Bow Energy LtdBow Energy Ltd EGM -...
Transcript of Bow Energy LtdBow Energy Ltd EGM -...
Bow Energy LtdBow Energy LtdEGM
John De Stefani CEO
24 June 201024 June 2010
1an S&P ASX300 and S&P ASX200 All Australian Index company Blackwater CSG Field
Disclaimer and Competent Expert
This document has been prepared by Bow Energy Limited (Bow). for the purpose of providing a company andtechnical overview to interested analysts / investors. Any statements, opinions, projections, forecasts or othermaterial contained in this document do not constitute any commitments, representations or warranties by Bowy , p yor its directors, agents and employees. Except as required by law, and only to the extent so required, directors,agents and employees of Bow. shall in no way be liable to any person or body for any loss, claim, demand,damages, costs or expenses of whatsoever nature arising in any way out of, or in connection with, theinformation contained in the document. This document includes certain statements, opinions, projections,forecasts and other material which reflect various assumptions The assumptions may or may not prove to beforecasts and other material, which reflect various assumptions. The assumptions may or may not prove to becorrect. Recipients of the document must make their own independent investigations, consideration andevaluation. By accepting this document, the recipient agrees that if it proceeds further with its investigations,consideration or evaluation of investing in the company it shall make and rely solely upon its own investigationsand inquiries and will not in any way rely upon the document. Bow recommends that potential investors consulttheir professional advisor/s as an investment in the company is considered to be speculative in nature.
Competent Person Statements
MHA ‐ The estimates of gas reserve and resources for the Comet Block (ATP 1025P) and Don Juan CSG Field (ATP 771P) has beenprepared by MHA Petroleum Consultants LLC (MHA) in accordance with the definitions and guidelines set forth in the 2007 Petroleumprepared by MHA Petroleum Consultants, LLC (MHA) in accordance with the definitions and guidelines set forth in the 2007 PetroleumResources Management System approved by the Society of Petroleum Engineers. The reserve statement has been compiled by MrTimothy L Hower Chairman of MHA, together with personnel under his supervision. Mr Hower, who has over 28 years industryexperience, and MHA have consented to the inclusion of the technical information contained in this announcement in the form andcontext in which it appears.
MBA – The estimates of gas in place estimates for the Norwich Park (ATP 1031P), Gunyah Block (ATP 1053P) and Bandanna Project (ATP
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g p ( ), y ( ) j (805P) has been prepared by Mr Doug Barrenger of MBA Petroleum Consultants Pty Ltd (MBA). Mr Barrenger has more than 25 years ofexperience in the petroleum industry and 10 years of experience in the coal seam gas industry.
Bow – Other technical information contained herein is based on information compiled by the Company’s Chief Operating Officer, VicPalanyk, who has more than 15 years experience in coal seam gas.
Investment highlights
• An S&P ASX200 All Australian and S&P ASX300 Indexcompany committed CSG focuscompany, committed CSG focus
• Strategically located CSG acreage adjacent toestablished CSG projects
Key Statistics
280.6 Million Shares
Key Statistics
280.6 Million Shares• Current 3P gas reserves base of 2,360 PJ and
confident of getting to 6,200 PJ by end of 2011
• Strong cash position to deliver planned gas reserve
80.6 o S a es
Market Cap ≈ $330 m
80.6 o S a es
Market Cap ≈ $330 mg p p g
targets and Blackwater Power Project
• Clean asset base with 100% ownership interests inkey CSG tenements
Cash > $75 m
No debt
Cash > $75 m
No debtkey CSG tenements
• Farmed out oil assets with significant acreageholdings in Eromanga and Cooper basins
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Company Overview – Bow’s team
Bow Directors:
H d St k (I d d t Ch i ) i d bli h iHoward Stack (Independent Chairman) – Experienced public company chairman
Ron Prefontaine (ED) – ex Arrow director, technical experience
Stephen Bizzell (NED) – current Arrow ED, commercial and corporate experiencep ( )
Nick Mather (NED) ‐ ex Arrow director, technical and commercial experience
i iSenior Executives:
John De Stefani (CEO) – ex power generation, managing the business
Vic Palanyk (COO) – ex QGC, Anglo, responsibility for operational targetsy ( ) Q , g , p y p g
Peter Harbison (CFO) – ex Arrow, financial management responsibility
Dusan Pribilovic (Engineering GM) – ex Origin, manages gas fields and operations
S T b (E l i S i ) d l d llSam Taubert (Exploration Supervisor) – ex Origin, coordinates exploration drilling
Blackwater CSG Field
Report Card
1500PJ
NET 2P RESERVES (PJ)
7000PJ
NET 3P RESERVES (PJ)
TARGET
1000
1250
1500
TARGET
4000
5000
6000
7000
TARGET
250
500
750TARGET
YTD2 360PJ
2000
3000
4000
Nil YTD114 PJ0
250
2008 2009 2010 2011
Nil
2,360PJ
0
1000
2008 2009 2010 2011
• Bow has delivered growth based on a solid, tangible foundation
• Real prospects of further rapid growth based on Bow’s quality
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• Real prospects of further rapid growth based on Bow’s quality CSG assets and strong demand for its gas
Focused Strategies
Ambitious explorer to integrated energy company
Aggressively grow upstream gas reserves and production
Progress multiple development paths to market:
Domestic power generation: Blackwater Power Project withoptional modular upscaling; opportunity to replicate inNorwich Park and/or undertake larger scale integratedNorwich Park and/or undertake larger scale integratedgeneration developments
Domestic gas supply for industry: significant demand forDomestic gas supply for industry: significant demand for long term gas
Export LNG market in Gladstone: either by way of GSA or via
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p y ydirect or indirect equity participation
Leverage end to end value chain
Value chain delivers higher overall gas price returnValue chain delivers higher overall gas price return
Currently own 100% gas reserves and power station
Objective to own development assets value addingObjective to own development assets, value adding contracts and highly strategic infrastructure assets, either on Bow’s account or in JV
Planning development of major gas pipeline from Bowen Basin to Gladstone for potential gas supply to domestic i d i l d d LNG jindustrial users and proposed export LNG projects
Continue to deliver shareholder growth
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Continue to deliver shareholder growth
Infrastructure to Markets
Victoria Fund Mgt Gas pipeline
Bow Proposed PipelineMoranbah Gas Project / /
Comet and Norwich Park Projects
Bow Proposed Pipeline• Key access to domesticand export markets
• ≈ 250km from Blackwater• Route surveyed
(Arrow/Shell/AGL)
j y• EIS process to begin
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CSG projects with GIP Potential of over 13.8 Tcf
C t CSG Fi ldNorwich Park Projects
PROPOSED EXPORTBlackwater CSG Field
0 50Miles
Bow’s proposed gas
pipeline
Comet CSG Fieldj
6.5 Tcf GIP
EXPORT LNG
FACILITIES
Blackwater CSG Field
Proposed Arrow/AGL Pipeline
4.8 Tcf GIP
Bow Energy Permit
Gas Pipeline
Pipeline
Gunyah Project 1 8 Tcf GIPGas Pipeline
Possible Gas Pipelines
Major Road
Town/City
Qld Gas PipelineBandanna Prospect
0.4 Tcf GIP
1.8 Tcf GIP
LOCATION
Don Juan CSG Field0.3 Tcf GIP
Revised 2010 and 2011 Gas Reserve Targets
Current End 2010 End 2011
Project(all 100% unless stated otherwise)
Certified Reserves Reserve Targets Reserve Targets
3P Reserves(PJ net to Bow)
2P Reserves(PJ net to Bow)
3P Reserves(PJ net to Bow)
2P Reserves(PJ net to Bow)
3P Reserves(PJ net to Bow)
2P Reserves(PJ net to Bow)Bow) Bow) Bow) Bow) Bow)
Blackwater CSG Field (Comet Block)* 1,382 59 1,750 200 1,750 450
Comet CSG Field (Comet Block)** 871 ‐ 871 100 1,000 200
Norwich Park Projects (3 prospects) 1 200 100 2 500 400Norwich Park Projects (3 prospects) ‐ ‐ 1,200 100 2,500 400
Gunyah Project (ATP 1053) ‐ ‐ 200 ‐ 600 100
Bandanna Project (ATP 805) ‐ ‐ ‐ ‐ 200 ‐
Don Juan Project (55%) 107 55 107 55 150 100
* A further 435PJ of 2C resource was certified in the Rangal and Burngrove Coal Measures** A f th 439PJ f 2C tifi d i th R l d B C l M
Don Juan Project (55%) 107 55 107 55 150 100
Total Reserves (net PJ to Bow) 2,360 114 4,128 455 6,200 1,250
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** A further 439PJ of 2C resource was certified in the Rangal and Burngrove Coal Measures
Blackwater CSG Field Pilot wells and next stage 2P upgrade program
Bow’s Initial 2P well program
Bow’s next phase permeability
Proposed power station location
Bow’s existing core holes
Certified 2P Reserve area
BW1BWP8
test wells (2P program)
3P and 2C Reserves Area
(5% of the target area)
Substation and
BWP1 Flare
BW3
BW7
BW2BWP5
BWP7
BWP3
transmission lines
Blackwater Township
BWP2
BWP4
BW5BWP11
BWP1
BWP2
BW4 BW6
4 km1382 PJ3P
435 PJ2C
Deep coalsInterpreteddown-diplimit of field 11
BWP6
Blackwater Power Project – Field Development
CM-3
Bow’s 100% Comet CSG Field
871PJ 3P Gas
LEGENDBow PermitExisting Gas PipelineProposed Gas Pipeline
Certified
Bow Freehold Land30MW Blackwater Power Station &
BW-1
BWP 8
30MW Blackwater Power Station & future hub for field development
Bow’s 12 well CSG pilot and feedstock for
LOCATION
Proposed gas pipeline to Gladstone
BW-2
BWP-8
BW-7BWP-7
Curragh Coal Mine Substation Proposed transmission
line and gas pipeline
and feedstock for Blackwater Power station
to Gladstone
BW-2
BW-3BWP-5
BWP-4
Bow’s 100% Blackwater CSG
Field
path66kV transmission
line connection point
BWP-2
BWP-10
BWP-11
Blackwater
e d1,382PJ 3P and 59 2P
Gas Certified
Blackwater Substation 5 km
ATP1025 Boundary
Blackwater Power Project Utilising a proven power generation model
Bow’s Blackwater 30MW Power project will mirror Arrow’s Daandine Project
Cli t C it L ti O ti l
Pictures are of Arrow Energy’s Daandine Project
Client Capacity Location Operational
Arrow Energy 27.4MWe Export Capacity33.0MWe Installed Capacity Daandine, QLD December 2006
Manufacturer Packager Type Primary fuel
GE Jenbacher Clarke Energy (Aust) Pty Ltd 11x 3.0 Mwe JGS 620 GS‐S.L Coal Seam Gas
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COMET CSG FIELD 2P Drilling Program Underway
ATP 1025
Rangal Coal OutcropCM-2 core hole19m of coalDAF Gas Contents 15-19m3/tTD = 672m
WellBow’s Blackwater CSG Field
Burngrove Coal OutcropTD = 672m
CM-1 core hole22m of coalDAF Gas Contents 10-17m3/tTD = 750m
Bow’s Comet CSG Field
Bow Energy core holes
CMP-1 2P hole
CMP-2 2P hole
Bow Energy 2P holes
CM-3 core hole27m of coalDAF Gas Contents 13-22m3/tTD = 575m
Bow’s Blackwater CSG Field
CMP-3 2P hole
5 km
Norwich Park Prospects (Bow’s 100%) GIP Potential of 6.5 Tcf – Drilling underway
VERMONT PROJECTPrimary targets - Fort
Cooper & Moranbah CM
DYSART PROJECTPrimary target - Rangal CM
Secondary target - Fort Cooper & Moranbah CM
DY-3
VM-1
VM 2Bow Core Hole
Over 52 metres of gassy coals
Vermont Project
Dysart Project
VM-2
VM-3
NW-1
Regional fault
Rangal CM Outcrop
Proposed Bow Core HoleOver 77 metres of gassy coals
Over 62 metres of gassy coals
Norwich Project
NW-2
NORWICH PROJECTPrimary target - Rangal CM
Secondary target - Fort Cooper & Moranbah CM
NW-3
10 kmLOCATION
Bow Energy – Strategic Summary
Largest uncommitted gas reserves in QueenslandLargest uncommitted gas reserves in Queensland
8 CSG projects with 6,200 PJ end 2011 3P gas reserves target
100% ownership of key CSG acreage100% ownership of key CSG acreage
Multiple development paths to market
Bow following disciplined focused strategic path to growth
Building a leading CSG company
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Bow’s on Target
CSG DrillingRest breakCementing
17www.bowenergy.com.auPermeability testing
Starting to log well
Installing an electric drive head