Indonesia Geothermal EOI Presentation

Indonesian Geothermal
Exploration & Development Opportunities 1
Commercial in Confidence
Not to be Distributed
March 2010
Asia Pacific Edition
EXPRESSIONS OF INTEREST
Invitation for
Exploration & Development
Opportunities
INDONESIAN
March 2010 - Asia Pacific Edition
TM

March 2010
Disclaimer & Disclosures
This presentation has been prepared by Activated Logic Pty Limited (ABN: 62 134 740 293) trading as and hereafter referred to as“Activated Logic”for the sole purpose of introducing
interested parties to the potential benefits which may be realised in the Indonesian geothermal sector. The information contained in this presentation is not investment or financial
advice and is not intended to be used as the basis for making any investment decisions. The presentation has been prepared without taking into account the corporate objectives,
financial situation or particular needs of any particular person, company, or organisation.
No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, or to the opinions and conclusions contained
in this presentation. To the maximum extent permitted by law, Activated Logic, its partners, its directors, employees or agents, nor any other person accepts any liability, including,
without limitation, any liability arising out of fault or negligence, for any loss arising from the use of the information contained in this presentation. In particular, no representation or
warranty, express or implied is given as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness of any forecasts, prospects or returns contained
in this presentation nor is any obligation assumed to update such information. Such forecasts, prospects or returns are by their nature subject to significant uncertainties and
contingencies.
The information in this presentation is an overview and does not contain all the information necessary for making any corporate, strategy, financial or any other decision. Before
making any decisions, you should consider, with the assistance of your own legal, tax, business and/or financial advisers, whether a decision is appropriate in light of your particular
investment needs, objectives and financial circumstances. Past performance is no guarantee of future performance. Unless otherwise stated, all “dollars” or “$” refer to Australian
Dollars.
Technology development and commercialisation relies on the interpretation of complex and often uncertain data and information which cannot be relied upon to lead to a
successful outcome in any particular case. Geothermal resources and technology development and commercialisation is inherently uncertain and involves potentially significant
risk of failure. All information regarding prospective market sizes and other information, is given in the light of this caution.
This presentation contains a number of forward looking statements, therefore recipients of this presentation should conduct their own investigation, evaluation and analysis of
the data and information described in this document. In particular any estimates or projections or opinions contained herein necessarily involve significant elements of subjective
judgment, analysis and assumptions and you should satisfy yourself in relation to such matters.
The distribution of this document in various jurisdictions may be restricted by law. Any recipient of this must seek advice on and observe any such restrictions.
IMPORTANT DISCLOSURES
Activated Logic, or its directors, officers, staff and their associates may hold shares or other relevant interest in the securities of entities related directly or indirectly to any proposed
or possible transaction as may be described or covered by this presentation. Activated Logic and its advisers may earn brokerage, fees, commissions, other benefits or advantages
as a result of a transaction arising from any research, opinions, publications or solicitation of potential investors, partners or clients. Activated Logic may have provided corporate
advice within the past and may continue to provide corporate advice to companies or related parties concerned, for which Activated Logic may have received gross fees and /or
continue to receive fees.
Activated Logic holds investments directly and indirectly in a range of public and private entities and has relationships with a number of specialised brokers, international banks and
other financial institutions, however Activated Logic is not itself a broker and is not authorised to directly deal in securities. Activated Logic operates within Australian Securities and
Investment Commission Class Order CO/273“Business introduction or matching services”which provides various exemptions from the obligations and requirements of Paragraphs
283GA(1)(a), 741(1)(a), 992B(1)(a) and 1020F(1)(a) of the Corporations Act 2001 (Cth).
The information contained in this presentation is for general information purposes only and does not constitute an offer to issue, or arrange to issue, securities or other
financial products.
© Activated Logic Pty Limited 2010. All Rights Reserved.
R
Expressions of Interest
Disclaimer &
Disclosures
Overview
The Indonesian
Geothermal Advantage
Resources
Comparative Geothermal
Development Costs
Activated Logic
Contact Details
Global Geothermal
Development Pipeline
The Indonesian
Geothermal Opportunity
Additional Geothermal
Project Locations
Geothermal Alliance
Capability Statement
Your Strategic
Geothermal Partner

March 2010
Indonesian Geothermal Overview
With a population of just over 240 million spread across more than 17,000
islands, Indonesia represents a substantial and growing energy market.
The government has set ambitious targets for the installation of significant
additional power generation capacity, consisting of both fossil fuel and
renewable energy sources, particularly geothermal.
In addition to the 7 major currently operating geothermal projects in
Indonesia, the increasingly supportive regulatory regime is encouraging
the rapid construction of additional geothermal capacity. The geothermal
development pipeline consists of projects at all stages of development.
Project Developer Year Online MW
WayangWindhuII Pertamina 2009 117
LahendongIV –VI Pertamina 2011 –2012 60
DiengII GeoDipa 2012 120
PanasBumi ITOCHU 2012 330
SumatraJawa Pertamina 2012 240
DarajatIV Chevron 2014 110
Patuha Geo DipaEnergi 2014 180
UluBelu Pertamina TBD TBD
Project Developer Year Online MW
DarajatI –III Chevron 1994 255
SalakI –VI Chevron 1994 –1997 375
Dieng I GeoDipaEnergi 1998 60
Sibayak Pertamina 1998 2
Pengalengan Pertamina 2000 110
Lahendong I &II Pertamina 2001,2007 40
LahendongIII PLN 2008 20
Kamojang PLN 2008 200
1
2
3
4
5
6
7
12
3
4
5
6
7
10
11
12
13
14
15
8
9
10
11
12
13
14
15
8
9
OperatingProjects
PlannedProjects
Operating
Planned
Areaof Geothermal
ProjectTenders
Source: Adapted by Activated Logic 2010, from proprietary and EER research.
Indonesian Geothermal Facts
Installed geothermal capacity
Geothermal target by 2025
Geothermal resources (conservative)
Geothermal resources (optimistic)
Geothermal development cost quartile
Geothermal resource quality
Distribution of Indonesian Geothermal Projects
1,286 MW
9,500 MW
10,000 MW
27,000 MW
quadrant 1 (lowest)
high temperature
The next wave of geothermal
development in Indonesia is being
led by ambitious Independent
Power Producers (IPP’s). These
project developers are keen to take
advantage of the recently increased
geothermal tariff and the attractive
CDM opportunities.
Given Indonesia arguably hosts the
highest quality, low cost geothermal
resources in the world, interest
and investment in the Indonesian
geothermal sector is expected to
intensify expeditiously.
R
Disclaimer &
Disclosures
Overview
The Indonesian
Resources
Development Costs
Activated Logic
Contact Details
Global Geothermal
The Indonesian
Project Locations
Geothermal Alliance
Your Strategic
Geothermal Partner

March 2010
The Indonesian Geothermal Advantage
High temperature geothermal resources
Large geothermal development pipeline
Capable development partners
Attractive project capex profiles
Substantial CDM opportunities
Competitive geothermal tariff
VAT concessions
Key Competitive Advantages
Sumbing Volcano.
Java, Indonesia
World-class geothermal opportunities
AspartoftheIndonesianGovernments“CrashProgram”toinstallanadditional
10,000 MW by 2011 and a similar capacity commencing in 2014, there is a
sense of immediate urgency for increasing power generation capacity.
To accelerate the development of geothermal energy in Indonesia, the
government has implemented a raft of measures including VAT-concessions
for drilling equipment and subsidies. Of greatest significance, the government
has legislated the state-run power utility Perusahaan Listrik Negara (PLN) to
increase the geothermal tariff available to Independent power producers
(IPP’s) from $US71 to US$97 per MW.
A 100MW Indonesian geothermal
power plant project, has the potential
to generate up to US$10 million
per annum, from the sale of CER’s
generated through CDM projects.
CER - Certified Emissions Reductions
CDM - Clean Development Mechanism (Kyoto Protocol)
R
Disclaimer &
Disclosures
Overview
The Indonesian
Resources
Development Costs
Activated Logic
Contact Details
Global Geothermal
The Indonesian
Project Locations
Geothermal Alliance
Your Strategic
Geothermal Partner

March 2010
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
HydrothermalMWPotential
HydrothermalResource(Optimistic)
HydrothermalResource(Conservative)
Exhibit 2-7: Regional Hydrothermal Geothermal Resource Potential Comparison
Indonesian Geothermal Resources
Estimates by numerous institutions, including the U.S. Department of
Energy (DOE), International Energy Agency (IEA), International Geothermal
Association (IGA) and the Government of Indonesia have collectively
determined the conventional geothermal potential of Indonesia to be
approximately 27,000 MW.
Conventional Geothermal Resource Potential
Geothermal resource potential of 27,000 megawatts
Indonesia’s conventional (hydrothermal) geothermal resources are
amongst the most significant in the world and are only behind the United
States, which hosts vast geothermal resources (concentrated largely in
the western states of California and Nevada). The increased geothermal
activity in Indonesia is expected to further increase resource estimates.
R
Disclaimer &
Disclosures
Overview
The Indonesian
Resources
Development Costs
Activated Logic
Contact Details
Global Geothermal
The Indonesian
Project Locations
Geothermal Alliance
Your Strategic
Geothermal Partner

March 2010
$1,500,000
$1,709,000
$1,873,000
$2,000,000
$2,400,000 $2,444,519
$2,610,000
$3,751,000
$4,018,000
$5,785,000
$5,274,321
$6,195,510
Sumatera (Coal) Wayang Windu
II
Patuha Lahendon IV AcƟvated Logic
Client A
AcƟvated Logic
Client B
Indonesia
Average
US (Lower-
quarƟle)
Tongonan
(Philippines)
US (top-
quarƟle)
Australia (HSA) Australia (EGS)
ForecastGeothermal Development Costs
(US$/MWe)
Comparative Geothermal Development Costs
Indonesian geothermal resources are characterised by high temperature
and shallow reservoirs with high flowrates, resulting in highly productive
geothermal reservoirs. The high temperature Indonesian geothermal
projects are often suitable for flash cycle (either single, dual or hybrid)
based power generation systems which are exceptionally cost competitive,
largely due to the large turbine capacities often exceeding 50 megawatts.
The power cycle cost efficiencies, high temperature resouces and the
relatively low drilling costs for shallow wells, combine to make Indonesian
geothermal development amongst the most competitive in the world to
develop.
Source: Activated Logic 2010, from various proprietary and public domain data.
Actual & Forecast Geothermal Development Costs (US$/MWe
)
Indonesian geothermal projects are highly cost competitive
R
Disclaimer &
Disclosures
Overview
The Indonesian
Resources
Development Costs
Activated Logic
Contact Details
Global Geothermal
The Indonesian
Project Locations
Geothermal Alliance
Your Strategic
Geothermal Partner

March 2010
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
Megawatts(MW)
Operating
AnnouncedPipeline
Markets with existing geothermal capacity driving new global growth Emerging Geothermal Markets
Global Geothermal Development Pipeline
Installed geothermal capacity in Indonesia is forecast to increase rapidly
from the current 1,286 megawatts to more than double, with current
estimates at approximately 2,700 megawatts by 2012. Indonesia’s high
quality geothermal resources, relatively low developments costs and
Indonesian geothermal pipeline exceeds 2,000 megawatts
the recently announced increased geothermal tariff are pivotal drivers
behind major Indonesian geothermal development pipeline. The
Indonesian geothermal development pipeline consists of both greenfields
developments and expansion of existing geothermal projects.
R
Disclaimer &
Disclosures
Overview
The Indonesian
Resources
Development Costs
Activated Logic
Contact Details
Global Geothermal
The Indonesian
Project Locations
Geothermal Alliance
Your Strategic
Geothermal Partner

March 2010
01. Nanggroe Aceh Darussalam
02. North Sumatera
03. Riau
04. Riau Archipelago
05. West Sumatera
06. Jambi
07. Bengkulu
08. South Sumatera
09. Bangka Belitung
10. Lampung
11. Banten
12. Jakarta
13. West Java#
14. Central Java
15. Yogyakarta
16. East Java
17. Bali
18. West Nusatenggara
19. East Nusatenggara
20. West Kalimantan
21. Central Kalimantan
22. East Kalimantan
23. South Kalimantan
24. North Sulawesi
25. Gorontalo
26. West Sulawesi
27. Central Sulawesi
28. South Sulawesi
29. Southeast Sulawesi
30. North Maluku
31. Maluku
32. West Papua
33. East Papua
#
Including Banten province
The Indonesian Geothermal Opportunity
Activated Logic represents numerous geothermal clients across the Asia
Pacific, with a specific focus on Indonesia. Activated Logic’s Indonesian
clients are active across the geothermal development value chain, ranging
from projects at the early pre-survey stage, through to established, third-
party verified resources on the verge of large scale, development drilling.
Our extensive and unique reach into the Indonesian geothermal sector,
provides us with the unique capability to offer companies across the Asia
Pacific with a diverse range of geothermal opportunities in Indonesia. Our
Indonesian geothermal clients are looking for foreign partners for their
respective geothermal projects which are interested in:
Jointly bidding for geothermal working areas (GWA’s)
Conducting pre-feasibility studies for geothermal projects
Conducting FEED, development drilling & power plant construction
Source: Adapted by Activated Logic 2010, from IJT 2009.
Activated Logic’s geothermal clients are actively
exploring and developing geothermal projects
in Indonesia targeting 3,000 MW’s of installed
capacity, representing more than 10% of
Indonesia’s total geothermal potential.
All of these geothermal projects are seeking
technical and financial partners to accelerate
the commercialisation of these exciting projects.
Available Geothermal Projects - By Province
Provinces in red indicate the current availability of
geothermalprojectopportunities,byActivatedLogic.
R
Disclaimer &
Disclosures
Overview
The Indonesian
Resources
Development Costs
Activated Logic
Contact Details
Global Geothermal
The Indonesian
Project Locations
Geothermal Alliance
Your Strategic
Geothermal Partner

March 2010
Australia
Chile
Europe (various)
Iceland
Japan
Kenya
Papua New Guinea
Turkey
United States
& other selected regions.
Regions with proven
conventional geothermal
resources.
Geothermal distribution
Additional Geothermal Project Locations
Conventional geothermal resources are
typically found in regions proximal to
continental plate margins. These areas are
often characterised by historic or current
volcanic activity.
In addition to the world-class geothermal resources found throughout
Indonesia, the Global Geothermal Alliance has access to all the key
prospective geothermal regions around the globe.
The members of the Global Geothermal Alliance conduct detailed research
into they key geothermal markets on behalf of private clients, as well as
more general industry and corporate research. A range of country specific
geothermal reports are available by request.
Available project locations
We have developed an extensive network across the geothermal value chain
over many years, and have a wealth of knowledge and experience to share .
Our experience spans the entire geothermal industry, encompassing
the vast diversity of projects from early stage pre-feasibility, through to
corporate finance for commercial scale development projects. We have a
range of opportunities if you are looking at building or diversifying your
geothermal portfolio internationally.
Conventional Geothermal Resources
R
Disclaimer &
Disclosures
Overview
The Indonesian
Resources
Development Costs
Activated Logic
Contact Details
Global Geothermal
The Indonesian
Project Locations
Geothermal Alliance
Your Strategic
Geothermal Partner

March 2010
global
geothermal
alliance
TM
Your Geothermal Financial Partner
“If you are serious about developing a
competitive geothermal project portfolio;
- speak with us to find out, how the Global
Geothermal Alliance can activate and add
value to your geothermal assets.”
CAPABILITY STATEMENT
Discover the key value creation strategies
utilised by the Global Geothermal Alliance (GGA),
and explore the list of our recent geothermal
transactions.
Request a copy of the Global Geothermal Alliance
Capability Statement, by contacting Activated
Logic, or available for download by clicking here .
Download Now
R
Disclaimer &
Disclosures
Overview
The Indonesian
Resources
Development Costs
Activated Logic
Contact Details
Global Geothermal
The Indonesian
Project Locations
Geothermal Alliance
Your Strategic
Geothermal Partner

March 2010
Research Services
• Benchmark exploration, drilling and plant costs
• Geothermal sector & technology research
• Market, grant and pricing research
• Identification of suitable project & offtake partners
• Identification of potential investors and/or lenders
Strategy Services
• Financing & power offtake strategies
• Develop operational & corporate strategies
• Determine optimal financial structure
• Determine optimal ownership structure
• Evaluation of acquisition opportunities
Communication Services
• Prospectus & IM development
• Corporate partner negotiations
• Promotional project collateral
• Investor roadshows & dataroom
• Annual reports & corporate literature
Investment Services
• Initial public offerings & sub-underwriting
• Project assessment & valuations
• Merger & acquisition evaluation
• Investor roadshows & engagement
• Identification of strategic investments
Financial Services
• Financing strategies & capital raisings
• Debt syndication & bookbuild
• Identification of financing options
• Due-diligence & project valuation
• Mergers, acquisitions & asset disposals
Base case scenario
Value
Creation
“Business
as usual”
PHASE 1
Early
Stage
Exploration
PHASE 2
Drilling &
Feasibility
Assessment
PHASE 3
Design &
Construction
Activities
Value Added Services
Base Case Scenario
Research
Strategy
Communication
Investment
Finance
Business as Usual
Your Strategic Geothermal Partner
Reservoir
Volume
Reservoir
Temperature
Reservoir
Flow Rate Capacity
COMMERCIAL DRIVERS
High value
Markets
Project
Integration
TECHNICAL
DRIVERS
Proximity to
Infrastructure
Power Cycle
Technology
Source: AL-GCAMTM
, developed by Activated Logic, 2008 - 2010.
Activated Logic - Geothermal Commerciality Assessment Matrix
TM
Activated Logic - Value Creation Process
Source: Activated Logic, 2008 - 2010.
Geothermal Service Offering
R
Disclaimer &
Disclosures
Overview
The Indonesian
Resources
Development Costs
Activated Logic
Contact Details
Global Geothermal
The Indonesian
Project Locations
Geothermal Alliance
Your Strategic
Geothermal Partner

March 2010
global
geothermal
alliance
TM
Your Geothermal Financial Partner
Global Geothermal Alliance, Geothermal Financing Breakfast (AGEC, Nov 2009).
Global Geothermal Alliance, exhibiting at World Geothermal Congress (Bali), 25 - 30 April, 2010.
With a large proportion of the world’s conventional geothermal resources,
geothermal experts from around the world will descend on Bali - Indonesia
in April, for the 2010 World Geothermal Congress.
We look forward to seeing you in Bali.
Islandsbanki
Sustainable Energy Team
Kirkjusandi IS-155
Reykjavik, Iceland
Tel: +354 440 4500
For more information:
energy@islandsbanki.is
www.islandsbanki.is
Activated Logic
Sustainable Energy Team
PO Box 889, Sanctuary Cover
Queensland, 4209, Australia
Tel: +617 5561 7282
For more information:
energy@activatedlogic.com
www.activatedlogic.com
Australian Enquiries
1300 4 LOGIC or (1300 4 56442)
International Enquiries
+617 5561 7282
Direct
Mr. Bahay Ozcakmak
Mob: +61 (0)414 596 007
Email: bahayo@activatedlogic.com
Contact Details
For a confidential discussion to explore and discuss these geothermal
opportunities, contact Activated Logic today.
R
Disclaimer &
Disclosures
Overview
The Indonesian
Resources
Development Costs
Activated Logic
Contact Details
Global Geothermal
The Indonesian
Project Locations
Geothermal Alliance
Your Strategic
Geothermal Partner

Indonesia Geothermal EOI Presentation

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