Blue Energy Limited · ASX:BLU
Blue Energy — Shareholder Meeting (November 2020)
30 slides from Blue Energy's shareholder meeting presentation, Nov 10, 2020
Slide 1: 2020 Annual General Meeting
For personal use only 2020 Annual General Meeting 10th November 2020
Slide 2: Legals
Legals For personal use only 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
Slide 3: There is now a clear Energy Strategy
There is now a clear Energy Strategy For personal use only “Gas has chosen itself” Prime Minister Scott Morrison (ABC Insiders 20th September 2020) 2 NATURAL GAS - Reliable, Dispatchable, Sustainable, ESSENTIAL
Slide 4: Federal Government, CFMEU, AWU and Labor back gas led recovery
F e d e r a l G o v e r n m e n t , C F M E U , AW U and Labor back gas led recovery For personal use only “Gas-fired recovery” 15 September 2020 Joint media release with Prime Minister Scott Morrison and Minister for Energy and Emissions Reduction Angus Taylor. Gas will help re-establish a strong e
Slide 5: Why gas?
Why gas? For personal use only 1. Lower particulate emissions – means air quality 2. Yields less Carbon Dioxide than oil and coal – lower GHG emissions 3. Symbiotic relationship between renewable energy and gas fired generation 4. It’s a critical feedstock for manufacturing - the high value add plas
Slide 6: Gas is critical for Australia
Gas is critical for Australia 950,000 East Coast jobs rely on gas For personal use only 6.5 million Australian homes use gas for heating/cooking ~13,000 MW gas fired electricity generation - instant back up for solar/wind Agriculture : Fertiliser Industrial use : Glass making Brick making Waste Inci
Slide 7: Government's role in developing these Gas Basins
G overnment ’s rol e in developing these Gas Basins For personal use only • Northern Australian Infrastructure Fund (NAIF) • Loans for construction of gas pipeline infrastructure • Direct ownership of the pipelines by State and Federal Government • Much of the existing gas infrastructure was built a
Slide 8: Today's Focus
For personal use only To d a y ’ s F o c u s 1. Strategy for monetising Bowen/Galilee Gas Basins a. Southern gas market b. Northern gas market c. Electricity market 2. Northern Territory – a significant new hydrocarbon province These basins constitute the Federal Government’s KEY NEW Gas supply basi
Slide 9: Blue has positions in the key Basins
Blue has positions in the 3 key Basins For personal use only 8 NATURAL GAS - Reliable, Dispatchable, Sustainable, ESSENTIAL
Slide 10: 1. Strategy for Monetising Bowen and Galilee Basins
For personal use only 1. Strategy for Monetising Bowen and Galilee Basins 9 NATURAL GAS - Reliable, Dispatchable, Sustainable, ESSENTIAL
Slide 11: Bowen plus Galilee add to long term gas supply for East Coast Gas
Bowen plus Galilee add to long term gas supply for East Coast Gas For personal use only Bowen Basin – 15,000 PJ Blue Net = 3,000 PJ Galilee Basin – 5,000 PJ Blue Net = 838 PJ MAP Arcadia Multiple pipeline options to get to Wallumbilla Wallumbilla 10 NATURAL GAS - Reliable, Dispatchable, Sustainable,
Slide 12: How?
How? For personal use only Gas Producer Gas Sale Agreement/Term Sheet Gas end User GSA de-risks project for pipeliner Abundant Capital exists to fund infrastructure projects (Both Private and Public) Pipeline Builder and Owner Public or Private 11 NATURAL GAS - Reliable, Dispatchable, Sustainable, E
Slide 13: Critical Pathway to monetisation
Critical Pathway to monetisation For personal use only • Gas Sale Agreements for Blue‘s 3,000 Pj Gas resource in the Bowen • Southern market – currently engaged with several large gas users • Northern market – seeking further gas buyers between Moranbah and Townsville • Gas Sale Agreements for Blue’
Slide 14: 1a: Southern Gas Market
For personal use only 1a: Southern Gas Market 13 NATURAL GAS - Reliable, Dispatchable, Sustainable, ESSENTIAL
Slide 15: Blue's Bowen gas will provide long term reliable supply
B l u e ’s B o w e n g a s w i l l p r o v i d e long term reliable supply For personal use only 2,700 PJ (net to Blue) of marketable gas resource in these three blocks 14 NATURAL GAS - Reliable, Dispatchable, Sustainable, ESSENTIAL
Slide 16: Bowen Gas Sale Agreements - Southern Gas Market
Bowen Gas Sale Agreements Southern Gas Market For personal use only Market gas to East Coast • Blue’s Bowen Basin gas resource is 3,000 PJ. It is discovered and awaiting development and is currently being marketed. • 10 years of gas supply to the domestic gas market • it’s a proven and producing gas
Slide 17: 1b: Northern Gas Market
For personal use only 1b: Northern Gas Market 16 NATURAL GAS - Reliable, Dispatchable, Sustainable, ESSENTIAL
Slide 18: Bowen Gas Sales Agreements - Northern Gas Market
Bowen Gas Sales Agreements For personal use only Northern Gas Market – Townsville and North Qld • Townsville gas users have been delivered gas via the NQGP pipeline since 2006 • New demand opportunities are emerging– COVID recovery manufacturing opportunities • Mineral processing – QPM MoU signed •
Slide 19: 1c: Electricity Market
For personal use only 1c: Electricity Market 18 NATURAL GAS - Reliable, Dispatchable, Sustainable, ESSENTIAL
Slide 20: Qld aims for 50% renewable by 2030
Qld aims for 50% renewable by 2030 where’s the other 50% coming from? For personal use only Blue’s North Bowen Power Generation Project Massive Govt sanctioned NQ Solar build out …needs gas fired peaking capacity to firm and stabilise the grid Blues Bowen Power project • Clough Business Case report
Slide 21: Bowen Gas to Power Concept
Bowen Gas to Power Concept For personal use only Clough study confirms sound business case Blue now targeting electricity offtake agreements 20 NATURAL GAS - Reliable, Dispatchable, Sustainable, ESSENTIAL
Slide 22: Northern Territory - a significant new Hydrocarbon Province
For personal use only 2 . N o r t h e r n Te r r i t o r y …..a significant new Hydrocarbon Province 21 NATURAL GAS - Reliable, Dispatchable, Sustainable, ESSENTIAL
Slide 23: Beetaloo/Macarthur High Graded area
Beetaloo/Macarthur High Graded area For personal use only • Post COVID activity starting • Santos flow tested 1.5 mmcfd – Tanumbirini 1 • Empire intersected strong gas shows with 13 TCF indications of liquids – Capricorn 1 • Origin – Flow back ops 6 TCF 57 TCF on Kyalla 117 N2-1H ST-2 • Focus area f
Slide 24: 3. Emerging Basins - Georgina and Carpentaria Basins
For personal use only 3. Emerging Basins …..Georgina and Carpentaria Basins 23 NATURAL GAS - Reliable, Dispatchable, Sustainable, ESSENTIAL
Slide 25: Georgina and Carpentaria Basins
Georgina and Carpentaria Basins For personal use only • Blue is actively pursuing Native Title Agreements – Traditional Owners are developing frameworks for oil and gas agreements • High Graded areas for both Geoscience Australia and GSQ studies • Northwest Minerals province is a potential future hi
Slide 26: Catalysts
Catalysts For personal use only • Gas Sales Agreements for north Bowen Gas – 3,000 Pj Gas resource • Southern market – pipeline connection – southern gas buyers • Northern market – Townsville – new industry gas buyers • Gas fired electricity generation – Robust business case for peaking capacity • G
Slide 27: Why Invest in Blue?
Why Invest in Blue? For personal use only • Blue has large certified gas reserves and resources in key basins (4,000 + PJ) • New gas supply focus is now endorsed by Govt, Manufacturers and ACCC • Executing Gas Sales Agreements allows pipeline constructors to de-risk construction projects, attract ca
Slide 28: Reserves and Resources
Reserves and Resources For personal use only Permit Block Date Method Certifier 1P 1C 2P 2C 3P (PJ) 3C (PJ) (PJ) (PJ) (PJ) (PJ) ATP854P Whole Permit 30/06/2012 SPE/PRMS NSAI 0 22 0 47 0 101 ATP813P Whole Permit 29/10/2014 SPE/PRMS NSAI 0 0 0 61 0 830 ATP814P Sapphire 5/12/2015 SPE/PRMS NSAI 0 66 59
Slide 29: Reserves and Resources - Listing Rule Disclosure
Reserves and Resources For personal use only • Listing Rule 5 Disclosure •The estimates of reserves and contingent resources noted throughout this Presentation have been provided by Mr John Hattner of Netherland, Sewell and Associates Inc (NSAI) and were originally reported in the Company’s market a
Slide 30: For personal use only
For personal use only NATURAL GAS - Reliable, Dispatchable, 30 Sustainable, ESSENTIAL