Slide 1: Finance package and FY17 Results
For personal use only Finance package and FY17 Results Investor presentation 29 August 2017
Slide 2: Important Notice – Disclaimer
Not for release or distribution in the United States of America Important Notice – Disclaimer This investor presentation (“Presentation”) is issued by Cooper Energy Limited ABN 93 096 170 295 (“Cooper Energy” or “COE”). This Presentation has been issued by Cooper Energy in relation to: • Provision o
Slide 3: Today's announcements
Not for release or distribution in the United States of America Today’s announcements Finance, Sole FID, Earnings and Reserves For personal use only 1. A$400 million fully underwritten finance package (“the Finance Package”) Cooper Energy has announced a fully underwritten Finance Package comprising
Slide 4: Significance
Not for release or distribution in the United States of America Significance Finance Package favourable for cost, balance sheet, reserves and delivery of growth For personal use only 1. Funding has been secured for Sole and other opportunities with quality counterparties following a competitive proc
Slide 5: Bank debt package
Not for release or distribution in the United States of America Bank debt package Element/term Features For personal use only A$250 million reserve • Senior secured based lending (RBL) • ~ $220 million expected to be available at financial close based on P90 capex, of which ~$200 million would be fa
Slide 6: Equity raising
Not for release or distribution in the United States of America Equity raising Offer Structure For personal use only • Fully underwritten equity raising of approximately $135 million comprising: – an accelerated non-renounceable institutional entitlement offer; plus – a non-renounceable retail entit
Slide 7: Cooper Energy investment highlights
Not for release or distribution in the United States of America Cooper Energy investment highlights For personal use only Secures Sole funding & 3-year growth profile • Sole fully funded; FID accomplished • 362% reserve uplift through reserve recognition post FID • Underpins 5 times production growt
Slide 8: Production profile from existing assets and projects
Not for release or distribution in the United States of America Production profile from existing assets and projects Gas production from current assets has capacity to drive 3 year, 5 times, production uplift For personal use only Cooper Energy total production MMboe 4.1 Gippsland Otway 0.4 1.9 1.4
Slide 9: Finance requirements
Not for release or distribution in the United States of America Finance requirements1 Finance package incorporates project finance requirements and funding for identified growth opportunities and commitments outside Sole For personal use only $ million Debt finance requirements 66 20 (21) 18 (199) 3
Slide 10: Sources and applications of funds
Not for release or distribution in the United States of America Sources and applications of funds For personal use only Sources $m Uses $m Cash at 30 June 17 148 Remaining Sole capex from 1 July 17 (P50 case) 346 Debt for construction (P50 case)1 199 Santos FID payment 20 Gross equity raising 135 Ba
Slide 11: Proforma balance sheet: for Sole impacts only
Not for release or distribution in the United States of America Proforma balance sheet: for Sole impacts only Finance package maintains conservative gearing post Sole construction For personal use only Pro-forma Pro-forma post Sole $ million unless otherwise indicated 30-Jun-2017 post financing1 con
Slide 12: Opportunities and commitments
Not for release or distribution in the United States of America Opportunities and commitments $66 million & operating cash flows fund production and value opportunities1 For personal use only Cooper Basin Exploration & development capex Onshore Otway Basin Gas exploration Offshore Otway Basin • Casi
Slide 13: Building value from gas opportunities within portfolio
Not for release or distribution in the United States of America Building value from gas opportunities within portfolio Implementing a plan to create additional value from an opportunity rich gas portfolio For personal use only Portfolio Strategy Contracting Casino Henry gas now • Casino Henry uncont
Slide 14: Gas market update
Not for release or distribution in the United States of America Gas market update Gas buyers’ enthusiasm to secure supply unchanged, spot price stabilised just below $10/GJ For personal use only Cooper Energy • Commenced detailed discussions with gas buyers for supply contracts from Casino Henry (Ot
Slide 15: Reserves post Sole FID
Not for release or distribution in the United States of America Reserves post Sole FID 362% uplift to 54.1 million boe Proved and Probable Reserves For personal use only MMboe 55 • Sole gas reclassified from 2C Contingent Resources to Proved and 0.3 54.1 Probable (2P) reserves following FID 50 45 •
Slide 16: Australian Proved and Probable Reserves; mid & small caps
Not for release or distribution in the United States of America Australian Proved and Probable Reserves; mid & small caps Cooper Energy holds the largest Australian conventional gas reserves of its peer group For personal use only Australian 2P reserves 1 MMBoe 48.4 Oil 52.4 51.9 Gas & gas liquids 7
Slide 17: Equity raising timetable
Not for release or distribution in the United States of America Equity raising timetable Announcement of the Equity Raising 29 August 2017 For personal use only Institutional Offer opens 29 August 2017 Institutional Offer closes 30 August 2017 Trading Halt lifted - shares commence trading on ASX on
Slide 18: FY17 results
For personal use only 3. FY17 results
Slide 19: FY17 results: main features
Not for release or distribution in the United States of America FY17 results: main features Established Cooper Energy as south-east gas supplier, project Operator and developer For personal use only Financial & Portfolio Subsurface Development operating • TRCFR1 of 1.98 vs zero in • Completed withdr
Slide 20: Safety
Not for release or distribution in the United States of America Safety Successful investment in continuous improvement and culture initiatives For personal use only • TRCFR = 1.98 (FY16 TRCFR = 0.0) Total Recordable Case Frequency Rate (TRCFR) − 501,000 hours worked in FY17 Events per million hours
Slide 21: Key financial results
Not for release or distribution in the United States of America Key financial results Lower oil volumes and revenue; statutory and underlying loss For personal use only $ million unless otherwise indicated FY17 FY16 change Sales volume Oil MMbbl 0.32 0.45 - 29% Gas PJ 3.6 - 100% Sales revenue 39.1 2
Slide 22: Movement in underlying NPAT
Not for release or distribution in the United States of America Movement in underlying NPAT Earnings affected by costs of acquiring and integrating assets, systems and operatorship and finance process For personal use only Underlying net profit after tax $ million Includes 6 month of Otway gas reven
Slide 23: Movement in cash and investments
Not for release or distribution in the United States of America Movement in cash and investments Cash flow from operations and capital raisings contribute to higher cash For personal use only $ million -42.1 -65.0 Total cash & investments 148.2 201.9 -1.2 0.7 147.5 Cash & deposits Total cash & inves
Slide 24: Production and reserves at June 2017
Not for release or distribution in the United States of America Production and reserves at 30 June 2017 Production up 109% with 6 months Otway production. Reserves up on acquisition and drilling For personal use only Production 2P Reserves1 MMboe 1.0 0.7 MMboe 11.7 0.7 Cooper oil 10.6 0.15 Indonesia
Slide 25: Offshore Otway Basin FY17
Not for release or distribution in the United States of America Offshore Otway Basin FY17 Gas production and marketing for new contracts from March’18 For personal use only FY17 outcomes Key Assets • Acquired assets effective 1 January ‘17 • Casino Henry gas project (50% interest & Operator) • Opera
Slide 26: Gippsland Basin FY17
Not for release or distribution in the United States of America Gippsland Basin FY17 Cost competitive resource, existing plant and Sole production planned for FY19 For personal use only Sole Gas Project Key Assets: (all 100% equity & Operator) • Acquired 100% interest with acquisition of Santos’ 50%
Slide 27: Sole gas project
Not for release or distribution in the United States of America Sole gas project New supply for south-east Australia with blue chip customers & uncontracted gas For personal use only Midstream: Orbost Gas Plant (APA1 100%) Upstream: Agreement executed 1/6/2017 • 249 PJ 2 2P gas APA to: • Ready to pr
Slide 28: Sole gas project: current and completed work
Not for release or distribution in the United States of America Sole gas project: current and completed work 14% of work completed to end July. Work and costs on schedule For personal use only Onshore Pipeline Wells Bulk earthworks completed Welding of shore crossing pipeline Rig contracted: O
Slide 29: Sole gas project schedule
Not for release or distribution in the United States of America Sole gas project schedule On track for first gas in March 2019 For personal use only H2 2017 H1 2018 H2 2018 H1 2019 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Phase EXECUTE OPERATE S
Slide 30: Cooper Basin FY17
Not for release or distribution in the United States of America Cooper Basin FY17 Low cost production, drilling success contributes to 40% increase in year end 2P reserves For personal use only Key figures FY17 FY16 Production Crude oil Kbbl 0.25 0.32 2P Reserves1 MMbbl oil Developed 1.1 1.0 Undevel
Slide 31: FY18 guidance
FY18 guidance For personal use only • Production guidance : 1.4 MMboe FY18 capital expenditure outlook • Drilling: $ million approximate – Cooper Basin: 3 wells & completion of 5 wells FY18 Expenditure FY18 Wells # – Gippsland: 2 wells (Sole): Total Exp. Dev. Exp. Dev. • Oil operating costs per barr
Slide 32: Wrap-up
Not for release or distribution in the United States of America Wrap-up For personal use only 1. Finance package announced today provides funding1 for Sole and capital for identified opportunities and commitments outside Sole. 2. Cooper Energy has selected the Sole financing option which delivers ef
Slide 33: Appendices
Appendices For personal use only Further company information Key risks Offer jurisdictions
Slide 34: Transition to offshore Operator and project developer
Not for release or distribution in the United States of America Transition to offshore Operator and project developer Operator of major projects and assets For personal use only Perth Project & Development team • Senior development and project management • 4 staff; 41 contractors Adelaide • Proven i
Slide 35: Offshore Otway FY18 outlook
Not for release or distribution in the United States of America Offshore Otway FY18 outlook Gas production, marketing for new contracts to supply at new prices from March’18 For personal use only Casino Henry (50% and Operator) • Contracting gas to supply from March 2018; Casino-5 pressure anomaly r
Slide 36: Gippsland Basin FY18 outlook
Not for release or distribution in the United States of America Gippsland Basin FY18 outlook Sole project to approach 50% completion by end of FY18; assessing Manta funding options For personal use only Sole Gas Project • Sole production wells drilled from March • Pipeline manufacturing complete • U
Slide 37: Offshore Otway Basin prospectivity
Not for release or distribution in the United States of America Offshore Otway Basin prospectivity Attractive low risk portfolio located adjacent to infrastructure and market For personal use only • 33 prospects identified in VIC/P44, VIC/RL11, VIC/RL12, VIC/L24 and VIC/L30 • 21 prospects within 5km
Slide 38: Cooper Basin FY18 outlook
Not for release or distribution in the United States of America Cooper Basin FY18 outlook Stable production For personal use only • FY17 Callawonga development wells to be connected Dec qtr Key figures FY17 FY18 f Production Crude oil Kbbl 0.25 ~0.24 • Exploration: Capex $ m 6 7 - PEL 92: 1 gas expl
Slide 39: South-east Australia gas supply costs in 2020
Not for release or distribution in the United States of America South-east Australia1 gas supply costs in 2020* Cooper Energy projects are cost competitive for south-east Australia For personal use only Delivered Melbourne city gate cost for gas from eastern Australia available for delivery to domes
Slide 40: Reserves and Contingent Resources at August 2017
Not for release or distribution in the United States of America Reserves and Contingent Resources at 25 August 2017 1P (Proved) 2P (Proved + Probable) 3P (Proved + Probable + Possible) Reserves Unit For personal use only Cooper Otway Gippsland Total1 Cooper Otway Gippsland Total1 Cooper Otway Gippsl
Slide 41: Senior management
Not for release or distribution in the United States of America Senior management For personal use only Managing Director General Manager, Development Company Secretary & General Manager, Commercial David Maxwell Duncan Clegg Legal Counsel & Business Development Alison Evans Eddy Glavas David Maxwel
Slide 42: Key Sole gas project risks
Not for release or distribution in the United States of America Key Sole gas project risks Risk Description Analysis of the Sole gas project COE has undertaken financial, operational, business and other analysis in respect of the Sole gas project in order to determine its readiness to proceed to FID
Slide 43: Key Sole gas project risks (cont'd)
Not for release or distribution in the United States of America Key Sole gas project risks (cont’d) Risk Description Domestic Gas Market COE has identified an opportunity to provide natural gas from the Sole gas project to the south-east Australia gas market. The market is subject to the fluctuation
Slide 44: Business risks
Not for release or distribution in the United States of America Business risks Risk Description Exploration and production The future profitability of COE and the value of its shares are directly related to the results of exploration, development and production activities as well as costs and prices
Slide 45: Business risks (cont'd)
Not for release or distribution in the United States of America Business risks (cont’d) Risk Description Counterparties The ability of COE to achieve its stated objectives will depend on the performance of the counterparties under the various agreements it has entered into. If any counterparties do
Slide 46: Business risks (cont'd)
Not for release or distribution in the United States of America Business risks (cont’d) Risk Description Government actions COE requires government regulatory approvals for its operations. The impact of actions, including delays and inactions, by governments in Australia or internationally may affec
Slide 47: General risks
Not for release or distribution in the United States of America General risks Risk Description General market and share price There are general risks associated with investments in equity capital such as COE shares. The trading price of COE shares may fluctuate with movements in equity capital marke
Slide 48: Share and Entitlement Offer risks
Not for release or distribution in the United States of America Share and Entitlement Offer risks Risk Description Underwriting COE has entered into an Underwriting Agreement with Euroz and Canaccord Genuity (together, the "Underwriters") under which the Underwriters have agreed to fully underwrite
Slide 49: Offer jurisdictions
Not for release or distribution in the United States of America Offer jurisdictions International Offer Restrictions This document does not constitute an offer of New Shares of COE in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, a
Slide 50: Offer jurisdictions (cont'd)
Not for release or distribution in the United States of America Offer jurisdictions (cont’d) Hong Kong WARNING: This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong, nor has it been auth
Slide 51: Offer jurisdictions (cont'd)
Not for release or distribution in the United States of America Offer jurisdictions (cont’d) Switzerland The New Shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange ("SIX") or on any other stock exchange or regulated trading facility in Switzerland. Thi
Slide 52: Notes on calculation of Reserves and Resources
Not for release or distribution in the United States of America Notes on calculation of Reserves and Resources Notes on Calculation of Reserves and Contingent Resources Cooper Energy has completed its own estimation of reserves and resources in accordance with the definitions and guidelines in the S
Slide 53: Abbreviations
Not for release or distribution in the United States of America Abbreviations $, A$ Australian dollars unless specified otherwise For personal use only Bbl barrels of oil boe barrel of oil equivalent EBITDA earnings before interest, tax, depreciation and amortisation FEED Front end engineering and d