Slide 1: MD presentation to Investors
ASX Release PETRATHERM LIMITED ABN 17 106 806 884 For personal use only MD presentation to Investors Petratherm’s Managing Director, Terry Kallis, will today present the latest update on the Company’s activities and projects to investors, including financial institutions and brokers in Brisbane. The
Slide 2: Investor Presentation: Company and Projects Update
Petratherm For personal use only Investor Presentation Company and Projects Update Terry Kallis Managing Director March 2010
Slide 3: For personal use only
For personal use only
Slide 4: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Any forward-looking statements included in Petratherm makes no representation or Petratherm Limited (Petratherm). The this document involve subjective judgment warranty as to the accuracy, reliability or information contained in
Slide 5: Presentation Overview
Presentation Overview For personal use only › Company overview › Corporate and financial › Skills & capabilities, business model, track record › Geothermal competitiveness and growth › Overview of diverse portfolio of projects › JV partners and deals (Australia & Spain) › Projects › Paralana - flags
Slide 6: Petratherm overview
Petratherm overview For personal use only Our company MADRID & BARCELONA Direct use heat, EGS & hydrothermal › Leading Australian geothermal exploration and development company CHINA TENERIFE & Exclusive GRAN CANARIA Conventional exploration agreement › Projects spanning Australia, volcanic Spain an
Slide 7: Petratherm - Corporate and financial
Petratherm - Corporate and financial For personal use only Listed ASX:PTR › Shares on Issue: 94.45 million › Share Price: $0.255 › Market Cap: $24.1 million › Cash Position: $2.2 million (31 Dec) › Shareholders: 3,708 shareholders › Minotaur Exploration 22 % › Australian Ethical Investments 4.8 % Pa
Slide 8: Why invest in Petratherm?
Why invest in Petratherm? For personal use only › Geothermal energy expected to be competitive and with high growth potential › Strong Australian government support – capital grant funding and renewable energy target › Paralana project - injection well and temperature successful, fracture stimulatio
Slide 9: Why invest in Petratherm?
Why invest in Petratherm? For personal use only › First mover advantage in Spain, MoU with Enel for electricity producing projects for Iberian peninsula, JV principles for Tenerife geothermal project agreed and advanced JV discussions for Madrid district heating › Pipeline of additional projects and
Slide 10: Excellent skills and capabilities
Excellent skills and capabilities For personal use only Board An experienced board with a strong combination of commercial and technical skills › Financial management › Legal Derek Carter Simon O’Loughlin Richard Hillis Chairman Director Director › Marketing › Project Management › Corporate Governan
Slide 11: Sound business model
Sound business model For personal use only “To explore for and develop emission free geothermal energy projects that are commercially sustainable” › To develop a portfolio of quality geothermal energy projects › Explore both conventional and engineered geothermal systems – for power and heat › Find
Slide 12: Track record of achievement
Track record of achievement For personal use only › Paralana 2 deep well successfully completed › Temperature of 176˚C at 3,672m confirmed and 190˚C expected at 4,000m › Strong government support for Paralana JV project - awarded $69.8 million in grants › Enel Green Power deal to jointly develop all
Slide 13: Geothermal cost competitiveness
Geothermal cost competitiveness - (source MMA presentation to 2009 AGEC conference) MacLennan Magasanik Associates (MMA) is a leading Independent study by For personal use only 350 independent economic consultant with particular skills in MMA shows that EGS the area of energy markets and renewable e
Slide 14: Geothermal growth potential
Geothermal growth potential – (source MMA presentation to 2009 AGEC conference) For personal use only SHW Wood / Wood Waste Wheat/ethanol plant Bagasse Black Liquor Wave Wet waste Agricultural Waste Landfill Gas Municipal Solid Waste Hydro Sewage Gas Geothermal Wind Solar / PV Expanded MRET Target 5
Slide 15: Diverse portfolio of quality geothermal projects
Diverse portfolio of quality geothermal projects For personal use only Geothermal projects MADRID & BARCELONA across the spectrum of Direct use heat, EGS & geothermal technologies hydrothermal › Projects spanning Australia, Spain and China CHINA › Flagship project – Paralana › TENERIFE & Exclusive G
Slide 16: Diverse portfolio of quality geothermal projects
Diverse portfolio of quality geothermal projects For personal use only Key Project Parameters and Costs Lower risk and lower growth potential Madrid District Heating › Temperature › Drilling Depth › Flow Rate Tenerife and Gran Canaria Volcanic › Network Connection › Generation Plant East Gippsland ›
Slide 17: Strong Australian government support
Strong Australian government support For personal use only › $50 million Geothermal Drilling Program $235 million Renewable Energy Demonstration Program › New Australian Centre for Renewable Energy (ACRE) – manage all current & new programs › Review of electricity and gas networks by the Australian
Slide 18: Highly capable array of joint venture partners
Highly capable array of joint venture partners For personal use only › Beach Energy › Top four Australian ASX listed oil and gas company located in Adelaide and with interests in Australia, Europe and Africa › TRUenergy Geothermal › Wholly owned subsidiary of CLP group – listed on the Hong Kong stoc
Slide 19: Paralana joint venture and government grant arrangements
Paralana joint venture and government grant arrangements › For personal use only Beach Petroleum Farm-in (Jan 2007) for up to $30m for 36%, plus equity share of project costs › TRUenergy Farm-in (Aug 2008) for up to $57m for 30%, plus equity share of project costs › JV Projects stages › Proof of con
Slide 20: Project joint venture – cost estimates
Project joint venture – cost estimates (assumes JV earn-in options exercised) › Proof of Concept - next steps For personal use only Project JV costs PTR cost › Fracture stimulate – Paralana 2 $2m $1.4m 1 › Drill producer well – Paralana 3* $15m - $18m $2.1m - $4.1m 2 › Fracture stimulate/circulate $
Slide 21: Joint Venture Contributions post Proof of Concept
Joint Venture Contributions post Proof of Concept (assumes JV earn-in options exercised and REDP grant of $62.8 million) For personal use only Forecast PTR Base Case Cost Capital Contribution Cost ($m) ($m) Post proof of “HEWI” Assumption concept Petratherm could be almost free carried to a 7.5 MW (
Slide 22: Spain – Enel Green Power deal
Spain – Enel Green Power deal For personal use only › Enel Green Power part of the very large Enel group › Joint development of all electricity producing projects in Spain and Portugal › Portugal has feed in tariff of over €280/MWh ($420/MWh) for geothermal energy › Direct and external exploration c
Slide 23: Paralana well drilling – key success factors
Paralana 2 well drilling – key success factors For personal use only Key success factors for the Paralana 2 well are: › Equal/better industry safety & environment benchmarks › Target a minimum drill depth of 3600m and maximum drill depth of 4000m › Achieve a minimum temperature of 170˚C at 400
Slide 24: Paralana Project – commercial overview
Paralana Project – commercial overview For personal use only › Potentially commercially viable at all stages of development › Close (10kms) off grid local customer (5-30MWe) followed by large on grid development (260 MWe+) › Transmission rule changes to support low cost connection to market › Long t
Slide 25: East Gippsland, Victoria
East Gippsland, Victoria For personal use only › Petratherm has a 9,000km2 geothermal exploration permit for the East Gippsland Basin in Victoria › Hot Sedimentary Aquifer Project › Favorable transmission connection options to the National Electricity Market › Expect fluid in excess of 150˚C at econ
Slide 26: Spain – Madrid geothermal district heating project
Spain – Madrid geothermal district heating (GDH)project “Highlighted as one of six For personal use only renewable energy projects of interest within the Madrid Regional Government’s Renewable Energy Cluster” › Large tenement 20km by 20km in the north of Madrid › Three shallow 2000m wells drilled an
Slide 27: Spain - Barcelona
Spain - Barcelona For personal use only › Petratherm has four geothermal investigation permits near Barcelona › Existing wells have confirmed temperatures of 130˚C at depths of 1500 to 1800 metres › Close to major electricity transmission infrastructure › The geology and market characteristics attra
Slide 28: Spain - Tenerife
Spain - Tenerife For personal use only › Active volcanic island, MT indicates magma chamber 3 to 4 kms below surface Bottom hole temp. gradient › Population approx. 1 million and power of 94ºC/km demand of > 800 MW (diesel and wind) › Geochemistry indicates presence of a hydrothermal system with 250
Slide 29: China
China For personal use only › Exclusive Cooperative Agreement to identify high prospect geothermal energy projects in China with four Chinese Government Institutions: › Chinese Geothermal Energy Society › Geological Survey of China › Chinese Academy of Sciences › China Institute of Geo-Environment M
Slide 30: Heliotherm – a unique solar thermal R & D project
Heliotherm – a unique solar thermal R & D project For personal use only › Heliotherm Limited is a 100 per cent subsidiary of PTR awarded a $0.8 million SA government grant and has applied for a further $0.7 million grant › Exclusive agreement with University of Adelaide to develop the solar thermal
Slide 31: Outlook for 2010 and beyond
Outlook for 2010 and beyond For personal use only Petratherm future cost estimates › Paralana proof of concept - PTR costs $4.9m to $6.9m, primarily in 1st Qtr 2011 › Paralana 3.75 MW plant – PTR costs $0.0m during 2011 › Tenerife slim line well – PTR costs $0.6m, 2nd half 2010 › Tenerife deep produ
Slide 32: Outlook for 2010 and beyond
Outlook for 2010 and beyond For personal use only Paralana JV project milestones › 2nd Qtr 2010: Mini fracture program/fracture stimulation design › 2nd Qtr 2010: Multi-zone fracture stimulation › 4th Qtr 2010/1st Qtr 2011: drilling of the Paralana 3 deep producer well › 2nd Qtr 2011: Circulation Te
Slide 33: Outlook for 2010 and beyond
Outlook for 2010 and beyond For personal use only › Establish SPV for JV– identify slim line drill target in Q2 2010 & production well first half 2011 › Continue Madrid GDH coordination with Federal & State Governments and progress JV opportunities complete Q2 2010 › Develop projects with Enel in Sp
Slide 34: www.petratherm.com.au
For personal use only www.petratherm.com.au
Slide 35: Paralana Ministerial Launch – August 2009
Paralana Ministerial Launch – August 2009 For personal use only
Slide 36: Paralana geothermal energy JV project - snapshot
Paralana geothermal energy JV project - snapshot For personal use only › Anecdotal evidence from the Paralana hot springs in the nearby Flinders Ranges › High heat flow - 128 mW/m² › Initial measured temperature of 109˚C at 1807m and recently at 176˚C at 3672m › Mature basin, stable formations, no h
Slide 37: Paralana project – HEWI model and economic assumptions
Paralana project – HEWI model and economic assumptions Key Economic Assumptions: For personal use only › Temp. of 190˚C at depth of 4,000m › Flow rate of 75 litres per sec – conservative compared with other public announcements › Net output per production well of 3.75 MW based on flow and inclusive
Slide 38: Paralana transmission plan
Paralana transmission plan For personal use only › Close to customer at the Beverley mine – only 10 kilometres away › Plans for mine expansions - Four Mile deposit and new areas under exploration › Longer term plan to supply large- scale base load power through entry points at Port Augusta and Olymp
Slide 39: Industry transmission plan – northern SA
Industry transmission plan – northern SA For personal use only › 2009 independent report by McLennan Magasanik & Associates (MMA) shows savings in linking geothermal projects in the northern part of South Australia early to the National Electricity Market (NEM) › MMA estimates benefits of $860 milli
Slide 40: MMA Report: value of new KV transmission line
MMA Report ” Assessment of the value of new 275 KV transmission line to connect geothermal resources to the NEM in South Australia” For personal use only Paralana delivered price after paying for electricity transmission is estimated by MMA to be around $83/MWh to Olympic Dam Table shows long term d
Slide 41: Paralana joint venture arrangements
Paralana joint venture arrangements For personal use only › Beach Petroleum Farm-in (Jan 2007) for up to $30M for 36% plus equity share of project costs at every stage › $5M first well and stimulation › $5M second well and stimulation – earns 21% › After HEWI – Option to earn a further 15% for $20M
Slide 42: Joint Venture Contributions post HEWI
Joint Venture Contributions post HEWI (assumes earn-in options exercised) Project costs cost 2015 for 30 MW project – almost free carry - includes REDP grant of $62.8 million For personal use only Forecast Beach TRU PTR Base Case Cost Capital Contribution Contribution Contribution Assumption Cost ($