Blue Energy Limited · ASX:BLU
Blue Energy — Shareholder Meeting (November 2013)
27 slides from Blue Energy's shareholder meeting presentation, Nov 28, 2013
Slide 1: Blue Energy Limited Annual General Meeting Presentation
Blue Energy Limited Annual General Meeting Presentation 28 November 2013
Slide 2: Disclaimer and Competent Person Statement
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 which c
Slide 3: Corporate Snapshot
Corporate Snapshot ASX BUL 2P Reserves 55PJ (55 bcf) 3P Reserves 202PJ (202 bcf) Contingent Resource 3,501PJ 3C (3.5 tcf) Cash (as at 30 September 2013) $15 million Acreage (net) ~110,000km2 (27.4 million acres) Employees 8 • Operator of all acreage held • Uncontracted gas reserves • Adjacent to LNG
Slide 4: Scorecard - 2013
Scorecard - 2013 • Extended Lost Time Injury record – 6 years LTI free • No significant environmental incidents • Maiden 2P reserves achieved • Increased 3P reserves by 270% • Increased acreage portfolio by 100% • Reduced operating costs by $2.7 million pa • Farmed into frontier Northern Territory a
Slide 5: Share Price Performance
Share Price Performance • 3 fold growth (peak) in share price from year’s low • 30% growth in share price over last 12 months • Significantly outperformed peers • Core gas assets value increased – 2P and 3P reserves Slide 5
Slide 6: Blue's Strategy
Blue’s Strategy Blue Energy - Pure Explorer Play Oil only developments Identify Acquire Explore Discover Appraise Develop Excess capital returned to shareholders on monetisation of assets $$ $$ $$ • Portfolio diversity and regeneration is key • Exploration skill sets are core strength • Retain opera
Slide 7: Reserve Growth
Reserve Growth • Maiden 2P reserves booked in Bowen Reserve Growth 250 • 3P Reserves increase of 270% 200 • Reserve base extends to cover new 150 PJ sub blocks of ATP814P 100 • Conventional drilling 50 success will add further 0 2009 2010 2011 2012 2013 3P Reserves 2P Reserve Slide 7
Slide 8: Resource Growth
Resource Growth • Contingent resource increased by 27% Contingent Resource (3C) Growth 4000 • Bowen Basin permits 3500 show continued strong growth in 3C 3000 • Surat permits 2500 adjacent to CSG-LNG PJ 2000 permits showing potential 1500 • 2013 drilling in Galilee 1000 will yield further 3C growth
Slide 9: Asset Base
Asset Base Block CSG Oil Gas Shale Area 1P 2P 3P 1C 2C 3C Km2 PJ* PJ* PJ* PJ* PJ* PJ* Galilee ATP813 ? 4,158 43 544 Bowen ATP814 2,236 55 202 124 761 2,854 Bowen ATP817 4,449 Surat ATP819 3,358 Surat ATP854 828 23 49 103 Maryborough 3,358 Cooper ?
Slide 10: Upward Pressure on Gas Prices
Upward Pressure on Gas Prices • Uncontracted gas is increasing in value • Some domestic gas users are lobbying for gas reservation policy • New domestic gas contracts will have an oil price linkage Slide 10
Slide 11: East Coast Gas Supply
East Coast Gas Supply • Domestic gas contracts rolling off 2015-2017 LNG Demand Proposed • Steep demand rise by 2014 Trains • QCLNG now in commissioning phase • Dom gas competes with LNG on price and supply • Uncontracted reserves have LNG Demand Sanctioned Trains increasing value • Gas end users en
Slide 12: Natural Gas Portfolio
Natural Gas Portfolio Proven and potentially productive basins Cooper: 5,357km2 Bowen: 6,685km2 Surat: 5,785km2 Gas Maryborough: 3,358km2 Gas Gas Galilee: 4,158km2 Gas Carpentaria: 7,996km2 Gas Gas Gas Total 33,339km2 (8.24 million acres) Slide 12
Slide 13: East Coast Gas ATP814P - Bowen Basin
East Coast Gas ATP814P- Bowen Basin • Blocks surrounded by Arrow’s Project area • 814P Un-contracted Gas Resources and Reserves • 2P: 55PJ (55bcf) • 3P: 202PJ (202bcf) • 3C: 2,768PJ (2.77tcf) • Intense adjacent activity drives Blue’s gas resource growth Identify Acquire Explore Discover Appraise Sli
Slide 14: ATP814P - Bowen Basin
East Coast Gas ATP814P – Bowen Basin Blue Energy Blue Energy Blue Energy • Great Artesian Basin aquifers are not present • Thick gassy near surface Coal Measure packages • Extractive coal and gas developments adjacent • Untested natural gas potential in the deep section Slide 14
Slide 15: Emerging Gas Province Galilee Basin
Emerging Gas Province Galilee Basin • Pilot production testing flowing gas to the west Coal Mt Isa Development • Resource Estimate Mineral province to Emerging Energy NW demand hub • 554PJ Contingent Resource (554bcf) • 1,143PJ Prospective Resource (1.14tcf) • Energy demand centres developing • Open
Slide 16: Emerging Gas Province Maryborough Basin
Emerging Gas Province Maryborough Basin • Petroleum system identified • Large gas potential • Strategic location • Supply for SE Qld • 150km from LNG demand in Gladstone • Local economy struggling Identify Acquire Explore Slide 16
Slide 17: East Coast Gas Surat-Bowen
East Coast Gas Surat-Bowen • Adjacent to major LNG feed gas supply locations - Fairview and Spring Gully • Export infrastructure to Gladstone passes through block • LNG operators have exploration acreage adjacent Identify Acquire Explore Slide 17
Slide 18: Oil Portfolio
Oil Portfolio • Producing basin Cooper: 5,357km2 Surat: 5,785km2 Total 11,142km2 (2.753 million acres) • Frontier basin Oil Georgina: 21,351km2 Oil Carpentaria: 7,996km2 Oil Wiso: 55,944km2 Oil Oil Total 85,290km2 (21.07 million acres) Slide 18
Slide 19: Oil Portfolio - Cooper Basin
Oil Portfolio - Cooper Basin • Giant proven natural gas basin • Northern flank plays mirror western flank in SA • Active Operators • STO; SXY; DLS; BPT • Multiple Plays/targets • Permian Gas and Shale play • Jurassic Oil and shale Identify Acquire Explore Slide 19
Slide 20: New Oil Frontiers
New Oil Frontiers Earth paleo-reconstruction – Neo-Proterozoic time • Old Australian Basins • Georgina • Wiso • McArthur • Officer • Amadeus • Rodinia supercontinent affinities • Production analogies with Oman and eastern Siberia Source: Modified after USGS Bulletins 2201 C&F; 2146J & 2167. Slide 20
Slide 21: New Oil Frontiers - Wiso Basin
New Oil Frontiers - Wiso Basin • Un-explored basin • Oil and gas potential • Blue is Operator • Shale and structural plays • 3 permits awarded • Native Title required on remaining 6 permits • 4 year Farm in work program • G&G studies • Aero mag and gravity • 2D seismic Identify Acquire Explore Slide
Slide 22: New Oil Frontiers - Wiso Basin
New Oil Frontiers - Wiso Basin • Cambrian and Proterozoic sequence • Correlation with McArthur and Roper Groups of McArthur Basin area • Oil shows in core Identify Acquire Explore Slide 22
Slide 23: New Oil Frontiers - Southern Georgina Basin
New Oil Frontiers - Southern Georgina Basin • Proven Petroleum Systems • Both structural and low perm plays • Large potential – Independent Expert reports • Recent deal flows and activity • Statoil/Petrofrontier Total /Central Petroleum • Adjacent seismic acquisition Oil stained core from Owen 3 (Co
Slide 24: Oil Portfolio Marburg 1 Result
Oil Portfolio Marburg 1 Result W E Top Evergreen Top Precipice Base Precipice Top Clematis Basement Marburg Prospect • Marburg 1 drilled in October 2013 – farmed out the cost of the well. • Encountered good oil shows in the primary target – Precipice Sandstone – confirmed pre-drill model • Indicatio
Slide 25: Why Blue?
Why Blue? • Near Term Value Drivers • East coast gas demand • Blue has uncontracted gas reserves • Blue’s Capital Program • Work programs of LNG driven neighbours • Focussed Strategy - Gas and Oil • Strategic acreage position in hydrocarbon producing basins • Exposure to frontier liquids basins • Op
Slide 26: Forward Activity Plan
Forward Activity Plan 2013 -14 Q3 Q4 Q1 Q2 Funded By ATP814P Sapphire Testing Blue ATP854P Drill Oil Prospect - Marburg Farminee Test Marburg 1 Farminee G&G on conventional gas well Maryborough G&G 1 well (contingent) Galilee Basin 2 CSG Wells Georgina - G&G (on award) Blue Cooper - G&G (on award) B
Slide 27: www.blueenergy.com.au
www.blueenergy.com.au [email protected] Slide 27