Origin Energy Limited · ASX:ORG
Origin Energy — JPMorgan CSG Corporate Access Day (October 2008)
30 slides from Origin Energy's conference presentation, Oct 23, 2008
Slide 1: ASX cover fax: Presentation
For personal use only To Company Announcements Office Facsimile 1300 300 021 Company Australian Securities Exchange Limited Date 23 October 2008 From Bill Hundy Pages 30 Subject PRESENTATION Attached for your information is a presentation being made by Mr Paul Zealand, General Manager Exploration an
Slide 2: Coal Seam Gas Comes of Age
For personal use only JPMorgan CSG Corporate Access Day Coal Seam Gas Comes of Age 23 October 2008
Slide 3: Important Notice
Important Notice This presentation does not constitute investment advice, or an inducement or recommendation to acquire or dispose of any securities in Origin, in any jurisdiction (including the USA). This presentation is for information purposes only, is in a summary form, and does not purport to b
Slide 4: Agenda
Agenda For personal use only • Strategy, Performance and Growth • CSG to LNG Joint Venture with ConocoPhillips • Update on Origin’s CSG operations • Looking forward 3
Slide 5: Strategy, Performance & Growth
For personal use only Strategy, Performance & Growth
Slide 6: Origin has deepened the integration of its business
Origin has deepened the integration of its business through a substantial increase in gas reserves and generation under development For personal use only Fuel Retailer Generator Largest holder of proved and Largest owner and developer A leading wholesaler and probable gas reserves in of gas fired el
Slide 7: Strong result continues track record of underlying earnings growth
This strong result continues Origin’s impressive track record of underlying earnings growth Revenue EBITDAF 9,000 1,500 Compound annual growth rate: 26% Compound annual growth rate: 23% For personal use only 7,500 1,200 6,000 900 $millions $millions 4,500 600 3,000 300 1,500 0 0 2001 2002 2003 2004
Slide 8: CSG to LNG Joint Venture with ConocoPhillips
For personal use only CSG to LNG Joint Venture with ConocoPhillips
Slide 9: ConocoPhillips transaction confirms quality of Origin's CSG position
ConocoPhillips transaction confirms quality of Origin’s CSG position… ConocoPhillips to acquire 50% of a CSG to LNG Joint Venture for: • Up-front payment of US$5.0 billion For personal use only • Fixed contribution of A$1.15 billion to carry Origin’s share of costs to Final Transaction: Investment D
Slide 10: Fully aligned transaction combining CSG development with LNG expertise
Fully aligned transaction that combines Origin’s leading position in Australian CSG development… Upstream LNG Plant LNG Marketing Domestic Gas For personal use only Operator Origin ConocoPhillips Joint Venture Origin Ownership 50:50 50:50 50:50 50:50 Extent of All gas production LNG Plant into All d
Slide 11: Joint Venture will target first production in 2014
Joint Venture will target first production in 2014… Period Milestone • ConocoPhillips’ recent development of Darwin LNG on For personal use only 2009 Commence FEED time and on budget demonstrates Late 2010 Train 1 FID that it is well placed to fast track 2010/11 Train 2 FID this development 2014 Tra
Slide 12: Transaction includes all of Origin's CSG reserves & resources
Transaction includes all of Origin’s CSG reserves & resources… For personal use only The transaction also includes: • CSG-related production facilities • Origin’s conventional interests of 44 PJe in the Denison Trough • Existing CSG sales contracts to Origin and third parties Some of Origin’s CSG re
Slide 13: CSG Operations Update
For personal use only CSG Operations Update
Slide 14: Origin's CSG permits in the Bowen and Surat Basins
Origin acquired its first CSG interests in the Peat field over 11 years ago, and Origin now holds CSG permits covering over 17,000 km2 in the Bowen and Surat Basins#... • Origin’s Bowen Basin CSG interests include: For personal use only Spring Gully (94-99%) operator Peat (100%) operator Fairv
Slide 15: Largest 2P and 3P CSG reserves in Australia
Origin has the largest 2P and 3P CSG reserves in Australia with acreage in both Qld CSG “sweet spots”… For personal use only … and the flexibility to direct these reserves to markets with the greatest potential return 14 Note: The Undulla Nose Area is represented here as bounded by the Leichhardt-Bu
Slide 16: Key technical characteristics underpin sweet spot identification
Key technical characteristics underpin “sweet spot” identification Comet Ridge Undulla Nose Area (Bowen Basin) (Walloons – Surat Basin) For personal use only Talinga / Kenya / Argyle / Existing Fields Spring Gully / Fairview Orana / Condabri Average Net Coal Metres 8 20 Average Gas Content m3/tonne
Slide 17: Technical characteristics on par with US CSG
Technical characteristics result in key value drivers on par with US CSG Estimated Average Peak Flow Rate Bowen 3.0 For personal use only Basin Australia United States 2.5 2.0 Northern Walloons TJ / day 1.5 Undulla Nose 1.0 Eastern Walloons 0.5 0.0 San Juan Basin Walloon Undulla Gully/Fairview Estim
Slide 18: Spring Gully Phase development over 85% complete
Spring Gully Phase 5 development is over 85% complete… Includes: For personal use only • 60 development wells • 120 km of trunkline & Strathblane Strathblane Gas Plant Gas Plant flowlines • Additional 3 x 500 HP compressors at Strathblane Spring Gully Spring Gully • Construction of Taloona Gas Plant
Slide 19: Spring Gully Production and Development
Spring Gully Production and Development 160 160 Historical Gas Production Planning a Phase 6 expansion to 180 TJ/d For personal use only 140 Forecast Gas Production 140 Historical Water Production 120 120 Producing more than Water Produced ('000 BPD) Sales Production (TJ/d) 105 TJ/d from 108 wells 1
Slide 20: Spring Gully Water Treatment Facility is operational
Spring Gully Water Treatment Facility is operational… • Initial development of the Spring Gully field utilised water evaporation ponds while investigations into For personal use only several other water handling options were completed • Reverse Osmosis was identified as the best water treatment opti
Slide 21: Development of operated Walloons permits at Talinga
Origin has commenced development of its operated Walloons permits at Talinga after the initial development of Spring Gully… • Plans to ramp up to 90 TJ/d by 2011 For personal use only • Approx 100 wells needed to meet plateau • Development drilling commenced in April 2008 • Gas plant construction un
Slide 22: Non-Operated Areas
Non-Operated Areas For personal use only Fairview Undulla Nose Exploration Potential Exploration Potential Producing Field Producing Field • Operated by Santos • QGC operates non-Origin operated interests • Presently producing 72TJ/d (100% JV) - • Presently producing ~20TJ/d (100% JV) – constrained
Slide 23: Spring Gully and Talinga/Orana fields interconnected for flexible gas supply
The Spring Gully and Talinga/Orana fields are currently being developed and interconnected to provide flexible gas supply for the Darling Downs Power Station and current contracts… For personal use only • Supply for the Darling Downs power station and the Rio Tinto Aluminium contract will commence i
Slide 24: Looking Forward
For personal use only Looking Forward
Slide 25: A CSG to LNG Project is a very significant project
A CSG to LNG Project is a very significant project… • Origin & ConocoPhillips’ CSG to LNG Joint Venture to target FID by late 2010 and first LNG production by 2014 For personal use only • Expect to ramp up CSG production to over 300PJ/a by 2014 for the 1st train of 3.5MTPA 500 Domestic contracts Ann
Slide 26: JV with unrivalled access to resources and expertise
The Origin ConocoPhillips transaction creates a JV with unrivalled access to resources and expertise to apply to a CSG to LNG project… Origin ConocoPhillips For personal use only CSG Expertise & Experience: Largest CSG CSG Expertise & Experience: Largest CSG reserves and largest CSG producer in Aust
Slide 27: Origin is already developing its CSG Development Capability
Origin is already developing its CSG Development Capability to meet domestic contracts and LNG Origin is Australia’s largest CSG producer, ConocoPhillips is the USA’s largest CSG producer, with proven LNG development experience in Australia. For personal use only • Origin already has in place capabi
Slide 28: Strong regional presence and community engagement
Origin has a strong regional presence and well-developed community engagement and sustainability practices… For personal use only • Strong relationships within the Community, Industry, Land Owners and Government • Around 30 years of building sustainable relations in the community as a local employer
Slide 29: ConocoPhillips Origin Energy
= ConocoPhillips origin energy
Slide 30: Further Information
Further Information For more information on Origin please contact For personal use only Angus Guthrie Manager, Investor Relations Email: angus.guthrie@originenergy.com.au Office: +61-2-8345 5558 Mobile: + 61-4-1786 4255 Alternatively visit our website www.originenergy.com.au and follow the prompts t
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