Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — Investor Presentation (July 2019)
30 slides from Amplitude Energy's investor presentation, Jul 22, 2019
Slide 1: Investor pack July 2019
Investor pack June 2019 For personal use only j Investor pack July 2019
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 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.
Slide 4: Strategy origins
Strategy origins Value-creation opportunity identified in 2012 for gas supply to south-east Australia For personal use only Forecast gap between available supply and forecast demand identified as business building opportunity Source: AEMO 4
Slide 5: Gas market outlook
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 PJ gas to meet shortfall between local pr
Slide 6: Gas asset portfolio
Gas asset portfolio Assets acquired for competitiveness in delivered gas price to south-east Australia For personal use only Otway Hub: gas production, development & exploration • Casino Henry gas production (Operator, 50% interest) • Minerva gas production (10%) Otway Hub Orbost Gas Plant • VIC/P44
Slide 7: Gas supply contract profile and customer base
Gas supply contract profile and customer base 2P reserves with a growth profile. Uncontracted gas that ranks in the most competitive delivered to south-east Australia For personal use only Gas sales profile contracted & uncontracted Existing customers PJ pa Uncontracted Contracted 4 9 8 8 7 8 8 2 12
Slide 8: Southern states gas prices: ACCC view
Southern states gas prices: ACCC view For personal use only Gas price and LNG netback trend 2020 expected prices Average monthly commodity prices offered for 2019 supply against Expected 2020 wholesale gas commodity prices in the East Coast Gas Market contemporaneous expectations of 2019 LNG netback
Slide 9: Update on recent developments
Update on recent developments Revenue up, Sole moving to completion, gas exploration and contracts For personal use only Sales revenue $ million Financial 80 • Full year revenue up 12% to record $75.5 million 70 • Full year production 1.3 million boe; within revised guidance 18.7 Development 60 20.6
Slide 10: Otway Basin gas hub
Otway Basin gas hub Cost competitive gas, plant and pipeline infrastructure in place with exploration potential For personal use only Casino Henry: production Minerva Gas Plant • Casino, Henry & Netherby gas • Currently owned by Minerva Joint fields Venture (Cooper Energy 10%, BHP • 50:50 JV with Mi
Slide 11: Offshore Otway Basin exploration
Offshore Otway Basin exploration Proven gas province with pipeline and processing plant in close proximity For personal use only Diamond Offshore Ocean Monarch Expected to arrive on location late July to drill Annie-1, followed by Elanora-1 Minerva Gas Plant Currently owned by Minerva Joint • Subsur
Slide 12: Gippsland Basin gas hub
Gippsland Basin gas hub Cost competitive resource, existing plant. Sole production planned for FY20. For personal use only VIC/P72: exploration Sole: production • Adjacent to producing, ex- • Production expected to commence producing gas fields and FY20 (Sept Qtr: APA) discoveries • 24 PJ per annum
Slide 13: 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 Manta uncontracted (subject to appraisal well and FID) 25 24 18 18 Sole uncommitted sa
Slide 14: Sole gas project
Sole gas project Onshore and offshore workstreams – commencement of onshore commissioning activities in September quarter For personal use only Onshore project: APA Group Offshore project: Cooper Energy $355 million offshore project: • $250 million upgrade to Orbost Gas Plant • construction complete
Slide 15: Sole gas project safety performance
Sole gas project safety performance Offshore construction completed with zero lost time injuries For personal use only • Project performance 1 June 2017 to 30 June 2019 • 561,362 hours worked • Project activities ranging from onshore weld and pipe, horizontal drill shore crossing, drill complete and
Slide 16: 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 Dombey-1 (planned) • Spud expected late August 2019 to test similar stratigraphic section as Haselgrove gas field in adjoining PPL 62 which confirmed conve
Slide 17: Operations: Cooper Basin
Operations: Cooper Basin Drilling to ramp up in low cost high margin oil acreage For personal use only • Low production cost, high cash margin, oil production from PEL 92 joint venture (Cooper Energy 25%, Beach Energy, Operator 75%) • Drilling to ramp up in FY20 with step out appraisal program simil
Slide 18: Projects pipeline development program
Projects pipeline 5 year development program can lift gas production more than 10 times FY19 levels – excluding exploration For personal use only FY19 FY20 FY21 FY22 FY23 FY24 Sole construct Sole:1 production 68TJ/d (~24 PJ per annum) Minerva Gas Plant:2 acquire, integrate and operate Henry:3 develo
Slide 19: Wrap-up: Stepping off into growth
Wrap-up Stepping off into growth For personal use only Indicative Cooper Energy oil and gas FY 20 – 21: Growing & FY18-19: Building production reinvesting million boe 6 ✓ Sole Gas Project o Sole to come on-line ✓ Gas contracts 5 o Gas production to increase 5 times to >30 PJ pa ✓ Capability and regu
Slide 20: Appendices
For personal use only Appendices
Slide 21: Cooper Energy Snapshot
Cooper Energy Snapshot For personal use only Key statistics* Proved & Probable Reserves 54.1 MMboe Contingent Resources (2C) 34.9 MMboe Market capitalisation $868 million Net (debt)/cash $(52.4) million Issued shares (million) 1,621.6 Cooper Basin • Oil production & exploration Onshore Otway Basin R
Slide 22: Funding
Funding Redetermination released funds and increased available debt For personal use only A$250 million reserve-based project financing facility $ million 30 Jun 19 30 Jun 18 Cash 165.8 236.9 • Senior secured A$ syndicated facility agreement with ANZ, Natixis, ABN AMRO, ING and NAB. Drawn debt 218.2
Slide 23: Offshore Otway Basin prospects
Offshore Otway Basin prospects Prospect rich and favourable economics due to pipeline and plant access Seismic inversion and subsequent studies identified 2 leading candidates for drilling For personal use only Gross unrisked Prospective Resource1 (billion cubic feet, Cooper Energy share 50%) Prospe
Slide 24: Minerva Gas Plant
Minerva Gas Plant Strategically located offering gains in nett cash/GJ, processing, recovery rates & production For personal use only Minerva Gas Plant (10%)* * Equity to increase to 50% on completion of acquisition by Casino Minerva Gas Plant acquisition Henry Joint Venture as announced 1 May 2018
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 & 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 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 APA APA Group Bbl barrels of oil Boe barrel of oil equivalent EBITDA earnings before interest, tax, depreciation and amortisation FEED Front end engineering and design FID Final Investment Decision kbbl thousand