Slide 1: Discover Mongolia Conference: Coal Bed Methane for Multiple Markets
For personal use only ELIXIR ENERGY (ASX:EXR) Discover Mongolia Conference Coal Bed Methane for Multiple Markets 27 September 2019
Slide 2: Important Notice & Disclaimer
Important Notice & Disclaimer For personal use only This document has been prepared by Elixir Energy Limited (ABN 51 108 230 995) (“Elixir”) in connection with providing an overview of its business to interested analysts/investors. This presentation is being provided for the sole purpose of providin
Slide 3: Company Overview
Company Overview For personal use only Exploring for Coal Bed Methane (CBM*) in the South of Mongolia • Focused on the 100% owned Nomgon CAPITAL STRUCTURE Current (A$million) IX Coal Bed Methane (CBM*) Production Ordinary Shares (ASX:EXR) 487.2 Sharing Contract (PSC) project in the Unlisted Options
Slide 4: Board of Directors
Board of Directors For personal use only Highly experienced CSG team Richard Cottee Neil Young Stephen Kelemen Bayanjargal Non-Executive Chairman Managing Director Non-Executive Director Byambasaikhan Strategic Adviser • Former Managing Director • Former Business • Extensive technical and • Chairman
Slide 5: Nomgon IX CBM PSC
Nomgon IX CBM PSC For personal use only PSC gives long term and robust tenure over massive licence area • CBM PSC signed in September Exploration term 10 – 15 years 2018 with a 10 year+ exploration Production term 30 years + term Royalty 5 – 10 % • 100% ownership and no back-in Up to 40%. rights as
Slide 6: Export Scale Acreage Package
Export Scale Acreage Package For personal use only Extensive licence area and globally short pipeline distance Nomgon IX Gladstone GLNG Acreage Fairview 410km Roma 100km 100km West East Pipeline |6|
Slide 7: Regulatory Approvals Completed
Regulatory Approvals Completed For personal use only Significant work completed, exploration underway PSC executed APPROVALS SEQUENTIALLY Exploration Plan approved Baseline EIA approved SECURED Archaeological Study completed Paleontological Study completed Exploration licence awarded Detailed EIA &
Slide 8: 2019 Exploration Program
2019 Exploration Program For personal use only Timeline on track, history of delivery 2D Seismic 2019 Drilling Campaign Acquisition* (2 +1 wells) Q1 2019 Q2 2019 Q3 2019 Q4 2019 Various approvals Seismic Processing Gas Desorption secured & Seismic and Interpretation and Testing Planning complete 201
Slide 9: Seismic Acquisition Completed
Seismic Acquisition Completed For personal use only Targeted 2D seismic acquisition • Commenced seismic acquisition in August 2019 – finished in September • Partnered with Mongolian contractor Micro Seismic LLC - who has substantial experience in the region • Acquired 131 km of 2D seismic over key C
Slide 10: Drilling Imminent
Drilling Imminent For personal use only Two core holes scheduled, option for a third • First well (Ugtaal-1) due to spud late September/start of October • Elixir and Mongolian contractor Erdenedrilling LLC have sourced testing equipment and experienced personnel from the USA and Australia • Program
Slide 11: Multiple Market Opportunities
Multiple Market Opportunities For personal use only Nomgon PSC has multiple sources of potential demand • Proximity to China – the largest global importer of energy and mineral resources, a key strategic advantage for Mongolia • Multiple other market opportunities include: • Mongolia’s largest energ
Slide 12: Next Door to China's Gas Market
Next Door to China’s Gas Market For personal use only China has a rapidly growing appetite for gas • The Chinese Government plans to increase gas demand by 300% over the next 15 years • China imports gas from every direction and seeks to continually diversify its sources of supply • The Nomgon IX CB
Slide 13: Gas to Electricity
Gas to Electricity For personal use only Gas can generate electricity locally to supply the Nation • The Nomgon PSC contains considerable existing electricity transmission infrastructure • A large scale 220 kV line runs South from Ulaanbaatar to Oyu Tolgoi with substantial spare capacity • A 330 kV
Slide 14: Oyu Tolgoi
Oyu Tolgoi For personal use only Gas is an alternative power source for Oyu Tolgoi • Oyu Tolgoi required to seek power from within Mongolia under the Investment Agreement • Progress to date has been slow, with delays from various stakeholders • International financial institutions increasingly movin
Slide 15: Gas & Renewables
Gas & Renewables For personal use only The South Gobi hosts significant renewable resources • Maximising the benefits of Mongolia’s renewable resources (centered in the South Gobi) requires greater regional connectivity • Substantial progress is being made in promoting the “Asian Super Grid” with Mo
Slide 16: Creating New Demand
Creating New Demand For personal use only Cheap sources of gas attract new demand • Gas can be delivered to existing markets by pipeline or electricity networks • Cheap & large-scale gas resources attract new industries to co-locate • The Moranbah CBM field in North Queensland now hosts a large expl
Slide 17: The Hydrogen Economy
The Hydrogen Economy For personal use only Hydrogen is increasingly seen as a key tool to deal with climate change • In the long term, a green steel industry will require coking coal to be replaced with hydrogen • Hydrogen is not available naturally and needs to be created in a clean fashion to be a
Slide 18: Investment Highlights
Investment Highlights For personal use only Elixir has a highly favourable risk-reward profile • First CBM PSC in Mongolia, signed in 2018 with 10 year+ exploration term • High Quality Board & Management with history of success in CBM • Massive PSC with large prospective resources (Appendix 1) • Cap
Slide 19: Contact Us
For personal use only Contact Us INVESTORS & MEDIA Neil Young Managing Director neil.young@elixirenergy.net.au Phone +61 8 6001 6938 www.elixirenergy.net.au | 19 |
Slide 20: Appendix 1: Independent Prospective Resource Report
Appendix 1: Independent Prospective Resource Report For personal use only • First independent prospective resource report completed by ERC Equipoise Pte Ltd (ERCE) using 2018 SPE PRMS standards1 • Giant resource identified with Geological Risk likely to be significantly reduced following 2019 explor
Slide 21: Appendix 2: The Bowen and South Gobi Basins Compared
Appendix 2: The Bowen and South Gobi Basins Compared For personal use only PROPERTIES BOWEN BASIN SOUTH GOBI COMMENTS (QUEENSLAND) (MONGOLIA) Seam thickness Maximum single seam >55m found in multiple ü World class seam thickness and thickness 30m locations hence very high GIP per acre Gas content 7-
Slide 22: Appendix 3: Road to Contingent Resource Booking
Appendix 3: Road to Contingent Resource Booking For personal use only ACTIVITY OUTCOME RESOURCE CATEGORISATION UPON SUCCESS Geological Modelling 40 TCF unrisked) Recoverable Prospective Resource (Lead)1 COMPLETED (Best Case)* COS: 19% * Additional Data from Mineral More evidence of coal - COS could