State Gas Ltd. · ASX:GAS
State Gas — Investor Presentation (September 2021)
19 slides from State Gas's investor presentation, Sep 24, 2021
Slide 1: Investor Update
Supplying East Coast Australia’s energy needs, sustainably and environmentally responsibly Investor Update September 2021 ASX:GAS
Slide 2: Disclaimer
Disclaimer Disclaimer Future Performance This presentation (Presentation) has been prepared by State Gas Limited (ACN 617 322 This Presentation contains certain “forward looking statements”. Forward-looking 488) (State Gas). The Presentation and information contained in it is being provided to state
Slide 3: Highlights
Highlights East Coast gas shortages Market signals presenting the opportunity 2-stage long term project Reid’s Dome Rolleston-West Strategically located Close to infrastructure networks & Wallumbilla price hub Reid’s Dome A strategic launch pad providing long term infrastructure Rolleston-West: 2nd
Slide 4: East Coast Gas Market Dynamics
East Coast Gas Market Dynamics Demand: LNG Netback Price ➢ Asian LNG demand strong ➢ Support required for volatile renewables ➢ Long term requirement for gas for commercial & industrial uses Forward price at 14 Sep 21 for Feb 2022 $29.83 Oct 2021 Supply: Actual: $22.18 ➢ Bass Strait in long term dec
Slide 5: Regional Demand will be long term
Regional Demand will be long term: Will result in sustained export demand and price pressure 5
Slide 6: East Coast: Looming Mid-term Supply Shortages
East Coast: Looming Mid-term Supply Shortages ACCC Forecast Gas Supply and Demand, Southern States 2022 forecast: supply less than demand Longer term forecast: big opportunities for new supplies Source: ACCC Gas Inquiry July 2021 Interim Report Source: ACCC Gas Inquiry January 2021 Interim Report 6
Slide 7: Seizing the market window…
Seizing the market window… Target 2023 Synergistic Growth to Come Developments Reid’s Dome a strategic Rolleston-West: Two 100% owned launch pad: ➢ Exceptional promise from adjacent projects ➢ Conventional & CSG targets Rougemont drilling Commercial benefits ➢ Confirming the scope ➢ Extensive area ➢
Slide 8: Seizing the market window
Seizing the market window Supply Flexibility Strategic Location Optimised supply Location benefits: ➢ No domestic gas reservations ➢ Strategically close to ➢ CSG for regular demand - Wallumbilla pricing hub: ➢ Conventional gas to meet 200km volatility - Gladstone LNG: 290km ➢ Maximum contracting ➢ P
Slide 9: Project Areas
Project Areas • Reid’s Dome & Rolleston-West • 1594 km2 of combined acreage • PL 231 – 180 km2 • ATP 2062 – 1414 km2 • Highly prospective Bowen Basin sequence • Multiple conventional and unconventional targets • No domestic gas reservation • Queensland Gas Pipeline network ➢ < 50km Reid’s Dome ➢ < 3
Slide 10: Reid's Dome: a Strategic Launch Pad
Reid’s Dome: a Strategic Launch Pad Conventional gas Coal seam & confirmed conventional Production tests of CSG gas confirmed wells establishing Rougemont coreholes project parameters Aldinga Serocold Planning for Project and Nyanda wells development export pipeline underway permitting commenced Dev
Slide 11: Reid's Dome Project
Reid’s Dome Project ➢ Conventional gas (pipeline quality) established in northern province of permit – with additional prospects ➢ CSG confirmed in Reid’s Dome coal measures across length of permit ➢ Nyanda-4 well in southern province producing at highly commercial rates up to 700,000 cubic feet per
Slide 12: Rolleston-West: Optimising the Future
Rolleston-West: Optimising the Future ➢ ~570 km2 Bandanna Formation prospective for CSG – Analogous to Arcadia Valley* & Mahalo# ➢ Drilling of Rougemont 1 & 2 in Q2 2021 established potential of eastern area ➢ Continuous coal seams across the area confirmed ➢ ~8m coal, with 2 primary seams ➢ Gas com
Slide 13: Rolleston-West: East Bandanna Fairway
Rolleston-West: East Bandanna Fairway Exceptional promise at Rougemont-2 Seam Depth Thickness Permeability Gas content Composition 1 355.8m 2.8m 25mD 5.15 m3/t DAF >94% CH4 2 384m 2.4m 395mD 6.0 m3/t DAF >96% CH4 ➢ Exceptional permeability resulting in ✓ low cost completions ✓ higher production rate
Slide 14: East Bandanna Fairway Resources
East Bandanna Fairway Resources Estimated Resources East Bandanna Fairway 1C 2C 3C 53 PJ 91 PJ 161 PJ Does not include conventional targets or western areas of permit East Bandanna Fairway (pale yellow) 14
Slide 15: Supply-Demand & Indicative Timing
Supply-Demand & Indicative Timing ACCC Forecast Gas Supply and Demand, Southern States H2-21 H1-22 First Gas H2-22 H1-23 H2-23 H2-24 H2-25 First Gas H1-24 H1-25 Reid’s Dome Rolleston-West Confirm scope Source: ACCC Gas Inquiry January 2021 Interim Report 15
Slide 16: Upcoming Milestones
Upcoming Milestones ➢ Rougemont-2 Production Test o Mobilisation of completion rig to site o Down-hole pump & surface equipment installed o Dewatering commenced o First Gas ➢ Serocold-1 o Mobilisation of rig & equipment to site o Anti-sanding solution installed o Down-hole pump installed & de-wateri
Slide 17: Executive Chairman quote on 3C resource and gas shortage
“With nearly 400 PJs of geographically blessed 3C Resource in a tight gas market, State Gas’ task is to convert that resource into reserves in time to address the upcoming national gas shortage." Richard Cottee Executive Chairman State Gas 17
Slide 18: Appendix – Competent Person Statement
Appendix – Competent Person Statement Competent Person Statement and ASX Listing Rules Chapter 5 - Reporting on Oil and Gas Activities The estimate of Reserves and Contingent Resources for the Reid’s Dome and Rougemont Gas Projects provided in this Presentation, is based on, and fairly represents, i
Slide 19: Contact
Contact Level 8 46 Edward Street Brisbane QLD 4000 Australia Email info@stategas.com stategas.com