Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — Investor Presentation (October 2018)
31 slides from Amplitude Energy's investor presentation, Oct 18, 2018
Slide 1: Sole-4 subsea tree vessel – Investor update October 2018
Sole-4 subsea Seven tree vessel Oceans pipelay deployment at Crib Point, September 2018 Investor update October 2018
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 and purpose: This Presentation contains summary information about Cooper Energy and its activities as at the date of this Pr
Slide 3: Recent events
Recent events October 2018 Sales revenue FY18 1st Quarter results • Sales revenue up 7% on June quarter $ million, by quarter 21.8 • Gas production up 12% on June quarter 20.4 • Net cash of $50.6 million at 30 September 16.8 • 182 day offshore campaign concluded LTI free 15.8 14.4 Sole Gas Project •
Slide 4: Cooper Energy key features
Cooper Energy key features Gas for south-east • Existing supplier & customer base Indicative1 production outlook • 309 PJ 2P gas reserves at 30 June 2018, all local to S E Australia MMboe Australia: • 119 PJ uncontracted 2P reserves • Portfolio of gas contracts being built across utility and industr
Slide 5: Cooper Energy portfolio: focussed on south-east Australia
Cooper Energy portfolio: focussed on south-east Australia 309 PJ 2P and 125 PJ 2C gas and exploration acreage located close to market and infrastructure Cooper Basin: oil production • historical production source • production of ~230 kbbl oil pa • low cost operations Otway Basin onshore: gas explora
Slide 6: Gas marketing
Gas marketing CY19 gas contracting completed at current market prices after competitive tender. 119 PJ of uncontracted 2P reserves still available to market 2P gas reserve supply profile contracted & uncontracted Uncontracted PJ pa Contracted 12 11 11 10 9 9 8 10 22 11 Sole Commissioning 20 20 20 20
Slide 7: Southern states gas markets: ACCC view
Southern states gas markets: ACCC view Prices aligning with LNG netback 2019 expected prices Average monthly commodity prices offered for 2019 supply against Expected 2019 wholesale gas commodity prices in the East Coast Gas Market contemporaneous expectations of 2019 LNG netback prices (Southern St
Slide 8: Offshore Otway Basin
Offshore Otway Basin Gas production, new gas contracts commenced and further contracts under negotiation • Successful workover lifted Casino production from April Production FY18 FY17 • Rolling new gas contracts at market prices: Sales gas PJ 7.0 4.0 - current contract with Origin expires Dec 18; Co
Slide 9: Exploration: Otway Basin offshore
Exploration: Otway Basin offshore Proven gas province with infrastructure in place and close to markets A A’ A A’ • Several prospects on trend with producing fields high graded as potential candidates for next drilling campaign • Easily defined 3-way structural traps • Completed 3D seismic inversion
Slide 10: Sole Gas Project
Sole Gas Project ORBOST GAS PROCESSING FACILITY Works By - APA Group Plant Upgrade & Operations Engineering progressing Procurement package being delivered Site works construction progressing S7-Skandi Acergy Umbilical Lay Vessel HDD Umbilical Crossing - Complete Casing Size 10” Orbost Gas Pla
Slide 11: Sole Gas Project
Sole Gas Project 74% complete end-September, within schedule and budget Drilling & well completion • Workstream completed, Sole-3 & Sole-4 awaiting connection • Sole-4 flowback completed successfully on 5 August • Lab analysis of gas confirmed H2S 1,000 ppm, well within plant design, in line with So
Slide 12: Plans for FY19 – FY20
Plans for FY19 – FY20 Shift to completing Sole, realising potential and the additional value from the portfolio 1. Gas production • Increasing from 6 PJ to ~ 30 PJ pa in FY20 • Sole start-up delivers the targeted multi-gas hubs for optimising supply Otway Hub to south-east Australia Gippsland Hub 2.
Slide 13: Production outlook
Production outlook Gas production to increase more than 5 times from existing resources and projects Indicative1 production outlook MMboe Sole commences Henry development well 6 5 Excludes any Sole 4 commissioning gas. 30 PJ 32 PJ Commissioning planned to Gas 3 commence in Q4 FY19. 2 Oil 1 7 PJ 6 PJ
Slide 14: Update summary
Update summary 1. Revenue and cashflow growth is being generated by our gas contract book and high margin oil business 2. Uncontracted gas, in the right locations, with low cost structure, among most competitive gas suppliers to south-east Australia • Cooper Energy is among the lowest cost suppliers
Slide 15: Appendices
Shs wr) OOPER NERGY m7 Appendices
Slide 16: Cooper Energy snapshot
Cooper Energy snapshot Portfolio built around winning position on cost curve Key statistics* Proved & Probable Reserves 52.4 MMboe Contingent Resources (2C) 34.9 MMboe Production FY19 guidance 1.4 MMboe Market capitalisation $736 million Cooper Basin Net cash/(debt) $50.6 million Oil production Issu
Slide 17: Profile of contracted and uncontracted gas by project
Profile of contracted and uncontracted gas by project Existing reserves and resources offer growth over 6 years before exploration upside Gas sales profile by project Manta uncontracted contracted & uncontracted Sole uncontracted PJ pa Sole contracted Otway uncontracted Manta Otway contracted (subje
Slide 18: South-east Australia gas supply costs in 2020
South-east Australia1 gas supply costs in 2020* Cooper Energy projects are cost competitive for south-east Australia Delivered Melbourne city gate cost for gas from eastern Australia available for delivery to domestic market in 2020* AUD / GJ Typical peak daily quantity for 14 VIC/NSW/SA/TAS (2016)2
Slide 19: Minerva Gas Plant
Minerva Gas Plant Strategically located offering gains in gas price, processing, recovery rates & production 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 • Casino Henry Joint Vent
Slide 20: FY19 production and capex guidance
FY19 production and capex guidance Production Crude oil & by product Gas PJ Total MMboe Notes condensate bbl • Does not include gas production from Sole which is due to Total ~6 ~238,000 1.4 commence supplying gas to plant for commissioning in Q4 FY19 Indicative incurred* capital expenditure by regi
Slide 21: Gippsland Basin
Gippsland Basin Cost competitive resource, existing plant and Sole production planned for FY19 Sole Gas Project Key assets (all 100% equity and Operator) • FID 29 August 2017 • Sole Gas Project (VIC/L32) • Sole Gas Project proceeding to first gas sales mid-2019 • Manta gas resource (VIC/RL13,14,15)
Slide 22: Schematic of Sole-2, 3 and 4
Schematic of Sole-2, 3 and 4 Sole-4 development well 2018 Sole-2 appraisal well 2002 745 metres TVDSS Top reservoir depth: 753.1 metres TVDSS, 1084.5 metres MDRT Top reservoir depth: 770 metres MDRT Net pay thickness 115.5 metres measured along welllbore Net pay thickness: 69.3 metres (Net to Gross
Slide 23: Manta gas field
Manta gas field Contingent Resources plus significant deeper exploration potential Geological setting - a structural three-way dip, one-way fault closure against a NE-SW trending fault - Manta-1, exploration well drilled in 1984, and Manta-2A, production well drilled in 2006 - Gas, condensate and oi
Slide 24: Exploration: Gippsland Basin
Exploration: Gippsland Basin New prospectivity adjacent to existing Patricia Baleen infrastructure • VIC/P72 adjoins VIC/L21 (Cooper Energy 100%) which holds the depleted Patricia Baleen gas field and its associated subsea production infrastructure VIC/P72 connected to the Orbost Gas Plant Equity: 1
Slide 25: Cooper Basin FY18
Cooper Basin FY18 Production up 8%, high and increased cash margin of $52.47/bbl, Reserves maintained Key figures FY18 FY17 Production Crude oil kbbl 0.27 0.25 Average oil price A$/bbl 85.55 63.54 Direct operating cost A$/bbl 33.08 29.77 2P Reserves1 MMbbl oil Developed 1.4 1.1 Undeveloped 0.4 0.6 T
Slide 26: Otway Basin, Penola Trough onshore
Otway Basin, Penola Trough onshore Haselgrove drilling results confirm prospectivity for deep conventional gas South Australia • Haselgrove-3 discovery in adjoining PPL 62 has confirmed conventional gas prospectivity of the Sawpit Sandstone at depths below previous producing levels • SA government g
Slide 27: Reserves and Contingent Resources at 30 June 2018
Reserves and Contingent Resources at 30 June 2018 1P (Proved) 2P (Proved + Probable) 3P (Proved + Probable + Possible) Reserves Unit Cooper Otway Gippsland Total1 Cooper Otway Gippsland Total1 Cooper Otway Gippsland Total1 Developed Sales Gas PJ 0 15 0.0 15.2 0 26 0 26.4 0 36 0 36 Oil + Cond MMbbl 1
Slide 28: 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 29: Senior Management Team
Senior Management Team Company Secretary & General Manager, General Manager, General Manager, Legal Counsel Operations Development Commercial & Business Alison Evans Iain MacDougall Duncan Clegg Development Eddy Glavas General Manager, General Manager, Managing Director Chief Financial Officer Proje
Slide 30: Senior management
Senior management 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 in Alison Evans is an
Slide 31: Abbreviations
Abbreviations $, A$ Australian dollars unless specified otherwise Bbl barrels of oil Boe barrel of oil equivalent EBITDA earnings before interest, tax, depreciation and amortisation FEED Front end engineering and design kbbl thousand barrels m metres MMbbl million barrels of oil MMboe million barrel