Slide 1: Orbost gas plant
For personal use only Orbost gas plant 17 August 2015
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: FY15 key messages
For personal use only 1. 1 FY15 results reflect impacts of lower oil prices and revenue and long term upside from strongest ever Reserves and Resources and the foothold established in eastern Australia gas 2. 2 Gas strategy results have COE now set as a player in the eastern Australian gas market; –
Slide 4: FY15 results highlights
For personal use only • Revenue of $39.1 million, down 46% on lower oil prices and volumes • Significant non-operating items of $(62.2) million, mainly impairments to Tunisia announced at half year • Statutory net loss after tax $(63.5) million vs FY14 profit of $22.0 million • Underlying net loss a
Slide 5: FY15 financial summary
For personal use only $ million unless otherwise indicated FY15 FY 14 change Production MMbbl 0.48 0.59 (20)% Sales volume MMbbl 0.46 0.58 (21)% Sales revenue 39.1 72.3 (46)% Oil price average A$/bbl 85.48 124.10 (31)% Gross profit 14.1 46.2 (69)% Gross profit/sales revenue % 36 64 (44)% Net profit/
Slide 6: Statutory to underlying net profit reconciliation
For personal use only $ million, 12 months ending 30 June 2015 2014 Net profit/(loss) after tax (63.5) 22.0 Adjusted for: Discontinued operations 47.6 0.2 Impairments 22.7 3.1 Accounting gain on associate (0.3) - Fair value gain on disposal of available for sale investment (3.6) - Unrealised fair va
Slide 7: Underlying net profit after tax bridge
For personal use only $ million Underlying net profit after tax $ million 25.3 -22.5 -10.7 (1.3) +1.0 -1.3 -1.1 +1.3 - 0.9 +7.6 FY14 Sales revenue Sales revenue Cost of Sales Other revenue Exploration FX movement Growth related Tax expense FY15 - price - volume w/o costs 7
Slide 8: Oil segment underlying results
For personal use only FY 15 $ million Oil Sales revenue 39.1 Gross profit 14.1 Gross profit / Sales revenue 36% Exploration expense 2.3 General Admin1 3.0 Underlying EBITDA 17.0 Underlying PBT 8.1 Income tax (2.4) Oil Underlying NPAT 5.7 Gas1 and Corporate1 Underlying NPAT & consolidation (7.0) Coop
Slide 9: Cash and investments movement
For personal use only $ million Total cash & investments = 22.5 (11.3) $75.1m 26.0 Total cash & Investments (at (10.7) investments = fair value) $41.3m 1.5 51.1 (27.4) 49.1 1.9 Investments (at 15.4 0.3 39.4 fair value) Cash & Cash & deposits Operating Investing, deposits +$2.0m Financing & Other $-1
Slide 10: Safety: Total Recordable Case Frequency Rate
For personal use only Total Recordable Case Frequency Rate (TRCFR) Events per million hours worked (incl. Indonesia) • FY15 TRCFR1 of 4.2 compared to 2.1 at June 14 10 • Single lost time injury, 4 recordable incidents during the year • Continuous Improvement initiatives implemented 8 6 4 2 0 2005 20
Slide 11: Production
For personal use only 0.05 0.59 0.52 0.02 0.54 0.47 0.49 0.48 0.46 0.08 0.41 0.40 Indonesia Cooper Basin FY10 FY11 FY12 FY13 FY14 FY15 FY13 FY14 FY15 • FY15 production of 0.48 MMbbl vs revised guidance of 0.47 – 0.50 MMbbl • Cooper Basin development drilling occurred Q4 FY15 • Indonesia up 36 % year
Slide 12: Reserves and Contingent Resources
For personal use only Proved & Probable (2P) reserves Contingent Resources (2C) MMbbl MMboe 17.0 Tunisia 3.08 2.6 Indonesia 2.01 0.48 1.53 17.0 Gippsland Basin Cooper Basin 18.0 38.4 5.7 30-Jun-14 Production Revisions 30-Jun-15 30-Jun-13 30-Jun-14 30-Jun-15 • Highest year end Reserves yet for COE •
Slide 13: Cooper Basin oil
For personal use only PEL 92 key outcomes: • Oil production of 400 kbbls, total operating cost of $35/bbl including transport and royalties • 6 FY15 wells: 2 successful wells (Callawonga 10 & 11); 4 unsuccessful • 2P reserve additions replaced 120% of year’s production, (FY15 2P Reserves COE net est
Slide 14: Indonesia oil
For personal use only • Full year production up from 55 kbbls to 75 kbbls • Total operating cost of A$45/bbl including transport • Bunian-3 development well success : - TRM3 Sand developed and new K1 gas and oil pool discovered - KSO Reserves increased from 0.5 MMbbls to 1.7 MMbbls - daily productio
Slide 15: Gas strategy progress
For personal use only Portfolio in place • Acquired 50% of VIC/RL3 including Sole gas field • Acquired 50% of Orbost gas plant • Completed transfer of VIC/L 26, L27,L28 (BMG) Resources increased • Increased gas 2C Contingent Resources from 78 PJ to 197 PJ Project development advancing • Sole in FEED
Slide 16: FY16 guidance
For personal use only Expenditure Wells # Total Exp. Dev. Exp Dev 0.59 0.52 Australia 0.55 0.49 0.48 to 0.41 0.45 • Cooper Basin 7 2 5 2 2 • Otway Basin 1 1 - - - • Gippsland Basin2 252 25 - - - Indonesia 5 2 3 - 1 Tunisia 1 1 1 - Total 393 31 8 2 3 FY11 FY12 FY13 FY14 FY15 FY16G 1 Subject to divest
Slide 17: Funding strategy
For personal use only Funding strategy Operating • Funding analysis and strategy completed in phases including post-Gippsland cash flow developments (with Grant Samuel advising) 40 • Multiple funding options available including asset divestments and sell-downs, project finance, customer off-take pre
Slide 18: Summary and upcoming catalysts
For personal use only • FY15 results show impact of lower revenue and impairments and increased expenditure on gas • FY16 production around or above FY15 levels and expected to be cash generating: oil production costs are A$38/bbl • Fully funded for FY16 capital expenditure plans, including Sole thr
Slide 19: Appendices
For personal use only Appendices
Slide 20: Petroleum Reserves and Contingent Resources at June 2015
For personal use only Petroleum Reserves at 30 June 2015 (MMbbl) Category Proved (1P) Proved plus Probable (2P) Proved, Probable plus Possible (3P) Australia Indonesia Total Australia Indonesia Total Australia Indonesia Total Developed 0.84 0.62 1.46 1.16 1.02 2.18 1.48 1.61 3.09 Undeveloped 0.22 0.
Slide 21: Oil and gas business overview
For personal use only Callawonga Orbost gas plant Production ~500,000 bbls pa Gippsland Basin gas & liquids resources Total Operating Cost1: Sole gas field in FEED Cooper Basin A$35/bbl; Indo A$45 bbl Manta gas field opportunity Cooper Basin 65%, Indonesia 35% Negotiating gas sale agreements Focussi
Slide 22: FY16 activity schedule
For personal use only Location License Operator Sept Qtr Dec Qtr March Qtr June Qtr 2 development wells and 2 exploration wells, 2 PEL 92 Beach contingent wells, seismic processing Cooper PEL 90, 100,110 Senex 2 contingent wells & seismic processing PPL 207 Senex 2 contingent wells PEL 495/494, Otwa
Slide 23: Strategy and total shareholder return
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 24: 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 24
Slide 25: Gas resource types and Gippsland conventional gas
For personal use only Shale • Liquids content • Inerts content e.g. CO2, N2 • Size/economy of scale CSG • Community & approvals Tight conventional • Access to infrastructure • Distance/cost to market Conventional Gippsland Basin Gas: Sole & Manta 25
Slide 26: Otway and Gippsland Basin gas
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 27: Orbost Gas Hub and Gippsland 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% 27
Slide 28: Sole gas field and Orbost gas plant
For personal use only Sole Gas Field ( COE 50%, Santos 50% and Operator) • Contingent Resources (2C) of 211 PJ 1 • 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 verti
Slide 29: Manta gas project
For personal use only • Gas resource of 106 PJ 2C Contingent and Risked Prospective Resource of 10 PJ1 • 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 30: Working towards FID
For personal use only Working towards FID with a defined resources base and customer support Current position Next steps Project Sole project in FEED • Sole FID due Sept Qtr 2016 development BMG Business Case highlights Manta opportunity • Manta appraisal planning concurrent with JV review Resou
Slide 31: Indicative Gippsland gas production
For personal use only Indicative gross PJ 60 • Gippsland gas projects can produce approximately 320 PJ (gross) from current projects 50 • Peak production close to 50 PJ p.a and plateaus for 4-5 years 23 23 23 23 from FY22 40 • Gas price of $8/GJ generates $380 million revenue per annum in the platea
Slide 32: Indicative Sole and Manta revenue
For personal use only Early modelling pre-FEED shows promising economic Sole + Manta indicative gross revenue at forecast price range $ million profile Annual revenue Cumulative revenue generated • Prices of $6 - $9GJ anticipated and in line with current generated 700 3,500 market expectations Thous
Slide 33: 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 1 Indicative only and subject to review at key milestones and j
Slide 34: Indicative net production
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 decision FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 2 Existing pro
Slide 35: Otway Basin
For personal use only • Analysis of Jolly-1 and Bungaloo-1 well data in PEL 495 and PRL 32 has confirmed; – deep conventional gas play in Lower Sawpit Formation – Casterton Formation unconventional shale gas play – Application submitted for consolidation of PEL 494 and 495 into single licence and re
Slide 36: Tunisia divestment
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 Divestment plan • Portfolio to be divested as peripheral to focus on Australia and I
Slide 37: Reserves and resources calculation notes
For personal use only The approach for all reserve and resource calculations is consistent with the definitions and guidelines in the Society of Petroleum Engineers (SPE) 2007 Petroleum Resources Management System (PRMS). The resource estimate methodologies incorporate a range of uncertainty relatin
Slide 38: Glossary
$ Australian dollars unless specified otherwise bbls barrels For personal use only boe barrel of oil equivalent bopd barrel of oil per day EBITDA earnings before interest, tax, depreciation and amortisation FEED Front end engineering and design kbbls thousand barrels LTIFR Lost Time Injury Frequency