Beetaloo Energy Australia Limited · ASX:BTL
Beetaloo Energy Australia — Empire Energy Group — Corporate Update (February 2018)
16 slides from Beetaloo Energy Australia's corporate update, Feb 2, 2018
Slide 1: ASX Announcement - Presentation to Fracking Inquiry
EMPIRE ENERGY GROUP LIMITED Level 7, 151 Macquarie Street Sydney NSW 2000 T: 02 9251 1846 F: 02 9251 0244 (ASX: EEG) ASX Announcement - Presentation to Fracking Inquiry 2 February 2018 PRESENTATION The Company will be making a presentation to the Independent Scientific Inquiry into Hydraulic Frackin
Slide 2: Safe Development of the Northern Territory's Onshore Shale Gas Industry
SAFE DEVELOPMENT OF THE NORTHERN TERRITORY’S ONSHORE SHALE GAS INDUSTRY Presentation to the Independent Scientific Inquiry into Hydraulic Fracturing of Unconventional Reservoirs February 2018 1
Slide 3: The Starting Point
THE STARTING POINT The Northern Territory is one of a very few lucky regions globally where people have been bestowed with what is now proving to be an exceptional energy resource The Northern Territory’s potential onshore shale gas resources are supported by downstream natural gas processing plants
Slide 4: Introduction
INTRODUCTION ✓ Imperial thanks the Inquiry Panel for the opportunity to present today ✓ Imperial Oil & Gas (wholly owned subsidiary of Empire Energy Group Limited) has been operating in the Northern Territory (“NT”) since 2010 ✓ Imperial welcomes ‘The Scientific Inquiry into Hydraulic Fracturing in
Slide 5: The Importance of Natural Gas
THE IMPORTANCE OF NATURAL GAS NATURAL GAS IN MODERN SOCIETY IS ✓ A key component of reliable, efficient clean energy generation ✓ A principal feedstock of modern chemistry and plays a central role in our quality of life including medicine, fertilizers, and thousands of other products NATURAL GAS IS
Slide 6: Imperial's McArthur Basin Project
IMPERIAL’S MCARTHUR BASIN PROJECT IMPERIAL CONTINUES DISCUSSIONS WITH POTENTIAL PARTNERS ✓ In 2014 one of the worlds most experienced shale groups identified the McArthur Basin as one of the most exciting global opportunities for potential shale oil & gas development ✓ In 2015 Imperial entered into
Slide 7: Why the McArthur Basin Is So Unique
WHY THE MCARTHUR BASIN IS SO UNIQUE The McArthur Basin Central Trough (“MBCT”) ✓ The MBCT has retained its integrity since its formation approximately 1.6 billion years ago ✓ Critical characteristics of the MBCT can be seen in analogue US basins, making it ideal for hydrocarbon development ✓ Austral
Slide 8: What Do the Rocks Show? Why Are the Rocks So Important?
WHAT DO THE ROCKS SHOW? WHY ARE THE ROCKS SO IMPORTANT? Mineralogical analysis of McArthur Basin rocks 30 day initial production rates of the top 12 Utica reveals two distinct shale clastics with clearly wells versus the top 12 Marcellus wells – Appalachia, identified US analogs USA 7
Slide 9: The Potential of the McArthur Basin
THE POTENTIAL OF THE MCARTHUR BASIN Potential to: ✓ …replicate the US shale boom ✓ …provide additional natural gas supplies to NT consumers, businesses and regional centres, to put downward pressure on energy prices ✓ …generate many long term jobs in new downstream hydrocarbon industries in the NT ✓
Slide 10: Benefits of Responsible Shale Gas Development
BENEFITS OF RESPONSIBLE SHALE GAS DEVELOPMENT TRADITIONAL OWNER BENEFITS REGIONAL POPULATION BENEFITS ✓ Royalties from on-ground expenditure per well ✓ New / improved roads and access ✓ Royalties from oil & gas sales over well life ✓ Opportunity to connect to local natural gas supply to replace dies
Slide 11: Commercialisation
COMMERCIALISATION PIPELINE INFRASTRUCTURE ✓ Existing McArthur pipeline to Alice Springs/Darwin ✓ Northern Gas Pipeline (NGP) under construction ✓ NGP will allow access to East Coast markets ✓ Existing gas pipeline easement - Alice Springs/Darwin to Nhulunbuy GAS SUPPLY OPTIONS ✓ NT domestic gas mark
Slide 12: Downstream Value Added Potential
DOWNSTREAM VALUE ADDED POTENTIAL Shale gas conversion to Methanol, Ammonia, Urea ✓ Opportunity to add significant value to NT natural gas ✓ Petrochemicals need economically produced natural gas. Onshore gas would achieve this benchmark ✓ Project realisation: ▪ Gas allocation to FID: 18-24 months ▪ E
Slide 13: Australian Electricity Market
AUSTRALIAN ELECTRICITY MARKET AUSTRALIA HAS SOME OF THE WORLD’S HIGHEST ELECTRICITY PRICES ✓ Despite being a resource-rich country, parts of Australia have some of the world’s highest electricity prices ✓ Electricity supply reliability is falling and current East Coast prices are significantly highe
Slide 14: Shale Gas Is Transformational
SHALE GAS IS TRANSFORMATIONAL What does the US see in developing shale and tight gas that Australia doesn’t? USA dry gas production by source There is a major disconnect between the US and Australia… trillion cubic feet ✓ Since 2008 US gas prices have dropped from around +US$8/mcf to <US$3.00/mcf. I
Slide 15: Imperial's Vision Is to Develop Resources While Preserving Heritage and Environment
IMPERIAL’S VISION IS TO DEVELOP RESOURCES WHILE PRESERVING THE REGION’S RICH CULTURAL HERITAGE AND ENVIRONMENT Imperial looks forward to working with all stakeholder groups to responsibly develop these resources 14
Slide 16: About Imperial Oil and Gas
ABOUT IMPERIAL OIL AND GAS An Australian owned and operated company active in the Northern Territory and USA Imperial is a subsidiary of Empire Energy (ASX:EEG) which listed on the Australian Stock Exchange in 1984. EEG entered the USA oil and gas industry in 2006 and is now a conventional oil and n
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