Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — Goldman Sachs Emerging Energy Companies Conference 2018
31 slides from Amplitude Energy's conference presentation, Nov 28, 2018
Slide 1: Presentation to Goldman Sachs Emerging Energy Companies Conference
For personal use only Sole-3 flowback, 5 July 2018 Sole-3 flow back at sunset, 4 July 2018 Presentation to Goldman Sachs Emerging Energy Companies Conference 28 November 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”). Summary information and purpose: This Presentation contains summary information about Cooper Energy and its activities as at the date of this Pr
Slide 3: Introducing Cooper Energy
Introducing Cooper Energy For personal use only …. a strategy and asset portfolio purpose-built to create value from the sale of gas to south-east Australia. • Strong cash-generation gas • Marketing gas available • Completing transformational • Preparing for gas exploration production and supply for
Slide 4: Cooper Energy gas business
Cooper Energy gas business Multi-basin gas portfolio built on 2 hubs well located for supply to south-east Australia For personal use only 2P Reserves contracted 2P Reserves uncontracted 2C Contingent Resources uncontracted Otway Basin Hub: gas production, Gippsland Hub: gas development & developmen
Slide 5: Production outlook
Production outlook Gas production to increase more than 5 times from existing 2P Reserves and projects For personal use only Indicative1 production outlook MMboe Sole commences Henry development well 6 5 Excludes any Sole commissioning gas. 4 Commissioning planned to 29 PJ 29 PJ 30 PJ 32 PJ commence
Slide 6: Levers for the next wave of growth
5 levers for the next wave of growth Value creation opportunities within existing portfolio being pursued. For personal use only Contingent Gas contracting Infrastructure Undeveloped gas Exploration Resources • Contract 2019 – 2022 • Minerva Gas Plant • Develop 285 PJ • 125 PJ • Otway & Gippsland •
Slide 7: Gas reserves: contracted and uncontracted
Gas reserves: contracted and uncontracted 120 PJ of uncontracted 2P Reserves still available to market For personal use only 2P Gas supply profile Uncontracted contracted & uncontracted PJ pa Contracted 12 11 10 11 10 9 8 11 21 11 Sole Commissioning 20 20 20 20 20 20 20 16 13 6 8 6 3 FY19 FY20 FY21
Slide 8: South-east Australia gas market: ACCC view
South-east Australia gas market: ACCC view LNG netback influencing gas prices ACCC LNG netback price outlook For personal use only Average monthly commodity prices offered for 2019 supply against ACCC LNG netback price series contemporaneous expectations of 2019 LNG netback prices (Southern States)
Slide 9: Offshore Otway Basin operations
Offshore Otway Basin operations Gas production, new gas contracts commenced and agreed for new year For personal use only Production FY18 FY17 Sales gas PJ 7.0 4.0 Condensate kbbl 6.2 3.6 2P Reserves1 FY18 FY17 Sales gas PJ 61 57 Condensate kbbl 0.03 0.05 Total MMboe 10.0 9.9 Key Assets • Casino Hen
Slide 10: Minerva Gas Plant
Minerva Gas Plant Agreement to acquire plant that offers cost, production and strategic benefits For personal use only Minerva Gas Plant • Casino Henry JV to acquire on cessation of production from Minerva gas field • Capacity 150 TJ/day, with liquids handling capability • Connected to SEA Gas pipel
Slide 11: Offshore Otway Basin exploration
Offshore Otway Basin exploration Prospect rich and favourable economics due to pipeline and plant access Seismic inversion and subsequent studies identified 2 leading candidates for drilling1 For personal use only Gross unrisked Prospective Resource2 (billion cubic feet, Cooper Energy share 50%) Pro
Slide 12: Sole Gas Project
Sole Gas Project 81% complete end-October, within schedule and budget For personal use only Drilling & well completion • Workstream completed, Sole-3 & Sole-4 awaiting connection March Qtr 19 • Reservoir performance in line with expectations • Lab analysis confirmed H2S well within plant design, in
Slide 13: Sole gas field, Gippsland Basin
Sole gas field, Gippsland Basin South-east Australia’s first new offshore gas production in 3 years at a time of market need For personal use only Sole gas supply profile Sole uncontracted Sole contracted contracted & uncontracted PJ pa 18 4 4 4 4 4 4 4 7 11 20 20 20 20 20 20 20 16 Sole 13 Commissio
Slide 14: Otway Basin, Penola Trough onshore
Otway Basin, Penola Trough onshore Haselgrove drilling results confirm prospectivity for deep conventional gas Drill Dombey early in 2019 For personal use only South Australia • Haselgrove-3 discovery in adjoining PPL 62 has confirmed conventional gas prospectivity of the Sawpit Sandstone at depths
Slide 15: Cooper Basin
Cooper Basin High margin cash generating asset, low production costs and outstanding reserves replacement For personal use only Key figures FY18 FY17 Production Crude oil kbbl 0.27 0.25 Average oil price A$/bbl 85.55 63.54 Direct operating cost A$/bbl 33.08 29.77 2P Reserves1 MMbbl oil Developed 1.4
Slide 16: Drilling and development plans to FY21
Drilling and development plans to FY21 Sole completion and start up, gas contracting, exploration and development activity For personal use only FY19 Otway • Exploration: 2 wells from April 2019 • Engaging with Ocean Monarch • Cooper Energy share: ~ $38m Otway Hub • Onshore Otway: 1 well • Umbilical
Slide 17: Outlook schedule
Outlook schedule Existing portfolio and program provides numerous value catalysts in near to medium term For personal use only Nov 2018 – June 2019 • Pipelay completion, pressure testing Complete Sole Gas Project • Umbilical lay and connection • Commissioning • Contract rig and finalise program Offs
Slide 18: Wrap up
Wrap up For personal use only 1. Strong cash flow from existing gas and oil business 2. Uncontracted gas, in the right locations, low cost, among most competitive gas suppliers to south-east Australia 3. Sole is on-track, 81% complete and under budget 4. Funding and balance sheet approaching phased
Slide 19: Appendices
For personal use only Appendices
Slide 20: Cooper Energy snapshot
Cooper Energy snapshot Portfolio built around winning position on cost curve For personal use only Key statistics* Proved & Probable Reserves 52.4 MMboe Contingent Resources (2C) 34.9 MMboe Production FY19 guidance 1.4 MMboe Market capitalisation $672 million Cooper Basin • Oil production Net cash/(
Slide 21: Balance sheet and funding
Balance sheet and funding Production, sales revenue up; Sole achieves critical milestone For personal use only $ million unless specified otherwise Prior qtr Element/term Features Sept qtr 18 Jun18 A$250 million • Senior secured Cash reserve • ~ up to $220 million available based on P90 capex, of Ca
Slide 22: 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 Manta uncontracted contracted & uncontracted Sole uncontracted PJ pa Sole contracted Manta Otway uncontracted (subject to ap
Slide 23: 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 24: Sole Gas Project, Gippsland Basin
Sole Gas Project, Gippsland Basin 81% complete at 31 October ORBOST GAS PROCESSING FACILITY For personal use only Works By - APA Group Plant Upgrade & Operations ✓ Engineering progressing ✓ Procurement package being delivered ✓ Site works construction progressing S7-Skandi Acergy Umbilical Lay Vesse
Slide 25: Schematic of Sole-2, Sole-3 and Sole-4 wells
Schematic of Sole-2, 3 and 4 For personal use only Sole-4 development well 2018 Sole-2 appraisal well 2002 745 metres TVDSS Top reservoir depth: 753.1 metres TVDSS, 1084.5 metres MDRT Top reservoir depth: 770 metres MDRT Net pay thickness 115.5 metres measured along welllbore Net pay thickness: 69.3
Slide 26: Gippsland: Manta gas and liquids resource
Gippsland: Manta gas and liquids resource Gas and liquids 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) Bes
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 15.2 0 26 0 26.4 0 36 0
Slide 28: 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 29: Senior Management Team
Senior Management Team For personal use only Company Secretary & General Manager, General Manager, General Manager, Legal Counsel Operations Iain Development Commercial & Business Alison Evans MacDougall Duncan Clegg Development Eddy Glavas General Manager, General Manager, Managing Director Chief F
Slide 30: 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 31: 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 — Goldman Sachs Emerging Energy Companies Conference 2018 on 6ix