Presentation to GM-USG Annual Conference August 2016 Include all ELAs www.lcke.com.au Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation 1
Disclaimer This presentation has been completed by Leigh Creek Energy Limited. It may contain forward looking statements that are subject to risk factors associated with the energy industry. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of changes in underlying assumptions which could cause actual results or trends to differ, including but not limited to: price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates amongst other items, and the cumulative impact of items. Mineral Resource Statement Estimates of Mineral Resources reported in this announcement were initially reported and released to the ASX on 8 December 2015. Leigh Creek Energy Limited is not aware of any new information or data that materially affects the information included in the 8 December 2015 announcement and all the material assumptions and technical parameters underpinning the estimates in that announcement continue to apply and have not materially changed. Gas Resources Statement Gas Resources reported in this announcement were initially reported and released to the ASX on 8 January 2016. Leigh Creek Energy Limited is not aware of any new information or data that materially affects the information included in the 8 January 2016 announcement and that all the material assumptions and technical parameters underpinning the estimates in that announcement continue to apply and have not materially changed. All Estimates are based on the deterministic method for estimation of petroleum resources. www.lcke.com.au Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation 2
Introduction and Overview Presently obtaining all necessary regulatory approvals to allow ISG demonstration targeted for Q1 2017. Seeking to initially develop an electricity and methane gas production facility Actively engaged with potential gas and electricity buyers. The South Australian State Government is supportive of ISG and has developed a clear legal and regulatory framework to guide ISG operations. Leigh Creek has significant existing infrastructure in place. → SA electricity market is experiencing intermittent grid instability, volatile pricing and power outages. → The market for gas in eastern Australia is tight with shortages forecast and new Image: LCEP Laydown area July 2015 supply options required to meet demand forecasts www.lcke.com.au Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation 3
Leigh Creek Energy Project (“LCEP”) The LCEP is located at Leigh Creek, 550km north of Adelaide, over a former coal mine area and will develop coal resources that are unable to be economically accessed by open-cut mining. Moomba Leigh Creek Energy’s PELAs ARP TriEnergy PELAs 100% owned by Leigh Creek Energy Limited PELA 643 PELA 582 Lyndhurst PELA 647 Leigh Creek Situated on PEL 650 in the area of the PELA 644 PEL 650 existing Leigh Creek open cut mine Pt Augusta Independent JORC coal resource of Whyalla 377Mt Lock PELA 649 Cummins Independent PRMS ISG gas resource: Pt Lincoln Adelaide Category 1C 2C 3C Legend ISG Resource 2,748 PJ 2,964 PJ 3,303 PJ Rail Gas Pipelines Image: LCEP Laydown area July 2015 ARP TriEnergy www.lcke.com.au Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation 4
In- Situ Gasification “ISG” www.lcke.com.au Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation 5
ISG Worldwide Experience Carbon Energy Bloodwood Commercial Operations: Creek Project Angren, Uzbekistan – 60 years of operation Queensland Government’s Chief Eskom, Majuba, South Africa – co-firing Scientist, Dr Geoff Garrett AO, power station with syngas confirmed that Carbon Energy: • met the key recommendations of North American Experience: the government appointed Independent Scientific Panel (ISP) 40 years of trials & demonstration • “it is clear that Carbon Energy has Multiple sites, techniques, outcomes contributed to the collective Utilised standard oil-field understanding of UCG and the conditions under which the operation is likely to be both safe Australian Experience: and successful.” Linc Energy – demonstration facility • demonstrated safe and effective operated for 11 years decommissioning and completing of a plan for rehabilitation which Carbon Energy – demonstration facility were independently reviewed by operated for 5 years experts appointed by the DEHP. www.lcke.com.au Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation 6
Leigh Creek Coal Field Produced coal at up to 2.5 Mtpa for captive power station 250km south at Port Augusta (now closed). Infrastructure: LCEP is ideally located with ready access to infrastructure in the area. Existing infrastructure includes the following: Major pipeline 125 km away Power transmission lines Sealed road, airport, rail, water Township of Leigh Creek www.lcke.com.au Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation 7
Supportive Environment South Australian government ISG legislation in place - Specifically contemplated and supported by Petroleum and Geothermal Energy Act No issues regarding overlap of tenements at LCEP DSD 1-stop-shop for Inter-departmental agreements with referral agreements Suitable Location Existing brownfields mine site Well understood groundwater regime Remote from major population centres www.lcke.com.au Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation 8
Traditional Owner Engagement Adnyamathanha Traditional Land Association (ATLA) Adnyamathanha are the traditional owners of the broader region Both parties seeking positive engagement Regular communications Maximising employment and business opportunities Mutual respect Shared benefits www.lcke.com.au Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation 9
LCEP Stages Stage 1 Gas Stage 2 Appraisal Demonstration Commercial • JORC 2012 • Approvals • Approvals resources • Construction • Construction • Gas certification • Cold & hot • Cold and hot • Site environmental commissioning commissioning characterisation • Electricity and Gas • Demonstration production (2019) (Q1 2017) • Plant expansions 2015 2016 2017 2018 www.lcke.com.au Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation 10
Gas Demonstration Target demonstration operation during Q1 2017 at LCEP. Outcome: Demonstrates to government and community that ISG can be completed both: Safely; and with Minimal impact to the environment. Data Obtained from Demonstration Allows: Government to approve Commercial Project; Development of safety and environmental controls; Indicative Timeline For Stage 1 Gas Demonstration: Optimisation of plant design; Date Event Q4 2016 Stage 1 gas demonstration approval Operating costs discovery. Q1 2017 Stage 1 gas demonstration www.lcke.com.au Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation 11
Commercial Gas & Electricity Production Outcome: Produce electricity and methane: Power for LCEP, mines to west and industrial customers Planning underway for 300 – 600 MW power Electricity via syngas Gas into pipeline linked to SA and east coast markets Pipeline specification natural gas is >93% CH 4 (methane). Partners : Power – working with Shanghai Electric Group following HoA (April 2016). Power – in discussion with major customers of power. Gas – in discussion with major customers of gas (methane). Timelines : Intended approvals Q4 2017 18 month construction time and long lead time item procurement. www.lcke.com.au Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation 12
Electricity South Australia Price offers up > 100% - impacting viability of existing and new projects Gas fired generation reduced with gas shortage and higher gas prices Wind energy dominating SA supply is intermittent Manufacturing and mining must live with interruptions and higher cost electricity Figure: South Australian Wholesale Prices Source: CQ Partners – Electricity Procurement in SA www.lcke.com.au Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation 13
Procurement Strategy LCK committed to LOCAL procurement Local means: Leigh Creek and USG, 1. then Adelaide, 2. then rest of Australia, 3. then the world. 4. Commercial and operational benefits to local procurement strategy Working with GM-USG and ICN: Excellent reception Supportive community Suitable resources and skills available in USG → Shortlisted key fabricators and suppliers for the Demonstration phase www.lcke.com.au Leigh Creek Energy Limited (ASX: LCK) – Investor Presentation 14
Recommend
More recommend
