Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — Taylor Collison Gas Day (April 2018)
25 slides from Amplitude Energy's conference presentation, Apr 5, 2018
Slide 1: Presentation to Taylor Collison Gas Day
Presentation to Taylor Collison Gas Day 5 April 2018 For personal use only
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: Cooper Energy gas strategy: focussed on south-east Australia
Cooper Energy gas strategy: focussed on south-east Australia Portfolio driven by gas market analysis & assets selected on strict investment metrics For personal use only Demand & supply analysis conducted 2012-2013 Identified that: • south-east Australia would be seeking new gas supply • supply oppo
Slide 4: 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 5: Cooper Energy today: focussed on south east Australia
Cooper Energy today: focussed on south east Australia 305 PJ 2P + 158 PJ 2C conventional gas & exploration acreage close to markets & infrastructure For personal use only Cooper Basin: oil production • historical production source • production of ~250 kbbl oil pa • low cost operations Otway Basin on
Slide 6: Cooper Energy gas production outlook
Cooper Energy gas production outlook Rising to 35 PJ pa on fully funded current projects, with upside to 56 PJ pa by FY22 For personal use only Reserves and resources: 60 • 305 PJ of 2P gas plus 158 PJ 2C Manta Production profile 50 • Production to rise to 35 PJ pa in 2 years to FY20 (Sole Sole + He
Slide 7: Gippsland Basin
Gippsland Basin Cost competitive resource, existing plant and Sole production planned for FY19 For personal use only Sole gas project 100% equity and operator • 249 PJ 2P gas field being developed to supply gas from mid-2019 • FID 29 August 2017, project proceeding to schedule, upstream project 40%
Slide 8: Sole gas project
Sole gas project 40% complete at end March 2018 ORBOST GAS PROCESSING ✓ Piling completed For personal use only FACILITY ✓ Plant construction contract Works By - APA Group awarded to Downer. Plant Upgrade & Operations Piling works completed at Orbost HDD Gas Pipeline Crossing - Complete Gas Plant, Vi
Slide 9: 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 10: Offshore Otway Basin
Offshore Otway Basin Gas production, development, marketing and exploration For personal use only Indicative Casino Henry gas production** PJ pa Cooper Energy 50% share Otway uncontracted Otway contracted 5 11 9 7 6 5 4 3 3 1 - FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 ** Profile is indicative an
Slide 11: Minerva Gas Plant
Minerva Gas Plant Ideally located, owned 90% BHP and 10% Cooper Energy For personal use only • BHP built and operated gas plant • 150 TJ/day capacity, plus liquids handling capability • Processing gas from Minerva gas field of approx 40 TJ/day; Minerva gas field approaching end of life 11
Slide 12: 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 confirmed conventional gas prospectivity of the Sawpit sandstone at depths below previous producing reserv
Slide 13: Portfolio style business built around Gippsland and Otway hubs
Portfolio style business built around Gippsland and Otway hubs Plans escalating 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 project • Onshore
Slide 14: Offshore drilling program schedule
Offshore drilling program schedule Casino workover in progress, Sole production wells scheduled for completion in 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 abandonment BMG abandonment
Slide 15: Wrap-up
Wrap-up Established east coast gas business approaching production ramp-up and cash inflection point with new opportunities being developed For personal use only • Established operations generating cash Sound cash generating • Strong balance sheet with senior bank funding existing business • Experie
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: 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 19: 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 20: 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 21: 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 22: 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 23: 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 24: 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 25: 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