Strategy grow shareholder returns through exploration and selective acquisitions Growth 1. deliver base business Sustainability 2. deliver near-field opportunities 3. grow through exploration and Base Business selective…
Long term reserves ensure continued strong production Strong cash flow past 2020
Near field opportunities
Growing in the Bass Basin
Rockhopper side track to test size of discovery TL40-60 Reservoir Marker
Oil and gas discovery at Rockhopper
Tui expansion potential targets extensions to Tui Kahu two firmTui wells in 2009/2010 fast track development
Near-field opportunities support production base
Exploration
Taranaki Basin AWE holds commanding position North Cape oil play initial test Hoki - 1 250 million barrel resource potential four follow up prospects Moki oil play test with Tuatara - 1 in current program 100 million barrel…
North Cape oil play Hoki - 1 will test this new play multiple follow up prospects AWE already holds the follow up potential
Indonesia: three years acreage consolidation coming to fruition Pinnacle Reef oil play offsetting Kodeco development Liyun-1 drilling in 2010 75 million barrel target gas potential Lengo gas discovery 2008 growing acreage
Yemen fractured basement play in Block 7 oil success in permits to west and south Al Measher-1 drilling resource potential 25 million barrels
what is shale a very fine-grained rock a source rock a seal for conventional traps has extremely low permeability up to 8-10% porosity Shale Shale Sandstone (conventional reservoir)
what is shale gas shales that are thermally mature can contain dry gas gas is contained in pore spaces and also by adsorption (gas adheres to rock) very low permeability means gas is immobile without extensive fracture…
US history Mid 2009 Shale Production (mmscfd) 1980s: shale appraisal commenced 1990s to 2000s: new technologies early 2000s: higher gas prices 2000s: Barnett commercial production production today = 9 BCF/d (out of 55 BCF/d…
DFW International Airport, Dallas, Texas largest contiguous Barnett lease (18,000 ac) leased by Chesapeake in Oct 06 US185m paid upfront royalty of 25% 5-rig programme through 2011 50 pads 300 wells 250 mmscfd by 2011
and AWE is pursuing shale gas in the Perth basin AWE acreage contains three shale plays Kockatea Carynginia Itrwin River Coal Measures Thick shales, large potential Robust WA gas market Woodada Deep Coring in February (AWE…