Slide 1: High Peak Royalties Limited Investor Presentation June 2014
For personal use only HIGH PEAK ROYALTIES LIMITED Investor Presentation June 2014
Slide 2: Disclaimer
DISCLAIMER This document has been prepared by High Peak Royalties Limited (“High Peak”) to provide a general overview of the For personal use only company. Any statements, opinions, projections or other material contained in this document do not constitute any commitments, representations or warrant
Slide 3: High Peak Overview: Key Points
HIGH PEAK OVERVIEW Key Points For personal use only 1 Leading ASX listed royalty company with offices in Perth & Sydney 2 Oil & gas focus with diversified exposure across Australia’s major oil & gas basins 3 Four royalties set to generate earnings in CY2014 4 Transformational exposure to two
Slide 4: Corporate Overview: Capital Structure & Shareholder Base
CORPORATE OVERVIEW Capital Structure & Shareholder Base For personal use only Capital Structure Key Shareholders Shares on Issue 166.8m Anthony Wooles 10.2% Share Price (26 June 2014) $0.20 Anglo Pacific 7.4% Market Capitalisation $33.4m Geoff Loudon 7.3% Cash $6.0m MPS Super Fund 5.6% Debt $0.0m An
Slide 5: Board & Management Team
BOARD & MANAGEMENT TEAM Strong Team with Proven & Complementary Expertise Non-Executive Chairman Non-Executive Deputy Chairman For personal use only Wharton Finance MBA Lawyer with over 37 years international oil Anthony Founded and subsequently sold ASX listed Geoffrey & gas experience Wooles
Slide 6: The Royalty Business Model
THE ROYALTY BUSINESS MODEL Superior Investor Returns For personal use only 1 Secure attractive commodity price & project leverage 2 Avoid typical E&P capex & opex risks borne by project owners 3 Gain long term optionality & future upside to exploration and/or production success 4 Scale busin
Slide 7: Royalty Portfolio
ROYALTY PORTFOLIO Diversified Exposure Across Australia’s Major Oil & Gas Basins For personal use only Key royalties with high quality project operators Including some of the world’s leading oil & gas companies 7
Slide 8: Royalty Pipeline
ROYALTY PIPELINE Well Balanced Pipeline with Strong Growth Prospects For personal use only Exploration Development Production North Carnarvon Basin Longtom West Gemfish Tintaburra Oil Surat Basin CSG Field (ATP 574) Surprise (ATP 299) Mt Kitty Poseidon West Surprise Peat Gas Amadeus East Longtom Fie
Slide 9: Production Royalties
PRODUCTION ROYALTIES Strong Platform For personal use only Origin Nexus Santos Peat Gas Field Longtom Gas Field Tintaburra Oil Field Surprise West Project (PL 101) (VIC L29) (ATP 299P) (EP 115) QLD VIC QLD NT Location Bowen Basin Gippsland Basin Cooper/Eromanga Basin Amadeus Basin Commodity CSG Oil
Slide 10: Key Development Royalties
KEY DEVELOPMENT ROYALTIES Transformational Potential For personal use only Operator/Owner Project PL 171 & ATP 574 QLD Location Surat Basin Commodity CSG Status Development Royalty 2.5% ORR Area ~400km2 Reserve/ ~600PJ Resource1,2 (gas in place) Project Life2 +10 to 20 years Set to generate sizeable
Slide 11: Recent Portfolio Developments
RECENT PORTFOLIO DEVELOPMENTS Multiple Valuation Catalysts For personal use only 1 Ophir to farm-in to 75% of WHL Energy’s Seychelles project 4 March 2014 2 Central Petroleum commences production at Surprise West oil field 13 March 2014 3 Santos delivers encouraging exploration results at Mt Kit
Slide 12: Upcoming Project Activity
UPCOMING PROJECT ACTIVITY Exciting Next 12 Months Ahead For personal use only 2014 2015 Project Activity Operator Q3 Q4 Q1 Q2 Mt Kitty-1, Testing Amadeus Basin CSG Royalties Appraisal Drilling (PL 171, ATP 574), & QCLNG Surat Basin First Export Surprise East, Appraisal Amadeus Basin Drilling Explora
Slide 13: Strategic Focus
STRATEGIC FOCUS Value Adding Growth For personal use only Preference for production and/or near term production royalties Expand Royalty 1 Strategically consider royalties with significant optionality Portfolio Focus on Australia and other favourable investment jurisdictions Seek to gain att
Slide 14: Expanding the Royalty Portfolio
EXPANDING THE ROYALTY PORTFOLIO Multiple Growth Options For personal use only Original project vendors Acquire Existing 1 Property owners Royalties Past corporates (large & small) Provide finance in exchange for royalty so project owner can advance Finance New project which ultimately enhanc
Slide 15: ASX Benchmarking
ASX BENCHMARKING Attractive Value Relative to Other ASX Royalty Exposures For personal use only Royalco Fitzroy River High Peak (ASX:RCO) (ASX:FZR) (ASX:HPR) Mkt Cap $13.2m $29.5m $33.4m Net Cash $4.8m $12.1m $6.0m Enterprise Value $8.4m $17.4m $27.4m Key Commodity Exposure Oil & Gas Oil & Gas Oil &
Slide 16: Summary: Investment Proposition
SUMMARY Compelling Investment Proposition For personal use only 1 Leading ASX listed royalty company with strong platform 2 Strong board & management team focused on value adding growth 3 Well balanced royalty portfolio with significant upside 4 Multiple on-going valuation catalysts announce
Slide 17: Appendix A: Summary of Royalty Interests
APPENDIX A: SUMMARY OF ROYALTY INTERESTS For personal use only Royalty Royalty Project / Property State Location Operator/Owner Interest Type Production / Near Term Production Peat Gas Field (PL 101) QLD Onshore, Bowen Basin 2.10% ORR Origin Longtom Gas Condensate Field (VIC L29) VIC Offshore, Gipps
Slide 18: Appendix B: Queensland CSG Royalties
APPENDIX B: OVERVIEW OF KEY ROYALTIES Queensland CSG Royalties For personal use only Operator/Ow ner Peat Gas Project / Field PL 171 ATP 574 Property (PL 101) Royalty 2.1% ORR 2.5% ORR QLD QLD Location Bowen Basin Surat Basin Commodity CSG CSG Status Production Development Area ~240km2 ~400km2 Reser
Slide 19: Appendix B: Amadeus Basin
APPENDIX B: OVERVIEW OF KEY ROYALTIES Amadeus Basin For personal use only Operator/Ow ner Surprise Surprise Mt Kitty, Project / West East EP-112, EP- Property (EP 115) (EP 115) 118, EP-125 Royalty 1% ORR 1% ORR 1% ORR NT NT NT Location Amadeus Basin Amadeus Basin Amadeus Basin Commodity Oil Oil Oil
Slide 20: Appendix B: Gippsland Basin
APPENDIX B: OVERVIEW OF KEY ROYALTIES Gippsland Basin For personal use only Operator/Ow ner Project / Longtom (VIC L29) Property Royalty 0.3% GOR VIC Location Gippsland Basin Commodity Oil Status Production Area ~400km2 Reserve/ ~130PJ Resource1,2 Project Life2 +5 to 8 years Longtom is a strategic a
Slide 21: Appendix B: Cooper/Eromanga Basin
APPENDIX B: OVERVIEW OF KEY ROYALTIES Cooper/Eromanga Basin For personal use only Operator/Ow ner Project / Tintaburra (ATP 299P) Property Royalty 3.8% NPI QLD Location Cooper/Eromanga Basin Commodity Oil Status Production Area ~1,800km2 Reserve/ ~5.5MMbbl Resource1,2 Project Life2 +10 years Proven
Slide 22: Appendix B: Browse Basin
APPENDIX B: OVERVIEW OF KEY ROYALTIES Browse Basin For personal use only Operator/Ow ner Project / Poseidon Property (WA 315P & WA314P) Royalty 0.1% ORR WA Location Carnarvon Basin Commodity LNG Status Exploration Area ~4,000km2 Reserve/ ~7TCF Resource1,2 Project Life2 +10 to 20 years Origin’s recen
Slide 23: Appendix B: North Carnarvon Basin
APPENDIX B: OVERVIEW OF KEY ROYALTIES North Carnarvon Basin For personal use only Operator/Ow ner Project / WA 482P Property Royalty 0.2% ORR WA Location North Carnarvon Basin Commodity LNG Status Exploration Area ~13,359km2 Reserve/ ~7TCF Resource1,2 Project Life2 +10 to 20 years Recent farm-in by