Otto Energy Limited · ASX:OEL
Otto Energy — Good Oil Conference Perth 2015
27 slides from Otto Energy's conference presentation, Sep 3, 2015
Slide 1: Good Oil Conference Perth Investor Presentation
For personal use only GOOD OIL CONFERENCE PERTH INVESTOR PRESENTATION September 2015 ASX: OEL
Slide 2: Disclaimer
Disclaimer For personal use only This presentation does not conditions in various countries and Prospective Resource Cautionary Management System to define constitute an offer to sell securities regions, political risks, project delay Statement resource classification and volumes. and is not a solic
Slide 3: Otto value proposition
Otto value proposition Cash backed with funded appraisal and exploration activity For personal use only Strong Financial Alaskan North Philippines Tanzania Position Slope Appraisal Exploration Exploration > US$41M IN CASH AND INITIAL ENTRY INTO PROVEN FIRST DEEPWATER WELL AT HIGHLY PROSPECTIVE DEBT
Slide 4: Otto has delivered shareholder value
Otto has delivered shareholder value Otto has consistently managed cost and delivered value For personal use only to shareholders despite operating and oil price challenges Galoc Phase II Galoc Capital Hawkeye Development Divestment Return Operational US$205MM DEVELOPMENT TIMELY EXIT AT PEAK OF OIL
Slide 5: Otto has consistently delivered value to shareholders despite oil price challenges
Otto has consistently delivered value to shareholders despite oil price challenges For personal use only BHPB Termination Agreement secured Galoc Divestment Completed 6.4 cps distribution to shareholders Galoc Phase II Commissioned Hawkeye Exploration Well Completed 5
Slide 6: High Impact Plays Being Targeted
High Impact Plays Being Targeted For personal use only PHILIPPINES ALASKA EXPLORATION SC55 • 78.18% WI and Operator • Deep water exploration • Hawkeye proves petroleum system • Follow-up of carbonate prospects ALASKAN NORTH and leads to be undertaken SLOPE APPRAISAL • Staged entry model allows Otto
Slide 7: Philippines
For personal use only Philippines SC55 (OTTO 78.18% OPERATOR) 7
Slide 8: Hawkeye Exploration Well
Hawkeye Exploration Well Hawkeye Operations – New Petroleum System Well drilled in 19.5 days to 2,920 metres Identified in SW Palawan Total well cost <US$25 million For personal use only Otto fully carried on cost of well Hawkeye Outcomes Hydrocarbons (gas and associated liquids) logged between 2,71
Slide 9: Alaska
For personal use only Alaska ALASKAN NORTH SLOPE (OTTO 8 – 10.8%, NON-OPERATOR) 9
Slide 10: Why Alaskan North Slope?
Why Alaskan North Slope? For personal use only The North Slope of Alaska (NSA) contains the two largest conventional oil fields in Prolific Basin North America (Prudhoe Bay and Kuparuk River). Low Sovereign risk USA is a stable investment country and rated as low sovereign risk. Low royalty rates of
Slide 11: Great Bear Petroleum
Great Bear Petroleum For personal use only Great Bear is a private exploration company F Acquisition and processing of approximately focused on exploring and developing conventional 1700km2 of 3D seismic data. and unconventional resources on the North Slope F Drilling of 2 unconventional stratigraph
Slide 12: Drilling Operations at Alkaid-1
Drilling Operations at Alkaid-1 (March 2015) For personal use only 12
Slide 13: Alaskan North Slope is home to some of the largest oil fields in North America
Alaskan North Slope is home to some of the largest oil fields in North America… For personal use only Caelus Energy: Repsol/Armstrong 2015 results Sanctioned Nuna project. Constucting East Alpine oil pool delineated gravel pad and road for NDS drill site. - 15000 acres, ~80km2 Expected to come onlin
Slide 14: Great Bear Acreage is in a great address
Great Bear Acreage is in a great address For personal use only Oil exists in multiple play types on the Alaskan North Slope and has already been discovered within Billion Barrel Oil Fields Of the North Slope the GBP acreage Multi Level Structural and The key challenge Stratigraphic Oil Targets away
Slide 15: Established Oil Infrastructure
Established Oil Infrastructure For personal use only TAPS provides regulated open access to domestic and international markets, one million barrels per day of spare capacity. 15 Source: U.S. Energy Information Administration, Denali Pipeline and Alaska Pipeline websites.
Slide 16: Commercial Deal with Great Bear Petroleum
Commercial Deal with Great Bear Petroleum For personal use only OVER ACRES TRANSACTION OPTION ACRES COMBINED Amount $20.0mm Various Stages $25mm Subject to terms $45.0mm Deposit Land $0.5mm Paid Option over 22,804 gross acres that include the Alkaid-1 well and numerous prospects. Option must Land Co
Slide 17: Commercial Deal with Great Bear Petroleum
Commercial Deal with Great Bear Petroleum For personal use only Over Acres Transaction Option Acres HAL JV Area: 8,271 net acres & WI 8.0% HAL JV Area: 1,824 net acres & WI 8.0% Non HAL JV Area: 50,064 net acres & WI 10.8% Halliburton JV Project Area Option Acreage 22,804 acres 17
Slide 18: Tanzania
For personal use only Tanzania (OTTO 50% WI) 18
Slide 19: Otto's Tanzania Position targeting East African Rift System Oil Play
Otto’s Tanzania Position targeting HISTORY East African Rift System Oil Play Pre 2006 No material exploration success EXPLORATION SUCCESS AND OTTO ACREAGE For personal use only 2006 First discovery in Uganda South Omo Block (Ethiopia) – being tested by Tullow 2008-09 Further discoveries result in >1
Slide 20: Tanzania: Kito Prospect
Tanzania (Otto 50% WI): Kito Prospect Kito prospect drilling in 2016 Area of Closure 50 km2 Up to 250m column height For personal use only Reservoir type Miocene (Neogene) Mature oil kitchen with Direct charge access Objective Depth 900 – 1,300 metres to Kito STOIIP 193 – 596 – 1,602 MMbbls (Low – B
Slide 21: Otto Forward Activity Plan
Otto Forward Activity Plan For personal use only 2015 2016 3D seismic (~1,700 km2) Evaluate GBP Acreage Alaska and Entry Drilling Program (Jan – Apr 2016) Philippines Evaluate Hawkeye Potential further Results activity Tanzania Farm-down high Drilling working interest 21
Slide 22: Additional Information
For personal use only Additional Information 22
Slide 23: Cashflow Projections
Cashflow Projections June 2015-Dec 2016 For personal use only 50 45 40 10 8 Intended to 6.5 farm-down 35 cost exposure 5 US$ Millions 30 25 41 20 (AUD 4.9cps) Further Alaska Spend 15 28 (AUD 3.3cps) 10 5 - Cash 30 June 2015 Alaska Entry Hawkeye Well Tanzania Drilling G&A 23
Slide 24: Strong Capital Structure
Strong Capital Structure: Cash backed with fully funded exploration For personal use only Capital Structure Fully paid ordinary shares 1.18b Unlisted options 1 8.0m Performance Rights 13.775m Market capitalisation2 A$40m Cash (Jun 2015) US$41.2m Debt (Jun 2015) US$0m Shareholders Molton Holdings 20.
Slide 25: Experienced Board & Management Team
Experienced Board & Management Team For personal use only Board of Directors Senior Management Rick Crabb – Chairman Matthew Allen – Managing Director & CEO BJuris (Hons), LLB, MBA BBus, FCA, FFin, GAICD Former energy, resources and corporate lawyer with over Global exposure to the upstream oil and
Slide 26: Further Information
Further Information For personal use only View the latest ASX View the latest View the latest Announcements Annual Reports Analyst Research View the latest View the Investor View Share Price BRR Media Fact Sheet Information www.ottoenergy.com.au 26
Slide 27: Investor Queries
Investor Queries: Media: For personal use only MATTHEW ALLEN MATTHEW GERBER OR RICHARD GLASS Managing Director & CEO CITADEL - MAGNUS Specialist in Corporate and OTTO ENERGY LIMITED Financial Communication Ph: +61 8 6467 8800 Email: info@ottoenergy.com Ph: +61 2 6160 4900 Email: mgerber@citadelmagnu