Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — Investor Presentation (October 2017)
26 slides from Amplitude Energy's investor presentation, Oct 10, 2017
Slide 1: Investor pack
For personal use only Investor pack 10 October 2017
Slide 2: Important Notice – Disclaimer
Important Notice – Disclaimer This investor presentation (“Presentation”) is issued by Cooper Energy Limited ABN 93 096 170 295 (“Cooper Energy” or “COE”). Summary information: This Presentation contains summary information about Cooper Energy and its activities as at the date of this Presentation a
Slide 3: Cooper Energy – an introduction
Cooper Energy – an introduction ASX300, growing its business on a leading position in gas supply to south east Australia. For personal use only Key features: 1. Cash generating gas and oil production. 2. Growth profile of more than 5 times in 3 years to 2020. 3. Capital strength, current projects fu
Slide 4: Cooper Energy - assets
Cooper Energy - assets Portfolio built around winning position on cost curve For personal use only Key statistics* Proved & Probable Reserves 54.1 MMboe Contingent Resources (2C) 34.9 MMboe Production FY18 guidance 1.4 MMboe Market capitalisation $439 million Net cash/(debt) $147.5 million Cooper Ba
Slide 5: Background
Background Portfolio assembled through patient strategy execution over 5 years For personal use only 2011-12 Strategy & analysis Cooper Basin oil production International exploration Identifies opportunity in south-east Australia gas Identifies Gippsland and Otway basin as most competitive suppl
Slide 6: Production profile from existing assets and projects
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 Cooper Oil 1.1 0.7 0.25 0.24 0.25 0.24 FY17 FY18 FY19 FY20 • Otw
Slide 7: 2P gas and 2C gas in south-east Australia close to markets and infrastructure
Contracted and uncontracted gas 305 PJ 2P gas and 158 2C gas in south-east Australia close to markets and infrastructure For personal use only Otway Basin • 56 PJ proved & probable gas reserves at Casino Henry & Minerva • 43 PJ undeveloped; planning for development via Henry development well mid CY1
Slide 8: Gas market update
Gas market update Gas buyers’ enthusiasm to secure supply unchanged, spot price stabilised $8 to $10/GJ For personal use only Cooper Energy • Commenced detailed discussions with gas buyers for supply contracts from Casino Henry (Otway Basin) from March 2018 • Ongoing enquiries for gas supply Victori
Slide 9: South-east Australia gas supply costs in 2020
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 domestic market in 2020* AUD / GJ Typical peak daily quantity for 14
Slide 10: Offshore Otway Basin
Offshore Otway Basin Gas production and marketing for new contracts to supply from March’18 For personal use only Casino Henry (50% interest & Operator) • Supplying gas to EnergyAustralia under current contract which expires March ’18 • Processed at Iona Gas Plant • Pursuing new contract and process
Slide 11: Offshore Otway Basin prospectivity
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 of existing Casino- Henry-Netherby pipeline • 29 prospects with
Slide 12: Gippsland Basin
Gippsland Basin Cost competitive resource, existing plant and Sole production planned for FY19 For personal use only Sole Gas Project Key Assets: (all 100% equity & Operator) • Gas contracts secured • Sole gas project (VIC/L32) • Sale of Orbost Gas Plant to APA Group announced • Manta gas resource (
Slide 13: Sole gas project
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 proceed: March ‘17 • undertake $250 million plant Manta gas field
Slide 14: Sole gas project: the field
Sole gas project: the field Simple, well-defined structure with good reservoir quality For personal use only Shallow depth • Reservoir at shallow depths below the sea floor - mapped depth to top of gas column is 745 m subsea, maximum gas column height is 71.5 m Well defined, simple structure • Reser
Slide 15: Sole gas project: current and completed work
Sole gas project: current and completed work Within plan and budget; at end August 17% work completed (Sole & Gas Plant), offshore 21% completed For personal use only Onshore Pipeline Wells Bulk earthworks completed Welding of shore crossing pipeline Rig contracted: Ocean Monarch Site handov
Slide 16: Sole gas project schedule
Sole gas project schedule On track for first gas to plant in March 2019 For personal use only H1 FY18 H2 FY18 H1 FY19 H2 FY19 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 Subsurface Subsurface Team Support for Well Planning Ops
Slide 17: Cooper Basin
Cooper Basin 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 Undeveloped 0.6 0.3 Total 1.8 1.3 All numbers rounded and as a result some t
Slide 18: 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. • Operating costs per barrel:
Slide 19: Event pipeline
Event pipeline Fully funded activity program to lift production and add value through contracting and project delivery and derisking For personal use only H1 FY 18 H2 FY18 H1 FY19 • Sole FID – including funding • Commence Casino Henry gas • Drilling of Henry development well (agreed) sales under new
Slide 20: Wrap-up: Cooper Energy investment highlights
Wrap –up: Cooper Energy investment highlights For personal use only Best placed mid-tier gas supplier to south-east Australia • Large uncontracted conventional gas reserves located in south-east Australia • Gas reserves and resources well placed and competitive to generate value in a tight gas marke
Slide 21: Appendices
For personal use only Appendices
Slide 22: Bank debt package
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 facility drawn for P50 capex1 • Potential to increase available am
Slide 23: Reserves and Contingent Resources at August 2017
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 Gippsland Total1 Developed Sales Gas PJ 0 5 0 5 0 13 0 13 0 28 0 28 Oi
Slide 24: Senior management
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 Maxwell has over 30 years’ Duncan Clegg has over 35 years’ experience
Slide 25: Notes on calculation of Reserves and Resources
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 Society of Petroleum Engineers (SPE) 2007 Petroleum Resources For
Slide 26: Abbreviations
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 design kbbls thousand barrels m metres MMbbl million barrels of o