Blue Energy Limited · ASX:BLU
Blue Energy — Shareholder Meeting (November 2023)
40 slides from Blue Energy's shareholder meeting presentation, Nov 14, 2023
Slide 1: AGM Presentation
For personal use only AGM PRESENTATION 14 November 2023
Slide 2: Disclaimer
LEGALS Disclaimer Not an offer or invitation For personal use only This presentation is not a prospectus, disclosure document or other offering document under Australian law or under any other law. Restrictions This presentation has been prepared for publication in Australia and may not be released
Slide 3: Blue Energy Acreage Position
For personal use only BLUE ENERGY ACREAGE POSITION 3
Slide 4: Focus Areas for Blue
FOCUS AREAS FOR BLUE 1. North Bowen Basin For personal use only • Sapphire PL and connection into the Moranbah Gas Project for gas sales • Lancewood Central, Hillalong and Monslatt block appraisal • Southern gas pipeline • Defend Land Court appeal by EDO on the granted Environmental Authority 2. Sur
Slide 5: Blue's Monetisation Strategy
Blue’s Monetisation Strategy North Bowen Basin Asset (ATP 814) For personal use only North Queensland gas market • Queensland Pacific Metals and Blue ✓ MoU for 112 PJ of gas over 15 years Change in ownership of the Moranbah Gas Project to QPME has been key Townsville gas offtake underpins initial Sa
Slide 6: Focus Areas for Blue: North Bowen Basin
For personal use only FOCUS AREAS FOR BLUE North Bowen Basin 6
Slide 7: North Bowen Gas Resource – Long Term, Reliable Supply
NORTH BOWEN GAS RESOURCE– LONG TERM, RELIABLE SUPPLY • North Bowen Basin • Has scale - 15,000 PJ recoverable gas resource • Has been de-risked – gas production since 2006 For personal use only • Has low environmental impact – • Has no Great Artesian Basin aquifers present • Blue has ~3,000 PJ of the
Slide 8: Blue's Sapphire Pilot Drilling
BLUE’S SAPPHIRE PILOT DRILLING Sapphire 5 and 6 pilots targeted the Permian Coal measures: For personal use only • Rangal Coal Measures • Fort Cooper Coal Measures • Moranbah Coal Measures Sapphire Block Pilot wells located on seismic line BE08-05 close Moranbah Gas Project to the intersection with
Slide 9: Pilot Well Design & Location - Recap
For personal use only PILOT WELL DESIGN & LOCATION - RECAP The Pilot configuration is a modified chevron intercept design • Approx 75m separation between the two vertical wells. • Two sets of lateral wells intercepting two vertical wells. • Gas will be produced out of the laterals, with water out of
Slide 10: Sapphire Reserve Upgrade from Drilling
For personal use only SAPPHIRE RESERVE UPGRADE FROM DRILLING 1P (PJ) 2P (PJ) 3P (PJ) 1C (PJ) 2C (PJ) 3C (PJ) Permit new +old new +old new +old new +old new +old new +old ATP 814P, – – 90.7 66.5 287.0 253.2 171.2 154.3 251.7 213.9 256.0 214.4 Sapphire Block, Qld % change – – +36.4% – +13.0% – +11.0%
Slide 11: Sapphire – Initial Development Plan
SAPPHIRE – INITIAL DEVELOPMENT PLAN • The Moranbah Gas Project (MGP) PL191 is under new ownership - QPME For personal use only North QLD Gas ATP814 N Pipeline • QPME Parent needs gas for new (to Townsville) Moranbah Gas Project Sapphire build Ni Refinery in Townsville Project (QPM) (Blue) Broadlea N
Slide 12: Sapphire – Next Steps
SAPPHIRE – NEXT STEPS • Blue and QPME have established optimum pipeline route for connection to MGP Node 3 For personal use only • Sapphire to Node 3 connection gives efficient, low cost and long term access to the MGP and immediate path to local North Queensland market • Existing Gas Supply MoU for
Slide 13: Focus Areas for Blue: Surat Basin Cobalt Project ATP
For personal use only FOCUS AREAS FOR BLUE Surat Basin Cobalt Project ATP 854 13
Slide 14: Blue's Other Gas Option – ATP - Surat Basin
For personal use only BLUE’S OTHER GAS OPTION – ATP 854 - SURAT BASIN 14
Slide 15: ATP - 100% Blue – Infrastructure Nearby
ATP 854 - 100% BLUE – INFRASTRUCTURE NEARBY Substantial Gas Resource • Independent NSAI assessment (Jan 2022) For personal use only • ATP854 is a material gas resource – 398 PJ Contingent Resource – Uncontracted + Favourable location • Two gas pipelines passing through the permit Connectivity to bot
Slide 16: ATP 100% Blue Energy – In the Heart of CSG Gas Fields
For personal use only ATP 854 100% BLUE ENERGY – IN THE HEART OF CSG GAS FIELDS AND INFRASTRUCTURE 16
Slide 17: The ATP Permian CSG Play
For personal use only THE ATP 854 PERMIAN CSG PLAY Potential Cobalt production Pilot test wells 17
Slide 18: Focus Areas for Blue: Northern Territory
For personal use only FOCUS AREAS FOR BLUE Northern Territory 18
Slide 19: Northern Territory
For personal use only NORTHERN TERRITORY 19
Slide 20: Northern Territory
For personal use only NORTHERN TERRITORY Proterozoic plays: Roper and McArthur Groups Conventional and shale plays 20
Slide 21: Synergy Between Geoscience Australia Lines and Blue Proposed Program
For personal use only SYNERGY BETWEEN GEOSCIENCE AUSTRALIA LINES AND BLUE PROPOSED PRO GRAM • GA raw 2D data available December • Blue will selectively process • Assess prospectivity • Plan 2D and strat well for mid Geoscience Australia Lines Proposed Blue Energy Program 2024 21
Slide 22: Northern Territory Forward Plan
NORTHERN TERRITORY Forward Plan For personal use only Geoscience Australia (GA) acquired regional 2D seismic data in August/September 2023 across Blue’s tenements Blue will acquire the overlapping GA data and process it to assess prospectivity Blue has lodged Environmental Management Plan for the 2D
Slide 23: Recap - Focus Areas for Blue
RECAP - FOCUS AREAS FOR BLUE 1. North Bowen Basin For personal use only • Sapphire PL and connection into the Moranbah Gas Project for gas sales • Lancewood Central, Hillalong and Monslatt block appraisal • Southern gas pipeline • Defend Land Court appeal by EDO on the granted Environmental Authorit
Slide 24: Corporate Reserves and Resources
For personal use only CORPORATE RESERVES AND RESOURCES 24
Slide 25: For personal use only
For personal use only
Slide 26: Background Slides: The Role of Gas
For personal use only BACKGROUND SLIDES THE ROLE OF GAS 26
Slide 27: Gas Isn't Just About Electricity
GAS ISN’T JUST ABOUT ELECTRICITY WHY GAS IS CRITICAL? Natural Gas CH4 For personal use only Industry Power Domestic Fertiliser Base Load electricity Heating Methanol Peaking generation– Cooking quick start Glass/Bricks Back up for solar and Cement wind Process Heat Blue Hydrogen (lowest cost Hydroge
Slide 28: Gas Has No Substitute for Many Industries
For personal use only GAS HAS NO SUBSTITUTE FOR MANY INDUSTRIES 28
Slide 29: Australia's Net Zero Target
AUSTRALIA’S NET ZERO TARGET THE PENNY DROPS – GAS IS VITAL – AS TIMELINES MEET REALITY A heavier hand to hit green target: Treasurer Dr Jim Chalmers For personal use only Speaking at The Australian-Melbourne Institute Economic and Social Outlook conference 2/11/23 Dr Jim Chalmers has warned Australi
Slide 30: But It Looks Like the Rest of the World Isn't Buying Into It
For personal use only BUT IT LOOKS LIKE THE REST OF THE WORLD ISN’T BUYING INTO IT Key Findings “Governments, in aggregate, still plan to produce more than double the amount of fossil fuels in 2030 than would be consistent with limiting warming to 1.5°C. The persistence of the global production gap
Slide 31: Several Governments Understand Their Societies Need Fossil Fuels
For personal use only SEVERAL GOVERNMENTS UNDERSTAND THAT THEIR COMPLEX SOCIETIES NEED FOSSIL FUELS Figure ES.2 Government plans and projections would lead to an increase in global coal production until 2030, and in global oil and gas production until at least 2050. (See details in Chapter 2 and Fig
Slide 32: The Developed World Is Embarking on a Net Zero Path
For personal use only THE DEVELOPED WORLD IS EMBARKING ON A “NET ZERO” PATH BECAUSE OF THE “CLIMATE CRISIS” BUT… HAS THE PROBLEM BEEN FRAMED CORRECTLY? 32
Slide 33: What Are the Metrics of This Climate Crisis?
For personal use only … WHAT ARE THE METRICS OF THIS “CLIMATE CRISIS”? NASA says the planet has “greened” significantly in the last 20 years – due to CO2 Result – increased crop yields ….But that’s Good! Global annual death rate from Life expectancy has more than natural disasters has dropped by dou
Slide 34: Is the Planet in Uncharted Climate Territory?
IS THE PLANET IN FACT IN UNCHARTED CLIMATE TERRITORY? NO - WE HAVE ACTUALLY BEEN HERE BEFORE Reconstructed global temperature over the past 420,000 years based on the Vostok ice core from the Antarctica For personal use only Petit, J.R., et al., 2001. Vostok Ice Core Data for 420,000 Years. IGBP PAG
Slide 35: Australia Contributes 1.2% of Global Annual CO2 Emissions
BUT LET’S SAY CO2 IS THE DEMON AUSTRALIA CONTRIBUTES 1.2% OF GLOBAL ANNUAL CO 2 EQ EMISSIONS For personal use only Australia’s GHG emissions today are less than they were in 1994 30% 13.5% 7% 1.2% Source: Australia’s Green House Gas Accounts Source: Energy Institute Statistical Review of World Energ
Slide 36: Global Gas Demand Split by Region
GLOBAL GAS DEMAND SPLIT BY REGION – INTERNATIONAL GAS UNION • Australia accounts for 1% of global gas demand For personal use only • Australia generates 1.9% of global electricity • More gas is generally used in generation where there is less coal in the energy mix • Asia has the highest use of coal
Slide 37: IEA Sees Imminent Demise of Oil and Gas as Greatly Exaggerated
For personal use only …. THE IEA SEES THE IMMINENT DEMISE OF OIL AND GAS AS GREATLY EXAGGERATED IEA forecast global oil demand will remain at 100 IEA forecast global gas demand to remain steady at million barrels per day out to 2030 then slowly decline around 145,000 PJ pa (4,000 BCM) out to 2050 to
Slide 38: But AEMO Sees Less Gas Fired Power Generation After 2025
For personal use only BUT AEMO SEES LESS GAS FIRED POWER GENERATION AFTER 2025 Source: AEMO GSOO March 2023 38
Slide 39: Southern Gas Market Must Rely on Diverted or Imported LNG
AND THE SOUTHERN GAS MARKET MUST RELY ON DIVERTED LNG EXPORTS AND/OR LNG IMPORTATION For personal use only Diverted LNG volumes from Queensland OR Imported LNG volumes from somewhere via Port Kembla facility (PKET) 39 Source: AEMO GSOO March 2023
Slide 40: Government Sees Path to Net Zero as Electrification
GOVERNMENT SEES THE PATH TO NET ZERO AS ELECTRIFICATION – THROUGH A GRID WITH 82% RENEWABLE ENERGY GENERATION BUT RENEWABLES NEED FIRMING (FORMERLY KNOWN AS BACKUP GENERATION ) • First electrons from Snowy 2.0 not until 2029 For personal use only • Coal plants coming out of service 2025-2027 • Build