AWE Limited Presentation to UBS Conference June 2011
Strategy 2 Grow shareholder returns as an Energy Company 1. Deliver sustainable base business Focus on core assets and optimize production performance 2. Maximise existing asset values Focus on delivery of opportunities near…
Implementing strategy 3 Exploiting operating capability - shale gas and tight gas experience Strengthening balance sheet - increasing cash assets/establishing funding capacity Targeting growth opportunities - exploration in…
Long term reserves ensure continued strong production 4 2P Reserves Project Equity (million boe) Bass Gas 57.5% 37.4 Otway Basin 25.0% 11.3 Cliff Head 57.5% 4.2 Onshore PB 33%-100% 2.9 Tui 42.5% 8.9 Sugarloaf 10.0%…
Sustainability 5 Excellent safety record, single LTI in 2010/2011, covering over 1.3 million man hours Continued strong environmental performance BassGas CO2 sales reducing greenhouse footprint Reputation strong Within…
Onshore Perth Basin (AWE 33-100%) 6 AWE pursuing three elements to gas strategy in Onshore Perth Basin 1. Shale Gas (Hydraulic stimulation of Woodada Deep-1 and Arrowsmith-2) 2. Tight Gas (Hydraulic stimulation of Senecio-2)…
Perth Basin shale play 7 1 million acres (gross) position AWE operates the southern West Australian Domestic Gas Demand and Supply Outlook TJ/d acreage 2,200 2,000 3 shale plays identified 1,800 13-20 Tcf gas in place…
Shale gas fracture stimulations AWE shale targets are below 2,700 metres Fresh water aquifers at present at shallow depths Multiple cemented steel casings in place to secure well and provide barriers to shallow aquifers Fracture…
Arrowsmith-2: shale focussed well 9 Arrowsmith-2 drilling started in May 2011 in EP 413 Extensive coring program completed in the key shale targets Fracture stimulation (Halliburton) planned for September quarter Up to 5…
Arrowsmith-2 (EP 413): Objectives Arrowsmith-2 Arrowsmith- 2 Arrowsmith-2 well is to the SE of the original Arrowsmith-1 well, which flowed Carynginia Shale Gas Target gas on test from the middle Carynginia Shale…
Woodada Deep-1 Frac: Planned Stages and Targets Traditional Woodada reservoir target Stage 3 frac to Limestone tight carbonate evaluate the tight Woodada Stage 3 Exploration Target Carbonate section Woodada Mud log and…
Tight gas opportunity - near term impact 12 Corybas-1 currently flowing 1.3 mmcfgd, from vertical well following frac in 2009 Senecio-2 located 6km SE from Corybas and 8km East of Dongara gas plant Senecio-1 and -2 tested gas…
Conventional gas opportunity 13 Growth in gas production from Redback-2 and Redback South-1 Gas delivery into Synergy gas contract Trapdoor prospect has been matured for drilling in early 2012
14 Sugarloaf AMI (AWE 10% pre royalty) Initial NSA reserves report updated in March 2011 8.6 million BOE (2P) net 17.3 million BOE (3P) net Current production from 13 wells, with further 6 wells awaiting completion and tie-in…
Marathon Oil Purchase (June 1, 2011 announcement) Marathon Oil announced agreement to purchase 141,000 net acres of Eagle Ford shale from Hilcorp Resources for US3.5 billion (400-500 million BOE resource potential) circa US8.70-7.00…
16 Core business operating well Core production business continues to operate within previous guidance Cliff Head-12 workover progressing, with 2010/11 production 6.2 m BOE hydraulic workover unit on CH-A platform 2010/11 revenue…
Summary 17 Strengthened balance sheet - Reduced expenditure - Increased cash position Assets and portfolio management - Technical and risk review Developing Shale Gas position - Production growth in USA and increased operating…
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