Slide 1: QUPEX Presentation
QUPEX Presentation 9 April 2024 ASX:EXR
Slide 2: Gas Market Overview
ve . > ibe a <_ i aed Gas Market ~~ — ae
Slide 3: Macro Overview
Macro Overview 1. 2. 3. The desired energy LNG demand forecast East Coast Australia transition is very hard to rise gas supply crisis • A wide variety of challenges – • Multiple industry and • The long recognised supply physical, economic and Government parties crunch is nearly upon us political – t
Slide 4: The Reality of the Energy Transition
The Reality of the Energy Transition The reality of the energy transition is that it is very hard and long dated – gas demand will grow not fall The Uber-realists Vaclav Smil: Jeremy Grantham: “Since Kyoto in 1997, there has “Indeed, the long-term correlation between energy use and GDP growth is bee
Slide 5: Growing Demand for LNG
Growing Demand for LNG Multi decade growth – with an increasing focus on security of supply Shell LNG Outlook 2024: • The global LNG market will continue growing into the 2040s • ATP 2044 to keep pace Rising demand for LNG expected with new supply • Renewables, supported by gas, erode coal’s role in
Slide 6: Current East Asian LNG Market Dynamics
Current East Asian LNG Market Dynamics Australia still the best located supplier to East Asian LNG Markets: • Lower transportation costs than USA or Qatar • No choke points like Panama Canal, Red Sea, Malacca Straits • Geo-political ally of traditional buyers Japan and South Korea • Still largest su
Slide 7: Upcoming East Coast Gas Supply Crunch
Upcoming East Coast Gas Supply Crunch Is it even worse than feared? • The now imminent East Coast gas supply crunch has been forecast for some time • It is almost upon us – a cold winter and falling Gippsland supplies ATPcould 2044 hit this year • Demand destruction has happened but cannot keep pace
Slide 8: The Grandis Gas Project in the Taroom Trough
2. The Grandis Gas Project in the Taroom Trough
Slide 9: The Taroom Trough – An Advantaged Location
The Taroom Trough – An Advantaged Location The prolific Bowen Basin is now set to deliver another energy source • The Grandis Gas Project is very well located in the Taroom Trough in the Southern Bowen Basin • Australia’s premier physical and commercial gas hub – Wallumbilla – is immediately adjacen
Slide 10: Gladstone LNG Plants Have Growing Ullage
Gladstone LNG Plants Have Growing Ullage The 3 LNG Plants at Gladstone need more gas • The three LNG plants (6 trains in total) at Gladstone have never operated at full capacity (and well constructed LNG plants should generally operate above nameplate capacity) • Current supplies – primarily gas fee
Slide 11: An Emerging Energy Super Basin
An Emerging Energy Super Basin The Taroom can be seen as an emerging Energy Super Basin • Wood Mackenzie’s Energy Super Basin concept: – ”The future is upstream co-located with low carbon” – “These are basins with the co-location of upstream hydrocarbons, clean electricity, standalone and/or hub sca
Slide 12: Material and Growing Energy Infrastructure
Material and Growing Energy Infrastructure The Taroom Trough is adjacent to substantial and growing energy infrastructure • New energy sources always benefit from adjacency to existing energy infrastructure – brownfields economics apply • The region has a substantial existing gas fired generation fl
Slide 13: Attractive to Large Sources of Capital
Attractive to Large Sources of Capital Securing material capital for gas development needs to pass through multiple gates • The Taroom Trough is a favourable location for such large companies: 01 Brownfields – many majors, large LNG buyers, etc, are 02 Low emissions profile – the Taroom is low in CO
Slide 14: Multiple Operator Activity
Multiple Operator Activity Home to several majors, the Taroom Trough hosts material discovered and potential gas resources • Shell: Currently drilling. “The estimate of recoverable hydrocarbons in this reservoir across ATP 645 in the area covered by PCA 1 (305), on an unrisked P50 basis, is 3.0 Tcf
Slide 15: Daydream-2 – Multiple Objectives
Daydream-2 – Multiple Objectives Daydream-2’s multiple objectives are centred around de-risking and value creation Target of >500 metres of gross vertical interval of prospective reservoirs 1. Permeable Sandstones Stimulation program to cover primary targets: 2. Tight Sandstones 1. 3. Fractured Coal
Slide 16: Daydream-2 Delivers a Welcome Surprise
Daydream-2 Delivers a Welcome Surprise Daydream-2 discovered a first in the Taroom Trough – a free flowing deep permeable formation • Drilled to total depth of 4,300 metres (14,108 feet) • Well drilled safely and under budget ATP 2044 Straightened • Gross interval of 607 metres intersected with up a
Slide 17: Lab Results Deliver More Upside
Lab Results Deliver More Upside Lab results reported in recent results suggest Perth & Cooper Basin analogues • Significant over-pressure confirmed – 9,400 psia in deep permeable zone • Analysis of cuttings samples from the deep permeable sand interval has identified clay ATP 2044 Straightened coati
Slide 18: Impressive Initial Flow Test Results
Impressive Initial Flow Test Results Successful Lorelle Sandstone flow testing • Conducted after a successful suite of DFITs • 2 stage flow test over permeable zone from 4,200 - 4,217 metres • Maximum Rate 2.3 MMSCFPD • Stabilized Rate 1.3 MMSCFPD • Gas was dry without indications of condensate or w
Slide 19: A New Play is Being Proven
A New Play is Being Proven At 4,200 metres this is the deepest sustained natural flow of gas in Queensland and may herald the start of a whole new- and material - gas play in Australia
Slide 20: Daydream-2 Lorelle Sandstone Flow Testing
Daydream-2 Lorelle Sandstone Flow Testing Gas Rate Water Rate 2nd Flow Period 1st Flow Period Max. Rate: Unloading 2.3 MMCFPD completion Max. Rate: 1.8 MMCFPD Stab. Rate: fluid 1.3 MMCFPD Stab. Rate: 1.3 MMCFPD Increasing flow rate Unloading completion fluid 1st Flow Period 1st Shut-In & Pressure Bu
Slide 21: Project Timeline – Delivering Upon Objectives
Project Timeline – Delivering Upon Objectives 2024 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Post Drill Analysis 1 2 3 3 Injectivity & Pre-Stimulation 4 5 Testing Stimulation Planning 6 Lorelle Sst Flow Test 7 Stimulation, Completion & 8 9 Production Testing 1 Compilation of post well analysis
Slide 22: Summary, Disclaimer and Appendix
4. Summary, Disclaimer and Appendix 22
Slide 23: Summary
Summary The World needs more gas for The East Coast has strong The Taroom Trough is longer – LNG markets are pricing, a growing supply exceptionally well located on growing gap – and LNG ullage multiple fronts Growing need for energy The Taroom Trough is Early success with stablished security and ke
Slide 24: Very Material Resources
Very Material Resources Contingent Resources – Sandstones only Prospective Resources - Coals ATP – 2044 – GRANDIS GAS PROJECT ATP – 2044 – GRANDIS GAS PROJECT Contingent Resources (100%) Prospective Resources (100%) Units 1C 2C 3C Units 1U 2U 3U Gas Initially In Place Bcf 2,128 7,007 22,699 Recovera
Slide 25: Important Notice & Disclaimer
Important Notice & Disclaimer 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 providing preliminary backgrou
Slide 26: Appendix
Appendix Methodology: The estimate of Prospective Resource was compiled by Elixir’s Chief Geoscientist, Mr Greg Channon, who has completed a detailed and formal report on the prospective resources in ATP 2044. The work was undertaken in accordance with the Society of Petroleum Engineers internationa
Slide 27: www.elixirenergy.com.au
INVESTORS & MEDIA Neil Young Managing Director info@elixirenergy.com.au Phone +61 8 7079 5610 www.elixirenergy.com.au www.elixirenergy.com.au ASX:EXR