Blue Energy Limited · ASX:BLU
Blue Energy — QUPEX 2016
21 slides from Blue Energy's conference presentation, April 2016
Slide 1: 1
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Slide 2: Legals
Legals 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
Slide 3: The World Needs More Energy
THE WORLD NEEDS MORE ENERGY
Slide 4: The World Will Use More Gas
THE WORLD WILL USE MORE GAS Source: BP Energy review 2016
Slide 5: A Billion People Without Power in 2030
A BILLION PEOPLE WITHOUT POWER IN 2030
Slide 6: Qld Is Bringing More Energy to Asia
QLD IS BRINGING MORE ENERGY TO ASIA • CSG to LNG - a world first • Qld is now a supplier of clean energy to Asia • Qld has a new industry which needs people with new skills • LNG will increase Qld’s royalty stream • Qld liquefaction represents ~6% of global LNG production capacity
Slide 7: Benefits to Queensland from Gas
BENEFITS TO QUEENSLAND FROM GAS The CSG-LNG industry is transformational for Qld In 2014/15 gas development in Qld yielded • $10.6 billion in direct expenditure • $5.09 billion in direct and indirect salaries and wages • 5,268 direct jobs • 64,132 indirect jobs • 3,587 businesses supported • 196 Com
Slide 8: Regional Transformations
R E G I O N A L T R A N S F O R M AT I O N S
Slide 9: Benefits to Queensland from Gas: Qld Regions
BENEFITS TO QUEENSLAND FROM GAS Qld Regions • $238 million to landholders as compensation (up to 30 June 2015) • $495 million in new community infrastructure • Supply of treated CSG water • Taking pressure off critical agricultural aquifers • Providing ability to diversify cropping • Supplementing t
Slide 10: LNG Has Changed the Gas Market
LNG HAS CHANGED THE GAS MARKET
Slide 11: East Coast Gas Demand
EAST COAST GAS DEMAND A Cartoon of the Next 20 Years 40,000 PJ Surat, Bowen Cooper ? 10 - 20 yrs Cum Gas Demand 30,000 PJ 5 – 10 yrs 20,000 PJ Surat & Bowen 0 - 5 yrs Otway, Cooper, Surat 10,000 PJ Bowen, Gippsland 2020 2025 2030 2035
Slide 12: Blue Is Well Positioned
BLUE IS WELL POSITIONED • Acreage close to domestic and potential LNG export infrastructure (Moranbah) • NSAI certified Reserves 71 PJ 2P Reserves 298 PJ 3P Reserves 1,282 PJ 2C+3P ~4,000 PJ 3C • Operatorship and 100% equity
Slide 13: ACCC East Coast Gas Inquiry
A C C C E A S T C O A S T G A S I N Q U I RY ACCC sees a “Triple Whammy” for the East Coast Gas Market • East Coast LNG has significantly disrupted domestic gas market • Oil price free fall has impacted on upstream sector activity - investment in the search for new supply is at risk • Regulatory unc
Slide 14: Gas Is Vital to Australia's Future
S O I F G A S I S V I TA L T O A U S T R A L I A’ S F U T U R E ….. where is the next tranche of gas going to come from? We need more exploration (not less) …..and Government’s role is to facilitate exploration and production
Slide 15: The Exploration Reality in Qld
T H E E X P L O R AT I O N R E A L I T Y I N Q L D Greenfield exploration drilling has fallen off a cliff
Slide 16: Why No Drilling?
WHY NO DRILLING? THE CHALLENGES TO GAS SUPPLY Can we keep the trains full for 30+ years?
Slide 17: Access to Land
ACCESS TO LAND The Crown owns the subsurface resource rights in Australia The State controls the release of land for exploration – it decides where and when explorers can explore However, The Qld Government currently does not Advocate the case for energy exploration with communities Provide expedite
Slide 18: Time to Production
TIME TO PRODUCTION If a block of ground was requested for gazettal in Qld today……. it would take about 14 years to get commercial gas production (assuming geological success) Qld Petroleum Exploration well count (from GSQ) 180 160 140 120 100 Shale gas wells 80 Conventional wells 60 CSG wells 40 20
Slide 19: Social Licence Risk
SOCIAL LICENCE RISK Oil and Gas Operators always aim to add value to their communities Oil and Gas Operators are acting on behalf of the State • The State does not issue social licences with the grant of any tenure - yet Government demands Companies have a valid social licence • Only resource tenure
Slide 20: What of the Future?
W H AT O F T H E F U T U R E ? The Challenge • To keep a healthy exploration sector and find new gas resources • A Regulatory system aiding discovery and production of energy • To better explain the benefits of this industry to communities • An Energy Vision for Australia that plays to our strengths
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