Origin Energy Limited · ASX:ORG
Origin Energy — UBS Resources Conference 2006
27 slides from Origin Energy's conference presentation, Jun 20, 2006
Slide 1: ASX announcement cover note: UBS Resources Conference presentation
Origin energy To Company Announcements Office Facsimite 1300 300 021 Company Australian Stock Exchange Limited Date 20 June 2006 From Bill Hundy Pages 27 Subject PRESENTATION Attached for your information is a presentation to be made by Mr Grant King, Managing Director to the UBS Resources Conferenc
Slide 2: Grant King, Managing Director, Origin Energy, June 2006
viiinintenanitinnnnnnanunnniiti ronccgitinas, apnoea Teta ee ect Grant King i, Managing Director, Origin Energy dune 2006
Slide 3: Origin's financial objectives and business strategies
Origin’s financial objectives and business strategies have been established to respond to changes in the Australian energy industry... « Financial Objective ~ Steady and predictable cashflows ~ EPS growth of 10-15% pa on average « Business Strategy ~ Positioned in the competitive (rather than regula
Slide 4: Strategy driven by view of eastern Australia supply-demand balance
Origin’s strategy has been driven by a view of the supply demand balance for energy in eastern Australia... 2001 showed large uncontracted demand creating perceived shortfalf in focal supply....... Eastwen Australian gay donvand Crlgln Enorgy ectimater 2001 astern Austraélan gee demand Crlgin Energy
Slide 5: Focus on finding gas close to markets
Consistent with this strategy Origin has focussed on finding gas close to markets... 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 building Exploration <= Legacy position in Cooper, onshore Otway, Bass, Perth, Surat and Bowen Basins Peat CSG acquisition..... Australia’s first long term CSG contr
Slide 6: Gas strategy has resulted in significant growth in reserves and contracts
Origin’s strategy of looking for gas where it is easy to market, rather than easy to find, has resulted in significant growth in reserves and new contracts ... Origin Energy Origin Energy Proved and Probabie {2P) Reserves Exploration and Production Gas Contracts (by buyer) 2500 4200 Wl 2P reserves B
Slide 7: 2P reserves predominantly gas with reserves to production ratio over 25 years
Origin’s 2P reserves are predominantly gas with a reserves to production ratio of over 25 years Sales gas & ethane LPG Condensate Crude oil Total PJ Kt Kbbi Kbbl PJe By Basin/Asset Cooper/Eromanga 246 415 3,371 2,499 299 Western Australia 19 35 4,110 43 Central Queensland 107 76 580 75 114 Otway/Bas
Slide 8: Production and cash-flows from Perth Basin oil fields
Origin has benefited from significant production and cash-flows from the Perth Basin oil fields... + The Perth Basin oil fields Hovea, Jingemia and Eremia, were discovered through 2001 and 2002, commencing production in late 2002 + Origin targeted net peak production of 5,000 barrels of oil per day,
Slide 9: Decline in Perth Basin production offset by offshore liquids
The decline in Perth Basin production will be offset by an increase in liquids produced from offshore developments... BassGas Project (42.5%) Otway Gas Project (30.75%) Approximate Annual Production Approximate Annual Production Gross Origin Net Gross Origin Net Gas Up to 23 PJ 9.8 PJ Gas 60 PJ 18.5
Slide 10: BassGas project approaching completion
Development of the BassGas project is approaching completion with gas now flowing into the market... BassGas Project (42.5%) « Commissioning and defect rectification work nearing completion. « Raw gas was re-introduced into the offshore facilities in tate April « Gas introduced into the onshore plan
Slide 11: Thylacine / Geographe development adds gas for southern markets
The Thylacine / Geographe development will add critical gas for growing southern markets... Otway Gas Project (30.75%) « Project capital expenditure largely complete + Installation of platform jacket completed and platform topsides secured South « Offshore and onshore pipeline austratia: installatio
Slide 12: Origin entered CSG early with significant position
Origin Energy entered CSG early and has established a significant position in producing and exploration areas German Creek CMM. Page 1t « Origin’s CSG portfolio covers 26,000 km? + 2P reserves of over 1,000 PS « Portfolio of contracts with AGL, QAL, Incitec Pivot and Energex « Interests in three pro
Slide 13: Conventional wisdom on coal seam gas a few years ago
It is interesting to reflect on the conventional wisdom of only a few years ago Page 12 “In addition to natural gas, there are prospects for the commercial utilisation of Australia’s deposits of coal seam methane ... However, there is significant uncertainty about the extent of coal seam methane res
Slide 14: Local knowledge and technology let CSG industry follow the US
However Origin believed that with local knowledge and appropriate technology the industry could follow the US... US Coal Seam Gas Production Coai Seam Gas Reserves in Queensiand by Company 1600 1600 1400 & sooo x 8 Ey a0. Ew 007] Es ghee 1800 aT lon low tg CE A : ra Crigin. mais Sales Gas Reserves {
Slide 15: Fairview / Spring Gully project, a world class CSG development
The Fairview / Spring Gully project represents a world class CSG develop Acquired interests in Spring Gully / Fairview for $99M in 2002/03 Indigenous Land Use Agreement (ILUA) completed and ATP 701P granted in 2003. Four Spring Gully PLs awarded in 2003/04 Origin has operatorship in Spring Gully and
Slide 16: Spring Gully Development Area
Spring Gully Development Area . At the time of purchase, Spring Gully (then known as Durham Ranch) contained: - 3 ATPs - 9 wells - Reserves of 159 PJ Proved & Probable Wellhead Gas Plant ; Total of 42 producing wells in x3500 HP compression phase 4 36TJ/d capacity . Spring Gully currently contains:
Slide 17: Spring Gully performing above expectations
Spring Gully has performed above expectations with higher water rates and lower water rates than expected Spring Gully gas and water production 40 30 a5 — Gas Production Vane T 7 25 — Waier Production h 4 [ if 36 + | 7 20 25 fl ‘vel sf | ¥ li "y Commencement of phase 2 connections ang we DM14 pilot
Slide 18: Walloon coals in Surat Basin fastest growing exploration play
The Walloon coals in the Surat Basin are the fastest growing exploration play with a potential resource of over 15,000 PJ Page 17 Queensland Gas Company/ Origin developing Argyle (67 PJ) to Incitec (7 PJ/a commencing mid-2007) and QGC Berwyndale (70 PJ) for CS Energy at 4 PJ/a commencing mid-2006 Ar
Slide 19: Investment in CSG has added significantly to Origin's growth
investment in CSG has added significantly to Origin’s growth... Legend nero Gates Gos Prine 4: swe Raw Gastipmime P25 [ALE Gosin exithiney + Initial CSG contracts signed by Origin were backed up by conventional resources and Origin’s portfolio of contracts + Knowledge of market and portfolio of rese
Slide 20: Proposed Spring Gully power station
The proposed Spring Gully power station in Queensland will use Origin CSG in a fully integrated development * Up to 1,000MW power station likely to be built in two 500MW blocks near gas plant site, sourcing cooling water from main “A” pond « There are many synergies around the project, including: -
Slide 21: New Zealand exploration and Kupe final investment decision
In New Zealand Origin has been extending its exploration position and a final investment decision for the Kupe d of June Project i s expected by the en cecenD EEE ita per: Tasmac Sear Taranaki aidan: Basin”. hue i Ad oe Kope’ : PML 3B E46 Wangan dl Page 2u Origin entered New Zealand anticipating a s
Slide 22: Kupe development by wellhead platform, pipeline and onshore station
Development will be by way of a wellhead platform, pipeline and onshore production station under a 2 stage process gy ee I ised Offshore drilling contract awarded for the development of three wells. * Technip Oceania Pty Ltd. awarded Alliance Partner for the construction of the offshore platform, pi
Slide 23: Development pipeline of risk-balanced exploration opportunities
Looking further ahead Origin’s development pipeline contains a risk-balanced portfolio of exploration opportunities... @ High} Onshore Otway aS) Cooper Basin & CSG Low .. with many of these opportunities specifically targeting the discovery of gas for domestic markets prospects § & Jeads in curent|
Slide 24: Active seismic program and high impact exploration wells planned
Following this strategy an active seismic exploration program is being undertaken in offshore areas with two high impact exploration wells planned in the Otway and Taranaki basins Basin © 20086 Bone dan Feb Mar Apr May Jun Jul Aue Sep Oct Nov Dec Jan Feb Mar Apr May Jun Otway oT — ——— — VICIP SEV VI
Slide 25: Project development as main driver for growth
Origin continues to concentrate on project development as the main driver for growth of the Company... Major Projects not yet contributing significantly to Origin’s results. ® Projects approved/unde : construction ® Yet to receive investment. .< approval < ‘Spring Gully power project cCGT. ‘Spr g Gu
Slide 26: eee
eee Any forward tooking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect and these statements speak only.as of the date of the announcement. This presentation _ should not-be-relied-upon.as.a recommendation to buy or sell “sha
Slide 27: For more information
For more information. For more information on Origin Energy please contact 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 to the Invest