Blue Energy Limited · ASX:BLU
Blue Energy — Noosa Mining Conference 2016
22 slides from Blue Energy's conference presentation, Jul 21, 2016
Slide 1: Noosa Mining Conference
Noosa Mining Conference 21st July 2016 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: East Coast Demand to Soar (Noosa July 2014)
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Slide 4: Noosa July 2016
N oosa July 2016 € 22S pr fiSing nes ch 8 terang pO ‘tom oe ye tow! mitiion 1" ¢ sovar-cepenient aoc Maceianie 2017 5 OREN said the dames ‘woul SSio million 1Owet ean wast TMBUEE eiecrniity PICS Fg es tee Vacs the National electriaty Usins, pas a purchases i ee eat week. MAME gre abso at Nea secord
Slide 5: More studies, enquiries and regulations
More studies, enquiries and regulations “The triple whammy of the introduction of LNG and with it exposure to international gas pricing, a fall in oil prices leading to a downturn in exploration and new development, and regulatory uncertainty and exploration moratoria, has created an increasingly co
Slide 6: Bingo – all fixed!
Bingo – all fixed! Qld Petroleum Exploration well count (data from GSQ) 180 160 140 120 100 Shale gas wells Conventional wells 80 CSG wells 60 40 20 0 2010 2011 2012 2013 2014 2015 5
Slide 7: The Country's Energy Dilemma
The C ountr y ’s Ene r gy D ile m m a • Natural Gas is perfect for stable low cost clean power • Exploration for new gas resources has shut down and there is supply stress • Cost of electricity has soared • Totally reliant on imported liquid fuel for national transport fleet • Security of national e
Slide 8: Why is there gas supply stress?
Why is ther e ga s s upply s t r e s s ? • Cold winters in the southern states • Curtis Island LNG export ramping up to full capacity • Stabilising the electricity grid in SA… with more states to follow • Unplanned gas supply disruptions • Insufficient new gas supply now and longer term • Disconnect
Slide 9: …and so the price response is ..
…and so the pr ic e r e s pons e is .. 8
Slide 10: But China gets it… it's the environment stupid!
b u t C h i n a g e t s i t … . i t ’s t h e e n v i r o n m e n t s t u p i d ! China’s Gas Supply/Demand • Air quality is the environmental issue in China • Gas provides instantaneous energy AND cleaner air • 10% gas use by 2020 (6% now) - 10 x Curtis Islands • World average gas use = 22% of energ
Slide 11: Australia needs more dom gas and LNG
Australia needs more dom gas and LNG Domestic and LNG Gas Demand Undeveloped Gas Supply Developed Gas Supply 10
Slide 12: …….Blue is well positioned
So we need more gas? …….Blue is well positioned 11
Slide 13: The Blue Portfolio
The Blue Portfolio 4 T C F To t a l R e s o u r c e B a s e 12
Slide 14: Corporate snapshot
Corpor a te s na ps hot ASX Code BUL • Operatorship and 100% equity 2P Reserves (NSAI) 71 PJ • Control of balance sheet 3P Reserves (NSAI) 298 PJ • Strong and experienced Board 2C Contingent Resource (NSAI) 994 PJ 3C Contingent Resource (NSAI) 3,942 PJ • Low overhead Cash (30 June 2016) $4.6 million
Slide 15: Gas Reserves & Resources
Gas Res e rve s & R e s our c e s Reserves Pj Tier 1 certifier - Netherland, Sewell and Associates Inc 67% CAGR on resources 14
Slide 16: NEWSFLASH The missing link is a 150 km pipeline!
NEWSFLASH The missing link is a 150 km pipeline! 15
Slide 17: Talking to gas buyers
Talking to ga s buy e r s Three pronged low cost marginal producer strategy; • Industrial gas buyers (single and/or consolidated) - Domestic • Fuel switching in the nations highest diesel use areas - Domestic • Supply to LNG demand - Export 16
Slide 18: Breaking play position
B r eaking pla y pos it ion Proterozoic source/shale play • 1.2-1.8 billion year old rocks • World class source rocks • Attracted Nth American players Plays being derisked by multiple players Infrastructure being developed Tennant Creek – Mt Isa pipeline Icthyus LNG plant in Darwin Greater McArthur
Slide 19: Corporate run rate
Corpor a te r un r a te • Continual line item Total Overhead review 5,000 4,500 • Running costs continue to be cut 4,000 3,500 • Lowest amongst peers $'000 Nominal 3,000 2,500 2,000 1,500 1,000 500 - 12/13 13/14 14/15 15/16 Shareholders funds go toward value adding 18
Slide 20: Reserves and Resources
Reserves and Resources Assessment Announcement Permit Block 1P (PJ) 1C (PJ) 2P (PJ) 2C (PJ) 3P (PJ) 3C (PJ) Date Date ATP854P 30/06/2012 19/03/2013 - 23 - 49 - 103 ATP813P 29/10/2014 30/10/2014 - - - 62 - 838 ATP814P Sapphire 5/12/2015 8/12/2015 - 67 60 109 218 188 ATP814P Central 5/12/2015 8/12/201
Slide 21: Summary
Summary • East Coast gas supply crunch has started • Traditional gas sources (Cooper, Otway and Gippsland Basins) are in decline • Exploration onshore has ceased – so where is the new gas coming from? • Price response this winter gives a hint of the future • Blue has gas reserves and is developing a
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