Beetaloo Energy Australia Limited · ASX:BTL
Beetaloo Energy Australia — Macquarie SMID Oil & Gas Day 2020
20 slides from Beetaloo Energy Australia's conference presentation, Oct 12, 2020
Slide 1: The Shale Gas Revolution Takes Hold in Australia
ASX:EEG The Shale Gas Revolution Takes Hold in Australia Macquarie SMID Oil & Gas Day, October 2020
Slide 2: Corporate Snapshot
Corporate Snapshot Capital Structure ASX Share Price Shares on issue1 323.5m Share price A$0.335 Market cap A$108m Net (debt) / cash2,3 ~A$12m Enterprise value ~A$96m Cash at bank ~A$21m Corporate Structure Top Shareholders Global Energy and Resources 8.7% Macquarie Bank Limited 8.2% 100% 100% Elphi
Slide 3: Empire Board & Management Team
Empire Board & Management Team Paul David John Espie John Evans Warburton Alex Gerahty Peter Kylie Cleary Ben Johnston Underwood Arizabaleta Alex Bruce Board of Directors Management Prof. John Warburton Alex Underwood – John Gerahty – Non- Paul Espie AO – Chairman Peter Cleary – Non- David Evans – C
Slide 4: 2020 – News in the Year to Date
2020 – News in the Year to Date • When COVID-19 impacted energy markets, Empire took pro-active steps to protect the balance sheet • The impact of low US gas prices was partly mitigated by hedging • Netherland, Sewell & Associates assessed a total best estimate prospective resource for our Northern
Slide 5: Empire Energy Leading in Australia's New Onshore Hydrocarbon Province
Empire Energy Leading in Australia’s New Onshore Hydrocarbon Province A land position of 58,000 km2 across McArthur Basin & Beetaloo Sub-Basin 4
Slide 6: Major NT Shale Gas Operators
Major NT Shale Gas Operators • Major oil and gas companies hold substantial acreage positions in the Beetaloo Sub-basin McArthur Basin • Origin drilling 2 fracked horizontal wells in 2020 / 21 testing Velkerri Shale and Kyalla Formation • Santos to drill 2 fracked horizontal wells in 2021 testing Ve
Slide 7: NT Shale Gas Resources rival the prolific US Marcellus Shale
NT Shale Gas Resources rival the prolific US Marcellus Shale Trillion Cubic Feet (Tcf) comparison 300 The resource potential of the Beetaloo-McArthur Basin 262 250 rivals the USA’s premier 250 Marcellus Shale 200 150 “Prospective Resource” is the estimated quantities of petroleum 134 that may potent
Slide 8: Empire's NSAI certified NT Prospective Resource Estimate
Empire’s NSAI certified NT Prospective Resource Estimate Unrisked Gross (100%) Unrisked Gross (100%) Undiscovered Original Prospective Gas Resources Prospective Oil Equivalent Gas-in-Place (BCF) (BCF) Volumes (MMBOE) Reservoir Low Best High Low Best High Low Best High Estimate Estimate Estimate Esti
Slide 9: Analogous with the major USA shale basins
Analogous with the major USA shale basins NT Velkerri / Kyalla Shales 10) Equivalent Endowment porosity and (green line) maturity equivalent to 1) Equivalent 9) 3x the gas depositional three stacked per unit of area Velkerri environment Marcellus shales 300 7.0% 1.9% 6.7% 1.8% 8) Velkerri B interval
Slide 10: Beetaloo Shales far thicker than US top producers
Beetaloo Shales far thicker than US top producers • The Velkerri Shale is a North American Shales continuous gas accumulation Velkerri Shale across the Greater Beetaloo Sub-basin (GBSB), subject to thermal maturity • The Middle Velkerri A, B and C are the most consistent and well-developed shale int
Slide 11: Horizontal drilling, fracking and the shale gas industry have transformed the USA energy market
Horizontal drilling, fracking and the shale gas industry have transformed the USA energy market, and its global geopolitics… The Utica and Marcellus Basins are analogous to the Beetaloo-McArthur Billion cubic feet of gas per day • Rest of US shales • Fayetteville • Haynesville • Niobrara • Eagle For
Slide 12: Markets for Empire's Hydrocarbons
Markets for Empire’s Hydrocarbons Australian Gas Pipeline Network • LNG Export from Darwin via backfill or expansion at Ichthys LNG (INPEX) / Darwin LNG (Santos) • Downstream / Petrochemicals at Darwin including proposed Coogee Methanol Facility, Darwin Clean Fuels Refinery • Northern Australia Gas
Slide 13: Asia may require 32Tcf of LNG Imports by 2035
Asia may require 32Tcf of LNG Imports by 2035 BP Energy Outlook 2020 – Forecast Asian LNG Imports • BP’s rapid energy transition scenario assumes emissions fall to the middle of the range of ‘well below 2-degree’ scenarios contained in the “BUSINESS AS USUAL” “RAPID” ENERGY TRANSITION SCENARIO 2019
Slide 14: Major Activity in the Beetaloo to Date
Major Activity in the Beetaloo to Date NT Fracking Moratorium (Sep 2016 – Apr 2018) 2012 2013 2014 2015 2016 2017 2018 2019 2020 Operational Highlights ▪ Pangaea ▪ Santos ▪ Pangaea ▪ Origin Energy ▪ Origin books 2C ▪ End of Northern ▪ Empire completes ▪ Santos announces Resources Tanumbirini-1 Resou
Slide 15: Beetaloo 2020 Season an eye-opener for Australian shale gas
Beetaloo 2020 Season an eye-opener for Australian shale gas • Empire completed a 231-line km 2D seismic program in early 2020 • Santos’ Tanumbirini-1 vertical fracture stimulated flow test exceeded expectations with flow rates > 1.2mmcfd with >90% methane, less than 5% total inert content and ethane
Slide 16: Zooming in – Position of Empire's Carpentaria-1 well
Zooming in – Position of Empire’s Carpentaria-1 well 15
Slide 17: Carpentaria-1 Drilling Update
Carpentaria-1 Drilling Update Well Update – Carpentaria-1 0m ✓ Empire has successfully drilled to 1,907m and is drilling ahead ✓ The well has encountered an extensive column of liquids rich gas in the Velkerri Shale Formation 500 m ✓ The Velkerri Formation in Carpentaria-1 is nearly 1,000m thick ✓ T
Slide 18: Empire's Liquids Rich Velkerri Shale Gas
Empire’s Liquids Rich Velkerri Shale Gas 88 63 km km • Section has been flattened on the Middle Velkerri Member • Contains Empire’s technical interpretation of gas wetness ratios of mud gas chromatography while drilling • Colour scale of gas wetness, although based on actual gas ratios, is illustrat
Slide 19: Shale Gas Takes Hold in Australia
ASX:EEG Shale Gas Takes Hold in Australia - Empire Energy is the Australian hydrocarbon player offering the most direct market exposure to the exciting future of both the McArthur and Beetaloo Basins in the Northern Territory Alex Underwood Managing Director info@empiregp.net +612 9251 1846 This pre
Slide 20: Disclaimer
Disclaimer This presentation has been prepared by Empire Energy Group Limited (“Empire” or the “Company”). The information in this presentation is information of a general nature and is subject to change without notice. The information in this presentation does not purport to be complete, nor does i
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