NuEnergy Gas Limited · ASX:NGY
NuEnergy Gas — Shareholder Meeting (October 2013)
28 slides from NuEnergy Gas's shareholder meeting presentation, Oct 30, 2013
Slide 1: 2013 Annual General Meeting
For personal use only ABN 50 009 126 238 2013 Annual General Meeting 30 October 2013
Slide 2: Corporate Snapshot
INTRODUCTION Corporate Snapshot For personal use only Shares on Issue / Unlisted Options 281m/9.8m (Ordinary Shares – ASX:NGY) Market Cap at $0.04/Share $11m Gross South Sumatra Prospective Gas Resource – NSAI: 4.2 Tcf * RPS Contingent Resource (3C): 100 Bcf Gross Acreage (Indonesia) 4,819 km2 Indon
Slide 3: Highlights
HIGHLIGHTS For personal use only Gas produced from pilot project #1 now for 6 months with +98% methane and water salinity at circa 2500ppm Pilot Well #2 drilling currently underway (commenced October 2013) – now at 550m ME and ME2 demonstrate favourable geology in the Bukit Asam coal seams MOU
Slide 4: Indonesian CBM Block Overview
INDONESIAN CBM BLOCK OVERVIEW CBM interests in Sumatra 1. Muara Enim PSC total 4,819 km2 • NGY Operator with 40% working interest For personal use only • Partner is Pertamina (60%) the National Indonesian oil company 2. Muara Enim II PSC • NGY Operator with 30% working interest • Partners: Pertamina
Slide 5: Indonesia – Muara Enim PSC
For personal use only INDONESIA – MUARA ENIM PSC 5
Slide 6: Muara Enim PSC - Positive Results
MUARA ENIM PSC - POSITIVE RESULTS Drilling and Development For personal use only • Drilled, tested, logged and cored 2 CBM wells – High permeability – Good quality gas with low impurities – Clean water with low salinity • ME-CBM-02: re-entered using radial jetting, completed as pilot production well
Slide 7: South Sumatra Basin Sweet Spots Identified
SOUTH SUMATRA BASIN SWEET SPOTS IDENTIFIED • New geological model integrates over 200 wells previously drilled in the South Sumatra basin and over For personal use only 200 lines of seismic spanning the tenements • NGY has access to a large number of existing abandoned conventional wells (many of wh
Slide 8: Modelling Based on Seismic & Well Database
MODELLING BASED ON SEISMIC & WELL DATABASE For personal use only 8
Slide 9: Development Area Selection
DEVELOPMENT AREA SELECTION For personal use only 9
Slide 10: Development Plan through POD & HOA
DEVELOPMENT PLAN THROUGH POD & HOA Fast Track Scalable Development For personal use only • Scalable development design & favourable market dynamics ensures potential for rapid up-scaling • Development planning currently underway to substantially augment the pilot project’s CBM gas production up to 1
Slide 11: Indonesia – Rengat PSC
For personal use only INDONESIA – RENGAT PSC 11
Slide 12: Rengat PSC – Potential Resource Upgrade
RENGAT PSC – POTENTIAL RESOUCE UPGRADE • Rengat potential has been significantly For personal use only upgraded through G&G work – JMJ Petroleum have mapped the entire PSC area including the surrounding basin – Four major coal seams mapped to underlie majority of concession area – Over 50 lines of s
Slide 13: Indonesia – Upside Factors
For personal use only INDONESIA – UPSIDE FACTORS 13
Slide 14: LNG from CBM a Real Option in Time
LNG FROM CBM A REAL OPTION IN TIME • Significant coal basins - estimated gas in place with +453 Tcf For personal use only in Indonesia and over 180 Tcf resources in South Sumatra • NSAI estimate of prospective gas resources in NGY Indonesian concessions in excess of 4.2 Tcf • Significant potential i
Slide 15: Attractive Valuation
ATTRACTIVE VALUATION • All Projects exhibit robust economics under conservative base case valuation assumptions For personal use only • Project sensitive to Gas Price & Well deliverability (or well count & cost) – Base assumption of 0.50mmscf/d plateau per well – Nominal well costs are US$1.6m in la
Slide 16: Future Growth Platform – Eastern Africa
For personal use only FUTURE GROWTH PLATFORM – EASTERN AFRICA 16
Slide 17: Tanzania
TANZANIA For personal use only • NGY (70%) completed two JV agreements with Intra Energy Corporation (ASX:IEC) • 3 core well CBM drilling programme commenced in September 2012 • Two further significant CBM licence positions under application with Tanzanian Petroleum Development Corporation (TPDC) •
Slide 18: Malawi
MALAWI • 100% interest in an EPL covering 346km2 in South Malawi - For personal use only covers both CBM & shale gas exploration • Geological studies show EPL to have Coal shales up to 600m thick with high organic content • May 2013 – Airborne Geophysical Survey commenced to determine depth and opti
Slide 19: Conclusion
For personal use only CONCLUSION 19
Slide 20: Pathway
PATHWAY • Finalise first gas sale • Complete 3rd Pilot Project For personal use only • ME Pilot Well #1 • Complete 2nd Pilot Project • Secure Plan of complete in Western Area at ME Development Approval • and gas sales HOA Drilling commenced at • Further expansion in ME Pilot Well #2 Eastern Africa •
Slide 21: Summary
SUMMARY For personal use only • Establishing unconventional gas exploration & production targeting high priced gas markets with significant unmet demand • Immediate access to existing open access infrastructure • JV’s with strong, strategic supportive partners – including Pertamina • Working towards
Slide 22: Appendix
For personal use only APPENDIX 22
Slide 23: NGY South Sumatra & Adjacent Blocks
NGY SOUTH SUMATRA & ADJACENT BLOCKS For personal use only Major Basin Play Potential 23
Slide 24: Attractive Fiscal Terms
ATTRACTIVE FISCAL TERMS For personal use only Profit Share to Contractor (75%- 5 year Exploration period for Attractive PSC Fiscal Terms 78%) tenements (> dec 2014) 24
Slide 25: Management Team – Key Members
MANAGEMENT TEAM – KEY MEMBERS Singapore and Sydney Team For personal use only CEO Christopher Newport COO Simon Gorringe Group Exploration Manager To be appointed Q1 2014 CFO Simon Harvey Drilling Manager Pudjihanto Suwarno (contractor to be replaced by staff in 2014) HR Coordinator To be appointed
Slide 26: Board & Management
BOARD & MANAGEMENT • Core management team has over twelve years of For personal use only 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 th
Slide 27: Thank You
For personal use only THANK YOU 27
Slide 28: Disclaimer
DISCLAIMER • This presentation has been prepared by NuEnergy Gas Limited (“NuEnergy” or the “Company”) and is being provided for the For personal use only sole purpose of providing preliminary background financial, operational and other information to enable shareholders and/or prospective investors