Origin Energy Limited · ASX:ORG
Origin Energy — ABN Amro Coal Seam Gas Conference 2003
24 slides from Origin Energy's conference presentation, Oct 21, 2003
Slide 1: Presentation to Coal Seam Gas Conference (ASX cover fax)
Origin energy To Company Announcements Office Facsimite 1300 300 021 Company Australian Stock Exchange Limited Date 21 October 2003 From Bill Hundy Pages 24 Subject PRESENTATION TO COAL SEAM GAS CONFERENCE Piease find attached a copy of a presentation that Grant King, Managing Director is delivering
Slide 2: Natural gas from coal seams
Oriel energy Natural gas from coal seams : October 2003 Semen ag ager "ta
Slide 3: Origin Energy owns, develops and procures energy and related products and services
Origin Energy owns, develops and procures energy and related products and services to provide customers with better choices to meet their energy needs Gas and Oil Exploration and Production Over 2,000 PJe 2P reserves «Annual production of 84 PJe and rising -Diverse acreage position across Aust. & NZ
Slide 4: From a gas specification perspective, coal seam gas is the same as natural gas
From a gas specification perspective, coal seam gas is the same as natural gas....... Customer Requirements ¢ Certainty of long-term supply Reliability of daily supply Deliverability - MDQ Volume - ACQ Price saeeaee .it is the producers challenge to manage the issues arising from coal seam gas produ
Slide 5: The development and production of CSG poses some unique issues
The development and production of CSG poses some unique issue....... Customer Requirements Production issues Certainty of supply e Customer is uncomfortable with the “unconventional” and “untested” nature of CSG ¢ Reliability of supply e Limited track record of supply ¢ Deliverability - MDQ ¢ Insuff
Slide 6: Origin has systematically addressed these issues
Origin has systematically addressed these issues eeeee oeee Customer Requirements Certainty of supply Reliability of supply Volume - ACQ Volume - MDQ Price Origin realities e Strong balance sheet, existing cash flow, proven physical & contractual supply e Proven record & backup e Around 2,300 PJ of
Slide 7: The coal seam gas industry has a history of talking up resource potential
The coal seam gas industry has a history of talking up resource potential......... Coal Seam Methane By « Identifying resource * . . . Resources (after APARE’) potential for CSG is simple New South Wales 97,242 . as coal deposits at Sydney 28,576 iate depth att Gunnedah 27,816 appropria e ep Ss WI C
Slide 8: Origin's CSG reserves are complemented by additional physical and contractual reserves
Origin’s CSG reserves are complemented by additional physical and contractual reserves Origin Physical and Contracted 2P Reserves 2,500 ¢ Origin can chose to supply gas out of its 2,000 physical gas resources, or out of 2 gas contracted from & 1,500 : . ri third parties ra % 1,000 ¢ This unique posi
Slide 9: To convert CSG resources to reserves requires detailed understanding of parameters
To convert CSG resources to reserves requires detailed understanding of the first four parameters below........ ¢ Net coal . mmmm> Resource size « Gas content > Depth mam=p> Production capacity ¢ Permeability Competitive Commercial ¢ Land access & environment Development ¢« Development capital and s
Slide 10: Qld identified as the most likely state for large scale CSG developments
Addressing these parameters in reverse order, Qld was identified as the most likely state for large scale CSG developments vereee e In Victoria the presence of large Queensland supply/demand balance uncontracted gas resources in the for natural gas Gippsland Basin and the potential of the Otway Basi
Slide 11: Origin set about building an extensive acreage position in SE Queensland
Origin set about building an extensive acreage position in SE Queensland eR ickhampton Gladstone i Rolleston | Map key | OCA/Origin CSG permit _ OCA/Origin permit : Gas pipetine ! Proposed gas pipeline i Town > Processing plant | Proposed processing plant | Peaking power plant Denison Trough | Roma
Slide 12: Detailed understanding of CSG assets and comparisons with US basins
Origin was able to develop a detailed understanding of many CSG assets and develop comparisons with US Basins....... = RESOURCE CONCENTRATION COAL PERMEABILITY = a 8 = 8 ~~ - - ; 160 a 7 i @ 140 § 6 ‘ = 120 _ | | B 100 z 4 | 80 g 3 i 2 60 §& 2 / E 40 $4 : & 2 g aN - of a é San Juan Wartior Powder Fa
Slide 13: Origin focussed on the Fairview / Durham area as a world class resource
After extensive examination of CSG resources in Australia Origin focussed on the Fairview / Durham area as a truly world class resource.......... San Juan High permeability coals Fairvew/Durham High gas content World class benchmark Warrior High Gas Contents NE Bowen Generally low permeability Powde
Slide 14: Origin now holds a 23.9% interest in Fairview and 94.3% in Durham
Origin now holds a 23.9% interest in the Fairview field and an average 94.3% interest in Durham 8 ¢ The Fairview and Durham fields are permitted divisions of the same play fairway (sometimes referred to as Comet Ridge) ¢ For comparison the blue line represents the outline of the Palmer Fairway - the
Slide 15: Recent drilling on Fairview illustrates the potential
Recent Drilling on Fairview illustrates the potential _Variability of initial gas and water flow rates from coal : : « recent development drilling te ae rovers focussed on the southern portion : of the Fairview field just to the north of Durham « excellent coal properties in all wells confirmed exte
Slide 16: Permeability of the coals is a key factor in Fairview's attractiveness
A key factor in the attractiveness of the Fairview field is the permeability of the coals Fairview Field 16 100% Permeability Histogram ___ * Permeability is 14 MG Frequency 73 7 90% excellent and three Cumulative % J | som quarters of wells have permeability >100 md + 70% ¢ Nonetheless there is 7%
Slide 17: High permeabilities result in high initial water rates followed by sustained production
The high permeabilities result in high initial water rates in many wells, followed by long and sustained production A typical Free Flow well - Gas and Water Rates vs Time 2000 2000 _~ 1500 1500 a4 a] Q = 2 ° 2 o : ~\ i + 1000 1000 2 [a4 o he a £ a o © oO = 500 500 0 0 15/06/1994 28101995 11/03/1997
Slide 18: Water rates peak and decline while gas rates continue to build
After each successive drilling campaign water rates have peaked and declined while gas rates continue to build Fairview Fairview Production History Gas Rate (Mscf/d) and Water Rate (bwpd) « Commenced testing in December 1994 At 1 September 2003 eT 77 wells I } » 34 pumpi barr! re 34 pumping 4 vine p
Slide 19: Contract significant reserves to AGL in December 2002
The proven performance at Fairview, combined with the potential of the Durham field to the south, led Origin to contract significant reserves to AGL in December 2002 ¢ Contract for the supply of 340 PJ over 15 years « 195 PJ to come from Fairview, balance to be provided from fields operated by Origi
Slide 20: Good progress has been made on the Durham project
Good progress has been made on the Durham project e Design basis and Front End Engineering package for production facilities completed. ¢ Sales gas pipeline licence granted with sign up of majority of landholders for pipeline survey undertaken. « Bids for line pipe purchase prepared for submission.
Slide 21: Major activities through to 2005
Looking forward, major activities through to 2005 include... Pre Production phase to May 2005 will include: ¢ Drilling and connection of 60 wells including wellhead pumping,separation and metering systems. e Approx. 104 km of gas gathering and 123 km water gathering pipelines. « Central gas processi
Slide 22: Key infrastructure will be in place
P; ...by which time key infrastructure will be in place...... Nodal Compressor Station Gas Wellhead Gathering Pipeline Sales Gas Compressor Station Pressure Pipeline r Reverse Osmosis Unit | h en the market requires Concentrate Salt Water Ponce henson ...to allow further expansion of the project as
Slide 23: Origin has established an extensive portfolio of CSG interests
Origin has established an extensive portfolio of CSG interests, backed by balance sheet strength, operational expertise, marketing capabilities and reserves portfolio. « Current commercial sales of CSG of around 9 PJ/a net from three fields (Moura and Peat (operated) and Fairview), plus conventional
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