Origin Energy Limited · ASX:ORG
Origin Energy — JPMorgan Coal Seam Methane Corporate Access Day 2007
31 slides from Origin Energy's conference presentation, Oct 8, 2007
Slide 1: ASX announcement cover note
For personal use only To Company Announcements Office Facsimile 1300 300 021 Company Australian Stock Exchange Limited Date 8 October 2007 From Bill Hundy Pages 31 Subject PRESENTATION Attached for your information is a presentation being made by Mr Grant King, Managing Director to the JPMorgan Coal
Slide 2: Stepping on the Gas
For personal use only "Stepping on the Gas" JPMorgan's Coal Seam Methane Corporate Access Day 08 October 2007 1
Slide 3: Disclaimer
Disclaimer For personal use only Any forward looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect and these statements speak only as of the date of this presentation. This presentation should not be relied upon as a recomm
Slide 4: Outline
Outline For personal use only • CSG supply Evolution of CSG in Australia Origin’s CSG position CSG production and contract position • Origin CSG project updates • Gas Demand • Case study: Darling Downs - All references to $ are references to Australian dollars unless otherwise specifically mar
Slide 5: Origin has long believed CSG will play a significant role in gas supply
Origin has long believed that CSG will play a significant role in the supply of gas to eastern Australia… For personal use only A recent Wood-Mackenzie study* has found • Gas demand in Eastern Australia will post a strong growth of 3.8% per annum to reach 1,200 PJ per annum by 2025 • The power gener
Slide 6: Since 2000 CSG reserves have grown to over 6,400 PJ
Since 2000 CSG reserves have grown from a few hundred PJ to over 6,400 PJ, with significant additions coming at For personal use only regular intervals and estimates of a further 6,000 PJ* of CSG potential 7,000 CSG Reserves in Queensland by Company# 6,000 Other AGL QGC 5,000 Arrow CH4 2P reserves -
Slide 7: Origin is adding value to its CSG resources
Origin is adding value to its CSG resources by acquiring new acreage, turning resources into reserves, developing production capacity & signing contracts to monetise reserves For personal use only • Current key assets are: Bowen Basin (Fairview, Spring Gully) Surat Basin Undulla Nose (Talinga, O
Slide 8: Origin holds over 17,000 km2 of CSG leases
October 2007 marks 11 years since Origin acquired its first CSG interests in the Peat field, and Origin now holds over 17,000 km2 of CSG leases in the Bowen and Surat Basins*… For personal use only • Origin’s Bowen Basin CSG interests include: Spring Gully (96-99%) operator Peat (100%) operator
Slide 9: Origin carries 2,470 PJ of 2P CSG reserves
As at 30 June 2007 Origin carries 2,470 PJ of 2P CSG reserves and is likely to book significant additional reserves over the next few years… For personal use only 2,500 Bowen Basin Bowen Basin CSG CSG Origin's CSG Reserves Fairview && Spring Fairview Spring Gully Gully Fields Fields 2,250 2P reserve
Slide 10: Significant growth in CSG production
There has been significant growth in CSG production with industry supplying 70 PJ and over 50% of the Queensland market in 2006 For personal use only 120 120 CSG Production in Queensland by Company 110 110 Origin's CSG Production 100 100 90 90 RTA Contract Annual Production (PJ) 80 80 22PJ/a 70 70 P
Slide 11: Over 50% of industry 2P reserves contracted or committed
Origin estimates that over 50% of existing industry 2P reserves are contracted or committed… For personal use only Coal seam gas reserves and potential Share of contracted / committed CSG reserves by Company 5,000 Additional Potential* Origin 4,500 54% Uncontracted 4,000 Contracted / Committed 3,500
Slide 12: Spring Gully
Spring Gully For personal use only Origin Energy's Spring Gully CSG processing facilities are located 11 70 km north of Roma in central Queensland 11
Slide 13: Spring Gully history and status
Spring Gully History For personal use only • Origin Energy: Acquired Transfield interests in ATP 701P JV area in December 2001 and assumed operatorship. Acquired Tri-Star interests in ATP 592P, ATP 623P and ATP 701P JV areas in February 2002 and assumed operatorship. • Current Status 1 ATP, 4
Slide 14: Spring Gully phases I to IV
Spring Gully phases I to IV For personal use only PL 195 PL 195 PL 204 PL 204 Strathblane Wellhead Strathblane 25 wells Gas Plant Gas Plant Strathblane Gas Plant 2x3500 HP compression 24 TJ/d capacity Evaporation Pond Spring Gully Gully Completed Spring Gas Plant Plant 1.5 - 3 Ml/d evap capacity Gas
Slide 15: Spring Gully Phase V
Spring Gully Phase V For personal use only Includes: • 60 development wells • 120 km of trunkline & Strathblane flowlines Strathblane Gas Plant Gas Plant • Additional 2X3500 HP compression at Strathblane. Spring Gully Spring Gully • Construction of Taloona Gas Plant Gas Plant Gas Plant 3X3500 HP P
Slide 16: Water Management
Water Management For personal use only • Initial development of Spring Gully is based on using evaporation ponds to handle water production • Reverse osmosis has been trialed over 7 to 8 months as a potential treatment technology. • This process strips the water of salts and produces a potable water
Slide 17: Origin's operating history in the Walloons
Origin’s operating history in the Walloons For personal use only • Origin as Operator since Jan 2001 has: Drilled 22 cored slimholes Recorded 4 seismic surveys Drilled 5 production pilots Conducted 4 prod tests Talinga production pilot has now achieved commercial flow rates in both Upper J
Slide 18: Walloons Development (Operated only)
Walloons Development (Operated only) • Potential scenario to ramp up to 120 TJ/d For personal use only • Approx 130 wells needed to meet plateau • Only Talinga & Orana fields required to meet target • Phase 1A Development in 2008 - 10 Talinga and 17 Orana development wells • Well design and spacing
Slide 19: Additional interests in the Undulla Nose region
Origin acquired additional interests in the Undulla Nose region from Pangaea in 2006 (operated by QGC) For personal use only Interests include •Argyle/East (40.625%) •Lauren (40.625%) •Kenya (40.625%) •Codie (40.625%) •Kenya East (30.725%) •Bellevue (30.725%) Gas contracts include • 41% share of a 7
Slide 20: Walloon Exploration Forward Plan
Walloon Exploration Forward Plan For personal use only • Over next two years 40 exploration/appraisal wells in Origin Operated areas and potentially up to 50 in non- operated areas • Increase Undulla Nose reserves and commence reserves booking outside this region • Production pilots: Talinga (ongo
Slide 21: Production history in CSG is still limited
Production history in CSG is still limited, and so average well deliverability, life and reserves are still estimates and vary from area to area For personal use only Spring Gully and Fairview fields - Spring Gully and Undulla Nose wells - Normalised well rates from time of first production Schemati
Slide 22: Monetising CSG: accessing new customers and markets
Given the growth to date and continuing growth potential of CSG the key issue for monetising CSG is how to access new customers and markets For personal use only Project Gas demand by State Demand overlain with gas production by reserves category Source: Wood Mackenzie – December 2006 21 21
Slide 23: Power generation as the key factor in gas demand growth
Domestically the most significant factor in demand growth will be the amount of gas required in power generation… For personal use only …which will be influenced by Australia’s response to a carbon constrained global economy 22 22
Slide 24: Gas can meet required growth in the NEM through to 2020
By 2010 significant new generation will be required, and Origin estimates that gas is capable of meeting all of the For personal use only required growth in the NEM through to around 2020… Electricity Growth • Growth in electricity demand will create a 350 demand wedge through to 2020 of around 320
Slide 25: Electricity retail business provides opportunity for generation growth
Origin’s electricity retail business provides a substantial opportunity for growth in generation Energy Demand For personal use only Peak Demand 35 7,000 Annual Demand and Generation dispatched (Twh) Peak Demand and Installed capacity (MW) 30 6,000 25 5,000 20 4,000 15 3,000 10 2,000 5 1,000 0 0 Ori
Slide 26: Integrated Darling Downs Power Station project
Integrated Darling Downs Power Station project At 630 MW the Darling Downs combined cycle power station will be the largest CCGT on the NEM… • This will be one of the lowest cost power For personal use only stations in the National Electricity Market • The power station has a low life cycle cost, wh
Slide 27: Expansion of Spring Gully and Talinga fields
… and expansion of the Spring Gully and Talinga fields will provide a low cost flexible gas supply For personal use only •The gas requirements will underwrite phase 5 of the Spring Gully development. This will be sufficient to take Spring Gully to its optimum production rate of 150 TJ/day. •The Spri
Slide 28: Managing gas purchasing and sales to leverage upstream development
Origin has managed its gas purchasing and sales to leverage additional upstream development by reducing contracts to buy gas and securing new loads - particularly in Queensland For personal use only 300 ToP to ACQ buy from Origin buy from Origin JV partners 250 buy from 3rd parties Power generation
Slide 29: Deepening integration in Origin's business
Each year sees a deepening integration in Origin’s business… For personal use only Fuel Retailer Generator 300 ToP to ACQ Energy Demand Peak Demand buy from Origin 35 7,000 Annual Demand and Generation dispatched (Twh) buy from Origin JV partners 250 buy from 3rd parties Peak Demand and Installed ca
Slide 30: For personal use only
For personal use only 29
Slide 31: For more information
For more information For personal use only For more information on Origin Energy please contact Angus Guthrie Manager, Investor Relations Email: angus.guthrie@originenergy.com.au Office: +61-2-8345 5558 Mobile: + 61-4-1786 4255 Alternatively visit our website www.originenergy.com.au and follow the p
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