Vintage Energy Ltd. · ASX:VEN

Vintage Energy — Investor Presentation (December 2017)

29 slides from Vintage Energy's investor presentation, Dec 4, 2017

  1. Slide 1: Reg Nelson Chairman Neil Gibbins

    Reg Nelson Chairman Neil Gibbins Managing Director

  2. Slide 2: Disclaimer

    Disclaimer This presentation has been prepared by Vintage Energy Pty Limited (Vintage or the “Company”), with the purpose of providing general information about the Company. It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company, or as an ind

  3. Slide 3: Contents

    Contents  Overview  Vintage Team  Gas and Energy Markets  Business Strategy  Projects  PEL 155, Otway Basin  Koburra Trough, Galilee Basin  News Flow  Forward Plan 4/12/2017 3

  4. Slide 4: Overview of Vintage Energy Pty Ltd

    Overview of Vintage Energy Pty Ltd  Registered 5 Nov. 2015  Pty Ltd company  Established to:  Acquire , explore and develop energy assets principally within, but not limited to Australia  Take advantage of favourable energy pricing  Gas supply shortage in the eastern states  Oil prices reboun

  5. Slide 5: Vintage Energy Team

    Vintage Energy Team  Strong relationships with Government and Government agencies  Successfully guided companies in difficult & buoyant commodity price periods  Deep knowledge of Australian basins  Well respected  Industry, governments, financial community & investors  Track records of innovat

  6. Slide 6: Energy and Gas Markets

    Energy and Gas Markets 4/12/2017 6

  7. Slide 7: A Crisis Foreshadowed

    A Crisis Foreshadowed Security blueprint needed for Australia's energy supply grid: Beach Petroleum Energy News Bulletin, 17 June 2002 Mr Nelson said that one of the most important issues facing Australia during the first 20 years of this century was energy for electricity and transport fuels. "If a

  8. Slide 8: AEMO

    AEMO The Australia Energy Market Operator’s (AEMO) 2017 Gas Statement of Opportunities predicts an Australian East coast gas shortage in 2018 and 2019  “Based on the most recent information …… gas supply remains tight in eastern and south-eastern Australia in 2018 and 2019, and there remains a risk

  9. Slide 9: Newspaper headlines - Robert Gottliebsen

    Newspaper headlines - Robert Gottliebsen  Energy crisis will be worse than expected, with costly blackouts coming (March 20)  Mistakes caused the energy disaster — what other damage is being done? (March 21)  Energy crisis risk is criminal (March 22)  Renewable energy needs investment in back up

  10. Slide 10: ACCC

    ACCC Recognising Australia's east coast gas crisis Rod Sims, ACCC Chairman 5th Annual Australian Domestic Gas Outlook 2017 - 14 March 2017  “At last year’s conference… I warned of... “an urgent need for both new and importantly more diverse sources of gas supply into the domestic market. The outloo

  11. Slide 11: Business Strategy

    Business Strategy Unique Circumstances  Asset values fallen inline with global crude prices  Companies still reducing costs and shedding equity in exploration, production and infrastructure assets  Massive LNG industry in Queensland  Anti-industry activism and politics (particularly in NSW, VIC,

  12. Slide 12: Operational Strategy

    Operational Strategy  Goal of raising sufficient capital for a 5 year period  Minimum of four projects for a prospectus  Targeting assets with early production/positive cashflow potential to underpin and provide capital for future growth  Mix of projects on the Risk/Maturity vs Reward matrix; fo

  13. Slide 13: Projects

    Projects 4/12/2017 13

  14. Slide 14: Portfolio Build - Status

    Portfolio Build - Status  PEL 155, Otway Basin  25% equity acquired  PACE Gas Grant application submitted  Additional 25% equity, subject to successful PACE application  Nangwarry-1 Prospective Resource* 33 Bcf (Gross P50 recoverable) 16.5 Bcf (50% equity P50 recoverable)  ATPs 743, 744, 1015,

  15. Slide 15: PEL 155, Otway Basin

    PEL 155, Otway Basin  Vintage acquired 25% equity via $100,000 payment to Otway Energy (subsidiary of Rawson Oil & Gas).  Joint Venture: Otway Energy 75%, Vintage 25%  PACE Gas Grant application submitted (seeking 50% of drilling and evaluation costs for 1 well)  Successful applicants announced

  16. Slide 16: Penola Trough, Otway Basin - Background

    Penola Trough, Otway Basin - Background  Exploration began 1866  Modern day exploration began in 1961  Over 80 wells drilled  13,500 km of 2D & 710 km2 of 3D seismic  Katnook Gas Plant commissioned in 1991  Over 70 Bcf gas and 0.4 MMbbls condensate produced  Fields shut-in, plant mothballed 

  17. Slide 17: PEL 155, Nangwarry Prospect – Play Concept

    PEL 155, Nangwarry Prospect – Play Concept  Exploration well to test gas & condensate potential of an un-drilled prospect in the Penola Trough  Hydrocarbon migration from source rocks deep in the Penola Trough  3-way dip, fault sealed closure analogous to Ladbroke Grove & Katnook fields  Covered

  18. Slide 18: PEL 155, Nangwarry Prospect

    PEL 155, Nangwarry Prospect Prospect Summary Haselgrove  Primary Target : Top Pretty Hill Fm Ladbroke Field Grove Field  Target Depth : 3200m  Closure : 2.4km2  Pros. Resource* : 33 Bcf (P50 recoverable)  Reservoir Porosity : 14-20% (P90-P10)  Recovery Factor : 45-59% (P90-P10)  Primary Uncer

  19. Slide 19: Galilee Basin: ATPs 743, 744, 1015

    Galilee Basin: ATPs 743, 744, 1015  Comet Ridge 100% and operator  Vintage to earn 30% interest (up to 48%) in strata below shallow coals  Subject to Vintage finance, JOA and Co-ordination Agreement  Vintage pay ~ $8.5 million to earn 30%  Independently certified conventional gas Contingent Res

  20. Slide 20: Galilee Basin: ATPs 743, 744, 1015

    Galilee Basin: ATPs 743, 744, 1015  Large, cattle grazing area, central western Queensland  ~100 petroleum wells (intersecting Galilee sequence) over 70 years  Targeted Late Carboniferous to Permian sandstones to depths of ~3000m  3 historic petroleum wells within ATP 743 and ATP 744  All demon

  21. Slide 21: Albany Structure

    Albany Structure Carmichael-1 (Maple Oil & Expln, 1995)  Tested robust anticline  Defined by1980’s 2D seismic grid (2.5x 2.5km)  Late Carboniferous Lake Galilee Sandstone  150m gross sandstone with >30m net pay  Gas flow to surface despite 500-600psi overbalanced mud system  Large gas discover

  22. Slide 22: Koburra Trough – Potential

    Koburra Trough – Potential Koburra Trough  Largely unexplored over a wide area  Working petroleum system  Appraise Carmichael-1 discovery  Robust full cycle economics  Plans for exploration follow-up  More seismic required  Potential for additional structures with large gas condensate accumul

  23. Slide 23: ATPs 743, 744, 1015 -Deal Structure

    ATPs 743, 744, 1015 -Deal Structure  Interest earned in strata below shallow coals of Betts Creek Beds and Aramac Coals  Shallow CSG development excluded  Conventional gas target at ~ 2800m  Lake Galilee Sandstone  ~2:1 work program promote to earn 30%  Can acquire up to 48% by increasing prom

  24. Slide 24: ATPs 743, 744, 1015 – Planned Work Program

    ATPs 743, 744, 1015 – Planned Work Program 2018 Q1 Stage 1a Q2 Stage 1b Q3 Stage 2 Q4 ~ Gross Cost ~ Net Cost Stage Description ($million) ($million) 1a Drill Albany-1 with nitrogen, flow test 3.8 3.4 1b Stimulate and flow test 1.2 0.3 (optional) Drill Albany-2, stimulate (?) flow test 2 2D Seismic

  25. Slide 25: Further Assets to come

    Further Assets to come  2 under negotiation  Others under review  Focus on central/eastern Australian onshore basins  STAY TUNED 4/12/2017 25

  26. Slide 26: Indicative News Flow

    Indicative News Flow 2017 2018 Q1 Q2 Q3 Q4 Albany-1 $4million raise Albany-1 IPO Albany-1 stimulation Albany-2 Galilee Galilee flow test & flow test 2D seismic 3D seismic (optional) Nangwarry-1  Strong news flow post IPO  Drilling, flow tests, well stimulation, 2D &3D seismic  Important results t

  27. Slide 27: Forward Plan

    Forward Plan  Moving to public company status from Pty Ltd in December  In parallel  Raise $4+million (net of costs) Q4 2017 to complete Comet Ridge deal and commence work programs  Prepare for IPO March/April 2018 (subject to appropriate market conditions)  Disciplined approach in evaluating o

  28. Slide 28: Glossary

    Glossary AUD or $ Australian dollars 1C Contingent resource low estimate(1) 2C Contingent resource best estimate(1) 3C Contingent resource high estimate(1) 2D Two dimensional 3D Three dimensional 1P Proved reserve estimate(1) (1) Refer to “Guidelines for Application of the Petroleum Resources Manage

  29. Slide 29: For Information

    For Information contact@vintageenergy.com.au Photos courtesy of Ensign Drilling and Terrex Seismic (except gas flare)

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