Blue Energy Limited · ASX:BLU
Blue Energy — Investor Presentation (August 2019)
22 slides from Blue Energy's investor presentation, Aug 16, 2019
Slide 1: ASX Announcement: Amended Investor Presentation - Additional Information
ANNOUNCEMENT 16 August 2019 ASX ANNOUNCEMENT Amended Investor Presentation - Additional Information Reference is made to the Company’s Investor Presentation of 14 August 2019. Attached is an updated version of the same which now includes the following additional information: Slide 8 The addition of
Slide 2: Updated Investor Presentation
Updated Investor Presentation 16th August 2019 1
Slide 3: Legals
Legals 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 variables
Slide 4: Blue's Acreage Portfolio
B l u e ’s A c r e a g e P o r t f o l i o Blue has Gas Reserves/Resources close to markets plus emerging play upside 1
Slide 5: Connecting the Bowen to east coast market
Connecting the Bowen to east coast market brings more gas supply to market - quickly Where will this volume come from? Un-developed Gas Reserves 15,000 PJ of and gas Prospective Resources) (Contingent resource Linking the producing Bowen Basin to the southern market will alleviate near term shortage
Slide 6: Why Gas is Important
Why Gas is Important Un-developed Gas Reserves Data source: Shell 2019 Global data 3
Slide 7: The Importance of Gas in Australia
The Importance of Gas in Australia 950,000 East Coast jobs rely on Gas 6.5 million Australian homes use gas for heating/cooking ~13,000 MW gas fired electricity generation - instant back up for solar/wind Agriculture : Fertiliser Industrial use : Glass making Brick making Waste Incineration Feedstoc
Slide 8: East Coast Domestic Gas Supply problem
East Coast Domestic Gas Supply problem …. More gas needed short/medium/long term Undeveloped and/or undiscovered volumes Un-developed Reserves Competes with LNG export volumes ? AEMO 2018 Large volumes are required to be developed and discovered just to meet domestic demand Drilling activity must ra
Slide 9: Rush to renewable energy
Rush to renewable energy Gas fired generation stabilises grid Only Gas can provide instant back up Un-developed Gas Reserves AEMO2019 AEMO 2019 Shift in NEM power generation source… from Q1 2018 to Q1 2019 Black Coal and Hydro displaced by rooftop and grid solar 6
Slide 10: ...and when the sun goes down
…and when the sun goes down, t here’s no w ind and coal generators go off line…. NEM Grid Wholesale Electricity Price - $/MWhr $14,000/Mwh ~ $2,000/Gj Un-developed Gas Reserves Source: Red Dolphin/PocketNEM Gas generators are buying gas for $ 6-10/Gj then getting uplift to $30-40/Gj at ordinary peak
Slide 11: Massive uplift on gas price with peaking gas fired generation
Massive uplift on gas price with peaking gas fired generation $/Gj $/MWhr Source: Internal Blue Energy research using manufacturer heat rate data 8
Slide 12: Australian Electricity - World's cheapest to most expensive in just 15 years
Aust ral i an El ect ri ci t y - Worl d’s cheapest t o most expensive in just 15 years!! Start of NEM and privatisation of govt assets We have undone 50 years of efficient, reliable, low cost power generation attempting to reduce global atmospheric CO2 and average temperature…. But household electri
Slide 13: Blue has Gas
Blue has Gas Blue has Gas Reserves and Resources close to markets plus exploration upside 10
Slide 14: The Bowen Basin and ATP
T h e B o w e n B a s i n a n d AT P 8 1 4 Keys to long term East Coast gas security Nation building pipeline needed • Large discovered resource: 10,000 - 15,000 PJ - development ready+ • Arrow (Shell/Petrochina) has 80% : Blue Energy has 20% of the resource • The Bowen Basin is a producing basin •
Slide 15: Blue's Bowen Gas Resource
B l u e ’s B o w e n G a s R e s o u r c e : 3 ,2 4 8 PJ’s + Well flowed at 2.5 mmcfd New wells flowed at 4 mmcfd 12 +Please refer to Slide 19 of the Presentation for ASX Listing Rule 5 Disclosure
Slide 16: Arrow drilling on our boundary
Arrow drilling on our boundary Step change in gas flow rates Blue Energy’s Production Licence applications 4+ mmcfd gas rate Arrow Energy’s 2018/19 drilling 13
Slide 17: Arrow drilling on our boundary
Arrow drilling on our boundary New 2018/19 Arrow Blue Energy Production wells Sapphire Block – 216 PJ 3P Proposed Arrow 3D Seismic Survey Arrow Energy Moranbah Gas Project – 35 Tj/day Arrow Gas Pipeline 14
Slide 18: Blue's progress in Queensland
B lue’s progress in Queensland • Blue increased Contingent Gas Resource by 237 PJ in ATP814P • Total 3C = 4,179 PJ+ (Bowen, Galilee and Surat Basins) • Total 2P+2C = 1,237 PJ+ • 2P = 71 PJ+ • 3P = 298 PJ+ • Assessed by NSAI – Dallas based top tier global certifier • Pipeline Survey Licence to connec
Slide 19: Exposure to Emerging Play
Exposure to Emerging Play Proterozoic Shale in NT • Material acreage position • Proven Petroleum System • World class source rocks • Proof of concept Origin Discovery well – gas flow = 0.8-1.2 mcfd • Pepper Inquiry Recommendations partially legislated - 135 in total • Beta testing by Santos and Orig
Slide 20: Blue's Strategy and Catalysts
Blue’s Stra te gy a nd C a ta ly s ts • Focussed on monetising Bowen Basin gas – 30 years of supply - negotiating with gas buyers - progressing pipeline options - Increasing gas resources - Investigating gas fired generation to stabilise renewables • Capitalise on short east coast export and domesti
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Slide 22: Additional Information
Additional Information ASX Listing Rule 5 Disclosure for Reserve and Resource Statements lure The estimates of Reserves and Contingent Resources noted throughout this Presentation have been provided by Mr John Hattner of Netherland, Sewell and Associates Inc (NSAI) and were originally reported in th