Otto Energy Limited · ASX:OEL
Otto Energy — Asia Oil Week | Asian Independents Forum 2009
33 slides from Otto Energy's conference presentation, Feb 25, 2009
Slide 1: Otto Energy at a Glance
For personal use only 25 February 2009 OTTO ENERGY AT A GLANCE Manager of Company Announcements ASX Limited • Dynamic ASX‐listed oil and gas company with significant growth potential Level 6, 20 Bridge Street SYDNEY NSW 2000 • Strong Board & Management team • World class projects across 4 countries
Slide 2: Building a Balanced Upstream Portfolio
OTTO ENERGY For personal use only BUILDING A BALANCED UPSTREAM PORTFOLIO ASIA OIL WEEK | ASIAN INDEPENDENTS FORUM PRESENTED BY MR ALEX PARKS, PARKS CEO 25 FEB 09
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 securities. “Company”). • This presentation contains f
Slide 4: Otto Energy's Growth Strategy
OTTO ENERGY’S GROWTH STRATEGY For personal use only To be an internationally‐respected, significant oil & gas company STRATEGIC FOCUS Build & maintain a balanced portfolio of assets across exploration / production life cycle ‐ onshore/offshore O Operate iin our time i corridor id (Australia (A li /
Slide 5: Capital Structure & Cash Position
CAPITAL STRUCTURE & CASH POSITION For personal use only SHARES UNLISTED OPTIONS Shareholding Composition ISSUED 492 673 863 492,673,863 ~45 45,500,000 500 000 Top 20 MARKET CAP ~A$49 million @ 10cps p [[as at 20 Februaryy 2009]] own 64.50 % ~US$5.7 $ million CASH as at 31 December 2008 DEBT ~US$10.5
Slide 6: 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 7: The Value of a Balanced Portfolio
THE VALUE OF A BALANCED PORTFOLIO For personal use only A successful oil and gas company has a balance of assets of oil and gas / onshore and offshore / exploration and development. Otto’s portfolio allows focus on onshore assets during 2009. − Low cost development in Turkey − Low cost exploration i
Slide 8: Otto Has Built a Balanced Portfolio
OTTO HAS BUILT A BALANCED PORTFOLIO For personal use only
Slide 9: Asset Portfolio
ASSET PORTFOLIO For personal use only NON OPERATED, ONSHORE OPERATED, OFFSHORE Turkey, Italy, Argentina Philippines
Slide 10: The Philippines
For personal use only THE PHILIPPINES
Slide 11: 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 12: Intensive Promotion of Oil & Gas Exploration
INTENSIVE PROMOTION OF OIL & GASEXPLORATION For personal use only MORE THAN 30 SERVICE CONTRACTS AWARDED IN JUST OVER 5 YEARS Waters surrounding the Philippines have been long ignored by oil investors Previous development activity focused primarily on the development of Malampaya (the country’s larg
Slide 13: Significant Players Moving into the Neighbourhood
SIGNIFICANT PLAYERS For personal use only MOVING INTO THE NEIGHBOURHOOD 2004 – Government initiative to reinvigorate exploration and domestic oil and gas production in the Philippines Attractive fiscal regime put in place More than 30 Service Contracts have been awarded in just over 5 years Acreage
Slide 14: Otto Holds a Dominant Position
OTTO HOLDS A DOMINANT POSITION For personal use only 2006 ‐ Otto acquired 100% of NorAsian (& Operatorship) 2006 /07 ‐ Extensive seismic campaign across all blocks 2007 ‐ Acquisition of indirect interest in the Galoc Oil Field via shareholding in Galoc Production Company May 2008 ‐ Awarded SC69 H1 2
Slide 15: SC14C - Galoc Oil Field
SC14C - GALOC OIL FIELD OTTO 18.28% INDIRECT INTEREST For personal use only Otto has 31.38% of Galoc Production Company, which holds 58.29% of SC14C and is Operator. Gives Otto an 18 18.28% 28% indirect interest in the field field. Located northwest Palawan Phase 1 field development complete First O
Slide 16: Service Contract 55: Otto Farming Down from 85% to 25%
SERVICE CONTRACT 55 For personal use only OTTO FARMING DOWN FROM 85% TO 25% DEEP WATER BLOCK Water depth ~ 300 – 2000 metres Area 9,000km2 Never previously licensed as a Service Contract Massive Reef and Turbidite potential p OTTO ACQUIRED 2D SEISMIC IN TWO SURVEYS 400km of prospect specific in Octo
Slide 17: SC55 Farm Out to BHP Billiton
SC55 FARM OUT TO BHP BILLITON For personal use only In December 2008,, Otto and BHP Billiton entered into a conditional Heads of Agreement which set out the key commercial terms for the farm‐in by BHPB to SC55. Otto retains 25% working interest Otto will receive back costs for work completed to date
Slide 18: Prolific 1,000 km Oil & Gas Trend
PROLIFIC 1,000 KM OIL & GAS TREND For personal use only SC 55 Deep Water Licence Shell/Conoco Phillips oil discovery
Slide 19: Multi Billion Potential Prospects & Leads
MULTI BILLION POTENTIAL PROSPECTS & LEADS For personal use only SC55 MARANTAO A1 A3 A2 Marantao Seismic A4 B1 A6 B2 A5 HAWKEYE B4 B3 B5 Hawkeye Seismic DHI
Slide 20: For personal use only
For personal use only N
Slide 21: SC51: East Visayan Basin
SC51: EAST VISAYAN BASIN For personal use only OTTO 80% AND OPERATOR SC51 – STOIIP Estimates (MMstb) Prospects/Leads Fluid Low Mid High Argao Oil 46 159 469 Bahay Oil 15 61 198 Sabang Reef Oil 21 56 228 Tagbilaran Oil 9 18 44 Balatic Reef Oil 15 45 134 Anak Argao Oil 5 9 23 S1 Oil 43 86 167 Reef 1 O
Slide 22: Argao Prospect
ARGAO PROSPECT For personal use only SC51 SOUTH BLOCK DHIs suggest small gas cap on oil 8 levels of 40 ‐ 300 MMbbls in place each Potential P i l Oil Leg E W Section over Argao and Cabilao E‐W Gas Cap AVO’S SUGGEST POSSIBLE GAS ON OIL...
Slide 23: For personal use only
For personal use only Argao-1 Argao Closure Greater Argao? ? Anak Argao Top Barili B ?
Slide 24: Argao & Bahay (Contingent) Exploration Wells
ARGAO G O & BAHAY (CONTINGENT) (CO G ) EXPLORATION WELLS For personal use only A Argao - Proposed P dWWellll Path P th B h Bahay - Proposed P dWWellll P Path th 180 Seafloor 340 Maingit 540 Intra Maingit 800 Top Toledo 1529 Intra Toledo 1
Slide 25: SC69 – New Acreage
SC69 – NEW ACREAGE For personal use only OTTO 70% % AND OPERATOR Awarded in May 2008 Area forms part of the Visayan Basin with p proven oil & gas g Located between SC51 North and South blocks Large block – over 7,000 km2 4,500km 4 500k off existing i i 2D seismic; i i prospective with over 20 leads
Slide 26: SC50 Calauit Oil Field
For personal use only SC50 CALAUIT OIL FIELD Fracture Swarms within closure On hold until costs decrease/oil price increases and/or farm‐in partner is secured to make development feasible
Slide 27: Fracture Orientation Delineated by 3D Seismic Recorded in 07
FRACTURE ORIENTATION DELINEATED BY 3D SEISMIC RECORDED IN 2007 For personal use only Dip-Azimuth Dip Azimuth Depth p Closure Projected paths of pilot and horizontal wells Seismic Seismic and F lt Faults
Slide 28: Non Operated Assets
NON OPERATED ASSETS For personal use only ARGENTINA EUROPE
Slide 29: Non Operated Assets: Turkey, Italy, Argentina
NON OPERATED ASSETS For personal use only • Otto holds 35% WI • Farming in for 50% WI • Farming in for 32.48% WI • Highly Hi hl prospectivei acreage with i h six i • Operated O d by b A Ascent R Resources Pl Plc • Located L d on East E side id off prolific lifi commercial gas discoveries to date • D
Slide 30: Project Conveyer Belt
PROJECT CONVEYER BELT For personal use only
Slide 31: Indicative Work Program
INDICATIVE WORK PROGRAM For personal use only Drilling 1 development well in Turkey January 2009 Complete BHPB SC55 deal March2009 Sign Turkey Gas Sales Agreement April 2009 Drilling of 100 Bcf target (Gazzata‐1 well) in Italy Q2 2009 Drilling of up to 100MMbbl target in Argentina 1H 2009 Farm‐out o
Slide 32: Otto Has Good Fundamentals
OTTO HAS GOOD FUNDAMENTALS For personal use only Strongg management g and experienced, p , motivated staff Revenue from Galoc production & low cost Turkey development to provide cash flow starting late 2009 A balanced and highly prospective asset portfolio across four countries Notable farm out sign
Slide 33: Otto Energy
For personal use only OTTO ENERGY 32 Delhi Street ASX: OEL West Perth WA 6005 Tel:l +61 8 6467 8800 Fax: +61 8 6467 8801
Otto Energy — Asia Oil Week | Asian Independents Forum 2009 on 6ix