Otto Energy Limited · ASX:OEL
Otto Energy — Investor Presentation (January 2012)
35 slides from Otto Energy's investor presentation, Jan 30, 2012
Slide 1: Investor Presentation Singapore January 2012
For personal use only ASX : OEL Investor Presentation Singapore January 2012 Gregor McNab, Chief Executive Officer
Slide 2: Disclaimer
Disclaimer For personal use only This presentation does not constitute an offer to sell securities and is not a solicitation of an offer to buy securities. It is not to be distributed to third parties without the consent of Otto Energy Ltd (the “Company”). This presentation contains forward-looking
Slide 3: Objectives of Today's Session
Objectives of Today’s Session For personal use only • Otto Energy Company Overview • Outline Otto Strategy • Introduce Otto Capability and Key Board/Management • Portfolio Overview • Outline 2012/13 Key Events and Milestones 3
Slide 4: Otto Energy Ltd Company Overview
For personal use only OTTO ENERGY LTD COMPANY OVERVIEW 4
Slide 5: Otto Fundamentals / Capital Structure
Otto Fundamentals / Capital Structure For personal use only Capital Structure Fully paid ordinary shares 1.13b Unlisted options1 37.75m Performance Rights 27.00m Market capitalisation2 100m Cash (at December 2011) US$38.7m Debt (at December 2011) Nil Shareholders Molton Holdings 21.3% Santo Holdings
Slide 6: Strong Share Price Performance against Peers
Strong Share Price Performance against Peers Otto has maintained shareholder value within sector in a highly volatile external For personal use only environment as it prepares for high potential impact exploration drilling Relative stock price performance over past 24 months Total shareholder return
Slide 7: Strategy Outline
Strategy Outline For personal use only Element Strategy Geographic Focus SE Asia – competitive advantage in the Philippines East Africa Rift Valley Geological Proven hydrocarbon basins and early in the exploration phase Potential Multiple options, running room and material equity Commercial Good fis
Slide 8: Experienced Board and Management Team
Experienced Board and Management Team For personal use only NON-EXECUTIVE CHAIRMAN NON-EXECUTIVE NON-EXECUTIVE NON-EXECUTIVE DIRECTOR RICK CRABB DIRECTOR DIRECTOR DIRECTOR RUFINO BOMASANG BJuris (Hons), LLB, MBA IAN BOSERIO JOHN JETTER IAN MACLIVER BSc (Min.Eng), MBE • Chairman of Paladin BSc Hons (
Slide 9: Otto Overview
Otto Overview • Listed 2004, Perth head office For personal use only • ~1.13 billion shares on issue, 37.75 million options and 27 million performance rights • Market capitalisation of ~A$100 million at A$0.088 • Cash in bank at 31 Dec 2011 US$38.7 million • High quality production and exploration a
Slide 10: Financial Strength & Managing Risk
Financial Strength & Managing Risk For personal use only Strong financial position • US$38 million cash on hand as at 31 December 2011 • ~38% of market cap represented by cash position • Sustainable revenue from Galoc 33% working interest • ~200,000 bbls production per quarter • Progressing plans fo
Slide 11: Philippines – Balanced Portfolio
Philippines – Balanced Portfolio For personal use only 11
Slide 12: Asset Portfolio
Asset Portfolio For personal use only APPRAISAL/ NEW BUSINESS EXPLORATION PRODUCTION DEVELOPMENT PECR4: Palawan Exploration: Galoc Oil Field Phase II: Galoc Oil Field: Actively screening SC55: Planned 1-3 new wells in Production to date 8.5 opportunities Cinco-1 drilling 2012 2013 for 3-9
Slide 13: Portfolio Overview: Production Asset
For personal use only Portfolio Overview Production Asset 13
Slide 14: SC14C: Overview
SC14C: Overview Key Facts: For personal use only • Otto (through GPC) is Operator with 33% working interest • 8.46 MMbbl gross produced to date • Substantial remaining reserves to be produced through Phase I and potential for Phase II • Cashflow funds further exploration activities • Well matched as
Slide 15: SC14C: Recent Acquisition Overview
SC14C: Recent Acquisition Overview For personal use only • Acquisition of remaining shareholding interest in Galoc Diagram of Holdings Production Company WLL (GPC) from Vitol Group • Increasing GPC shareholding from 31% to 100% PRE ACQUISITION POST ACQUISITION • GPC has become a wholly owned subsidi
Slide 16: SC14C: Reserves upgrade and improved uptime
SC14C: Reserves upgrade and improved uptime Production Q4 2011 Update Net OEL Share For personal use only Current rate ~6,400 bopd Production 104,931 bbls Production to date 8.46MMbbls Liftings 231,745 bbls Revenue US$19.6million Revenue, Costs and Netback US$ Last Cargo (Nov 2011) 115.20/bbl Opex 2
Slide 17: SC14C: Improved Mooring and Riser System
SC14C: Improved Mooring and Riser System For personal use only Project Outline: • New system to substantially increase operating uptime to greater than 95% • Field outage planned in Q4 2011, coinciding with the typical peak in the monsoon season • Production to recommence late Q1 2012 • Crucial infr
Slide 18: Portfolio Overview: Development Opportunities
For personal use only Portfolio Overview Development Opportunities 18
Slide 19: SC14C: Phase II Development
SC14C: Phase II Development For personal use only Phase II Galoc North Prospect: • Phase II evaluation commenced with acquisition of • Areal Extent ~12km2 new 3D seismic and FEED • Potential HC Column ~240m • Potentially involves between 1 and 3 new wells • 5km tie-back to existing facilities Unlock
Slide 20: SC14C: Phase II Development Timeframe
SC14C: Phase II Development Timeframe For personal use only Otto Work 2011 2012 2013 2014 2015 Plan Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 PALAWAN EXPLORATION & DEVELOPMENT SC14C Galoc Turret Conversion Production 3D seismic Front End Engineering & Design Phase 2 Phase 2 Execution First Oil Sanction 20
Slide 21: Portfolio Overview: Exploration
For personal use only Portfolio Overview Exploration 21
Slide 22: Philippines – Strong Drivers to Maintain as Focus Area
Philippines – Strong Drivers to Maintain as Focus Area Pragmatic and helpful government working For personal use only • to attract oil & gas investment. • Established and competitive fiscal regime delivered through Service Contract structure • Continuous opportunity flow with new acreage release und
Slide 23: East Africa – Growth to Complement Existing Portfolio
East Africa – Growth to Complement Existing Portfolio For personal use only East Africa represents a growth opportunity that complements our core business in the Philippines • Recent large oil and gas discoveries in the region particularly Mozambique, Tanzania and Uganda • Play type complements Otto
Slide 24: SC55: Overview
SC55: Overview For personal use only SC 51 North 40% WI 1660 km2 Galoc Malampaya Complex 2.7 Tcf Duhat Lampos Complex SC 14C 33% WI 163 km2 Uno SC 69 Cinco 79% WI Hawkeye 5280 km2 Otto Energy Acreage SC 55 3D Seismic Coverage 93.18% WI Prospects and Leads 9880 km2 Kebabagan >4.5 Tcf Kikeh 400-700 mb
Slide 25: SC55: Carbonate Gas Prospect & Lead Portfolio
SC55: Carbonate Gas Prospect & Lead Portfolio • An impressive portfolio of gas and condensate targets, aggregating into an emerging major For personal use only regional offshore trend, parallel to the island of Palawan, Philippines • Total unrisked potential Mean Recoverable Resources (Nido level ca
Slide 26: SC55: Cinco - Leading Drilling Candidate
SC55: Cinco - Leading Drilling Candidate CINCO - A reefal /platform carbonate complex For personal use only Malampaya Top Nido Depth Map Top Nido mss CI: 200m 3200 3400 3600 3800 4000 CINCO 4200 4400 4600 500 m 4800 Cinco Prospect (OEL WI post farm-down 33.18%) MALAMPAYA - Analogue Area of Closure 5
Slide 27: SC55: Hawkeye
SC55: Hawkeye For personal use only Hawkeye Prospect (OEL WI post farm-down 33.18%) Location Offshore, SW Palawan Water Depth 1,690 Metres Objective Depth 2,800 Metres 50 km2 Hawkeye Prospect Area of Closure Up to 500m column height Areal Closure: 50km2 STOIIP 87-484-1539 (mean of 680 MMbbls) (Succe
Slide 28: SC55: BHP Farm-in
SC55: BHP Farm-in BHP Billiton farm-in announced May 2011: For personal use only • BHP Billiton to acquire 60% net participating interest, including operatorship of SC55 • Otto to retain 33.18% participating interest after BHP Billiton farm-in • Otto to receive: • Reimbursement of past costs • A car
Slide 29: Philippines Visayan Exploration
Philippines Visayan Exploration For personal use only Interpretation/ Licence Activity Prospect Maturation New 100km Follow-up of Duhat-1/1A drilling SC69 SC51 Northern Block SC51 2D Seismic in Q2 2011 79% WI 5280km2 40% WI 1660km2 Completed 3D seismic New 229km² SC69 acquisition in June. Now 3D Sei
Slide 30: SC51: Duhat-1 follow-up
SC51: Duhat-1 follow-up For personal use only Duhat-1 is the first valid structural test conducted on the island of Leyte, an area of well-known and documented oil seeps. Duhat-1 Prospect: Drilling the San Isidro Anticline OEL WI 40% post farm-down Duhat-1 14.5 km2 370m closure Location On-shore, NW
Slide 31: SC69: Maturing to drillable status
SC69: Maturing to drillable status OEL WI 79% Lampos Lampos South For personal use only Duhat-1 Location Off-shore Visayan Basin Water Depth 740 Metres 714 Metres Objective Depth 1,250 Metres 1,350 Metres Closure Area 14.2 km2 9.8 km2 SC69 Closure Height 300m 330m STOIIP1 15-121-468 MMbbls 7-57-245
Slide 32: Otto Energy Ltd Future Milestones
For personal use only Otto Energy Ltd Future Milestones 32
Slide 33: New Business
New Business PHILIPPINE ENERGY CONTRACTING ROUND 4 (2011) EAST AFRICA ONSHORE RIFT VALLEY For personal use only 33
Slide 34: Asset Portfolio
Asset Portfolio For personal use only APPRAISAL/ NEW BUSINESS EXPLORATION PRODUCTION DEVELOPMENT PECR4: Palawan Exploration: Galoc Oil Field Phase II: Galoc Oil Field: Actively screening SC55: Planned 1-3 new wells in Production to date opportunities Cinco-1 drilling 2012 2013 for 3-9 MMbb
Slide 35: Thank You
For personal use only THANK YOU Otto Energy Ltd 32 Delhi Street West Perth Western Australia 6005 Telephone: +61 8 6467 8800 Facsimile: +61 8 6467 8801 info@ottoenergy.com 35