Slide 1: QUPEX
For personal use only QUPEX 8 October 2019 Richard Cottee 1
Slide 2: Disclaimer
For personal use only Disclaimer • This presentation (Presentation) has been prepared by State Gas Limited (ACN 617 322 488) (State Gas). The Presentation and information contained in it is being provided to shareholders and investors for information purposes only. Shareholders and investors should
Slide 3: PL 231
For personal use only PL 231 • Petroleum Lease, 30 years to 14/12/2035 • ~50 km south west of Rolleston over the Reid’s Dome anticline • 181 km2 covering a classic north-south dome structure • ~ 50 km from Queensland Gas Pipeline network • State Gas holds 100% • Gas first discovered in 1955 • PSL he
Slide 4: Highlights
For personal use only PL 231 Highlights PROVEN GAS • 17 wells drilled 1955 – 2018. Gas flows from sandstone FLOWS reservoirs in the Cattle Creek Formation and Reid's Dome Beds • Permian Reid's Dome coal measures are extensive throughout NEW PROVINCE - the entire PL-231 with ~60m of net coal between
Slide 5: Reid's Dome Beds CSG Target
For personal use only PL 231 Reid’s Dome Beds CSG Target • 1994 North Queensland Energy study: • PL 231 coals relatively thick, high quality, low ash • 61m net coal above 1200m in Reid’s Dome‐1 • State Gas prelim assessment (conservatively based on 13m net coal and 8.5m m3/ton) suggests potential fo
Slide 6: Anticlinal Structural Setting
For personal use only PL 231 Anticlinal Structural Setting • Mapping indicates strike of NNE – SSW with trans‐tensional offset in the central region • Sericold Anticline is centred on the permit. • Several faults are evident at surface but over‐pressured gas in conventional reservoirs indicate they
Slide 7: Work to Date
For personal use only PL 231 Work to Date • First wells in 1955 – flowed gas to surface Shallow • Conventional gas confirmed in conventional shallow Cattle Creek Formation in gas north • State Gas 2018 1st CSG well in south confirmed gas presence & st 1 CSG well permeability • established potential
Slide 8: Forward Program
For personal use only PL 231 Forward Program • Phase 1 – Prove the potential • Seismic reprocessing (done) • Corehole in north & well in centre of permit to prove gas presence, coal thickness & permeability • Production tests to prove production • Phase 2 ‐ Confirm scope, permitting • Production pil
Slide 9: Market Analysis
For personal use only Market Analysis • Traditionally Domestic Market supplied primarily from Cooper Basin (’70s) & Bass Strait (602’s) • Cooper Basin new supply barely arresting depletion • Bass Strait arresting decline through enhanced production techniques – not new supply Major issues: 1. When B
Slide 10: Price
For personal use only Price • Have always said pricing will remain in A$8‐10/GJ (2018$) with excursions either site • Demand appears the prime determinate • “Demand Management” a euphemism for industrial job destruction A$10‐12/GJ (2018$, but indexed more to Henry Hub prices than inflation) will se
Slide 11: Indicative Timeline
For personal use only Indicative Timeline • tendering Phase 1 Phase 2 tendering Phase 3 First Gas Q4‐19 Q1‐20 Q2‐20 Q3‐20 Q4‐20 Q1‐21 Q2‐21 Q3‐21 Q4‐21 ASX code: GAS QUPEX 8 October 2019 11
Slide 12: Route to market
For personal use only Route to market • Pipeline Survey Licence 2028 in place • ~50 km to Queensland Gas Pipeline network connection options to the north-east and south-east Possible route to market ASX code: GAS QUPEX 8 October 2019 12
Slide 13: Questions?
LS1 For personal use only Questions? At PL 231 ASX code: GAS QUPEX 8 October 2019 13
Slide 14: For personal use only
Slide 13 LS1 Lucy Snelling, 9/11/2018 For personal use only