Galilee Energy : Asia Investor Roadshow Presentation 5 November 2018

Asia Investor

Roadshow

Presentation

November 2018

ASX: GLL

• ▪ Brisbane based gas explorer (ASX:GLL).

• ▪ 100% owner of the 2nd largest Contingent Gas Resource in Queensland (excluding the big 3 LNG exporters).

• ▪ Management team has a proven track record of top tier coal seam gas and conventional exploration success.

• ▪ MD formerly of Eastern Star Gas which was sold to Santos for $900m after booking 1520 PJ 2P reserve.

• ▪ Well placed to supply gas into the critically undersupplied Australian east coast gas market. Jemena pipeline option provides clear path to market.

• ▪ ~$90m spent to date on Glenaras Gas project. Major potential value creation phase imminent with step out pilot designed to convert major Resource into a significant Reserve position.

• ▪ Market Cap ~$139m (current) (Cash c $7.5m 30 Sept 2018)

Location of Glenaras Gas Project

(Galilee Basin)

GAS EXPLORER WITH A MAJOR STRATEGIC ASSET

IN THE CRITICAL EAST COAST GAS MARKET

2

• • Australian east coast gas thematic continues to be a powerful story for Galilee.

• • East coast market was transformed with the advent of the three LNG projects in Queensland which altered the supply and pricing dynamics.

• • Supply to meet domestic demand has been constrained by these LNG exports with large huge east coast gas volumes contracted for export.

• • Galilee's Glenaras Gas Project Contingent

  Resource of 5300 PJ, if converted to Reserves, is enough to supply the entire domestic east coast market for 8 years. (~650 PJ/year)

Domestic gas prices aligning with internationalLNG netback pricing

THE SOLUTION IS NEW SOURCES OF GAS SUPPLY

SUCH AS GALILEE'S GLENARAS PROJECT

• • Convergence between domestic gas prices in the east coast gas market and LNG export parity prices.

• • The long term supply outlook for east coast gas market remains uncertain, exacerbated by restrictive state government policies regarding onshore gas exploration in certain states.

• • Gas prices have increased from 2008-2010 levels of as low as $3/GJ to recent highs of over $10/GJ.

• • Given the supply shortfall, these prices are likely to be sustained into the medium term.

DOMESTIC GAS PRICES ALIGNING WITH INTERNATIONAL

LNG NETBACK

• • Many Australian states have imposed moratoria or restrictions on gas exploration activities.

• • Northern Territory has recently lifted its previous restrictions.

• • South Australia now has restrictions in the south east of the state.

• • The Glenaras Gas Project does not require fraccing.

• • Queensland Govt has shown strong bipartisan support for the gas industry.

• • Qld Govt has identified the Galilee Basin as a crucial asset in the supply solution.

• • Strong support from industry and Government to develop pipeline options to unlock these areas.

QUEENSLAND IS EASTERN AUSTRALIA'S ENERGY STATE