Origin Energy Limited · ASX:ORG

Origin Energy — Technical Presentation (September 2011)

20 slides from Origin Energy's technical presentation, Sep 20, 2011

  1. Slide 1: Environment and Community

    Environment and Community Presented by Ken Horton Group Manager Corporate Affairs, Upstream Qld & CSG to LNG Origin Operational Review and Asset Visit 19-20 September, 2011

  2. Slide 2: Origin has a proven track record in conventional operations and CSG developments

    Origin has a proven track record in conventional operations and CSG developments … • Origin and predecessor companies have been operating successfully in the Surat Region for 40 years • Origin drilled its first CSG well in 1993 and has been producing CSG since 1997 – we are building on a long histor

  3. Slide 3: A comprehensive regulatory regime underpins CSG to LNG projects

    A comprehensive regulatory regime underpins CSG to LNG projects EIS Environmental, social and economic impact assessment State Federal Coordinator General Report Gas Fields Pipeline LNG Facility Environmental and social impacts LNG Facility Approval Approval Approval Conditions Environmental Environ

  4. Slide 4: Water Issues

    Water Issues • Impact on the Great Artesian Basin • Impact on farmers‟ bores • Gas migration • Fraccing • Salt 4|

  5. Slide 5: The CSG to LNG industry operates in a small proportion of the Great Artesian Basin

    The CSG to LNG industry operates in a small proportion of the overall Great Artesian Basin (GAB) Location of CSG projects The Surat Basin is a sub basin of the Great Artesian Basin 5| Source: After Radke et al, 2000

  6. Slide 6: Water produced by the industry will be about half the amount taken by other users

    Water produced by the industry (on average over 40 years) will be about half the amount taken by other users (in perpetuity) and is small compared to the annual recharge of the GAB GAB and Surat Basin water figures Estimated annual water levels (ML) Typical annual water production by APLNG 25,000 po

  7. Slide 7: The coal seams are separated from the aquifers by layers of hard rock

    The coal seams are separated from the aquifers by layers of hard rock - and the aquifers are monitored comprehensively In our operating areas: Water bore – typically 50-100 • We take water from the coal measures metres deep • Others take it mainly from the shallow aquifers • The coal measures are se

  8. Slide 8: Gas has a long history in the Surat Basin of appearing naturally in water bores

    Gas has a long history in the Surat Basin of appearing naturally in water bores Extract from vineyard promotional materials The ‘flaming bore’ on 60 Minutes and 4 Corners in Roma, circa 1905 Historical State Government records clearly report natural gas in many bores and in all the commonly used GAB

  9. Slide 9: Where operations impact nearby bores we are obliged to make good

    In the limited number of cases where operations impact on nearby bores we are obliged in advance to “make good” that impact • All CSG to LNG projects are required to APLNG planned in its EIS for ~300 wells to make good any bore that has more than a 5 be ‘made good’ – we now estimate that metre drawd

  10. Slide 10: Where coal permeability is low, fraccing may be used to enhance flow

    In some areas where permeability of the coals is low, the process of fraccing may be used to enhance the flow of fluids … • Hydraulic Fracture stimulation or „fraccing‟ is a method to increase flow of gas and extract gas more efficiently from the coal seam • „Fracs‟ are placed using „frac‟ fluid (pr

  11. Slide 11: Over 97% of the fraccing fluid used is water

    Over 97% of the fraccing fluid used is water with a further 2% a salt and minor concentrations of other common household additives 11 |

  12. Slide 12: The CSG to LNG industry will produce broadly the same amount of salt as other users

    The CSG to LNG industry will produce broadly the same amount of salt produced by other users • All our produced water will be treated with Reverse Osmosis (RO) • Currently more than 90% of the water treated by RO becomes clean and usable - expected to rise to 97.5% as the Indicative salt produced De

  13. Slide 13: Impacts on farmers, land-use and local communities

    Impacts on farmers, land-use and local communities • Reaching agreement with landholders • Impact on high quality agricultural land • Improving infrastructure • Community engagement 13 |

  14. Slide 14: Origin has reached around 600 agreements with farmers without going to Land Court

    Origin has reached around 600 agreements with farmers - without going to Land Court • Landowners do not own resources underneath their land – these belong to the State • Origin respects the rights held by landowners – and always seeks to work with them • Origin has so far accessed properties entirel

  15. Slide 15: Limited impact on Good Quality Agricultural land

    Our operations will have limited impact on Good Quality Agricultural land or on the agricultural production of the land we buy Increasing the agricultural productivity of our owned land • APLNG will affect about 7% • We will make improvements on many of our owned of Good Quality Agricultural propert

  16. Slide 16: We will invest substantially through infrastructure investment and community programs

    We will invest substantially through a mix of infrastructure investment and long running community programs Operational Social impact Community investment - $50m 2011-2015 management needs spending with direct i.e. as required community by conditions impact (make good Social Volunteering impacts) Pa

  17. Slide 17: Origin has extensive ongoing engagement with stakeholders across the social environment

    Origin has extensive ongoing engagement with stakeholders across the social environment • We are looking well into the future to ensure our impacts are understood and integrated into strategies towards delivering a sustainable project while supporting regional communities • Long term stakeholder eng

  18. Slide 18: Engagement processes with other proponents, Government, NGOs and stakeholders are firmly established

    Engagement processes with other proponents, Government, key NGO‟s and Stakeholders are now firmly established and functioning well • An Industry Leadership Group has been established by all 4 CSG to LNG proponents to consider key issues and cumulative impacts – 8 working groups have been established

  19. Slide 19: Aquitards and aquifers diagram

    Water bore – typically 50-100 metres deep Avg 100- Coal 250 measures metres of hard rock System of monitoring bores both in the aquifers near the coals and in the aquifers nearer the surface Aquitards – shales and Aquifers - layers of mudstones hard fine - porous rock that rock that stops water wate

  20. Slide 20: Thank you

    Thank you 20 |

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