Beetaloo Energy Australia Limited · ASX:BTL
Beetaloo Energy Australia — Australian Domestic Gas Outlook Conference 2024
33 slides from Beetaloo Energy Australia's conference presentation, Mar 26, 2024
Slide 1: Empire Energy – The Beetaloo Basin Pioneer moving into Production
ASX:EEG Empire Energy – The Beetaloo Basin Pioneer moving into Production Australian Domestic Gas Outlook Conference 2024
Slide 2: Empire Energy Investment Case
Empire Energy Investment Case The Beetaloo Basin Focused Gas Development Company • The Beetaloo’s Velkerri Shale is an enormous (>500 TCF) low CO2 shale gas resource located in Northern Australia close to Asian LNG markets and existing export infrastructure • The Beetaloo is a stacked shale play wit
Slide 3: Empire Energy Investment Case (Cont’d)
Empire Energy Investment Case (Cont’d) The Beetaloo Basin Focused Gas Development Company • Empire’s acreage contains >47 TCFe 2U resource and >1.6 TCF 2C resource independently assessed by NSAI with <1% CO2 • Recent appraisal drilling by Empire and other operators has demonstrated commercial viabil
Slide 4: Corporate Snapshot
Corporate Snapshot Capital Structure ASX Share Price Shares on issue1 773.4M Share price A$0.175 Market cap A$135.3m Net (debt2) / cash3 ~A$8.6m Enterprise value ~A$126.7m Cash at bank3 ~A$17.3m Top Shareholders Contingent and Prospective Resources Pangaea Resources 18.1% 2C Contingent Resources 1.6
Slide 5: Empire’s Beetaloo Basin Position
Empire’s Beetaloo Basin Position 5 TCF gas pilot ready Carpentaria Project with >20 TCF Western Beetaloo resource delineated • Empire is the largest net acreage holder in the Beetaloo • All acreage is 100% owned and operated by Empire • Acreage benefits from high Net Revenue Interest of ~90%1 vs typ
Slide 6: Empire’s Enormous Acreage Position
Empire’s Enormous Acreage Position Empire’s net effective prospective acreage is larger than leading Marcellus Shale Producers • Empire’s Velkerri Shale resource comparable in size to core areas of the Marcellus Shale Carpentaria • Empire’s Carpentaria and Western Beetaloo projects cover ~3,000,000
Slide 7: Empire aims to Convert LNG Scale Certified 2C to 2P
Empire aims to Convert LNG Scale Certified 2C to 2P Empire has rapidly grown its 2C resource base at a finding cost of <A$0.10 / GJ and is targeting maiden 2P Reserves in 2025 2025 Targeting Initial 2P Reserves Booking • Carpentaria-1 drill • Carpentaria-1 EPT • Carpentaria-2H EPT Key Drivers of 2C
Slide 8: Velkerri Shale is Analogous to the Prolific Marcellus Shale
Velkerri Shale is Analogous to the Prolific Marcellus Shale Empire’s wells confirm the Velkerri “B shale” reservoir properties are comparable with the prolific Marcellus Shale Effective Porosity (%) Excellent storage capacity 7% Gas in Place (Bcf/sq mi) Ro (%) 1.8% Thermally mature source rocks 100
Slide 9: Empire’s Stacked Play Improves Development Economics
Empire’s Stacked Play Improves Development Economics Four Stacked Reservoirs Stacked Shale Play Development Concept Carpentaria-4 Empire’s four stacked shale Type Section Depth Gas reservoirs are 5x thicker Gamma Ray M (ft) 0 Saturation 100% than the prolific Marcellus Single Reservoir (5000) C Shal
Slide 10: Positioned Across the Thickest Section of the Stacked Velkerri Shale
Positioned Across the Thickest Section of the Stacked Velkerri Shale Combined Thickness of A, Intra A/B, B and C Shales • Empire’s Beetaloo Projects area located across the thickest section of stacked Velkerri Shale reservoirs in the basin • Carpentaria Project has >300 m gross thickness of A, Intra
Slide 11: Basin-wide Appraisal Drilling has Demonstrated the Commercial Case
Basin-wide Appraisal Drilling has Demonstrated the Commercial Case 10
Slide 12: A Platform for Increased Productivity
A Platform for Increased Productivity Basin-specific drilling and completion methodologies are being developed to drive increasing flow rates and EUR consistent with the lived experience of the US Shale Revolution Drilled Appraisal Wells Future Pilot / Development Wells • Drilling 3km horizontal wel
Slide 13: Pathway to Full-Field Development of the Carpentaria Project
Pathway to Full-Field Development of the Carpentaria Project Year 2024 2025 2026 2028+ • Construct Carpentaria • First gas deliveries from • Drill, fracture stimulate • ‘Factory’ drilling Pilot Project midstream the Carpentaria Pilot and connect a further facilities and gas Project (~15TJ/d) ~3 well
Slide 14: Appraisal Activity has Delivered the Carpentaria Project
Appraisal Activity has Delivered the Carpentaria Project Cost-Effective Approach to Appraisal • Seismic, multi-stage vertical and horizontal flow tests have delineated a large stacked play • Four zones with a net effective area of >460,000 acres (~1,900 km2) • ~US$60m invested has delivered >1,739 P
Slide 15: The Carpentaria Pilot Project
The Carpentaria Pilot Project Empire is targeting first production from Carpentaria in H1 2025 The Carpentaria Pilot Project aims to: • Produce sales gas from existing Carpentaria-2H and Carpentaria-3H test wells and new pilot development wells • Process gas through Empire’s Carpentaria Gas Plant wh
Slide 16: Accelerated Path to Pilot Project Production
Accelerated Path to Pilot Project Production • Empire acquired AGL’s Rosalind Park Gas Plant (RPGP) in December 2023 • The plant has a design capacity of 42 TJ/d – more than the Pilot Project’s 25TJ/day production target • RPGP is a fit for purpose facility that meets all Carpentaria pilot specifica
Slide 17: Large Western Beetaloo Resource
Large Western Beetaloo Resource Comprehensive well and seismic datasets in the Western Beetaloo Project have defined a large extensive resource strategically located on existing infrastructure Resource has been delineated • Delineated ~2.6 million net effective acres • 100+ TCF OGIP Discovery (B Sha
Slide 18: Empire is a Responsible Operator with ESG at the Core of its Strategy
Empire is a Responsible Operator with ESG at the Core of its Strategy Empire’s Beetaloo gas contains sub 1% CO2 in the reservoir Environment • Carpentaria CO2 reservoir levels are extremely low compared to other new supply options • Empire will offset all Scope 1 emissions with minimal impact on rev
Slide 19: Australia, Asia and the World Need New Gas Supply
Australia, Asia and the World Need New Gas Supply Empire’s strategy is to supply domestic and international gas markets Phase 1: Northern Australian Gas Phase 2/3: Australian East Coast Phase 2/3: Global LNG Market Market Gas Market • Blacktip Gas Field: GSA to 2034 • Australian east coast domestic
Slide 20: The Beetaloo is Strategically Located Near Asian Markets
The Beetaloo is Strategically Located Near Asian Markets Australian domestic gas and Asian LNG indices trade at multiples of US Henry Hub prices LNG Tanker Sailing Days to Tokyo Bay1 • Exposure to Pacific Basin gas prices • >US$7 / MMBtu premium to Henry Hub • Japan/Korea Marker (Platts) LNG price •
Slide 21: The Empire Value Proposition
The Empire Value Proposition Phase 1 Phase 2 Phase 3 Carpentaria Pilot Project Domestic Gas Project Full-Field Development - LNG • Up to 25 TJ/d (24 mmcf/d) • ~200TJ/d (~190 mmcf/d) to • ~1 BCF per day to supply LNG supply Australian east coast export markets • Targeting first revenue in 2025, rampi
Slide 22: ASX:EEG
ASX:EEG Alex Underwood Managing Director https://empireenergygroup.net/ info@empiregp.net 21 +612 9251 1846
Slide 23: Appendix 1: A Globally Significant Resource Position
Appendix 1: A Globally Significant Resource Position Contingent Contingent Resources Prospective Prospective Resources(Liquids) Resources (Gas) (Liquids) Resources (Gas) High High Low Estimate Best Estimate Low Estimate Best Estimate Low Estimate Best Estimate High Low Estimate Best Estimate High Es
Slide 24: Appendix 2: Empire’s Board of Directors
Appendix 2: Empire’s Board of Directors Peter Cleary Alex Underwood Karen Green Louis Rozman Prof. John Warburton Chairman Managing Director Non-Executive Director Non-Executive Director Non-Executive Director • Distinguished 29-year career • Associate Director Energy • Over 30 years’ experience in
Slide 25: Appendix 3: Northern Territory Gas Market Overview
Appendix 3: Northern Territory Gas Market Overview The local NT gas market is in crisis due to the decline of existing supply sources Demand Overview • NT market requires 25 to 30 PJ p.a. (i.e. 70 to 80 TJ/d) • Sources of demand include: • NT Government (via Power and Water Corporation (PWC) and Ter
Slide 26: Appendix 4: Empire – Beetaloo Focused Since 2018
Appendix 4: Empire – Beetaloo Focused Since 2018 November 2022 November 2022 R&D Tax Offset of A$7.8m in New A$15m credit facility February 2015 established with Pangaea NT farms out cash received June 2019 Macquarie Bank 17.5% interest for A$45m Sale of Kansas oil assets to carry to Energy & Minera
Slide 27: Appendix 5: Connections to Market for Large Gas Volumes
Appendix 5: Connections to Market for Large Gas Volumes • APA Group (ASX: APA) and Empire have executed an agreement for the establishment of midstream gas infrastructure furthering the memorandum of understanding announced by Empire on 27 October 2021 • APA will spend up to A$5 million under a prop
Slide 28: Appendix 6: First Horizontal Well Flow Test A Success
Appendix 6: First Horizontal Well Flow Test A Success Carpentaria-2H is the fourth horizontal well in the basin, was drilled 100% within zone, and successfully flowed gas to surface from all 21 frac stages with basin leading low rates Stylised Schematic • Carpentaria-2H (“C-2H”) produced a total of
Slide 29: Appendix 7: Empire’s Record Breaking Carpentaria-3H Horizontal Well
Appendix 7: Empire’s Record Breaking Carpentaria-3H Horizontal Well Carpentaria-3H is the longest horizontal shale well, and the largest frac job ever executed in Australia, on time and ~A$6m under budget Stylised Schematic Without Vertical Exaggeration • Empire’s second horizontal well Vertical Exa
Slide 30: Appendix 8: Beetaloo Horizontal Well Activity
Appendix 8: Beetaloo Horizontal Well Activity Fracture Average Stimulation Depth of Total Fracture Horizontal Drilling Cost Stimulated and Extend Total Cost IP IP30 # Well Name Year Operator Horizontal Measured Stimulation CO2 Length (A$’M) Length Production (A$’M) (EPT 1) (EPT 2) (Below Depth (m) S
Slide 31: Appendix 9: The Empire Value Proposition – the Pathway to LNG
Appendix 9: The Empire Value Proposition – the Pathway to LNG Key assumptions for Slide 16 valuation calculations: 1. Phase 1 Carpentaria Pilot Project ▪ Gas price: A$12/GJ ▪ Production: 25 TJ /d ▪ Up to 9 wells producing wells by the end of 2027 (P50) 2. Phase 2 Domestic Gas Project ▪ Gas price: A$
Slide 32: Appendix 10: Conversion Table
Appendix 10: Conversion Table Exchange Rate US$ : A$ 0.65 Energy MCF : GJ 1.06 MMCF : TJ 1.06 BCF : PJ 1.06 GJ : TJ 1,000 GJ : PJ 1,000,000 Distance Feet : Metres 3.28 31
Slide 33: Disclaimer
Disclaimer This presentation has been prepared by Empire Energy Group Limited (“Empire” or the “Company”). The information in this presentation is information of a general nature and is subject to change without notice. The information in this presentation does not purport to be complete, nor does i
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