Slide 1: EcoGen Conference Presentation by Managing Director
ASX Release For personal use only PETRATHERM LIMITED ABN 17 106 806 884 EcoGen Conference Presentation by Managing Director Later this afternoon, Petratherm’s Managing Director, Terry Kallis, will present to the Annual EcoGen Conference being held in Brisbane. Petratherm is one of only two geotherma
Slide 2: EcoGen 2011 Paralana Geothermal Energy Project
EcoGen 2011 For personal use only Paralana Geothermal Energy Project Managing Director Terry Kallis September 2011
Slide 3: For personal use only
For personal use only
Slide 4: Disclaimer and competent persons statement
Disclaimer and competent persons statement For personal use only Disclaimer In particular, they speak only as of the date of this To the extent permitted by law, Petratherm and its This presentation has been prepared by Petratherm document, they assume the success of officers, employees, related bod
Slide 5: Presentation Outline
Presentation Outline For personal use only › Corporate and financial overview › Geothermal energy potential in Australia › Paralana project joint venture › Project overview – economic and technical › Latest update: July 2011 fracture stimulation › Summary and looking forward
Slide 6: Petratherm - Corporate and financial latest snapshot
Petratherm - Corporate and financial latest snapshot For personal use only Listed ASX : PTR › Shares on Issue: 145.06 million › Share Price: $0.11 › Market Cap: $15.96 million › Cash Position:$3.56 million › Shareholders: 3,660 shareholders › Minotaur Exploration 17.91% › Australian Ethical Investme
Slide 7: Our business model
Our business model “To explore for and develop emission free For personal use only 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 8: Track record of achievement
Track record of achievement For personal use only › Paralana 1B – recorded a high heat flow of 113 mW/m and high temperature gradient to 1800m depth › Paralana 2 well - 4,003m deep injector well successfully drilled › Temperatures of 176˚C at 3,672m measured and 190˚C modelled at 4,000m › Strong gov
Slide 9: Paralana Project – commercial / market overview
Paralana Project – commercial / market overview › For personal use only Potentially commercially viable at all stages of development › Close (10kms) off grid local customer (5-30MW) – then expand to on grid development (260 MW) › Transmission options for connection to market – potential growth areas
Slide 10: Paralana Project - Joint venture partners
Paralana Project - Joint venture partners For personal use only › Beach Energy › Top four Australian ASX listed oil and gas company located in Adelaide and with interests in Australia, Europe and Africa › TRUenergy › Wholly owned subsidiary of CLP* group – listed on the Hong Kong stock exchange – an
Slide 11: Paralana Project – Regional Picture
Paralana Project – Regional Picture For personal use only *Please note Competent Persons Statement near beginning of presentation
Slide 12: Development Model – Heat Exchanger Within Insulator
Development Model – Heat Exchanger Within Insulator For personal use only › Higher Permeability › Chemically Stable › Lower Fracc Challenge? › Mesoproterozoic metasediments – bedding / joint surfaces = Cheaper Power! HEWI Model at Paralana The required heat exchanger is created in the insulating lay
Slide 13: Paralana well summary
Paralana 2 well summary › For personal use only Depth 4003m (G.L. A.H.D.) › Well cased and cemented to 3725m › Extrapolated bottom hole temperature ~ 190oC › High pressure geothermal brines intersected from 3680m › Zircon dating confirms 1585 ± 11 Ma Reservoir Sequence › Contains numerous fractures
Slide 14: Hydraulic fracture stimulation at interval 3679-3685m
Hydraulic fracture stimulation at interval 3679-3685m For personal use only › Fracture stimulation, July 2011 - completed successfully › Inject larger volume of water at higher rates, up to 27l/sec › Array capable of recording and locating micro-seismic events with very small magnitudes on the Ric
Slide 15: Main stimulation – successful reservoir creation and enhancement
Main stimulation – successful reservoir creation and enhancement For personal use only Photo: courtesy Advertiser, July 2011
Slide 16: Passive seismic array
Passive seismic array For personal use only IESE (Institute of Earth Science and Engineering NZ) one deep borehole sonde at 1790m in Paralana 1b well six borehole sondes between 150m and 200m eight surface seismometers four accelerometers MEQ - Array Managed by IESE
Slide 17: Main Fracture Stimulation greatly exceeded Target
Main Fracture Stimulation greatly For personal use only exceeded Target • Over 7000 micro- seismic events triggered • Fractured reservoir target exceeded, with micro-seismic events located 900m away from the well • Connection to deep fractures/faults below the injection point • Reservoir will contin
Slide 18: Main Fracture Stimulation – Views of micro-seismic cloud
Main Fracture Stimulation – Views of micro-seismic cloud For personal use only
Slide 19: Fracture Stimulation Process
Fracture Stimulation Process For personal use only
Slide 20: Flow test planned in the 3rd Quarter 2011
Flow test planned in the 3rd Quarter 2011 For personal use only Flow test A flow test is scheduled in the 3rd Quarter 2011 with the aim of collecting further information on: › Pressure › Temperature › Flow data › Geothermal brine chemistry
Slide 21: Key milestones for the Paralana geothermal project
Key milestones for the Paralana geothermal project For personal use only Paralana JV project planned milestones 3rd Qtr 2011: Main fracture stimulation 3rd Qtr 2011 : Flow test 1st half 2012: drilling of the Paralana 3 deep producer well Mid-2012: Circulation Test – Demonstration of Flows
Slide 22: Project summary and looking forward
Project summary and looking forward For personal use only › successfully drilled 4 km well and confirmed economic temperatures › project de-risked through successful hydraulic fracture stimulation in July 2011 › fracture stimulation costs covered: current cash and JV with Beach/TRUenergy › Conduct f
Slide 23: Regulatory framework looking forward
Regulatory framework looking forward In the long term Australia needs clear and For personal use only stable policy and regulatory framework for renewable & geothermal energy › Price on carbon › Capital funding of projects › Investment in network connection Federal Government’s new “Securing a Clean
Slide 24: www.petratherm.com.au
For personal use only www.petratherm.com.au
Slide 25: Geothermal energy overview
Geothermal energy overview For personal use only Geoscience Australia has estimated that the potential geothermal resource is equivalent to 26,000 times Australia’s annual electricity energy consumption
Slide 26: Geothermal technologies
Geothermal technologies For personal use only
Slide 27: Energy technologies - Australian Resource Assessment - GA
Energy technologies - Australian Resource Assessment - GA For personal use only Independent study by MMA* (now part of SKM) shows that EGS geothermal is expected to be highly competitive with all forms of generation and amongst the lowest cost renewable, reducing in cost over time to be under $100/M
Slide 28: Geothermal energy overview
Geothermal energy overview For personal use only Operating Project Examples Key Project Parameters Paris basin district heating › Temperature › Drilling depth Azores volcanic › Flow rate › Network connection › Generation plant type Imperial Valley HSA › Market/Customer Heber plant › Optimization of
Slide 29: Paralana joint venture arrangements
Paralana joint venture arrangements For personal use only › Beach Energy Farm-in (Jan 2007) for up to $28m for 36% plus equity share of project costs at every stage › First $5m for first well and $2.7m for stimulation – earns 21% › Contributes at 21% for second well and stimulation › After demonstra
Slide 30: Project joint venture – cost estimates
Project joint venture – cost estimates (assumes JV earn-in options exercised) › Demonstrate flows (stages) Project JV costs PTR cost For personal use only › Fracture stimulate – Paralana 2 $ 1.0m $ 0.4m 1 › Drill producer well – Paralana 3* $18.0m $ 8.5m 2 › Fracture stimulate/circulate $ 1.5m $ 1.0
Slide 31: Paralana project – Modelled Economic assumptions
Paralana project – Modelled Economic assumptions Key Economic Assumptions: For personal use only › Temperature of 190˚C at depth of 4,000m › Flow rate of 75 litres per sec – considered most conservative in sector › Net output per production well of 3.75 MW based on flow, inclusive of parasitic loads
Slide 32: Paralana geothermal energy JV project - snapshot
Paralana geothermal energy JV project - snapshot For personal use only › High heat flow and high temperature measured › Natural fracture permeability at optimal depth – below 3670m, presence of in situ geothermal brine › No hydrocarbons shows in the basin › Promising fraccing results with large frac