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Enviro Energy International Holdings Limited Ticker: 1102 HK Corporate Presentation April 2011

Enviro Energy International Holdings Limited Ticker: 1102 HK Corporate Presentation April 2011. Disclaimer. Second West-East Natural Gas Pipeline Crosses TWE’s Liuhaunggou PSC Area.

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Enviro Energy International Holdings Limited Ticker: 1102 HK Corporate Presentation April 2011

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  1. Enviro Energy International Holdings Limited Ticker: 1102 HK Corporate Presentation April 2011

  2. Disclaimer Second West-East Natural Gas Pipeline Crosses TWE’s Liuhaunggou PSC Area This presentation is prepared by Enviro Energy International Holdings Limited (“Enviro Energy” or the “Company”) and is solely for the purpose of corporate communication and general reference only. The presentation is not intended as an offer to sell, or to solicit an offer to buy or to form any basis of investment decision for any class of securities of the Company in any jurisdiction. All such information should not be used or relied on without professional advice. The presentation is a brief summary in nature and does not purport to be a complete description of the Company, its business, its current or historical operating results or its future business prospects. This presentation contains certain forward looking statements with respect to the financial conditions, results, operations and business of the Company. The statements and forecasts involve risk and uncertainly because they relate to events and depend on circumstances that occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward looking statements and forecasts. This presentation is provided without any warranty or representation of any kind, either expressed or implied. The Company specifically disclaims all responsibilities in respect of any use or reliance of any information, whether financial or otherwise, contained in this presentation.

  3. Heilongjiang Jilin Liaoning TWE CBM PSC 653 km2 Qian An Oilfield Xinjiang Jilin Xinjiang Inner Mongolia Hebei Shanxi Ningxia Shandong Qinghai Gansu Jiangsu Shaanxi Henan Tibet Shanghai Anhui Hubei Sichuan Zhejiang Chongqing Jiangxi Hunan Fujian Guizhou Yunnan Guangdong Guangxi Hainan Current Projects Focus in China Qinshui ECBM Shanxi

  4. Xinjiang - A Unique Unconventional Gas Project Coalbed Methane (CBM) & Shale Gas

  5. Building Value in Unconventional Gas INFRASTRUCTURE MARKET PROJECT RESOURCE

  6. Global Powers Focus on China Gas Demand • China's gas market potential is enormous with growth of 10%-15%/yr • Estimated 2010 natural gas shortage: 20 Bcm • Global majors are lining up LNG exports to China from Australia, Indonesia or Mideast • Central Asia powers building pipelines • Majors - Shell, BP, Total - now exploring in China Asia Pipeline Delivery Domestic China Pipeline Delivery Mideast & Asia LNG

  7. China Untapped Unconventional Resources China CBM Potential China CBM Potential • Untapped CBM Resources • Estimated CBM resources, to depth of 2000m: 37 Tcm (1,295 Tcf) • At least 16,000km of new gas pipeline now in-place with capacity of 70Bcm/yr So u r c e : C h i n a U n i t e d Co a l bed M e t han e U.S. CBM Potential W. Canadian CBM Potential So u r c e : Ga s T e chn o logy In s t it u t e So u r c e : A E U B

  8. How Natural Gas Should be Distribute? To be economical: either pipelines or LNG

  9. Infrastructure In-Place – Direct Market Access Nationwide Sources:UBS

  10. Infrastructure In-Place – Operating National major pipeline running through the property (West-East 2)

  11. Time to Build Since beginning in 2003, the basic groundwork required for a new, major project has been completed Continuous Creation of Value

  12. 82.36%1 47% 53% CBM PSC in Junggar Basin, Xinjiang TWE – Xinjiang Unconventional Natural Gas • Located in Junggar Basin with estimated CBM resources of 69 Tcf (3rd largest potential resources in China) • Strong local energy demand and • connections to national pipelines • PSC area holds CBM potential in multiple coal seam targets and gas potential in shale • Block area: 653 km2(163,200 acres) • TWE - operator • Preliminary TWE CBM potential:Multiple Tcf’s • PSC administered by PetroChina; • impending policy change will see • PetroChina as partner Note: (1) Fully diluted basis with common/preferred shares, warrants and options.

  13. Geological Setting - Junggar Basin Basin Analysis by CBM Experts led to selection of the TWE PSC area; - thickest coal seams; close to market & infrastructure

  14. TWE’s Geological Structure World Class Gas Potential Jurassic Xishanyao J2X and Badaowan J1B Formations J1B Formation Note: Idealized 3D cross section from Well LHG 08-03 14

  15. World-class Resource Base Jurassic Xishanyao J2X Coal • 3 main seams to 63m thick • Gas content 280 scf / t • Extensive coal mine data • Jurassic Badaowan J1B Coal • Multiple thin seams 0.3 – 3 m • Aggregate 27m thick • Gas content 380 scf / t • Independent third party CBM Best Estimate (GIIP) (NI 51-101 Compliant) (J2X+J1B) of 26.7 Bcf / sq. mi • Among world’s highest CBM potential

  16. Additional Shale Gas Play – First Sino-Foreign Discovery 1100 - 1150 - 1200 - 1250 - 1300 - 1350 - 1400 - LHG 08-03 (2008) Shale Discovery Well and Mud Log 1450 -

  17. Shale Gas – A Global PhenomenonThe Majors Move In: Scale and Pace Reflect Intense Interest Massive New Investments • Exxon acquires XTO Energy – US$41B • Shell acquires East Resources – US$4.7B • Total acquires Chesapeake Energy assets – US$2.25B • Reliance Industries of India acquires Pioneer Natural Resources and Atlas Energy shale assets • CNOOC acquires 33% of a Texas shale gas field owned by Chesaspeake Energy for US$1B and commitment to invest another US$1B • Chevron Corp. acquires Atlas Energy in Marcellus Basin shale for US$4.3 billion • PetroChina’s US$5.3 billion deal with Canada’s EnCana Corporation In North America – Domestic Shale Trumps LNG Imports Will China Follow? Western Europe – Dozens of Shale Exploration Projects Including Exxon, ConocoPhillips

  18. 8 7.0 7 6 5.0 4.9 5 3.6 4 2.9 3 2.1 1.3 2 0.9 0.4 1 0.3 0 2006A 2007A 2008A 2009F 2010F Production Capacity Production Volume Chinese Government‘s CBM Production Target China Promotes Domestic Gas Favourable Policies • Tax policies: 13% VAT rebate, income tax reduction • Subsidy to CBM production: RMB0.20/m3 (US$1.04/mcf) • Imported goods exempted from customs duties and import tax • CBM has priority access to natural gas pipelines • Foreign party can sell CBM independently • 25% across the board gas price increase • Central Gov’thas aggressive policy supporting energy development in Xinjiang (Bcm) Source: CUCBM, National Development and Reform Commission Recent News on Shale in China • Initial development only limited to domestic plays • Initial subsidy to shale gas production: RMB0.23 to RMB0.30 / m3 (US$1.21 to US$1.58 / mcf)

  19. China’s Latest 12th Five Year Plan • China Reaffirms Commitment to Gas • China has set a target of 25% annual growth in the consumption of natural gas during the 12th Five-Year Plan period • Clean energy is planned to increase from 8% of the energy mix to 11% of the energy mix by 2015 (with the long term target of 15% of the energy mix by 2020) • 150,000 km of oil and gas pipelines will be completed over the next 5 years to Central Asia, Kazakhstan, and Myanmar • China is working to secure bigger supplies of natural gas from overseas as well as exploring more aggressively domestically, including via unconventional sources such as CBM and shale • China is targeting domestic natural gas production of 170 bcm in 2015 while imports are expected to reach 90 bcm. In addition, output of CBM is expected to reach 40 bcm in 2015 • Xinjiang is one of the five key exploration areas

  20. Australia Comparables - Share Price ImpactResource Growth 42x 13x 22x Source: Bloomberg, Company announcements

  21. Thank You!

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