Blue Energy Limited · ASX:BLU
Blue Energy — Investor Presentation (March 2019)
16 slides from Blue Energy's investor presentation, Mar 5, 2019
Slide 1: Investor Presentation
Investor Presentation 4-7th March 2019 1
Slide 2: Legals
Legals Disclaimer This presentation may contain forward looking statements that are subject to risk factors associated with the gas and energy industry. It is believed that the expectations reflected in the statements contained within are reasonable, but they may be affected by a range of variables
Slide 3: Blue's Portfolio
Blue’s Portfolio Carpentaria Basin 4 ATP1112A ATP1114A ATP117A Galilee Basin ATP1123A Nene, Alice Springs Eromanga Basin 1 ATP660A LEGEND [bes Blue Energy Licence —— Gas Pipeline — Oil & Gas pipeline — Oil pipline Sedimentary basin Brisbane Blue.
Slide 4: Blue's progress
B l u e ’s p r o g r e s s • Blue increased Contingent Gas Resource by 237 PJ • Total 3C = 4,179 PJ • Total 2P+2C = 1,237 PJ • 2P = 71 PJ • 3P = 298 PJ • Applied for Pipeline Survey Licence to connect Bowen Basin to Wallumbilla • PL Applications on foot • Opportunity to access Nth Qld electricity gr
Slide 5: Blue's Bowen Basin Gas Resource now 3,248 PJ
Blue’s Bow en Basin Gas R esource now 3,248 PJ 4
Slide 6: Blue's Gas Resources
Bl ue’s G as Resources Permit Block Assessment Announcement Methodology Certifier 1P 1C 2P 2C 3P 3C (PJ) Date Date (PJ) (PJ) (PJ) (PJ) (PJ) ATP854P 30/06/2012 19/03/2013 SPE/PRMS NSAI 0 22 0 47 0 101 ATP813P 29/10/2014 30/10/2014 SPE/PRMS NSAI 0 0 0 61 0 830 ATP814P Sapphire 5/12/2015 8/12/2015 SPE/
Slide 7: East Coast Gas Supply - still a challenge
East Coast Gas Supply - still a challenge • Contingent Resources are where new gas supply will come from • Southern market needs Qld CSG to meet demand – shortfall by 2022 (EnergyQuest) • Decline in CSG field gas supply reduces LNG export volumes - 2026 • Exploration now higher risk (surface & regul
Slide 8: The Domestic Gas Crisis - still unfolding (4 years on)
The Domestic Gas Crisis - still unfolding (4 years on) Un-developed Gas reserves = $15 billion Who knows where this volume will come from? AEMO 2018 Need to keep drilling to develop CSG 2P – 1,000’s of wells/year – for LNG contracts Gippsland declines 50% by 2022 Who’s got the Contingent Resources?
Slide 9: LNG Players Dominate Reserves
LNG Players Dominate Reserves 10,790 PJ 31,100 PJ 257 1,034 PJ 37,852 PJ 502 2,272 PJ PJ Source: EnergyQuest 8
Slide 10: Where will new gas supply come from? (…and when?)
Where will new gas supply come from? (…and when?) North Bowen –~15,000 PJ Development ready Beetaloo Beetaloo – 12,000+ PJ ? Cost, timing, economics, North regulation Bowen Amadeus – tariff to east coast/volumes Narrabri – 2,254+ PJ Regulatory risk, Activism, timing Narrabri ? Sole West Barracouta -
Slide 11: The case for the North Bowen Basin
The case for the North Bowen Basin • There’s enough discovered gas to meet east coast domestic demand for 30 years ~15,000 PJ – Assessed by top tier independent certifier • The Northern Bowen was earmarked for LNG feedgas development by global gas giants • Govt approvals for pipelines and developmen
Slide 12: The Bowen Basin and ATP
T h e B o w e n B a s i n a n d AT P 8 1 4 A Key to long term East Coast gas security • Recent Resource upgrade to Blue – +237 PJ 3C in Hillalong • PL Applications submitted and on foot • PPL 2037 application made – alternate standalone pipeline route • APA MOU on foot 11
Slide 13: Northern Territory Proterozoic plays
Northern Territory Proterozoic plays Next hottest onshore gas play • Material basin acreage position • Proven Petroleum System • World class source rocks – seriously old ones • Proof of concept with Origin discovery Origin Discovery well – gas flow = 0.8-1.2 mcfd • Pepper Inquiry Recommendations (13
Slide 14: East Coast must have more Gas Supply
East Coast must have more Gas Supply Bowen Basin is a solution • Gas for the domestic users is controlled by LNG exporters (fuelling calls for gas reservation and price ceilings) • EnergyQuest sees domestic gas shortfall – 2022 • Exploration moratoria/bans are still in place with Regulation now impa
Slide 15: Blue's Strategy
B lue ’s Str a te gy • Focussed on monetising Bowen Basin gas - Negotiating with potential buyers - Pushing ahead with standalone pipeline • Continue adding to gas resource base at lowest cost • Continual focus on overhead cost 14
Slide 16: 16
16