Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — ASX Spotlight Conference 2014
32 slides from Amplitude Energy's conference presentation, May 26, 2014
Slide 1: ASX Spotlight Conference 27 & 29 May 2014
For personal use only 27 & 29 May 2014
Slide 2: Important information and disclaimer
The information in this presentation: For personal use only • Is not an offer or recommendation to purchase or subscribe for shares in Cooper Energy Limited or to retain or sell any shares that are currently held. • Does not take into account the individual investment objectives or the financial sit
Slide 3: Key figures
For personal use only Key figures Share price range, 12 months $0.35 - $0.585 0.60 Shares on issue 329.2 mill 0.55 Market capitalisation1 $172.8 mill 0.50 Cash & investments2 $79.7 mill 0.45 Debt Nil 0.40 Production MMbbl /year 0.57 – 0.60 0.35 0.30 Share register Top 20 holders~66% May- Jun- Jul-13
Slide 4: Investment highlights
For personal use only High margin, strong cash- 500,000+ barrels pa oil with netback of A$97/bbl1 after costs from Cooper Basin 5th largest onshore oil producer in Australia generating oil production Growing Indonesian oil production Strong balance sheet and Cash and financial assets of $79.
Slide 5: Leveraging strengths for TSR
For personal use only Total Shareholder Return and Health Safety Environment Community Strategy • High margin oil • Fundamentals focus: market, technical, cost & commercial • Gas portfolio • Leverage and grow strengths People Funding Assets • Extensive knowledge • Strong balance sheet • Cooper Basin
Slide 6: On track for record earnings
For personal use only $ million unless otherwise indicated H1 14 H1 13 Production MMbbl 0.30 0.21 ▲ + 41% Sales volume MMbbl 0.29 0.21 ▲ + 37% Sales revenue 37.0 23.4 ▲ + 58% Net profit after tax 13.6 4.6 ▲ + 198 % Cash flow from operations 24.2 2.1 ▲ +1,034% • Record half-year profit driven by incr
Slide 7: Sustained and ongoing growth
For personal use only 2P Reserves Production Year to date production (MMbbl) MMbbl kbbl nine months to March 3.0 0.9 41 0.8 2P Reserves 0.7 14 2.0 0.6 0.5 Indonesia 0.4 Production 415 Cooper Basin 1.0 0.3 324 0.2 0.1 0.0 0.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 FY13 FY14 est* • Rec
Slide 8: Asset locations and activities
For personal use only Cooper Basin Oil • Oil production • Development & appraisal • Exploration Otway Gas • Exploration Gippsland Gas & Oil • Development • Appraisal & exploration Indonesia (onshore Sumatra) • Oil production, development and appraisal • Oil & gas exploration Tunisia (being divested)
Slide 9: Basin focussed strategy
For personal use only Production: ~0.6 MMbbl pa Market, cost & value focused Basin focussed strategy Cash & financial assets $80 mill BMG Project, Gippsland Production growth High margin & cash generation Finance facilities $40 mill Low risk value-add Otway Basin Strategy driven acquisitions Cooper
Slide 10: Valuable production + high success rates
For personal use only • Oil production and exploration - current approximately 1,500 bopd (net) • Exploration and development continues to add reserves - Cooper Energy Cooper Basin cumulative exploration success rate of 33% from FY03 – FY13 - new opportunities such as Patchawarra oil in PEL 93 • Ext
Slide 11: Market opportunities
For personal use only PJ 800 Forecast east cost domestic demand Contracted • Supply opportunity incorporated into COE 700 supply from: strategy from 2012 600 Surat-Bowen • Built market understanding; buyer 500 relationships; cost curve positions; and Bass development timelines 400 New supply contrac
Slide 12: Building a competitive supply portfolio
For personal use only Gippsland Basin: Eastern Australia’s largest gas source: • BMG Project: 65% interest & Operator • Hold 22.9% interest in Bass Strait Oil Company (BAS) Otway Basin: ideally located • Built acreage position through acquisition and trades • Position covers most of Casterton Format
Slide 13: Conventional gas close to market
For personal use only 65% interest holder and Operator of BMG gas and liquids project • Existing wells and gas-gathering infrastructure • Economic enhancement options through adjacent fields & infrastructure • To be included in year-end review of resources and reserves Developing Business Case for o
Slide 14: Proven gas province, close to market
For personal use only • Strong position across Penola Trough • Proven basin for conventional plays • Close to markets and infrastructure • Jurassic source rocks are gas prone with liquids potential • 2 deep (approx 4,000m) wells from January 2014 • Jolly-1: reinforced Casterton Formation potential a
Slide 15: High potential, proven prospectivity
For personal use only • Prolific hydrocarbon region • 285 discoveries - 3 billion bbl oil & 25 TCF gas • Not rigorously explored with 3D • Emerging Coal Bed Methane (CBM) & shale plays • US$8 - 10/GJ gas prices & market access • Existing infrastructure • Fit with COE skill set High potential, proven
Slide 16: Production and high value exploration
For personal use only Sukananti KSO (COE 55%) • Currently ~300 bopd (100% basis) • Multiple low risk development opportunities • 2 workovers plus development drilling planned from mid-2014 • Targeting production growth • Contractor share: oil 15%: gas 20%1 Sumbagsel PSC (COE 100%) • Shallow oil targ
Slide 17: Realise value from sale to natural owner
For personal use only • 3 permits covering 12,600 km2 • Hammamet West oil discovery - gross contingent resource estimated to be 12.6 MMboe (1C) to 110.4 MMboe (3C)1 - oil development opportunity - to be tested further by Hammamet West-3 ST- 2 in 2015 • Multiple prospects Divestment plan • Data room
Slide 18: Step changes in production anticipated
For personal use only Net Production mmboe • Sustain and grow existing production and cashflow Exploration: • Transformational impact from gas strategy - Indonesia, Otway, Cooper Basin Acquisitions – especially BMG development • Exploration in Cooper Basin, Otway Basin and Indonesia offer further up
Slide 19: Performing strongly
For personal use only • FY14 Production guidance upgraded to 575,000 – 600,000 barrels of oil, up 18% - 22% on FY13 • Record financial results forecast • FY14 Reserves and Resources to include significant additions for Gippsland and Hammamet West Plus numerous value-adding catalysts in the near term
Slide 20: Appendices
For personal use only Appendices
Slide 21: Reserves and contingent resources
For personal use only Reserves1 MMbbl as at 30 June 2013 1P 2P 3P • Reserves and resources updated annually as Cooper Basin 0.95 1.80 2.89 at 30 June 2014 Indonesia 0.06 0.35 0.64 • Resources as at 2014 to include additions Total 1.02 2.16 3.53 for: – Tunisia: 11 MMboe 2C resource announced April 20
Slide 22: Annual gas prices
For personal use only Annual gas prices ($/GJ, $95 oil, 2013$) 14 12 Sydney 10 Adelaide 8 Melbourne Gladstone 6 Brisbane 4 2 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Source: EnergyQuest
Slide 23: Gas play considerations
For personal use only Shale • Liquids content • Inerts content e.g. CO2, N2 • Size/economy of scale CSG • Community & approvals Tight conventional • Access to infrastructure Conventional • Distance/cost to market
Slide 24: Cooper Basin exploration
For personal use only • 3 wells planned before end of FY14 • Seismic interpretation of the Irus and Caseolus 3D ongoing to add to drilling portfolio • Seismic reprocessing and inversion underway to address existing Namur play and emerging Birkhead Channel play • Drilling activity levels in FY15 simi
Slide 25: Worrior oil field
For personal use only • Worrior-8 flowed 670 barrels of oil per day with 0.7 million standard cubic feet of gas in 2013 • Worrior-10 intersected 4.5m net oil pay Patchawarra Depth Map (5m) • Reserve potential under evaluation • Plan to drill further appraisal wells in FY15 Worrior-10 Pando-1 Worrior
Slide 26: Otway Basin cross section
For personal use only South Bungaloo-1 Sawpit-2 North Salamander-1 Sawpit-1 Jolly-1 Dilwyn Formation 500 metres Aquifer Eumeralla Formation 2000 metres Laira Formation 4000 metres Pretty Hill Formation Subsurface fault Casterton Shale Casterton Shale Basement Not to Scale Casterton Formation gas mat
Slide 27: Production, exploration and development
For personal use only • First half production up from 54 bopd to 158 bopd (COE share) due to successful workover initiative • 2 workovers planned for second half FY14 • Development/appraisal drilling planned from mid 2014 • Targeting further production growth Production, exploration and development
Slide 28: Sumbagsel PSC
For personal use only • COE awarded permit April 2011 for a 6 year initial exploration term • Acquired 257 km of 2D seismic • Key play types are structural and carbonate reefs • Typical prospect sizes 5-10 MMbbl oil • CBM potential • Forward plan ‒ complete new seismic interpretation ‒ update prospe
Slide 29: Merangin III PSC
For personal use only • COE awarded permit May 2013 for a 6 year exploration initial term • Key play types are structural and carbonate reefs • Shallow oil prospect potential 5-10MMbbl • Deep gas prospect potential 100 to > 500Bcf • CBM potential • Forward plan ‒ complete new seismic interpretation
Slide 30: Hammamet West contingent resource estimates
For personal use only 1C 2C 3C Gross Contingent Resource Estimates (P90) (P50) (P10) Oil MMbbl 11.6 34.5 99.8 Gas2 Bcf 5.3 17.9 59.7 Total Mmboe3 12.6 37.7 110.4 Net 4 Contingent Resource Estimates for Cooper Energy Oil MMbbl 3.5 10.4 29.9 Gas2 Bcf 1.6 5.4 17.9 Total MMboe 3.8 11.3 33.1 1Gross: Cont
Slide 31: Notes
Notes ENERGY ASX Spotlight 27 & 29 May 2014 > 3 COOPER Ss 31
Slide 32: For personal use only
For personal use only