Blue Energy Limited · ASX:BLU
Blue Energy — Investor Presentation (May 2010)
24 slides from Blue Energy's investor presentation, May 2010
Slide 1: Investor Update May 2010
For personal use only INVESTOR UPDATE May 2010 Slide 1
Slide 2: Disclaimer
Disclaimer For personal use only 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 rang
Slide 3: Corporate Snapshot
BLUE ENERGY Corporate Snapshot For personal use only ASX listed Energy Company (ASX Code: BUL) Brisbane Head Office Staff: 12 Shares on Issue: 647.5m* Share Price $0.23* Market Capitalisation: $149m* Cash: $32m* Shareholders: 6,400* Coal Seam Gas Acreage: 21,049km2 Conventional Acreage (incl PNG): 7
Slide 4: People
For personal use only PEOPLE Board Mr. Peter Cockcroft (Chairman) : International Gas and LNG veteran. Dr. Paul Massarotto (NED) : Technical specialist and research background. Mr. Garry Button (NED) : Finance and accounting expertise – Stanwell nominee. Mr. Heung Bog Lee (NED) : Engineering experti
Slide 5: Corporate History
For personal use only CORPORATE HISTORY Corporate History • Sept 2007: A$34.6 million capital raising. • Jul 2008: ANZ Bank appointed Receiver to Primebroker Securities and took control of 113 million BUL Shares under margin lending security. (Receiver had Blue Board representation until Nov 2009).
Slide 6: Resource Snapshot
For personal use only RESOURCE SNAPSHOT ATP814P Interval Contingent Resource Prospective Certifier Block PJ’s (GIP) Resource PJ’s (GIP) Category 2C 3C Monslatt P1 121 847 NSAI Other 2,565 NSAI coals Shales 3,630 NSAI Central Rangal 1,100 Internal only Sapphire Moranbah 725 Internal only Rangals 148
Slide 7: Indicative Value
For personal use only INDICATIVE VALUE CSG Trading Multiples EV / 3P 0.40 0.36 0.34 0.35 0.30 0.27 0.27 0.25 $A/GJ 0.20 0.14 0.15 0.09 0.10 0.05 0.05 - AOE MPO BUL BOW ESG MEL WCL Arrow (Pre Molopo Blue Bow Eastern Star Metgasco Westside takeover) Based on the NSAI Reserve estimates assumption of 1,
Slide 8: Immediate Focus of Activity
For personal use only IMMEDIATE FOCUS OF ACTIVITY ATP814P (Bowen Basin) Monslatt Block • Conversion of 2C/3C 2P/3P reserves • 3 pilot production wells being drilled Central and Sapphire Blocks • CSG core holes being drilled for additional resources . • Adjacent to CSG production (Arrow Energy’s Anna
Slide 9: Activity Schedule
For personal use only ACTIVITY SCHEDULE Permit Target Cost Activity 2009 2010 2011 3P/3C Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ATP854P 150PJ $0.8MM Coreholes (3) Completed Walloon target Pilot Certified Reserves GSA Development ATP818 / 200PJ $1.3MM Coreholes (3) Completed ATP896P Pilot Walloon target Certi
Slide 10: Reserve Targets
For personal use only RESERVE TARGETS Reserve Targets • Majority of reserve targets will be met by ATP814P and ATP813P. • Monslatt Block will deliver on 2010 targets if pilots successful. • 3C GIP in Monslatt = 3,411PJ. • Additional potential in Central and Sapphire Blocks will add to meeting 2011 t
Slide 11: Commercialisation Activity
For personal use only COMMERCIALISATION ACTIVITY • Large volume of LNG ramp gas anticipated in the market over the next 5 years, • Potential low domestic gas price risk can be mitigated with the following options: Small Scale LNG/CNG KOGAS and Blue Energy executed an MOU to investigate the feasibili
Slide 12: Small Scale LNG/CNG
For personal use only SMALL SCALE LNG/CNG • Australia exports its abundant low value energy – gas (in the form of LNG). • Gas is a relatively small part of the energy mix in Australia – particularly in the Heavy Duty Vehicle sector. • Australia imports most of its high cost transportation fuel – cru
Slide 13: ATP814P Asset Overview
ATP814P Asset Overview For personal use only Bowen Basin, Queensland • Area 1,839km2 • Permit Granted 1 March 2006 • Holding 100%, 12 years – CSG • Gas In Place 7.1 TCF (from NSAI) Plus 1.9 TCF (internal) • Coal Seams Rangal, Fort Cooper and Moranbah coal measures • Work Completed Sapphire-1 core ho
Slide 14: ATP814P Regional Setting
ATP814P Regional Setting For personal use only Geology • Moranbah CM, Rangal and Fort Cooper CM targets. • Faulted and intruded terrain. • Thick gassy coals – demonstrated production (Moranbah Gas Project). • Limited seismic and structural control. Central Block ATP 814P Slide 14
Slide 15: ATP814P Program, Targets and Timing
ATP814P Program, Targets and Timing For personal use only Work Program • 4 CSG wells (Monslatt 1/1A, 2 & 3 drilled). • 3 pilot production wells in Monslatt planned. • Core and Pilot wells in Sapphire Block. • 4 CSG wells in the Central Block (core + strat). Resource Estimates • NSAI estimated the fo
Slide 16: ATP814P Monslatt Discovery
ATP814P Monslatt Discovery For personal use only Resource Potential • Monslatt discovery provides significant gas resource (~7 TCF GIP) adjacent to the Moranbah Gas Project – Certified by NSAI. • Upside in Central and Sapphire Blocks (1,970PJ’s GIP). • Gas export facility at Moranbah. • Moranbah to
Slide 17: ATP814P Monslatt Project
ATP814P Monslatt Project For personal use only Monslatt Drilling Results Monslatt 1A • Three coreholes drilled. • P Seam - productive seam at Arrows MGP • Intersected at 500 metres • Thickness – 5-7 metres • Gas content – up to 23 m3/tonne raw • Adsorption Isotherm indicates 100% gas saturated • Gas
Slide 18: ATP813P Asset Overview
ATP813P Asset Overview For personal use only Galilee Basin, Queensland • Area : 4,139 km2 • Permit Granted : 1 March 2006 • Holding : 100%, 12 years CSG and conventional • Gas In Place: 15.3 Tcf • Coal Seams: Aramac Coal measures Betts Creek – Permian • Work Completed: Carolina 1, 65km seismic Kanak
Slide 19: ATP813P Program, Targets and Timing
ATP813P Program, Targets and Timing For personal use only Work Program • 10 core holes • Kanaka1 and Stainburn Downs 1 drilled to date. • 3 pilot wells contingent on coring results. Reserve Targets • 12 month target: 500PJ 3P/3C • 3 year target: 3,000PJ 3P/3C Timing • Drilling: Q4 2009 – Q2 2010 • I
Slide 20: ATP813P Work to Date
ATP813P Work to date For personal use only Seismic Data • 65 km of new 2D seismic acquired Drilling: Carolina 1 Core Hole Drilling: Kanaka 1 • Drilled in October 2008 • Drilled in October 2009 • Total Depth = 1,193 metres • Total Depth = 1,300 metres • Target – Permian Betts Creek/Aramac • Target –
Slide 21: ATP813/814P Gas Export Options
ATP813/814P Gas Export Options For personal use only Gas Export Options • Pipeline route study from ATP813P to the Queensland Coast has been completed. • Route options include Abbot point and Gladstone, with additional option to connect to a potential Moranbah hub. Slide 21
Slide 22: Maryborough Basin Overview
MARYBOROUGH BASIN Overview For personal use only Maryborough Basin • Awaiting award of excluded lands in ATP613P, and application areas ATP733A and ATP674A • Amended Farm in Agreement with Magellan (now Adelaide Energy), including Operatorship • Lead in Native Title negotiations. • Secured additiona
Slide 23: Key Messages
For personal use only KEY MESSAGES Key Messages • Strong Cash Position – $32 million. • Fully funded exploration program. • Initial NSAI Resource Certification in ATP 814P Monslatt Block • ~ 7,100PJ’s GIP • Potential 1,970PJ’s GIP in Central and Sapphire Blocks. • On track to meet reserve target. •
Slide 24: Contact
For personal use only www.blueenergy.com.au info@blueenergy.com.au REGISTERED OFFICE Level 3 410 Queen Street Brisbane QLD 4000 Ph: +61 7 3270 8800 Fax: +61 7 3270 8899 Slide 24