Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — Investor Presentation (December 2015)
32 slides from Amplitude Energy's investor presentation, Dec 14, 2015
Slide 1: Investor update
For personal use only Investor update Orbost Gas Plant, hub for the Gippsland Basin Gas Projects Bungaloo-1 Otway Basin Orbost gas plant December 2015
Slide 2: Important Notice – Disclaimer and other information
Important Notice – Disclaimer and other information The information in this presentation: For personal use only • Is not an offer or recommendation to purchase or subscribe for shares in Cooper Energy Limited or to retain or sell any shares that are currently held. • Does not take into account the i
Slide 3: Position update
Position update Transformational growth from east coast gas, advancing according to plan For personal use only 1 Oil production is in line with guidance; low costs YTD1 of ~A$33/bbl vs current price of ~A$52/bbl. Cooper Energy’s Gippsland gas projects are among the most competitive sources of supply
Slide 4: Cooper Energy: key features
Cooper Energy: key features Established cash flow and production, projects to deliver transformational growth, zero debt For personal use only 1 Oil production 2 Transformational gas 3 Balance sheet & capital 4 Proven board & projects management plan management ~500,000 bbls pa Gippsland Basin Gas H
Slide 5: Reserves and Resources
Reserves and Resources1 2P Reserves and 2C Contingent Resources 2013 vs 2015 mmboe, Australia and Indonesia For personal use only 2013 2015 2.6 1.8 0.3 1.4 41 0.35 1.7 Cooper Basin 2P Reserves Indonesia 2P Reserves Cooper Basin 2C Contingent Resources Indonesia 2C Contingent Resources 1 Reserves and
Slide 6: Oil production
Oil production Maintaining ~ 500,000 barrels per annum, with low production cost that generates cash For personal use only Production costs Cooper Energy oil production Direct cost A$ per barrel Million barrels 0.7 0.6 0.59 0.5 0.55- 30 Netback 0.52 to 0.47 0.49 0.48 0.4 0.45 0.41 7 Royalties 0.3 11
Slide 7: Cooper Energy production outlook
Cooper Energy production outlook1 Gas projects deliver transformational growth to 2.5 million boe2 then to ~ 5 million boe2 pa For personal use only Indicative net production (mmboe) 7 6 5 Manta - Liquids 4 Manta - Gas 3 Sole - gas 2 Existing3 Cooper Basin & Indonesia - oil 1 1 Indicative only from
Slide 8: Eastern Australian gas demand vs contracted supply
Eastern Australian gas demand vs contracted supply COE identified opportunities in the growing shortfall between forecast demand and existing contracts For personal use only Forecast Eastern Australian gas demand (PJ) Eastern Australia domestic demand and contracted supply (PJ) 2500 800 Forecast eas
Slide 9: Indicative gas supply cost curve
Indicative gas supply cost curve Gippsland gas is among most competitive new supply sources for eastern Australia For personal use only Economic ex-field gas price $/GJ Other key variables Shale • Liquids content • Inerts content e.g. CO2, N2 • Size/economy of scale CSG • Community & approvals Tight
Slide 10: South east Australian gas market
South east Australian gas market Gas buyer activity increasing as supply options are contracting For personal use only Demand-side Supply-side • Existing producing fields in decline • Eastern Australian demand not • Queensland and Cooper Basin covered by existing contracts commitments to Gladstone L
Slide 11: Gippsland Gas Projects and Orbost Gas Hub
Gippsland Gas Projects and Orbost Gas Hub Marketable gas volumes, existing plant and pipeline access For personal use only to Melbourne Eastern Gas Pipeline to Sydney Orbost Gas Hub COE 50%, STO 50% & Operator Sole Gas field COE 50%, STO 50% & Operator Patricia Baleen (depleted) (STO 100%) ~241* PJ
Slide 12: Gippsland Basin Gas Hub
Gippsland Basin Gas Hub Staged development utilising existing Orbost Gas Plant For personal use only • Commercial alignment unlocks significant value increments through synergy Investor Update December 2015 12
Slide 13: Gippsland Basin Gas Project update overview
Gippsland Basin Gas Project update overview FEED on schedule and on budget, data room opened, gas marketing on track For personal use only 1 Sole FEED advancing on schedule and within budget for FID in September quarter 2016 2 Sole Contingent Resources (2C) upgraded from 211 PJ gross to 241 PJ gross
Slide 14: Sole and Manta gas production profile
Sole and Manta gas production profile1: 100% Joint Venture volume Solid production profile peaking at 50 PJ pa and opportunity to extend production profile For personal use only Indicative gross • Gippsland gas projects can produce more than 360 PJ (gross) PJ 60 from current projects 50 • Peak produ
Slide 15: Potential reserve additions from Gippsland Basin Gas Projects
Potential reserve additions from Gippsland Basin Gas Projects 2P Reserves to COE anticipated from affirmative FID of projects at current equity levels For personal use only MMboe 13.5 20.8 3.1 Existing Sole Manta Investor Update December 2015 15
Slide 16: Gippsland gas projects indicative timeline
Gippsland gas projects indicative1 timeline Key commercial and project milestones for value accretion For personal use only Calendar Year 2015 2016 2017 2018 2019 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Sole Gas Project Select FID Define First Ga
Slide 17: Near term events
Near term events Near term features catalysts and milestones in contracts, costings, funding and project commitment For personal use only 2015 2016 Dec Qtr Mar Qtr Jun Qtr Sept Qtr Gippsland data room opens FEED ongoing Capital management: Indonesia assessment initiated Data room outcome Pre-FID sal
Slide 18: Funding & capital management
Funding & capital management Fully funded for current year, cash & investments exceeding capex, plus finance facilities For personal use only $ million Fully funded for FY16 Operating cash • Existing financial resources sufficient for FY16 capital expenditure plans, some of which flow is discretiona
Slide 19: Near term plan: ~9 month look-ahead
Near term plan: ~9 month look-ahead How will Cooper Energy look in 6 – 9 months with success from current work program For personal use only ~ 95 PJ Contracted gas • Firm gas sales agreements for 95 PJ that are expected to generate revenue between $660 million to $760 million to COE at gas prices of
Slide 20: Appendices
For personal use only Appendices
Slide 21: Company snapshot
Company snapshot ASX listed, strong balance sheet and stable share register For personal use only Key figures Cooper Energy is an independent Australian exploration and Shares on issue 333.7 mill production company Shareholders 5,035 • Cash generating from production of approx. 500,000 barrels of oi
Slide 22: Business model and focus
Business model and focus Focus on returns & care through disciplined application of resources and core skills For personal use only Total Shareholder Return and Health Safety Environment Community Strategy • High margin oil • Fundamentals focus: market, technical, cost & commercial • Gas portfolio •
Slide 23: Cooper Energy interests
Cooper Energy interests Portfolio prioritised on Cooper Basin oil production and gas to Eastern Australia…. For personal use only • Cooper Basin Oil – oil production – development & appraisal – exploration • Otway Gas – exploration • Gippsland Gas – development – appraisal & exploration – major shar
Slide 24: Cooper Basin Oil production
Cooper Basin Oil production Cash generator with low production cost. Working in FY16 for production growth in FY17 For personal use only • Direct operating costs of A$32/bbl vs sale price of ~A$64/bbl (Sept Qtr average) • FY15 reserves replacement 120% • Field performance & appraisal continues to ad
Slide 25: Sole Gas Project
Sole Gas Project Market interest, contracting on track for FID For personal use only Contingent Resource 1 estimate in Kingfish Formation, Sole field, Gippsland Basin PJ • COE production share ~ 12.5 PJ pa 1C 2C 3C • Initial gas contract with O-I Australia Gross (100% field) 203 241 285 • Discussion
Slide 26: Onshore Facilities – Orbost Gas Plant
Onshore Facilities – Orbost Gas Plant For personal use only • Existing plant with capacity of approximately 90 TJ/d connected to the Eastern Gas Pipeline (EGP) allowing access to the interconnected East Australia gas market • Commissioned in 2003 by OMV Australia, upgraded in 2009 for Longtom gas •
Slide 27: Manta Gas Project
Manta Gas Project 65% interest and Operator of gas project offering commercial opportunity and synergies with Sole For personal use only • Gas resource of 106 PJ 2C Contingent and Risked Manta Contingent Resource1 Prospective Resource of 11PJ (100% JV) 1C 2C 3C Gas PJ 68 106 165 • COE Business case
Slide 28: Indonesian oil production & reserves uplift
Indonesian oil production & reserves uplift Step change in reserves and production from low-risk value add strategy For personal use only • Appraisal and development drilling program successful in adding reserves and production • Prospective exploration blocks • Opportunity to step up production bey
Slide 29: Notes on calculation of Reserves and Resources
Notes on calculation of Reserves and Resources The approach for all reserve and resource calculations is consistent with the definitions and guidelines in the Society of Petroleum Engineers (SPE) 2007 Petroleum Resources Management System (PRMS). The resource estimate methodologies incorporate a ran
Slide 30: Abbreviations
Abbreviations $, A$ Australian dollars unless specified otherwise For personal use only Bbls barrels of oil boe barrel of oil equivalent bopd barrel of oil per day EBITDA earnings before interest, tax, depreciation and amortisation FEED Front end engineering and design kbbls thousand barrels LTIFR L
Slide 31: Contact details
Contact details For personal use only Website: cooperenergy.com.au Investor relations: Don Murchland +61 439 300932 donm@cooperenergy.com.au Address: Cooper Energy Limited Level 10 Waymouth St Adelaide SA 5000 + 61 8 8100 4900 Investor Update December 2015 31
Slide 32: For personal use only
For personal use only
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