Otto Energy Limited · ASX:OEL
Otto Energy — Investor Presentation (May 2016)
24 slides from Otto Energy's investor presentation, May 2016
Slide 1: Return to Production 2017
ASX : OEL RETURN TO PRODUCTION 2017 INVESTOR PRESENTATION Matthew Allen, Managing Director and CEO May 2016
Slide 2: Overview
Overview Drilling success sees return to production in 2017 Alaska Seismic acquisition 1H 2016 Drilling 2-4 wells 1H 2017 Louisiana/Gulf of Mexico Recent discovery Q2 2016 SMI 70/71 Staged options for up to 2 more wells Tanzania Drilling Q3 2016 Perth Head Office Investment Highlights: Share price
Slide 3: Gulf of Mexico
Gulf of Mexico (45 – 50% Working Interest) Exciting new discovery at SM71 #1 well Potential follow-up opportunities on block Staged options for up to 2 more wells Projected production and cashflow in 2017 3 Investor Update Presentation, May 2016
Slide 4: Staged Farm-in to Byron Energy Ltd
Staged Farm-in to Byron Energy Ltd Low cost/high chance of success opportunities in shallow Gulf of Mexico and onshore Louisiana Bivouac Peak Onshore Prospect Drilling 1H 2017 SM6 Drilled Q1 2016 SM70/71 Discovery Q2 2016 4 Investor Update Presentation, May 2016
Slide 5: South Marsh Island 70/71
South Marsh Island 70/71 SM70/71 Discovery Well SUCCESSFULLY TARGETED D5 sands on salt dome Game-changing oil + gas discovery western flank Proves technology to unlock updip plays Well TD 7,477 feet MD MAP Sample analysis indicates light, sweet crude at three upper intervals, EXISTING D5 SAN
Slide 6: South Marsh Island 70/71 Development Plan
South Marsh Island 70/71 SM70/71 Development Plan Multiple development options Tie back to nearby existing production platform with 8” flowline 1. Surface installation, or 2. Subsea installation option New value + upside PLATFORM Time frame 12-14 months Estimated development cost US$8-10 M (gr
Slide 7: Bivouac Peak
Bivouac Peak Onshore Louisiana Exploration Opportunity Onshore/marshland leases over 2,400 acres (9.7 km2) in the highly productive Gulf of Mexico transitional zone Targeting prolific upper and middle Miocene reservoir Accessible by barge mounted drilling rig Gross drilling costs estimated a
Slide 8: Alaska
Alaska (8-10.8% Working Interest) 2-4 well drilling program 1H 2017 Proven production analogues Available infrastructure within Otto Energy acreage High quality 3D seismic covering entire acreage Oil recovered from multiple wells in Otto Energy acreage Capped cost exposure on drilling 8
Slide 9: Why Alaskan North Slope?
Why Alaskan North Slope? The North Slope of Alaska (NSA) contains the two largest conventional oil fields in North Prolific basin America (Prudhoe Bay and Kuparuk River). Low sovereign risk USA is a stable investment country and rated as low sovereign risk. Low royalty rates of 12.5% to 16.67% and A
Slide 10: Recent Exploration & Development
Recent Exploration & Development Unlocking mega plays in Alaska Repsol/Armstrong East Alpine Oil Field delineation 2 wells 2015 Field Area 80 sqkm Oil sands in excess 90’ thick Depth 6500’ 15-25% porosity 10.8% 8% Repsol/Armstrong 10.8% WI Nanushuk Development 650’ gross, 150’ net oil pay WI 88 Ener
Slide 11: Abundant Source Rocks
Abundant Source Rocks Multiple conventional plays and unconventional targets OTTO ENERGY ACREAGE Source: Alaska Department of Natural Resources, Division of Oil and Gas 11 Investor Update Presentation, May 2016
Slide 12: Hue-HRZ Unconventional Potential
Hue-HRZ Unconventional Potential Otto Energy in optimal location for potential major shale play Recent drilling at Icewine-1 well confirms Hue Shale potential Immature across North88 Slope Energy Icewine-1 HRZ Shale Unconventional Play 180’ net pay, TOC av 3.5% Effective Porosity 11% Hydrocarbon sat
Slide 13: Conventional Play Types
Conventional Play Types 3D seismic reveals reservoir sweet spots Kuparuk C K10 Toe Thrust Anticline Brookian Slope Apron Basin Floor Fan A single well has the potential to test more than one play type 13 Investor Update Presentation, May 2016
Slide 14: Alaska 3D Seismic
Alaska 3D Seismic 2016 Seismic acquisition campaign underway Acquisition already >90% complete Otto fully carried on all 3D expenditure All 3D vintages to be seamlessly merged into one mega project Acreage wide 3D enables the following: 1. Identification of subtle stratigraphic targets (as Rep
Slide 15: Tanzania
Tanzania (50% Working Interest) Kito Prospect analogous to Kenya & Uganda discoveries Drilling planned for Q3 2016 Additional delineated leads may be drilled in success case 15 Investor Update Presentation, May 2016
Slide 16: Tanzania Kito Prospect drilling in Q3 2016
Tanzania (Otto 50% WI) Kito Prospect drilling in Q3 2016 Kito Prospect Large frontier exploration prospect 50 km2 Area of Closure Up to 250m column height Similar to discoveries in Kenya & Uganda Reservoir type Miocene (Neogene) ‘Deep U/C’ Depth (m) Objective Depth 900 – 1,300 metres Western bou
Slide 17: Future Activity
Future Activity Significant multi-well drilling program underway 17 Investor Update Presentation, May 2016
Slide 18: Activity Timeline
Activity Timeline Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2016 2016 2017 2017 2017 2017 2018 SM6 Drilled P&A GULF OF SM Development planning Low-cost production MEXICO 70/71 Drilled SUCCESS Bivouac Technical evaluation Peak Drill Option First Risk & rank prospects round drilling Well planning Drill ALASKA 2-4
Slide 19: Additional Information
Additional Information Otto Energy Ltd 32 Delhi Street West Perth Western Australia 6005 Telephone: +61 8 6467 8800 Facsimile: +61 8 6467 8801 info@ottoenergy.com 19 Investor Update Presentation, May 2016
Slide 20: Robust Capital Structure
Robust Capital Structure 70,000,000 $0.08 60,000,000 $0.07 Volume (shares traded per day) $0.06 50,000,000 OEL Share Price $0.05 40,000,000 $0.04 30,000,000 Cash backing $0.03cps $0.03 20,000,000 $0.02 10,000,000 $0.01 0 $0.00 Capital Structure Shareholders Fully paid ordinary shares 1.181b Molton H
Slide 21: Experienced Board & Management Team
Experienced Board & Management Team Board of Directors Senior Management John Jetter – Non-Executive Chairman. Matthew Allen – Managing Director & CEO. LLB, BEc INSEAD BBus, FCA, FFin, GAICD Former MD/CEO J.P. Morgan Germany. Global exposure to the upstream oil and gas industry with Non-Executive Di
Slide 22: Disclaimer
Disclaimer 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 Limited (the “Company”). This presentation contains forward looking statements that ar
Slide 23: Appendix 1: Byron Energy Staged Farm-in Commercial Terms
APPENDIX 1 Byron Energy Staged Farm-in Commercial Terms Otto Well Net Gross Well Working Licence Drilling Contribution Revenue Cost (1) (2) Interest Interest Otto Energy has executed the option to earn equity in SMI-70/71 leases South Marsh Island – 70/71 Q1 2016 US$4.5m US$3.0m 50% 40.625% (SMI-70/
Slide 24: Appendix 2: Reserves/Prospective Resources Potential Post Earn-in
APPENDIX 2 Reserves/Prospective Resources Potential Post Earn-in Net Possible Proved Probable Prospective Revenue Reserves Licence Reserves Reserves Resource Interest (3P) (1P) (2P) South Marsh Island – 40.625% Oil (Mbbl) 249 343 520 2,277 70/71 (SMI-70/71) (shallow water GoM) Gas (Mscf) 135 186 323