State Gas Ltd. · ASX:GAS
State Gas — Morgans Cairns update (October 2019)
12 slides from State Gas's conference presentation, Oct 22, 2019
Slide 1: Morgans – Cairns update
For personal use only Morgans – Cairns update 22 October 2019 Richard Cottee 1
Slide 2: Disclaimer
Disclaimer For personal use only • This presentation (Presentation) has been prepared by State Gas Limited (ACN 617 322 488) (State Gas). The Presentation and information contained in it is being provided to shareholders and investors for information purposes only. Shareholders and investors should
Slide 3: PL 231
PL 231 For personal use only • Petroleum Lease, 30 years to 14/12/2035 • ~50 km south west of Rolleston over the Reid’s Dome anticline • 181 km2 covering a classic north-south dome structure • ~ 50 km from Queensland Gas Pipeline network • State Gas holds 100% • Gas first discovered in 1955 • PSL he
Slide 4: PL 231 Highlights
PL 231 Highlights For personal use only PROVEN GAS • 17 wells drilled 1955 – 2018. Gas flows from sandstone FLOWS reservoirs in the Cattle Creek Formation and Reid's Dome Beds • Permian Reid's Dome coal measures are extensive throughout NEW PROVINCE - the entire PL-231 with ~60m of net coal & carbon
Slide 5: PL 231 Anticlinal Structural Setting
PL 231 Anticlinal Structural Setting For personal use only • Mapping indicates strike of NNE – SSW with trans-tensional offset in the central region • Sericold Anticline is centred on the permit. • Several faults are evident at surface but over-pressured gas in conventional reservoirs indicate they
Slide 6: PL 231 Forward Program
PL 231 Forward Program For personal use only • Phase 1 – Prove the potential • Seismic reprocessing – results in line with State Gas prognosis • Corehole in north & well in centre of permit to prove gas presence, coal thickness & permeability • Production tests to prove production (up to 3) • Phase
Slide 7: Results to date
Results to date For personal use only • First core hole in north spudded on 4 Oct • Intersected coal at the shallower end of prognosis (560m) • Gaseous matter bubbling from cores ASX code: GAS Morgans 22 October 2019 7
Slide 8: Market Analysis
Market Analysis For personal use only • Traditionally Domestic Market supplied primarily from Cooper Basin (’70s) & Bass Strait (60’s) • Cooper Basin new supply barely arresting depletion • Bass Strait arresting decline through enhanced production techniques – not new supply Major issues: 1. When Ba
Slide 9: Price
Price For personal use only • Have always said pricing will remain in A$8-10/GJ (2018$) with excursions either site • Demand appears the prime determinate • “Demand Management” a euphemism for industrial job destruction ➢A$10-12/GJ (2018$, but indexed more to Henry Hub prices than inflation) will se
Slide 10: Indicative Timeline
Indicative Timeline For personal use only • tendering Phase 1 Phase 2 tendering Phase 3 First Gas Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 ASX code: GAS Morgans 22 October 2019 10
Slide 11: Route to market
Route to market For personal use only • Pipeline Survey Licence 2028 in place • ~50 km to Queensland Gas Pipeline network connection options to the north-east and south-east Possible route to market ASX code: GAS Morgans 22 October 2019 11
Slide 12: Questions?
For personal use only Questions? At PL 231 ASX code: GAS Morgans 22October 2019 12