Eastern Australian Gas Market Market Segments Market Summary Stable demand profile Over supplied market from Bass Straight and Cooper Basin Pricing (A$2 -‐> A$3/GJ) Residential and commercial Gas powered generation Large industrial 2 Bcf / Day Moomba Brisbane Sydney Melbourne Hobart gas pipelines Mount Isa Adelaide Gladstone Cooper Basin Gippsland Basin Bowen and Surat Basin
Market Changes Discovery of significant CSG reserves (Bowen and Surat Basin) the enabler of a massive LNG investment program New LNG plants to connect on-shore gas resources to global energy markets Imminent Demand Shock
? A$2 - $3 / GJ Est. A$6 - $7/ GJ Est. A$8 - $10 / GJ HistoricTransitionSteady State Steady State Drivers LNG netback price (oil linked pricing) Increasing supply options Competitive cost environment Implications for gas prices
Equivalent to 20yr supply for one 4 million tonne per annum LNG train PEL 96 PEL 94PEL 95 Moomba PELA Tcf prospective resource (PEL 96) Equivalent to 0.5 Bcf/day over 25 years supply profile Project Status Large gas resource Sustained gas flows to surface Low well capex Establish commerciality – Q2/Q Strike Energy – Southern Cooper Basin Gas Project 0.5 Bcf/day