Comet Ridge Ltd · ASX:COI

Comet Ridge — China-Australia Unconventional Natural Gas Forum 2016

16 slides from Comet Ridge's conference presentation, Nov 7, 2016

  1. Slide 1: Unconventional Gas in East Australia – Where Next?

    Unconventional Gas in East Australia – Where Next ? For personal use only Tor McCaul, Managing Director, Comet Ridge Limited China-Australia Unconventional Natural Gas Forum, Beijing 7 November 2016 www.cometridge.com.au ASX Code : COI www.cometridge.com.au

  2. Slide 2: Comet Ridge Limited

    Comet Ridge Limited For personal use only  ASX listed - based in Brisbane  Focus on natural gas in eastern Australia  Multi-basin presence  Southern Bowen (Mahalo)  Galilee  Gunnedah  Coal Seam Gas (CSG) Pilot schemes running at the Mahalo Gas Project with initial 2P and 3P reserves  Signifi

  3. Slide 3: Australian Gas Market Background

    Australian Gas Market Background For personal use only  Large continent  Small population residing mostly around coast, particularly in southeast Darwin  Historically small gas market relative to reserve base  Subsequently historically low gas prices  Gas resources are generally located at a di

  4. Slide 4: Eastern Australia Gas Market Development

    Eastern Australia Gas Market Development For personal use only  Late 1960s start of gas transmission and industrial and domestic use in the Eastern region  Bass Strait, Victoria (offshore)  Moomba, South Australia (onshore)  Roma, Queensland (onshore)  Initial LNG exports commenced mid 1980s 

  5. Slide 5: Eastern Australia Gas Market Currently

    Eastern Australia Gas Market Currently For personal use only  Massive increase in demand since 2014 due Gladstone LNG  Recent price spikes to above $25/GJ during high demand winter period  short term market only  long term industrial customers under pressure  Shortfall in gas supply to meet dom

  6. Slide 6: Historic Sources of Gas

    Historic Sources of Gas For personal use only  Eastern Australia gas market supplied with Aus Natural Gas Production and Consumption conventional sandstone gas from 1960s – including associated gas (with oil production, particularly Bass Strait)  Since late 1990s, CSG production grown substantiall

  7. Slide 7: Eastern Australia External Factors

    Eastern Australia External Factors For personal use only  Significant green activism and disruption applied to gas exploration and production across Australia despite the significant contribution gas can make to curbing emissions  Moratoria on onshore gas exploration and development and other regu

  8. Slide 8: Future Sources of Gas

    Future Sources of Gas For personal use only New reserves will come from: 1. Poorer quality areas in existing CSG basins moving away from sweet-spots (i.e. Surat Basin)  Gladstone LNG projects likely to focus here  But can they get their costs down? 2. Untapped CSG in new basins further from market

  9. Slide 9: Production Challenges

    Production Challenges For personal use only  Development of contingent resources and reserves will require a shift in focus away from high quality conventional reservoirs and CSG sweet-spots – and needs to be economic in a lower oil price environment!  Leading to increased technical challenges  D

  10. Slide 10: Tighter Sandstone Reservoirs

    Tighter Sandstone Reservoirs For personal use only  Had been some Queensland focus on tighter onshore sandstone reservoirs in 1980s and 1990s however this was somewhat taken over by focus on CSG reservoirs from late 1990s  Tighter gas opportunities exist in eastern Australia  Expect to see more e

  11. Slide 11: Tighter Sandstone Reservoirs – Drill stem testing

    Tighter Sandstone Reservoirs Drill stem testing For personal use only  Reservoirs can be fluid sensitive and very susceptible to damage via mud overbalance and mud components  Drilling to TD and obtaining logs can lead to unacceptably long delays before testing which can lead to poor DST flow resu

  12. Slide 12: Tighter Sandstone Reservoirs – Air / Nitrogen Drilling

    Tighter Sandstone Reservoirs Air / Nitrogen Drilling For personal use only  High mud overbalance used during drilling of early exploration wells (1960s to 1990s) – resulted in non-commercial gas flows (field examples Rolleston, Yandina & others)  Air / Nitrogen drilling enabled commercial gas rate

  13. Slide 13: Summary

    Summary For personal use only  The Australian east coast gas market has grown and changed drastically in the past two years  The steady growth in gas production has been focused largely around CSG for the past 15 years  Shale gas may come in the medium to longer term however maintaining gas into

  14. Slide 14: Important Notice and Disclaimer

    Important Notice and Disclaimer Disclaimer For personal use only This presentation (Presentation) has been prepared by Comet Ridge Limited (ABN 47 106 092 577) (Comet Ridge). The Presentation and information contained in it is being provided to shareholders and investors for information purposes onl

  15. Slide 15: Important Notice and Disclaimer – Competent Person Statement

    Important Notice and Disclaimer Competent Person Statement and ASX Listing Rules Chapter 5 - Reporting on Oil and Gas Activities For personal use only The Contingent Resource for the Albany Structure referred to at page 2 of this presentation are taken from an independent report by Dr Bruce McConach

  16. Slide 16: Contact

    For personal use only Contact Telephone: +61 7 3221 3661 Facsimile: +61 7 3221 3668 Email info@cometridge.com.au Level 3 GPO Box 798 www.cometridge.com.au 283 Elizabeth Street Brisbane 4001 ASX Code : COI Brisbane 4000 www.cometridge.com.au

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