State Gas Ltd. · ASX:GAS
State Gas — Investor Presentation (June 2022)
20 slides from State Gas's investor presentation, Jun 22, 2022
Slide 1: Investor Presentation
Supplying East Coast Australia’s energy needs, sustainably and environmentally responsibly Investor Presentation June 2022 ASX:GAS
Slide 2: Disclaimer
Disclaimer Disclaimer Future Performance This presentation (Presentation) has been prepared by State Gas Limited (ACN 617 322 This Presentation contains certain “forward looking statements”. Forward-looking 488) (State Gas). The Presentation and information contained in it is being provided to state
Slide 3: Project Areas
Project Areas ➢ Reid’s Dome, Rolleston-West & New Blocks ➢ 2630 km2 of combined acreage ➢ PL 231 – 181 km2 ➢ ATP 2062 – 1414 km2 ➢ New blocks (Santos JV) – 1035 km2 ➢ Highly prospective Bowen Basin sequence ➢ Multiple conventional and unconventional targets ➢ No domestic gas reservation ➢ Queensland
Slide 4: Highlights
Highlights Sustained high gas pricing Market signals presenting the opportunity 2-stage plan for quick market access Reid’s Dome conventional Rolleston-West Strategically located Close to infrastructure networks & Wallumbilla price hub Market optionality CSG & conventional gas, no domestic reservati
Slide 5: New Acreage Award
New Acreage Award ➢ State Gas & Santos QNT preferred tenderers ➢ State Gas 35%, Santos 65% & operator ➢ PLR2021-1-2 ➢ 727 km2 ➢ Connecting State Gas’ Reid’s Dome & Santos operated interests to east ➢ PLR2021-1-3 ➢ 308 km2 ➢ 2 export pipelines passing through ➢ Target: Bandanna coals - producing near
Slide 6: East Coast: Increasing supply shortages forecast
East Coast: Increasing supply shortages forecast ACCC Forecast Gas Supply and Demand, Southern States “The long term supply outlook has deteriorated and supply shortfalls are expected unless new supply is brought online” ACCC Gas Inquiry January 2022 Interim Report Source: ACCC Gas Inquiry January 2
Slide 7: Gas Market Prices Going Up
Gas Market Prices Going Up Internationally And Domestically Source: Australian Financial Review: Electricity Outages drive up east coast gas prices, 18 April 2022 Not just Ukraine 7
Slide 8: Gas Market Dynamics Changing
Gas Market Dynamics Changing Demand will be long term But supply not responding Average Nth America Rigs operating v Henry Hub Natural Gas Spot Price 1000 900 800 700 600 US$/GJ No rigs 500 400 300 200 100 0 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 A
Slide 9: Seizing the market window…
Seizing the market window… Target 2024 Growth to come Synergistic Development Optimised supply Reid’s Dome -a ✓ Adjacent Projects ✓ No domestic gas ✓ Rolleston-West strategic launch pad: reservations ✓ Aligned ownership ✓ Conventional gas interests across ✓ CSG for regular pipeline quality ✓ 2 new l
Slide 10: PL-231 Reid's Dome
PL-231 ➢ Proven CSG ➢ Pipeline spec. Conventional Gas Reid’s Dome Beds (CSG) Estimated Contingent Resources 1C 2C 3C 74 PJ 126 PJ 223 PJ Cattle Creek (conventional) Estimated Contingent Resources Nyanda-4 flare 1C 2C 3C 2.2 PJ 5.2 PJ 7.1 PJ Reid’s Dome Beds (tight gas) LEGEND Estimated Prospective R
Slide 11: ATP-2062 Prospectivity
ATP-2062 Prospectivity ➢ CSG and Conventional Gas Prospects Rougemont CSG Fairway Estimated Contingent Resources Inglis prospect 1C 2C 3C Bandanna West 53 PJ 91 PJ 161 PJ Bandanna West Fairway CSG ATP-2062 Estimated Prospective Resources Rougemont 1C 2C 3C 92 PJ 184 PJ 293 PJ Conventional Gas Estima
Slide 12: PLR2021-1-2 Prospectivity
PLR2021-1-2 Prospectivity Rougemont ➢ State Gas 35%, Santos 65% & Operator ➢ Large area 727 km2 ➢ Bandanna Formation CSG Rougemont Ext. ➢ Net coal demonstrated by Consuelo stratigraphic holes, Rougemont and Rewan-1 ➢ Gas content proven by Rewan-1 and Rougemont wells Morella ➢ Southwest extension of
Slide 13: PLR2021-1-3 Prospectivity
PLR2021-1-3 Prospectivity ➢ State Gas 35%, Santos 65% & Operator Huntly Deep ➢ 308 km2 ➢ Bandanna Formation CSG ➢ Net coal and gas content demonstrated by Membrance and Corella Creek wells ➢ Analogous to Arcadia Valley (Bandanna CSG) ➢ Conventional gas Membrance-2 Membrance ➢ Mantuan Formation and A
Slide 14: A Path to Rapid Development
A Path to Rapid Development ➢ Reid’s Dome conventional gas ➢ Pipeline quality gas, no produced water ➢ Compression & dehydration the only “processing” required ➢ Small scale export pipeline ➢ Lower pressure, lower cost ➢ ~60km length ➢ Route through Rougemont area ➢ Near pipeline quality gas ➢ Enabl
Slide 15: The Path Forward
The Path Forward • Finalise route Confirm Pipeline • Design • Permit Confirm Rougemont • New horizontal well potential • Production test to confirm deliverability Build, Operate, Sell 15
Slide 16: Supply-Demand & Indicative Timing
Supply-Demand & Indicative Timing ACCC Forecast Gas Supply and Demand, Southern States H2-21 H1-22 H2-22 H1-23 H2-23 H1-24 H2-24 H1-25 H2-25 Confirm scope First Gas Reid’s Dome First Gas Rolleston-West Source: ACCC Gas Inquiry January 2022 Interim Report 16
Slide 17: Carbon Management Project
Carbon Management Project ➢ JV with minerals explorer Rockminsolutions Pty Ltd ➢ Buckland Basaltic Formation ➢ 70 km2 area ➢ 200 – 330 m thick ➢ Investigating decarbonisation options: ➢ Advanced weathering ➢ Low carbon cementitious material ➢ In-situ carbon mineralisation (Carbfix process) ➢ Western
Slide 18: Executive Chairman quote on 3C resource
“With nearly 400 PJs of geographically blessed 3C Resource in a tight gas market, State Gas’ task is to convert that resource into reserves in time to address the upcoming national gas shortage." Richard Cottee Executive Chairman State Gas 18
Slide 19: Appendix – Competent Person Statement
Appendix – Competent Person Statement Competent Person Statement and ASX Listing Rules Chapter 5 - Reporting on Oil and Gas Activities The estimate of Reserves and Contingent Resources for the Reid’s Dome and Rougemont Gas Projects provided in this Presentation, is based on, and fairly represents, i
Slide 20: Contact
Contact Level 8 46 Edward Street Brisbane QLD 4000 Australia Email info@stategas.com stategas.com