IEC Intro to Boree Salt Project - Innovative Energy Consulting ...

EPM 17010, Adavale Basin,Queensland, Australia

Innovative Energy Consulting Pty Ltd• A.B.N 81 122 373 719 (“IEC”)• Brisbane based private company owned jointly byGlen Gill & Glori Cowan• Glen Gill is an engineer by training and has 28years in the energy industry and numerouspioneering successes with underground gasstorage & business development in both Canada &Australia;• Glori Cowan is a geologist by training with 22years experience in the western Canada’spetroleum industryBoree Salt Project 2

Major Rock Salt DepositsBoree SaltBoree Salt Project 3

Underground Salt Caverns• Used since the 1940’s for storing hydrocarbons;– Gas since the 1960’s & petroleum liquids since the 1940’s– Commenced in Canada yet Canada has only bedded salt• The USA, Germany, France, and the Netherlands all usesalt caverns for their crude oil strategic reserves to enhancesecurity of energy;• Disposal of non-hazardous waste in salt caverns is acommon practice in mining & petroleum producingregions (Europe, Canada & USA);• Recently identified as a perfect vessel to store CO2 asenvironmental concerns escalate in OECD countriesBoree Salt Project 4

Historical Use of Salt Caverns forliquids• Storage of both liquids & gases in solutionmined salt caverns conceived in Canada in1940’s• Storage of LPG and other lighthydrocarbons in salt caverns spread rapidlyin the 1950’s in both North America andEuropeBoree Salt Project 5

Global Gas Storage FacilitiesGas MarketUSAEuropeCanadaAustraliaWorldwide# UGS FacilitySites>400>150>30600# Salt Cavernsused for gas>100 (27 sites)300+30 (6 sites)0>430Boree Salt Project 6

Canadian Salt Cavern StorageBoree Salt Project 7

US Salt CavernsBoree Salt Project 8

US Gulf Coast Salt CavernsBoree Salt Project 9

Europe Salt Cavern StorageBoree Salt Project 10

Comparison of Salt CavernsRegionUSACanadaEurope# Salt Caverns for storage310 in dome salt146 in bedded salt456 total salt caverns200 in bedded saltUsesWaste disposal, NGL’s,LPG’s, oil & natural gas(primarily for petroleumliquids)30 for natural gas, 3 forwaste disposal, 167 forpetroleum liquids229 caverns for naturalgas,Boree Salt Project 11

•Large unexplored basinlocated in SW Qld•Prospective Devonian-Carboniferous basin•Well located vis-à-visgas & oil infrastructure•World class rock saltdepositsBoree Salt Project 12

Adavale Basin• One of many onshore geological basins in Queensland;• 76 exploration, 15 appraisal & 4 development petroleumwells since 1950’s• Single gas field discovery to date:– Gilmore gas field found in 1964 & produced from 1995 to 2002 asfuel for the Barcaldine power plant from the Lissoy Sandstone– Cum gas produced was 13.95 Bcf (393 E6M3)• Contains Boree Salt deposit– Originally deposited as a bedded salt– 100+ square km in area– Flowed into a domal salt or salt pillow– 2000+ m depth, 600 m thickBoree Salt Project 13

Boree Salt EPM 17010 AreaBlocks 595, 596, 667,& 668100 sub-Blocks in total258 square km (100square miles)Located 30 km SE ofBlackall, QldGranted to IEC on April18, 2008EPM 17010Boree Salt Project 14

IEC’s EPM 17010EPM’s 17503,17538, 17557,17581 (CircleResources/BTMetals)ATP 863P(CoomoorooEnergy)BarcooRiverLansborough HwyEPM’s 16413, 16410 &16409 (Holocene Ltd)• 20 km east of gaspipeline;• 35 km S.E. of town ofBlackall, Qld (pop 1833);• 900 km N.W. of Brisbanevia Lansborough Hwy.;• 800 km fromRockhampton viaCapricorn Hwy.;• Boree Creek runs throughleaseBoree Salt Project 15

Salt Cavern Applicationsstorage/cycling• Natural gas• Oil, LPG’s & NGL’s• Petrochemicals• Park CO2 until EORor CSG enhancedrecovery schemes inplacePermanent storage• Ideal disposal tomb• CO2• Uranium nuclearwaste• Oilfield waste• Strategic oil reservesBoree Salt Project 16

Boree Salt Project 17

Boree Salt Project 18

Underground Hydrocarbon Storage• Commenced in Australia utilizing depletedreservoirs in the 1980’s;• To date use has been restricted to gas, LPG andethane (no oil);• Only man made UGS facility is the Elgas LPGcavern storage facility near Botany Bay, NSWdeveloped in 1999.• Regulations are evolving with Victoria leading theway• Currently evaluating CO2 storageBoree Salt Project 19

UGS Facilities in AustraliaLocationOtway BasinMondara, WANewstaed, QldMoombaBalleraTubridgiOperatorTruEnergyAPAOriginSantosSantosBHP BillitonDescriptionBuilt in 1999 by TXU and generallyopen to customersDeveloped in 1996 by WANG andacquired by APA from CMS in 2004Surat Basin developed by Origin in1998Used by Santos for load levellingMoomba gas centreUsed by Santos for load levellingBallera gas centreCanarvon basin storage developedby DevexBoree Salt Project 20

BasinPerthCarnarvonSuratCooperDepleted Reservoir StorageFieldMondarraTubridgiNewstaedLowerDaralingieYearDev1996?19981984OperatorAPABHPBillitonOriginSantoscommentsDeveloped by WAGAcquired by CMS in 1997Acquired by APA in 2004Acquired from Origin in 2004Evergreen formation, 10 Bcf OGIPConverted in 1997Stored ethane from 1984 to 1996;Sales gas cycled from 1993 to present;OtwayEromanga3 fieldsChookoo19991998TRUenergySantosCommercial storage developed byTXULoad levelling of Ballera plantHuttonBoree Salt ProjectHutton SS, 13.7 Bcf OGIP21

Pioneering• Salt cavern storage yet to be developed inAustralia;• Numerous commercial applications;• Boree Salt in Queensland’s Adavale Basin is byfar the best salt deposit in Eastern Australia;• Well located vis-à-vis infrastructure;• Qld’s underground storage regulations are rapidlyevolvingBoree Salt Project 22

Innovative Energy Consulting• www.innovativeenergy.com.au• 2222 – 178 Grey St, S. Brisbane, Qld, Australia4101• Tel/Fax: (617) 3846-2131• Glen Gill– mobile 0400-772-512,– email: glen@innovativeenergy.com.au• Glori Cowan– mobile 0400-772-383– Email: glori@innovativeenergy.com.auBoree Salt Project 23