Echelon Resources Limited · ASX:ECH
Echelon Resources — Non-Deal Roadshow (September 2024)
55 slides from Echelon Resources's roadshow presentation, Sep 11, 2024
Slide 1: Echelon Roadshow Presentation
For personal use only Andrew Jefferies, Echelon CEO 11–12 September 2024
Slide 2: Disclaimer Notice
Disclaimer Notice For personal use only This presentation contains summary information about Echelon Resources Limited (ECH or Company) and its activities • Distribution of presentation: This presentation must not be distributed in any jurisdiction to the extent that its which is current as at the d
Slide 3: Table of Contents
Table of Contents For personal use only 1 About Echelon: name change and who we are 4 2 At a Glance - where we are active 10 3 FY24 Financial Performance 14 4 Financial Overview 16 5 Production & Reserves 21 6 Asset Overview 25 7 Company Close Up 31 8 Fireside Chat 37 9 Q&A 55 11–12 September 2024 3
Slide 4: Who we are
For personal use only Who we are New identity – same commitment
Slide 5: Echelon's Operations
Echelon’s Operations Proud history dating back more than 40 years For personal use only A nimble Australasia-focussed Our portfolio comprises Held either directly by the energy commodity exploration a spread of wholly-and-partly company, or indirectly through and production company owned onshore and
Slide 6: Echelon Resources Limited
For personal use only Echelon Resources Limited (ASX:ECH) Echelon talks to: Our Rocks Our Values Our Role 11–12 September 2024 6
Slide 7: Our Rocks
Our Rocks Total 2P Reserves By Country Australia 18.9 mmboe We are a science Indonesia 2.1 mmboe New Zealand 2.0 mmboe Dingo^ For personal use only 3.3 Mahato* driven company 1.4 Maari* 0.5 Palm Valley^ 2.1 Mereenie^° In geoscience, an 'echelon' refers to the repeated Kupe 13.4 nature of features li
Slide 8: Our Values
Our Values Clear Strategy For personal use only Regional Markets with Aligned with Prudently focus upside capabilities managed finances An efficient, cost-effective Wellington-based team Trusted by our stakeholders for our decisions, support and advice We spend efficiently on skills, tools and activ
Slide 9: Our Role
Our Role ‘Echelon’ in French means a rung in For personal use only a ladder, in our case an energy ladder. Like the rungs on a ladder, energy needs to be cost effective, secure and reliable. Energy systems bear the weight of Our standard Our health, Our food of living wealth and supply happiness Aff
Slide 10: At a Glance
For personal use only At a Glance Where Echelon is active
Slide 11: Echelon at a Glance
Echelon at a Glance For personal use only Amadeus Basin Sumatra Offshore South Taranaki Northern Territory, Australia Indonesia New Zealand Mereenie Echelon 42.5%, Cue Energy Resources 7.5% Mahato PSC Cue Energy Resources 12.5% Kupe Echelon 4% Palm Valley Echelon 35% Cue Energy Resources 15% Maari C
Slide 12: Northern Territory is a growing gas market
Northern Territory is a growing gas market Australian energy consumption growth, selected states and territories Australian energy mix, by state and territory, 2021–22 For personal use only Source: DCCEEW (2023) Australian Energy Statistics, Table C 11–12 September 2024 12
Slide 13: Future Activities Timeline
Future Activities Timeline For personal use only 11–12 September 2024 13
Slide 14: FY24 Financial Performance
For personal use only FY24 Financial Performance September 2024
Slide 15: Financial Year 2024 Highlights
“a For personal use only Financial Year 2024 Highlights Financial Performance OPERATING CASHFLOW STRATEGIC AQUISITION Increased by 11% Completed a vendor-funded acquisition of further to NZS$36.1m 25% interest in the from $32.5m in FY23 Mereenie field BENDS REVENUE AND CASH FLOW STRENGTH Final divid
Slide 16: Financial Overview
For personal use only overview Financial
Slide 17: Financial Health: A Pillar of our Strategy
Financial Health: A Pillar of our Strategy Operating cashflow up 11% to NZ$36.1m from $32.5m in FY23 Net profit after tax $3.9m down from $10.8m in FY23 due toan $1.5m impairment of Kupe. ersonal use only ©_ Total dividends of AUD 4.5 cents per share Underlying NPAT excluding Kupe impairment was NZS
Slide 18: Financial Health: Revenue Growth
Financial Health: Revenue Growth For personal use only Echelon has a 50.03% interest in Cue Energy Resources Ltd (Cue). Cue’s full interest is shown. 11–12 September 2024 18
Slide 19: Cash Flow
Cash Flow For personal use only 11–12 September 2024 19
Slide 20: ECH Share Price
ECH Share Price 0.8 For personal use only Ironbark drilling 0.7 Trend since Amadeus 0.6 Share Price ($AUD) 0.5 Ironbark not successful 0.4 Amadeus acquisition completes 0.3 2021 2022 2023 2024 11–12 September 2024 20
Slide 21: Production & Reserves
For personal use only & Reserves Production
Slide 22: For personal use only
For personal use only 11–12 September 2024 22
Slide 23: For personal use only
For personal use only 11–12 September 2024 23
Slide 24: For personal use only
For personal use only 11–12 September 2024 24
Slide 25: Asset Overview
For personal use only Asset Overview
Slide 26: Mereenie Gas Field
Amadeus Basin, Australia Mereenie Gas Field Improving Commercial Outcomes For personal use only • Multiple short and long-term gas contracts • Acreage of 281km2 on two permits improving average realised price • 71 existing wells • Two production facilities • Near and medium term development opportun
Slide 27: Palm Valley Gas Field
Amadeus Basin, Australia Palm Valley Gas Field Key Opportunities For personal use only • Near term development and appraisal • Acreage of 616km2 drilling improving commercial opportunities • 10 existing wells • Production facility • Multiple short and long-term gas contracts improving average realis
Slide 28: Dingo Gas Field
Amadeus Basin, Australia Dingo Gas Field Key Opportunities For personal use only • Near term development and exploration • Acreage of 468km2 drilling • Two existing wells • Production facility • Long-term gas contract with Power and Water Corporation providing power for Alice • Linked to local marke
Slide 29: Kupe Gas and Condensate Field; Maari Oil Field
Taranaki, New Zealand The Kupe oil and gas field is located in the Kupe Gas and For personal use only offshore Taranaki Basin, in New Zealand. It Condensate Gas Field continues to produce at field capacity due to a strong demand for gas. Production volumes at Kupe are in natural decline. • Acreage o
Slide 30: Cue Developments in Indonesia
Cue Developments in Indonesia Mahato well economics are very attractive. Under the Production Mahato PSC For personal use only Sharing Contract (PSC) with the Indonesian Government, drilling and Cue 12.5% development costs are recoverable by the Mahato Joint Venture from the field production revenue
Slide 31: Company Close Up
For personal use only Close Up Company
Slide 32: Expert, Stable Management Team
Expert, Stable Management Team For personal use only Andrew Paris Catherine Daniel Alan Michael Jefferies Bree McKelvey Leeman Clare Wright Managing Director General Counsel CFO GM Assets & Engineering GM Exploration & Appraisal GM Commercial Andrew has been working in Paris has been working in Cath
Slide 33: Deeply Experienced Board
Deeply Experienced Board For personal use only Samuel Dr Rosalind Marco Andrew Alastair Rod Kellner Archer Argentieri Jefferies McGregor Ritchie Chairman Independent Director Director Managing Director Director Independent Director Samuel has held a variety of Ros has been a Marco has worked for the
Slide 34: Investment Overview
Investment Overview For personal use only Modern lifestyles require all of us to use energy Echelon represents our commitment to undertaking activities and operations that are based on rigorous scientific and engineering analysis with robust business cases. Diversified Portfolio Commitment to Energy
Slide 35: ESG Performance Matters to Us
ESG Performance Matters to Us For personal use only Carbon conscious The only oil and gas production. company in our region to achieve a We offset our Scope 1 New Zealand emissions, back up Rainbow Tick. solar and displace coal use. Support for research into long term CO2 We report sequestration. on
Slide 36: Our Values
Our Values For personal use only Tikanga. Mahi Tahi. Pākiki. Tauhokohoko. The Right Things Work Together, Consumed Barter, the Right Way Collaborate, With Curiosity Bargain, Trade • We operate safely and do Cooperate, With • We seek to better • We seek to continually add what we say we will do. Team
Slide 37: Fireside Chat
For personal use only Fireside Chat
Slide 38: For personal use only
For personal use only 11
Slide 39: The world is embracing renewables
The world is embracing renewables For personal use only 11–12 September 2024
Slide 40: Why?
Why? For personal use only 11–12 September 2024
Slide 41: Renewables getting cheaper
Renewables getting cheaper For personal use only 11–12 September 2024
Slide 42: South Australia is leading the onshore wind and solar charge
South Australia is leading the onshore wind and solar charge in Australia For personal use only Source: Department of Climate Change, Energy, the Environment and Water (2023) Australian Energy Statistics, Table O 11–12 September 2024 42
Slide 43: What about when the wind don't blow, and the sun don't shine?
What about when the wind don’t blow, and the sun don’t shine? Even in South Australia … For personal use only Something else is needed to Mix by Time ‘keep the lights on’ 11–12 September 2024 43
Slide 44: What about when the wind don't blow, and the sun don't shine?
What about when the wind don’t blow, and the sun don’t shine? Power Source Cost Variability Safety “Cleanliness” For personal use only LCOE $/MWh Gas CC $56 Coal $109 Nuclear $155 Gas OC $175 11–12 September 2024 44
Slide 45: What about when the wind don't blow, and the sun don't shine?
What about when the wind don’t blow, and the sun don’t shine? Power Source Cost Variability Safety “Cleanliness” For personal use only LCOE $/MWh Gas CC $56 Coal $109 Nuclear $155 Gas OC $175 11–12 September 2024 45
Slide 46: What about when the wind don't blow, and the sun don't shine?
What about when the wind don’t blow, and the sun don’t shine? Power Source Cost Variability Safety “Cleanliness” For personal use only LCOE $/MWh Gas CC $56 Coal $109 Nuclear $155 Gas OC $175 11–12 September 2024 46
Slide 47: What about when the wind don't blow, and the sun don't shine?
What about when the wind don’t blow, and the sun don’t shine? Power Source Cost Variability Safety “Cleanliness” For personal use only LCOE $/MWh Gas CC $56 Coal $109 Nuclear $155 Gas OC $175 11–12 September 2024 47
Slide 48: What about when the wind don't blow, and the sun don't shine?
What about when the wind don’t blow, and the sun don’t shine? Power Source Cost Variability Safety “Cleanliness” For personal use only LCOE $/MWh Gas CC $56 Coal $109 Nuclear $155 Gas OC $175 11–12 September 2024 48
Slide 49: What about when the wind don't blow, and the sun don't shine?
What about when the wind don’t blow, and the sun don’t shine? Power Source Cost Variability Safety “Cleanliness” For personal use only LCOE $/MWh Gas CC $56 Coal $109 Nuclear $155 Gas OC $175 11–12 September 2024 49
Slide 50: What about when the wind don't blow, and the sun don't shine?
What about when the wind don’t blow, and the sun don’t shine? Power Source Cost Variability Safety “Cleanliness” For personal use only LCOE $/MWh Gas CC $56 Coal $109 Nuclear $155 Gas OC $175 11–12 September 2024 50
Slide 51: What about when the wind don't blow, and the sun don't shine?
What about when the wind don’t blow, and the sun don’t shine? Power Source Cost Variability Safety “Cleanliness” For personal use only LCOE $/MWh Gas CC $56 Coal $109 Nuclear $155 Gas OC $175 11–12 September 2024 51
Slide 52: What about when the wind don't blow, and the sun don't shine?
What about when the wind don’t blow, and the sun don’t shine? Power Source Cost Variability Safety “Cleanliness” For personal use only LCOE $/MWh Gas CC $56 Coal $109 Nuclear $155 Gas OC $175 11–12 September 2024 52
Slide 53: GAS is a Three Letter Word for TRANSITION
GAS is a Three Letter Word for TRANSITION South Australia’s first 100% renewable day 11 October 2020 For personal use only renewable Mostly gas 100% Mostly gas Data Source: AEMO Graphic: IEEFA.ORG 11–12 September 2024 53
Slide 54: CEO closing statement
“We are building a great business by investing in For personal use only producing oil and gas assets in our region, selling into healthy markets that have a demand for ethical production. The world needs our energy. The time is right to invest in the growth of our producing assets.” Andrew Jefferies
Slide 55: Q&A
For personal use only Q&A
Echelon Resources — Non-Deal Roadshow (September 2024) on 6ix