire 5 new drill  Pilot production testing - Monslatt Pilots and Sapphire 4  No commercial rates to report yet  Native title agreements on Cooper Blocks executed  Initiated Native Title discussions - South Georgina Basin Sli

  7. Slide 7: Corporate Snapshot

    Corporate Snapshot ASX Listed Company (BUL) Blue Energy’s Vision Resource Base 3,000PJ of 3P reserves in the eastern Australian LNG province by 2014 Reserves (3P) 75PJ 3P + 2C 749PJ Resource Base (3P + 3C rec) 2,890PJ Employees 13 Cash (at 30 September 2012) $20m Acreage 54,377km2 Slide 7

  8. Slide 8: Safety and Environment

    Safety and Environment Milestone:  5 years 3 months of operations without a Lost Time Injury Metrics: 39 wells drilled 29,000 metres drilled (cumulative over the 5 years) 307,125 man hours worked (160 man years) 14 different rig contractors utilised  Active participant in regional aquifer study in

  9. Slide 9: Community

    Community  Good faith negotiation on land access  Consultation on farm operations  No Land Court actions  Respect for Cultural Heritage values  Positive responses to Community Forums  Positive contribution to community infrastructure Slide 9

  10. Slide 10: Forward Activity Plan

    Forward Activity Plan Permit Basin Activity 2012 2013 2014 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ATP1114A, Georgina Native Title/EA 1117A, 1123A Seismic acquisition Drilling ATP 814P Bowen Pilot testing Sapphire 5 Drilling ATP 854P Surat Coreholes Wet season Wet season Wet season Pilot Well Seismic ATP 813P

  11. Slide 11: Asset Portfolio

    Asset Portfolio  Largest acreage holding of non export LNG explorers  Acreage in producing basins: Cooper: 5,357km2 Shale Basins Bowen: 6,685km2 Surat: 5,785km2  Acreage in frontier basins: Georgina: 21,351km2 Carpentaria: 7,996km2 Maryborough: 3,358km2 CSG Basins Galilee: 4,158km2 Total Acreage

  12. Slide 12: Southern Georgina Basin

    Southern Georgina Basin ATP1112A, 1117A, 1123A Blue Energy 100% Slide 12

  13. Slide 13: Georgina Basin Acreage

    Georgina Basin Acreage  Large position – 21,300km2 (5.3 million net acres)  Blue Energy is Operator and is 100% equity holder  Basin has proven Petroleum System with conventional and non-conventional potential  Large potential – up to 48 billion barrel oil potential in adjacent permits (EP103, 1

  14. Slide 14: Southern Georgina Basin Activity

    Southern Georgina Basin Activity  Proven hydrocarbon basin  Owen 3 well  Intersected oil in:  Lower Arthur Creek Shale  Thorntonia Limestone  Well is on production test. Oil stained core from Owen 3 (Courtesy Petrofrontier) Slide 14

  15. Slide 15: Bowen Basin

    Bowen Basin ATP814P Blue Energy 100% Slide 15

  16. Slide 16: Proximity to Production – ATP814P

    Proximity to Production – ATP814P  Resources and Reserves  3P: 75PJ  3C: 2,234PJ  Pilot testing - four wells de-pressuring  Sapphire 4 - first hydraulic fracture stimulation  Sapphire 5 planning well advanced Slide 16

  17. Slide 17: Competitor Activity and Infrastructure – ATP814P

    Competitor Activity and Infrastructure – ATP814P  Blue acreage has low well density  Very active work program in Shell/PetroChina permits  Current competitor gas production:  46TJ/day  16PJ pa  Gas export infrastructure being developed Slide 17

  18. Slide 18: Galilee Basin

    Galilee Basin ATP813P Blue Energy 100% Slide 18

  19. Slide 19: Galilee Basin - Underexplored

    Galilee Basin - Underexplored  5 core wells  Production testing adjacent  Resource Estimate  554PJ Contingent Resource  1,143PJ Prospective Resource  Resource estimate only covers 25% of acreage  Infrastructure and gas demand is developing - large coal projects in eastern part of basin Slide

  20. Slide 20: Adjacent Activity – Galilee Basin

    Adjacent Activity – Galilee Basin  Aggressive competitor activity  Adjacent CSG pilot flowed gas  Deal flow 2009: AGL spent $37m to earn 50% in ATP529P 2010: CNOOC farming into Exoma acreage for $50m to earn 50% interest in 26,800km2 Slide 20

  21. Slide 21: Maryborough Basin

    Maryborough Basin ATP613P, ATP674A, ATP733A Blue Energy 75% (post farm-in) Slide 21

  22. Slide 22: Maryborough Basin – Good Location

    Maryborough Basin – Good Location  Petroleum system identified  Multiple potential hydrocarbon plays  Conventional  CSG  Shale gas  Strategic location for both domestic and export gas supply.  Petroleum exploration history from the 1950’s. Slide 22

  23. Slide 23: Maryborough Basin – Independent Assessment

    Maryborough Basin – Independent Assessment  EIA independently defines basin potential  Potentially significant resource  Thick marine shale  Compares well with other Australian shale basins Source: EIA report April 2011 Slide 23

  24. Slide 24: Summary

    Summary  Blue has exposure to large CSG and shale plays, the subject of current farm in activity  Blue will leverage its equity position by farming down but retaining operatorship.  Blue will continue the process to convert CSG resources to reserves  Active exploration and testing program Slide

  25. Slide 25: www.blueenergy.com.au info@blueenergy.com.au

    www.blueenergy.com.au info@blueenergy.com.au Slide 25

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