Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — Morgans Noosa Mining Conference 2015
27 slides from Amplitude Energy's conference presentation, Jul 17, 2015
Slide 1: Orbost gas plant
For personal use only Orbost gas plant
Slide 2: Important information
The information in this presentation: For personal use only • Is not an offer or recommendation to purchase or subscribe for shares in Cooper Energy Limited or to retain or sell any shares that are currently held. • Does not take into account the individual investment objectives or the financial sit
Slide 3: Key messages
Key messages . Cooper Energy is on the cusp of a transformation to a significant gas supplier to eastern Australia while retaining its low cost oil operations. 2. Reserves and production are cash generating at current oil prices. Our balance sheet is strong. 3. Our existing projects have the capacit
Slide 4: Cooper Energy is an independent Australian exploration and production company
For personal use only Cooper Energy is an independent Australian exploration Key figures and production company Shares on issue 332.1 mill • Cash generating from production of approx. 500,000 Shareholders 5,100 barrels of oil per annum Market capitalisation1 ~$80 mill • Strong balance sheet, zero de
Slide 5: Recent events
For personal use only Recent events COE share price Calendar year to date Cooper Basin: 0.35 Successful drilling added reserves & production Indonesia: 0.30 Drilling adds 2P Reserves of 1.26 MMbbls, lifts production 2.5x Gippsland gas projects: 0.25 Completion of Sole Orbost purchase 0.20 So
Slide 6: Cooper Energy activities
For personal use only • Cooper Basin Oil – oil production – development & appraisal – exploration • Otway Gas – exploration • Gippsland Gas – development – appraisal & exploration – major shareholder in Bass Strait Oil Company – joint ventures with Santos and Beach Energy • Indonesia (onshore Sumatr
Slide 7: Callawonga and Orbost gas plant
For personal use only Callawonga Orbost gas plant Production ~500,000 bbls pa Gippsland Basin gas & liquids resources Total operating cost1: A$37/bbl Sole gas project in FEED Cooper Basin 87%, Indonesia 13%1 Manta Gas Project identified as opportunity Focussing on low cost - low risk production Work
Slide 8: Strategy
For personal use only Total Shareholder Return and Health Safety Environment Community Strategy • High margin oil • Fundamentals focus: market, technical, cost & commercial • Gas portfolio • Leverage and grow strengths People Funding Assets • Extensive knowledge • Strong balance sheet • Cooper Basin
Slide 9: Oil production and production costs
For personal use only Cooper Energy oil production Production costs million barrels Direct cost A$ per barrel 0.7 0.6 0.59 0.5 Netback 0.52 0.49 0.4 0.47 0.50 – 0.41 0.47 0.3 9 Royalties 0.2 14 Transport expenses 0.1 14 Op. costs 0 2010 2011 2012 2013 2014 2015 • Annual production of ~ 500,000 bbls
Slide 10: Cooper Basin oil production and exploration
For personal use only • Oil production and exploration - March Qtr YTD production 1,128 bopd (COE share) from PELs 92 & 93 - FY 15 operating cost of $35/bbl including transport and royalties • In-field development and appraisal in PEL 92 continues to add reserves • Successful 2015 Callawonga drillin
Slide 11: Indonesia: Sukananti KSO and exploration PSCs
For personal use only Oil production: Sukananti KSO • Currently 800 bopd (COE share: 55%) • Low risk, low capital production and reserves addition • Contractor share: oil 15%: gas 20% Oil & gas exploration • Sumbagsel and Merangin III PSC’s • Highly prospective with large prospects • Currently 100%
Slide 12: Indonesian reserves and production
For personal use only Indonesian reserves post Bunian-3 Indonesian quarterly production MMbbl 2P COE share barrels of oil per day, COE share 1.8 500 1.6 1.26 1.68 1.4 400 1.2 1 300 0.8 0.6 200 0.4 0.47 -0.06 0.2 100 0 Jun-14 2P Production to May B3 revision May 2P reserves 0 Reserves Dec-12 Mar-13 J
Slide 13: Forecast east coast domestic gas demand
For personal use only 800 Contracted supply from: 700 Forecast east coast domestic demand Gippsland 600 Otway 500 Bass 400 Sydney Basin Contract opportunity 300 Cooper 200 Surat-Bowen 100 Domestic demand (AEMO) 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Source: EnergyQuest
Slide 14: Gas market approach, Otway and Gippsland Basins
For personal use only • Market-driven approach • Building customer relationships • Gas sales terms being negotiated • Pipeline transport expertise Otway Basin Gippsland Basin • Ideally located: close to markets and pipelines • Eastern Australia’s largest gas supply source • Conventional and shale ga
Slide 15: Gippsland gas strategy timeline
For personal use only 2012: – identifies strategic value of Gippsland Basin gas for Eastern Australia – acquires stake in Bass Strait Oil Company (BAS) 2014: – initiates gas customer discussions – acquires 65% and Operator role at Basker Manta Gummy (VIC/L26- 28), initiates preparation of Business C
Slide 16: Gippsland Basin gas assets
For personal use only to Melbourne Eastern Gas Pipeline to Sydney Orbost Gas Hub COE 50%, STO 50% Sole Gas field COE 50%, STO 50% & Operator Patricia Baleen (depleted) (STO 100%) ~211* PJ Longtom (SVW 100%) 2.6 *MM bbls ~106* PJ Manta Gas field COE 65% & Operator, BPT 35%
Slide 17: Indicative Gippsland gas production and revenue
For personal use only Indicative gross PJ 60 • Gippsland gas projects can produce approximately 320 PJ (gross) from current projects 50 • Peak production would be close to 50 PJ p.a and 23 23 23 23 plateaus for 4-5 years from FY22 40 • Gas price of $8/GJ generates A$400 million revenue per annum in
Slide 18: Indicative net production outlook
For personal use only Indicative net production (mmboe) 6 5 4 Manta - Liquids 3 Manta - Gas 2 Sole - gas Existing2 Cooper Basin & Indonesia - oil 1 1 Indicative only and subject to key milestone achievement and joint venture 0 approval FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 2 Existing pro
Slide 19: Sole gas field and Orbost gas plant
For personal use only Sole Gas Field • Contingent Resources (2C) of 211 PJ • Sole gas field in FEED for development to supply gas from Jan quarter 2019 • FEED expected to complete/proceed to FID in Sept quarter 2016 • Sole Gas project development: − single vertical sub-sea well − dedicated pipelines
Slide 20: Manta gas project
For personal use only • Gas resource of 106 PJ 2C Contingent and Risked Prospective Resource of 10 PJ • COE Business case identified economic opportunity • Preferred option utilises synergies with adjacent Sole project and Orbost Gas Hub: – 2 well subsea development, exports gas to Orbost Gas Plant
Slide 21: Gippsland development timeline
For personal use only FID First Gas Gas Production FID Business First Gas Case Prod'n Manta-3 Sole Development Manta Development Sole Manta Gas Sales Agreements Sole Gas Sales Agreements LOIs Sole Reserves Manta Reserves Booking Booking * Indicative only and subject to review at key milestones and j
Slide 22: Otway Basin Penola Trough
For personal use only • Extensive acreage position across Penola Trough • Jolly-1 and Bungaloo-1 deep wells drilled FY14 – confirmed location of Casterton Formation unconventional play – identified deep conventional gas play – shale gas potential delineated • Analysis of core and other data has conf
Slide 23: Current and emerging outlook
For personal use only Current - Strong balance sheet, cash generating production, reserves and resources: • Production of 460 – 500 kbbls in FY15; A$37/bbl cash cost1 is robust at current prices • FY15 drilling is expected to result in strong reserves and resources as at 30 June 2015 • Strong balanc
Slide 24: Appendices
For personal use only Appendices
Slide 25: Tunisia and divestment plan
For personal use only • 3 permits covering 12,600 km2 • Hammamet West oil discovery - gross contingent resource estimated to be 12.6 MMboe (1C) to 110.4 MMboe (3C)1 - oil development opportunity • Multiple prospects • Reducing commitments Divestment plan • Portfolio to be divested as peripheral to f
Slide 26: Reserves and resources notes
• Reserves include Cooper Energy’s share of future crude fuel usage in the Cooper Basin. The estimated fuel usage is: 1P 0.02 MMbbl, 2P 0.05 MMbbl For personal use only and 3P 0.08 MMbbl. No produced crude oil is used for fuel in Indonesia. • Categories are aggregated by arithmetic summation. Basin
Slide 27: Glossary
For personal use only bbls barrels of oil boe barrel of oil equivalent bopd barrel of oil per day EBITDA earnings before interest, tax, depreciation and amortisation kbbls thousand barrels LTIFR Lost Time Injury Frequency Rate. Lost Time Incidents per million man hours worked MMbbl million barrels o