Blue Energy Limited · ASX:BLU
Blue Energy — Investor Presentation (March 2022)
23 slides from Blue Energy's investor presentation, Mar 9, 2022
Slide 1: Investor Presentation
INVESTOR PRESENTATION 9 March 2022
Slide 2: Legals Disclaimer
Legals 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 shares. This presentation
Slide 3: Blue's Assets are in the Key Gas Basins
Blue’s Assets are in the 3 Key Gas Basins 3
Slide 4: Blue Summary
Blue Summary • Blue has multiple 10 year domestic gas supply agreements and gas ready to develop ✓ Reserves and resources confirmed by NSAI (top tier Dallas global oil and gas certifier) ✓ Hundreds of jobs in construction and operations over the project life • Blue is committed to a pipeline – the M
Slide 5: North Bowen Basin – Primed for Development
North Bowen Basin – Primed for Development Derisked • North Bowen Basin has discovered gas and has been producing for 18 years into Townsville Scale • North Bowen Basin gas resource has scale – 15,000 PJ of gas resource - equivalent to 30 years of dom gas supply Environmental • Located around large
Slide 6: North Bowen Basin – Government Focus
North Bowen Basin – Government Focus Federal Government North Bowen Basin is part of the National Gas infrastructure Plan In combination with the Galilee Basin – $14.5 million of funding in 2021/22 Budget for drilling Joint Queensland/Federal Government Jointly funded Bowen Pipeline Feasibility Stud
Slide 7: KPMG Pipeline Study Bowen Pipeline Route Options and Blue's Gas
KPMG PIPELINE STUDY BOWEN PIPELINE ROUTE OPTIONS AND BLUE’S GAS KPMG/GHD/NSAI route options 7
Slide 8: Blue's Gas will Underpin New Bowen Gas Infrastructure
Blue’s Gas will Underpin New Bowen Gas Infrastructure • Blue’s 3,248 PJ of Contingent Resource will underpin new build gas pipeline - 20” pipeline open access pipeline but capable of taking the full Bowen Basin volume over time – ie up to 15,000 PJ • Blue gas supply agreements Energy Australia, Orig
Slide 9: North Bowen multi well 2022 drilling program
North Bowen multi well 2022 drilling program 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 Geo well Spud and drill Lancewood well well design pre
Slide 10: Cross-sectional Bowen well design
Cross-sectional Bowen well design- diagrammatic representation Combination of lateral in seam wells intersecting vertical water drainage well – targeting multiple individual coal seams 10 NATURAL GAS - Reliable, Dispatchable, Sustainable, ESSENTIAL
Slide 11: Blue - Bringing Gas to Market
Blue - Bringing Gas to Market Wallumbilla Supply – East Coast Domestic • Origin Energy and Blue ✓ Heads of Agreements for 300 PJ of gas over 10 years at Wallumbilla Gas offtake agreements for • Energy Australia and Blue Bowen Basin ✓ Heads of Agreement for 100 PJ of gas over 10 years at Wallumbilla
Slide 12: Blue's additional gas option- Surat Basin Asset
Blue’s additional gas option- Surat Basin Asset 12
Slide 13: Blue's other gas option- Surat Basin Asset – ATP854
Blue’s other gas option- Surat Basin Asset – ATP854 NSAI Gas Resource upgrade • January 2022 - 300% upgrade in Contingent Resource ✓ Resource upgrade will allow acceleration of resource appraisal • ATP854 now becomes a material gas resource – 398 PJ Contingent Resource ✓ Un-contracted gas resource O
Slide 14: Blue's stepping on the gas and infrastructure
Blue’s -stepping on the gas and infrastructure • Blue’s 3,248 PJ of Contingent Resource will underpin new build gas pipeline - 20” pipeline open access pipeline but capable of taking the full Bowen Basin volume over time – ie up to 15,000 PJ • Blue’s Surat Gas resource can augment Bowen contracts or
Slide 15: Oil, Gas and LNG markets
Oil, Gas and LNG markets 15
Slide 16: Brent over US$120/bbl
Brent over US$120/bbl • Russian production being sold at heavy discount • Russian Fed production 2021 = 10.6 mmbpd (~10% of global production) • OPEC production level maintained • US oil production steady at 11.6 mmbpd • Talk of Russian crude purchase boycott by US – price spike • Supply demand bala
Slide 17: Asian LNG Price – huge spike
Asian LNG Price – huge spike • Tight supply - No new near term capacity • Europe struggling with supply/storage and dependence on Russian gas through Ukraine • US cargoes going into Europe • Huge profit margin on spot cargos • Spot JKM – US$ 47.30/mmbtu 17
Slide 18: UK (NBP) and Europe (TTF) gas prices
UK (NBP) and Europe (TTF) gas prices The reliance on Russian gas though Ukraine • Supply concerns • Russian supply can be turned off • Major European economies reliant on Russian gas + solar + wind + French Nukes • Politicians are sensing pursuit of green generation may have to be paused to ensure s
Slide 19: ACCC LNG Netback Price Forecast – not very close at all
ACCC LNG Netback Price Forecast – not very close at all • ACCC LNG Netback series - In January 2021 the ACCC forecast for January 2022 LNG Netback price was circa A$8/GJ • Actual LNG Netback price in Feb 2022 = A$40/GJ • Current netback (post Ukraine conflict) = A$63/GJ • Current Wallumbilla Spot pr
Slide 20: Australian east coast gas market prices - not going down
Australian east coast gas market prices - not going down • Need for more domestic supply • Bass Strait still in rapid decline • Reliance on LNG producers for dom gas comes with risk when Spot LNG/Dom gas price delta is extreme • Need more dedicated dom gas supply • Lead time for new basin supply is
Slide 21: Reserves, resources and Listing Rule disclosures
Reserves, resources and Listing Rule disclosures Corporate Exploration and gas discovered to date Based in Brisbane Wells Gas Resource + ASX Listed ATP 814 13 3,248 PJ ATP 813 6 830 PJ Deep Oil/Gas experience on the Board ATP 854 7 398 PJ 26 4,476 PJ Market Cap (8/03/22) ~$90million Reserves and Res
Slide 22: Overview of Blue and our activity
Overview of Blue and our activity + Listing Rule 5.42 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 announceme
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