Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — Goldman Sachs Emerging Companies Conference (April 2019)
30 slides from Amplitude Energy's conference presentation, Apr 4, 2019
Slide 1: Presentation to Goldman Sachs Emerging Companies Conference
Energy Presentation to Goldman Sachs for south-east Australia Emerging Companies Conference For personal use only 4 April 2019 Sole-3 flow-back 5 July 2018
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”). For personal use only Summary information: This Presentation contains summary information about Cooper Energy and its activities as at the date
Slide 3: Cooper Energy finds, develops and commercialises oil and gas
Cooper Energy For personal use only finds, develops and commercialises oil and gas. We do this with care and strive to provide attractive returns for our shareholders and good commercial outcomes for our customers.
Slide 4: Business focused on south-east Australia
Our business is focussed on south-east Australia, where we: For personal use only • are one of the lowest cost gas suppliers • set to increase our gas production by 4 times in coming months • 119 PJ of uncontracted gas being marketed to customers keen to secure supply • resources and projects that s
Slide 5: Snapshot
Snapshot For personal use only Key statistics* Proved & Probable Reserves 52.4 MMboe Contingent Resources (2C) 34.9 MMboe Market capitalisation $843 million Net cash/(debt) $7 million Issued share capital (million) 1,621.6 Cooper Basin * Reserves and resources as at 30 June 2018, net cash as at 31 D
Slide 6: Strategy origins
Strategy origins Recognition in 2012 of gas business opportunity that would be created by start-up of LNG For personal use only Forecast gap between available supply and forecast demand identified as business building opportunity Source: AEMO 6
Slide 7: Identifying where to play the gas to south-east Australia opportunity
Identifying where to play the “gas to south-east Australia” opportunity Strategy formulation began with basin by basin analysis of business fundamentals For personal use only Cooper Energy investment Analysis indicated the criteria: Otway, Gippsland and • Superior position on delivered Cooper Basins
Slide 8: South-east gas market outlook
South-east gas market outlook Gap between local production and supply creating favourable market for south-east Australian gas For personal use only AEMO forecast of south-east Australian gas production, demand and supply • South-east Australia is reliant on Queensland gas to meet PJ shortfall betwe
Slide 9: Gas supply from 2P reserves in Gippsland & Otway basins
Gas supply from 2P reserves in Gippsland & Otway basins 3 year growth profile commencing, revenue upside from new supply agreements For personal use only Gas sales profile by project Uncontracted Sole start or tail gas* contracted & uncontracted • Commencement of gas production from Sole to trigger
Slide 10: Gas asset portfolio: production, development & exploration assets
Gas asset portfolio: production development & exploration assets Assets acquired for competitiveness in delivered gas to south-east Australia For personal use only Otway Hub: gas production, development & exploration • Casino Henry gas production (Operator, 50% interest) 2P Reserves* • Minerva gas p
Slide 11: Operations: offshore Otway Basin
Operations: offshore Otway Basin Operated gas production, development and exploration in low cost gas province For personal use only Production H1 FY19 FY18 Sales gas PJ comprised of: 3.28 7.04 Casino Henry 2.74 5.7 Minerva 0.54 1.31 Condensate kbbl 2.4 6.2 2P Reserves Developed Undeveloped Total Sa
Slide 12: Minerva Gas Plant
Minerva Gas Plant Strategically located offering gains in gas price, processing, recovery rates & production For personal use only Minerva Gas Plant (10%)* * Equity to increase to 50% on completion of acquisition by Casino Henry Joint Venture as announced 1 May 2018 • Casino Henry Joint Venture agre
Slide 13: Offshore Otway Basin exploration
Offshore Otway Basin exploration Two leading targets identified for drilling from May 2019 For personal use only • Subsurface / structures well defined on 3D seismic data • 2 exploration wells, Cooper Energy share (50%) = ~$40 million • Annie: high quality Waarre C primary reservoir target (as in Mi
Slide 14: Gippsland Basin development
Gippsland Basin development Cost competitive resource, existing plant and Sole production planned for FY20 For personal use only Sole Gas Project (100% interest) • Offshore project due for completion end-May 2019 • APA assessing most likely Orbost Gas Plant completion date within September quarter •
Slide 15: Current status
Current status 93%1 complete and within budget. Offshore project on schedule for completion end-May. For personal use only Offshore project Onshore (APA) Shore Crossing Production wells Umbilical Pipeline Orbost Gas Plant ✓ Completed ✓Completed ✓Completed □ To be completed: May □ To be completed: •
Slide 16: Operations: Cooper Basin
Operations: Cooper Basin Low cost, cash-generating Western Flank oil production For personal use only • Low production cost, high cash margin, oil production Production H1 FY19 FY18 • Reserve replacement through drilling and field Crude oil MMbbl: 0.12 0.27 performance Cost per bbl A$ 36.19 33.08 •
Slide 17: Funding
Funding Redetermination released funds and increased available debt For personal use only • Redetermination of $250 million project finance facility which recognises Sole project $ million 31 Dec 18 30 Jun 18 performance and outlook Cash 193.9 236.9 • Variations to key terms include: Drawn debt 186.
Slide 18: Projects pipeline
Projects pipeline 5 year development program that can lift gas production more than 10 times FY19 levels For personal use only FY19 FY20 FY21 FY22 FY23 FY24 Sole construct Sole1 production 68TJ/d (~24 PJ per annum) expected within September Quarter Minerva Gas Plant2 acquire, integrate and operate H
Slide 19: Expected production from existing 2P Reserves and 2C Resource
Expected production from existing 2P Reserves and 2C Resource On the cusp of transformative uplift in production and revenue generation For personal use only Indicative Cooper Energy oil and gas production million boe • Sole gas field scheduled to commence after completion of 10 offshore project (du
Slide 20: Summary
Summary 1. On the cusp of transformative uplift in production and cash flow: For personal use only • Commencement of Sole gas sales expected September quarter 2019 on APA plant completion • Sole to add 24 PJ to existing gas production of 6 PJ pa 2. Price and volume exposure to east coast gas 3. Pipe
Slide 21: Appendices
For personal use only Appendices
Slide 22: Southern states gas prices: ACCC view
Southern states gas prices: ACCC view Gas price and LNG netback trend For personal use only 2019 expected prices Average monthly commodity prices offered for 2019 supply against contemporaneous expectations of 2019 LNG netback prices (southern states) Expected 2019 wholesale gas commodity prices in
Slide 23: Profile of contracted and uncontracted gas by project
Profile of contracted and uncontracted gas by project Existing reserves and resources offer growth before exploration upside For personal use only Gas sales profile by project contracted & uncontracted PJ pa Manta (subject to appraisal well and FID) Manta uncontracted 25 24 18 18 Sole start or tail
Slide 24: Otway Basin: Penola Trough onshore
Otway Basin: Penola Trough onshore Dombey-1 to be drilled to evaluate Pretty Hill Formation and Sawpit Sandstone potential For personal use only South Australia • Haselgrove-3 discovery in adjoining PPL 62 confirmed conventional gas prospectivity of Sawpit Sandstone at depths below previous producin
Slide 25: 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 Oil MMbbl 0.0 0.6 1.2 Condensate MMbbl 1.7 2.6 4.0 Gas PJ 68 106 165 Manta unrisked Prospective Resource1 estimate Low (P90) Best (P50) High (P10) Oil MMbb
Slide 26: Exploration: Gippsland Basin
Exploration: Gippsland Basin New prospectivity adjacent to existing Patricia Baleen infrastructure For personal use only • VIC/P72 adjoins VIC/L21 (Cooper Energy 100%) which holds the depleted Patricia Baleen gas field and its associated subsea production infrastructure connected to the Orbost Gas P
Slide 27: Reserves and Contingent Resources at June 2018
Reserves and Contingent Resources at 30 June 2018 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 15 0.0 15 0 26 0 26 0 36 0 36
Slide 28: Senior management
Senior management For personal use only Managing Director General Manager, Development Company Secretary & Legal General Manager, Commercial & David Maxwell Duncan Clegg Counsel Business Development Alison Evans Eddy Glavas Alison Evans is an experienced company secretary and Eddy Glavas has more th
Slide 29: 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 Contingent Resources for its fully-operated Gippsland Basin assets, and elsewhere based on information provided by the permit Operat
Slide 30: 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
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