for personal use only - asx2011/11/23 · asx code : coi 23 this document has been prepared by...

www.cometridge.com.au ASX Code : COI

23 November 2011 - Brisbane

Galilee Basin Coal & Energy Conference Developing a New World Scale Energy Province in Central Queensland

Comet Ridge Limited - Managing Director’s Presentation

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Contents

Area of Operations

Basin Overview

Comet Ridge Position

Key Achievements

Resources Booked

Further Resource Potential

Gas Pricing and Volumes

Domestic Power

Export LNG

Commercial Options

Responsible CSG

Galilee Basin Community

Typical Core Well Design

Local Agricultural Community

Further Information

Wrap Up

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Technical

Commercial

Community

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Comet Ridge - Area of Operations

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Presentation today focusing on the Galilee Basin

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Technical

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Galilee Basin covers a large part of

central Queensland

― Located favourably in terms of Gladstone LNG

& central Queensland power requirements

Conventional Oil and Gas exploration

has occurred since 1960s

― Relatively few wells drilled

― No commercial oil and gas success to date

Basin Overview

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Galilee Basin is extremely large & has potential to deliver large volumes of natural gas

Permian aged coals cover the basin

Potential coal seam gas volume is enormous

Exploration/Appraisal for coal seam gas

underway for past 19 years however more

drilling focus in past 2 years

Most of the basin is likely to be explored for

CSG but only parts of the basin may be

suitable for commercial gas development

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Comet Ridge blocks ATP 743P & 744P

― 12,991 km2 (3.2 million acres)

― 286 km from NW to SE corner

― Comet Ridge equity 100% - full upside exposure

Comet Ridge Position

Coals over significant area of Queensland to be explored

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Existing conventional

exploration wells

from 1960s to 1980s

confirm significant

coals

Eastern basin selected

― Coals range from

shallow to deep

(east to west)

― Eastern edge closer to

largest potential gas

markets

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Blocks awarded Sep/Oct 2009

― including Qld Govt environmental approvals

Late 2009 to early 2010 - five core

holes drilled

― Total drilled section 5010m

― Coal thickness ranged from 16m to 24m with

up to 22m of shale

― Over 1000m core cut & 10 drillstem tests run

― Significant laboratory coal analysis

― GPA Av gas content 4.3 m3/t (high 7.3 m3/t)

2D seismic survey completed 4Q 2011

― 252 km line data

― very good quality data

Data will enable imaging of Gunn

Project Area (GPA) structural features

― A key input for well positioning

Key Achievements

Wells plus seismic data gives an excellent platform to move forward towards pilot scheme

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Galilee Basin Significant Independent Resource Booking Nov 2010

Resources Booked

Comet Ridge Limited - Net Recoverable Resources

Galilee Basin booked Contingent Resource volumes are already significant

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Significant additional resource potential exists in Comet Ridge blocks

― Well and seismic focus mostly in Gunn Project Area in southwest

Additional exploration required over remaining wide area

Intent to move resources to reserves category in Gunn Project Area (GPA)

Simultaneously look to define further resources outside of GPA

Further Resource Potential

Significant further resource upside exists

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Commercial

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Historically, Eastern Australia has had some of the cheapest gas in the

world

― Due to relatively small market size in comparison to reserves

― Cheap gas and cheap coal resulted in cheap electricity

Gladstone export LNG schemes have significantly shifted the market

dynamic for gas in Eastern Australia

― LNG schemes provide linkage to world oil and energy prices and provide substantial gas

market

Eastern Australian gas prices have already moved up and the market

expects will continue to move up

― Just a matter of how much and how quickly

― Short term ramp gas price concerns seem to be diminishing

Gas Pricing & Volumes

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Eastern Australian gas prices are forecast to increase to $6 to $8 per GJ

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Gas is a clean base load option for

power

Natural Gas is currently supplying

nearly 20% of Queensland’s power

needs

― This proportion is likely to increase

significantly

New gas fired power plants recently

announced for Ipswich and

Gladstone

― Up to 3000 MW

Central Queensland will need

substantial incremental power over

the next several years

Domestic Power

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Natural Gas will play a big part in power generation

expansion into the future

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Three large LNG schemes are now under

construction on Curtis Island near Gladstone,

with a fourth project likely

At least five processing trains will produce over

20 Million tonnes per annum of LNG,

commencing in 2014, with incremental project

economics driving further expansion aspirations

Ultimately, this LNG will primarily go to Asia

where Natural Gas will provide a cleaner source

of energy

― Established long term buyers Japan, South Korea and

Taiwan

― Emerging buyers China, India, Singapore, Malaysia, Chile

and others

Export LNG

Galilee Basin well positioned to supply expansion gas

to Gladstone LNG projects

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Coal mining precinct down our block edge

Two stage approach to commercialisation of

Comet Ridge Galilee Gas Resources

― Stage 1: Power supply to nearby coal mines

or electricity network

― Stage 2: Gas supply to Gladstone

Stage 1: Power demand per coal mining

project estimated at 200MW each

― 5 projects x 200MW = 1,000 MW demand

― Powerlink are planning to extend 275kV

transmission line west from the Lilyvale

substation to Alpha and Kevins Corner

― This transmission line may be extended north

from Kevins Corner to the Adani project, along

ATP 744P permit boundary

Stage 2: Gas supply to LNG projects at

Gladstone is expected in longer term

Produced water may be re-injected or for

beneficial use or for coal washing

― subject to environmental (DERM) approval

Comet Ridge Commercial Options

Coal Mining Projects

Hancock/GKV Coal: - Alpha - Kevins Corner

Waratah Coal

Vale

Adani

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Community

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CSG industry has been operating in Queensland for >10 years

CSG industry in Eastern Australia is one of the most heavily regulated

industries in Australia

― APPEA suggests more regulated than the nuclear industry

― Queensland has established significant new reporting, regulation and legislation

CSG explorers and producers need to work in an increasingly complex

regulatory system

Queensland Legislation currently in effect (or being finalised) that places

requirements on CSG companies:

― Petroleum & Gas Act 2004

― Environmental Protection Act 1994

― Aboriginal Cultural Heritage Act 2003

― Nature Conservation Act 1992

Responsible CSG Exploration & Development

― Water Act (Qld) 2000 & Commonwealth (2007)

― Strategic Cropping Land Bill

― Wild Rivers Act 2005

― Land Protection (Pest & Stock Route Management)

Act (2002)

Comments from some commentators, that CSG is an unregulated industry, are

false and misleading

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Cultural Heritage Management Plans successfully in place with three groups

Galilee Basin Operators Forum undertaking detailed basin-wide aquifer study

― www.gbof.com.au

Engagement and information sharing with local councils is ongoing

― Central West Remote Area Planning & Development Board (RAPAD)

― Mt Isa to Townsville Economic Development Zone (MITEZ)

― Direct Council interaction

Interaction with community positive

Seismic & drilling impact negligible

Galilee Basin – Community

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― Seismic acquired along existing

roads and firebreaks where

possible

― Drilling sites rehabilitated back to

natural state after wells plugged

with cement and abandoned

― Site pictured (right) is

Hergenrother 1 well ten months

after drilling showing planned

revegitation underway

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East Galilee Basin – Typical Core Well Design

Betts Creek Coals sit well below Great Artesian Basin units

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Local Agricultural Community

Entire Comet Ridge exploration area covers only 54 landowners / families

Prior to finalising drilling or seismic plans, Comet Ridge seeks landowner input & advice

Access planned around local

roads, tracks and firebreaks

We allocate sufficient time to:

― Explain our forward plans

and our business

― Answer questions & discuss

any concerns

― Seek to understand the

landowner’s business and

requirements

― finalise compensation

agreements & documentation

We understand that we are

judged more on what we do

than what we say

We have shown respect and without exception, have received respect in return

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Many unsubstantiated claims and myths exist in the media about CSG

exploration and production

Comet Ridge believes each stakeholder should form their own views

based on facts and should ask for claims to be substantiated

Comet Ridge recommends the following sites for further information:

― www.cometridge.com.au

― www.derm.qld.gov.au/environmental_management/coal-seam-gas/vodcast.html

― www.csiro.au/news/coal-seam-gas.html

― www.appea.com.au

― wewantcsg.com.au

Websites from the major LNG proponents:

― www.santos.com.au

― www.santoswaterportal.com.au

― www.glng.com.au

― www.aplng.com.au

― www.qgc.com.au

Further Information

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http://www.cometridge.com.au/http://www.derm.qld.gov.au/environmental_management/coal-seam-gas/vodcast.htmlhttp://www.derm.qld.gov.au/environmental_management/coal-seam-gas/vodcast.htmlhttp://www.derm.qld.gov.au/environmental_management/coal-seam-gas/vodcast.htmlhttp://www.derm.qld.gov.au/environmental_management/coal-seam-gas/vodcast.htmlhttp://www.derm.qld.gov.au/environmental_management/coal-seam-gas/vodcast.htmlhttp://www.csiro.au/news/coal-seam-gas.htmlhttp://www.csiro.au/news/coal-seam-gas.htmlhttp://www.csiro.au/news/coal-seam-gas.htmlhttp://www.csiro.au/news/coal-seam-gas.htmlhttp://www.csiro.au/news/coal-seam-gas.htmlhttp://www.appea.com.au/http://www.wewantcsg.com.au/http://www.santos.com.au/http://www.santoswaterportal.com.au/http://www.glng.com.au/http://www.aplng.com.au/http://www.qgc.com.au/


Summary

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100% interest in both ATP 743P &

ATP 744P in eastern Galilee Basin

― Substantial acreage position covering

12,991 km2

1870 PJ of 3C Contingent Resource

certified in Gunn Project Area in Nov

2010

― Considerable upside yet to be tested

2D Seismic acquisition programme

completed October 2011

Commercial development options are

emerging in power as well as LNG

Wrap Up

2012 focus:

― Interpret seismic, drill up to four wells in Q2/Q3 in Gunn Project Area to help determine optimal Pilot

location

― Commence detailed planning for initial Pilot Project in 2013

― Progress commercial options, initially in power generation (or gas supply for)

Gunn Project Area 3C Gas Resources are material in size (1870 PJ) and 100% COI

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This document has been prepared by Comet Ridge Limited to provide existing and prospective

investors in Comet Ridge Limited with an update on the Company and its operations.

This presentation, including the information contained in this disclaimer, does not constitute an offer,

invitation or recommendation to subscribe for or purchase any security and neither the presentation,

disclaimer nor anything contained in the forms the basis of any contract or commitment. This

presentation does not take into account your individual investment objective, financial situation or

particular needs. You must not act on the basis of any matter contained in this presentation, but must

make your own assessment of the Company.

No representation, express or implied, is made as to the fairness, accuracy, completeness or

correctness of information contained in this presentation, including the accuracy, likelihood of

achievement or reasonableness of any forecasts, prospects, returns or statements in relation tot future

matters contained in the presentation (“forward-looking statements”). Such forward-looking statement

are by their nature subject to significant uncertainties and contingencies and are based on a number

of estimates and assumptions that are subject to change (and in many cases are outside the control of

Comet Ridge Limited and its directors) which may cause the actual results or performance of Comet

Ridge Limited to be materially different from any future results or performance expressed or implied by

such forward-looking statements.

To the maximum extent permitted by law, none of Comet Ridge Limited, or related corporations,

directors, employees, or agents, nor any other person, accepts any liability, including, without

limitation, any liability arising from fault or negligence, for any loss arising from the use of this

presentation or tis contents or otherwise arising in connection with it.

General Disclaimer

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Comet Ridge Limited

Address

Level 1

283 Elizabeth Street

Brisbane Queensland 4000

Telephone: +61 7 3221 3661

Facsimile: +61 7 3221 3668

Email: [email protected]

www.cometridge.com.au

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for personal use only - asx2011/11/23 · asx code : coi 23 this document has been prepared by...

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