Advent Energy Exploring offshore NSW for Natural Gas. Community Consultation Committee Meeting 1 17 th August 2010

Transcription

1 Exploring offshore NSW for Natural Gas Community Consultation Committee Meeting 1 17 th August 2010

2 About Advent Energy Regulation of exploration for natural hydrocarbon resources Exploring for natural gas Desktop studies Work to date Current site selection Towing/Anchoring Drilling P&A Demobilise Environmental considerations Cetaceans Fisheries Spills

3 Advent Energy Limited Public unlisted entity Major shareholders: MEC Resources Ltd 51.14% (ASX: MMR) 2650 Australian shareholders BPH Corporate Ltd 19.06% (ASX: BPH) Talbot Group Investments 10.42% (Unlisted) Grandbridge Ltd 8.75% (ASX: GBA)

4 Key Management Mr. David Breeze: Executive Director Executive desks, Daiwa Securities, Eyres Reed McIntosh, BNZ North's Involved in the structuring, capital raising & listing of 80+ companies raising over $250M Bachelor of Economics (University of Tasmania); MBA (University of Western Australia), Fellow of the Institute of Company Directors of Australia Mr. Heng Yu: Senior Geologist 24 years in the Oil & Gas Industry Held senior positions in PetroChina Xinjiang Oilfield Company & Schlumberger China S.A. Geological Modelling, Reserves Calculation, correlation & analysis BSc in Geology, Southwest Petroleum Institute, China Mr. Tobias Foster: Corporate Development Manager 10 years in resources industry, previously Operations Manager of geochemical consultancy BSc, University of Western Australia MBA, Curtin University School of Business Ms. Deborah Ambrosini: Executive Director, CFO & Company Secretary Corporate accountant with over 10 years experience in biotech, mining, IT communications & financial services sectors Member, Institute of Chartered Accountants Board of Directors Mr. Goh Hock: Chairman Previous President of Schlumberger Asia. Managed all Asian operations including oil field services & outsourcing 25 years with Schlumberger, held several field & management positions in the oil & gas industry across ten countries in EMEA Mr David Breeze: Executive Director Mr. Eng Hin Tan: Non Executive Director Appointed to several senior management positions within Schlumberger across Asia Initially a Field Exploration Engineer with Schlumberger in Brunei Has held Technical Directorial and Managing Directorial positions several corporations in Asia Ms. Deborah Ambrosini: Executive Director, CFO & Company Secretary

5 Petroleum Offshore Exploration Permit Granted under Offshore Petroleum and Greenhouse Gas Storage Act _petroleum_legislation_regulation_and_guidelines/pages/offshorepetroleumlegislationregulationandguideli nes.aspx Administered by joint authorities Federal Govt Department of Resources, Energy & Tourism (DRET), and NSW Department of Industry & Investment (DII) Work commitments / yearly obligations Farmin with Bounty O&G Operatorship

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7 Petroleum (Submerged Lands) (Management of Environment) Regulations Act 1999 & Environment Protection and Biodiversity Conservation Act 1999

8 Exploring for Natural Gas Desktop studies Seismic review / interpretation Structural analysis; geological interpretations Hydrocarbon source Migration Trap Seal Process of drilling a well

9 Offshore Sydney Basin : Possible Trap Styles 1. Transpressional, wrench related structures 2. Overthrust traps on W margin of Offshore Uplift, include 4 way dip closures Offshore Syncline 3. Mild basin inversion structures Offshore Syncline Offshore Uplift Newcastle Syncline New England Fold Belt 4. Sub-thrust plays along E edge of Offshore Syncline 6. Stratigraphic / from overthrusting structural+stratigraphic (e.g. in W direction identified by AVO) 3805 km 2D seismic including 1460 km of new lines From Maung et al, 1997, and The main source kitchen areas are in the deeper Stephenson & Burch, 2004, acquired in 2005; parts of the Lake Macquarie Trough, Macdonald Preliminary Evaluation of the Petroleum Trough, Offshore Syncline, and Newcastle Syncline integrated for first time with 1991, 1981 seismic Potential of Australia s Central Eastern Margin (GA12988 ) (Santos, 1987; Alder et al., 1998) interpretation confirms Baleen structure and identifies Structural traps are believed to be widespread with Late new Fish prospect. 5. Extensional, down to basin margin normal fault bound blocks (E flank of Offshore Uplift) Permian and Late Triassic anticlines and fault traps combined with Tertiary rejuvenation of older structures thought to be the major plays. (Stewart and Alder, 1995) It is generally assumed that maturation and migration began relatively early and hence early structures are favoured as hydrocarbon traps (Stewart and Alder, 1995)

10 Offshore Sydney Basin: Swath Survey 2006 D. Schumacher: Hydrocarbons seep in large concentrations in basins actively generating hydrocarbons or that contain excellent migration pathways Pockmark over 282,000m 3 Image courtesy Ron Boyd, University of Newcastle

11 Offshore Sydney Basin: Swath Survey 2006 Wikipedia.org: Methane is a relatively potent greenhouse gas. Compared with carbon dioxide, it has a high global warming potential of 72 (calculated over a period of 20 years) or 25 (for a time period of 100 years).[2] Methane in the atmosphere is eventually oxidized, producing carbon dioxide and water. As a result, methane in the atmosphere has a half life of seven years.

12 Two main reasons for drilling a well: 1 Exploration purposes to confirm the contents of a reservoir rock 2 Appraisal / development purposes to create a conduit through which the hydrocarbons can reach the surface

13 Types of Drilling Rigs Category: Floating Type: SEMI-SUBMERSIBLES SUBMERSIBLES (water depth is determined by weight of riser and anchoring method)

14 Ocean Patriot under tow from Cape Town (presently in Victoria)

15 NOTE anchor chains Category: Floating Type: SEMI-SUBMERSIBLES

16 Site Selection

17 Site Selection

18 Site Selection

19 Site Selection Great White and Marlin Drilling Candidate Shallow Horizon A vast, gently eastward dipping stratigraphic prospect 2.5 Tcf gas and 62 MMbbl condensate with 19% PoS Seismic Cross Section WD:140m The main reservoir targets are interpreted Tertiary sandstones Great White:390m Excellent migration pathways observed on seismic data and seismic velocity reduction associated with the prospects Marlin prospect is a large stratigraphic feature which conceptually is considered to be analogous with producing fields located in the prolific offshore Campos Basin off Brazil Marlin:530m Top Permo Triassic: 640m TD:800m B5 05 (Depth) 19

20 Ris er B O P 8 ½ gas investigation pilot hole to 20 casing point at 310 RT Drill 36 hole to 213m, Length=45m 30 Conductor to 213m Drill 26 hole from 213 to 310m 20 Surface casing to 310m 8 ½ Evaluation Pilot Hole to 350m Open hole to 17 ½ Intermediate Casing to 350m 8 ½ hole to TD Length=476m TD 826mRT/800mSS

21 Great White & Marlin Baleen Abalone & Abalone Deep South Fish Abalone Great White Marlin Abalone Deep Paleozoic Prospects

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28 Gas Market in NSW New South Wales is heavily reliant on coal fired energy generation Pressure mounting to switch to environmentally cleaner production 34% of all Australian CO 2 emissions originate from 12 current coal fired power stations Natural gas now has greater political backing than coal in NSW Natural gas produces 65-70% less emissions than brown or black coal Fewer particulates & contaminants in gas compared to coal or oil The State Government of NSW intends for gas to be the fuel to plug electricity shortfalls & reduce emissions regionally State Government has taken action by: Approving plans for two new 2000MW power stations Calling for increased private investment in gas projects Promoting exploration ventures over unreliable renewable energy sources Power Intensive Industries, i.e. aluminium smelters must source long-term, competitively priced energy A consistent, reliable, uninterrupted supply of less polluting gas is very attractive to bulk buyers in Power Intensive Industries 28

29 Domestic Gas Market Forecasts To feed domestic demand and exports, gas output is expected to quadruple over 20 years, growing at 6.7% annually Gas-fired stations are expected to generate 33.4% of the Australia s power by , up from just 21.6% Australian Domestic Gas Market Australia s Primary Energy Consumption, & Prohibitive pipeline construction & transmission costs limit trans-australian trade Gas collected from each basin is principally sold into the nearest available market Outlook to 2030 for the Australian Gas Market Core Energy Group forecasts that by 2025, annual demand along Australia s East coast will be approx.1tcf/year East Australia is a bilateral gas market with a number of large suppliers & customers, historically extending contracts for up to 15 years From 2015, many of these contracts expire, creating an opportunity for new supply arrangements Source: Australian Bureau of Agricultural & Resource Economics