Cue Energy Resources Limited · ASX:CUE
Cue Energy Resources — Investor Presentation (October 2013)
30 slides from Cue Energy Resources's investor presentation, Oct 8, 2013
Slide 1: Cue Investor Presentation October 2013
A.B.N. 45 066 383 971 For personal use only 8 October 2013 PAGES (including this page):30 CUE ENERGY OVERVIEW Cue is an Australian based oil & Company Announcements Office gas company with activities in 10th Floor Australia, New Zealand, Indonesia 20 Bond Street and PNG. Sydney NSW 2000 THE COMPANY
Slide 2: New Focus and an Exciting Future
For personal use only CUE ENERGY RESOURCES LIMITED (ASX: CUE) New Focus and an Exciting Future Investor Roadshow, Oct 2013
Slide 3: Disclaimer & Important Notice
For personal use only DISCLAIMER & IMPORTANT NOTICE Various statements in this document constitute statements relating to intentions, future acts and events. Such statements are generally classified as forward looking statements and involve known risks, expectations, uncertainties and other importan
Slide 4: Board and Management
Board and Management Geoffrey King For personal use only David Biggs Non-Executive Chairman Chief Executive Officer • 35+ years experience in oil & gas • 30+ years experience in oil & gas • Appointed Chairman Nov 2012 • Joined CUE April 2013 Tim Dibb Andrew Knox Non-Executive Director Chief Financia
Slide 5: At a Glance
At a Glance COMPANY SNAPSHOT SHARE PRICE PERFORMANCE For personal use only Market Capitalisation @ A$0.135 (1) A$94.2million Volume (m) 10 0.40 Share Price ($A) Ordinary Shares 698,119,720 0.35 9 8 12 Month Trading Range(2) 10.5¢ – 15.5¢ 0.30 7 12 Month Average Daily Volume(2) ~400,000 0.25 6 0.20 5
Slide 6: Strong Existing Production and Cashflow
For personal use only Strong Existing Production and Cashflow FY13 Operating Cash Flow Cue Net Production (2011-2016f) 70 $A Million 1.2 Million boe Implement Growth Strategy 60 1 50 0.8 40 0.6 30 0.4 20 0.2 10 0 0 Sales Production Exploration Other Net 2011 2012 2013f 2014f 2015f 2016f Receipts Cos
Slide 7: FY13 Financials
FY13 Financials FY13 Revenue of $49.8m, up 21% For personal use only Net Profit after Tax up 12.5% to $6.4m $58.8M cash on hand, up 74% Zero debt 6
Slide 8: FY13 Production
FY13 Production Total production up 22% to 930,000 boe For personal use only Maari Oil: Reduced production being Sampang Gas: Increased production addressed by growth projects due to Wortel startup Thousand bbl Billion Cubic Feet 300 FY12 5 250 FY13 FY13 4 200 FY12 3 150 2 100 50 1 0 0 Sampang Oil:
Slide 9: Clear Growth Strategy
Clear Growth Strategy Current Position Future position For personal use only • High activity level for 2014 but • 5mmboe reserve adds by end only one 2015 well planned 2018 (>140% reserve replacement) • Exploration portfolio largely Growth drilled out by 2014/2015 Strategy • 3-5 wells drilled per ye
Slide 10: Growth Strategy
For personal use only Growth Strategy Participate in areas of high prospectivity • Focus on proven petroleum basins • Develop exposure to higher risk strategic test areas Take meaningful equity positions • Invest in material positions for Cue • Target 20-40% equity onshore, 15-20% offshore Lower cos
Slide 11: Growth Strategy Geographic Focus
Growth Strategy Geographic Focus Maintain core regional focus and develop interests in strategic For personal use only test areas with longer term, higher risk/reward opportunities Growth Focus Areas Strategic Test Areas • Higher subsurface risk • Areas with potential for large volumes • Low entry c
Slide 12: Near Term Activity
Near Term Activity • Eight well minimum and 11 well potential over the For personal use only next 12 months in Indonesia and NZ • Fully funded 2013/2014 drilling program • Whio -1 carried by OMV 2013 2014 Q3 Q4 Q1 Q2 Q3 Q4 New Zealand Maari growth projects ENSCO 107 (Jack‐Up) New Zealand Manaia‐2 Ka
Slide 13: Regionally Diversified Assets
For personal use only Regionally Diversified Assets INDONESIA Kutei Basin PAPUA NEW GUINEA INDONESIA Offshore Madura Island NEW ZEALAND AUSTRALIA Taranaki Basin Carnarvon Basin PRODUCTION DEVELOPMENT APPRAISAL EXPLORATION 12
Slide 14: New Zealand: Maari Production and Growth
New Zealand: Maari Production and Growth • Maari/Manaia gross production of ~8000 bbl/d H1 2013 For personal use only • Growth projects program expected to add 15mmbbl (gross) incremental reserves and increased production from 2014/2015 • Kan Tan IV in field and Ensco 107 due to arrive Q1 2014 for f
Slide 15: Maari Facilities Upgrade
Maari Facilities Upgrade • FPSO Raroa to be disconnected and towed to Port Nelson, NZ for swivel For personal use only replacement and process equipment upgrade • Planned swivel replacement has been brought forward from 2014 • Opportunity will also be taken to replace field mooring lines and upgrade
Slide 16: New Zealand: Taranaki Exploration offshore
New Zealand: Taranaki Exploration offshore Whio Whio-1 exploration well to be drilled For personal use only (PEP 51313) early 2014 by the Kan Tan IV Cue 14% OMV(Op) 30% Potential to deliver material new Todd 35% discovery in Eocene and Paleocene Horizon 21% plays close to Maari Cue fully carried by
Slide 17: New Zealand: Taranaki Exploration Onshore
New Zealand: Taranaki Exploration Onshore PEP 51149 438km2 onshore Taranaki Basin For personal use only Cue 20% Todd (Op) 80% Principal targets are Eocene (gas) and Miocene (oil) formations updip of Te Kiri -1 hydrocarbon shows Permit reached end of year 5 in Sept 2013 – renewal submitted. 50% relin
Slide 18: Indonesia: Sampang Production and Appraisal
Indonesia: Sampang Production and Appraisal Oyong & Wortel first production 2012, Oyong For personal use only Wortel 2007 Cue 15% Santos (Op) 45% Combined gross production of SPC 40% ~85MMcfd and ~2200bbl/d Oyong FSO to be replaced in October 2013, requiring a 3 week shutdown Jeruk Field discovered
Slide 19: Indonesia: Mahakam Hilir Appraisal and Exploration
Indonesia:Mahakam Hilir Appraisal and Exploration Mahakam Naga Utara-1 (2012) showed good For personal use only Hilir PSC indications but was unable to be Cue 40% conclusively evaluated SPC (Op) 60% Naga Utara-2 drilling underway. Spud 5th October 2013 NU-2 to appraise existing reservoirs and explor
Slide 20: PNG: Production, Appraisal and Exploration
PNG: Production, Appraisal and Exploration PDL 3 Contains part of SE Gobe Unit (Cue For personal use only Cue 5.6% 3.286%) Santos 15.9% (Op) Oil Search 36.4% Mature field that has produced over 42 SHP 40.1% million bbl (gross) since 1998 PRG 2% Gas production in to the PNG LNG plant expected to comm
Slide 21: Australia: Carnarvon Exploration
Australia: Carnarvon Exploration WA-409-P Currently in year 6, renewal H1 2014 For personal use only Cue 30% Apache 40% Major lead Brigadier Updip late Jurassic (Op) play with 40-50mmbbl prospect size Exoil 30% Cue carried through all permit activities Seismic reprocessing underway, possible drillin
Slide 22: Investment Case
For personal use only Investment Case Strong Fundamentals • Existing oil and gas production and stable positive cashflow • Strong balance sheet – no debt • Clear and focussed strategy Significant Near Term Upside • High impact Indonesia and New Zealand Exploration and development activity • Clear pa
Slide 23: For personal use only
For personal use only Level 21, 114 William Street, Melbourne VICTORIA – AUSTRALIA 3000 P. (61) 3 9670 8668 F. (61) 3 9670 8661 E. mail@cuenrg.com.au W. www.cuenrg.com.au
Slide 24: Appendices
For personal use only Appendices 23
Slide 25: FY13 Profit
FY13 Profit 2013 2012 For personal use only $000’s $000’s Production revenue 49,798 41,222 Production costs (19,131) (13,778) Gross profit from production 30,667 27,444 Other revenue 160 274 Amortisation expense (17,520) (10,500) Interest expense (3) (84) Net realised gain on oil hedge derivatives -
Slide 26: Sound Financial Position
Sound Financial Position 2013 2012 For personal use only $000’s $000’s Current Assets Cash and cash equivalents 58,828 33,733 Trade and other receivables 5,096 11,746 Inventories 1,157 1,500 Total Current Assets 65,081 46,979 Non-Current Assets Property, plant and equipment 63 84 Deferred tax assets
Slide 27: Summary Consolidated Cash Flow
Summary Consolidated Cash Flow 2013 2012 For personal use only $000’s $000’s Net Cash Provided by Operating activities 32,729 11,729 Net Cash Used in Investing Activities (10,855) (27,994) Net Cash Used in Financing Activities 0 (4,438) Net increase/(Decrease) in Cash and Cash 21,874 (20,703) Equiva
Slide 28: Profit by Area
Profit by Area 2013 Total For personal use only Australia NZ Indonesia PNG $’000 $’000 $’000 $’000 $’000 Production Revenue - 19,590 27,926 2,282 49,798 Production Expenses - (8,450) (9,201) (1,480) (19,131) Gross Profit - 11,140 18,725 802 30,667 2012 Total Australia NZ Indonesia PNG $’000 $’000 $’
Slide 29: Reserves and resources
Reserves and resources PROVED (1P) PROVED & PROBABLE (2P) FIELD (LICENCE) OIL OIL CUE LIQUIDS GAS EQUIVALENT(4) LIQUIDS GAS EQUIVALENT(4) For personal use only INTEREST MMBBL BSCF MMBOE MMBBL BSCF MMBOE Reserves Oyong(1)(2) (Sampang 15% 0.039 2.259 0.415 0.082 4.523 0.836 PSC) Wortel(1) (Sampang 15%
Slide 30: Joint Venture Interests
Joint Venture Interests PERMIT OPERATOR CUE INTEREST (%) For personal use only Petroleum Properties New Zealand PMP 38160 OMV New Zealand Limited 5.00 (ii) PEP 51313 OMV New Zealand Limited 14.00 PEP 51149 Todd Exploration Limited 20.00 PEP 54865 Todd Exploration Limited 20.00 Indonesia Sampang PSC
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