HYTERRA LTD — AGM Information 2013

Aug 29, 2013

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ASX ANNOUNCEMENT

30 August 2013 By e-lodgement

AGM PRESENTATION MATERIALS

Please find attached slides from a presentation being given to Shareholders of Triple Energy Limited (ASX: TNP, Triple , or Company ) following the Company’s 2013 Annual General Meeting today.

CONTACT DETAILS

T: + 61 (0) 408 557 821 E:underwoodpw@tripleenergy.net

Technical Information contained in the attached presentation slides is based on information reviewed by Gregory Meldrum (a consultant to the Company). Mr. Meldrum has a Degree in Geology from Newcastle University, Newcastle (NSW). He is a member of the Petroleum Exploration Society of Australia and a Certified Petroleum Geologist with the American Association of Petroleum Geologists. Mr. Meldrum has in excess of 40 years experience in petroleum geology and has consented to the inclusion of the information in the form and context in which it appears.

Triple Energy Ltd ACN 116 829 675 Unit 15, 100 Railway Road, Subiaco WA 6008 Email underwoodpw@tripleenergy.net Web www.tripleenergy.net

**Triple

Energy
Ltd AGM – 30 August 2013**

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www.tripleenergy.net

Disclaimer

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All
statements,
other
than
statements
of
historical
fact,
contained
in
this
presenta7on
cons7tute
“forward-­‐looking
statements”
and
are
based
on
the reasonable
expecta7ons,
es7mates
and
projec7ons
of
the
Company
as
of
the
date
of
this
presenta7on.
Forward-­‐looking
statements
include,
without limita7on,
possible
events,
trends
and
opportuni7es
and
statements
with
respect
to
possible
events,
trends
and
opportuni7es,
including
with
respect to,
among
other
things,
global
market
trends,
expected
industry
demands,
the
Company’s
business
strategy
and
investment
criteria,
the
nature
of poten7al
business
acquisi7ons,
costs
and
7ming
of
business
acquisi7ons,
capital
expenditures,
successful
development
of
poten7al
acquisi7ons, currency
fluctua7ons,
government
regula7on
and
environmental
regula7on.
The
words
“poten7al,”
“possible”,
“probable,”
“plans,”
“expects,”
or
“does not
expect,”
“is
expected,”
“budget,”
“scheduled,”
“es7mates,”
“forecasts,”
“intends,”
“an7cipates,”
or
“does
not
an7cipate,”
or
“believes,”
or varia7ons
of
such
words
and
phrases
or
statements
that
certain
ac7ons,
events
or
results
“may,”
“could,”
“would,”
“might,”
or
“will
be
taken,”“occur” or
“be
achieved”
and
similar
expressions
iden7fy
forward-­‐looking
statements.
Forward-­‐looking
statements
are
necessarily
based
upon
a
number
of es7mates
and
assump7ons
that,
while
considered
reasonable
by
the
company
as
of
the
date
of
such
statements,
are
inherently
subject
to
significant business,
economic
and
compe77ve
uncertain7es
and
con7ngencies.
The
es7mates
and
assump7ons
contained
in
this
presenta7on,
which
may
prove to
be
incorrect,
include,
but
are
not
limited
to,
the
various
assump7ons
of
the
company
set
forth
herein.
Known
and
unknown
factors
could
cause actual
results
to
differ
materially
from
those
projected
in
the
forward-­‐looking
statements.
Such
factors
include,
but
are
not
limited
to
fluctua7ons
in global
supply
and
demand,
changes
in
compe77ve
pressures,
including
pricing
pressures,
7ming
and
amount
of
capital
expenditures,
changes
in
capital markets
and
corresponding
effects
on
the
company’s
investments,
changes
in
currency
and
exchange
rates,
unexpected
geological
or
environmental condi7ons,
changes
in
and
the
effects
of,
government
legisla7on,
taxa7on,
controls
and
regula7ons
and
poli7cal
or
economic
developments
in jurisdic7ons
in
which
the
Company
carries
on
its
business
or
expects
to
do
business,
success
in
retaining
or
recrui7ng
officers
and
directors
for
the future
success
of
the
Company’s
business,
officers
and
directors
alloca7ng
their
7me
to
other
ventures;
success
in
obtaining
any
required
addi7onal financing
to
make
target
acquisi7on
or
develop
an
acquired
business;
employee
rela7ons,
and
risks
associated
with
obtaining
any
necessary
licenses
or permits.
Many
of
these
uncertain7es
and
con7ngencies
can
affect
the
Company’s
actual
results
and
could
cause
actual
results
to
differ
materially
from those
expressed
or
implied
in
any
forward-­‐looking
statements
made
by,
or
on
behalf
of,
the
Company.
There
can
be
no
assurance
that
forward-­‐looking statements
will
prove
to
be
accurate,
as
actual
results
and
future
events
could
differ
materially
from
those
an7cipated
in
such
statements.
All
of
the forward-­‐looking
statements
made
in
this
presenta7on
are
qualified
by
these
cau7onary
statements.
These
factors
are
not
intended
to
represent
a complete
list
of
the
factors
that
could
affect
the
Company.
The
Company
disclaims
any
inten7on
or
obliga7on
to
update
or
revise
any
forward-­‐looking statements
whether
as
a
result
of
new
informa7on,
future
events
or
otherwise,
or
to
explain
any
material
difference
between
subsequent
actual
events and
such
forward-­‐looking
statements,
except
to
the
extent
required
by
applicable
law.
The
forward-­‐looking
statements
set
forth
herein
are
for
the purposes
of
providing
poten7al
investors
with
informa7on
concerning
the
Company’s
future
business
plans
in
order
to
assist
poten7al
investors
in determining
whether
or
not
to
invest
in
subscrip7on
receipts
of
the
Company
and
may
not
be
appropriate
for
other
purposes.
The
reader
is
cau7oned not
to
place
undue
reliance
on
forward-­‐looking
statements.

2

Triple Energy Overview

Capital Structure	Capital Structure
Shares on issue	~521m
Performance Shares (up to)	350m
Price (As at 27 August 2013)	1.1¢
Undiluted market capitalisa7on	~$5.5m
Cash	~$1.0m
No of shareholders	~1,000

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Volume ('000) Share Price Performance and Volume Price
($)
60000
0.05
0.04
45000
0.03
30000
0.02
15000
0.01
0
0.00
Aug-­‐12
Nov-­‐12
Feb-­‐13
May-­‐13
Aug-­‐13
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Project

• Coal
  Mine
  Gas
  Extrac7on
  in
  China
  up
  to
  ~
  2,700km2

• 80%
  profit
  interest
  in
  Coopera7ve
  Joint
  Venture
  (“JV”)

• JV
  with
  one
  of
  China’s
  largest
  coal
  miners,
  LongMay
  (Gov’t
  owned)

• • 1
  x
  well
  drilled
  July
  2013
  –
  well
  intersected
  63m
  of
  coal
  seams
  with
  gas,
  DST
  was
  successful

• • 1-­‐3
  x
  addi7onal
  wells
  in
  planning
  for
  ASAP
  –
  next
  well
  will
  include
  desorp7on
  core

3

Board and Management

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Paul
Underwood Execu7ve
Chairman

• Chartered
Accountant

• Ex
Tap
Oil,
30
years
in
oil
and
gas
produc7on

• Richard
Hayward Petroleum
Reservoir
Geologist • Non-­‐Execu7ve
Technical
Director Ex
Hess,
Premier
and
Woodside,
20
years
in
oil
and
gas

Rod
Bresnehan Non-­‐Execu7ve
Technical
Director

• Petroleum
Reservoir
Engineer

• Ex
Santos
and
OCA,
36
years
in
oil
and
gas

• Garry
Ralston Co
founder
of
Finance
&
Systems
Technology
(FAST)
and Non-­‐Execu7ve
Director Select
Mortgage
Services

4

Progress to Date

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2012

• March –
  Paul
  Underwood
  appointed
  to
  iden7fy
  energy
  projects

– $1.3m
new
capital
raised,
~$800k
available
aker
creditors
and
costs

• March
  to
  September –
  Over
  50
  poten7al
  projects
  reviewed

• September –
  Coal
  Mine
  Gas
  Project
  in
  China
  short
  listed
  for
  acquisi7on

• October –
  China
  Coal
  Mine
  Project
  nego7ated,
  documented
  and
  signed

• Subject
  to
  shareholder
  approval
  and
  raising

  $2m
  in
  new
  capital

• No7ce
  of
  Shareholders
  mee7ng
  completed
  despatched

• December –
  shareholders
  approved
  the
  acquisi7on

• $2m
  capital
  raised
  aker
  costs

2013

• Jan
  –
  May –
  long
  winter,
  rig/equipment
  procured,
  prepara7on
  for
  drilling
  –
  many
  delays

• June -­‐
  $1m
  in
  extra
  capital
  raised

• July -­‐
  first
  well
  drilled,
  63
  meters
  of
  coal,
  2
  x
  good
  DST’s

5

Project Overview

The
Project
is
situated
in
Heilongjiang
Province,
China

Triple
is
operator
@
80%
profit
interest,
carrying
LongMay

LongMay
is
largest
coal
company
in
Heilongjiang
Province

Project
covers
up
to
~
2,700+km2
of
coal
mining
leases

45
year
lease
over
drilled-­‐out
coal
mine
acreage

Explora7on
phase
of
the
project
completed
via
a
DST
and circa
200
boreholes
drilled
by
LongMay
delinea7ng
coal seams
for
future
coal
mining

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The
explora7on
phase
proved
the
occurrence
of
gas
in
coal seams
and
permeability
sufficient
to
flow
gas

6

**UnconvenWonal

Gas
in
China
-­‐
Macro**

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China has a huge demand for gas… and cleaner energy

Central Government push for more domgas production China gas markets pay $7 - $8 / mscf China has huge (gas charged) coal resources China currently pays ~3 times more for gas than the USA The energy mix in China is 70% coal

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– but this has environmental consequences

China is encouraging coal mine gas production by coal miners

7

Gas Consumption & Production

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China
Gas
Produc7on
&
Consump7on China’s
Gas
Imports

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8

China Coal Basins, Heilongjiang

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Daqing
Basin
Tarim
Basin
Ordos
Basin
Sichuan
Hegang, site of frst Basin
well
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9

Heilongjiang Coal Mine License Areas

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HEILONGJIANG
Up
to
2,700km2
acreage
1.
Hegang
mines
2.
Shuan
Ya
Shan
mines
3.
Qi
Tai
He
mines
4.
Ji
Xi
mines
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10

Hegang Area – Conceptual Gas Delivery Plan

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Gas
market
entry
point
City of
Hegang
1 [st]

DST
well
drilled
July
DST
FLOWED
GAS
-­‐
Planned
only
2.7km
from
2nd
well
market
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11

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Xian-Xian #1 Well Log Interpretation
Total Coal Seams = 63.4m
Total Thickness >2m = 47.2m
300
Shallow
seams
400 not so gassy
Seam #11 7.8m thick
500 1.8m thick
3.2m thick
~37m of coal
Seam #15 7.2m thick
600
in gassy seams
New seam 7.6m thick
below Seam #11
Seam #18 missing
700 in this well 1.6m thick
3.2m thick
800
Depth (m RT)
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12

Location of Xian- Xian #1

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Xian-­‐Xian#1
well
Mining
seam
delinea7on
drilled
by
Triple
–

60
m
borehole
–
drilled
July
13
coal
seams
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13

About the Coal and Seams

Cretaceous aged sediments Gassy coal seams at optimal depths - 400 – 700+m Coal seams are up to 15m in thickness Gas in the coals is reported to be mostly methane Coal rank is high / medium volatile bituminous Gas in coals increases with depth Permeability is suitable for gas production Water influx in well was minimal

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14

Lateral Coal Seam Well Schematic

– minimal surface impact

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15

- estimated Future Operational Timing

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**July

2013**

• Drilled
  first
  well
  –
  Xian-­‐Xian
  #1

• Drill
  Stem
  Test
  was
  successful
  in Seams
  #11
  and
  15,
  good
  gas readings,
  good
  down-­‐hole pressure

**Aug/Nov

2013**

• Analyse
  data
  from
  Xian-­‐Xian
  #1 well,
  collate
  with
  exis7ng borehole
  and
  seismic
  data

• Farm-­‐out
  next
  2-­‐3
  wells

• Re-­‐enter
Xian-­‐Xian-­‐1 and complete
as
pilot
producWon well

2014

• Drill
  second
  well
  at
  Bird
  Mountain loca7on
  -­‐
  acquire
  core
  for desorp7on
  analysis

• Establish
  pilot
  gas
  produc7on
  and gas
  sales
  agreement

• Commence
  work
  to
  calcula7ng con7ngent
  resources/reserves

• Plan,
  fund
  and
  execute
  further produc7on
  wells
  (
  ~
  10
  wells)

• Evaluate
  adjacent
  mine
  areas
  for addi7onal
  reserves
  and
  produc7on

• Evaluate
  other
  mine
  areas
  under
  JV

16

Summary

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• ü mo7vated
for
success
45
year
exclusive
7tle
via
JV
with
strong
Chinese
partner
–

• Excellent
fiscal
terms
and
profit
share
posi7on
(80%) ü • Huge
scale
poten7al
in
acreage
posi7on ü • Acreage
is
already
past
“explora7on”
phase • ü 1
x
DST
well
and
many
boreholes • First
well
Drill
Stem
Test
was
successful ü • Poten7al
for
near
term
resources/reserves
and
produc7on ü • Proximate
gas
market
for
any
produced
gas
at
a
good
price ü • Time
to
development
short ü

17

Contact Details

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www.tripleenergy.net

**Head

Office
–
Perth**

Paul
Underwood Spectrum
100
Building Level
1,
Unit
15,
100
Railway
Road
Subiaco
WA
6008 PERTH
WESTERN
AUSTRALIA Phone
+61
408
557821 underwoodpw@tripleenergy.net Phone
+61
407
961
609

**Beijing

Office**

Level
5,
unit
503,
Lido
Office
Tower, Lido
Place No
6
Jiangtai
Road Chaoyang
District Beijing
100004

18