Australis Oil & Gas Ltd. · ASX:ATS
Australis Oil & Gas — Investor Presentation (March 2018)
39 slides from Australis Oil & Gas's investor presentation, Mar 22, 2018
Slide 1: Equity Raising Presentation
For personal use only Large undeveloped oil position provides the platform for significant value generation Equity Raising Presentation March 2018
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer This presentation has been prepared by Australis Oil & Gas Limited ACN 609 262 937 (ASX: ATS) (Australis). For personal use only Summary of information: This presentation contains general and background information about Australis' activities current as at the date of
Slide 3: Transaction Overview
For personal use only Transaction Overview Australis Oil & Gas Overview Tuscaloosa Marine Shale (TMS) Portugal Appendix 3
Slide 4: Financing Transaction Overview & Timetable
Financing Transaction Overview & Timetable Australis to raise A$39.2 million through a private placement to existing and new investors For personal use only Indicative Financing Timetable Australis to raise A$39 million (US$31 million(A)), before costs of the issue, through a private placement to
Slide 5: Australis Indicative Capital Structure
Australis Indicative Capital Structure Indicative capital structure following equity placement For personal use only Shares Options Ownership % Shares and Options (millions) (millions)(A) Pre options Post Options On Issue: - Directors & Management 100.2 88.0 11.2% 18.9% - Existing Shareholders 678.4
Slide 6: Australis Oil & Gas Overview
For personal use only Transaction Overview Australis Oil & Gas Overview Tuscaloosa Marine Shale (TMS) Portugal Appendix 6
Slide 7: Investment Highlights
Investment Highlights Positioned for significant value accretion For personal use only Largest acreage holder in the ‘core’ of the Tuscaloosa Marine Shale (TMS) Operator of Quality TMS oil production per well similar to the best areas within US shale such as Eagle Ford Assets Robust TMS produc
Slide 8: Company Snapshot
Company Snapshot Australis has existing reserves, production and revenue, no debt and a strong institutionally For personal use only dominated register with significant capital contribution from Board & Management Founded in 2014, listed on the ASX in July 2016 Capital Structure – pre placement
Slide 9: TMS Reserves and Resources
TMS Reserves and Resources 1P net oil reserves of 29 million barrels and 2P net oil reserves of 47 million barrels For personal use only Evolution of TMS Reserves and Resources (NRI Oil) Australis business strategy to accumulate ‘oil in the ground’ through the lower 160 oil prices is clearly shown
Slide 10: Directors & Management
Directors & Management Demonstrated track record in oil & gas For personal use only Jon Stewart –Chairman Graham Dowland – CFO & Finance Director >25 years in the upstream oil and gas industry >25 years experience in the oil and gas industry Founder and former Chairman and CEO of Aurora Oil
Slide 11: Tuscaloosa Marine Shale
For personal use only Transaction Overview Australis Oil & Gas Overview Tuscaloosa Marine Shale (TMS) Portugal Appendix Tuscaloosa Marine Shale Tier 1 acreage in an emerging oil shale province Investor Presentation 11
Slide 12: What is the TMS?
What is the TMS? The TMS is an emerging shale play. The “Core” is comparable with other prolific shale plays in the For personal use only US TMS Location Onshore basin - Louisiana and Mississippi On trend with Eagle Ford Basin in Texas, similar depositional history and age 80 horizontal wells
Slide 13: Australis TMS Well Performance
Australis TMS Well Performance The last 15 wells drilled within Australis’ core acreage demonstrate significantly higher average For personal use only productivity than the average of other TMS wells drilled in Mississippi Individual 24 Month Cumulative Production Per Well – TMS Mississippi4,5 Austr
Slide 14: TMS Oil Productivity Improvement Over Time
TMS Oil Productivity Improvement Over Time Following initial delineation of the TMS Core, the early refinement of Drilling and Completion For personal use only design resulted in significantly improved well performance Ryder Scott 1P EUR for Australis TMS wells by Spud Date* Industry improvements si
Slide 15: TMS Oil Productivity Compared to Permian
TMS Oil Productivity Compared to Permian The average production from Australis’ TMS wells drilled in 2014 are significantly higher than For personal use only Permian wells drilled at the same time. Industry improvements since 2014 have never been applied to the TMS Midland Basin Delaware Basin 200 2
Slide 16: Capital Cost Profile of Early TMS Wells
Capital Cost Profile of Early TMS Wells Well costs have trended downwards over time in line with other plays For personal use only Australis conservative well cost estimate – US$11MM for a single well (US$1,467/ft)6 Other play participants quoted US$8.7MM7 No TMS wells have been drilled in the
Slide 17: Australis TMS Land Position
Australis TMS Land Position Australis holds a dominant land position within the core of the TMS, with significant undeveloped oil For personal use only Australis TMS as at 31 December 2017 Australis TMS Position Reserves1 Net Oil 4 million bbls PDP US$80 million (NPV10) 1P Reserves 29 million bbls 2
Slide 18: Drilling Program
Drilling Program Australis is planning to commence an initial program of 4 to 10 wells to commence in 2H 2018 For personal use only Sites have been identified for a drilling Single Well Drilling & Completion Summary program of 4 to 10 wells within the TMS core Commenced the process of permitting
Slide 19: Financing the Initial Drilling Program
Financing the Initial Drilling Program Several potential financing alternatives are under assessment For personal use only A disciplined approach to capital management is being applied to the evaluation and negotiation of the potential financing alternatives available. Australis aims to appropriat
Slide 20: Single Well Economics – TMS Core Base Type Curve
Single Well Economics – TMS Core Base Type Curve* The TMS Core is highly profitable at current oil prices and current single well cost estimates without For personal use only assumed productivity improvements, batch drilling or economies that come with development scale Single Well Economics and Sen
Slide 21: Single Well Economics – TMS Productivity Upside
Single Well Economics – TMS Productivity Upside8 Significant productivity improvements seen across the industry since the last TMS wells were For personal use only spudded, averaging 22% uplift across 10 resource plays9 Single Well Economics and Sensitivities – Assumed 15% Production Improvement 16
Slide 22: Pathway to Value
Pathway to Value TMS Core acreage has significant upside with multiple catalysts to create and increase value For personal use only Value Catalysts Growth Strategy Likely to continue to recover as the Oil Price global supply market rebalances Continued refinement in design GOAL based on practice
Slide 23: Portugal
For personal use only Transaction Overview Australis Oil & Gas Overview Tuscaloosa Marine Shale (TMS) Portugal Appendix 23
Slide 24: Portugal Concessions Overview
Portugal Concessions Overview Australis owns two concessions onshore Portugal with significant development potential For personal use only Asset Highlights Asset Location Significant Gas Large in-place discovered and tested gas Resource accumulation with 2C resources of 458 Bcf Limited explorati
Slide 25: Portugal Prospectivity & Volumetrics
Portugal Prospectivity & Volumetrics Appraisal of a gas discovery with multiple nearby prospects and leads with a significant resource base For personal use only Proposed Work Program Batalha Gas Discovery Batalha Concession Prospects Drill and test the gas discovery with a vertical well Drill a
Slide 26: Appendix
For personal use only Transaction Overview Australis Oil & Gas Overview Tuscaloosa Marine Shale (TMS) Portugal Appendix
Slide 27: TMS Core Type Curve
TMS Core Type Curve Summary of monthly oil production data for the most recent 15 Encana operated modern offset For personal use only Mississippi wells Lewis 7- Pintard Lyons 35H Pintard Longleaf Longleaf Mathis Mathis Lawson Ash 13H Sabine Sabine McIntosh Reese Well Name Ash 13H 2 Average Cumulativ
Slide 28: Single Well TMS Core Type Curve
Single Well TMS Core Type Curve ATS type curve history matched to production from the most recent 15 Mississippi ECA wells For personal use only TMS Core TC – Assumptions TMS Core Type Curve v TMS Production 250,000 Oil EUR – 610 Mbbls Gas EUR – 159 MMscf 200,000 NGL EUR – 20 Mbbls Oil Product
Slide 29: TMS Base Case Economics – Key Assumptions
TMS Base Case Economics – Key Assumptions The production and opex assumptions are based on history and the capex costs are current third For personal use only party service providers’ estimates Base Case Assumptions* Production Forecast EUR (30 Years) 30,000 700,000 Gas 0.16 Bcf 25,000 600,000 Oil/C
Slide 30: Reserves and Resources Update
Reserves and Resources Update Maiden undeveloped reserve assessment For personal use only As an ASX participant Australis reports to the NRI Oil Reserve Categories SPE PRMS. This requires that undeveloped (MMbbls) reserves are assessed within a 5 year development timeframe. Proved Developed Produc
Slide 31: Financial & Operational Summary
Financial & Operational Summary Positive Field Cashflow financing overhead and land capex program in 2018 For personal use only Key financial metrics Sales (WI – before royalties) exit rate December 2017 1,700 bbls/d Sales (net – after royalties) exit rate December 2017 1,350 bbls/d Sales Revenue (2
Slide 32: Financing the Initial Drilling Program
Financing the Initial Drilling Program Possible terms relating to the debt financing alternatives For personal use only Based on ongoing discussions, Australis expects that the terms of potential debt financing alternatives under assessment, including any Norwegian bond, RBL and Term loan, might i
Slide 33: Option Terms Summary
Option Terms Summary Cash payable on For personal use only Grant dates Exercise Price (A$) Vesting Expiry Number exercise (A$) Directors, Executives & Management 13 Nov 2015 $0.25 Vested 31 Dec 2020 19,675,000 $4,918,750 13 Nov 2015 $0.30 (Series A) Vested 31 Dec 2020 27,775,000 $8,332,500 28 Apr 20
Slide 34: Footnotes
Footnotes For personal use only 1. All estimates and risk factors taken from Ryder Scott, report prepared as at 31 December 2017 and generated for the Australis concessions to SPE standards. See ASX announcement released on 30 January 2018 titled “Reserves and Resources Update Year End 2017”. The an
Slide 35: Glossary
Glossary Unit Measure Unit Measure For personal use only B Prefix - Billions bbl Barrel of oil MM or mm Prefix - Millions boe Barrel of oil equivalent (1bbl = 6 mscf) M or m Prefix - Thousands scf Standard cubic foot of gas /d Suffix - per day Bcf Billion standard cubic foot of gas Abbreviation Desc
Slide 36: Risk Factors
Risk Factors Investing in the placement involves inherent risks. Prospective investors should carefully consider, among other things, the risk factors set out below before For personal use only making an investment decision. The list of risk factors is not exhaustive and there may be other risks rel
Slide 37: International Offer Restrictions
International Offer Restrictions For personal use only This document does not constitute an offer of new ordinary shares ("New Shares") of Statutory rights of action for damages and rescission Australis in any jurisdiction in which it would be unlawful. In particular, this document may not be distri
Slide 38: International Offer Restrictions
International Offer Restrictions For personal use only United Kingdom Certain Canadian income tax considerations: Prospective purchasers of the New Shares Neither this document nor any other document relating to the offer has been delivered should consult their own tax adviser with respect to any ta
Slide 39: International Offer Restrictions
International Offer Restrictions For personal use only Hong Kong Singapore WARNING: This document has not been, and will not be, registered as a prospectus This document and any other materials relating to the New Shares have not been, and under the Companies (Winding Up and Miscellaneous Provisions
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