Otto Energy Limited · ASX:OEL
Otto Energy — RIU Good Oil Conference 2019
21 slides from Otto Energy's conference presentation, Sep 12, 2019
Slide 1: Good Oil Conference Presentation
Good Oil Conference Presentation 12 September 2019 ASX: OEL 1
Slide 2: Disclaimer
Disclaimer This presentation is provided for information purposes only and is not a disclosure document as defined under the Corporations Act 2001 (Cth) This presentation does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase, sale or issue of any secur
Slide 3: Non-operated conventional exploration and production in the Gulf of Mexico
Non-operated conventional exploration and production in the Gulf of Mexico Effective deployment of resources and capital to maximize return and achieve strategic production goal Otto’s partnership advantage Otto’s Gulf of Mexico strategy • Positioned as a non-operating partner of choice with • Local
Slide 4: Investment Exposure to significant activity in the Gulf of Mexico
Investment Exposure to significant activity in the Gulf of Mexico ASX-listed, US focused, diversified conventional oil and gas production and exploration business Otto’s current activity Operating Partner • Current production of ~2250 boepd will generate net Hilcorp Energy Byron Energy operating cas
Slide 5: Free Cash Flow Funding Drilling Record
Otto Energy Limited (ASX:OEL) Strong base of free cash flow to fund continued growth through the drill bit Free Cash Flow • Low cost oil producer - expected to generate net operating cashflow of ~US$30m per annum from existing production of ~2250 boepd • Current and future developments to be funded
Slide 6: Production - South Marsh Island 71, offshore Gulf of Mexico
Production - South Marsh Island 71, offshore Gulf of Mexico ~1560 boepd (Net Revenue Interest at 40.625%) provides strong cashflow foundation for growth South Marsh Island 71 Joint Venture Otto Energy 50.0% Byron Energy (operator) 50.0% Fiscal Terms Federal Royalty 18.75% Held by production licence
Slide 7: Production - Lightning, onshore Texas Gulf Coast
Production - Lightning, onshore Texas Gulf Coast First discovery under Gulf Coast Drilling program – 2nd development well planned for Q4 CY19 to increase production Lightning Discovery Joint Venture Otto Energy 37.5% Hilcorp Energy (operator) 62.5% Fiscal Terms Landowner Royalty 24.9% Held by produc
Slide 8: Discovery – Green Canyon 21 “Bulleit”, offshore Gulf of Mexico
Discovery – Green Canyon 21 “Bulleit”, offshore Gulf of Mexico Two target discovery with Talos Energy – wellbore suspended for completion in 1H CY20 Green Canyon 21 “Bulleit” Prospect ~16 km tie-back Joint Venture Otto Energy 16.67% GC21 - Bulleit Prospect Talos Energy (operator) 50.00% Enven Energy
Slide 9: Evaluation – Mustang, onshore Texas Gulf Coast
Evaluation – Mustang, onshore Texas Gulf Coast 2nd discovery in Hilcorp program – production testing results expected in early Q4 2019 Mustang Prospect Joint Venture Otto Energy 37.5% Hilcorp Energy (operator) 62.5% Mustang, Corsair, Fiscal Terms Landowner Royalty 25.0% Hellcat Complex Location Onsh
Slide 10: Pipeline of Opportunities
Pipeline of Opportunities Otto has assembled an exciting pipeline of upcoming activities as a result of its non-operating partnership strategy CY 2019 CY 2020 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 SM 71 Low-cost production SM71 F-4 SM71 F-5 Lightning Low-cost production Green #2 Green Cany
Slide 11: Appendix
4 a RARE) Appendix
Slide 12: Corporate Snapshot
Corporate Snapshot (ASX:OEL) CAPITAL STRUCTURE FUNDING POSITION SHAREHOLDERS Fully paid ordinary shares 2.460b Cash (30 June 2019) US$7.4m Perennial Value Management 14.8% Performance Rights 46.8m Debt Nil Molton Holdings 12.4% Market capitalisation1 A$126.7m AMP 5.0% Directors & Management 2.9% $0.
Slide 13: Otto Energy Gulf of Mexico Area Key Projects
Otto Energy Gulf of Mexico Area Key Projects Strong cashflow base to fund growth from oil and gas sales at SM 71 and Lightning Metric SM 71 Lightning Gulf Coast Green Canyon 21 VR 232 Type JV JV JV JV JV 37.5% WI 100% WI Ownership Structure 50% WI 37.5% WI 16.67% WI (50% of Cost1) NRI 40.625% 28.50%
Slide 14: Board of Directors
Board of Directors John Jetter Ian Macliver Ian Boserio Kevin Small Non-Executive Chairman Non-Executive Director Non-Executive Director Non-Executive Director & LLB, BEc INSEAD BComm, FCA, SF Fin, FAICD BSc (Hons) Senior Exploration Consultant Former MD/CEO J.P. Morgan Managing Director Grange Exec
Slide 15: Management Team
Management Team Matthew Allen David Rich Krista Walter Philip Trajanovich Managing Director & CEO Chief Financial Officer & Company Secretary Vice President, Investor Relations Senior Commercial Manager BBus, FCA, FFin, GAICD BCom. FCA, GAICD, Grad.Dip.CSP AGIA B.S Geosci, M.S. Marine Sci, MBA B.Com
Slide 16: Under evaluation - Proposed F4 and F5 wells to add to production at SM 71
Under evaluation - Proposed F4 and F5 wells to add to production at SM 71 • Otto holds a 50% WI and a 40.625% NRI in SM 781 • Two new wells currently being permitted for SM 71 by the Operator, Byron Energy • One step-out well to extend the limits of the D5 reservoir • One development well to more ef
Slide 17: June Quarter 2019 Highlights
June Quarter 2019 Highlights Otto achieved a 14% increase in sales revenue for the quarter on the back of a 5% increase in oil production, improved oil prices and commencement of production at Lightning Oil and Gas Sales • WI Share 134,628 bbls of oil and 297,370 Mscf of gas and 2,847 bbls of NGLs •
Slide 18: Glossary
Glossary Abbreviation Expanded Term Definition GoM Gulf of Mexico Million barrels of oil equivalent/ MMboe / mboe thousand Million standard cubic feet per day MMscfpd (gas) Bopd/boepd Barrels of oil (equivalent) per day TD Total Depth The depth of the bottom of the well MD Measured Depth The total l
Slide 19: Competent Persons and Cautionary Statements
Competent Persons and Cautionary Statements Competent Persons Statement The information in this report that relates to oil and gas resources in relation to the Gulf Coast Package (Lightning, Mustang, Beluga, Oil Lake, Tarpon and Mallard) in the Gulf of Mexico was compiled by technical employees of H
Slide 20: Competent Persons and Cautionary Statements
Competent Persons and Cautionary Statements Prospective Resources Prospective resource estimates in this report for SM 71 are prepared as at 30 June 2018. Refer to the ASX release of 6 August 2018. The Gulf Coast Package prospective resource estimates in this report are effective as at 30 June 2018.
Slide 21: Address Contact Info Telephone
Address 32 Delhi Street West Perth WA 6005 Australia 1200 Smith Street Suite 1080 Houston TX 77002 United States of America Contact Info Email: info@ottoenergy.com Web: www.ottoenergy.com Telephone + 61 2 4017 1257 +1 713 893 8894 21