High Peak Royalties Limited · ASX:HPR
High Peak Royalties — Investor Presentation (May 2018)
14 slides from High Peak Royalties's investor presentation, May 10, 2018
Slide 1: Unique Exposure to the East Coast Gas Shortage and the Rebound in Oil
For personal use only Unique Exposure to the East Coast Gas Shortage and the Rebound in Oil May 2018
Slide 2: Disclaimer
Disclaimer For personal use only The material in this presentation (material) is not and does not constitute an offer, invitation or recommendation to subscribe for, or purchase any security High Peak Royalties Limited (HPR) nor does it form the basis of any contract or commitment. HPR makes no repr
Slide 3: Corporate Overview
Corporate Overview For personal use only Board 0.07 2.00mm 0.06 Andy Carroll Non-Executive Chairman 1.50mm 0.05 1.00mm 0.04 Anthony Wooles Non-Executive Director .50mm 0.03 Geoffrey King Non-Executive Director 0 0.02 Director & Joint Company Jarrod White High Peak Royalties Limited (ASX:HPR) - Volum
Slide 4: Royalties Covering Australia’s Major Basins
Royalties Covering Australia’s Major Basins For personal use only Cooper Eromanga Basin Santos Browse Basin Beach Energy Conoco Phillips PetroChina Bowen Basin Karoon Gas Origin Energy Origin Energy Conoco Phillips Sinopec North Carnarvon Basin Quadrant Energy Karoon Gas Surat Basin Shell QGC Tokyo
Slide 5: East Coast Gas Shortage- High Peak Royalties provides a unique exposure
East Coast Gas Shortage- High Peak Royalties provides a unique exposure For personal use only • High Peak Royalties (ASX: HPR) has royalties over key East Coast gas plays % 72 • Queensland Coal Seam Gas to LNG • 52 Existing Peat Gas field with deep gas potential (operated by Origin Energy) 32 • Nort
Slide 6: Queensland Coal Seam Gas – Connect the dots
Queensland Coal Seam Gas – Connect the dots • For personal use only Origin Energy / APLNG pays Main Gas Pipeline to royalty on Peat gas field and is Gladstone undertaking a 3D seismic LNG Plants survey prior to drilling deep gas • Shell / QGC continues to develop the nearby areas • Central Petroleum
Slide 7: Unlocking the Amadeus – Dukas
Unlocking the Amadeus – Dukas For personal use only • Dukas is the largest onshore target (520 km2 closure) in Australia • Santos to drill early 2019 • 2.4 tcf gas and 493 bcf Helium • Helium has very high value (>10 x gas pricing)
Slide 8: Unlocking the Amadeus – Northern Gas Pipeline (NGP) a catalyst for drilling
Unlocking the Amadeus – Northern Gas Pipeline (NGP) a catalyst for drilling For personal use only 1.0% Overriding Royalty • NGP a catalyst to stimulate additional drilling Operators- Santos, Central Petroleum and in the Amadeus Basin. Jemena looking to Mosman Oil and Gas upgrade from 90 Tj to 700 Tj
Slide 9: Bass Strait – Longtom not long time
Bass Strait – Longtom not long time For personal use only • SGH Energy / Seven Group Holdings 0.3% Overriding Royalty Interest have flagged that the Longtom 3 and Operated by SGH Energy (Seven Group Holdings) Longtom 4 production wells are ready for production. Additional potential from Longtom 5 wh
Slide 10: Multiple oil royalties provide additional optionality
Multiple oil royalties provide additional optionality For personal use only • US royalties over wells 3.6/4.0% Net Profit Revenue Interest in the East Texas, Operated by Santos Permian and Texas Gulf Coast Basins • Tintaburra (ATP 299) Net Profit royalty is highly leveraged to oil price • Successful
Slide 11: Capital Management
Capital Management For personal use only • On the cusp of cash flow break even (no ongoing expense for optionality over large portfolio with active exploration + increasing production) • Weeks royalty to be monetized- Royalco Resources is undertaking a sales process for the 1.0% interest in the Week
Slide 12: Opportunity
Opportunity For personal use only • Fundamental benefits of a royalty company = no capital or operating expenditure • Survived the oil price downturn with a strong balance sheet (cash and shares) with no debt • Unrecognized beneficiary of increase in activity and price due to the East Coast Gas Shor
Slide 13: High Peak Favourably Positioned Relative to Other ASX listed Royalty Vehicles
High Peak Favourably Positioned Relative to Other ASX listed Royalty Vehicles For personal use only Fitzroy River (ASX:FZR) Royalco (ASX:RCO) High Peak (ASX.HPR) Mkt Cap $22.1m $14.0m $6.7m Net Cash $2.5m $2.3m $1.2m Enterprise Value $5.8m $11.7m $4.1m Key Commodity Exposure Oil & Gas Oil & Gas Oil
Slide 14: Summary of Royalty Interests
Summary of Royalty Interests For personal use only Project / Property Royalty Operator / State Location Production / Near Term Production Interest Owner Peat Gas Field (PL 101) QLD Onshore, Bowen Basin 2.10% Origin Longtom Gas Condensate Field (VIC L29) VIC Offshore, Gippsland Basin 0.30% SGH Energy
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