Western Gas
Equus Gas Project
100% interest in Equus Gas Project
• Strategically located on the North West Shelf
Fully Appraised Resource
• Independently certified resource – 2 Tcf of gas and 42 MMbbls of condensate (2C)
Development Ready
• US$1.5B spent on exploration,
appraisal and development studies by Hess
Access to Multiple Gas Markets
• New build mid-scale 2 MTPA LNG
• Backfill and expand existing LNG plants
• Domgas supply shortfalls from 2020 Upside Potential
• 9 Tcf risked exploration portfolio
• High quality, low-risk undrilled prospects
Equus Gas Project
Development-ready, 100% privately-owned gas resource
WA#518#P WA#474#P
WA#70#R WA#519#P
WA#390#P
Snapshot
Glenloth Glencoe
Briseis Bravo
Rimfire Nimblefoot Hijinx
Mentorc Chester
Equus Gas Project
Independently certified 2 Tcf gas and 42 MMbbl condensate
Gross Contingent
Resource 1C 2C 3C
Gas (Bcf) 1,343 2,028 3,223
Condensate (MMBbl) 26.6 41.5 68.4
• US$1.5 billion spent since 2007 on exploration and appraisal:
• 17 explorations wells for 15 discoveries
• 4 appraisal wells
• 5 dynamic well tests
• 9,100 km23D seismic
• FDP and FEED completed
• Environmental approvals advanced
• Historic expenditure provides over US$1.5 billion of deferred income tax and Petroleum Resource Rent Tax credits
• One Retention Lease and four Exploration Permits = 4,760 km2
• Independently certified resource of 2 Tcf (2C) Gaffney Cline & Associates 2017:
Integrated Upstream to Nearshore LNG Development
100% control of project from reservoir to international LNG market
Development Plan
• 3 wells at RFSU
• 250 MMscfd and 7,000 BOPD Subsea Infrastructure
• Subsea wellheads, flow lines, manifold and production risers Offshore Processing Facility
• FPSO vessel with condensate stripping, gas dehydration and compression
Dry Gas Export Pipeline
• 200 km offshore pipeline with connection to domgas market Nearshore LNG
• Located in protected nearshore waters
• 2 MTPA LNG capacity
• Integrated liquefaction, storage and loading facilities
100% control of project enables speed to First Gas from 2023
Development Partnering
Partnering with McDermott-BHGE drives Equus from FEED to production
McDermott-Baker Hughes GE Exclusive Development Partner & EPCIC Contractor
• McDermott-BHGE provides a world-class Development Partner with the
experience, skills, products and services to help drive Equus from FEED to
production
• Development agreement is for exclusive provision of project development services from pre-FEED and FEED studies through to engineering, procurement,
construction, installation and commissioning (EPCIC)
• Integrated “Design-to-Install” contracting approach is an Australian-first for a
project of the size and scale of Equus and will help deliver an efficient development plan, enhance project economics and reduce time to first gas
Gas Marketing Plans
Establishing partnerships with foundation LNG customers
LNG
LNG Growth in Asia presents marketing and investment opportunities for the Equus Project
• Asia remains the driver of long-term LNG demand
• Supply from existing LNG facilities will peak in early 2020 and decline thereafter as fields deplete
• Post 2030 LNG demand growth in Asia expected to accelerate
• Western Gas is working towards establishing foundation customers for LNG offtake and securing the threshold offtake volumes that will be required for project financing prior to planned FID
LNG Imports (1990-2040) by Region (BCF/d - billions of cubic feet per day)
Western Gas is working towards establishing a foundation customer for LNG offtake as a key
partner for the Equus development
Project Funding Strategy
Western Gas to leverage appetite for energy infrastructure investment demand
Western Gas plans to finance the Equus Development through a mix of:
Western Gas is progressing discussions with energy infrastructure investors to progress arrangements towards binding conditional agreements
Infrastructure Investment
• The FPSO to be built, owned and operated by a specialist provider of offshore production platform with a lease
• The Offshore Pipeline to be owned and operated by a third party pipeline specialist pipeline partner with a tariff
• The LNG processing facility intended to be owned by a third party infrastructure partner with a tolling agreement Western Gas is progressing initial term sheets with lead project financiers
Project Finance
• Advice from financial institutions is that Equus project capital structure could achieve gearing ratios between 60-70%.
• The project finance options for Equus include senior debt, syndicated loan, bond or reserves based lending
Western Gas is evaluating investment and farm-in opportunities into the Equus Gas Project with a partner that brings financial, infrastructure, marketing and/or operating experience
Equity
• Equity deemed a requirement for project finance is intended to be sourced from either a private placement into Western Gas, Initial Public Offer (IPO) and/or investment from farm-in partner/strategic investor.
2019
Q1 Q2 Q3 Q4
2020
Q1 Q2 Q3 Q4
2021 to 2024
Y1 Y2 Y3 Y4
Proj. Devt.
Subsurface
Gas Sales
Proj. Finance Approvals
Execution
Production Forecasting FDP Pre-FEED
FEED GSA HoA
GSA
Funding Plan
1stGas FID
Production Licence
42 Months Execution Funding Completed (subj. to FID)
HoA (s)
RFSU
Project Timeline & Milestones
Driven to meet LNG market needs for First Gas by 2024
Red Flag Review
High Quality Exploration Portfolio
Material, low risk undrilled portfolio
• Undrilled portfolio supported by amplitude anomalies & geophysical attribute analysis
• Mean risked GIIP on prospects > ~ 9 TCF
• Multiple geophysical analogs to Glenloth & Mentorc identified
• Potential to add more high-value condensate to the product stream
• New play types identified
Oxfordian Amplitude Oxfordian Structure
Mean GIIP TCF
WA-70-R Briseis Deep 0.6 0.3
Glenloth North 0.8 0.3
Various 1.2
WA-390-P Various 1.0
WA-518-P Gaulus 1.1 1.0
Posinatus 0.5 0.4
Oxfordian Amplitude 0.9 0.3
Merriwee 6.2 1.3
Wodalla (on Block) 0.7 0.2
WA-519-P Sasanof (inc WA-70-
R, WA-390-P) 4.2 3.1
Total 9
Permit Prospect Mean Risked
GIIP TCF
Equus Gas Project
A new and independent gas supply
Glenloth Carnian 300 Extended DST November 2010
Strategic Asset
• Unique 100% ownership of mature 2 Tcf project in the heart of Australia’s premier petroleum producing basin
Development Ready
• Leverage the US$1.5B risk capital spent by Hess on exploration, appraisal, testing and development studies
World-class Project Development Partner & EPCIC Contractor
• McDermott-BHGE provides experience, skills, products and services to help drive Equus from FEED to production
Speed to Market
• 100% control of project and integrated development plan enables speed to First Gas from 2023/24
Customer Focused
• Upstream Development Plan provides access to multiple markets for LNG and domestic gas, with innovative pricing opportunities for foundation customers
