Aj Lucas Group Limited · ASX:AJL
Aj Lucas — Investor Presentation (April 2018)
22 slides from Aj Lucas's investor presentation, Apr 26, 2018
Slide 1: ASX cover letter: UK shale gas investor briefing
AJ Lucas Group Limited ABN: 12 060 309 104 1 Elizabeth Plaza North Sydney NSW 2060 PO Box 538 North Sydney NSW 2060 T (02) 9490 4000 F (02) 9490 4200 www.lucas.com.au 26 April 2018 For personal use only Please find attached a presentation for the purpose of briefing investors on our UK shale gas inv
Slide 2: UK Shale Gas Development Update
UK SHALE GAS DEVELOPMENT UPDATE For personal use only 26 April 2018 Information Pack AJ Lucas Group LDS February 2016
Slide 3: Disclaimer
Disclaimer For personal use only This Presentation has been prepared by AJ Lucas Group Limited (ACN 060 309 104) (AJL). Summary information • This Presentation contains summary information about AJL. This information is of a general nature and does not purport to be complete. This Presentation shoul
Slide 4: Compelling macro support for UK shale gas development
Compelling macro support for UK shale gas development For personal use only UK energy consumption by fuel type1 Importance of natural gas to the UK economy • More than a third of the UK’s energy comes from natural gas. • 80% of UK homes heated by gas – entrenched, high switching costs. Increasing re
Slide 5: Strong UK Government support for domestic shale gas industry
Strong UK Government support for domestic shale gas industry For personal use only Statements from UK Prime Minister Theresa May (October 2017): “I think that shale gas has the potential to power economic growth in this country and to support thousands of jobs in oil and gas and other sectors. It wi
Slide 6: Import reliance & reduced storage exposes UK to price spikes
Import reliance & reduced storage exposes UK to price spikes, supply constraints, geopolitical shocks For personal use only Extended cold spell across Europe drove natural gas prices to record highs • National Grid (operator of UK’s gas transmission system) issued a formal deficit warning on 1 March
Slide 7: Bowland gas extraction potential based on independent British Geological Survey
Bowland gas extraction potential based on independent British Geological Survey For personal use only • British Geological Survey (BGS) has estimated Map of the Bowland shale total gas in place in Bowland shale of 1,329 trillion cubic feet (tcf) (central estimate; lower and upper range 822 tcf and 2
Slide 8: Bowland shale potentially attractive for commercialisation
Bowland shale potentially attractive for commercialisation For personal use only Representative Bowland shale geology Shale thickness (>1 km) Shale located several enables multiple horizontal thousand feet below aquifers wells at different stratas Proximity to local and Bowland shale demonstrated na
Slide 9: Bowland Shale Activities
For personal use only BOWLAND SHALE ACTIVITIES Preston New Road exploration site, Lancashire
Slide 10: Cuadrilla one of three significant operators in Bowland shale
Cuadrilla one of three significant operators (gross licence >2,000km2) in Bowland shale For personal use only • Cuadrilla-operated licences in the PEDLs 290, 333, 347 Bowland shale total 2,391 km2 Cuadrilla 100% (590,000 acres). PEDL 165 Cuadrilla 51.25% • One of three significant operators Spirit E
Slide 11: Cuadrilla's Bowland exploration activity focused on the Fylde area in Lancashire
Cuadrilla’s Bowland exploration activity has focused on the prospective Fylde area in Lancashire For personal use only • Cuadrilla operates licences in the Lancashire region totalling 1,120 km2 (PEDL 165 and EXL 269). Preese Hall fracked and Roseacre Wood approval • AJL effective interest 48.0%. flo
Slide 12: Preston New Road: hydraulic fracturing expected in calendar Q3 2018
Preston New Road: hydraulic fracturing expected in calendar Q3 2018 For personal use only Preston New Road Phase exploration programme • Vertical drilling complete to a depth of over 2,700 metres, through Upper and Lower Bowland Shales. • First horizontal well completed through Lower Bowland with a
Slide 13: Recent PNR site photos
Recent PNR site photos For personal use only 12
Slide 14: Spirit Energy PEDL farm-in
Spirit Energy1 PEDL 165 farm-in For personal use only Spirit Energy PEDL 165 farm-in summary (25% stake) Contribution GBP (millions) USD (millions) Up-front payment (June 2013) 40.0 Initial carry (fully utilised) 60.0 Contingent carry 2 46.7 Total farm-in contributions 146.7 0.0 Contribution per 1%
Slide 15: Preston New Road planning permissions reaffirmed; Roseacre Wood consent process progressing
Preston New Road planning permissions reaffirmed; Roseacre Wood consent process progressing For personal use only Preston New Road planning Roseacre Wood consent process Future planning considerations permissions reaffirmed progressing October 2016 planning decision Planning approvals to date UK Gov
Slide 16: Conceptual development options to minimise surface impact and optimise efficiency
Conceptual development options to minimise surface impact and optimise efficiency For personal use only Multi-well production pad (conceptual) Multiple productive zones within shale (conceptual) 15
Slide 17: Balcombe Licence Activities
For personal use only BALCOMBE LICENCE ACTIVITIES Preston New Road exploration site, Lancashire
Slide 18: Balcombe licence (PEDL 244) farm-out to accelerate exploration timeline
Balcombe licence (PEDL 244) farm-out to accelerate exploration timeline For personal use only • Cuadrilla and AJL recently announced an agreement for LSE-listed Angus Energy Plc (Angus) to acquire a 25% stake in PEDL 244 in the Weald Basin. PEDL 244 Cuadrilla 56.25% • Angus will become operator of P
Slide 19: Other UK Shale Gas Industry Activity
For personal use only OTHER UK SHALE GAS INDUSTRY ACTIVITY Preston New Road exploration site, Lancashire
Slide 20: Other leading UK shale gas operator activity
Other leading UK shale gas operator activity For personal use only INEOS iGas Energy Third Energy • Multinational chemicals company, • UK publicly listed company. • Third Energy is looking to fracture and Britain’s largest privately owned firm. • April 2017: announced completion of flow test its exi
Slide 21: Appendix: Cuadrilla-Operated Shale Licence Acreage
For personal use only APPENDIX CUADRILLA-OPERATED SHALE LICENCE ACREAGE Preston New Road exploration site, Lancashire
Slide 22: Cuadrilla-operated shale licence acreage
Cuadrilla-operated shale licence acreage For personal use only Licence area Cuadrilla net AJL effective licence area 2 PEDL km Acres Cuadrilla stake Other licence holder/s licence area (km2) km2* Acres Bowland - Lancashire region 165 1,065 51.3% Spirit Energy (25%), AJL (23.75%) 546 509 EXL 269 55 5