Slide 1: Petratherm Annual General Meeting
Petratherm Annual General Meeting For personal use only Company and projects update Managing Director Terry Kallis Exploration Manager Peter Reid 25 November 2011
Slide 2: For personal use only
For personal use only
Slide 3: Disclaimer and competent persons statement
Disclaimer and competent persons statement For personal use only Disclaimer In particular, they speak only as of the date of this To the extent permitted by law, Petratherm and its This presentation has been prepared by Petratherm document, they assume the success of officers, employees, related bod
Slide 4: Presentation Outline
Presentation Outline For personal use only › Corporate and financial overview (TK) › Paralana JV Project overview – JV, economics and resource (TK) › Project latest update: fracture stimulation and flow test (PR) › Video – “The Paralana story so far” › Paralana & market/regulatory framework (TK) › L
Slide 5: Petratherm overview – leading explorer/developer
Petratherm overview – leading explorer/developer Listed ASX : PTR For personal use only MADRID › Shares on Issue: 148.8 million & BARCELONA Direct use › Share Price: $0.086 heat, EGS & hydrothermal › Market Cap: $12.79 million › Cash Position:$3.274 million (30 Sept) CHINA › Shareholders: 3,864 shar
Slide 6: PTR share price – and other Australian listed geothermals
PTR share price – and other Australian listed geothermals Share Market Cash as For personal use only Price Cap at 30 24 Nov 24 Nov Sept PTR 8.6 cents $12.79 m $3.274 m GDY 19.5 cents $65.90 m $22.08 m PAX 1.4 cents $6.24 m $2.586 m Challenging year in the equity markets Even more so for geothermal c
Slide 7: Our business model – consistent and robust
Our business model – consistent and robust “To explore for and develop emission free For personal use only geothermal energy projects that are commercially sustainable” › To develop a portfolio of quality geothermal energy projects › Explore both conventional and engineered geothermal systems – for
Slide 8: Our board – track record of success
Our board – track record of success For personal use only Board Skills and capabilities to achieve our objectives › Financial Management › Legal › Marketing Derek Carter Simon O’Loughlin Richard Hillis › Project Management Chairman Director Director › Corporate Governance › Exploration and Developme
Slide 9: Paralana Project – commercial / market overview
Paralana Project – commercial / market overview › For personal use only Potentially commercially viable at all stages of development › Close (10kms) off grid local customer (5-30MW) – then expand to on grid development (300 MW) › Transmission options for connection to market – potential growth areas
Slide 10: Paralana Independent Resources Statement – Nov 2011
Paralana Independent Resources Statement – Nov 2011 For personal use only Depth Interval Inferred (PJth) Indicated (PJth) Measured (PJth) Total (PJth) (metres) <3,500 2,400 1,100 3,500 3,500 - 4,000 4,900 4,400 41 9,300 4,000 - 4,500 5,900 5,700 12,000 4,500 - 5,000 6,900 6,700 14,000 Total (PJth) 2
Slide 11: Fracture Stimulation – Key Statistics
Fracture Stimulation – Key Statistics For personal use only › 3.1 million litres injected › Injection rates: 3.2 – 27litres/sec › Equilibrium WHP prior and post operation 3940 psi › Various treatments allow higher pumping rates › Sand proppant successfully placed Photo: courtesy Advertiser, July 201
Slide 12: Fracture Stimulation – Pressure and flow rate
Fracture Stimulation – Pressure and flow rate For personal use only Note - This pressure rise is only at surface, not downhole
Slide 13: Passive seismic array
Passive seismic array For personal use only MEQ - Array Managed by IESE 1 deep borehole sonde at 1800m in Paralana 1b 6 borehole sondes ~ 200m 10 surface seismometers 4 accelerometers
Slide 14: Micro-seismic events – main fracture
Micro-seismic events – main fracture For personal use only › MEQ array successfully recorded micro-seismicity: › 11,000 events triggered and located by MIMO › 4,351 events handpicked › Ground motion – acceleration and velocity – always within the safe limits established in the risk management plan.
Slide 15: Micro-seismic events
Micro-seismic events N For personal use only 3,200m 4,200m View North 3,200m 10-15 July Injection Data = Red 4,200m 15 July to 29 October 2011 Post Injection Data = Green View West
Slide 16: MEQ events: interpretation
For personal use only MEQ events: interpretation
Slide 17: Paralana Flow Test, Oct 2011
Paralana Flow Test, Oct 2011 For personal use only • 1.28 million litres produced • Flow rate – 1 – 6 litres/sec • Bottom 200 metres - well fluid temperature 171oC
Slide 18: The Paralana Geothermal Energy Project story to date - video
The Paralana Geothermal Energy Project story to date - video For personal use only
Slide 19: Impact of Carbon pricing – Australian emissions
Impact of Carbon pricing – Australian emissions (source SKM/MMA) For personal use only Medium action Core policy High price 2011 Emissions 350 Core policy means carbon pricing 300 assumptions as per legislation 250 200 Emissions (Mt) 150 100 50 0 2016 2028 2040 2011 2012 2013 2014 2015 2017 2018 201
Slide 20: Impact of Carbon pricing – Australian power generation mix
Impact of Carbon pricing – Australian power generation mix (source SKM/MMA) For personal use only 450 Geothermal energy is expected to be largest source of renewable energy in the mix by 2050 – 400 with 22% of the Australian electricity market 350 300 Solar/PV Geothermal 250 Biothermal Wind TWh Hydr
Slide 21: Impact of Carbon pricing – Australian wholesale electricity price
Impact of Carbon pricing – Australian wholesale electricity price (source SKM/MMA) For personal use only Medium action Core policy High price 250 Price in the graph below is for Core policy means carbon pricing electricity only and excludes the assumptions as per legislation 200 price of RECs Revenu
Slide 22: Paralana project – target revenues with electricity and RECs
Paralana project – target revenues with electricity and RECs Off grid market – next five years For personal use only › Aim to match current off-grid pricing in local market over the next 5 years › Bundled price for sale of output black and RECs expected to be > $140/MWh due to current high off grid
Slide 23: Market and Regulatory framework looking forward
Market and Regulatory framework looking forward In the long term Australia needs clear and For personal use only stable policy and regulatory framework for renewable & geothermal energy ›Price on carbon ›Capital funding of projects ›Investment in network connection Federal Government’s new “Securing
Slide 24: Paralana project looking forward into 2012
Paralana project looking forward into 2012 For personal use only › enter with better understanding/characterization of the Paralana resource › next milestone: drill production well into the enhanced fractured reservoir › then, develop 3.75 MW plant and connect to nearby Beverley Uranium Mine › excel
Slide 25: Petratherm into 2012 and beyond
Petratherm into 2012 and beyond For personal use only › Paralana project has a clear plan and strategy for development from small scale through demonstration and beyond to large scale development › Renewable regulatory and market environment in Australia expected to be robust provide an excellent lo
Slide 26: www.petratherm.com.au
For personal use only www.petratherm.com.au
Slide 27: Paralana project – Modeled Economic assumptions
Paralana project – Modeled Economic assumptions Key Economic Assumptions: For personal use only › Temperature of 190˚C modeled at depth of 4,000m › Flow rate of 75 litres per sec – considered most conservative in sector › Net output per production well of 3.75 MW based on flow, inclusive of parasiti
Slide 28: Paralana joint venture arrangements
Paralana joint venture arrangements For personal use only › Beach Energy Farm-in (Jan 2007) for up to $28m for 36% plus equity share of project costs at every stage › First $5m for first well and $2.7m for stimulation – earns 21% › Contributes at 21% for second well and stimulation › After demonstra
Slide 29: Project joint venture – cost estimates
Project joint venture – cost estimates (assumes JV earn-in options exercised) › Demonstrate flows (stages) Project JV costs PTR cost For personal use only › Fracture stimulate – Paralana 2 (completed) $ 1.0m $ 0.4m 1 › Drill producer well – Paralana 3* $18.0m $ 8.5m 2 › Fracture stimulate/circulat