Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — Investor Presentation (March 2017)
45 slides from Amplitude Energy's investor presentation, Mar 29, 2017
Slide 1: For personal use only
For personal use only 29 March 2017
Slide 2: Important notice and disclaimer
Not for release or distribution in the United States of America This investor presentation (“Presentation”) is issued by Cooper Energy Limited ABN 93 096 170 295 (“Cooper Energy” or “COE”). This Presentation has been issued by Cooper Energy in relation to: For personal use only • the Sole gas projec
Slide 3: Agenda
For personal use only Not for release or distribution in the United States of America Transaction overview Sole gas project Equity raising offer details Key risks Offer jurisdictions Appendices 3
Slide 4: 1. Transaction overview
Wf me OOPER NERGY 1. Transaction overview
Slide 5: Sole gas project approved as ready to proceed
For personal use only Not for release or distribution in the United States of America Cooper Energy’s board of directors have approved the Sole gas project as ready to proceed The project satisfies technical, commercial, economic and risk management hurdles and the board has firm conviction that sat
Slide 6: Equity raising summary
For personal use only Not for release or distribution in the United States of America Fully underwritten equity raising of approximately $151 million, comprising: − An institutional placement to raise approximately $47 million; plus − A 1-for-2 Accelerated Non-Renounceable Entitlement Offer to raise
Slide 7: Investment highlights
For personal use only Not for release or distribution in the United States of America Transformational event • Sole gas project FID will trigger 370% reserves uplift • Cooper Energy repositioned as leading mid-cap conventional gas producer • Foundation for 6 year growth profile1 from existing assets
Slide 8: 2. Sole gas project
Wf me OOPER NERGY 2. Sole gas project
Slide 9: South-east Australia gas demand, supply and prices
For personal use only Not for release or distribution in the United States of America Forecast1 south-east Australia gas demand and production Victorian Average Daily Wholesale Gas Price PJ pa $GJ 600 $35 $30 500 $25 400 $20 300 $15 200 $10 100 $5 0 $0 2016 2018 2020 2022 2024 2026 2028 2030 2032 20
Slide 10: Sole project and APA Orbost Gas Plant HoA
For personal use only Not for release or distribution in the United States of America Midstream: Upstream: Orbost Gas Plant (APA1 100%) Longtom (Seven Group 100%) HoA1 with APA Group for proposed • 2C Contingent Resource2: 249 PJ transaction under which APA: Patricia Baleen (Cooper Energy 100%) • Re
Slide 11: Sole gas contracts and production profile
For personal use only Not for release or distribution in the United States of America • Take or pay contracts in place sufficient for financing: 20 PJ pa1 (55 TJ/day) Sole gas production: contracted and uncontracted with blue chip customers: PJ pa – based on current onshore plant capacity2 – AGL: 12
Slide 12: Project assurance, commercial and financing status
For personal use only Not for release or distribution in the United States of America Project Assurance Commercial Financing Sole development plan Independent resources Pre-sanction gas Debt process underway finalised review contract target achieved Advanced negotiations Project team tra
Slide 13: 2P reserves uplift
For personal use only Not for release or distribution in the United States of America 2P reserves* 2P gas reserves MMboe (PJ) Conventional gas ~54 309 CSG 258 427 224 Cooper 11.6 Basin 1.3* conventional 60 Jun-16 Jan-17 June -17 2 1 1 Proforma* SXY 1 COE 1/1/17 BPT AWE COE proforma post Sole • 249 P
Slide 14: Production forecast
For personal use only Not for release or distribution in the United States of America Production MMboe 7.0 • Sole commencement in FY19 provides further uplift to growth expected from Casino Henry 6.0 • Total Cooper Energy gas production of 36 PJ pa in first full year of Sole operation, based on exis
Slide 15: Phase 2 development of Gippsland gas projects
For personal use only Not for release or distribution in the United States of America Phase 1 and 2 Development of Gippsland Basin Gas Projects, Production Sole and Manta MMboe 12.0 10.0 8.0 Minerva 6.0 Manta 100% 4.0 Sole 100% Casino 2.0 Henry Cooper Basin oil Casino Henry - FY17 FY18 FY19 FY20 FY2
Slide 16: Gas production: contracted and uncontracted
For personal use only Not for release or distribution in the United States of America Gas production1 from current assets: contracted & uncontracted PJ pa 37 36 35 22 26 13 15 12 15 16 10 Uncontracted 20 20 20 20 20 20 20 14 16 2 10 Contracted 3 5 1 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26
Slide 17: 3. Equity raising offer details
Wf me OOPER NERGY 3. Equity raising offer details
Slide 18: Offer structure and price
For personal use only Not for release or distribution in the United States of America Offer Structure • Fully underwritten equity raising of approximately $151 million, comprising: – An institutional placement to raise approximately $47 million; plus – An Accelerated Non-Renounceable Entitlement Off
Slide 19: Use of proceeds
Not for release or distribution in the United States of America • The equity raising proceeds will be used to fund capital expenditure and other costs in relation to the Sole gas project and will substantially cover the expected equity funding requirement for the project For personal use only • Coop
Slide 20: Indicative timetable
Not for release or distribution in the United States of America Trading Halt and announcement of the Equity Raising Wednesday, 29 March 2017 For personal use only Institutional Offer opens Wednesday, 29 March 2017 Institutional Offer closes Thursday, 30 March 2017 Trading Halt lifted - shares commen
Slide 21: 4. Key risks
Wf me OOPER NERGY 4. Key risks
Slide 22: Key risks: project analysis and technical
Not for release or distribution in the United States of America Risk Description Analysis of the Project COE has undertaken financial, operational, business and other analysis in respect of the Sole gas project in order to determine its readiness to proceed from a technical, commercial and economic
Slide 23: Key risks: domestic gas market and contracting
Not for release or distribution in the United States of America Risk Description Domestic Gas Market COE has identified an opportunity to provide natural gas from the Sole gas project to the south-east Australia gas market. The market is subject to the fluctuations of supply and demand and price. To
Slide 24: Key risks: exploration and production
Not for release or distribution in the United States of America Risk Description Exploration and production The future profitability of COE and the value of its shares are directly related to the results of exploration, development and production activities as well as costs and prices as noted above
Slide 25: Key risks: counterparties and land access
Not for release or distribution in the United States of America Risk Description Counterparties The ability of COE to achieve its stated objectives will depend on the performance of the counterparties under the various agreements it has entered into. If any counterparties do not meet their obligatio
Slide 26: Key risks: government actions and commercialisation
Not for release or distribution in the United States of America Risk Description Government actions COE requires government regulatory approvals for its operations. The impact of actions, including delays and inactions, by governments in Australia or internationally may affect COE’s activities inclu
Slide 27: Key risks: general market and share price
Not for release or distribution in the United States of America Risk Description General market and share price There are general risks associated with investments in equity capital such as COE shares. The trading price of COE shares may fluctuate with movements in equity capital markets in Australi
Slide 28: Key risks: underwriting
Not for release or distribution in the United States of America Risk Description Underwriting COE has entered into an Underwriting Agreement with Euroz and Canaccord Genuity (together, the "Underwriters") under which the Underwriters have agreed to fully underwrite the Equity Raising (the "Underwrit
Slide 29: 5. Offer jurisdictions
Wf me OOPER NERGY 5. Offer jurisdictions
Slide 30: International offer restrictions: Canada
Not for release or distribution in the United States of America International Offer Restrictions This document does not constitute an offer of New Shares of COE in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares ma
Slide 31: International offer restrictions: Hong Kong
Not for release or distribution in the United States of America Hong Kong WARNING: This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong, nor has it been authorised by the Securities and
Slide 32: International offer restrictions: Switzerland
Not for release or distribution in the United States of America Switzerland The New Shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange ("SIX") or on any other stock exchange or regulated trading facility in Switzerland. This document has been prepared
Slide 33: Appendices
For personal use only Appendices
Slide 34: Cooper Energy business overview
For personal use only Not for release or distribution in the United States of America Gas production & sales Oil exploration & production Gas projects & contracting Otway Basin: Casino Henry & Minerva1 Cooper Basin Western Flank Gippsland and Otway Basins Sales of ~7- 8 PJ pa to EnergyAustralia 240,
Slide 35: Gas production, contracts and projects
For personal use only Not for release or distribution in the United States of America Production Gas contracts • ~ 7 PJ pa from Casino • 188 PJ contracted from 2017 Henry & Minerva1 • EnergyAustralia (Otway & Sole) • Gas sold to EnergyAustralia • AGL Energy (Sole) • Gas available to contract • Alint
Slide 36: Sole development plan
For personal use only Not for release or distribution in the United States of America • Development plan finalised with 2 horizontal wells – encouraged by lower drilling costs * • 2 well development plan enhances project – lower technical risk, improved redundancy – 2C Contingent Resources1 upgrade
Slide 37: For personal use only
For personal use only Not for release or distribution in the United States of America 37
Slide 38: Gas production profile by project
For personal use only Not for release or distribution in the United States of America Gas production profile by project contracted & uncontracted PJ pa Gippsland Gas Project Phase 2 Manta 25 25 25 18 10 Gippsland Gas Project Phase 1 5 5 10 5 5 7 Sole 5 5 5 5 9 15 1 20 20 20 20 9 Manta uncontracted 6
Slide 39: Gippsland Basin assets
For personal use only Not for release or distribution in the United States of America Sole gas project (VIC L/32, COE:100%, Operator1) • 249 PJ 2C Contingent Resource2 Orbost Gas Plant Manta (VIC RL/13,14,15; COE 100%, Operator) • 106 PJ 2C Contingent Resource plus 3 million barrels liquids2 • Econo
Slide 40: Otway Basin assets
For personal use only Not for release or distribution in the United States of America Key Assets • Casino Henry gas project (50%) • Minerva gas field and plant (10% interest)1 • VIC/P44 exploration permit Production (COE share, effective from 1 January 2017) • Casino Henry (VIC/RL11 & 12): 7 PJ pa,
Slide 41: Cooper Basin oil production and costs
For personal use only Not for release or distribution in the United States of America • First half production of 0.13 MMbbl vs 0.17 in H1 FY16 • Production impacted by suspension of drilling in low oil price FY16 • Operating costs reduced from A$29.92/bbl to A$29.28/bbl • Drilling resumed in FY17 wi
Slide 42: Management team
Not for release or distribution in the United States of America Managing Director Executive Director General Manager, Development General Manager, Operations General Manager, Exploration For personal use only David Maxwell Hector Gordon Duncan Clegg Iain MacDougall & Subsurface David Maxwell has ove
Slide 43: Reserves table
Not for release or distribution in the United States of America Proved Proved & Probable Proved, Probable & Possible Reserves* (1P) (2P) (3P) For personal use only Cooper1 Otway2 Total Cooper1 Otway2 Total Cooper1 Otway2 Total Developed Sales Gas PJ 0.0 4.8 4.8 0.0 15.2 15.2 0.0 29.3 29.3 Oil + Cond
Slide 44: Reserves and resources notes
Not for release or distribution in the United States of America 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
Slide 45: Glossary
Not for release or distribution in the United States of America $, A$ Australian dollars unless specified otherwise Bbl barrels of oil For personal use only boe barrel of oil equivalent bopd barrel of oil per day EBITDA earnings before interest, tax, depreciation and amortisation FEED Front end engi