Leveraging strengthening domestic gas markets Bruce Clement, Managing Director Sydney Mining Club 6 November 2014
Agenda About AWE Limited East Coast Gas Markets West Coast Gas Markets Leveraging strengthening domestic gas markets 3
About AWE Limited Australian energy company focused on upstream oil and gas and related energy opportunities Strategy focused on Oil, High Value Gas, and Unconventionals Portfolio of production, exploration and development assets…
AWE positioned for growth Strong operating performance and financial results achieved in FY2013-14 Proactive management of portfolio of quality production, development and exploration assets Technical and commercial strength; early…
East Coast Gas Markets 6
Demand v supply: 2014 - 2020 Source: AWE, BREE Source: AWE, EnergyQuest Excludes Arrow LNG project Cooper Basin and Qld CSG critical to meeting increased demand 7
East coast gas price projections Eastern Australia wholesale gas price projections Source: BREE, Eastern Australian Domestic Gas Market Study, 2014 Potential supply/demand gap reflected in pricing volatility between 2014 and…
West Coast Gas Markets 9
Demand v supply: 2014 - 2020 Source: AWE, EnergyQuest, IMO Source: AWE, IMO Export market to triple between 2014 and 2020 10
West coast gas price projections Forecast Average New Contract Gas Prices (real) for WA Domestic Market Source: IMO, Gas Statement of Opportunities, 2014 Forecast WA market price increase trending towards LNG export parity 11
WA market potential - mining Opportunity for mining companies to reduce energy costs 12
Leveraging strengthening gas markets 13
AWE leveraged to rising gas prices Substantial uncontracted domestic gas position Industry experts forecast the domestic gas price to rise sharply over the next 5-10 years Two-thirds of AWEs Australian 2P gas reserves are…
Senecio and Waitsia initial volumes Table 1. Initial gross 2C Contingent Resources estimates for the Senecio and Waitsia Fields Field Reservoir Interval Original Gas in Place (Bcf) Recoverable (Bcf) P90 P50 P10 P90 P50 P10…