Australis Oil & Gas Ltd. · ASX:ATS
Australis Oil & Gas — Shareholder Meeting (April 2019)
37 slides from Australis Oil & Gas's shareholder meeting presentation, Apr 29, 2019
Slide 1: ASX Announcement: Company Presentation Material
For Immediate Release ASX Announcement For personal use only 29 April 2019 Company Presentation Material Please find attached to this document a copy of the presentation to be used by Australis Oil & Gas Limited today at its Annual General Meeting in Perth, Australia. For further information, please
Slide 2: AGM Presentation
For personal use only Oil productivity from Initial Drilling Program demonstrates value of large undeveloped oil position AGM Presentation 29 April 2019 ASX: ATS
Slide 3: Important Notice and Disclaimer
Important Notice and Disclaimer For personal use only This presentation has been prepared by Australis Oil & Gas Limited ACN 609 262 937 (ASX: ATS) (Australis). Summary of information: This presentation contains general and background information about Australis’ activities current as at the date of
Slide 4: Executive Summary
For personal use only Executive Summary Tuscaloosa Marine Shale (TMS) Portugal Appendix
Slide 5: Investment Highlights
Investment Highlights Large undeveloped TMS oil position with proven economics and multiple near term upside catalysts For personal use only Early production results from Stewart, Taylor and Williams all exceeding the TMS Type Curve indicating consistent reservoir performance Quality Assets Init
Slide 6: Corporate Overview
Corporate Overview Existing reserves, production and revenue with an institutionally supported register For personal use only Founded in 2014 with significant capital contribution by Capital Structure (April 2019)(A) the founders & key management of Aurora Oil & Gas. Ordinary Shares(B) 982 million
Slide 7: Tuscaloosa Marine Shale (TMS)
For personal use only Executive Summary Tuscaloosa Marine Shale (TMS) Portugal Appendix
Slide 8: Large Contiguous Land Position
Large Contiguous Land Position Australis continues to increase and extend the life of its ‘core’ land position For personal use only Australis TMS Position Australis TMS Map Land Position Apr 19 Jan 18 HBP (acres) 34,800 27,600 Total Core Area (net acres only 115,000 95,000 within core area) Future
Slide 9: Initial Drilling Program – Objectives
Initial Drilling Program – Objectives Initial well program seeks to demonstrate value proposition by repeating historical well performance For personal use only at updated cost base. TMS Type Curve Wells Key objectives of TMS Drilling Program: Repeat historical well performance at updated cost b
Slide 10: Initial Drilling Program – Status & Costs
Initial Drilling Program – Status & Costs All drilling and completion operations have been executed without any reportable safety or For personal use only environmental incidents Drilling Operations Summary Well Well StatusA Lateral length drilled of 6,900ft, completed 20 stages Stewart 30H-1 86
Slide 11: Initial Drilling Program – Production Results
Initial Drilling Program – Production Results Early production results – very encouraging consistent outperformance For personal use only Oil Production Rates v TMS Type Curve Stewart and Taylor wells are significantly out performing the TMS Type Curve Williams well is producing below the Type C
Slide 12: Initial Drilling Program – Normalised Production Results
Initial Drilling Program – Normalised Production Results All wells outperforming the TMS Type Curve on a normalised basis For personal use only Oil Production Rates v TMS Type Curve (Normalised to 7,200 ft) The same data but now normalised for horizontal length, i.e production data is scaled up fo
Slide 13: Initial Drilling Program Results – Stewart 30H-1
Initial Drilling Program Results – Stewart 30H-1 Stewart continues to outperform the TMS Type Curve For personal use only TMS Type Curve: Monthly Production Profiles Cumulative Oil Production 118 Days The monthly production profiles show the Stewart well performance relative to the population used
Slide 14: Initial Drilling Program – Costs and Schedule
Initial Drilling Program – Costs and Schedule Extensive planning delivering on-time and on-budget program For personal use only The drilling program has benefited from an extended period of planning, however lessons continue to be learned in the drilling execution Due to strong productivity resu
Slide 15: Quarterly Financial & Operational Summary
Quarterly Financial & Operational Summary Despite lower realised oil prices, Sales Revenue and Field Netback increased For personal use only significantly Australis released its quarterly results today. Sales volumes increased substantially by 58% (Qtr on Qtr) , primary contributor was the Stewart
Slide 16: Pathway to Value
Pathway to Value TMS Core acreage has multiple catalysts to realise and increase value For personal use only Value Catalysts Single Well Economics - Pre-tax NPV10 (US$ in millions)A Type curves conservatively based on $3.4 $14.1 Well historical average well productivity Technology improvements o
Slide 17: Significant Underlying Value
Significant Underlying Value Australis continues to add oil inventory on a highly accretive basis For personal use only Australis’ business strategy is to accumulate Evolution of Oil Reserves and Resources(1,2) ‘oil in the ground’ reflected in our substantial reserves and resources growth since IP
Slide 18: Austin Chalk Activity
Austin Chalk Activity Australis holds Austin Chalk rights on the significant majority of its leases For personal use only Austin Chalk Activity Conoco Phillips (COP) have an active program in close proximity & EOG have just permitted a well in East Feliciana Parish COP - McKowen #1 well drilled,
Slide 19: Summary
Summary Australis is positioned for significant value generation For personal use only 1 Large Strategic Position in attractive oil weighted play Position of 115,000 net acres in the TMS core Initial production of Stewart 30H-1, Taylor 17H-1 and Williams 26H-2 highlight increased productivity po
Slide 20: Portugal
For personal use only Executive Summary Tuscaloosa Marine Shale (TMS) Portugal Appendix
Slide 21: Portugal Concessions Overview
Portugal Concessions Overview Australis owns two concessions onshore Portugal with significant development potential For personal use only Asset Highlights Asset Location Significant Gas Large in-place discovered and tested gas Resource accumulation with 2C resources of 458 Bcf2 Limited explorat
Slide 22: Portugal Prospectivity & Volumetrics
Portugal Prospectivity & Volumetrics Appraisal of a gas discovery with multiple nearby prospects and leads with a significant resource base For personal use only Proposed Work Program Batalha Gas Discovery Batalha Concession Prospects Drill and test the gas discovery with a vertical well Drill a
Slide 23: Portugal Concessions Status
Portugal Concessions Status Australis is working with Portuguese Authorities to achieve the necessary regulatory approvals to For personal use only commence exploration and appraisal activity Work Program to Date Australis has completed a number of detailed subsurface engineering studies to review
Slide 24: Appendix
For personal use only Executive Summary Tuscaloosa Marine Shale (TMS) Portugal Appendix
Slide 25: Directors & Management
Directors & Management Demonstrated track record in oil & gas For personal use only John Stewart Ian Lusted Darren Wasylucha Non-Executive Chairman Managing Director & CEO Chief Corporate Officer >25 years in the upstream oil and gas industry >25years in the upstream oil & gas industry Former
Slide 26: What is the TMS?
What is the TMS? The TMS is an emerging shale play: its ‘core’ is comparable with other prolific unconventional plays For personal use only in the US TMS Location Onshore basin - Louisiana and Mississippi. On trend with Eagle Ford Basin in Texas, similar depositional history and age. 80 horizo
Slide 27: Australis TMS Well Performance
Australis TMS Well Performance The 15 wells drilled in 2014/15 within Australis’ core acreage demonstrate significantly higher For personal use only average productivity than the average of other TMS wells drilled in Mississippi Individual 24 Month Cumulative Production Per Well – TMS Mississippi5,6
Slide 28: TMS Type Curve
TMS Type Curve Summary of monthly oil production data for the most recent 15 Encana drilled wells an initial drilling program wells For personal use only Lewis 7- Pintard Lyons Pintard Longleaf Longleaf Mathis Mathis Lawson Ash 13H Ash 13H Sabine Sabine McIntosh Reese Stewart Well Name Average Cumul
Slide 29: Single Well TMS Type Curve
Single Well TMS Type Curve ATS type curve is history matched to production from the most recent 15 Mississippi wells (drilled For personal use only by ECA, operated by ATS) TMS Core TC – Assumptions TMS Core Type Curve v TMS Production 250,000 Oil EUR – 610 Mbbls Gas EUR – 159 MMscf 200,000 NG
Slide 30: TMS Value: Single Well Economics and Sensitivities
TMS Value Potential 425 future net well locations with strong economics For personal use only Single Well Economics and Sensitivities – Pre-tax NPV10 (US$ in millions) $11 million/well $10 million/well7 $9 million/well $14.1 $13.2 $12.2 $4.0 $4.0 $10.7 $4.0 $9.7 $8.8 $3.5 $3.5 $7.2 $3.5 $6.3 $5.3 $2
Slide 31: Single Well Economics – IRR Sensitivities
Single Well Economics – IRR Sensitivities 425 future wells with attractive return profile For personal use only Single Well Economics and Sensitivities – Pre-tax IRR D, C & T $11 MM/well D, C & T $10 MM/well7 D, C & T $9 MM/well 113% 89% 79% 71% 62% 73% 49% 51% 57% 40% 51% 46% 31% 39% 31% 32% 24% 19
Slide 32: TMS Base Case Economics – Key Assumptions
TMS Base Case Economics – Key Assumptions The production and opex assumptions are based on history and the capex costs are current third For personal use only party service providers’ estimates Base Case Assumptions* Production Forecast EUR (30 Years) 30,000 700,000 Gas 0.16 Bcf Oil/Condensate 610 M
Slide 33: Austin Chalk Trend
Austin Chalk Trend Following recent EOG well results, there is significant activity in the South West targeting Austin For personal use only Chalk EOG drilled the Eagles Ranch 14H-1 well during Q3 Austin Chalk Trend 2017 A number of companies announced active leasing or acquisition programs incl
Slide 34: YE18 Reserves and Resource Update
YE18 Reserves and Resource Update Australis continues to grow reserves and resources For personal use only As an ASX participant Australis reports to the SPE TMS Reserves & Resource Estimates1,2 PRMS which requires any undeveloped reserves, Net Oil that are to be assessed for reserves classificati
Slide 35: TMS Crude Oil Price
TMS Crude Oil Price The premium pricing of LLS to other onshore US crude benchmarks has stayed consistently For personal use only attractive Crude Oil Spot Price, Daily Settlement, US$/bbl Because of the proximity of $90 Australis’ wells to the St. James Oil Terminal in $80 Louisiana and the high
Slide 36: Footnotes
Footnotes For personal use only 1. All estimates and risk factors taken from Ryder Scott, report prepared as at 31 December 2018 and generated for the Australis concessions to SPE standards. See ASX announcement released on 6 February 2019 titled “Reserves and Resources Update Year End 2018”. The an
Slide 37: Glossary
Glossary Unit Measure Unit Measure For personal use only B Prefix - Billions bbl Barrel of oil MM or mm Prefix - Millions boe Barrel of oil equivalent (1bbl = 6 mscf) M or m Prefix - Thousands scf Standard cubic foot of gas /d Suffix - per day Bcf Billion standard cubic foot of gas Abbreviation Desc
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