Slide 1: The Gas Market Dichotomy: Implications for State Gas
Supplying East Coast Australia’s energy needs, sustainably and For personal use only environmentally responsibly The Gas Market Dichotomy: Implications for State Gas QUPEX 9 November 2021 ASX:GAS Image: Nyanda-4 gas flare
Slide 2: Disclaimer
For personal use only Disclaimer Disclaimer Future Performance This presentation (Presentation) has been prepared by State Gas Limited (ACN 617 322 This Presentation contains certain “forward looking statements”. Forward-looking 488) (State Gas). The Presentation and information contained in it is b
Slide 3: Gas Market Dynamics Changing
For personal use only Gas Market Dynamics Changing Sustained long term demand But supply not responding Average Nth America Rigs operating per year v Oil price 2500 2000 Av Rig No 1500 US$/Bbl 1000 500 0 Year Source: Baker Hughes Rig Count & Trading Economics 3
Slide 4: US Oil & Gas prices
For personal use only US Oil & Gas prices Average Weekly Price Percentage Change 78 6 15% 76 5 10% 74 72 4 5% 70 68 3 0% 66 2 -5% 64 62 WTI US$/bbl 1 -10% HH Gas 60 WTI Oil HH Gas US$/mbtu 58 0 -15% Source: US Energy Information Administration Weekly Oil & Gas prices 1/07/2021 – 30/09/2021 4
Slide 5: Worldwide Energy Prices Diverging
Worldwide Energy Prices Diverging Normalised Price For personal use only 2.5 2 1.5 1 0.5 HH Gas WTI JKM 0 Sources: 1) US Energy Information Administration Weekly Oil & Gas prices 1/07/2021 – 30/09/2021 2) https://www.barchart.com/futures/quotes/JKM*1/price-history/historical 5
Slide 6: East Coast Gas Market Dynamics
East Coast Gas Market Dynamics Demand: For personal use only LNG Netback Price ➢ Asian LNG demand strong ➢ Support required for volatile renewables ➢ Long term requirement for gas for commercial & industrial uses Forward price at 14 Sep 21 for Feb 2022 $29.83 Oct 2021 Actual: Supply: $22.18 ➢ Bass S
Slide 7: East Coast Australia: Looming Mid-term Supply Shortages
East Coast Australia: Looming Mid-term Supply Shortages ACCC Forecast Gas Supply and Demand, Southern States For personal use only 2022 forecast: supply less than demand Longer term forecast: big opportunities for new supplies Source: ACCC Gas Inquiry July 2021 Interim Report Source: ACCC Gas Inquir
Slide 8: Project Areas
Project Areas • Reid’s Dome & Rolleston-West For personal use only • 1594 km2 of combined acreage • PL 231 – 180 km2 • ATP 2062 – 1414 km2 • Highly prospective Bowen Basin sequence • Multiple conventional and unconventional targets • No domestic gas reservation • Queensland Gas Pipeline network ➢ <
Slide 9: Seizing the market window
For personal use only Seizing the market window Supply Flexibility Strategic Location Optimised supply Location benefits: ➢ No domestic gas reservations ➢ Strategically close to ➢ CSG for regular demand - Wallumbilla pricing hub: ➢ Conventional gas to meet 200km volatility - Gladstone LNG: 290km ➢ M
Slide 10: Upcoming Milestones
Upcoming Milestones ➢ Rougemont-2 Production Test For personal use only o Completion rig mobilized to site o Installation of down-hole pump & surface equipment o Dewatering commences o First gas ➢ Serocold-1 o Mobilisation of rig & equipment to site o Installation of anti-sanding solution o Installa
Slide 11: Reid's Dome Project
For personal use only Reid’s Dome Project ➢ Conventional gas (pipeline quality) established in northern province of permit – with additional prospects ➢ CSG confirmed in Reid’s Dome coal measures across length of permit ➢ Nyanda-4 well in southern province producing at highly commercial rates up to
Slide 12: East Bandanna Fairway Resources
East Bandanna Fairway Resources For personal use only Estimated Resources East Bandanna Fairway 1C 2C 3C 53 PJ 91 PJ 161 PJ Does not include conventional targets or western areas of permit East Bandanna Fairway (pale yellow) 12
Slide 13: For personal use only
“With nearly 400 PJs of geographically blessed 3C Resource in a tight gas market, State Gas’ task is to convert that resource into reserves in time to For personal use only address the upcoming national gas shortage." Richard Cottee Executive Chairman State Gas 13
Slide 14: Appendix – Competent Person Statement
For personal use only Appendix – Competent Person Statement Competent Person Statement and ASX Listing Rules Chapter 5 - Reporting on Oil and Gas Activities The estimate of Reserves and Contingent Resources for the Reid’s Dome and Rougemont Gas Projects provided in this Presentation, is based on, an
Slide 15: Contact
For personal use only Contact Level 8 46 Edward Street Brisbane QLD 4000 Australia Email info@stategas.com stategas.com