Blue Energy Limited · ASX:BLU

Blue Energy — Investor Presentation (February 2012)

34 slides from Blue Energy's investor presentation, February 2012

  1. Slide 1: Investor Presentation February 2012

    Investor Presentation February 2012

  2. Slide 2: 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

  3. Slide 3: Blue Energy's Vision

    Blue Energy’s Vision 3,000PJ of 3P reserves in the eastern Australian LNG province by 2014 Slide 3

  4. Slide 4: Blue's Resource and Reserve Potential

    Blue’s Resource and Reserve Potential 20,000PJ ~16,000PJ GIP 10,000PJ 3,000PJ 3P Target 2,788PJ Rec 75PJ Rec GIP Contingent 3P Resources Slide 4

  5. Slide 5: Strategy

    Strategy  Low cost evaluation programs in high graded permits  Leverage information from adjacent competitor acreage  Convert resources to reserves with pilot production wells  Access upside in portfolio and seek new exploration opportunities Slide 5

  6. Slide 6: Reserves/Resources Evolution

    Reserves/Resources Evolution  3P Reserves: 75PJ (annual growth rate = 322%)  3P + 2C: 749PJ  Contingent Resources: 2,788PJ 3C (annual growth rate = 1,307%)  Upside potential in the Maryborough Basin Shale play – Multi TCF potential . 3500 3000 2500 2000 PJ Contingent Resource 3P Reserves 1500 3P

  7. Slide 7: Corporate Snapshot – Asset Spread

    Corporate Snapshot – Asset Spread 1,500 PJ 3P Target 1,000 PJ 3P Target Multi TCF potential 300-500 PJ potential Slide 7

  8. Slide 8: Asset Activity – Bowen Focus

    Asset Activity – Bowen Focus  Monslatt Block -  Blue activity 3 fully cored wells 2 stratigraphic control wells 5 Pilot production wells – 3 now dewatering Delivered - 1,451 PJ 3C Contingent Resources  Sapphire/Central Blocks – Data sharing agreement with Arrow through NSAI  Blue activity 6 full

  9. Slide 9: Asset Overview – Bowen Basin

    Asset Overview – Bowen Basin  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 9

  10. Slide 10: Corporate Snapshot

    Corporate Snapshot Experienced Board and Management SIGNIFICANT SHAREHOLDERS Employees 13 ANZ Nominees 15.7% Stanwell Corporation 12.1% Shares on Issue 722.48m Market Capitalisation $53m KOGAS 8.7% Cash (at 31 Dec 2011) $5m Mathews Capital 7.7% Acreage 21,049km2 Reserves (3P) 75PJ 3P + 2C 749PJ Reso

  11. Slide 11: 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  Ms

  12. Slide 12: Health, Safety and Environment

    Health, Safety and Environment  4 years LTI free  No environmental incidents . Slide 12

  13. Slide 13: 2012 Proposed Work Program

    2012 Proposed Work Program  Bowen Basin  Sapphire Block:  Drill 2 new pilot wells;  Complete and put on test Sapphire 4, 5 & 6  Success case yields up to 322PJ 2P reserves  Monslatt Block: Continue pilot production testing; Complete and test Monslatt 9  Success case yields up to 500PJ 2P and

  14. Slide 14: Program Overview – Bowen Basin

    Program Overview – Bowen Basin  Sapphire Block is adjacent to Shell/Arrow reserves/production – designated for Gladstone  Reserves attributed to block by NSAI – based on adjacent (Arrow) production from Fort Cooper CM  Successful pilot testing at Sapphire 4 will add to reserves  Drilling of Sapp

  15. Slide 15: Program Overview – Bowen Basin

    Program Overview – Bowen Basin  Pilot testing at Monslatt continues  Monslatt 9 extended the field  Establishment of commercial flow rates in Monslatt 5, 7/8, 6 and 9 will deliver up to  500PJ 2P  1,200PJ 3P Slide 15

  16. Slide 16: Commercialization Strategies

    Commercialization Strategies  Domestic Gas Sales  Potential domestic gas shortfall – upward price pressure  Gas Fired Power Generation  Niche position around energy sinks – Bowen Basin coal fields  Micro LNG – Diesel Substitution  High margin fuel substitution concept – low emission alternativ

  17. Slide 17: Upside to Reserves

    Upside to Reserves  Deep CSG potential in current portfolio  Bowen and Surat Basin acreage – deep Moranbah and Walloon sections  Shale Gas potential in current portfolio  Significant potential resource in the Maryborough – close to Gladstone demand – “Company maker” – multi TCF potential  Shale

  18. Slide 18: Sector Consolidation Continues

    Sector Consolidation Continues  CSG Sector consolidation to date 2007 2012 QGC, Arrow, Santos, Origin, QGC/BG, Arrow (Shell/Petrochina) Westside, Blue, Comet, Galilee, Icon Santos (GLNG), Origin (APLNG), Galilee Sunshine Gas, Adelaide, Galilee, Pangaea Westside, Blue, Comet, Exoma, Pangaea, Sydney

  19. Slide 19: In Summary

    In Summary  Blue on track to deliver the vision and strategy  2012 Program targets potential delivery of up to 822PJ 2P and 1,522PJ 3P  Will drill and put on test 3 new pilot production wells in 2012  Will continue to complete, stimulate and test the 5 Monslatt pilot wells  Pursue prospectivity

  20. Slide 20: www.blueenergy.com.au info@blueenergy.com.au

    www.blueenergy.com.au info@blueenergy.com.au Slide 20

  21. Slide 21: Appendix: Asset Overview Bowen Basin

    APPENDIX Asset Overview Bowen Basin ATP814P – Blue Energy 100% Slide 21

  22. Slide 22: Asset Overview – Bowen Basin

    Asset Overview – Bowen Basin Slide 22

  23. Slide 23: Asset Overview – Bowen Basin

    Asset Overview – Bowen Basin  Adjacent to Shell/Arrow reserves/production  Pilot testing continues with three wells de-pressuring  No significant aquifer issues  Drilled Monslatt 9 – extended field  Drilled Sapphire 4 – flowed gas Slide 23

  24. Slide 24: Asset Overview – Bowen Basin

    Asset Overview – Bowen Basin  Deep CSG potential yet to be tested Slide 24

  25. Slide 25: Asset Overview Galilee Basin

    Asset Overview Galilee Basin ATP813P – Blue Energy 100% Slide 25

  26. Slide 26: Asset Overview – Galilee Basin

    Asset Overview – Galilee Basin Slide 26

  27. Slide 27: Asset Overview – Galilee Basin

    Asset Overview – Galilee Basin  5 wells drilled to date  Extensive coals confirmed  Resource Estimate by NSAI  554PJ Contingent Resource  1,143PJ Prospective Resource  Planning underway for additional core program and pilot test wells Slide 27

  28. Slide 28: Asset Overview – Galilee Basin

    Asset Overview – Galilee Basin  Aggressive competitor exploration activity in progress.  Galilee/AGL now flowing gas – first for the basin  Level of interest set by 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

  29. Slide 29: Asset Overview – Galilee Basin

    Asset Overview – Galilee Basin  Our basin position is optimal  Extensive thick coal distribution  Vertical separation of aquifers and coals Slide 29

  30. Slide 30: Asset Overview Maryborough Basin

    Asset Overview Maryborough Basin ATP613P, ATP674A, ATP733A Blue Energy 75% (post farm in) Slide 30

  31. Slide 31: Asset Overview – Maryborough Basin

    Asset Overview – Maryborough Basin Slide 31

  32. Slide 32: Asset Overview – Maryborough Basin

    Asset Overview – Maryborough Basin  Awaiting Permit awards  All requirements satisfied for award  Multiple potential hydrocarbon plays  Conventional  CSG  Shale gas  Beach Energy now majority shareholder in Adelaide Energy – positive result for Maryborough asset  Strategic location for both

  33. Slide 33: Asset Overview – Maryborough Plays

    Asset Overview – Maryborough Plays  Gregory Sandstone – conventional gas potential  Burrum & Tiaro Coal Measures – CSG potential  Shale Gas – Maryborough Fm  Gas indications in Cherwell Mudstone – Gregory River 3 well Slide 33

  34. Slide 34: EIA Assessment

    Asset Overview EIA Assessment  Sparsely explored basin  Thick marine shale established  Compares well with other Australian shale basins  Potentially significant resource Source: EIA report April 2011 Slide 34

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