Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — Investor Presentation (March 2015)
36 slides from Amplitude Energy's investor presentation, Mar 5, 2015
Slide 1: Orbost gas plant Investor pack
For personal use only Orbost gas plant Investor pack
Slide 2: Important information and qualified evaluator
The information in this presentation: For personal use only • 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 sit
Slide 3: Abbreviations and definitions
For personal use only 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 MMbbl million barrels o
Slide 4: Oil production, gas resources, strong balance sheet
For personal use only Oil production: • 500 kbbls+ pa from Cooper Basin and Indonesia with direct cash costs of A$36 bbl Gas resources: • positioned to commence supply to eastern Australia from late 2018/ early 2019 Strong balance sheet: • $53 million1 of cash and financial assets, supplemented by f
Slide 5: Strategy: total shareholder return
For personal use only Total Shareholder Return and Health Safety Environment Community Strategy • High margin oil • Fundamentals focus: market, technical, cost & commercial • Gas portfolio • Leverage and grow strengths People Funding Assets • Extensive knowledge • Strong balance sheet • Cooper Basin
Slide 6: Callawonga and Orbost gas plant
For personal use only 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 contr
Slide 7: Half year production
For personal use only 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 217 225 213 271 Cooper Basin 203 215 2010 2011 2012 2013 2014 2012 2013 2014 • Consistent with forecast • Cooper Basin: Rincon co
Slide 8: Cooper Basin oil production and exploration
For personal use only • Oil production and exploration - FY 15 First Half production 1,168 bopd (COE share) from PEL 92 & 93 - FY 15 First Half total operating cost of $36/bbl including transport and royalties • Exploration and development continues to add reserves - in-field development in PEL 92 -
Slide 9: Indonesia Sukananti KSO production
For personal use only • FY 15 First Half production of 169 bopd ( COE share) from Sukananti KSO, South Sumatra • FY 15 First Half total operating cost of A$54/bbl including transport Sukananti KSO (COE interest 55%) • Production rising through workover and development program: – Tangai-3 workover in
Slide 10: East coast gas demand and buyer interest
For personal use only PJ 800 • Strong gas buyer interest Forecast east coast domestic demand Contracted 700 supply from: – seeking supply from 2016 onwards 600 • Discussions with buyers accelerating Surat-Bowen • Prices $6 – 9/GJ, based on industry 500 New supply feedback and analysts contract oppor
Slide 11: Gas strategy: Otway and Gippsland basins
For personal use only Market • Strategy initiated in 2012: • Market-driven approach • Building customer relationships – build gas supply portfolio using in-house capabilities • Terms being negotiated • Developed knowledge, portfolio • Pipeline transport expertise and gas customer relationships • Now
Slide 12: Sole gas field and Orbost gas plant update
For personal use only 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 • 65% interest and Operator • Added 2C Contingent Resources of 18 million boe (COE share)2; including
Slide 13: 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) ~~ - ee — = —_— - = eee Orbost Gas Hub* (50%) | ts “) Cooper Energy interests 7 BAS licences (COE 22.9%) &@® Gas field @® Oi fied —— Existing gas pipeline —= Planned Sole gas pipeli
Slide 14: Project development timeline for Sole and BMG
For personal use only 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 Drill Manta-3 Appraisal drilling FI
Slide 15: Milestones, value uplift and funding options
For personal use only 2015 2016 Indicative Value Uplift NPV value increment M J S D M J S D Marketing Sign Sole Gas LOIs Sign Sole gas contracts milestones ~3.75x Project milestones 2P Reserves-Sole FID ~1.5x ~2.5x Funding Fully funded through to FID FID/ Pre-start Contingent Resource/ Reserves up F
Slide 16: Otway Basin Penola Trough
For personal use only • 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 conf
Slide 17: Half year results highlights
For personal use only • 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 due to market conditions • Statutory net loss after tax $(58.0) million vs H1 14 profit of $13.6 million • Underlying net pro
Slide 18: Half year financial results
For personal use only 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) C
Slide 19: Activity schedule by license
For personal use only 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 studi
Slide 20: Production growth outlook from Sole and BMG
For personal use only • Cash generation from existing production • Sole gas then BMG: – step changes in production from Dec Qtr 18 and Dec Qtr 19 • Development to be underpinned by bankable BMG gas sales contracts from FY 16 • Long term foundation being built Sole Existing Production*: Cooper Basin,
Slide 21: Near term and beyond FY15 outlook
For personal use only Near term: • Production of 500 – 560 kbbls in FY15; A$/36 bbl cash cost is robust at current prices • Milestones and catalysts: Sole-Orbost completion and contingent resources, BMG business case and drilling results in SA Cooper Basin and Indonesia • Discussions with gas buyers
Slide 22: Appendices
For personal use only Appendices
Slide 23: Key figures
For personal use only Key figures Share price range, 12 months to 28 February 2015 $0.22 - $0.575 Shares on issue 329.2 mill Market capitalisation ~ $75 mill Cash & investments1 $53.1 mill Debt Nil FY15 production MMbbl/year 0.50 – 0.56 Share register Top 20 holders~66% Funds/Corp ~67% 131 December
Slide 24: Production and activity guidance
For personal use only 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 • Guidan
Slide 25: Acquisition of Sole gas field and VIC/RL3
For personal use only • 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) • Acquisitio
Slide 26: Orbost gas plant acquisition
For personal use only • 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
Slide 27: BMG gas and liquids project
For personal use only • 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 deve
Slide 28: FY15 capex guidance
For personal use only 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 - 5 FY
Slide 29: Northern Cooper Basin exploration acreage
For personal use only • 1,169 km2 in northern SA Cooper Basin • Lightly explored region subjected to extensive Dundinna 3D seismic survey 577 km2 • Key plays are Hutton/Birkhead and Triassic structural traps • Future exploration being evaluated using results of 2 wells drilled in H1 2015: - Akela-1
Slide 30: Penola Trough acreage and wells
For personal use only • Expanded acreage coverage of Penola Trough – traded 35% PEL 495 for 30% PEL 494 & PRL 32 – zero net cost to Cooper Energy • Jolly-1 and Bungaloo-1 deep wells – confirmed location of Casterton Formation unconventional play – identified deep conventional gas play – shale gas po
Slide 31: Indonesia permits
For personal use only Sukananti KSO (COE 55%) • Currently ~370 bopd (100% basis) • Multiple low risk development opportunities • 2-3 development wells planned for 2015 • Targeting production growth • Contractor share: oil 15%: gas 20%1 Sumbagsel PSC (COE 100%) • Shallow oil targets • Farming out for
Slide 32: Tunisia permits and divestment plan
For personal use only • 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 I
Slide 33: Reserves and contingent resources
For personal use only 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 3
Slide 34: Notes on reserves and resources calculation
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 For personal use only MMbbl and 3P 0.08 MMbbl. There is no produced crude oil used for fuel in Indonesia. Categories are aggregated by arithmetic summation. Basi
Slide 35: Contact details
For personal use only Website: cooperenergy.com.au Investor relations: Don Murchland +61 439 300932 donm@cooperenergy.com.au Address: Cooper Energy Limited Level 10 Waymouth St Adelaide SA 5000 + 61 8 8100 4900
Slide 36: For personal use only
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