Melbana Energy Limited · ASX:MAY
Melbana Energy — Methanol Australia — Investor Presentation (September 2006)
28 slides from Melbana Energy's investor presentation, September 2006
Slide 1: Methanol the clean alternative
Methanol the clean alternative Investor Presentation - Methanol Australia September 2006
Slide 2: Presentation Disclaimer
Methanol Australia Limited Presentation Disclaimer This presentation contains 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 assum
Slide 3: Emerging GTL province
Emerging GTL province Developed Gas Reserves • Bayu-Undan (~3.4 Tcf, wet) Undeveloped Gas Reserves • Greater Sunrise: 8.4 Tcf (wet) • Abadi: 5 Tcf (CO2) • Evans Shoal: 6.6 Tcf (CO2) • Caldita: 2.9 Tcf (CO2) • Lynedoch: 1.5 Tcf (CO2) • Evans Shoal Sth: ? Tcf (?CO2) Potential Gas-In-Place (NT/P68) • 5
Slide 4: Heron-1 intersected 50m gas column
Heron-1 intersected 50m gas column Total Gas GR Resistivity Methanol The clean alternative Methanol Australia Resistivity Log Limited
Slide 5: 100% owned permit with gas discovery
100% owned permit with gas discovery • Epenarra structure – 1,200km2 closure – ~6 Tcf (P50) wet GIP – >800 mmbbls condensate – Drilled by Heron-1 (1972) – Est. CGR* ~150 bbls/mmcf • Acquiring 500km2 3D (Sep’06) + 600 km 2D (Oct’06) seismic • Drilling 4Q’07 – Heron-2 – Blackwood-1 * CGR = Condensate
Slide 6: Tassie Shoal
Tassie Shoal • Shallow water (14m), 275km NW of Darwin in Australian waters • Environmental approvals granted by Commonwealth Gov’t for 50yrs – 2x 1.8 Mtpa MeOH plants (Dec02) – 1x ~3 Mtpa LNG plant (May04) • Globally Competitive projects: – Methanol benefits from high CO2 – Low input gas price • Pr
Slide 7: Experienced Board
Experienced Board Warwick Bisley - Non-Executive Chairman Chris Hart- MD & CEO 35 years with Exxon/Esso 1966-2001. 15 years in upstream petroleum industry. Appointed Chairman & CEO of Exxon Chemicals Co-founded Timor Sea Petroleum (original tenement Australia. Oversaw rationalisation of Altona holde
Slide 8: Robust Economics (un-geared)
Robust Economics (un-geared) Assumptions Unit LNG Methanol Production Daily capacity t/day 8,700 5,000 Days on line days/yr 345 350 Annual mtpa 3.0 1.8 Uptime % 94.5% 95.9% Commodity Prices Input gas price US$/Gj $ 1.35 $ 1.26 Product US$/t $ 232 $ 200 US$/mmbtu $ 4.49 Spot US$/t $385-$620 > $300 US
Slide 9: Capital Structure
Capital Structure ASX Code MEO Shareholders 1,850 Security Class Millions Remarks Ordinary shares 193.3 Post 1:4 rights, closes 11-Sep-06 Options Cash Directors & staff 4.1 Unlisted $ 0.8 30-Apr-07, $0.25 ex price 38.7 $ 9.7 30-Apr-07, $0.25 ex price+ 14.1 + Subject to S/H approval $ 3.5 Total Optio
Slide 10: Conclusions
Conclusions • Globally competitive GTL projects, robust economics – Lowest quartile production costs • Delivered product cost advantage (transport advantage) – Substantial capital cost savings (pipelines, pre-fabrication) • Managing capital risks – key alliances (eg Air Products) – Pragmatic solutio
Slide 11: Reference slides
Reference slides Methanol The clean alternative Methanol Australia Limited
Slide 12: Secured Commonwealth Environmental Approvals
Secured Commonwealth Environmental Approvals EPBC Act 1999 Methanol Plant EIS approved Dec 2002 - 50 yrs LNG Plant EIS approved May 2004 - 50 yrs Assigned - Major Project Facilitation Status Methanol The clean alternative Methanol Australia Limited
Slide 13: Project Summary
Project Summary Upstream Downstream Interests Interests NT/P-68 (100%) LNG Project Methanol Projects Seahawk 100% 50% 50% Vee Fm - 1,200m Module I Module I Module II 2 Tcf GIP (P50)/ 5,000 t/d 5,000 t/d W 500 mmbbls oil 3+ mtpa 1.75 mtpa 1.75 mtpa E Pot. Lo CO2 US$988m US$835m Superior L /Hi liquids
Slide 14: Methanex APCP for Methanol
Methanex APCP for Methanol 350 300 250 US$/tonne 200 150 100 M ay-02 Dec-02 Jun-03 Jan-04 Aug-04 Feb-05 Sep-05 Mar-06 Oct-06 Apr-07 Source: Methanex Asian Posted Contract Price (APCP), 2006 Methanol The clean alternative Methanol Australia Limited
Slide 15: Methanol Asian Supply Forecast
Methanol Asian Supply Forecast 10 Mt required in region by 2009 16 14 12 Production Net Imports Millions of tonnes 10 8 6 4 2 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: CMAI 2005 World Methanol Analysis Includes no Australian plant production Methanol The clean alternative Methanol Austr
Slide 16: Delivered Methanol Cost advantage to North East Asia
Delivered Methanol Cost advantage to North East Asia 120 100 Costs of Production Freight 80 US$/t 60 40 20 0 TSMP Qatar Saudi Arabia Chile (Includes trans-shipment) Source: Methanol Market Services Asia, 2006 Methanol The clean alternative Methanol Australia Limited
Slide 17: TSMP – Sound Design
TSMP – Sound Design Methanol The clean alternative Methanol Australia Limited
Slide 18: TSMP GBS Concept a Reality
TSMP GBS Concept a Reality Exxon Adriatic LNG Re-gas Terminal Methanol The clean alternative Methanol Australia Limited
Slide 19: Japan LNG CIF pricing and US Natural Gas Pricing
Japan LNG CIF pricing and US Natural Gas Pricing 9 8 Japan LNG Henry Hub NG 7 6 US$/MMBtu 5 4 3 2 1 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Source: BP Statistical Review 2006 Methanol The clean alternative Methanol Australia Limited
Slide 20: Forecast East Asian LNG S/D Balance
Forecast East Asian LNG S/D Balance Source: ABARE 2005 Methanol The clean alternative Methanol Australia Limited
Slide 21: TSLNGP production module, tank and jetty
TSLNGP production module, tank and jetty Methanol The clean alternative Methanol Australia Limited
Slide 22: Timor Sea LNG Project
Timor Sea LNG Project New LNG Tank Design by Arup Energy – 170,000 m3 ACE platform for LNG process: Arup Energy ACE platform in service: Hang Tuah, Vietnam Methanol The clean alternative Methanol Australia Limited
Slide 23: Tank Concept Used by Compass Port
Tank Concept Used by Compass Port (ConocoPhillips - Currently undergoing project sanction) Methanol The clean alternative Methanol Australia Limited
Slide 24: NT/P68: Significant scope for Gas
NT/P68: Significant scope for Gas Methanol The clean alternative Methanol Australia Limited
Slide 25: Epenarra Discovery
Epenarra Discovery Epenarra discovery Darwin Fm (3,000 m – fract. carbonate) 50m gas bearing zone in Heron-1 Mapped closure 1,200 sq. km P50: 6 Tcf GIIP, likely wet gas, low CO2 * GIIP is Gas Initially In Place Methanol The clean alternative Methanol Australia Limited
Slide 26: NT/P68 – Seahawk Prospect
NT/P68 – Seahawk Prospect Seahawk Prospect Vee Formation (1,200 m) P50: 2 Tcf GIIP* oil potential (high risk) HERON 1 * GIIP is Gas Initially In Place 7 kms Methanol The clean alternative Methanol Australia Limited
Slide 27: Blackwood Lead – Plover Formation
Blackwood Lead – Plover Formation Plover Plays Blackwood lead (3,300m, P50: 3+ Tcf GIIP*) High CO2 suitable for MEOH production nt96-131 (migration) [Realized] nt97-106 (migration) [Realized] nt96-032 (migration) [Realized] nt96-034 (migration) [Realized] nt96-036 (migration) [Realized] LINE 1 1 1 1
Slide 28: NT/P68 – Heron Nth & Sth Leads
NT/P68 – Heron Nth & Sth Leads Plover Plays Extension of Evans Shoal/ Evans Shoal Sth from NE Heron North & South Prospects (4,000m, P50: 3.5 Tcf GIIP*) Likely high CO2 High CO2 suitable for MEOH production * GIIP is Gas Initially In Place Methanol The clean alternative Methanol Australia Limited
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