Ptr Minerals Limited · ASX:PTR
Ptr Minerals — Petratherm — Shareholder Meeting (November 2009)
39 slides from Ptr Minerals's shareholder meeting presentation, Nov 26, 2009
Slide 1: Chairman's Address and Managing Director's Presentation (ASX Release)
ASX Release PETRATHERM LIMITED ABN 17 106 806 884 Chairman’s Address and Managing Director’s Presentation 2009 Annual General Meeting Chairman’s Address Petratherm Chairman Derek Carter today thanked shareholders for their attendance at the company’s Annual General Meeting and provided an overview o
Slide 2: Paralana JV strengthened with TRUenergy's $57M Farm-In
Paralana JV strengthened with TRUenergy’s $57M Farm-In The Paralana joint venture now includes TRUenergy Geothermal (internationally owned by China Light & Power) who is farmed into the project under an agreement for up to $57 million for 30% for the project, complementing the existing JV with Beach
Slide 3: Outlook and closing remarks
At Paralana, we intend completing temperature measurements before evaluating the site for a mini fracture in the first quarter and a multi-zone fracture in the second quarter. Drilling of the Paralana 3 deep producer well is scheduled for the third quarter followed by proof of concept late in the ye
Slide 4: Slide 4
Slide 5: Petratherm 2009 Annual General Meeting of Shareholders
Petratherm 2009 Annual General Meeting of Shareholders Chairman‟s Address Derek Carter Company and Projects Update Presented by Managing Director Terry Kallis and Exploration Manager Peter Reid 26 November, 2009
Slide 6: Disclaimer
Disclaimer 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 this presentation is
Slide 7: Presentation Overview
Presentation Overview › Introduction – Paralana DVD › Chairman‟s Address › Company and Projects Update › Paralana JV project › East Gippsland › Spain – Madrid, Barcelona and Canary Islands › China › Outlook for 2010 and beyond › Background information slides
Slide 8: Chairman's address
Chairman’s address › Emerged from a challenging financial year in a strong position › Drilling commenced with Ministerial Launch and has now reached target depth of 4012 metres – casing is under way › TRUenergy signs as a joint venture partner › Paralana JV is awarded a $7 million geothermal drillin
Slide 9: Chairman's address
Chairman’s address › Paralana awarded $62.8 million Renewable Energy Demonstration Program Grant › $7.3 million raised in placement and Share Purchase Plan › Cooperative Agreement with Spanish Governments on the Geo-Madrid project › Exploration/assessments continue in Spain, China and Victoria
Slide 10: Our company
Our company Our company › Leading Australian geothermal exploration and development company › Projects spanning Australia, Spain and China › Flagship project – Paralana Other growth projects: › Madrid › Barcelona › Canary Islands, Tenerife › Victoria‟s East Gippsland Basin › China exploration agreem
Slide 11: Corporate and financial
Corporate and financial › Shares on Issue: 94.45 million Shares price over 2009 year › Share Price: $0.425 (25 Nov) Steady and improving despite › Market Cap: $40.2 m (25 Nov) uncertain market. Trading volume increased significantly › Cash Position: $8.7 m (23 Nov) › Shareholders: 3,424 shareholders
Slide 12: Board of Directors
Board of Directors 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 Governance › Exploration and development › Ge
Slide 13: Our business model
Our business model “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 a favorable combination
Slide 14: Geothermal energy technologies and cost drivers
Geothermal energy technologies and cost drivers Cost Drivers › Temperature Madrid District Heating › Drilling Depth › Flow Rate Tenerife Volcanic › Network Connection › Generation Plant East Gippsland › High upfront costs – drilling, Paralana fracture stimulation, connection, plant Renmark? › Projec
Slide 15: Renewable energy policy and geothermal
Renewable energy policy and geothermal Strong Federal and State Government Strong industry networks support › $50 million geothermal drilling program - › Geothermal energy industry maximum $7m per project development framework › $300 million Renewable Energy › Australian Geothermal Energy Demonstrat
Slide 16: Our Australian projects
Our Australian projects › Paralana project › Drilling campaign of Paralana 2 well drilling finished at our site 600km north of Adelaide › Temperature measurements 4 weeks after casing completed › East Gippsland in Victoria › Awarded a 9,000km2 geothermal exploration permit to develop a Hot Sedimenta
Slide 17: Paralana geothermal energy JV project - snapshot
Paralana geothermal energy JV project - snapshot › Anecdotal evidence from the Paralana hot springs in the nearby Flinders ranges › High heat flow - 128 mW/m² › Measured temperature of 109˚C at 1807m › Mature basin, stable formations, no hydrocarbons › Inferred geothermal resource of 230,000 PJ – in
Slide 18: Paralana 2 well drilling – key success factors
Paralana 2 well drilling – key success factors › The well was terminated at a depth of 4,012m, took longer and cost more than originally planned – logging under way and to be cased. › Key success factors developed to guide Paralana project and incorporated in JV decision-making, GDP grant contract a
Slide 19: Paralana joint venture arrangements
Paralana joint venture arrangements › Beach Petroleum Farm-in (Jan 2007) for up to $30M for 36% › $5M first well and stimulation › $5M second well and stimulation – earns 21 % › After HEWI – Option to earn a further 15% for $20M › Plus equity share of project costs at every stage › TRUenergy Farm-in
Slide 20: Joint Venture Contributions post HEWI
Joint Venture Contributions post HEWI*(*assumes all options exercised and cost targets met) 30 MW Project costs to 2014 with REDP grant - almost free carry Forecast Beach TRU PTR Capital Contribution Contribution Contribution Cost ($m) ($m) ($m) ($m) Without REDP grant 7.5 MW (1 well plus $45m $29.0
Slide 21: Paralana 2 – Drilling
Paralana 2 – Drilling New Weatherford Owned 2000HP Le Tourneau Lightning Rig 57 metres high ~ 10 Stories Arrived at Port Pirie 11 May 09 85 Semi-Trailer Loads Spudded June 30, 2009
Slide 22: Paralana 2 - Operations
Paralana 2 - Operations › Petratherm/Beach – extensive stakeholder and community consultation – Adnyamathanha Community, Beverley Uranium Mine , Epic gas pipeline, Arkaroola Village › Beach Petroleum – Manager of Drilling Operations › HSE - no lost time injuries › Only minor shake down issues › Hand
Slide 23: Scenario Planning versus Murphy's Law
Scenario Planning versus Murphy’s Law
Slide 24: Paralana 2 – Drilling
Paralana 2 – Drilling Hard Rock Formations – slow ROP 1-3 m/hr Tested several BHA arrangements to optimize ROP Conservatively drilled to maximize likelihood of success
Slide 25: Paralana 2 - Drilling Completed to 4012 M
Paralana 2 - Drilling Completed to 4012 M – 9 Nov 2009 › First well designed following low-risk, standard operating methods › Steady but slow drilling due to hard formations › Conservatively drilled to ensure success › Wireline and LWD logging to be completed this week › Well is to be cased and ceme
Slide 26: Paralana 2 – geothermal brines
Paralana 2 – geothermal brines › Inflow zones from 3690m › Brine samples taken › Wireline and LWD Program Reservoir Characterisation! › Temperature › Permeability › Insitu stress field › Geology › Rock Properties
Slide 27: Australia - East Gippsland, Victoria
Australia - East Gippsland, Victoria › 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 economically v
Slide 28: Spain
Spain Madrid › Madrid District Geothermal Heating Project › Signed cooperative agreement with Spanish Federal and Madrid Regional governments Barcelona › Have four geothermal investigation permits – both engineered geothermal and district heating potential Canary Islands/Tenerife › Magnetotelluric s
Slide 29: Spain – Madrid district heating project
Spain – Madrid district heating project “Highlighted as one of six 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 › One deep 3.4km well drilled with 156˚C
Slide 30: Spain - Barcelona
Spain - Barcelona › Petratherm has four geothermal investigation permits covering areas within the Valles and Ebro Basins near the city of Barcelona › Close to major electricity transmission infrastructure › The geology and market characteristics make the area attractive for geothermal district heat
Slide 31: Spain - Tenerife
Spain - Tenerife › Active volcanic island with a population of one million › Studies suggest magma chamber 3km to 4km below surface › Targeting 50MW to 100MW development › Energy prices are over €90/MWh or AUD $150/MWh - three times prices in Australia › Commenced extensive magneto-telluric survey w
Slide 32: China
China › 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 Monitoring › Two areas i
Slide 33: Outlook for 2010 and beyond: Paralana Joint Venture Project
Outlook for 2010 and beyond Paralana Joint Venture Project › Complete logging, casing & temperature measurement, formation evaluation & fracture program design › 1st Qtr 2010: Mini fracture program/fracture stimulation design › 2nd Qtr 2010: Multi-zone fracture stimulation › 3rd Qtr 2010: drilling o
Slide 34: Outlook for 2010 and beyond
Outlook for 2010 and beyond › Complete Tenerife MT survey and progress JV negotiations – identify deep drill target in Q1 2010, develop work program › Continue Madrid GDH coordination with Federal & State Governments and progress JV opportunities complete Q1 2010 › Other projects – Barcelona GDH/EGS
Slide 35: www.petratherm.com.au
www.petratherm.com.au
Slide 36: Paralana project – HEWI model and economic assumptions
Paralana project – HEWI model and economic assumptions › Temp. of 170˚C to 200˚C at 3,600m to 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 of parasitic loads › 20 year project l
Slide 37: Paralana transmission plan
Paralana transmission plan › 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 Olympic Dam › Potentially f
Slide 38: Industry transmission plan – northern SA
Industry transmission plan – northern SA › 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 million for South Australia
Slide 39: MMA Report
MMA Report ” Assessment of the value of new 275 KV transmission line to connect Geothermal Resources to the NEM in South Australia” Paralana delivered price after paying for electricity transmission is estimated by MMA to be $83/MWh to Olympic Dam Table shows long term development path for PTR with