Blue Energy Limited · ASX:BLU
Blue Energy — Investor Presentation (July 2009)
33 slides from Blue Energy's investor presentation, Jul 16, 2009
Slide 1: Poised for Growth
POISED FOR GROWTH London 16 July 2009 Slide 1
Slide 2: Coal Seam Gas in Australia
Coal Seam Gas in Australia Slide 2
Slide 3: CSG - Overview
CSG - Overview The process of extracting methane from coal seams and naturally fractured stacked thin coaliferous beds has gathered pace in Asia. Methane to Produced Pipeline water A broad range of experience is evident N with: Reduced Water O N - well established Australian Pressure C O development
Slide 4: CSG Operations
i CSG Operations energy limited = Well depths 350-1,000 m = Seam thickness 3-10 m = Net coal thickness 10-80 m = Gas content 3-15 m°/tonne daf = Gas Permeabilities 1 mD-500 mD = Well Spacing 500-1,000 m (25-100 ha) = Typical Well Productivity 0.75 TJ/d (4 wells will produce approx 1 PJ/yr)
Slide 5: Eastern Australian Gas Infrastructure
Eastern Australian Gas Infrastructure Slide 5
Slide 6: Coal Seam Gas History
COAL SEAM GAS HISTORY • CSG exploration commenced in the Bowen Basin in 1976 • In the 1980s and 1990s exploration and development activities were principally carried out in the Bowen Basin • By the mid-1990s increased understanding in the Bowen Basin resulted in successful identification of coal tar
Slide 7: Coal Seam Gas History
Coal Seam Gas History • From 2000 the lessons learnt in the Bowen Basin were applied to the Walloon Coal Measures in the Surat Basin. • More recently, they have been utilised for programs in the Clarence-Moreton, Galilee, Gloucester, Gunnedah and other basins in Eastern Australia. • In only a decade
Slide 8: Current CSG Operations
Current CSG Operations • From a production of 1 PJ in 1996 from the Bowen Basin, CSG output in eastern Australia has grown rapidly. • As at 31 December 2008, it was 458 TJ per day (167 PJ per year). • 96.7% of this production (443 TJ per day) is from Queensland. • Eastern Australian gas demand is 67
Slide 9: CSG Production
CSG Production • The Eastern Australian gas market is currently estimated to be 1,835 TJ per day or 670 PJ per year. • At 31 December 2008 CSG was being produced at an estimated rate of 458 TJ per day (167 PJ per year). • Of this, 443 TJ per day (162 PJ per year) is produced in Queensland and the ba
Slide 10: CSG Reserves Growth
CSG Reserves Growth blueenergy limited Growth of 2P CSG Reserves in Eastern Australia in PJ (26 February 2009) 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009° "Reserves as at 26/02/2009 Prepared 27/02/2009 Slide 10
Slide 11: Consolidation of CSG Ownership
Consolidation of CSG Ownership • Over the last 12 months there has been major consolidation of ownership of CSG groups. • ASX listed Companies that have gone from the register include Pure Energy Resources, Queensland Gas Company, Roma Petroleum, Sunshine Gas and Sydney Gas. • The four major LNG pro
Slide 12: CSG Sector Performance
CSG Sector Performance Slide 12
Slide 13: CSG Sector Value Growth
CSG Sector Value Growth Slide 13
Slide 14: CSG Sector Transactions
CSG Sector Transactions Slide 14
Slide 15: Blue Energy: The next CSG growth company?
Blue Energy The next CSG growth company? Slide 15
Slide 16: Corporate Details
BLUE ENERGY Corporate Details Australian listed Energy Company (BUL) Brisbane Head Office Shares on Issue 565.7m Market Capitalisation $120m Cash $31.9m* Major Shareholders ANZ Nominees 20.3% Stanwell 15.4% Coal Seam Gas Acreage 27,577km2 Conventional Acreage 71,574km2 * as at 9 June 2009 post SPP S
Slide 17: Corporate History
BLUE ENERGY Corporate History • Nov 2004: Blue Energy commenced as a private petroleum exploration company with assets in several producing Australian Basins. • Feb 2006: Energy Investments Ltd (EIV) invested in Blue Energy and gained control. • May 2007: EIV changes name to Blue Energy Ltd. • Jul 2
Slide 18: Share Price History
BLUE ENERGY Share Price History Slide 18
Slide 19: Two Pronged Strategy
BLUE ENERGY Two Pronged Strategy Domestic Gas – Power Generation Commercialisation Strategy Export LNG Market Slide 19
Slide 20: Strategic Partners
BLUE ENERGY Strategic Partners • Korean State owned gas company. • Qld Government Owned Corporation. • World’s largest LNG Importer (26.3 mt in 2008). • Generation capacity in excess of 1,500 MW of electricity. • 3 LNG Receiving terminals (2.7 mt storage). • Both Hydro (4 sites) and thermal generati
Slide 21: KOGAS Strategic Investment
BLUE ENERGY KOGAS Strategic Investment • HOA agreement reached between KOGAS and Blue Energy on 29th May 2009. • Blue will make a private placement of Blue shares to KOGAS representing 10% of Blue Energy stock post SPP allotments. • A Board position will be offered to KOGAS. • The share placement ag
Slide 22: Stanwell Strategic Alliance
BLUE ENERGY Stanwell Strategic Alliance Stanwell Alliance • Agreement reached between Stanwell and Blue Energy in August 2008. • Blue Energy to supply 8.5 PJ per annum to Stanwell over 25 years for gas fired power project. • Blue Energy’s funding requirement is through to initial certification of re
Slide 23: Two Pronged Strategy
BLUE ENERGY Two Pronged Strategy SHORT TERM STRATEGY - DOMESTIC GAS (1 – 3 Years) • Focus on shallow Walloon Coal Measures to supply to the expanding Southeast Queensland gas market with initial drilling / pilots in ATP 854P. • Leverage the Stanwell Alliance Agreement in the reserve certification pr
Slide 24: Why Domestic Gas?
BLUE ENERGY Why Domestic Gas? GAS IS THE FUEL OF THE FUTURE • Eastern Australian generation growth forecast to be fuelled by gas. • Decline in coal fired generation from CPRS. • Renewable energy growth not forecast until 2018. Source: Wood Mackenzie 2009 Slide 24
Slide 25: Why Domestic Gas?
BLUE ENERGY Why Domestic Gas? With a base case LNG assumption, “additional potential” is required to meet the supply gap post 2016 given the contingent CSG resources are proved up. Source: Wood Mackenzie 2009 Slide 25
Slide 26: Blue Energy's Reserve Development Projects
BLUE ENERGY’S RESERVE DEVELOPMENT PROJECTS Blue Energy is currently initiating drilling programs to move current Prospective and Contingent Resource to Independently Certified Reserves to fast track the pathway to revenue: Domestic Gas (1 - 3 Years) • ATP 854P (BUL 100%) Targeting the Walloon Coal M
Slide 27: ATP 813P Potential pipeline routes
ATP 813P Potential pipeline routes •Blue has commissioned a pipeline route study from ATP 813 P to the Queensland Coast. •Route options include Abbot point and Gladstone, with additional option to connect to a potential Moranbah hub. Slide 27
Slide 28: Reserve Targets
BLUE ENERGY Reserve Targets Slide 28
Slide 29: Schedule of Activity
BLUE ENERGY Schedule of Activity Permit Target Cost Activity 2009 2010 2011 3P Estimate Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ATP 854P 150PJ $1.5MM Coreholes (3) Walloons $2.0MM Pilot Certified Reserves GSA Development ATP 818 / 200PJ $2.0MM Coreholes (3-5) ATP 896P $2.0MM Pilot Walloons Certified Reserves
Slide 30: Summary
Summary Blue Energy has the ingredients to become a billion dollar company: •Adequate funding •Competent and experienced management •Focused strategy and activities •Diverse portfolio •International Credibility (with Kogas investment) •Appropriate strategic partners Slide 30
Slide 31: Thank You
THANK YOU Slide 31
Slide 32: Disclaimer
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 a range of variables which c
Slide 33: Contact details and registered office
www.blueenergy.com.au info@blueenergy.com.au REGISTERED OFFICE Suite 15A 421 Brunswick Street Fortitude Valley QLD 4006 Ph: +61 7 3332 8800 Fax: +61 7 3332 8867 Slide 3