Blue Energy Limited · ASX:BLU
Blue Energy — Investor Presentation (August 2015)
21 slides from Blue Energy's investor presentation, August 2015
Slide 1: Investor Presentation
Investor Presentation August 2015 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: Gas crisis?
Gas crisis? Those with gas molecules are positioned for success Blue has gas Blue has LNG scale gas Blue has resource growth potential
Slide 4: Blue Well Positioned
Blue Well Positioned Company Sector 2P (PJ) Contingent Requirement (PJ) Resources (PJ) BLUE LNG/Dom 55 4,392 uncontracted APLNG LNG 14,091 2,679 ~10,800 GLNG LNG 5,603 1,202 ~9,780 QCLNG LNG 10,326 13,700 ~10,200 Blue well positioned to supply gas in the short, medium and long term ~90% of east coas
Slide 5: East Coast Australian setting
East Coast Australian setting 20 yr demand ~40,000 PJ ? Future dom gas demand QCLNG 2 trains online GLNG APLNG Reliably and safely exporting clean gas to the world’s developing economies is a win/win/win More gas supply needed to domestic market – to satisfy demand and lower costs of gas to customer
Slide 6: It's about price and volume
I t ’s a b o u t p r i c e a n d v o l u m e ? Future dom gas demand QCLNG GLNG APLNG Source: Macquarie Research April 2015
Slide 7: …and also cost
…and also cost …what will it cost to convert contingent resources to proved reserves? Blue Energy 10 Local small cap gas explorer LNG producer/exporter Cost of production* $/Gj 5 Blue Energy 1 10,000 20,000 30,000 40,000 50,000 * estimates Contingent Resource 3C (Pj)
Slide 8: Strategic Gas trends
Strategic Gas trends Fuel switching is gaining momentum - broad scale move away from coal - gas powered vehicles - balance of trade/energy security implications - infrastructure development opportunities Big to Small – mini LNG/CNG role – virtual pipelines Gas helps the emissions equation – look at
Slide 9: Gas Reserves & Resources
Gas Reserves & Resources PJ 36% CAGR for Contingent Resources Reserves and Resources certified by Netherland, Sewell and Associates Inc Low cost and unique reserve and resource growth mechanism
Slide 10: State of Play
State of Play • Uncontracted 2P & 3P Reserves ASX Code BUL 2P Reserves (NSAI) 55 Pj/Bcf • Operatorship and majority equity 3P Reserves (NSAI) 200 Pj/Bcf • Diverse portfolio – oil and gas 3C Contingent Resource 4,392 Pj/Bcf (NSAI) • Material acreage positions Cash (1 August 2015) $6.4 million • Stron
Slide 11: The Blue Portfolio
The B lue Por tfolio 4.4 TCF Resource Base
Slide 12: Eastern Gas Province
Eastern Gas Province Bowen Basin Blue’s 3.4TCF Gas Resource Bowen Basin Producing basin Coal Seam Gas and Shale Gas Plays Shell/Petrochina Project (Arrow Energy) –gas supply for QCLNG (Shell/BG) in Gladstone Export gas pipeline Moranbah- Gladstone in FEED (Arrow) Industrial gas demand in the area is
Slide 13: Eastern Gas Province
Eastern Gas Province Bowen Basin Blue’s 3.4TCF Gas Resource Permian CSG play fairway Bowen Basin – ATP814P Bowen Basin 100% Blue - Owned and Operated Uncontracted 2P and 3P Reserves (200 Pj) Large Contingent Resource base ~ 3.4 TCF Regular reserve and resource upgrades NSAI used by Blue and Arrow fo
Slide 14: Eastern Gas Province
Eastern Gas Province Blue’s 4.4TCF Gas Resource Bowen Basin ATP814P Blue’s acreage has the same plays as current Arrow project Significant upside exists in coal and shale below 650 metres Bowen Basin
Slide 15: Eastern Gas Province
Eastern Gas Province Bowen Basin Blue’s 3.4TCF Gas Resource online ATP814P 2018 Up to 4000 wells to be drilled with 450 Tj/d gas production expected adjacent to Blue’s areas Arrow’s domestic customers currently not receiving sufficient gas online 2018 Source: Arrow Energy EIS Bowen Basin
Slide 16: Developing plays
Developing plays Greater McArthur and Georgina Basins
Slide 17: De-risking process - NT
D e - risking process - N T 2015 drilling season activity Origin: 3 wells in EP98 & 117 Kalala S 1 spudded 14th July Amungee NW 1 Beetaloo W 1 Pangaea: up to 4 wells in EP 167/168 Tarlee 1 & 2 Wyworrie 1 Birdum Creek 1 Greater McArthur Basins
Slide 18: Corporate run rate
Corporate run rate Total Overhead 5,000 Continual line item review 4,500 4,000 3,500 $'000 Nominal Running costs continue to 3,000 be cut 2,500 2,000 1,500 1,000 500 - 12/13 13/14 14/15 15/16 Shareholders funds go toward value adding
Slide 19: Summary
Summary • Short, medium and long term east coast gas supply opportunities in both export and domestic markets • Fuel switching is gathering momentum • Priority is to monetise east coast gas province assets • Maintain low corporate run rate • Blue’s opportunity conveyor is robust Catalysts • Transact
Slide 20: Reserves and Resources
Reserves and Resources Assessment Announcement Permit Block 1P (PJ) 1C (PJ) 2P (PJ) 2C (PJ) 3P (PJ) 3C (PJ) Date Date ATP854P 30/06/2012 19/03/2013 0 22 0 47 0 101 ATP813P 29/10/2014 30/10/2014 0 0 0 61 0 830 ATP814P Sapphire 13/01/2015 15/01/2015 0 74 50 129 178 229 ATP814P Central 13/01/2015 15/01
Slide 21: 21
21