Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — Investor Presentation (June 2019)
31 slides from Amplitude Energy's investor presentation, Jun 20, 2019
Slide 1: Investor pack June 2019
Investor pack June 2019 For personal use only j
Slide 2: Important Notice – Disclaimer
Important Notice – Disclaimer This investor presentation (“Presentation”) is issued by Cooper Energy Limited ABN 93 096 170 295 (“Cooper Energy” or “COE”). Summary information: This Presentation contains summary information about Cooper Energy and its activities as at the date of this Presentation a
Slide 3: Cooper Energy finds, develops and commercialises oil and gas
Cooper Energy finds, develops and commercialises oil and gas. For personal use only We do this with care and strive to provide attractive returns for our shareholders and good commercial outcomes for our customers.
Slide 4: Snapshot
Snapshot For personal use only Cooper Energy is an ASX 200 E & P company that generates the majority of its revenue from a portfolio purpose-built for gas supply opportunities foreseen emerging in south-east Australia. Cooper Basin • Oil production Key statistics* • Exploration acreage Proved & Prob
Slide 5: Update on recent developments
Update on recent developments Revenue up, Sole moving to completion, gas exploration and contracts For personal use only Sales revenue YTD to 31 March $ million Financial 60 • March quarter revenue up 43%; new gas contracts commenced 1 Jan 2019 • March YTD sales revenue up 21% 50 20.6 • Full year pr
Slide 6: Strategy origins
Strategy origins Value-creation opportunity identified in 2012 for gas supply to south-east Australia For personal use only Forecast gap between available supply and forecast demand identified as business building opportunity Source: AEMO 6
Slide 7: Gas market outlook
Gas market outlook Gap between local production and supply creating favourable market for south-east Australian gas For personal use only AEMO forecast of south-east Australian gas production, demand and supply • South-east Australia is reliant on Queensland PJ gas to meet shortfall between local pr
Slide 8: Southern states gas prices: ACCC view
Southern states gas prices: ACCC view For personal use only Gas price and LNG netback trend 2020 expected prices Average monthly commodity prices offered for 2019 supply against Expected 2020 wholesale gas commodity prices in the East Coast Gas Market contemporaneous expectations of 2019 LNG netback
Slide 9: Gas asset portfolio
Gas asset portfolio Assets acquired for competitiveness in delivered gas price to south-east Australia For personal use only Otway Hub: gas production, development & exploration • Casino Henry gas production (Operator, 50% interest) • Minerva gas production (10%) Otway Hub • VIC/P44 exploration acre
Slide 10: Gas supply from 2P reserves and revenue upside from new supply agreements
Gas supply from 2P reserves 3 year growth profile commencing and revenue upside from new supply agreements For personal use only Gas sales profile by project • Commencement of gas production from Sole to contracted & uncontracted Uncontracted trigger ~4 times uplift in gas sales PJ pa • Existing con
Slide 11: Operations: offshore Otway Basin
Operations: offshore Otway Basin Operated gas production, development and exploration in proven and competitive gas province For personal use only FY19 YTD FY18 YTD Production March 31 March 31 Sales gas PJ comprised of: 4.92 5.37 Casino Henry 4.15 4.34 Minerva 0.77 1.03 Condensate kbbl 3.5 5.0 2P R
Slide 12: Offshore Otway Basin exploration
Offshore Otway Basin exploration Two leading targets identified for drilling from July 2019 For personal use only • Subsurface / structures well defined on 3D seismic data • 2 exploration wells, Cooper Energy share (50%) = ~$40 million • Annie: high quality Waarre C primary reservoir target (as in M
Slide 13: Gippsland Basin development
Gippsland Basin development Cost competitive resource, existing plant and Sole production planned for FY20 For personal use only Sole Gas Project (100% interest) • 24 PJ per annum • Gas project involving offshore development by Cooper Energy and Orbost Gas Plant upgrade by APA • Offshore project con
Slide 14: Sole Gas Project
Sole Gas Project 99% complete and within budget. Offshore project construction completed. For personal use only Offshore project Onshore (APA) Shore Crossing Production wells Umbilical Pipeline Orbost Gas Plant Completed Completed Completed □ To be completed: □ To be completed: • Gas compositi
Slide 15: Manta gas and liquids resource
Manta gas and liquids resource Contingent Resource with exploration potential For personal use only Manta Contingent Resource1 estimate 1C 2C 3C Oil MMbbl 0.0 0.6 1.2 Condensate MMbbl 1.7 2.6 4.0 Gas PJ 68 106 165 Manta unrisked Prospective Resource1 estimate Low (P90) Best (P50) High (P10) Oil MMbb
Slide 16: Exploration: Gippsland Basin
Exploration: Gippsland Basin New prospectivity adjacent to existing Patricia Baleen infrastructure For personal use only • VIC/P72 adjoins VIC/L21 (Cooper Energy 100%) which holds the depleted Patricia Baleen gas field and its associated subsea production infrastructure connected to the Orbost Gas P
Slide 17: Operations: Cooper Basin
Operations: Cooper Basin Low cost, cash-generating Western Flank oil production For personal use only Production FY19 YTD FY18 YTD Crude oil MMbbl: 0.18 0.21 Cost per bbl A$ 37.25 33.03 2P Reserves Developed Undeveloped Total Crude oil 1.4 0.4 1.8 • Low production cost, high cash margin, oil product
Slide 18: Otway Basin: Penola Trough onshore
Otway Basin: Penola Trough onshore Dombey-1 to be drilled to evaluate Pretty Hill Formation and Sawpit Sandstone potential For personal use only South Australia • Haselgrove-3 discovery in adjoining PPL 62 confirmed conventional gas prospectivity of Sawpit Sandstone at depths below previous producin
Slide 19: Projects pipeline
Projects pipeline 5 year development program that can lift gas production more than 10 times FY19 levels For personal use only FY19 FY20 FY21 FY22 FY23 FY24 Sole construct Sole:1 production 68TJ/d (~24 PJ per annum) Minerva Gas Plant: 2 acquire, integrate and operate Henry3 development well: product
Slide 20: Expected production from existing 2P Reserves and 2C Resource
Expected production from existing 2P Reserves and 2C Resource Advent of Gippsland gas production to deliver step change in production and cash generation For personal use only Indicative Cooper Energy oil and gas production million boe 10 • Sole gas field scheduled to commence after completion of of
Slide 21: Funding
Funding Redetermination released funds and increased available debt For personal use only FY19 first half $ million 31 March 19 30 Jun 18 • Redetermination of $250 million project finance facility which recognises Sole project performance and outlook Cash 151.6 236.9 • Variations to key terms includ
Slide 22: Near term drilling and development
Near term drilling and development Gas exploration drilling offshore and onshore. Cooper Basin oil appraisal. For personal use only Location Activity/Project June July August September October Otway Exploration: Otway well 1 Otway well 2 Offshore VIC/P44 & VIC/L24 Otway Exploration Dombey-1 Onshore
Slide 23: Summary
Summary 1. On the cusp of transformative uplift in production and cash flow For personal use only • Commencement of Sole gas sales expected on APA plant completion • Sole to add 24 PJ to existing gas production of 6 PJ pa 2. Price and volume exposure to east coast gas • FY19 H2 to benefit from new g
Slide 24: Appendices
For personal use only Appendices
Slide 25: Profile of contracted and uncontracted gas by project
Profile of contracted and uncontracted gas by project Existing reserves and resources offer growth before exploration upside For personal use only Gas sales profile by project contracted & uncontracted PJ pa Manta uncontracted Manta (subject to appraisal well and FID) 25 24 18 Sole uncontracted 18 1
Slide 26: Offshore Otway Basin prospects
Offshore Otway Basin prospects Prospect rich and favourable economics due to pipeline and plant access Seismic inversion and subsequent studies identified 2 leading candidates for drilling For personal use only Gross unrisked Prospective Resource2 (billion cubic feet, Cooper Energy share 50%) Prospe
Slide 27: Minerva Gas Plant
Minerva Gas Plant Strategically located offering gains in gas price, processing, recovery rates & production For personal use only Minerva Gas Plant (10%)* * Equity to increase to 50% on completion of acquisition by Casino Minerva Gas Plant acquisition Henry Joint Venture as announced 1 May 2018 • C
Slide 28: Reserves and Contingent Resources at June 2018
Reserves and Contingent Resources at 30 June 2018 1P (Proved) 2P (Proved + Probable) 3P (Proved + Probable + Possible) Reserves Unit For personal use only Cooper Otway Gippsland Total1 Cooper Otway Gippsland Total1 Cooper Otway Gippsland Total1 Developed Sales Gas PJ 0 15 0.0 15 0 26 0 26 0 36 0 36
Slide 29: Senior management
Senior management For personal use only Managing Director General Manager, Development Company Secretary & General Manager, Commercial David Maxwell Duncan Clegg Legal Counsel & Business Development Alison Evans Eddy Glavas David Maxwell has over 30 years’ Duncan Clegg has over 35 years’ experience
Slide 30: Notes on calculation of Reserves and Resources
Notes on calculation of Reserves and Resources Notes on calculation of Reserves and Contingent Resources Cooper Energy has completed its own estimation of Reserves and Contingent Resources for its fully-operated Gippsland Basin assets, and elsewhere based on information provided by the permit Operat
Slide 31: Abbreviations
Abbreviations $, A$ Australian dollars unless specified otherwise For personal use only APA APA Group Bbl barrels of oil Boe barrel of oil equivalent EBITDA earnings before interest, tax, depreciation and amortisation FEED Front end engineering and design FID Final Investment Decision kbbl thousand