Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — Euroz Securities Institutional Conference (March 2018)
32 slides from Amplitude Energy's conference presentation, Mar 13, 2018
Slide 1: Presentation to Euroz Securities Institutional Conference
For personal use only February 2018: Diamond Offshore Ocean Monarch prepares to leave Fremantle to commence Victorian offshore drilling program Presentation to Euroz Securities Institutional Conference 13 March 2018
Slide 2: Important Notice – Disclaimer
Important Notice – Disclaimer This investor presentation (“Presentation”) is issued by Cooper Energy Limited ABN 93 096 170 295 (“Cooper Energy” or “COE”). Summary information: This Presentation contains summary information about Cooper Energy and its activities as at the date of this Presentation a
Slide 3: Key investment features
Key investment features Focussed on south-east Australian gas; approaching 6x surge in production, contracting gas reserves into a tight market and resources and potential for growth beyond 2022 For personal use only 1. Established gas supply business & oil production 12 Forecast production • Produc
Slide 4: FY18 First half key outcomes
FY18 First half key outcomes Gas strategy delivering results in key performance indicators and business development For personal use only • HSEC: zero recordable injury cases and reportable environmental incidents • Sole gas project FID in August and 35% complete at 28 February • 2P reserves upgrade
Slide 5: Sole gas project
Sole gas project Largest new south-east Australia gas supply development in 10 years For personal use only Upstream: Cooper Energy Orbost Gas Processing Facility Midstream: APA Group (APA 100%) • Final Investment Decision • Undertaking $250 million plant August ‘17 upgrade to process Sole gas • Sole
Slide 6: Impact of Sole on Cooper Energy
Impact of Sole on Cooper Energy Transformational impact on reserves and expected production and cash flows For personal use only Proved & probable reserves Forecast production Estimated* operating cash flow MMboe MMboe $ million 150 55 6 5 120 44 4 90 33 3 22 60 2 11 1 30 0 0 0 FY16 FY17 Sole FID FY
Slide 7: Sole gas project 35% complete to end February 2018
Sole gas project 35% complete to end February 2018 For personal use only ORBOST GAS PROCESSING ✓ Piling completed FACILITY ✓ Plant construction contract Works By - APA Group awarded. Plant Upgrade & Operations HDD Gas Pipeline Crossing - Complete Hole Drill Size – 24” 12” Pipeline Length – 1.4 km HD
Slide 8: Offshore drilling program schedule as at March 2018
Offshore drilling program schedule* as at 6 March 2018 Expect to commence March, Sole production wells scheduled for completion early June For personal use only Location Project March April May June July Otway Casino-5 workover Sole-3 drill & complete Sole-4 drill & complete Gippsland Sole-2 abandon
Slide 9: Sole gas marketing
Sole gas marketing Gas contracts in place support financing, upside retained in uncommitted gas to market from mid CY18 For personal use only Sole gas production: contracted and uncontracted PJ pa 10.0 3.9 3.9 3.9 4.0 3.9 3.9 3.9 8.5 10.9 Uncontractted 20.0 20.0 20.0 20.0 20.0 20.0 20.0 Contracted 1
Slide 10: Cooper Energy portfolio: focussed on south east Australia
Cooper Energy portfolio: focussed on south east Australia 305 PJ 2P and 158 PJ 2C gas and exploration acreage located close to market and infrastructure For personal use only Cooper Basin: oil production • historical production source • production of ~250 kbbl oil pa • low cost operations Otway basi
Slide 11: ACCC view of supply and pricing for south-east Australian gas
ACCC view of supply and pricing for south-east Australian gas For personal use only Forecast gas demand exceeds forecast …necessitating supply from …the delivered cost of which is the local production … northern fields… price benchmark, which will be affected by oil & LNG prices Southern states* gas
Slide 12: Offshore Otway Basin prospectivity
Offshore Otway Basin prospectivity Attractive prospectivity & extensive acreage in lightly explored gas province For personal use only Current Status Underexplored ✓ Four offshore production ✓ 1,197 km2 under licence wells producing via pipeline offshore to shore ✓ No wells drilled since 2008 ✓ Gas
Slide 13: Portfolio style business building around Gippsland and Otway hubs
Portfolio style business building around Gippsland and Otway hubs Plans escalating in 2018-19 with gas contracting and capex around 2 hubs best placed for supply to south-east Australia For personal use only Otway: offshore & onshore Gippsland 2018: 2018: • Casino-5 workover Otway Hub • Sole gas pro
Slide 14: Review of operations Cooper Basin H1 FY18
Review of operations Cooper Basin H1 FY18 Low cost, cash-generating oil production For personal use only • First half production of 137 kbbl vs 130 kbbl in pcp – connection of Callawonga wells drilled FY17 • Average realised price: A$74.51/bbl for H1 FY18 • Operating costs of A$32.40/bbl for H1 FY18
Slide 15: Wrap-up
Wrap-up Established business approaching increased production and cash inflexion point with exposure and new opportunities in east coast gas For personal use only • Established operations generating cash Sound cash generating • Strong balance sheet with senior bank funding existing business • Experi
Slide 16: Appendices
For personal use only Appendices
Slide 17: Cooper Energy - assets
Cooper Energy - assets Portfolio built around winning position on cost curve For personal use only Key statistics* Proved & Probable Reserves 54.1 MMboe Contingent Resources (2C) 34.9 MMboe Production FY18 guidance 1.4 MMboe Market capitalisation $500 million Net cash/(debt) $203.8 million Issued sh
Slide 18: Current position and outlook
Current position and outlook Cooper Energy is in the midst of a 6 year growth profile sourced from existing assets and its leverage to the south-east Australian gas market For personal use only 2012 – 2016 Now: 12 – 24 months: Longer term: Vision execution Suppling & developing Delivery & growth Blu
Slide 19: Gippsland Basin
Gippsland Basin Cost competitive resource, existing plant and Sole production planned for FY19 For personal use only Sole gas project Key assets: (all 100% equity & Operator) • FID 29 August 2017, project proceeding to schedule, 35% complete end-Feb • Sole gas project (VIC/L32) • Sole gas project pr
Slide 20: Review of operations: offshore Otway Basin H1 FY18
Review of operations: offshore Otway Basin H1 FY18 Gas production and marketing for new contracts to supply from March’ 18 For personal use only First half production H1 FY17 H1 FY18 Sales gas PJ - 3.86 Condensate kbbl - 3 Casino Henry • sales gas of 3.1 PJ produced (Cooper Energy share) • Casino 5
Slide 21: Sole gas project: the field
Sole gas project: the field Simple, well-defined structure with good reservoir quality For personal use only Shallow depth • Reservoir at shallow depths below the sea floor - mapped depth to top of gas column is 745 m subsea, maximum gas column height is 71.5 m Well defined, simple structure • Reser
Slide 22: Otway Basin, Penola Trough onshore
Otway Basin, Penola Trough onshore Haselgrove drilling results confirm prospectivity for deep conventional gas For personal use only South Australia • Haselgrove-3 discovery in adjoining PPL 62 has confirmed conventional gas prospectivity of the Sawpit sandstone at depths below previous producing le
Slide 23: First half key financial results
First half key financial results For personal use only $ million unless otherwise indicated H1 FY18 H1 FY17 change Production MMbbl 0.81 0.16 ▲ 417% Sales revenue 31.3 11.0 ▲ 185% Gross profit 14.1 4.6 ▲ 206% Gross profit/Sales revenue % 45.0% 41.8% ▲ 8% Statutory profit before tax 21.3 (5.3) ▲ 502%
Slide 24: Statutory and underlying profit
Statutory and underlying profit Orbost Gas Processing Facility value addition the major item in reconciliation of statutory to underlying profit For personal use only 6 months ending 31 December 2017: $ million Net profit after tax 19.8 Adjustments for: Gain on sale of subsidiary (Orbost Gas Process
Slide 25: Safety
Safety Injury-free. Operator management systems developed and implemented plus ongoing improvement program driven by value of Care For personal use only • TRCFR = 0.0 (FY16 TRCFR = 1.98) Total Recordable Case Frequency Rate − zero Lost Time Injuries events per million hours worked • Compliance as a
Slide 26: South-east Australia gas supply costs in 2020
South-east Australia1 gas supply costs in 2020* Cooper Energy projects are cost competitive for south-east Australia For personal use only Delivered Melbourne city gate cost for gas from eastern Australia available for delivery to domestic market in 2020* AUD / GJ Typical peak daily quantity for 14
Slide 27: Cooper Energy contracted and uncontracted gas profile by project
Cooper Energy contracted and uncontracted gas profile* by project Existing assets & projects offer growth over 5 years before exploration For personal use only Gas sales profile by project contracted & uncontracted PJ pa Manta uncontracted Gippsland Gas Project Sole uncontracted Phase 2 26 Manta 25
Slide 28: Gas market outlook for eastern Australia
Gas market outlook for eastern Australia Forecast ongoing tight supply supportive of contracting at current prices or better For personal use only Forecast eastern Australia gas demand supply ACCC analysis of gas prices offered & accepted balance 2018 – 2019 PJ Unfilled offers between 1 January 2017
Slide 29: Forecast eastern Australia gas supply and demand outlook
Forecast eastern Australia gas supply and demand outlook Tight market forecast* for 2018 and 2019 For personal use only 2018 2019 PJ PJ Additional demand @ max capacity 311 338 1,293 LNG 1921 1913 1,217 LNG base case = contract + forecasts spot sales Range of ACCC 2018 Range of ACCC 2019 supply /dem
Slide 30: Senior management
Senior management For personal use only Managing Director General Manager, Development Company Secretary & General Manager, Commercial David Maxwell Duncan Clegg Legal Counsel & Business Development Alison Evans Eddy Glavas David Maxwell has over 30 years’ Duncan Clegg has over 35 years’ experience
Slide 31: Notes on calculation of Reserves and Resources
Notes on calculation of Reserves and Resources Notes on Calculation of Reserves and Contingent Resources Cooper Energy has completed its own estimation of reserves and resources in accordance with the definitions and guidelines in the Society of Petroleum Engineers (SPE) 2007 Petroleum Resources For
Slide 32: Abbreviations
Abbreviations $, A$ Australian dollars unless specified otherwise For personal use only Bbl barrels of oil Boe barrel of oil equivalent EBITDA earnings before interest, tax, depreciation and amortisation FEED Front end engineering and design GJ Gigajoules kbbls thousand barrels m metres MMbbl millio
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