PTR Minerals Limited · ASX:PTR
PTR Minerals — Petratherm — SA Resources & Energy Investment Conference 2008
28 slides from PTR Minerals's conference presentation, Apr 30, 2008
Slide 1: Developing a Portfolio of Quality Geothermal Energy Projects
petratherm SA Resources & Energy Investment Conference 2008 Developing a Portfolio of Quality Geothermal Energy Projects Presented by: Terry Kallis Managing Director Petratherm Limited 30 April 2008 Explorer and Developer of Geothermal Energy
Slide 2: Key Messages
Key Messages • Petratherm’s key strength lies in its approach to “exploration for heat” and its commercial assessment of projects - “location, location, location” – resource, market, permits/stakeholders • The approach has resulted in a portfolio of 11 quality projects in Australia and Overseas – fi
Slide 3: Petratherm Mission and Business Model
Petratherm Mission and Business Model Mission “to explore for and develop, emission free, geothermal energy projects that are commercially sustainable” Business Model “to develop a portfolio of quality geothermal energy projects conventional and EGS – for power and/or heat – where there is a favoura
Slide 4: Engineered or Enhanced Geothermal Systems
Engineered or Enhanced Geothermal Systems
Slide 5: Petratherm Limited
Petratherm Limited Geothermal Energy Explorer & Developer • MEP major shareholder 34% • Market Cap $44 M, current price $0.77 • Four Australian projects in SA Almazan • Seven Spanish projects • Exclusive agreement to identify projects in China • Flagship Paralana Project – Up to $30M JV with Beach P
Slide 6: Petratherm Limited - Spanish Projects
Petratherm Limited Geothermal Energy Explorer & Developer • Seven Spanish projects • Conventional & EGS • Potential for electricity production and direct use Almazan heating Almazan Barcelona • First mover advantage Madrid • Geology is conducive to EGS Alicante • High electricity prices Seville • St
Slide 7: Board & Management
petratherm Board & Management Derek Carter Simon O’loughlin Prof. Richard Hillis Chairman Director Dr Lloyd Taylor Director Director Richard Bonython Terry Kallis Donald Stephens Peter Reid Director Managing Director Company Secretary Operations Manager
Slide 8: Corporate Overview
Corporate Overview Combined skills and experience of the Board, Management, Partners and Consultants capable of delivering successful geothermal energy projects – from underground resource through to market Beach Petroleum - subsurface – well design , drilling & fraccing Geothermal Explorers– EGS re
Slide 9: Petratherm's Exploration Model
Petratherm ’s Exploration Model Petratherm’s “Shallow Hot Rocks close to Market" “Hot Rocks” are EGS , i.e. Engineered Geothermal Systems Prime Cost Drivers • Temperature Differential • Drilling Depth • Flow Rate • Network Connection • Generation Plant Petratherm is seeking to optimize the key drive
Slide 10: Heat Exchanger Within Insulator (HEWI) Model
Heat Exchanger Within Insulator (HEWI) Model EGS - engineered geothermal system i.e. underground heat exchanger • Higher Permeability • Chemically Stable • No Potential Radon build up • Lower Risk = Cheaper Power! petratherm
Slide 11: Paralana Work Program
Phase 3 drilling Paralana Work Program 109oC petratherm Temperature measurements indicate 200 degrees C at 3.6km
Slide 12: Paralana Geothermal Energy JV Project
Paralana Geothermal Energy JV Project Key Ingredients for Success – Excellent thermal resource 200ºC at 3600m – Highest mainland heat flow 128mW/m2 – Stable geological formation – drilling conditions – Close proximity to willing customer – Beverley Uranium Mine – off grid prices – Up to $30 M JV wit
Slide 13: Paralana Geothermal Energy JV Project Development Summary
Paralana Geothermal Energy JV Project Development Summary – Spud first well in second half of 2008 – Apply for Federal Govt. drilling funding for 2 well program – second half of 2008 – Apply for Fed Govt. Renewable Energy Fund, 30 MW demonstration -2009 – Drilling second well – 3 to 6 months after f
Slide 14: Paralana Commercialization Plan
Paralana Commercialization Plan petratherm
Slide 15: Madrid Geothermal Projects GDH & EGS
Madrid Geothermal Projects GDH & EGS Geo-Madrid existing well doublet with temperatures of 75ºC, flow rate of 200m3/h 1500m, potential capacity of 8 MWt or 45 GWth/a - Pradillo well 3,400 m at 156 º
Slide 16: Exclusive Cooperative Agreement for geothermal projects in 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 Boiling Springs – Yun
Slide 17: Increasing Shareholder Value
Increasing Shareholder Value • Cost Reduction – HEWI Model - shallower wells reducing drilling costs – Competitive sourcing of plant and equipment – “no ties” to a plant manufacturer – “ fit for purpose” – conventional, lower cost plant • Risk Reduction – Initial project selection – targeting lowest
Slide 18: Summary
Summary • Petratherm’s key strength lies in its approach to “exploration for heat” and its commercial assessment of projects - “location, location, location” – resource, market, permits/stakeholders • The approach has resulted in a portfolio of 11 quality projects in Australia and Overseas – first m
Slide 19: Thank You
Thank You petratherm ASX Code: PTR www.petratherm.com.au Phone: (08) 8274 5000
Slide 20: Overview of Geothermal Energy Industry
Overview of Geothermal Energy Industry • Geothermal Energy Policy in Australia • Engineered Geothermal Systems and Energy Cost Comparisons • Geothermal Energy and Electricity Markets • South Australian Projects • Geothermal Energy Project Economics • Key Challenges for EGS Projects petratherm
Slide 21: Renewable Energy Policy & Geothermal
Renewable Energy Policy & Geothermal • Federal Labor Government Clean Energy Plan to ratify Kyoto, Emissions Trading by 2010, 20% Renewable Energy target by 2020, $500 M Renewable Energy Fund including a $50 M drilling initiative fund • The Australian Geothermal Energy Group (AGEG) – South Australia
Slide 22: Geothermal Energy Cost Comparison
Geothermal Energy Cost Comparison 1600 Brown Coal PF 420MW (CF85%) Electricity Supply Industry Planning Council Brown Coal PF 420MW (CF85%) + GS 1400 • 6.8% Australia’s base-load from hot rocks Black Coal PF 420MW (CF85%) by 2030 Black Coal PF 420MW (CF85%) + GS 1200 • “significant potential impact”
Slide 23: Global Geothermal Energy Installed Capacity in MW
Global Geothermal Energy Installed Capacity in MW Total 10,000 MW (2006)
Slide 24: Geothermal Energy and Electricity Markets
Geothermal Energy and Electricity Markets Australia • Australia has the ideal conditions for EGS – high heat producing granites and a continent that is under compression • Geothermal Energy potential is vast and could meet Australia’s electricity needs for many centuries. The Paralana thermal resour
Slide 25: SA Geothermal Projects
South Australian heat flow SA Geothermal anomaly Pacific Hydro Habanero 1,2 Geodynamics Projects Eden Eden Geodynamics Osiris Proactive Eden Petratherm Yerila 1 • Many players – 33 Proactive Blanche 1 Petratherm Companies, 10 ASX Green Rock Eden Paralana 1B Proactive listed Torrens Regional power gr
Slide 26: Geothermal Energy Project Economics
Geothermal Energy Project Economics • Temperature (differential, quality and type of resource) • Drilling Costs (depth, size, geological formation, availability) • Energy Flow Rates (volume, pressure, energy transfer) • Plant Capital Costs and related efficiencies • Connection and Access to markets
Slide 27: Network Access & Connection
Network Access & Connection • Transmission Costs • Transportation losses Ç • Margin Loss Factor • System Stability Ç Ç • Development Approvals, Ç Ç Licensing, Easements and Permits Ç • Network Capacity at connection point Ç = Wind Farm = Best Wind Resource Ç ÇÇ petratherm Transmission Data Courtesy
Slide 28: Challenges for EGS Projects
Challenges for EGS Projects • Securing a quality site – the three locations – resource, market, permits – optimizing economics in a competitive market – primary project risk reduction • Confirming the quality of the potential resource – temperature differential, stress regime / permeability. • Deep
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