Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — Euroz Securities Rottnest Institutional Conference 2020
33 slides from Amplitude Energy's conference presentation, Mar 10, 2020
Slide 1: Presentation to Euroz Securities Rottnest Institutional Conference 2020
For personal use only Presentation by David Maxwell Managing Director to Euroz Securities Rottnest Institutional Conference 2020 10 March 2020 David Maxwell, Orbost Gas Processing Plant Managing February 2020 Director
Slide 2: Compliance statements and important information
Compliance statements and important information. This investor presentation (“Presentation”) is issued by Cooper Energy Limited ABN 93 096 170 295 (“Cooper Energy” or “the company”) ASX: COE. Summary information: This Presentation contains summary information about Cooper Energy and its activities a
Slide 3: Cooper Energy finds, develops and commercialises oil and gas
Cooper Energy finds, develops and commercialises oil and gas. For personal use only We do this with care and strive to provide attractive returns for our shareholders and good commercial outcomes for our customers. 3
Slide 4: Business focussed on south-east Australia
Our business is focussed on south-east Australia, where we: For personal use only • are among the most competitive cost gas suppliers • set to increase our gas production by 4 times • hold take-or-pay contracts with blue chip gas customers offering stable long term cash flows • have projects to brin
Slide 5: Gas business model
Gas business model Optimisation of gas supply to blue chip customers from a portfolio of gas assets among the most competitive sources of supply for south-east Australia For personal use only Otway Hub Otway, Operator & 50:50 JV with Gippsland Gippsland, Operator & 100% interest Mitsui1 • Sole gas f
Slide 6: Gas contract portfolio
Gas contract portfolio Fully contracted CY20. Take or pay contracts for volume equal to 87% of planned production to June ’22. For personal use only • Gas contract strategy prioritises predictable long term stable cash flow and 2P Gas production profile by contract status collaborative customer rela
Slide 7: Wholesale vs Term gas
Wholesale vs Term gas For personal use only “Spot” gas Term gas • “Spot markets” are daily/intra-day wholesale gas balancing • Majority of demand filled under bilateral agreements between mechanisms established at defined gas hubs buyers and sellers – buyer and seller seek supply and price certainty
Slide 8: Victoria spot price
Victoria spot price Lower demand and LNG netback reflected in lower spot in CY20. Futures anticipate return to CY19 levels For personal use only Victorian Average Daily Wholesale Gas Price1 VIC Gas Futures2 by month by year $/GJ $/GJ 10.00 12.00 $9.65 2018 2019 2020 9.00 $8.25 $9.50 $7.95 10.00 8.00
Slide 9: Term gas prices vs LNG netback
Term gas prices vs LNG netback ACCC research indicates term gas price and expectation within $8/GJ to $10/GJ band For personal use only ACCC1 LNG netback to Wallumbilla $/GJ 14.00 Transport to Victoria adds 12.00 ~ $2/GJ - $2.50 /GJ to delivered cost. +$8/GJ to 10.00 +$10/GJ range 8.00 6.00 4.00 2.0
Slide 10: Southern states gas production and demand
Southern states gas production and demand Decline of production from existing sources creates large supply opportunity For personal use only • Shortfall of production from developed reserves for south-east Australian demand forecast to widen: – ~75 PJ in 2022 – ~200 PJ in 2024 • Production from unde
Slide 11: Gas transportation charges to south-east Australian cities
Gas transportation charges to south-east Australian cities Pipeline tariffs reported by ACCC For personal use only • Transportation of gas from south-east Queensland to south- east Australia requires tariff: – Adelaide: $1.60/GJ - $2.00/GJ – Sydney: $1.63/GJ - $2.42/GJ Mmba - Adl SW Qld – Melbourne:
Slide 12: South-east Australian gas market wrap-up
South-east Australian gas market wrap-up For personal use only Market situation Cooper Energy position 1. Spot (VIC DWGM) pricing in 2020 showing impact of lower demand plus lower LNG netback 1. Cooper Energy cash flows are underpinned by contract book 2. VIC DWGM is not driving term price. 2. Take
Slide 13: Projects
For personal use only Projects Pipeline spooling, Crib Pt
Slide 14: Minerva Gas Processing Project
Minerva Gas Processing Project A low-cost, processing hub for Casino Henry gas and new discoveries For personal use only The Opportunity DEVELOP Phase underway • Integration of low cost processing hub for Casino • Commenced November 2019 Henry and new discoveries • FEED Engineering underway • Owners
Slide 15: Otway Phase-3 Development Project (OP3D)
Otway Phase-3 Development Project (OP3D) Project to bring 100+ PJ1 of gas to market from 2022 onwards, utilising Minerva Gas Plant For personal use only The Opportunity SELECT Phase underway • Development of >100 PJ1 of gas from Henry and Annie • Commenced February 2020 • Gas to market in CY 2022/20
Slide 16: Manta
Manta Next phase of Gippsland development with 121 PJ gas and 3 MMbbl liquids 2C Contingent Resource1 For personal use only The Opportunity SELECT Phase underway • Second phase Gippsland gas development • Manta-3 well design • Additional gas exploration potential in deeper Manta reservoirs • Engagem
Slide 17: Key event outlook 2020
Key event outlook 2020 Transformational uplift in production and cash generation. Commitment to projects for the next wave of growth. For personal use only • Gas production up from 16 TJ day to > 80* TJ day Sole start-up March 2020 (APA guidance) • Production guidance upgrade • Commitment to upgrade
Slide 18: Q&A
For personal use only Q &A Ocean Monarch drilling Annie-1 Otway Basin
Slide 19: Appendices
For personal use only Appendices Otway coastline, Pt Fairy
Slide 20: Cooper Energy Snapshot
Cooper Energy Snapshot For personal use only Key statistics* Proved & Probable Reserves 52.7 MMboe Contingent Resources (2C) 26.9 MMboe Market capitalisation $765 million Cooper Basin Net debt $73.3 million • Oil production & exploration Issued shares (million) 1,626.6 Onshore Otway Basin Register c
Slide 21: Profile of contracted and uncontracted gas reserves by project
Profile* of contracted and uncontracted gas reserves by project OP3D provides opportunity for future gas contracts For personal use only 2P Gas sales profile by project OP3D in SELECT phase contracted & uncontracted for production from FY23 PJ pa 1 1 1 1 1 2 3 5 10 23 23 20 23 23 23 22 20 18 13 6 9
Slide 22: Current growth projects
Current growth projects Status of gas development and exploration projects under CARP (Cooper Energy Asset Realisation Process) For personal use only Value Chain Explore Develop Construct Operate Project Phase ASSESS SELECT DEVELOP EXECUTE OPERATE FID Sole Commissioning Plant Minerva Gas Plant FEED
Slide 23: Capital expenditure; updated guidance
Capital expenditure; updated guidance Incurred first half and forecast full year incurred For personal use only Original FY20 H1 FY20 H2 FY20 $ million incurred Actual Guidance Updated Guidance FY20 guidance Exploration Development Total Exploration Development Total Exploration Development Total Ot
Slide 24: Sole Gas Project
Sole Gas Project Offshore completed and gas plant commissioning underway. Expect full rate production in March. For personal use only Current status and schedule • Plant first phase commissioning underway using ‘sweet’ gas from pipeline • Second phase using field gas to commission raw gas facilities
Slide 25: Offshore Otway Basin FY20 first half
Offshore Otway Basin FY20 first half Secured the ingredients for growth: gas discovery, gas plant and well located exploration permit For personal use only • Annie gas discovery • Minerva Gas Plant acquired • VIC/P76 granted. Includes part of Annie gas field and Nestor, an ‘Annie look-alike’ prospec
Slide 26: Annie gas discovery
Annie gas discovery Contingent Resource assessed. Annie development now progressed to SELECT stage. For personal use only • Annie-1 drilled and logged gas discovery supported by seismic amplitude Annie Contingent Resource1 estimate: Gross (100% joint venture) field volume • High quality gas reservoi
Slide 27: Otway Basin: Penola Trough onshore
Otway Basin: Penola Trough onshore Dombey-1 gas discovery confirms potential. Further investigation required. For personal use only Rock properties: • 44.5 metre gross column in Pretty Hill Formation • 25 metre net pay • Gas sample recovered from Sawpit sandstone Production test • 20 metre interval
Slide 28: Manta gas and liquids resource
Manta gas and liquids resource Contingent Resource with exploration potential For personal use only Manta Contingent Resource1 estimate 1C 2C 3C Condensate MMbbl 2.2 3.4 5.4 Gas PJ 78 121 190 Manta unrisked Prospective Resource1 estimate Low (P90) Best (P50) High (P10) Oil MMbbl 1.0 1.5 2.3 Condensa
Slide 29: Gippsland exploration acreage
Gippsland exploration acreage Two permits located adjacent to producing or produced fields For personal use only VIC/P72 • Adjoins Patricia Baleen • Seismic inversion study conducted • Economic screening of prospects underway • Commitment of 1 exploration well VIC/P75 • Granted September 2019 • Comm
Slide 30: Cooper Basin
Cooper Basin Appraisal program completed. Development and exploration drilling to follow in March quarter For personal use only • 13 well appraisal program completed Key figures FY20 H1 FY19 H1 - 10 wells prior to 31 Dec 2019, 3 in Jan 2020 Production Crude oil kbbl 0.10 0.12 • Acquired data for bet
Slide 31: Executive Leadership Team
Executive Leadership Team For personal use only Managing Director Chief Financial Officer David Maxwell Virginia Suttell David Maxwell has over 30 years’ Virginia Suttell is a chartered accountant experience as a senior executive with with more than 25 years' experience, companies such as BG Group,
Slide 32: Notes on calculation of Reserves and Resources
Notes on calculation of Reserves and Resources Cooper Energy has completed its own estimation of Reserves and Contingent Resources for its fully-operated Gippsland Basin assets, and elsewhere based on information provided by the permit Operators (Beach Energy Ltd for PEL 92, Senex Ltd for Worrior Fi
Slide 33: 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 kbbl thousand barrels m metres MMbbl million barrels of oi
Cooper Energy — Euroz Securities Rottnest Institutional Conference 2020 on 6ix