Otto Energy Limited · ASX:OEL
Otto Energy — 121 Oil and Gas Conference (May 2018)
20 slides from Otto Energy's conference presentation, May 1, 2018
Slide 1: 121 Oil and Gas Conference
For personal use only 121 OIL AND GAS CONFERENCE Gulf of Mexico Shelf oil and gas producer and explorer John Jetter Chairman 1 May 2018 ASX : OEL 1
Slide 2: Disclaimer
Disclaimer This presentation is provided for information purposes only and is not a disclosure document as defined under the Corporations Act 2001 (Cth) This presentation does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase, sale or issue of any secur
Slide 3: Why invest in Otto?
Why invest in Otto? Emerging ASX listed oil producer focused on Gulf of Mexico conventional projects For personal use only 1 We are a company with a clear strategy and an experienced team who understand risk and capital management in the oil and gas industry 2 We are building a portfolio of US conve
Slide 4: Why invest in Otto? (cont.)
Why invest in Otto? (cont.) Compelling valuation metrics For personal use only OTTO ENERGY | ASX : OEL 4
Slide 5: Why Gulf of Mexico Shelf?
Why Gulf of Mexico Shelf? Proven, conventional oil and gas province – new discoveries utilizing modern technology For personal use only • Proven prolific hydrocarbon province where technologies such as RTM seismic processing continue to create new opportunities • Low sovereign risk • High margin oil
Slide 6: South Marsh Island Production
South Marsh Island 71 Production SM 71 production commenced on the Gulf of Mexico Shelf in late March 2018 For personal use only • Otto farmed into SM 71 in 2016 and participated in the discovery well drilled in April/May 2016 • The joint venture installed its own operated tripod platform in Novembe
Slide 7: South Marsh Island Production (cont.)
South Marsh Island 71 Production (cont.) SM 71 production commenced on the Gulf of Mexico Shelf in late March 2018 For personal use only SM 71 Key Details Byron Energy (ASX:BYE) (operator) 50% JV Partners Otto Energy 50% • F1 D5 Sand 70’ perforation • F2 B65 Sand 72’ perforation • F3 D5 Sand 184’ pe
Slide 8: South Marsh Island Production (cont.)
South Marsh Island 71 Production (cont.) South Marsh Island 71 oil is a high margin product For personal use only • Production from SM 71 to deliver over US$3.6m per month operating cash flow to Otto Energy at current rates • Otto is currently trading on an Enterprise Value to EBITDA multiple of ~ 2
Slide 9: Delivering future growth
Delivering future growth For personal use only Bivouac Peak VR 232 New Ventures Alaska Commence drilling of the Commence drilling planning Continue to screen and Select the most high Louisiana near shore high impact for a exploration well at acquire value accretive impact, lowest risk Alaskan Bivoua
Slide 10: Bivouac Peak Exploration
Bivouac Peak Exploration Highly anticipated and high-impact exploration well planned in late 2018 For personal use only Bivouac Peak Key Details Byron Energy (ASX:BYE) (operator) 40% Otto Energy 45% JV Partners Metgasco (ASX: MEL) 10% Private US Entity 5% Approx. 17,500 feet (TVD) targeting upper an
Slide 11: Delivering future growth (cont.)
Delivering future growth (cont.) Focused strategy of portfolio growth within clearly defined region For personal use only Commence drilling planning for a exploration well in either the SM-74 or VR 232 block Bivouac Peak Continue to screen and acquire new value accretive opportunities leveraging Ott
Slide 12: Why Alaska?
Why Alaska? Proven, conventional oil and gas province – home of the largest conventional oil fields in North America For personal use only • Proven prolific hydrocarbon province which harbours North America’s largest conventional oil fields (Prudhoe Bay, Substitute an Alaskan scene Kuparak,etc.) • H
Slide 13: Pipeline of Opportunities
Pipeline of Opportunities Otto is an undervalued oil and gas company with an exciting pipeline of upcoming activities For personal use only 2018 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 SM 71 Low-cost production Gulf of Development drilling Additional Development drilling
Slide 14: Additional Information
For personal use only Additional Information 14
Slide 15: Corporate Snapshot
Corporate Snapshot Capital Structure Funding Position Shareholders For personal use only Fully paid ordinary shares 1.531b Cash (31 Mar 2018) US$3.3m Molton Holdings 20.0% Performance Rights 18.8m Convertible Note Liability US$8.2m Perennial Value 5.5% (repayable 30 June 2019) 3 Management Convertib
Slide 16: Board and Management
Board and Management For personal use only John Jetter – Non-Executive Ian Macliver – Non-Executive Ian Boserio – Non-Executive Chairman. Director. BComm, FCA, SF Fin, Director. LLB, BEc INSEAD FAICD BSc (Hons) Former MD/CEO J.P. Morgan Managing Director Grange Executive Technical Director of German
Slide 17: Proven Oil and Gas Experience
Proven Oil and Gas Experience Successfully operated/developed Galoc oil field and established a non-operated business For personal use only Acquired operatorship of Galoc oil field Increased working interest to 33.0% and assumed operatorship of field. Purchase price equivalent to Upgraded Galoc FPSO
Slide 18: Reserves & Prospective Resources
Reserves & Prospective Resources For personal use only The B65 interval, which was discovered in the SM 71 F2 well in December 2017, had a Prospective Resource at 30 June 2017 of 2.869 MMboe (Otto’s 50% working interest share). The F3 well also intersected the B55 and C10 zones which were not includ
Slide 19: Competent Persons and Cautionary Statements
Competent Persons and Cautionary Statements Competent Persons Statement The information in this report that relates to oil and gas resources in relation to Alaska was compiled by technical employees of Great Bear Petroleum, the Operator of the Alaska acreage, and subsequently reviewed by Mr Paul Sen
Slide 20: Address and Contact Info
For personal use only Address 32 Delhi Street West Perth WA 6005 Australia Contact Info Email: info@ottoenergy.com Web: www.ottoenergy.com Telephone + 61 8 6467 8800 20