Blue Energy Limited · ASX:BLU

Blue Energy — Investor Presentation (July 2012)

25 slides from Blue Energy's investor presentation, July 2012

  1. Slide 1: Investor Presentation

    Blue Energy Limited Investor Presentation July 2012

  2. Slide 2: Disclaimer

    Disclaimer Disclaimer This presentation may contain forward looking statements that are subject to risk factors associated with the gas and energy industry. It is believed that the expectations reflected in the statements contained within are reasonable, but they may be affected by a range of variab

  3. Slide 3: Blue Energy's Vision

    Blue Energy’s Vision 3,000PJ of 3P Reserves in Eastern Australia by Year End 2014 Slide 3

  4. Slide 4: Strategy

    Strategy  Low cost evaluation programs in high graded permits  Leverage information from adjacent competitor acreage  Convert resources to reserves with pilot production wells  Access upside in portfolio and seek new exploration opportunities Slide 4

  5. Slide 5: Update on Progress

    Update on Progress  Successful Capital raising  Raised $23 million ($10 million placement + $13 million SPP)  Strong Institutional and retail support  Mr. John Ellice-Flint joins Blue team  Complete Asset Review undertaken – upgraded prospectivity  4 CSG Pilot test wells on extended production

  6. Slide 6: Corporate Snapshot

    Corporate Snapshot ASX Listed Company (BUL) SIGNIFICANT SHAREHOLDERS ANZ Nominees 10.3% Experienced Board and Management Mathews Capital 10.3% Employees 13 Stanwell Corporation 7.7% Shares on Issue 1,139.3m KOGAS 5.5% Cash (at 31 March 2012) $23.6m Acreage 54,377km2 Reserves (3P) 75PJ 3P + 2C 749PJ

  7. Slide 7: Resource and Reserve Potential

    Resource and Reserve Potential 20,000PJ ~16,000PJ GIP 10,000PJ ~9,000PJ 3,000PJ 3P Target 2,788PJ Rec 75PJ Rec GIP Contingent 3P Resources Slide 7

  8. Slide 8: Reserves and Resources Evolution

    Reserves and Resources Evolution  3P Reserves: 75PJ (annual growth rate = 322%)  3P + 2C: 749PJ  Contingent Resources: 2,788PJ 3C (annual growth rate = 1,307%)  Upside potential in multiple new plays – Multi TCF potential 5000 4500 4000 3500 3000 Contingent Resource 2500 3P Reserves PJ 2000 3P T

  9. Slide 9: Asset Portfolio

    Asset Portfolio 554PJ 3C 2310PJ 3P/3C New Acreage Shale gas/oil and conventional upside Upside Shale Gas Conventional and unconventional potential Slide 9

  10. Slide 10: Commodity Spread – Pre Review

    Commodity Spread – Pre Review Block CSG Oil Gas Shale Gas w Shale Gas liquids Galilee ATP813  Bowen ATP814  Bowen ATP817  Surat ATP818  Surat ATP819    Surat ATP854  Surat ATP896  Maryborough     Cooper    Carpentaria Georgina Slide 10

  11. Slide 11: Commodity Spread – Post 2012 Review

    Commodity Spread – Post 2012 Review Block CSG Oil Gas Shale Gas w Shale Gas liquids Galilee ATP813    ? ? Bowen ATP814      Bowen ATP817      Surat ATP818      Surat ATP819      Surat ATP854      Surat ATP896      Maryborough      Cooper ?     Carpentaria ?

  12. Slide 12: Competitor Activity and Infrastructure

    Competitor Activity and Infrastructure  Blue acreage has low well density  Very active work program in Shell/Petrochina permits  Current competitor gas production:  46TJ/day  16PJ pa  Gas export infrastructure being developed Slide 12

  13. Slide 13: Activity to Date – Bowen

    Activity to Date – Bowen  Monslatt Block  Blue activity 3 fully cored wells 2 stratigraphic control wells 5 Pilot production wells 2 testing gas 3 dewatering Delivered - 1,451PJ 3C Contingent Resources  Sapphire/Central Blocks  Blue activity 6 fully cored wells 1 production pilot well Currently

  14. Slide 14: Work Program 2012

    Work Program 2012 Firm  Continue production testing of multiple Monslatt and Sapphire wells  3 sub-regional G&G studies to high grade prospectivity  Permit compliance Contingent on Regulatory Approval  Drill and test Sapphire 5 Pilot test well  Drill and test ATP854P well  Acquire seismic in A

  15. Slide 15: Regulatory Setting

    Regulatory Setting Change of Qld Government EA amendment on surrender Nature conservation act Dom gas reservation FA changes Noise management plans BTEX ban Level of Regulation Well design Competitive Overlapping tenure access Tender Access Guidelines Process Baseline water study Wild rivers ESA res

  16. Slide 16: Program Overview – Bowen Basin

    Program Overview – Bowen Basin  Production test Sapphire 4  Drill and test Sapphire 5  Continue production testing of Monslatt pilot wells Slide 16

  17. Slide 17: Growth Exploration Acreage

    Growth Exploration Acreage  Large position – 31,280km2 (7.7 million acres)  100% Blue Energy  Petroleum system established in Georgina  Oil and gas potential - conventional and non- conventional  Huge potential volume – Ryder Scott report for Petrofrontier estimates up to 40 billion barrel oil

  18. Slide 18: Upside to Reserves

    Upside to Reserves  Deep CSG potential in current portfolio  Bowen and Surat Basin acreage – deep Moranbah and Walloon sections  Shale Gas potential in current portfolio  Significant potential resource in the Maryborough – close to Gladstone demand – “Company maker” – multi TCF potential  Shale

  19. Slide 19: Competitor Activity

    Competitor Activity Bowen Basin  Appraisal activity in ATP1033P and PL’s - Arrow Energy  Large frac program  2015 – 2017; 15-30 development wells/month Surat Basin  300 new wells in Fairview and Roma by YE 2015 – GLNG  APLNG and QGC LNG upstream programs Galilee Basin  Exoma – drill 22 explora

  20. Slide 20: Sector Consolidation Continues

    Sector Consolidation Continues CSG Sector Consolidation to Date 2007 2012 QGC, Arrow, Santos, Origin, QGC/BG, Arrow (Shell/Petrochina) Westside, Blue, Comet, Galilee, Icon Santos, Origin (APLNG), Galilee, Sunshine Gas, Adelaide, Pangaea Westside, Blue, Comet, Exoma, Pangaea, Pure Energy, Eastern Sta

  21. Slide 21: Sector Consolidation Metrics

    Sector Consolidation Metrics Metrics (from Wilson HTM Dec 2011) EV/2P - A$1.56/GJ2P (weighted average) EV/3P – A$0.57/GJ3P (weighted average) Slide 21

  22. Slide 22: Value Metrics

    Value Metrics Blue Valuation Potential Based on Wilson’s valuation metrics Blue’s current 75PJ 3P reserves has potential value of up to $42 million If Blue’s current 3C contingent resource is assumed to have a potential value of $0.15/GJ 3C. ATP814P 3C Contingent Resource (2,234PJ) may be valued at

  23. Slide 23: Exploration Acreage Metrics

    Exploration Acreage Metrics Exoma DLS New Standard Falcon Petro Frontier /CNOOC /BG /Conoco /Hess /Statoil (Galilee) (Cooper) (Canning) (Beetaloo) (Georgina) Farmin Value $50 $108 $110 $112 $206 ($m) Working 50% 60% 75% 62.5% 65% Interest (%) km2 28,343 2,000 45,000 25,200 51,704 Acre 7m 494k 11.1m

  24. Slide 24: In Summary

    In Summary  Doubled our acreage position with new Georgina and Carpentaria Basin permits  2012 Program targets potential delivery of up to 822PJ 2P and 1,522PJ 3P  Will drill up to 2 new CSG wells in 2012 (2 pilot wells)  Will continue to complete, stimulate and test the 5 Monslatt pilot wells –

  25. Slide 25: www.blueenergy.com.au info@blueenergy.com.au

    www.blueenergy.com.au info@blueenergy.com.au Slide 25

Blue Energy — Investor Presentation (July 2012) on 6ix