Melbana Energy Limited · ASX:MAY
Melbana Energy — MEO Australia — Non-Deal Roadshow (November 2010)
22 slides from Melbana Energy's roadshow presentation, November 2010
Slide 1: North American Roadshow
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: Corporate snapshot
Corporate snapshot Leverage to growing export gas markets, strong cash position MEO Australia Limited (ASX: MEO; OTC: MEOAY) Asian Net Gas Imports (LNG) 140 China Issued ordinary shares 477.2m 120 Unlisted options 8.9m 100 Market Cap (undiluted @ $0.50) A$239m 80 Other Cash @31st Oct (AUD/USD = $1.0
Slide 3: Experienced team
Experienced team Sound commercial decisions, underpinned by technical rigour Nick Heath Non-Executive Chairman Colin Naylor • Appointed May 2008 CFO/Company Secretary • Engineer • 30 years at Woodside, BHP, Rio • >30 years with ExxonMobil • Past APPEA President Jürgen Hendrich MD & CEO Robert Gard •
Slide 4: Strategically located acreage
Strategically located acreage Near existing LNG projects hungry for gas to underpin expansion Age of Main Gas Reservoir (Trap) Jurassic (Structural-Stratigraphic) Cretaceous (Structural) NWS Project (30 Tcf) Upper Triassic (Structural) East Artemis Existing Prospect 16.3 Mtpa (5 trains) Upper Triass
Slide 5: Petrobras farm-in to WA-360-P
Petrobras farm-in to WA-360-P ~12 Tcf prospect, multiple development options, drilling Nov/Dec 2010 • Petrobras farmed in for 50% interest (April 2010) • Paying 100% of 1st well (to US$41m cap, MEO & Petrobras 50/50 above cap) • MEO received US$31.5m cash, plus US$7.5m in seismic related back-costs
Slide 6: Artemis prospect revealed on MEO 3D
12 Tcf Artemis prospect revealed on MEO 3D Analogous to Perseus field - DHI* termination = Gas Water Contact? East Artemis Prospect: WA-360-P (MEO 25%) Perseus Field – NWS JV (nearby analogue) Base Calypso Amplitude Interpreted gas-water Depth Map Extract contact Published outline of field Interpret
Slide 7: Rigorous geophysical analysis
Rigorous geophysical analysis Used to identify & quantify probability* of gas sands occurring Acoustic Impedance 80% Gas Sand probability envelope Poisson’s Ratio Simultaneous inversion was undertaken to produce three datasets (Acoustic Impedance, Poisson’s Ratio and Gas Probability*) that were used
Slide 8: Resource assessment (100% basis)
Resource assessment (100% basis) Combined 12 Tcf mean prospective resources, 32% GCOS Formation P90 P50 Mean P10 Parameter Distribution Calypso Fm Legendre Fm Calypso GR Volume 10^6 m^3 20,650 23,769 Gas-in-place TCF 7.7 10.6 10.8 14.0 Net to Gross Triangular 25%-45%-70% 25%-45%-70% Recoverable TCF
Slide 9: WA-360-P case study
WA-360-P case study MEO’s technical skills and rapid evaluation identifies potential value 2007 2008 2009 2010 Permit awarded to Cue Energy and Gascorp (Feb ‘05) MEO farms-in for 60% equity (Oct’07) on seismic option acquire/process MEO acquires 200 km2 3D over Artemis lead (Dec’07) interpret Interp
Slide 10: Bonaparte Basin – more challenging for LNG
Bonaparte Basin – more challenging for LNG Best quality resource developed, other resources economically challenged Timor-Leste Evans Shoal-2 DST-1: 25 MMcfd 2500m DST-1A: 5.5 MMcfd 8% Abadi 10 Tcf Indonesia Greater 4% Australia Sunrise Barossa-1 % Barossa DST-1: <1 MMcfd CO2 Evans 16% DST-2: 30 MMc
Slide 11: Tassie Shoal Projects have environmental approvals
Tassie Shoal Projects have environmental approvals A modular hub ready for gas of any quality... Accommodation and Control Platform (ACP) Methanol Plant LNG Plant (5,000 tpd/1.75 Mtpa Stage 1 only) Methanol Gas (3.0 Mtpa) (For CO2 sequestration) N Loading Buoy Supply MEO 100% MEO 50%, Air Products 5
Slide 12: Projects provide optionality & flexibility
Projects provide optionality & flexibility Methanol plant has substantially lower reserves threshold than LNG 30 Uneconomic (unless blended) 25 2 Methanol Plants 1 Methanol Plant 3 Mtpa LNG + 1 Methanol Plants 20 CO2 Content (%) 3 Mtpa LNG + 2 Methanol Plants 15 10 CO2 sequestration Uneconomic 5 (un
Slide 13: Heron gas discovery – seeking farminee
Heron gas discovery – seeking farminee Best estimate, prospective resource ~5 Tcf Blackwood East Heron-2 Heron-1 Blackwood Well Well NT/P68 Heron Line of Cross Section Lowest Known Gas (LKG) = 4115m SS GCA Mid Case = gas down to 4133m SS Heron North Heron South MEO mapped structural spill point = 43
Slide 14: Portfolio management
Portfolio management Identify prospectivity, add value, test potential, replenish acreage 2H2009 2010 1H2011 WA-360-P (25%, Carnarvon) • Complete data room process • Select preferred farminee negotiate execute • Farmout agreements FIRB Permit Tfr • Regulatory approvals Artemis-1 (WA-360-P) • Raise f
Slide 15: Summary
Summary Balanced portfolio with considerable growth potential • Balanced board, experienced management team Songa Venus • ~A$71m uncommitted cash (assumes AUD/USD = parity) • Material gas projects near existing infrastructure • 25% equity in ~12 Tcf Artemis prospect – drilling Nov 2010 • Proposed Ta
Slide 16: Supplementary information
Supplementary information Technical back-up Developed Developed Developed Developed 16
Slide 17: CO2 emissions intensity
CO2 emissions intensity Projects must deal with carbon to achieve Environmental Approvals CSG gas gathering 875 km pipeline to Darwin Developed Developed Developed Developed Developed Developed Developed Devel’d Devel’d Gas production emissions intensity Drivers: • CO2 content in reservoir gas -
Slide 18: Methanol production sequesters CO2
Methanol production sequesters CO2 Enables gas with moderate CO2 content to be sanitised for LNG production Sequestration in companion Methanol plant 9% CO2 Feed Gas Example 74% of feed 67% of revenue LNG US$1.36bn/yr 480 mmscfd LNG Plant 3.0 Mtpa (at average 2006-present $ 4.5 Tcf, Japan LNG import
Slide 19: Prelude and Greater Sunrise FLNG
Prelude and Greater Sunrise FLNG “Shell plans world’s biggest ship at Australian field” Source: http://royaldutchshellplc.com 19
Slide 20: Timor Sea LNG Plant – no floating risks
Timor Sea LNG Plant (TSLNGP) – no floating risks “MEO plans smallest footprint 3.0 Mtpa LNG plant” Conventional Concrete and Steel LNG Tanks Conventional Concrete Gravity Based Structure • One 3.0 Mtpa module • 170,000 m3 LNG storage • Arup, Air Products and Worley Air Products 3.0 Mtpa LNG Arup sel
Slide 21: Tassie Shoal Methanol Project (TSMP)
Tassie Shoal Methanol Project (TSMP) Brings the gas processing plant to gas field – eliminating long pipelines Davy Process Technology M5000 Plant in Trinidad + = Methanol Plant on Concrete Gravity Structure (CGS) • Off-the-shelf technology • DPT, Arup & Aker Kvaerner designs ExxonMobil’s Adriatic L
Slide 22: Methanol Demand – China Only
Methanol Demand – China Only High forecast demand growth 25 Million tonnes per annum (Mtpa) 20 15 Fuels (direct use and additives) 10 5 Chemicals & other - 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 11.8 x 1.75 Mtpa forecast Methanol Plants • Strong growth averages more than one 1.7