Gas supply and demand in Western Australia Bruce Clement, Managing Director AWE Limited Energy in WA Conference Perth, 27 August 2015
Agenda About AWE Limited Importance of Natural Gas for Western Australia Benefits of a domestic onshore gas industry Perth Basin gaining momentum 3
About AWE Limited Australian energy company focused on upstream oil and gas opportunities Strategy focused on Oil, High Value Gas, and Unconventional Oil and Gas Portfolio of production, exploration and development assets across…
Substantial 2P Reserves & 2C Resources Note: Includes recently announced changes to onshore Perth Basin net 2P Reserves and 2C Contingent Resources announced 21 August 2015 More than 22 years of 2P production (based on current…
Potential to further increase 2P Reserves Note: Includes recently announced changes to onshore Perth Basin net 2P Reserves and 2C Contingent Resources announced 21 August 2015 Ability to convert majority of 2C Resources into 2P…
Importance of natural gas to WA WA energy sources WA domestic gas demand by sector 2% 13% 8% supplying 21% 44% 50% 35% 28% Mineral processing / mining Electricity generation Gas Oil Coal Renewables Industrial /…
Demand v supply: 2014 - 2020 Source: AWE, EnergyQuest, IMO Source: AWE, IMO Export market forecast to triple between 2014 and 2020 8
WA domestic gas supply & price projections WA domestic gas market potential supply capacity forecast Note: Not all projects producing. Forecast capacity, not actual supply Source: IMO, December 2014 Forecast average new…
WA market opportunity- mining Mining industry focused on reducing long term cost base 10
Benefits of onshore gas industry WA is Australias largest consumer of gas by state, with c.50% of WAs energy requirements consuming gas as a fuel source The onshore domestic gas industry provides far ranging benefits to the State,…
Government policy considerations Government policy is critical to the growth and development of the domestic onshore gas industry in WA: o Domestic Australian onshore producers are subject to multiple layers of taxation (Federal…
Perth Basin gaining momentum Highly successful exploration and appraisal program in 2014-15 Waitsia is the biggest onshore conventional gas discovery in Australia in the last 30 years and potentially Australias 4th largest onshore…
Substantial Perth Basin volumes Gross onshore Perth Basin 2P Reserves and 2C Contingent Resource estimates (as at 30 June 2015, announced 21 August 2015) Gross 2P Reserves and 2C Contingent Field Reservoir Interval Resources…
New low cost producer WA long term domestic gas prices Dongara Production Facility forecast to grow over next 5-10 years Onshore Perth Basin will be the low cost producer o Well serviced by existing infrastructure o Lower cost of…