Vintage Energy Ltd. · ASX:VEN
Vintage Energy — Investor Presentation (May 2018)
20 slides from Vintage Energy's investor presentation, May 21, 2018
Slide 1: Vintage Energy EGM Presentation
Neil Gibbins Managing Director For Information info@vintageenergy.com.au www.vintageenergy.com.au
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Vintage Energy Limited (Vintage or the “Company”), with the purpose of providing general information about the Company. It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company, or as an inducem
Slide 3: Contents
Contents Overview of Vintage Investment Thematic and Highlights Vintage Energy Team Assets − Koburra Trough, Galilee Basin − Penola Trough, Otway Basin − PEL 155 − PEP 171 Business Strategy and Operating Model Acquisition/Expansion Strategy Summary/Forward Plan 21/05/2018 3
Slide 4: Overview of Vintage Energy Ltd
Overview of Vintage Energy Ltd Registered 5 Nov. 2015 Vision “to become a unique, dynamic, financially strong, growth-focussed energy company, respected by the industry, shareholders, employees and public” Goals − Take advantage of favourable energy pricing Gas supply shortage in the eastern
Slide 5: Investment Thematic
Investment Thematic Looming Supply Crisis in East Coast Gas Market − Ramp-up of gas supply to export LNG markets − Adverse state government policies on exploration Fraccing and exploration moratoria − Accelerated decline in traditional gas sources Underinvestment during downturn − Crisis in Vi
Slide 6: Investment Highlights
Investment Highlights Proven Board and Management − Well respected with decades of industry experience − Strong relationships with Govt and Govt agencies − Deep knowledge of Australian basins − Track records of risk management, innovation, success and growth Targeted Exploration and Appraisal Pr
Slide 7: Vintage Energy Team
Vintage Energy Team Chairman Company Secretary Reg Nelson has a long and distinguished career in the Simon Gray has over 35 years’ experience as a Chartered Australian petroleum industry including Managing Director Accountant and was responsible for Grant Thornton’s Mining of Beach Energy Ltd, until
Slide 8: Assets
Assets ATPs 743, 744, 1015 (Deeps), Galilee Basin PEL 155, Otway Basin (SA) − Large tenements with proven petroleum − Adjacent to proven Penola Trough gas fields and system (potential for multiple follow-ups) markets − ~2:1 work program promote to acquire 30% − 50% equity acquired interest in co
Slide 9: Galilee Basin: ATPs 743, 744, 1015 (Deeps)
Galilee Basin: ATPs 743, 744, 1015 (Deeps) Large, cattle grazing area, central western QLD Comet Ridge 100% and Operator Koburra Trough Largely unexplored (3 wells, limited seismic) Working petroleum system Gas recovered from all 3 wells, oil recovery in 1 well Appraise Carmichael-1 gas
Slide 10: Galilee Basin: ATPs 743, 744, 1015 (Deeps) - Albany Structure
Galilee Basin: ATPs 743, 744, 1015 (Deeps) Albany (Carmichael) Structure Large 60-80 km2 conventional gas discovery in robust anticline Defined by 1980’s 2D seismic grid (2.5x 2.5km) Closure Contingent Resource booked: 2C = 153 PJ, 3C = 417 PJ Wasn’t pursued in low gas price environment Al
Slide 11: Penola Trough, Otway Basin
Penola Trough, Otway Basin Exploration began 1866 Modern day exploration began in 1961 − Katnook Gas Plant commissioned in 1991 − Over 70 Bcf gas and 0.4 MMbbls condensate produced − Depleted fields shut-in, plant mothballed (Beach awarded $6million Federal Govt Grant to upgrade) Commercially
Slide 12: PEL 155, Otway Basin
PEL 155, Otway Basin Vintage 50%, Otway Energy 50% (Subsid. Rawson Oil & Gas) Ready to drill prospect at Nangwarry-1 − Drilling planned for late 2018 Haselgrove Field − Well location covered by 3D seismic and within pine plantation − On trend with Otway Basin, Penola Trough fields − 3-way dip, f
Slide 13: PEP 171 - Onshore Otway Basin
PEP 171 - Onshore Otway Basin Initial equity Vintage 25%, Cooper 75% − Cover all permit costs and studies during moratorium (Minimum $450k) − Binding HoA with Cooper − Countercyclical opportunity for low cost entry Right to earn additional 25% post moratorium − fund 65% of 100 km2 3D seismic (ca
Slide 14: Business Strategy
Business Strategy Take Advantage of Unique Circumstances Asset values fallen inline with global crude prices Companies still reducing costs and shedding equity in exploration, production and infrastructure assets Demand for gas in the eastern Australia Instability of power generation capacit
Slide 15: Operating Model
Operating Model Goal of raising sufficient capital for not less than a 3 year period Target assets with early production/positive cashflow potential to underpin and provide capital for future growth Seek to build a mix of projects, for example : − 1 production/appraisal (lesser risk) − 1 near
Slide 16: Acquisition/Expansion Strategy
Acquisition/Expansion Strategy Growth with commercial focus − Exploration/appraisal/development of current assets − Asset farm-ins or acquisitions − Portfolio optimisation − Corporate opportunities − Utilisation of in-house expertise Asset portfolio provides short and long term growth opportunit
Slide 17: Indicative 2018 News Flow
Indicative 2018 News Flow 2017 2018 Q1 Q2 Q3 Q4 Albany-1 $5.3million raise Albany-1 Albany-1 stimulation Albany-2 Galilee Galilee flow test & flow test 2D seismic 3D seismic (optional) Nangwarry-1 Successful, oversubscribed pre-IPO raise completed 29 January 2018 Albany-1 to spud mid-May Drill
Slide 18: Summary / Forward Plan
Summary / Forward Plan Creating shareholder value a clear priority − Current assets − Future acquisitions/farm-ins − Portfolio optimisation − Corporate opportunities Exciting near and long term growth potential − Good asset mix − Diverse, highly skilled, experienced and proven team Drill ready
Slide 19: Glossary
Glossary AUD or $ Australian dollars 1C Contingent resource low estimate(1) 2C Contingent resource best estimate(1) 3C Contingent resource high estimate(1) 2D Two dimensional 3D Three dimensional 1P Proved reserve estimate(1) (1) Refer to “Guidelines for Application of the Petroleum Resources Manage
Slide 20: For Information
For Information info@vintageenergy.com.au www.vintageenergy.com.au Drilling and seismic photos courtesy of Ensign Drilling and Terrex Seismic