Amplitude Energy Limited · ASX:AEL
Amplitude Energy — H1 FY2015 Earnings Presentation
34 slides from Amplitude Energy's earnings presentation, Feb 11, 2016
Slide 1: 2015 First Half Results
Orbost gas plant 2015 First Half Results 16 February 2015
Slide 2: Webcast and conference call details
Webcast: http://event.on24.com/r.htm?e=937537&s=1&k=D1CDC76EC6C5CC0372C19651B0F32E4A Conference call: Conference ID number: 8138 1786 Australia: Toll free: 1800 123 296 International dial- in: Toll: + 61 2 8038 5221 - (can be used if dialing from international location) Toll free: Canada 1855 5616 7
Slide 3: Important information and disclaimer
The information in this presentation: • 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 situation of investors. •
Slide 4: Substantial oil price decline had a significant impact
Substantial oil price decline had a significant impact. 1. First Half results include lower sales revenue, impact of impairments and expenditure to acquire and develop gas resources – all producing operations are cash positive at current oil prices. 2. Gas strategy implementation is well underway, w
Slide 5: First half highlights
• Revenue of $23.0 million, down 38% on lower oil prices and volumes • Significant non-operating items of $(58.9) million, mainly impairments to Tunisia and listed investments flowing from market conditions • Statutory net loss after tax $(58.0) million vs H1 14 profit of $13.6 million • Underlying
Slide 6: Financial summary H1 15 vs H1 14
$ million unless otherwise indicated H1 15 H1 14 Production MMbbl 0.25 0.30 ▼ - 17% Sales volume MMbbl 0.24 0.29 ▼ - 17% Oil price average A$/bbl 97.43 126.50 ▼ - 23% Sales revenue 23.0 37.0 ▼ - 38% Other revenue 1.1 0.7 ▲ 57% Net profit after tax (58.0) 13.6 ▼ - 526% Underlying NPAT 0.9 13.6 ▼ - 93
Slide 7: Underlying net profit after tax reconciliation
$ million 6 months ending 31 December: 2014 2013 Net profit (loss) after tax (58.0) 13.6 Adjusted for: Impairment of exploration assets held for sale 47.5 -- Impairment of oil properties 6.1 - Impairment of available for sale financial assets 6.1 - Accounting gain on purchase (0.3) - Tax impact of a
Slide 8: Underlying net profit after tax bridge
Underlying $ million net profit after tax $ million 13.6 -8.5 -5.5 0.9 +3.8 -1.1 -1.0 -0.6 -0.8 +1.0 H1 14 Sales Sales Amortisation Accretion Exploration Admin & Royalties Tax expense H1 15 revenue - revenue - w/o other price volume 1 8
Slide 9: Oil segment and underlying results
H1 15 $ million Oil Sales revenue 23.0 Gross profit 9.6 Exploration expense 1.2 Admin and other 2.5 Underlying EBITDA 10.1 Underlying EBITDA/Sales Revenue 44.0% Underlying PBT 5.7 Income tax (1.7) Oil Underlying NPAT 4.0 Gas and Corporate Underlying NPAT & consolidation (3.1) Cooper Energy total Und
Slide 10: Total cash and investments
$ million Total cash & investments = $75.1m 26.0 Investments Total cash & (at fair value) 8.3 6.0 investments 5.1 = $53.1m 49.1 15.71 0.8 47.1 10.6 Investments 0 (at fair value) 0.9 37.4 Cash & deposits Cash & Operating Investing, deposits $-2.0m Financing & Other $-9.7m Jun-14 Operations General Ta
Slide 11: Oil production and gas development focus
Callawonga Orbost gas plant Production ~500,000 bbls pa Gippsland Basin gas & liquids resources Total Operating Cost1: Sole gas field2 in pre-FEED Cooper Basin A$35/bbl, Indo A$50 bbl BMG business case development Cooper Basin 87%, Indonesia 13% Working with buyers on gas contracts Focussing on low
Slide 12: Half year production consistent with forecast
Half year production Half year production by region '000 bbl six months to 31 December ‘000 bbl six months to 31 December 29 301 31 10 246 Indonesia 217 225 213 Cooper Basin 271 203 215 2010 2011 2012 2013 2014 2012 2013 2014 • Cooper Basin: Rincon commissioned, reduced • Consistent with forecast dr
Slide 13: Cooper Basin operations
• H1 15 oil production of 215 kbbls, total operating cost of $36/bbl including transport and royalties • Worrior long term production test Patchawarra Formation oil pool discovery underway • Completion of reprocessing of three 3D seismic surveys in PRL 85 -104 (PEL 92) to identify drilling targets •
Slide 14: Indonesia operations
• First Half production up from 29.1 to 31.0 kbbls • H1 15 total operating cost of A$54/bbl including transport • Tangai-3 successful workover increased production and 2 new horizons successfully tested • Bunian-3, now drilling and expected to test in Feb 15 • Farm-out of Sumbagsel and Merangin III
Slide 15: East coast gas demand and supply strategy
PJ 800 Forecast east coast domestic demand Contracted 700 supply from: 600 Surat-Bowen 500 New supply contract opportunity Bass 400 Otway 300 Gippsland 200 100 Cooper 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Source: EnergyQuest • Cooper Energy strat
Slide 16: Gas strategy progress
Sole gas field & Orbost gas plant • Acquired 50% of VIC /RL3 incl. Sole gas field1 • Acquired 50% of Orbost gas plant1 • Expect completion April 2015 BMG gas and liquids field • Registration of transfer of 65% interest and operatorship • Added 2C Contingent Resources of 18 million boe (COE share)2;
Slide 17: Orbost (Patricia-Baleen) Gas Plant hub
Orbost (Patricia-Baleen) Gas Plant Becoming a hub for Gippsland gas supply to Eastern Australia BMG (65% and operator) Sole (50%) j Longtom (Nexus) Patricia-Baleen (Santos) | Orbost Gas Hub 60%) ew S. PIPELINE S |) Cooper Energy interests . ) BAS licences (COE 22.9%) + &® Cas field @® 0 field — Exis
Slide 18: Sole and BMG project development timeline
2015 2016 2017 M J S D M J S D M J S D Sole Project development Pre-FEED FEED Construct for late 2018/early 2019 start- up Transaction Complete FID Contingent Resource added 2P Reserves-Sole BMG Project development Business Case Pre-FEED FEED Appraisal drilling Confirm BMG resource Manta3 drill rang
Slide 19: FY15 guidance and outlook
0.30 Outlook Exploration Development 0.59 0.52 0.50 FY15 H2 15 FY 15 H2 15 FY 15 H2 15 0.49 to 0.56 Australia 0.41 Cooper 7 3 2 1 5 2 Otway 1 - 1 - - - 0.25 Gippsland 8 7 3 2 5 5 Indonesia 8 4 2 - 5 4 Tunisia 2 1 2 1 - - FY11 FY12 FY13 FY14 FY15G Total 26 16 11 5 15 11 • Guidance for production of 0
Slide 20: Activity by location and permit
Location License Operator March Qtr June Qtr 2-3 development wells and 2 PEL 92 Beach Repro. exploration wells Cooper PEL 90, 100,110 Senex AVO/Inversion 3D seismic processing ongoing PPL 207 Senex 1 Worrior development/appraisal well PEL 495 /4 94, Jolly-1 and Bungaloo-1 studies Otway Beach G & G S
Slide 21: Summary and outlook
• FY15 First Half results show impact of lower revenue and impairments and increased expenditure on gas • Oil production costs are A$36/bbl1, all operations are cash positive at current oil prices • Production expected to increase in Second Half due to appraisal and development drilling, FY15 produc
Slide 22: Appendices contents
• Guidance revision analysis • Developing a gas business around a multi-basin portfolio • Sole gas field • BMG gas and liquids resource • Orbost Gas Plant • Otway basin • Tunisia • Reserves and resources • Notes on reserves and resources • Abbreviations • Contact details 22
Slide 23: FY15 capex guidance
FY15 Capex guidance by type $ million Guidance Exploration Development 24 Exploration FY15 FY15 FY15 FY15 FY15 FY15 original revised original revised original revised 11 Australia Development 16 15 Cooper 17 7 7 2 10 5 Original Revised Otway 1 1 1 1 - - Gippsland 6 8 6 3 6 5 FY15 Capex guidance: oil
Slide 24: Developing a gas business around a multi-basin portfolio
Market • Market-driven approach • Building customer relationships • Pipeline transport expertise Cooper Basin • Existing source of supply • Extensive infrastructure Gippsland Basin Otway Basin • Ideally located: close to markets and pipelines • Eastern Australia’s largest gas supply source • Convent
Slide 25: Sole gas field
• Agreement to acquire 50% of VIC RL/3 and Orbost gas plant • Sole gas field to FEED on completion for development to supply gas from late 2018/early 2019 • Anticipate addition of approximately 100 PJ Contingent Resources (2C) on completion (200 PJ+ in gross terms) • Acquisition cost $27.5 million:
Slide 26: BMG gas and liquids resource
• Acquired 65% interest and operatorship at low cost – $1 million initial payment and – $5 million conditional on hydrocarbon production • Sub-sea infrastructure in place from previous life as oil project with gas injection • Pre-acquisition review indicates commercial gas development probable at fo
Slide 27: Orbost Gas Plant
• Acquiring 50% of Orbost (Patricia-Baleen) gas plant • Connected to Eastern Australian gas pipeline • Currently contracted to process gas from Longtom to end 2018 (COE not participating in current Longtom processing) • Capacity of approximately 90 TJ/day • Plant modifications for processing Sole ga
Slide 28: Otway Basin
• Extensive acreage position across Penola Trough • Jolly-1 and Bungaloo-1 deep wells drilled FY14 – confirmed location of Casterton Formation unconventional play – identified deep conventional gas play – shale gas potential reinforced • Analysis of core and other data has confirmed opportunity for
Slide 29: Tunisia
• 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 Indonesia oil and Austr
Slide 30: Reserves and contingent resources
Proved & Probable (2P) reserves Contingent Resources (2C) MMbbl MMboe 2.16 0.59 17.0 0.45 2.01 Tunisia 18.0 Gippsland Basin Cooper Basin 5.7 30-Jun-13 0 Production 0 Revisions 30-Jun-14 30-Jun-13 30-Jun-14 Reserves Contingent Resources2 MMbbl at 30 June 2014 1P 2P 3P MMboe at 30 June 2014 1C 2C 3C C
Slide 31: Notes on reserves and resources
Reserves include Cooper Energy’s share of future crude fuel usage in the Cooper Basin. The estimated fuel usage is; 1P 0.02 MMbbl, 2P 0.05 MMbbl and 3P 0.08 MMbbl. There is no produced crude oil used for fuel in Indonesia. Categories are aggregated by arithmetic summation. Basin and Company totals a
Slide 32: Abbreviations
bbls barrels of oil boe barrel of oil equivalent bopd barrel of oil per day EBITDA earnings before interest, tax, depreciation and amortisation kbbls thousand barrels LTIFR Lost Time Injury Frequency Rate. Lost Time Incidents per million man hours worked LTI Lost Time Injury MMbbl million barrels of
Slide 33: Contact details
Website: cooperenergy.com.au Investor relations: Don Murchland +61 439 300932 donm@cooperenergy.com.au Address: Cooper Energy Limited Level 10 60 Waymouth St Adelaide SA 5000 + 61 8 8100 4900 33
Slide 34: Shbd
Shbd r] OOPER NERGY mm