| Q. | Why is the Company involved in an exploration permit? |
| A. | The exploration permit immediately adjacent to the Tassie Shoal location became available in late 2003. The permit area offers considerable scope the hydrocarbon discoveries. The Heron feature (within the permit) was drilled in the 1970's and strong natural gas shows were recorded, particularly in the Darwin Formation, where the Epenarra prospect has been mapped. Confirmation of a commercial gas discovery could support the future demands of the two gas-to-liquids projects. |
|
| Q. | Where do you propose to install the first LNG project? |
| A. | On May 5, 2004, the Company was been granted the environmental approval to site the proposed offshore LNG facility adjacent to the proposed methanol project on Tassie Shoal in the Australian waters of the Timor Sea. The shoal is located 275 km northwest of Darwin. The LNG project is expected to be supplied by gas from NT/P68 where the CO2 content in Epenarra is likely to be low. The project is expected to advance rapidly following confirmation of commercial gas resources in NT/P68. |
|
| Q. | Who is the Cambrian Mining Group |
| A. | Cambrian Mining is a London based, diversified mining house with international interests in coal, iron ore, metals and energy. |
|
| Q. | What is the current price for chemical grade methanol? |
| A. | The current spot price for methanol delivered in Asia is over US$500 per tonne or AU$660/t. |
|
| Q. | What does the Joint Development Agreement with Air Products mean? |
| A. | Air Products and MEO will work as an integrated team to resolve the various remaining commercial and financial matters for the Tassie Shoal Methanol Project so that a decision can be made to advance the project. Resolution of these matters would initate the commencement of Front End Engineering and Design studies, which are planned for later this year. The JDA provides the funding mechanisms to take the project to financial close. |
|
| Q. | Who is Air Products and Chemicals Inc.? |
| A. | Air Products is a USA based chemicals and energy giant. They are a Fortune 500 corporation with annual revenues in the order of US$9 billion. The estimated market capitalisation is US$14 billion. The company employs 20,000 people and operates in over 32 countries. Air Products has highly developed skills set, which can be applied to the management and development of large projects. These skills will be use to fully resolve the various commercial and technical issues for the Tassie Shoal Methanol Project. Further information can be found at www.airproducts.com |
|
| Q. | What specific skills does Air Products have? |
| A. | Air Products has owned and operated methanol plants. They consume methanol in one of their chemicals businesses. Air Products are a highly experience plant operator and operate and own more natural gas reformers than any other company. Additionally, they offer advanced engineering skills to optimise the plant design, which ensures reliability and high plant availability. |
|
| Q. | Why did Cambrian Mining invest in MEO |
| A. | Cambrian noted that MEO owned 100% of its resource in NT/P68 and the LNG project. Cambrian approached MEO with a funding strategy to advance the exploration and appraisal activities in the permit while retaing 100% interest. In this way, MEO controls the pace and timing of any future developments. |
|
| Q. | When does MEO expect to drill wells in NT/P68 |
| A. | MEO has secured the Seadrill West Atlas jack-up rig. The rig is being constructed at the Keppel FELS yard in Singapore and is due to be delivered to NT/P68 in August 2007. MEO expects to spud Heron-2 shortly after. Blackwood-1 would follow the Heron-2 appraisal well. |
|
| Q. | t |
| A. | 1 |
|
| Q. | As a shareholder, how do I change my address details? |
| A. | Write to Link Market Services Ltd. at Level 9, 333 Collins Street, Melbourne, Victoria 3000.
Ph: (03) 9615-9800
Fax: (03) 9615-9900
NB Don’t forget to sign the letter.
|
|
| Q. | I bought the old Timor Sea Petroleum NL (“TSP”) shares. How many MEO do I have? |
| A. | You should check your holding statement or request a copy from Link Market Services, but the quick answer is 75% of your original TSP holding. |
|
| Q. | What were the previous names of this Company? |
| A. | Timor Sea Petroleum Pty Ltd (incorporation 14 September 1994).
Timor Sea Petroleum NL (28 February 1997).
escape3d. NL (8 September 2000).
escape3d. Limited (27 October 2000).
Methanol Australia Limited (MEO)(21 December 2000).
|
|
| Q. | When would a decision be made to commit to the Tassie Shoal Methanol or the Timor Sea LNG Projects? |
| A. | Now that environmental approvals have been granted to both projects, the Company is focussing on various commercial matters, including gas supply matters. The activities in NT/P68 may resolve gas supply matters. FEED studies must be undertaken and an EPC contractor chosen. A final investment decision could occur as early as 2008. |
|
| Q. | When will methanol fuel cell cars be available in Australia? |
| A. | Chrysler and Mercedes Benz expect to offer a number of models during 2007. It is likely that their introduction into Australia could follow two to three years later. This would of course depend on the availability of methanol or hydrogen at your service station. |
|
| Q. | When will my MEO shares pay a dividend? |
| A. | Full operation of the proposed methanol and LNG projects are not scheduled until 2010. It is unlikely that dividends could be paid earlier than this date. |
|
| Q. | What are the potential hydrocarbon reserves in the NT/P68 permit? |
| A. | The Company has estimated that the prospects and leads in the permit, including Epenarra, Heron North and South, Blackwood and Seahawk, collectively have a potential mean gas in place value that could exceed 14 Tcf. The first methanol plant requires approximately 1.3 Tcf to operate for 20 years. The first stage of the LNG project requires approximately 3 Tcf to operate for the same period. |
|
