Blue Energy Limited · ASX:BLU
Blue Energy — Shareholder Meeting (November 2010)
24 slides from Blue Energy's shareholder meeting presentation, Nov 16, 2010
Slide 1: Managing Director's AGM Presentation
Managing Director’s AGM Presentation 16 November 2010 Slide 1
Slide 2: Corporate Snapshot
Corporate Snapshot BLUE ENERGY LIMITED Employees 15 Shares on Issue 647.5m Market Capitalisation $81m Cash $18m Shareholders 6,192 Coal Seam Gas Acreage 21,049km2 SIGNIFICANT SHAREHOLDERS ANZ Nominees 17.6% Stanwell Corporation 13.5% KOGAS 9.7% Slide 2
Slide 3: People
People Board Mr. Peter Cockcroft (Chairman) :International Gas and LNG veteran Mr. John Phillips (CEO & MD) :Technical and Management background in petroleum and CSG Dr. Paul Massarotto (NED) :Technical specialist and research background Mr. Garry Button (NED) :Finance and accounting expertise Mr. H
Slide 4: 2010 Milestones
2010 Milestones • NSAI certifies Contingent Resource of 3,142 PJ (GIP) at Monslatt . • NSAI certifies Shale Gas Prospective Resource of 3,630 PJ (GIP) at Monslatt. • Multi rig exploration drilling program across 3 permits – 17 wells drilled. • KOGAS and Blue execute midstream MOU to look at feasibil
Slide 5: Health, Safety & Environmental Performance
Health, Safety & Environmental Performance • Zero Recordable Staff Lost Time Injuries. • Zero Recordable Contractor Lost Time Injuries. • Zero significant environmental incidents. • Clean Regulator Environmental Audit for activities in strategic cropping areas. • No direct exposure to BTEX environme
Slide 6: Relative Share Price Performance
Relative Share Price Performance 250.00 Blue Energy share price Comparison with CSG exploration peers 200.00 BUL 150.00 GLL ICN MEL COI 100.00 50.00 - 1/03/10 1/04/10 1/05/10 1/06/10 1/07/10 1/08/10 1/09/10 1/10/10 1/11/10 Slide 6
Slide 7: Corporate Focus
Corporate Focus • Deliver Shareholder value: Organic Growth – Monslatt/Galilee/Surat acreage • Establish 2P Reserves – Re-values company • Execute Offtake Agreements • Undertake design for Field Developments Asset Opportunities Corporate Opportunities • Ensure adequate funding is maintained. •
Slide 8: Operational Focus
Operational Focus • ATP 814P – Monslatt Block identification of a significant gas resource conversion of contingent resource to reserves commercialisation of gas resource • including gas offtake agreements /power/mini LNG/export LNG • ATP 813P Galilee Basin – broad exploration program for init
Slide 9: CSG Sector Observations
CSG Sector Observations • QCLNG project has achieved Regulatory approval and BG has executed a Final Investment Decision (FID). • GLNG Project has obtained Federal Regulatory approval and the APLNG Project has Qld Govt Regulatory approval – significant milestones for the CSG industry. • Train 2 of t
Slide 10: CSG Sector Observations
CSG Sector Observations • LNG Proponent acreage – covers majority of Surat and Bowen Basins. • Santos’ use of Cooper gas flags potential shortfall in CSG reserves in Surat/Bowen and has future domestic gas supply/price implications. • Other LNG proponents without conventional gas resources may also
Slide 11: CSG Sector Observations
CSG Sector Observations 2P CSG Reserves =29,685 PJ 3P CSG Reserves = 56,517PJ LNG proponents have 87% of the 2P reserves and 78% of the 3P reserves Data source: RLMS September 2010 Slide 11
Slide 12: Year in Review: CSG Wells drilled
Year in Review 17 CSG Wells drilled ATP 814P – Bowen Basin Core/Strat holes: Monslatt 3, 5, 6; Sapphire 2 & 3; Kerlong 1; Pilot Holes: Monslatt 4, 5P, 6P, 7, 8H; Seismic: 16km 2D ATP 813P – Galilee Basin Coreholes: Kanaka 1, Stainburn Downs1, Myross 1, Ballyneety 1 ATP 819P – Surat Basin Coreholes:
Slide 13: Year in Review ATP 814P
Year in Review ATP 814P Monslatt 3 core holes and 2 chip holes drilled and established: CSG Resource • 3,143 PJ 2/3C (GIP) Shale Gas Resource • 3,630 PJ PR (GIP) In total 1,295 PJ of implied recoverable 2C+3C High gas content (up to 23m3/tonne) Good net coal intersections - 30+m Pilot Production Hol
Slide 14: Year in Review ATP 814P
Year in Review ATP 814P Sapphire Block 2 core holes drilled: Sapphire 2 & 3 established viable Fort Cooper CM target at 400 m MCM at 850 m Net Coal: 35m Gas content: up to 15 m3/tonne Central Block One corehole drilled: Kerlong 1 Targeted the Rangal CM The well confirmed the Rangals as a valid CSG t
Slide 15: ATP814P Geology
ATP814P Geology Drilling has established • Permian aged Moranbah CM, Rangal and Fort Cooper CM viable targets. • Faulted and intruded terrain. • Thick gas saturated coals – with adjacent analogue production (Moranbah Gas Project). • Need for additional seismic and structural control. Slide 15
Slide 16: ATP814P Resource Estimate
ATP814P Resource Estimate ATP814P Interval Contingent Prospective Certifier Block Resource Resource PJ’s (GIP) PJ’s (GIP) 2C 3C Monslatt Coals 1,206 1,937 NSAI Shales 3,630 NSAI Central Rangal 1,100 Internal Sapphire Moranbah 725 Internal Rangals 148 Internal Totals 1,206 1,937 5,603 Illustrative De
Slide 17: ATP 814P Strategic Location
ATP 814P Strategic Location ATP 814P • Surrounded by LNG tenements (BG and Shell). • Relatively close to electricity grid interconnects. • Disconnected from the SE Qld gas market. • Close to existing operating coal mines. • Proposed new coal mines will require power. • Potential market for Mini LNG.
Slide 18: Year in Review ATP 813P
Year in Review ATP 813P ATP 813P First phase of exploration program Completed. Coreholes: Kanaka 1 Net Coal = 27m Gas Content = 4-6m3/tonne Stainburn Downs1 Net Coal = 21m Gas Content = 4-6m3/tonne Myross 1 Net Coal = 18m Gas Content = 4m3/tonne Ballyneety 1 Net Coal = 12m Gas Content = 3m3/tonne Sl
Slide 19: ATP813P Regional Geology
ATP813P Regional Geology Galilee Basin • Superimposed Jurassic-Cretaceous, Permo-Triassic and Carboniferous-Devonian sedimentary sections • Permian section is time equivalent of the Cooper Basin and Bowen Basin sequences – extensive and thick coal measures – CSG potential • Strong Jurassic aquifer d
Slide 20: Maryborough Basin Overview
Maryborough Basin Overview Maryborough Basin • Awarded excluded lands in ATP613P • Awaiting award of ATP733A and ATP674A from Qld Government • Earning a 75% interest in the permits/applications • Blue is Operator • Potential plays CSG, Shale gas Tight conventional gas Gas storage • Forward pla
Slide 21: ATP 600 series applications
ATP 600 series applications ATP 600 series applications • Conventional oil and gas acreage in western Qld. • Mt Isa requires gas post 2013. • Pipeline passes through permit area. • Mt Isa gas market offers superior pricing than SE Qld. • Native title issues being resolved for award of permits. • Oil
Slide 22: Forward Plan
Forward Plan • Bring Monslatt Pilot wells on line – reserve certification. • Expand reserves base - Central and Sapphire Blocks of 814P. • Negotiate and execute Gas Sales Agreements for Monslatt gas. • FEED for gas field development. • Continue Galilee Basin exploration program. • Commence activity
Slide 23: 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 24: www.blueenergy.com.au
www.blueenergy.com.au info@blueenergy.com.au REGISTERED OFFICE Level 3 410 Queen Street Brisbane QLD 4000 Ph: +61 7 3270 8800 Fax: +61 7 3270 8899 Slide 24