Ptr Minerals Limited · ASX:PTR
Ptr Minerals — Petratherm — Sydney Mining Club (June 2007)
40 slides from Ptr Minerals's conference presentation, Jun 7, 2007
Slide 1: ASX Announcement: Petratherm Uniquely Positioned for Success
Petratherm Ltd 105 -106 Greenhill Road, Unley, 5061, South Australia Tel: +61 8 8274 5000 Fax: +61 8 8272 8141 Website www.petratherm.com.au Email [email protected] A.C.N. 106 806 884 Thursday 7 June 2007 ASX Announcement Petratherm Uniquely Positioned for Success in the Australian and increas
Slide 2: Key points of Petratherm's emerging leadership
In his address, titled ‘Building a Portfolio of Quality Geothermal Energy Projects – Australia and Overseas’ (refer attached and PTR website), Mr Kallis said Petratherm’s emerging leadership in the “hot rock” energy sector could best be summarized by the following key points: • Petratherm’s unique e
Slide 3: Paralana commercialization path and grant
o A $5 million Renewable Energy Development Initiative (REDI) Grant from the Federal Government to assist in the creation of the underground heat exchanger. o A unique and realistic long-term commercialization path that provides the potential for commercial viability at all stages including small sc
Slide 4: Network solutions: radial and meshed transmission
• Petratherm’s two basic network solutions include: o A double circuit 275kV transmission line from Paralana to Port Augusta capable of delivering 520MW into the NEM at Port Augusta. (“Radial network solution”). o A single circuit 275kV transmission line from Paralana to Port Augusta and a single ci
Slide 5: Sydney Mining Club Presentation
petratherm Sydney Mining Club Presentation “Building a portfolio of quality geothermal energy projects – Australia and Overseas” Presented by: Terry Kallis, Managing Director June 2007 Explorer and Developer of Geothermal Energy
Slide 6: Presentation Outline
Presentation Outline • Key Messages • Corporate Overview • Petratherm’s Unique Exploration and HEWI Models • Key Projects – Australia & Overseas • Significant Achievements - 2006/2007 • Economics of Geothermal Energy Generation • Geothermal Energy and Electricity Markets • SA Electricity Market and
Slide 7: 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”. • The approach has resulted in a portfolio of quality projects in Australia and Overseas – first mover in Spain for “Hot Rocks”. • Petra
Slide 8: Corporate Overview
Corporate Overview • Established in 2003 and listed on the ASX in July 2004 • Major shareholder is Minotaur Exploration – 34% • Recent successful capital raising - Placement & SPP, $6.3 M • Shares on Issue - 57,750,000 – Current Price of 85 cents • Market Capitalization of $49 million • $8.3 M in ca
Slide 9: 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 10: Petratherm's Exploration Model
Petratherm ’s Exploration Model Petratherm’s “Shallow Hot Rocks close to Market" “Hot Rocks” are EGS , i.e. Enhanced Geothermal Systems Prime Cost Drivers • Temperature Differential • Drilling Depth • Flow Rate • Network Connection • Generation Plant Petratherm is seeking to optimize the key drivers
Slide 11: Heat Exchanger Within Insulator (HEWI) Model
Heat Exchanger Within Insulator (HEWI) Model EGS - enhance/engineer the geothermal system that is underground heat exchanger • Higher Permeability • Chemically Stable • No Potential Radon build up • Lower Risk = Cheaper Power! petratherm
Slide 12: South Australian Heat Flow Anomaly
South Australian Heat Flow Anomaly Exceptional target for Geothermal Energy 80% higher heat flow than typical Proterozic crust Heat due to : • Thermally Anomalous Granite (TAG) • Radiogenic Iron Oxide (RIO) petratherm
Slide 13: Finding Hot Rocks
Finding Hot Rocks In Australia only 7% of the continent has sufficient well hole data Looking for deeply buried granites (around 4 to 6 kms.) covered with a significant layer (approx. 2 kms.) of good insulating rock . Forward modelling of Geothermal Resource potential based on constrained geological
Slide 14: Petratherm's SA Projects
Petratienmn SSA Projects Callabonna Prominent Hill egizs yy Ferguson Hill ‘~*~ Paralana Arkaroola © / Hot Rock Olympic Dam 2 ~ ‘ :LeighCreek —S— Test Site Existing main grid power transmission lines Broken Hilt | % 7 1 ‘f Port Augusta | Renmark GEL’s Moonta-Wallaroo Adelaide wt Figure 1 area
Slide 15: Paralana Work Program
Phase 3 drilling Paralana Work Program 109oC petratherm Temperature measurements indicate 200 degrees C at 3.6km
Slide 16: Wholesale Renewable Power Prices
Wholesale Renewable Power Price’s Price’s cents per KWh (Aus) Spain 11.4 – 14.5 USA 10 – 11.5 China 8.6 – 9.5 India 7.8 – 10.1 Australia 7.5 – 8.5 petratherm
Slide 17: Renewable Energy Country Attractiveness Indices
Ranking Country All Renewables Renewable Renewables Infrastructure Index Index Energy 1 Spain 69 80 Country 2 USA 67 70 3 Germany 62 56 Attractiveness 4 India 61 66 Indices 5 UK 60 61 6 Italy 58 63 7 France 57 55 8 Portugal 56 63 • Tariffs 9 China 56 59 10 Canada 55 63 • Resource Potential 11 12 Net
Slide 18: Europe - Extrapolated Temperatures at 5km Depth
Europe - Extrapolated Temperatures at 5km Depth Lithuania German basin Eger Cornwall Rhine graben Urach Molasse Pannonian basin Massif central basin Limagne Provence Greek grabens Tuscany Latium Catalonia Turkey Campidano Source Hurtig et al., 1992 modified by GEIE EMC, 2000 petratherm
Slide 19: Madrid Project – Madrid Basin
Madrid Project – Madrid Basin • Tenement Area 300 km2 , located 35 kms NNE of Madrid • Major electricity and water infrastructure, > 5000 MW of capacity • Known low enthalpy aquifer (85oC) resource at 1500m and very high flow rates. • High heat production granites outcropping in the range and likely
Slide 20: Barcelona Project – Valles Basin
Barcelona Project – Valles Basin • Adjoining Tenements located 30 kms NNE of Barcelona • Central to major electricity infrastructure, >2000 MW of capacity • Area of known high heat flow • Local hot aquifer sourcing a 115-130oC shallow reservoir at around 1000 metres • High heat production granites u
Slide 21: China – AP6 Program
China – AP6 Program • Asia Pacific Partnership Approved Project (AP6) with the support of the Chinese and Australian Governments • Over 240 recorded geothermal sites • Conventional Geothermal Potential ~1400 MW • Enormous EGS (Hot Dry Rock) Potential • Hot Water and Electricity Plays in a number of
Slide 22: Petratherm - Key Achievements
Petratherm - Key Achievements • Discovery of world-class heat resource at Paralana, South Australia. • Established an MOU with Heathgate Resources to provide their Beverley Uranium Mine with electricity to meet their growing needs. • Secured approval to investigate China’s Hot Rock potential through
Slide 23: Petratherm - Share Price
Petratherm - Share Price Fed. Govt. $5 Mill. Grant Barcelona Project 6 Mill. Placement Madrid Project Cents (Aus) Beach JV Heathgate MOU / AP6 China Grant Appoint MD Heat Flow Measurement Drilling Starts High Well Temperature petratherm
Slide 24: Petratherm Project Summary
Petratherm Project Summary • Build on the Company’s key strength of exploring for heat and adding project development to its capabilities and seeking to continually lower costs and risks • Continue to expanding its portfolio of quality projects in Australia and Overseas (Spain and China). • Paralana
Slide 25: Economics of Geothermal Energy Generation
Economics of Geothermal Energy Generation 1600 Brown Coal PF 420MW (CF85%) Brown Coal PF 420MW (CF85%) + GS 1400 Black Coal PF 420MW (CF85%) Black Coal PF 420MW (CF85%) + GS 1200 CO2 emissions kg/MWhr Black Coal Supercritical 860MW (CF85%) Brown Coal Gas Combined Cycle 130MW (CF65%) 1000 Gas Combine
Slide 26: Long Run Costs of Renewable Energy Technologies
Long Run Costs of Renewable Energy Technologies • Advantages of Geothermal Energy include: •Large scale base load •Large resources and reserves •Expected to be lowest cost renewable energy source Extract from McLennan Magasanik Associates independent report “Renewable Energy – A Contribution to Aust
Slide 27: Geothermal Energy and Electricity Markets: International
Geothermal Energy and Electricity Markets International • The global renewable energy market (all forms) represents only 4% of electricity production but is growing at 25% per annum. • Geothermal energy has largest technical potential of all renewable sources (source: World Energy Assessment UNPD 20
Slide 28: Geothermal Energy and Electricity Markets: Australia
Geothermal Energy and Electricity Markets Australia • Review of the Energy White Paper and current policy on renewable and low emission energy technologies – Emissions Trading and Renewable Energy • Strong support for geothermal energy due to competitive, large scale, base load potential –SA Govt. P
Slide 29: SA Electricity Market
SA Electricity Market • SA NEM region electricity demand to require at least 600MW of new capacity • Does not include potential increase of over 400MW from Olympic Dam. • Nor the effect of depleting Leigh Creek coal. • Demand requirements will be between 600 – 1,500MW. 2006-07 2007-08 2008-09 2009-1
Slide 30: 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 Proactive Petratherm Blanche 1 Green Rock Eden • Large resources Proactive Paralana 1B Torrens • Exploiting different Region
Slide 31: Geothermal Energy Project Economics
Geothermal Energy Project Economics • Temperature (differential, quality and type of resource) • Drilling Costs (depth, size, geological formation) • Energy Flow Rates (volume, energy transfer) • Plant Capital Costs and related efficiencies • Connection and Access to markets • Operating Costs • Econ
Slide 32: Geothermal Energy Project Assessment & Development Process
Geothermal Energy Project Assessment & Development Process • Key Development Areas include: – Thermal Resource potential and accessibility – Reservoir & Heat Exchanger – Tenement & Land Owner matters – Geothermal Electricity Generation technology – Network Access & Connection – Development Approvals
Slide 33: 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 34: Electricity Market & Network Issues
Electricity Market & Network Issues • Proximity to market – network connection costs – 132kV or 275kV for large scale and/or distant locations • Network Capital Costs – target around 10% to 15% of total project capital costs. • Market constraints – local, regional, interstate transmission and market
Slide 35: Summary – Geothermal Energy Economics
Summary – Geothermal Energy Economics • Geothermal Energy Projects have the potential to provide very cost competitive electricity generation • The Australian NEM is competitive market but it is characterized by loosely interconnected regional markets – many constraints • Economics of Geothermal can
Slide 36: Key Ingredients for Successful Geothermal Project Development
Petratherm’s Key Ingredients for Successful Geothermal Energy Project Development 1. Site Selection – “location, location, location” – resource, proximity/access to market and approvals/permitting. 2. Comprehensive Stakeholder Management. 3. Technology development and integration – above and below g
Slide 37: Paralana Commercialization Plan
Paralana Commercialization Plan petratherm
Slide 38: Paralana Commercialization Plans
Paralana Commercialization Plans • Staged local expansion from 7.5 MW to 30.0 MW (from end 2009) – network capital costs range between 8% and 10% of total capital costs – uniquely positioned with a willing potential customer at “off grid” prices • Realistic large-scale, long term plans over 15 years
Slide 39: Summary
Summary • Petratherm’s key strength lies in its approach to “exploration for heat” and its commercial assessment of projects – understanding the “three locations”. • The approach has resulted in a portfolio of quality projects in Australia and Overseas – first mover in Spain for “Hot Rocks”. • Petra
Slide 40: Thank You
Thank You petratherm ASX Code: PTR www.petratherm.com.au Phone: (08) 8274 5000