Otto Energy Limited · ASX:OEL
Otto Energy — Non-Deal Roadshow (November 2011)
30 slides from Otto Energy's roadshow presentation, Nov 21, 2011
Slide 1: Investor Roadshow Presentation
For personal use only ASX : OEL Investor Roadshow Presentation November 2011 Gregor McNab, Chief Executive Officer Matthew Allen, Chief Financial Officer
Slide 2: Disclaimer
Disclaimer For personal use only This presentation does not constitute an offer to sell securities and is not a solicitation of an offer to buy securities. It is not to be distributed to third parties without the consent of Otto Energy Ltd (the “Company”). This presentation contains forward-looking
Slide 3: Otto Overview
Otto Overview Otto is a small-mid cap oil & gas company well positioned for growth: For personal use only • Quality asset base - High quality asset portfolio in the Philippines encompassing production, near-term development and exploration • Strong management and experienced technical teams – Proven
Slide 4: Focus, Quality and Discipline
Focus, Quality and Discipline For personal use only • Geographically focused with existing business in the Philippines and emerging opportunities in SE Asia and East Africa • Quality assets with a balance of production, near-term development and exploration • Maintaining disciplined approach - Ident
Slide 5: Our Current Business
Our Current Business For personal use only Quality asset base with multiple, material and independent growth targets • Established position in the Philippines and attractive investment environment supports value of existing business and focus for further growth • Otto acquired over 2,400 km2 of 3D a
Slide 6: Philippines – Strong Drivers to Maintain as Focus Area
Philippines – Strong Drivers to Maintain as Focus Area For personal use only • Pragmatic and helpful government working to attract oil & gas investment. • Established and competitive fiscal regime delivered through Service Contract structure • Continuous opportunity flow with new acreage release und
Slide 7: Philippines – Balanced Portfolio with Geographic Focus
Philippines – Balanced Portfolio with Geographic Focus SC14C – Galoc Field For personal use only • Increased to 33% direct working interest and field operatorship in September 2011 • Installation of improved mooring and riser system upgrade in 1Q2012 • Phase 2 development planning in progress SC55 •
Slide 8: East Africa – Growth to Complement Existing Portfolio
East Africa – Growth to Complement Existing Portfolio For personal use only East Africa represents a growth opportunity that compliments our core business in the Philippines • Recent large oil and gas discoveries in the region • Play type complements Otto’s existing portfolio • Provides increased sc
Slide 9: Building Capability to Grow and Deliver our Business
Building Capability to Grow and Deliver our Business For personal use only Attracting big company experience but maintaining small company speed • Management team highly experienced in Otto’s relevant growth target areas • Strong engineering, geoscience and commercial skills • International experien
Slide 10: Experienced Board and Management Team
Experienced Board and Management Team For personal use only DIRECTOR DIRECTOR CHAIRMAN DIRECTOR DIRECTOR IAN MACLIVER RUFINO BOMASANG RICK CRABB IAN BOSERIO JOHN JETTER B.Com, CA, F Fin, BSc (Min.Eng), MBE BJuris (Hons), BSc Hons LLB and BEc, MAICD LLB, MBA (Geophysics) INSEAD BSc Hons (Geology) EXP
Slide 11: Financial Strength
Financial Strength For personal use only Strong financial position and disciplined approach • US$28 million cash on hand as at 30 September 2011 • ~30% of market cap represented by cash position • Sustainable revenue from Galoc 33% working interest • ~200,000 bbls production per quarter • Progressin
Slide 12: Strong Share Price Performance against Peers
Strong Share Price Performance against Peers Otto has a tack record of delivering shareholder value and sustainable For personal use only outperformance within sector Relative stock price performance over past 24 months Total shareholder return over past 24 months² OEL CVN CUE CVN MEO NDO ROC TAP HZ
Slide 13: Several Significant Milestones in Near Term
Several Significant Milestones in Near Term For personal use only Current investment opportunity as Otto enters into a period of key deliverables with significant triggers for share price re-rating PRODUCTION SC14C: Galoc Reserves SC14C: Galoc Phase 2 recommissioning review final investment decision
Slide 14: Otto Energy: An Investment Opportunity
Otto Energy: An Investment Opportunity For personal use only Small-mid cap oil & gas company well positioned for growth Quality asset base across production, near-term development and exploration Strong management and experienced technical teams in Australia & Philippines Strong financial position a
Slide 15: Portfolio Overview
For personal use only Portfolio Overview 15
Slide 16: Otto Fundamentals / Capital Structure
Otto Fundamentals / Capital Structure For personal use only Capital Structure Fully paid ordinary shares 1.13b Unlisted options1 37.75m Performance Rights 27.00m Market capitalisation2 92m Cash (at September 2011) US$28.3m Debt (at September 2011) Nil Shareholders Molton Holdings 21.3% Santo Holding
Slide 17: SC14C: Overview
SC14C: Overview For personal use only Background • 33.0% direct ownership post-acquisition • Operator: Galoc Production Company WLL (GPC), 100% owned by Otto • Discovered 1981, production commenced Oct 2008 • 35o API oil, low sulphur, water depth 290m • Two production wells connected to FPSO • Impro
Slide 18: SC14C: Reserves upgrade and improved uptime
SC14C: Reserves upgrade and improved uptime For personal use only Production Q3 2011 Update Net OEL Share Current rate ~6,472 bopd Production 196,490 bbls Production to date 8.14 MMbbls Liftings 116,596 bbls Cash receipts from GPC US$6.87 million Revenue, Costs and Netback US$ Last Cargo (Sept 2011)
Slide 19: SC14C: Phase Development
SC14C: Phase 2 Development For personal use only Phase 2 Galoc North Prospect: • Phase II evaluation commenced with acquisition of • Areal Extent ~12km2 new 3D seismic and FEED • Potential HC Column ~240m • Potentially involves between 1 and 3 new wells • 5km tie-back to existing facilities Unlock 3
Slide 20: SC14C: Improved Mooring and Riser System
SC14C: Improved Mooring and Riser System For personal use only Project Outline: • New system to substantially increase operating uptime of the field (greater than 95% • Project is 32% complete and on track for successful delivery • Field outage planned in Q4 2011, coinciding with the typical peak in
Slide 21: SC14C: Recent Acquisition Overview
SC14C: Recent Acquisition Overview For personal use only • Acquisition of remaining shareholding interest in Galoc Diagram of Holdings Production Company WLL (GPC) from Vitol Group • Increasing GPC shareholding from 31% to 100% PRE ACQUISITION POST ACQUISITION • GPC has become a wholly owned subsidi
Slide 22: SC55: Overview
SC55: Overview Joint Venture Partners: For personal use only Name % OEL (through 100% subsidiary NorAsian Energy Ltd) 33.18 BHP Billiton Petroleum 60.00 Trans-Asia Oil & Energy Development Corporation 6.82 Work Program: Sub-Phase Date Commitment/cost(min US$) 4 Aug 11 – Aug 12 1 Deepwater Well/($3m)
Slide 23: SC55: BHP Farm-in
SC55: BHP Farm-in For personal use only BHP Billiton farm-in announced May 2011: • BHP Billiton to acquire 60% net participating interest, including operatorship of SC55 • Otto to retain 33.18% participating interest after BHP Billiton farm-in • Otto to receive: • Reimbursement of past costs • A car
Slide 24: SC55: Carbonate Gas Prospect & Lead Portfolio
SC55: Carbonate Gas Prospect & Lead Portfolio • An impressive portfolio of gas and condensate targets, aggregating into an emerging major For personal use only regional offshore trend, parallel to the island of Palawan, Philippines • Total unrisked potential Mean Recoverable Resources (Nido level ca
Slide 25: SC55: Cinco - Leading Drilling Candidate
SC55: Cinco - Leading Drilling Candidate For personal use only CINCO - A reefal /platform carbonate complex Malampaya Top Nido Depth Map Top Nido mss CI: 200m 3200 3400 3600 3800 4000 CINCO 4200 4400 4600 500 m 4800 Cinco Prospect (OEL WI post farm-down 33.18%) MALAMPAYA - Analogue Area of Closure 5
Slide 26: SC55: Hawkeye
SC55: Hawkeye For personal use only Hawkeye Prospect (OEL WI post farm-down 33.18%) Location Offshore, SW Palawan Water Depth 1,690 Metres Objective Depth 2,800 Metres 50 km2 Hawkeye Prospect Area of Closure Up to 500m column height Areal Closure: 50km2 STOIIP 87-484-1539 (mean of 680 MMbbls) (Succe
Slide 27: Philippines Visayan Exploration
Philippines Visayan Exploration For personal use only Interpretation/ Licence Activity Prospect Maturation New 100km Follow-up of Duhat-1/1A drilling SC69 SC51 Northern Block SC51 2D Seismic in Q2 2011 79% WI 5280km2 40% WI 1660km2 Completed 3D seismic New 229km² SC69 acquisition in June. Now 3D Sei
Slide 28: SC51: Duhat-1 follow-up
SC51: Duhat-1 follow-up For personal use only Duhat-1 is the first valid structural test conducted on the island of Leyte, an area of well-known and documented oil seeps. Duhat-1 Prospect: Drilling the San Isidro Anticline OEL WI 40% post farm-down Duhat-1 14.5 km2 370m closure Location On-shore, NW
Slide 29: SC69: Maturing to drillable status
SC69: Maturing to drillable status For personal use only OEL WI 79% Lampos Lampos South Duhat-1 Location Off-shore Visayan Basin Presently Drilling Water Depth 740 Metres 714 Metres Objective Depth 1,250 Metres 1,350 Metres Closure Area 14.2 km2 9.8 km2 SC69 Closure Height 300m 330m STOIIP1 15-121-4
Slide 30: Thank You
For personal use only THANK YOU Otto Energy Ltd 32 Delhi Street West Perth Western Australia 6005 Telephone: +61 8 6467 8800 Facsimile: +61 8 6467 8801 info@ottoenergy.com 30