Otto Energy Limited · ASX:OEL
Otto Energy — Asia Oil & Gas Investment Congress 2008
27 slides from Otto Energy's conference presentation, Nov 5, 2008
Slide 1: Otto Energy at a Glance
For personal use only 5 November 2008 OTTO ENERGY AT A GLANCE Manager of Company Announcements • ASX‐listed dynamic oil and gas ASX Limited company with significant growth Level 6, 20 Bridge Street potential SYDNEY NSW 2000 • Strong Board & Management team • World class projects across 4 countries A
Slide 2: Unlocking the potential in the Philippines
Unlocking the potential in For personal use only Th Philippines The Phili i Al Parks: Alex P k CEO, CEO OTTO ENERGY LTD Asia Oil and Gas Investment Congress Grand Copthorne Waterfront Hotel, Singapore 5th November 2008
Slide 3: Disclaimer
DISCLAIMER For personal use only This presentation does not constitute an offer to sell securities and is not a solicitation of an offer to buy securities. It is not to be distributed to third parties without the consent of Otto Energy Ltd (the “Company”). This presentation contains forward-looking
Slide 4: Today's Agenda
TODAY’S AGENDA For personal use only OIL AND GAS IN THE PHILIPPINES BENEFITS OF EXPLORING IN THE PHILIPPINES OTTO ENERGY’S ENERGY S STRATEGY FOR GROWTH UPCOMING ACTIVITIES IN THE PHILIPPINES TO UNLOCK NEW DISCOVERIES
Slide 5: Oil & Gas in the Philippines
For personal use only OIL & GAS IN THE PHILIPPINES Established hydrocarbon province with a good fiscal regime and growing domestic energy demand. Close proximity to key export markets (China, India). Increased interest by industry with 42 participants (local and foreign) now in the region; increasin
Slide 6: Striving for Energy Self-Sufficiency
STRIVING FOR ENERGY SELF-SUFFICIENCY For personal use only The Philippines consumes ~330 330,000 000 bopd and produces only 30,000 bopd Domestic production of oil began in the 1970’s, but has been very limited According to the Oil and Gas Journal, the Philippines had 138 million barrels of proven oi
Slide 7: A Matter of National Importance
A MATTER OF For personal use only NATIONAL IMPORTANCE “Our goal is to increase our energy self- sufficiency level to 60% by 2010. We can only achieve this if more indigenous fuels are discovered in the Philippines.” The Philippines is currently pursuing intensive efforts to promote investment Aiming
Slide 8: Globally Competitive Fiscal Regime
GLOBALLY COMPETITIVE For personal use only FISCAL REGIME The fi Th fiscall regime i applicable li bl tto th the Fili Filipino i upstream oil industry is one of the best in Asia Foreign participation of up to 100% is allowed PSCs regime applies Contractor C t t allowed ll d to t recover costs t up tt
Slide 9: Intensive Promotion of Oil & Gas Exploration
INTENSIVE PROMOTION For personal use only OF OIL & GAS EXPLORATION MORE THAN 30 SERVICE CONTRACTS AWARDED IN JUST OVER 5 YEARS The waters surrounding the Philippines have for far too long been ignored by oil investors Previous P i D Development l t activity ti it ffocused d primarily i il on the th
Slide 10: An Established Hydrocarbon Province
AN ESTABLISHED HYDROCARBON PROVINCE For personal use only 8 proven basins Most prolific to date: NW Palawan ‐ 55 of 72 exploration wells have oil or gas 9 offshore ff h field fi ld developments d l 4 fields currently on production: − Malampaya M l ( ) Nido (gas), Nid (oil) ( il) , Matinloc M i l (oi
Slide 11: Significant Players Moving into the Neighbourhood
SIGNIFICANT PLAYERS For personal use only MOVING INTO THE NEIGHBOURHOOD Recent market reforms aimed at deregulation have enticed new/foreign oil companies to the Philippines Affirmed right of foreign owned companies to explore for, and develop, oil and gas resources in the h Philippines hl Acreage i
Slide 12: Otto Energy
OTTO ENERGY For personal use only NON OPERATED OPERATED Turkey, Italy, Argentina Philippines Listed on the ASX Assets worldwide 30 staff across 2 offices: Perth, Australia and Manila, Philippines
Slide 13: High Equity, High Quality, Significant Follow Up Potential
HIGH EQUITY. EQUITY HIGH QUALITY SIGNIFICANT FOLLOW UP POTENTIAL For personal use only NORTH/ SOUTH WEST PALAWAN EAST VISAYAN BASIN SC50 (85%) SC51 (80%) Shallow water, water modest Calauit Mid water, large Argao & & Calauit South Oil Fields: Bahay prospects + 9 leads: Appraisal drilling in 2009 Exp
Slide 14: Galoc Oil Field
GALOC OIL FIELD For personal use only SC14C Otto has an indirect 18.28% interest in the Galoc Oil Field through a 32% shareholding h h ldi iin th the fi field ld operator, t G Galoc l PProduction d ti C Company, which hi h h holds ld 58% of the field. Phase 1 Field development complete Commenced pro
Slide 15: SC50: Calauit Oil Field
SC50: CALAUIT OIL FIELD For personal use only Fracture Swarms within closure 2007 undertook 3D seismic to delineate fields and optimise development drilling Calauit and Calauit South discoveries made in 1991 / 1992 3D seismic data shot by Otto in 2007 for better delineation of fields and fracture id
Slide 16: SC51: South Block, East Visayan Basin
SC51: SOUTH BLOCK For personal use only EAST VISAYAN BASIN Vi View off C Cebu b St Strait it off ff seismic i i vessel, l Phili Philippines i 11 prospects and leads C bi d potential Combined t ti l off over 500 million barrels Main p prospects: p Argao g and Bahayy
Slide 17: SC51: Argao Prospect
SC51: SOUTH BLOCK For personal use only ARGAO PROSPECT DHIs Suggest Gas cap 8 levels that could contain 40 ‐ 300 MMbbls in Potential P i l place each Oil Leg E W Section over Argao and Cabilao E‐W Gas Cap AVOs SUGGEST POSSIBLE GAS ON OIL...
Slide 18: SC69 New Offshore Licence
SC69 NEW OFFSHORE For personal use only LICENCE 7,040 LICENCE: 7 040 KM2 SC69 was awarded to Otto and TransAsia in May 2008 Prospective with over 20 leads The area forms part of the Visayan Basin with proven oil & gas Between Cebu, Leyte & Bohol ~4,500km of existing 2D seismic
Slide 19: SC55: Elephant Country
SC55: “ELEPHANT COUNTRY” For personal use only SOUTH WEST PALAWAN BASIN DEEP WATER BLOCK (300‐2000M) (300 2000M) Area of 9,000km2 Never previously licensed as a Service Contract Massive Reef and Turbidite potential OTTO ACQUIRED 2D SEISMIC IN TWO SURVEYS 400km of prospect specific in October 2006 96
Slide 20: SC55: Marantao Prospect
SC55: MARANTAO PROSPECT For personal use only 6km SC 55 Deep Water Licence Shell/Conoco 100km2 aerial closure Phillips oil Marantao Prospect discovery GIANT MARANTAO REEF PROSPECT Malampaya Oil and Gas Field Potentially over 1 Bbbls size comparison overlay of oil or 13 Tcf of gas 5 km
Slide 21: Otto's Philippines Exploration Activities
OTTO’S PHILIPPINES EXPLORATION ACTIVITIES For personal use only 2005 ‐ Otto entered Philippines with 50% of NorAsian Sept 2006 ‐ Otto acquired 100% of NorAsian and Operatorship 2006 / 2007 ‐ Extensive seismic campaign across all blocks H1 2008 ‐ Seismic Interpretation and drilling planning July 2008
Slide 22: Australian Securities Exchange: ASX Code OEL
AUSTRALIAN SECURITIES EXCHANGE ASX CODE “OEL” For personal use only UNLISTED Shareholding Composition SHARES OPTIONS Top 20 ISSUED 492,423,863 ~43,500,000 own 64 50% 64.50% MARKET ~A$108m @ 22 cps CAP ~US$7 S$ million Galoc debt of ~US$19 million CASH (1 October 2008) Net income of US$50 US$50-100 1
Slide 23: Board of Directors
BOARD OF DIRECTORS For personal use only RUFINO JAAP POLL RICK CRABB IAN MACLIVER JOHN JETTER BOMASANG DIRECTOR CHAIRMAN DIRECTOR DIRECTOR (NON - EXECUTIVE) (NON - EXECUTIVE) (NON - EXECUTIVE) (NON – EXECUTIVE) DIRECTOR PHD PHILOSOPHY AND B JURIS (HONS) LLB MBA (NON - EXECUTIVE) GEOLOGY NORASIAN CHA
Slide 24: Corporate & Technical Team
CORPORATE & TECHNICAL TEAM For personal use only Alex Parks Craig Martin CEO Otto Energy Ltd COO Bruce Elsholz Kris Fellowes CFO CEO NorAsian John Sheppard Stefan Kleffmann Jane Secker Asset Mgr (NOA) Geoscience Mgr Calauit C l i Project P j MgrM Richard King Emma McCormack Ruben Gan Jamie Parry Com
Slide 25: A Balanced Portfolio
For personal use only A BALANCED PORTFOLIO
Slide 26: Upcoming News Flow
UPCOMING NEWS FLOW For personal use only Commenced production at Galoc 1ST CASH FLOW Oct 2008 Farm‐out of Philippines projects Late 2008/ Early 2009 Drilling of 100 Bcf target Gazzata‐1 well in Italy Jan 2009 Drilling 1 development well + 2 exploration wells in Turkey Q1 2009 Drilling up to 100MMbbl
Slide 27: Otto is Strategically Placed With...
OTTO IS STRATEGICALLY PLACED WITH... For personal use only Strong management and experienced technical team Fundingg via Galoc p production A highly prospective asset portfolio with focus on Philippines Farm out negotiations underway Active exploration program about to commence
Otto Energy — Asia Oil & Gas Investment Congress 2008 on 6ix