Ptr Minerals Limited · ASX:PTR
Ptr Minerals — Petratherm — Morgan Stanley Geothermal Investor Forum (November 2009)
34 slides from Ptr Minerals's conference presentation, Nov 27, 2009
Slide 1: MD's presentation to Morgan Stanley Geothermal Investor Forum
ASX Release PETRATHERM LIMITED ABN 17 106 806 884 For personal use only MD’s presentation to Morgan Stanley Geothermal Investor Forum Petratherm’s Managing Director, Terry Kallis, will present later today an update on the company and its projects to the Morgan Stanley’s Geothermal Investor Forum bei
Slide 2: Company and Projects Update
For personal use only Petratherm Morgan Stanley Geothermal Investor Forum Company and Projects Update Presented by Managing Director Terry Kallis 27 November, 2009
Slide 3: For personal use only
For personal use only
Slide 4: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Any forward-looking statements included in Petratherm makes no representation or Petratherm Limited (Petratherm). The this document involve subjective judgment warranty as to the accuracy, reliability or information contained in
Slide 5: Presentation Overview
Presentation Overview For personal use only › Introduction – Paralana DVD › Company and Projects Update › Recent Achievements › Paralana JV project › East Gippsland › Spain – Madrid, Barcelona and Canary Islands › China › Outlook for 2010 and beyond
Slide 6: Our company
Our company For personal use only Our company › Leading Australian geothermal exploration and development company › Projects spanning Australia, Spain and China › Flagship project – Paralana Other growth projects: › Madrid › Barcelona › Canary Islands, Tenerife › Victoria‟s East Gippsland Basin › Ch
Slide 7: Corporate and financial
Corporate and financial For personal use only Listed ASX:PTR Joint Venture Partners and Alliances › Shares on Issue: 94.45 million › Paralana › Share Price: $0.425 (25 Nov) › Beach Petroleum (up to 36 per cent for › Market Cap: $40.2 million (25 Nov) $30m) › Cash Position: $8.7 million (23 Nov) › TR
Slide 8: PTR Share Price and Volume 2009
For personal use only Price ($) 0.1 0.2 0.3 0.4 0.5 0.05 0.15 0.25 0.35 0.45 0 2/01/2009 16/01/20… 30/01/20… 13/02/20… 27/02/20… 13/03/20… 27/03/20… Petratherm share price 10/04/20… 24/04/20… 8/05/2009 22/05/20… 5/06/2009 19/06/20… 3/07/2009 17/07/20… 31/07/20… 14/08/20… 28/08/20… PTR Share Price an
Slide 9: Board of Directors
Board of Directors For personal use only Board An experienced board with a strong combination of commercial and technical skills › Financial management › Legal Derek Carter Simon O’Loughlin Richard Hillis Chairman Director Director › Marketing › Project Management › Corporate Governance › Exploratio
Slide 10: Our business model
Our business model For personal use only “To explore for and develop emission free geothermal energy projects that are commercially sustainable” › To develop a portfolio of quality geothermal energy projects › Explore both conventional and engineered geothermal systems – for power and heat › Find a
Slide 11: Recent achievements
Recent achievements For personal use only › Emerged from a challenging financial year in a strong position › Drilling commenced with Ministerial Launch and has now reached target depth of 4012 metres – casing is under way › TRUenergy signs as a joint venture partner › Paralana JV is awarded a $7 mil
Slide 12: Recent achievements
Recent achievements For personal use only › Paralana awarded $62.8 million Renewable Energy Demonstration Program Grant › $7.3 million raised in placement and Share Purchase Plan › Cooperative Agreement with Spanish Governments on the Geo-Madrid project › Exploration/assessments continue in Spain, C
Slide 13: Geothermal energy technologies and cost drivers
Geothermal energy technologies and cost drivers For personal use only Cost Drivers › Temperature Madrid District Heating › Drilling Depth › Flow Rate Tenerife Volcanic › Network Connection › Generation Plant East Gippsland › High upfront costs – drilling, Paralana fracture stimulation, connection, p
Slide 14: Renewable energy policy and geothermal
Renewable energy policy and geothermal For personal use only Strong Federal and State Strong industry networks Government support › $50 million geothermal drilling › Geothermal energy industry program with a maximum $7 million development framework per project › Australian Geothermal Energy › $300 m
Slide 15: Our Australian projects
Our Australian projects For personal use only › Paralana project › 2000 HP drilling rig brought into Australia by Petratherm and our JV partners - now available to geothermal industry enabling other projects › Drilling campaign of Paralana 2 well drilling finished at our site 600km north of Adelaide
Slide 16: Paralana geothermal energy JV project - snapshot
Paralana geothermal energy JV project - snapshot For personal use only › Anecdotal evidence from the Paralana hot springs in the nearby Flinders ranges › High heat flow - 128 mW/m² › Measured temperature of 109˚C at 1807m › Mature basin, stable formations, no hydrocarbons › Inferred geothermal resou
Slide 17: Paralana well drilling – key success factors
Paralana 2 well drilling – key success factors › For personal use only The well was terminated at a depth of 4,012m, took longer and cost more than originally planned – logging under way and to be cased. › Key success factors developed to guide Paralana project and incorporated in JV decision-making
Slide 18: Paralana project – HEWI model and economic assumptions
Paralana project – HEWI model and economic assumptions Key Economic Assumptions: For personal use only › Temp. of 170˚C to 200˚C at 3,600m to 4,000m › Flow rate of 75 litres per sec – conservative compared with other public announcements › Net output per production well of 3.75 MW based on flow and
Slide 19: Paralana joint venture arrangements
Paralana joint venture arrangements For personal use only › Beach Petroleum Farm-in (Jan 2007) for up to $30M for 36% › $5M first well and stimulation › $5M second well and stimulation – earns 21 % › After HEWI – Option to earn a further 15% for $20M › Plus equity share of project costs at every sta
Slide 20: Joint Venture Contributions post HEWI
Joint Venture Contributions post HEWI (assumes earn-in options exercised) Project costs to 2014 for 30 MW project – almost free carry For personal use only Forecast Beach TRU PTR With REDP – Base Capital Contribution Contribution Contribution Case Cost Cost ($m) ($m) ($m) ($m) Assumption 7.5 MW (1 w
Slide 21: Paralana transmission plan
Paralana transmission plan For personal use only › Close to customer at the Beverley mine – only 10 kilometres away › Plans for mine expansions - Four Mile deposit and new areas under exploration › Longer term plan to supply large- scale base load power through entry points at Port Augusta and Olymp
Slide 22: Industry transmission plan – northern SA
Industry transmission plan – northern SA For personal use only › 2009 independent report by McLennan Magasanik & Associates (MMA) shows savings in linking geothermal projects in the northern part of South Australia early to the National Electricity Market (NEM) › MMA estimates benefits of $860 milli
Slide 23: MMA Report: value of new transmission line
MMA Report ” Assessment of the value of new 275 KV transmission line to connect Geothermal Resources to the NEM in South Australia” For personal use only Paralana delivered price after paying for electricity transmission is estimated by MMA to be $83/MWh to Olympic Dam Table shows long term developm
Slide 24: Paralana - Drilling Completed to 4012 m
Paralana 2 - Drilling Completed to 4012 m – Nov 2009 For personal use only › First well designed following low-risk, standard operating methods › Steady but slow drilling due to hard formations › Conservatively drilled to ensure success › Wireline and LWD logging to be completed this week › Well is
Slide 25: Paralana – geothermal brines
Paralana 2 – geothermal brines For personal use only › Inflow zones from 3690m › Brine samples taken › Wireline and LWD Program Reservoir Characterisation! › Temperature › Permeability › Insitu stress field › Geology › Rock Properties
Slide 26: Australia - East Gippsland, Victoria
Australia - East Gippsland, Victoria For personal use only › Petratherm has a 9,000km2 geothermal exploration permit for the East Gippsland Basin in Victoria › Hot Sedimentary Aquifer Project › Favorable transmission connection options to the National Electricity Market › Expect fluid in excess of 1
Slide 27: Spain
Spain For personal use only Madrid › Madrid District Geothermal Heating Project › Signed cooperative agreement with Spanish Federal and Madrid Regional governments Barcelona › Have four geothermal investigation permits – both engineered geothermal and district heating potential Canary Islands/Teneri
Slide 28: Spain – Madrid district heating project
Spain – Madrid district heating project For personal use only “Highlighted as one of six renewable energy projects of interest within the Madrid Regional Government’s Renewable Energy Cluster” › Large tenement 20km by 20km in the north of Madrid › Three shallow 2000m wells drilled › One deep 3.4km w
Slide 29: Spain - Barcelona
Spain - Barcelona For personal use only › Petratherm has four geothermal investigation permits covering areas within the Valles and Ebro Basins near the city of Barcelona › Close to major electricity transmission infrastructure › The geology and market characteristics make the area attractive for ge
Slide 30: Spain - Tenerife
Spain - Tenerife For personal use only › Active volcanic island with a population of one million › Studies suggest magma chamber 3km to 4km below surface › Targeting 50MW to 100MW development › Energy prices are over €90/MWh or AUD $150/MWh - three times prices in Australia › Commenced extensive mag
Slide 31: China
China For personal use only › Exclusive Cooperative Agreement to identify high prospect geothermal energy projects in China with four Chinese Government Institutions › Chinese Geothermal Energy Society › Geological Survey of China › Chinese Academy of Sciences › China Institute of Geo-Environment Mo
Slide 32: Outlook for 2010 and beyond
Outlook for 2010 and beyond Paralana Joint Venture Project For personal use only › Complete logging, casing and temperature measurement, formation evaluation and fracture program design › 1st Qtr 2010: Mini fracture program/fracture stimulation design › 2nd Qtr 2010: Multi-zone fracture stimulation
Slide 33: Outlook for 2010 and beyond
Outlook for 2010 and beyond For personal use only › Complete Tenerife MT survey and progress JV negotiations – identify deep drill target in Q1 2010, develop work program › Continue Madrid GDH coordination with Federal & State Governments and progress JV opportunities complete Q1 2010 › Other projec
Slide 34: For personal use only
For personal use only www.petratherm.com.au
Petratherm — Morgan Stanley Geothermal Investor Forum (November 2009) on 6ix