PTR MINERALS LTD — Investor Presentation 2010

Jan 27, 2010

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PETRATHERM LIMITED ABN 17 106 806 884

Paralana Project Presentation to Society of Petroleum Engineers

Petratherm’s Geophysicist, Ms Louise McAllister will later today present to the Society of Petroleum Engineers (Victoria and Tasmania branches) in Melbourne.

The Society of Petroleum Engineers is the professional body representing petroleum engineers in Australia.

28 January 2010

Ms McAllister’s presentation (attached) will focus primarily on technical aspects of the Paralana Geothermal Energy JV project and include new information gained from the recent and successfully drilled Paralana 2, four kilometre deep injector well.

ASX Code: PTR

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

Yours faithfully

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Terry Kallis Managing Director

ABOUT THE JOINT VENTURE PARTNERS:

Beach Energy (ASX: BPT) is an oil and gas company headquartered in Adelaide that farmed-in to the Paralana Project in January 2007. Beach can earn up to 36% of the project for $30 million plus its equity share of project costs.

TRUenergy Geothermal is a wholly owned subsidiary of the CLP group, one of the largest publicly-listed power businesses in Asia Pacific. TRUenergy Geothermal farmed-in to the Paralana project in August 2008. TRUenergy Geothermal can earn up to 30% of the project for $57 million.

MEDIA CONTACT:
Terry Kallis	Petratherm Limited	08 8274 5000
Kieran Hall / Tim Hughes	Hughes Public Relations	08 8412 4100

The Paralana – Engineered Geothermal Energy Project

Society of Petroleum Engineers Presented by Geophysicist, Louise McAllister

Thursday, January 28, 2010

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Disclaimer
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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.

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Evidence for Thermal Anomalism

• › Hot Springs

• › Fossil Hydrothermal Breccias

• › Elevated groundwater temperatures

• › High heat flow (Mt Gee 126 mWm[-2)]

• › Poontana basin insulator

Potentially Commercial Viability at all stages

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Paralana Hot
Springs
P1b P2
Arkaroola
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Paralana Project – Commercial Overview
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• › Potentially commercially viable at all stages. Small off grid market (530MWe) (Heathgate) followed by large on grid development (260 MWe+)

• › Expenditure well leveraged for proof of concept, then potentially fully funded to initial commercial demonstration scale 30MW plant

• › Funding and expertise from JV Partners, Beach Petroleum (up to 36 per cent for $30m) and TRUenergy (up to 30 per cent for $57m)

• › Strong Federal Government support - $7 million geothermal drilling fund grant and $62.762 million REDP grant

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Development Model – Heat Exchanger Within Insulator
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› Higher Permeability

• › Chemically Stable

› Lower Frac Challenge? › Adelaidean – bedding / joint surfaces

• = Cheaper Power!

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Initial Exploration Program
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› Pre-competitive geophysical data

• › Outcrop mapping

• › 2D Refection Seismic data

• › Local gravity and MT surveys › Heat flow modelling

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Exploring for Heat – Paralana Project
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62uWm[-3] 22uWm[-3 ] Insulator Up to 20 times normal granite: average = 8 times

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Permian
Mt Painter Basement
Adelaidean
Curnamona
Mt Painter Basement Basement
Normal basement
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Early modelling indicated 200[o] C at approximately 3.6 - 4 km

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Paralana 1b
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› Drilled mid 2006 › Depth = 1809m › BHT= 109°C › Confirmed stratigraphy

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Further Exploration
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› Poontana Seismic survey › 162km of 2D reflection seismic

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Poontana Seismic Survey
SP: 550.0 600.0 650.0 700.0 750.0 800.0 850.0 900.0 950.0 1000.0 1050.0 1100.0
0.000 0.000
0.200 0.200
0.400 0.400 › P2 located with
529 Bck
0.600 0 .600 deep graben
895 Wirr
0.800 0.800 › Confined by
1.000 1621 TapH 1 .000 steeply dipping
1861 Sgl
faults
1.200 1 .200
1.400 1.400
1.600 3402 Bgp 1 .600
1.800 1 .800
2.000 2.000
2.200 2 .200
2.400 2 .400
2.600 2.600
2.800 2 .800
3.000 3.000
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Paralana MT Survey
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• › To determine depth to basement

› Presence of fluids at depth

› Confirm structural characteristics

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Paralana MT Survey

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Paralana MT Survey
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:PA07-06, 240.86 :84-SPJ, 1567.88 :PA07-07, 303.24
SP: 200.0 250.0 300.0 350.0 400.0 450.0 - :PA07-01 -500.0 550.0 600.0 650.0 700.0 750.0 800.0
0.400 0 .400
Good structural correlation is
0.600 0 .600
seen between the MT model
and seismic data along
coincident line. Note basement 0.800 0 .800
depth changes are mirrored. 1.000 1 .000
1.200 1 .200
1.400 1 .400
1.600 1 .600
1.800 1 .800
2.000 2 .000
2.200 2 .200
2.400 2 .400
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Paralana MT Survey
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P1b

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Passive Seismic Array
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› IESE (Institude of Earth Science and Engineering) NZ › 1 deep borehole sonde at 1790m in Paralana 1b › 6 borehole sondes at 200m › 8 surface seismometers › 2 accelerometers

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Regional and Local Seismic Events
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› Results from April 08 to June 09 › Local and regional events › Relative ML of ML-1 to ML 4

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Background seismicity
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› Relatively small local events detected › Correlates faults within the Poontana Fracture Zone.

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Paralana 2 – Drilling

 New Weatherford Owned

2000HP Le Tourneau Lightning Rig

 57 metres high ~ 10 Stories

• Arrived at Port Pirie 11 May 09

• 80 Semi-Trailer Loads

• Spudded June 30, 2009

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Paralana 2 - Operations
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• › Petratherm/Beach – extensive stakeholder and community consultation – Adnyamathanha Community, Beverley

• Uranium Mine , Epic Pipe line, Arkaroola Village

• › Beach Petroleum – managed drilling operations

• › HSE - no lost time injuries

• › Only minor shake down issues

• › Highly experienced and well trained drill crew

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Paralana 2 - Drilling
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› Hard Rock Formations encountered in the top of the hole – slow ROP 1-3 m/hr › Tested several BHA arrangements to optimize ROP

› Conservatively drilled to maximize likelihood of success › Cost and Time overruns › Only deep well within 90kms

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Contingency Planning…..

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Paralana 2 - Drilling Completed to 4012 M – 9 Nov 2009
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› First well designed following low-risk, standard operating methods

› Steady but slow drilling due to hard formations › Conservatively drilled to ensure success

› Wireline and LWD logging undertaken

› Well is cased and cemented to 3720m

› Temperature readings to be taken shortly

› Inflow zones encountered

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Recent Micro-seismic activity
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Horizontal
Horizontal
Vertical
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• › Increased event detection since drilling began, most drilling related. › Regional and local events detected by the array on 11[th] Dec 2009 › Regional event about 140km from the sensor, not detected by GA. › Local event ML-1.5 to 0

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Recent Micro-seismic activity
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S-P~=0.247sec
Horizontal
~1.5km
Horizontal
Vertical
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› MEQ event coincidental with casing cementing.

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Future Work - Surface geophone array
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• › To ground truth method from use in EGS stimulations

• › To allow for new processing technique to be trialed.

• › “Star pattern”

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Microseismic Inc.
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Future Work - Magnetotelluric Monitoring of Geothermal Fluids
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Temporal coverage with 3 surveys

› Survey before fracturing › Survey during fracturing › Survey after fracturing

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Future Work Program
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• › 1[st] Qtr 2010: CHL program, Mini frac program/fracture stimulation design

• › 2[nd] Qtr 2010: Multi-zone fracture stimulation

• › 3[rd] Qtr 2010: drilling of the Paralana 3 deep producer well

• › End 2010/ Early 2011: Circulation Test – Proof of Concept

• › Early 2011: Commission first stage power plant

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www.petratherm.com.au

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