AGL Energy Limited · ASX:AGL
AGL Energy — Corporate Update (December 2010)
22 slides from AGL Energy's corporate update, Dec 13, 2010
Slide 1: ASX statement: presentation to Citibank
AGL Energy Limited Level 22, 101 Miller St Locked Bag 1837 T: 02 9921 2999 ABN: 74 115 061 375 North Sydney NSW 2060 St Leonards NSW 2065 F: 02 9921 2552 For personal use only www.agl.com.au ASX statement 13 December 2010 Attached is a presentation to be made this afternoon by AGL’s Group General Ma
Slide 2: The CSG Opportunity
For personal use only The CSG Opportunity Mike Moraza | December 2010 | AGL External
Slide 3: Coal seam gas in Australia
2 For personal use only Coal seam gas in Australia. » The CSG Industry: Impact and Opportunity December 2010
Slide 4: Coal seam gas (CSG)
3 Coal seam g gas ((CSG)) For personal use only › Naturally occurring methane associated with coal › Generally 600-1,000m below ground › Minimal processing and is sold as natural gas › Abundant in eastern Australia: » 81% of 2P gas reserves; » 31% of gas sales, >90% of Queensland sales › ~3,000 dril
Slide 5: CSG – the economic benefit
4 CSG – the economic benefit For personal use only › Industry sources have estimated Australia’s total in-ground CSG resources to be 150-250 trillion cubic feet › One trillion cubic feet of gas is considered to be enough to power a city of a million people for 20 years¹ › Size of the resources + eve
Slide 6: CSG and the environment
5 CSG and the environment For personal use only › Gas-fired power stations emit 50-70% less greenhouse gas emissions than existing g coal-burning gpplants¹ › Electricity generated from coal » Australia (85%), China (80%), India (70%) ¹; » LNG exports – a substitute for coal fired generation 1 : see
Slide 7: AGL's CSG projects
6 AGL’s CSG projects p j For personal use only › Camden » Commenced C d 2001 2001; » 65 kilometres south- west of Sydney; » P Produces d 6% off NSW’s NSW’ gas requirement › 3 CSG exploration projects: j t » Hunter region; » Gloucester basin; » Galilee basin Enclosed Camden Well » The CSG Opportunity
Slide 8: Water management
7 For personal use only Water management. » The CSG Industry: Impact and Opportunity December 2010
Slide 9: CSG and water
8 CSG and water For personal use only › Highly regulated industry - at state and federal levels › Both the industry and AGL need to take a proactive and precautionary approach › AGL’s CSG operations are managed so as to: » Protect beneficial uses of shallow aquifers » Minimise our footprint and fit
Slide 10: CSG and water
9 CSG and water For personal use only › Water is an inevitable by-product of mg/L Total Dissolved Solids CSG production p oduct o 40,000 › Produced water volumes 35,000 » Low in the Sydney-Gunnedah basins (NSW); 30,000 » Higher in the Bowen-Surat-Galilee basins (QLD) 25,000 › Beneficial reuse option
Slide 11: AGL's CSG operations and water
10 AGL’s CSG operations p and water For personal use only › Every CSG well drilled by AGL has steel casingg cemented in p place,, sealing it from any possible connectivity between shallow aquifers and water contained in coal seams › Typically, there are 100s of metres of impermeable rock between sha
Slide 12: AGL's CSG operations and water: dewatering type curves
11 AGL’s CSG operations p and water For personal use only Dewatering type curves 2 500 2,500 e (bbl/d) NSW wells produce far less water than QLD wells 2,000 ction rate 1,500 1,000 , Watter produc 500 0 1 2 3 4 5 Production year Camden Gloucester Hunter Bowen - Northern Bowen - Comet Ridge Surat » Th
Slide 13: AGL's groundwater monitoring programs
12 AGL’s g groundwater monitoring gpprograms g For personal use only › AGL monitors to ensure there are no adverse impacts on water levels/water quality in shallow aquifers that are used by local water users › Different basins/geologies require a tailored approach because of the variable groundwater
Slide 14: Case Study: AGL Hunter Gas Project groundwater investigation
Case Study: AGL Hunter Gas Project groundwater 13 investigation est gat o and a d monitoring o to g report epo t For personal use only Program objectives: › Provide id more iinformation f i on groundwater in the Broke area by determining whether th aquifers the if and d deeper d coall seams are conn
Slide 15: Case Study: AGL Hunter Gas Project groundwater investigation
Case Study: AGL Hunter Gas Project groundwater 14 investigation est gat o and a d monitoring o to g report epo t For personal use only › Developed in consultation with members of the Bulga Community Consultative Committee; › Endorsed by the peer reviewer (Prof Garry Willgoose from Uni of Newcastle);
Slide 16: Fracture stimulation and BTEX
15 For personal use only Fracture stimulation and BTEX. » The CSG Industry: Impact and Opportunity December 2010
Slide 17: CSG hydraulic fracture stimulation
16 CSG hydraulic y fracture stimulation For personal use only › Technology used to c ease the increase t e flow o of o gas › The process essentially is: » Fluid is pumped into a formation through perforations » Fracturing occurs on either side of the well » Once fracturing is created sand is pumped
Slide 18: CSG fracture fluid additives
17 CSG fracture fluid additives For personal use only › Water › Sand › Gelling agents (viscosifiers) › C Crosslinkers li k › Surfactants (option) › Buffers › Breakers › Microbiocides › Nitrogen » The CSG Opportunity » December 2010 » AGL External
Slide 19: The fracture stimulation industry
18 The fracture stimulation industry y For personal use only › There have been over 1 million treatments worldwide over the past 60 years › Zonal isolation is the key objective (cement steel casing and proper (cement, procedures – which are all regulated by proper agencies) › Service companies striv
Slide 20: What is BTEX?
19 What is BTEX? For personal use only › BTEX refers to the group of compounds: benzene, toluene, ethylbenzene, and xylene: » Benzene is a volatile organic compound used in plastics, paints, dyes, and cosmetics; » Toluene is used as a solvent for paints, oils; » Ethylbenzene is mostly used in gasoli
Slide 21: Future industry challenges
20 For personal use only Future industry challenges. » The CSG Industry: Impact and Opportunity December 2010
Slide 22: Future Industry Challenges
21 Future Industry y Challenges g For personal use only › Education › Increased d costs off gas production › Increased regulation g › Managing land use conflict › Managing g g by-products y p Ensign Rig 67 – ADR 200: automated and silenced to work in a semi urban area The CSG Opportunity » December