Melbana Energy Limited · ASX:MAY
Melbana Energy — MEO Australia — Investor Presentation (May 2009)
17 slides from Melbana Energy's investor presentation, May 2009
Slide 1: Investor Update May 2009 - Disclaimer
Disclaimer This presentation includes certain forward-looking statements that have been based on current expectations about future acts, events and circumstances. These forward-looking statements are, however, subject to risks, uncertainties and assumptions that could cause those acts, events and ci
Slide 2: Investment considerations
Investment considerations Ticking all the boxes Element Response Present Niche Finding & monetising gas for export markets ; Portfolio High equity permits in the 2 established LNG provinces ; Clear commercial path for any discovered resources ; Board of directors Newly appointed last 12 months, expe
Slide 3: High quality gas portfolio
High quality gas portfolio Large equity positions in established LNG provinces Bonaparte Basin Carnarvon Basin Tassie Shoal (50%‐90%) NT/P68 (90%‐100%) WA‐360‐P (70%) WA‐359‐P (60‐70%) WA‐361‐P (35%) A natural infrastructure hub 12,070 km2 Drill/drop 31‐Dec‐09 Drill/drop 31‐Dec‐09 Environmental Appr
Slide 4: Board of directors
Board of directors Extensive industry and capital market experience Nick Heath >30yrs with ExxonMobil Non‐Executive Chairman Past APPEA President Appointed May 2008 Engineer Jürgen Hendrich Greg Short Stephen Hopley Michael Sweeney MD & CEO Non‐executive director Non‐executive director Non‐executive
Slide 5: Management depth enhanced
Management depth enhanced Focused on technical and commercial excellence Jürgen Hendrich 12yrs @ Esso Australia Ltd Chief Executive Officer (ExxonMobil subsidiary) Geologist GSJBW, Tolhurst (now PSL) Investment Banking Colin Naylor Robert Gard Dave Maughan Ken Hendrick CFO/Company Secy Commercial Ma
Slide 6: Remote Bonaparte Basin gas fields
Remote Bonaparte Basin gas fields ~25 Tcf is stranded due to location &/or gas quality issues CO2 & distance challenged Evans Shoal Abadi (Santos, Shell, Petronas, Osaka Gas) Indonesia ~6+TCF 25% CO2 4 bbl/mmscf Australia Barossa/Caldita Greater Barossa (ConocoPhillips/Santos) Sunrise Evans Shoal ~3
Slide 7: Tassie Shoal – the natural hub site
Tassie Shoal – the natural hub site Solution to location & gas quality issues Methanol Loading Buoy Gas Supply Pipelines Methane + CO2 + Steam ⇒ Methanol N PLEM 3× + 1× + 2× ⇒ 4× Cooling Methanol Plant Water Outlet Methanol Production absorbs 25% CO2 (5,000 tpd stage 1) ACP LNG Storage Tank Tassie S
Slide 8: Tassie Shoal capital cost advantage
Tassie Shoal capital cost advantage >US$1 Bn savings over comparable land‐based plant $3,500 $3,244 Tassie Shoal $3,000 Land based $2,500 $2,063 $2,000 $1,549 $1,500 $1,070 $943 $1,000 $500 $308 $300 $288 $236 $200 $252 $161 $‐ Liquefaction plant Pipeline to plant LNG storage tank Jetty/loadout Proj
Slide 9: NT/P68 discoveries – planning 2010 appraisal
NT/P68 discoveries – planning 2010 appraisal Heron – multi Tcf, wet gas potential (possible LNG feed) Blackwood – >25% CO2 (ideal methanol feed) Relative Wetness (Increasing) Heron gas wetness -10 10 30 50 70 90 110 130 150 Flamingo Fm 3750 3800 3850 Frigate Fm Heron Heron 3900 Dry gas ‐ tested D.sw
Slide 10: North West Shelf Acreage
North West Shelf Acreage A 1st class address to pursue proven analogues Pluto Under Construction 4.3 Mtpa Potential Expansion 4.3 Mtpa WA-359-P Wheatstone Martell 1 Proposed 10 Mtpa WA-361-P Zeus 1 WA-360-P Artemis Jansz/Io NWS Project Iago Existing 16.3 Mtpa John Gorgon Brookes Proposed 15-25 Mtpa
Slide 11: NWS fields found in 1970's
NWS fields found in 1970’s Time sub seafloor Wheatstone (’04) & Pluto (‘05) hid beneath the shelf slope… WA‐359‐P Depth sub seafloor WA‐360‐P Deep water and slope wells are slow WA‐361‐P velocity compared to shallow water wells. Other velocity variation due to shelf/slope incisions, Deep Water shall
Slide 12: Pluto and Wheatstone recent discoveries with same gas-water contact
Pluto (2005) & Wheatstone (2004) Recent discoveries with same Gas‐Water‐Contact Formation Pressure (psia) 4,500 4,550 4,600 4,650 4,700 4,750 4,800 4,850 4,900 2,850 2,900 2,950 Oxfordian 3,000 TVD Depth (mss) Pluto 1 3,050 Wheatstone 1 3,100 Pluto / Wheatstone Iago GWC ‐3127 mSS 3,150 Iago GWC ‐318
Slide 13: Schematic Cross Section
Schematic Cross Section Pluto‐Wheatstone‐Artemis connect via Oxfordian sands ~ 200m Water Depth Line of Cross Section ~ 500m Water Depth Wheatstone Artemis Pluto Oxfordian sands connect Jurassic and Triassic reservoirs Common Gas Water Contact (GWC) GWC Pluto Gas Field Wheatstone Gas Field Artemis P
Slide 14: Artemis prospect emerges
Artemis prospect emerges by flattening on GWC & mapping base of the regional seal Wheatstone structure defined by base of regional seal (Muderong Shale) WA-17-R / WA-253-P WA-360-P Triassic reservoir in Wheatstone structure Jurassic reservoir in Wheatstone structure Wheatstone‐1 Gas Chimney at crest
Slide 15: Artemis Resource Estimate
Artemis Resource Estimate 9.5 Tcf gas‐in‐place within WA‐360‐P Wheatstone GWC 10km Reservoir ‐ Jurassic Legendre Triassic faults Gas Chimney Indications on crest Legendre truncation of structure Jurassic Legendre Athol truncation Wheatstone / Artemis a single structure on base of regional seal with
Slide 16: Value proposition
Value proposition Compelling value gap – requires catalyst(s) to close Share Value Issue Capital Price (A$m) Remarks 417m ordinary $0.12 $50m Close at May 21st Less cash on hand $0.05 $22m $21.8m at March 31st Market value of MEO projects $0.07 $28m Net of cash Potential value of MEO Projects +Tassi
Slide 17: Summary
Summary Viable niche, compelling value gap, near term catalysts ¾Global E&P players see Australia as prospective for large gas resrouces ¾Bonaparte Basin 25 Tcf undeveloped gas resources CO2 & distance/location challenged Tassie Shoal located in heart of undeveloped gas oIntegrated solution for CO2