NuEnergy Gas Limited · ASX:NGY
NuEnergy Gas — Investor Presentation (February 2013)
20 slides from NuEnergy Gas's investor presentation, February 2013
Slide 1: 2013 Investor Presentation
ABN 50 009 126 238 2013 Investor Presentation February 2013 Muara Enim Pilot, 24 October: gas flared within 14 hours of dewatering
Slide 2: Agenda
AGENDA • Investment Highlights • Company Snapshot • 2012/13 Activities and Expenditure • South Sumatra Resource • Indonesian Gas Off-take (MoU) • Projected Revenue Stream and Returns • Future Growth Platform – Eastern Africa • 2013 Planned Value Adding Activities • Appendices 2
Slide 3: Investment Highlights
Investment Highlights • MoU signed at $10/mmBtu gas sales price with first revenue expected Q4 2013 • Gas Flared with preliminary permeability of 11 millidarcy (mD) and high gas content • NSAI* Independent Resource Certification showing 4.2 Tcf of prospective gas resources • Strong local Indonesian
Slide 4: Company Snapshot
COMPANY SNAPSHOT Corporate Snapshot INDONESIA South Sumatra Basin PSCs: Shares on Issue / Unlisted Options 201m/8.6m Muara Enim (ME) (40% participating share, Partner: PERTAMINA^) (Ordinary Shares – ASX:NGY) • Completed 2 core wells. • Converted well #2 to pilot production well and flared gas Market
Slide 5: NuEnergy – 2012/13 Activities to Date
NUENERGY – 2012/13 ACTIVITIES TO DATE Cost Country Completed Outcome $M ME CBM Well #1 19 metre thick continuous coal seam identified ME CBM Well #2 Gas content of 85 - 141 scf / tonne & gas quality @ +98% sales gas CBM Resource NSAI Independent 4.2 Tcf Prospective CBM Gas Resource & 8.1 Tcf Gas-in-
Slide 6: South Sumatra Resource – Build Up
SOUTH SUMATRA RESOURCE – BUILD UP 4.2 Tcf of NSAI certified Prospective gas resources 6.2 Tcf of shale GIP resources* 2012 Next Steps Contingent gas resources 2013 PROVEN Reserves through 2013 pilot sales (1P,2P,3P) Photo of flare: 26 November 2012, Muara Enim Pilot 6 * Independent resource esti
Slide 7: South Sumatra Resource – Appraisal Program
SOUTH SUMATRA RESOURCE – APPRAISAL PROGRAM Positive Gas Content, Quality & Permeability Results • Positive gas content results of up to 141 standard cubic feet per tonne (scf/t) and permeability at 11mD to support ME pilot production project • Gas content higher than comparable major sub-bituminous
Slide 8: South Sumatra Resource – Appraisal Program
SOUTH SUMATRA RESOURCE - APPRAISAL PROGRAM The 40 - 124 metre thick Suban, Mangus and Petai Coal Seams are the focus of the drilling in the Muara Enim & Muara Enim II PSCs as they are expected to generate significant proved reserves. World Class CBM Basin and Position 8
Slide 9: Gas Off-take MoU – First Commercial Step
GAS OFF-TAKE MoU – FIRST COMMERCIAL STEP Memorandum of Understanding (MoU) • Buyer PT Dharma Paratam Sejati – an established Compressed Natural Gas (CNG) and Independent Power Project (IPP) operator and developer in South Sumatra, the Riau province in central Sumatra and East Java • US $10/mmbtu gas
Slide 10: Projected Revenue Stream and Returns
PROJECTED REVENUE STREAM AND RETURNS ME PSC Pilot Project - Revenue Generation and Cost Recovery from Q4 2013 • Gross revenue stream commencing in Q4 from 1 million standard cubic feet per day (mmscfd) of gas sales (up to 5 mmscfd) equating to $10,000 revenue per day or $3.6m per year • Of this 10%
Slide 11: Future Growth Platform – Eastern Africa
FUTURE GROWTH PLATFORM – EASTERN AFRICA Tanzania • NuEnergy has completed two Joint Venture agreements • Total drill costs for two wells: US$400k • Two further significant CBM licence positions are under application with the Tanzanian Petroleum Development Corporation (TPDC) • Significant upcoming i
Slide 12: Future Growth Platform – Eastern Africa
FUTURE GROWTH PLATFORM – EASTERN AFRICA Malawi: • NuEnergy has a 100% participating interest in an Exclusive Prospecting Licence (EPL) covering 346 km2 in the south of Malawi. The licence covers both CBM and shale gas exploration • Past geological studies show this EPL to have Coal shales of the Per
Slide 13: 2013 Planned Value Adding Activities
2013 PLANNED VALUE ADDING ACTIVITIES Country Activity Outcome Contingent gas Upgrade prospective gas resources to contingent gas resources based on results thus far resource estimate ME CBM Well #2 Recommission CBM Well# 2 and Pilot Plant to flow gas Drill and complete pilot production wells 3 & 4 a
Slide 14: Appendices
APPENDICES NuEn avy 14
Slide 15: Sumatra Indonesia: Strong Underlying Gas Demand
SUMATRA INDONESIA: STRONG UNDERLYING GAS DEMAND • Major gas infrastructure connects NuEnergy’s PSC’s to the undersupplied Java, Singapore and Sumatra/Chevron Duri gas markets • NuEnergy has the potential to secure LNG pricing from these markets without having to build an LNG plant • Export & domesti
Slide 16: Economic Results of Pilot Project
ECONOMIC RESULTS OF 1 mmscfd PILOT PROJECT Case 1a Breakeven Sensitivity 8.0 70% NPV 60% 6.0 IRR 50% 4.0 10% Cost of Capital NPV (US'MM, 10%) 40% 2.0 30% IRR (%) - 20% 10% -2.0 0% -4.0 $4BE -10% -6.0 -20% $0 $2 $4 $6 $8 $10 $12 $14 Gas Price (US$/MMBtu) Demonstrated Commerciality IRR of 58.3% Br’eve
Slide 17: Economic Results of Pilot Project
ECONOMIC RESULTS OF 1 mmscfd PILOT PROJECT Case 1a Present ValueValue Present Waterfall WaterfallUS$’MM US$'MM Case 1a Nominal, PVO, Cash Flow Metric 30 12 25 0.3 10 10 8 20 NPV (US$'MM, 10%) 2.8 6 15 28 US$'MM 2.1 4 3.2 10 2 5 9.6 0 Contractor Capex Contractor Opex 3.8 0 -2 Gross Revenue Gov. FTP &
Slide 18: Economic Results of Pilot Project – Assumptions
ECONOMIC RESULTS OF PILOT PROJECT - ASSUMPTIONS General & Fiscal Assumptions Pricing & Product Assumptions • Equity valuation / results: US$Millions • Pilot CBM Gas Sales Price: US$10.00/mmbtu (flat) • Valuation & resource volumes: un-risked • Costing Basis: Flat Real Prices • Discount rate: 10% rea
Slide 19: Board & Management
BOARD & MANAGEMENT • Core management team has over twelve years of experience in selling gas into Indonesian/Asian gas pipelines and markets • Key Geological and Technical knowledge learnt from first two wells in South Sumatra will be carried forward to future wells • One of the first Company’s in S
Slide 20: Disclaimer
DISCLAIMER • This presentation has been prepared by NuEnergy Capital Limited (“NuEnergy” or the “Company”) and is being provided for the sole purpose of providing preliminary background financial, operational and other information to enable shareholders and/or prospective investors to review the bus