Blue Energy Limited · ASX:BLU
Blue Energy — Shareholder Meeting (November 2021)
19 slides from Blue Energy's shareholder meeting presentation, Nov 9, 2021
Slide 1: Annual General Meeting 9 November 2021
For personal use only ANNUAL GENERAL MEETING 9 NOVEMBER 2021
Slide 2: Blue's assets are in the 3 key gas basins
BLUE’S ASSETS ARE IN THE 3 KEY GAS BASINS For personal use only Galilee Basin Bowen Basin Beetaloo/McArthur Basin NATURAL GAS - RELIABLE, DISPATCHABLE, SUSTAINABLE, ESSENTIAL 2
Slide 3: Overview
OVERVIEW For personal use only Metrics 12-month Share Price Performance Cash (29/10/21) $10.8 million Debt Nil Shares on Issue 1,528,214,889 Market Cap (8/11/21) ~$87million Board Reserves and Resources Executive Chairman: John Ellice-Flint 1P/1C 2P/2C 3P/3C Managing Director: John Phillips Reserves
Slide 4: Overview
OVERVIEW For personal use only The Government is resetting the east coast gas market and creating a more competitive and transparent Australian Gas Hub by: • unlocking gas supply starting with 3 key basins North Bowen, Galilee and Beetaloo Basins, • delivering an efficient pipeline and transportatio
Slide 5: Blue's gas will underpin new gas infrastructure
BLUE’S GAS WILL UNDERPIN NEW GAS INFRASTRUCTURE For personal use only • 500 PJ of new Blue gas supply agreements Energy Australia, Origin Energy and QPM – will underpin new nation building gas pipeline infrastructure • Blue’s gas supports a 20” pipeline open access pipeline but capable of taking the
Slide 6: Monetisation path is clear
MONETISATION PATH IS CLEAR For personal use only Gas offtake agreements for Bowen Basin underpin southern pipeline construction Blue’s achievements • Origin Energy and Blue ✓ Heads of Agreements for 300 PJ of gas over 10 years at Wallumbilla • Energy Australia and Blue ✓ Heads of Agreement for 100 P
Slide 7: Capital raised for reserve build program – North Bowen
CAPITAL RAISED FOR RESERVE BUILD PROGRAM – NORTH BOWEN For personal use only Blue raised $10 million in an over subscribed private placement process in September Use of Funds • Appraisal wells and testing in Sapphire Block – to build 2P reserve to 500 PJ – underpin gas offtake agreements with Origin
Slide 8: Blue's Bowen gas – Sapphire reserve build program
BLUE’S BOWEN GAS – SAPPHIRE RESERVE BUILD PROGRAM For personal use only PL 1045 gas to Townsville Initial Reserve Build Program well locations Overlain on proposed Sapphire Block Field Development Plan Cross-sectional diagrammatic representation Combination of lateral in seam wells intersecting vert
Slide 9: Multi well drilling and seismic acquisition program
MULTI WELL DRILLING AND SEISMIC ACQUISITION PROGRAM For personal use only ASSET Dec 21 Jan 22 Feb 22 Mar 22 Apr 22 May 22 June 22 July 22 Aug 22 Sept 22 Oct 22 Sapphire Spud and drill Sapphire wells Prod test Sapphire wells Subsurface Engineering Contract services Approvals Lancewood Geo well well d
Slide 10: Poised for growth
POISED FOR GROWTH For personal use only Leveraged for Right Near Term Monetisation success Commodity Activity Options Well funded Domestic gas Drilling and seismic Offtake agreements - shortages 500 PJ $10 million cash Targeted reserve Rising global build out 2,500 PJ uncontracted Zero Debt demand D
Slide 11: For personal use only
For personal use only
Slide 12: Global energy overview
For personal use only GLOBAL ENERGY OVERVIEW NATURAL GAS - RELIABLE, DISPATCHABLE, SUSTAINABLE, ESSENTIAL 12
Slide 13: The reported death of fossil fuel for energy supply has been greatly exaggerated
“THE REPORTED DEATH OF FOSSIL FUEL FOR ENERGY SUPPLY HAS BEEN G REATLY EXAGGERATED” For personal use only Global Energy Consumption 2020 According to the latest BP statistical review: 5.7% Renewable energy consumption • As at 2020 83% of the worlds energy consumption is provided by oil gas and coal
Slide 14: Global LNG/gas supply shortage - record spot LNG prices
GLOBAL LNG/GAS SUPPLY SHORTAGE - RECORD SPOT LNG PRICES ASIA COMPETING WITH EUROPE FOR SUPPLY GLOBAL LNG PRICES TO AFFECT EAST COAST DOMESTIC SUPPLY AND PRICE For personal use only Source: Shell LNG Outlook 2021 Feb 2021 Source: Shell LNG Outlook 2021 Feb 2021 • LNG Supply - demand gap from 2024 • A
Slide 15: European supply shortages – can't fill storage
EUROPEAN SUPPLY SHORTAGES – CAN’T FILL STORAGE NORTHERN WINTER APPROACHING For personal use only • Renewables not filling generation gap • Low gas storage going into winter • UK Electricity retailers folding – customers left in cold • Russia holding back supply • Fertiliser plants shuttering product
Slide 16: US Henry Hub gas prices – heading north for the winter
US HENRY HUB GAS PRICES – HEADING NORTH FOR THE WINTER For personal use only • With the rig count continuing to languish at near record lows and demand picking up toward the winter peak demand, prices can only increase – This time last year HH was ~US$2.80/mmbtu NATURAL GAS - RELIABLE, DISPATCHABLE,
Slide 17: East coast gas price impact
EAST COAST GAS PRICE IMPACT For personal use only • ACCC LNG netback price series – unprecedented net back price – currently A$34.6/GJ – but spot Wallumbilla Price is A$10.50/GJ • Excess gas over LNG contract volumes will not go to domestic market – Spot cargos are more valuable – the delta is A$24/
Slide 18: Legals: Disclaimer
LEGALS For personal use only Disclaimer Not an offer or invitation This Presentation does not constitute an offer of any securities in BLU, in any jurisdiction, nor an invitation to apply for such securities, in any jurisdiction, and will not form part of any contract for the acquisition of BLU shar
Slide 19: Listing Rule Disclosure and Competent Person Statement
LEGALS For personal use only Listing Rule 5 Disclosure and Competent Person Statement • The estimates of reserves and contingent resources noted throughout this Presentation has been based on and fairly represents information and supporting documentation prepared and provided by Mr John Hattner of N