PETRATHERM LIMITED 
By PETRATHERM LIMITED ABN 17 106 806 884
6 May 2014
ASX Code: P T R
ABN 17 106 806 884
Level 1, 129 Greenhill Road
Unley SA 5061
T: +61 8 8274 5000
F: +61 8 8272 8141
W: www.petratherm.com.au/
E: admin@petratherm.com.au
Executive Director presentation to SA Resources & Energy Investment Conference 2014
Petratherm's Executive Director, Terry Kallis will present later today at
the South Australian Resources and Energy Investment Conference.
The presentation focuses on the state of play in South Australia for geothermal, wind and solar and also provides an update on Petratherm.
Yours faithfully
Terry Kallis
Managing Director
MEDIA CONTACTS:
Terry Kallis Petratherm Ltd 08 8274 5000
Kieran Hall / Tim Hughes Hughes Public Relations 08 8412 4100
SA Resources & Energy Investment Conference 2014
"State of play in SA for geothermal, wind and solar" Terry Kallis Executive Director, Petratherm Limited & Councillor, SACOMEMay 2014
Disclaimer and competent persons statementDisclaimer
This presentation has been prepared by Petratherm Limited (Petratherm). The information contained in this presentation is a professional opinion only and is given in good faith.
Certain information in this document has been derived from third parties and though Petratherm has no reason to believe that it is not accurate, reliable or complete, it may not have been independently audited or verified by Petratherm.
Any forward-looking statements included in this document involve subjective judgment and analysis and are subject to uncertainties, risks and contingencies, many of which are outside the control of, and maybe unknown to, Petratherm.
In particular, they speak only as of the date of this document, they assume the success of Petratherm's strategies and they are subject to significant regulatory, business, competitive and economic uncertainties and risks. Actual future events may vary materially from the forward looking statements and the assumptions on which the forward looking statements are based. Recipients of this document ("Recipients") are cautioned not to place undue reliance on such forward-looking statements.
Petratherm makes no representation or warranty as to the accuracy, reliability or completeness of information in this document and does not take responsibility for updating any information or correcting any error or omission which may become apparent after this document has been issued.
To the extent permitted by law, Petratherm and its officers, employees, related bodies
corporate and agents ("Agents") disclaim all liability, direct, indirect or consequential (and whether or not arising out of the negligence, default or lack of care of Petratherm and/or any of its Agents) for any loss or damage suffered by a Recipient or other persons arising out of, or in connection with, any use or reliance on this presentation or information.
All amounts in Australian dollars (AUD) unless
stated otherwise.
1. Geothermal sector in Australia and SA
2. Petratherm Limited update
3. South Australian - wind and solar sectors
4. Current issues
5. The facts about Renewables and the RET scheme
• Initially growing from one pioneering ASX listed company
(GDY) to include more than ten
• At it's peak the sector had more than 35 companies
(private and public)
• Seven deep geothermal wells by three companies - with
only a few wells successful
• Last two years has witnessed a major reduction in companies active in the sector
• Challenges are both technical and commercial but the potential remains enormous
• Market sentiment has been negative for some time -
making funding difficult
Petratherm Update - Changing to address new circumstances• PTR successfully drilled one 4 km deep well and is the only ASX listed company with an active JV partner - BPT
• 85 % of the spend on Paralana to date from PTR and its
JV partners - private sector has done the "heavy lifting"
• Paralana project seeking additional partner to meet $13m federal government grant conditions of $5m in equity by
19 July 2014.
• Board restructure from six to three directors, prudently preserving cash and assessing new investment opportunities to create shareholder value
• Tenerife, conventional geothermal project - actively
seeking parties to acquire the project
• PetraGas, unconventional oil and gas - in discussions with a large Australian energy company to JV the project
SA Wind and Solar - Change in fuel source for electricity over 9 years2003/2004 2012/2013
Source: Derived from AEMO 2011 South Australian Supply and Demand Outlook and 2013
Historical Market Information
SA Wind and Solar - National leader in wind and solar PVWind
• 38% of nation's installed capacity
• In 2012/13 delivered 28% of State's electricity
requirements
• 2011/12 was first year that wind generation
overtook coal
Source : Renewables SA
Solar Photovoltaic
• 400 MW individual installations - similar size
Pelican Pt power station
• 1 in 5 households have solar PV
• Delivers 3.8% of annual energy demand
Current Issues - Many, varied and confused• Recent reduction in grid sourced electricity from the impact of solar PV - pronounced in SA
• Recent increases in cost of electricity across
Australia - causes and remedies?
• Carbon tax policy and its flow through impact into
electricity prices
• Federal Government budget and review of Climate
Change related policies and bodies
• Direct Action Policy - Emissions Reductions
Scheme white paper released on 24 April 2014
• Current review of the Renewable Energy Target (RET) Scheme that was originally established by the Howard Government
The facts - Confirm that the RET scheme works and should continue• Wholesale price increases are reduced by the
RET
• Cost of RET is largely offset by reductions in wholesale prices in the near term
• Repealing the RET would increase retail electricity prices and increase greenhouse gases
• Increasing and extending the RET will further
benefit customers
• The RET will drive new investment and
significant job creation
Source: ROAM Consulting Pty Ltd - RET Policy Analysis Report to the Clean
Energy Council dated 29 April 2014.
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