Blue Energy Limited · ASX:BLU
Blue Energy — Investor Presentation (April 2017)
26 slides from Blue Energy's investor presentation, Apr 6, 2017
Slide 1: Investor Briefing
Investor Briefing 4th-6th April 2017 1
Slide 2: Legals
Legals 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
Slide 3: No gas in Eastern Australia – so what?
No gas in Eastern Australia – so what? 2
Slide 4: … and without gas the Duck in SA becomes a Black Swan
… and without gas the Duck in SA becomes a Black Swan Increasing asynchronous renewables require more variable baseload input - need gas fired generation “The Duck “ 3
Slide 5: ….did we not see the gas crunch coming??
….did we not see the gas crunch coming?? From 2013 media 4
Slide 6: It's been known since that demand would triple
… i t ’s b e e n k n o w n s i n c e 2 0 11 t h a t d e m a n d w o u l d t r i p l e (6 trains @ ~650 TJ/d = 3,900 TJ/day!) • Curtis Island – 3,900 Tj/day • Victoria – 750-1,000 Tj/day) ~30 Pj/a • Sydney – 230-270 Tj/day ~1,390 Pj/a • Adelaide – 180-220 Tj/day ~36 Pj/a ~66 Pj/a ~266 ~102 Pj/a Pj/a
Slide 7: So where's the new gas going to come from?
… s o w h e r e ’s t h e n e w g a s g o i n g t o c o m e f r o m ? -SA & QLD • Exploration bans and moratoria in Victoria, Tas , WA, SA & NT • Governments fail to prosecute the industry’s “Social Licence” • Activity levels have fallen off a cliff • Alternate international gas market developed and
Slide 8: ..but Gazettal to Production = 12 years!
..but Gazettal to Production = 12 years! Government approvals Gazettal, Tender, Native title and tenure award Location Sapphire selection,developmentAppraisal, reserve Production Licence well location (proposed) Land access, certification, field and environmental clearances Existingand Well developm
Slide 9: … has the market failed?
.. has the market failed? Qld Petroleum Exploration well count (data from GSQ) mmm Shale gas wells f= Conventional wells CSG wells ——Residential gas price - Qid Industrial gas price - Old Gas Price Source: Oakley Greenwood Blue.
Slide 10: …will the World run on renewables in 2035?
…will the World run on renewables in 2035? BP 27 Jan 2017 9
Slide 11: …. will Australia run on renewables?
…. will Australia run on renewables? Energy Consumption 10
Slide 12: ….we import our diesel and export our gas
….we import our diesel and export our gas Energy Trade 11
Slide 13: Transport, Defence, Resource and Agriculture sectors all exposed to import disruption
Tr a n s p o r t , D e f e n c e , R e s o u r c e a n d A g r i c u l t u r e s e c t o r s -all exposed to import disruption National Energy Security Issue No Strategic reserve or storage 12
Slide 14: …do we have an understanding of National Energy Vision and Strategy?
…do we have an understanding of National Energy Vision and Strategy? How the energy markets work? Energy producer cost bases? Energy contracting strategies to ensure business continuity? Lead times for onshore gas exploration to production? 13
Slide 15: Quickest solution for more gas
Quickest solution for more gas Develop existing undeveloped Reserves and discovered Resources (eg Bowen Basin) Connect these resources to markets And complete the national infrastructure network 14
Slide 16: East Coast Reserve Base
East Coast Reserve Base • 2P Reserves ARE NOT “flowing” molecules today 11,000 PJ (3P +2C) • Massive CAPEX is required to develop “deliverable 132 molecules” PJ 1,176 Surat Gas committed • Bowen Basin gas province PJ to LNG needs development and connection to the East Coast market 480 2,816 PJ PJ 15
Slide 17: The Bowen Basin Gas Province
The Obvious Solution “The Bowen Basin Gas Province” ~11,000 PJ of gas resource CURTIS ISLAND Wallumbilla Hub Connect the Bowen Basin production and reserves to the southern market 16
Slide 18: Bowen Gas Province
Bowen Gas Province Already a Producing Basin • Area currently produces 35 TJ/day • 300+ producing wells Sapphire development well location (proposed) • Compression and export infrastructure to Townsville Existing Well 17
Slide 19: Bowen Gas Province Resource Area
Bowen Gas Provence Resource Area ( ~ 1 5 , 0 0 0 k m 2) Blue Acreage Gas Fairway Coal resource area 30 km 18
Slide 20: Bowen Gas Province
Bowen Gas Province Blue’s ATP 814P Sapphire Conceptual Development plan • 100% Blue • Operatorship • 71 PJ 2P Reserves (uncontracted) • 298 PJ 3P Reserves (uncontracted) • Big resource upside (~3,000 PJ 3C) • Conceptual Development Sapphire development well location (proposed) plan and feasibility s
Slide 21: Blue Energy Snapshot
Blue Ene r gy Sna ps hot • Uncontracted 2P & 3P Reserves ASX Code BUL 2P Reserves (NSAI) 71 Pj/Bcf • Operatorship and control 3P Reserves (NSAI) 298 Pj/Bcf • Diverse portfolio – oil and gas 3C Contingent Resource 3,942 Pj/Bcf (NSAI) • Strong and experienced Board Cash (31 December 2016) $3.4 million
Slide 22: Emerging Plays
Eme r ging Pla y s New NT Gas Plays Permian Gas Permian Tight Gas 21
Slide 23: Emerging Plays
Emerging Plays Northern Territory Proterozoic plays • World class source rocks • Potentially large gas resource • Proof of concept with Origin well – early days Origin Discovery well – • Blue’s acreage is adjacent gas flow = 0.8-1.2 mcfd • Government enquiring into Fracture Stimulation 22
Slide 24: Additional Blue Gas Acreage
Additional B lue Ga s A c r e a ge ATP 854P Bowen Basin • Blue has uncontracted Contingent Resources (103 PJ) • Same play as Fairview and Spring Gully plus additional Early Permian targets • The block has infrastructure passing through – connected to Wallumbilla and Gladstone • There is exploration
Slide 25: East Coast Gas Summary
Eas t C oa s t Ga s Summary • Curtis Island is short gas • Curtis Island is drawing gas from Cooper Basin and offshore Victoria • Domestic Gas contracts continue to roll off – replaced by export contracts • Domestic gas users failed to contract future gas early enough • LNG exporters will supply dom
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