Australis Oil & Gas Ltd. · ASX:ATS
Australis Oil & Gas — Investor Presentation (July 2018)
31 slides from Australis Oil & Gas's investor presentation, Jul 16, 2018
Slide 1: Large undeveloped oil position provides the platform for significant value generation
For personal use only Large undeveloped oil position provides the platform for significant value generation Investor Presentation July 2018
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer For personal use only This presentation has been prepared by Australis Oil & Gas Limited ACN 609 262 937 (ASX: ATS) (Australis). Summary of information: This presentation contains general and background information about Australis’ activities current as at the date of
Slide 3: Australis Oil & Gas Overview
For personal use only Australis Oil & Gas Overview Tuscaloosa Marine Shale (TMS) Portugal Appendix
Slide 4: 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 5: Corporate Overview – Australis Oil & Gas
Corporate Overview – Australis Oil & Gas For personal use only Australis has existing reserves, production and revenue, and a strong institutionally supported register with significant capital contribution from Board & Management Founded in 2014 by the founders & key management of Capital Structur
Slide 6: Tuscaloosa Marine Shale (TMS)
For personal use only Australis Oil & Gas Overview Tuscaloosa Marine Shale (TMS) Portugal Appendix
Slide 7: 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 8: Australis TMS Well Performance
Australis TMS Well Performance For personal use only The last 15 wells drilled within Australis’ core acreage demonstrate significantly higher average productivity than the average of other TMS wells drilled in Mississippi Individual 24 Month Cumulative Production Per Well – TMS Mississippi4,5 Austr
Slide 9: TMS Core Type Curve
TMS Core Type Curve For personal use only ATS type curve history matched to production from the most recent 15 Mississippi ECA wells4 Total production per well initial 24 months (Mbbls) Production profiles (see pages 25-27 for full data set and analysis) 40,000 Produced volume (bbls) Lawson 25-13HA)
Slide 10: 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 11: 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 12: 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$80 million (NPV10) 1P Reserves 29 million bbls 2
Slide 13: Single Well Economics – NPV Sensitivities
Single Well Economics – NPV Sensitivities The TMS Core is highly profitable at current oil prices For personal use only Upside value through realistic productivity improvements against the 2014/15 average of all wells8 Single Well Economics and Sensitivities – Pre-tax NPV10 (US$ in millions) D&C $11
Slide 14: Single Well Economics – IRR Sensitivities
Single Well Economics – IRR Sensitivities Attractive return profile with additional upside through well capex reductions and improved For personal use only productivity Single Well Economics and Sensitivities – Pre-tax IRR D&C $11 mm/well D&C $10 mm well D&C $9 mm/well 117% 92% 84% 74% 84% 65% 66% 5
Slide 15: 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 A re-balancing of global demand / supply Oil Price dynamics continues to lead the recovery in oil price projections Continued refine
Slide 16: Initial Drilling Program
Initial Drilling Program For personal use only Australis to commence an initial program of 10 wells in the second half of 2018 Initial Well Locations – Likely First 4 Wells Utilizing existing capital and the Macquarie facility, Australis is funded for a 10-well program in the TMS core The planne
Slide 17: Capital Resources
Capital Resources For personal use only Existing cash and recent financing facility gives Australis access in excess of US$100 million for the initial drilling program 1 Cash at Bank of US$45 million Cash position as at 1 April 2018 Raised US$31 million through a well-supported private placement
Slide 18: Austin Chalk Trend
Austin Chalk Trend For personal use only Following recent EOG well results active trend to South West targeting Austin Chalk Austin Chalk Trend EOG drilled the Eagles Ranch 14H-1 well during Q3 2017 Public data indicates a liquids rich production Well performance on par with Australis TMS type
Slide 19: Portugal
For personal use only Australis Oil & Gas Overview Tuscaloosa Marine Shale (TMS) Portugal Appendix
Slide 20: Portugal Concessions Overview
Portugal Concessions Overview For personal use only Australis owns two concessions onshore Portugal with significant development potential Asset Highlights Asset Location Significant Gas Large in-place discovered and tested gas Resource accumulation with 2C resources of 458 Bcf2 Limited explorat
Slide 21: Portugal Prospectivity & Volumetrics
Portugal Prospectivity & Volumetrics For personal use only Appraisal of a gas discovery with multiple nearby prospects and leads with a significant resource base Proposed Work Program Batalha Gas Discovery Batalha Concession Prospects Drill and test the gas discovery with a vertical well Drill a
Slide 22: Portugal Concessions Status
Portugal Concessions Status For personal use only Australis is working with Portuguese Authorities to achieve the necessary regulatory approvals to commence exploration and appraisal activity Work Program to Date Australis has completed a number of detailed subsurface engineering studies to review
Slide 23: Appendix
For personal use only Australis Oil & Gas Overview Tuscaloosa Marine Shale (TMS) Portugal Appendix
Slide 24: Directors & Management
Directors & Management Demonstrated track record in oil & gas For personal use only Jon Stewart – Non-Executive 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 o
Slide 25: 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 26: 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 27: 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 28: Reserves and Resources Update
Reserves and Resources Update For personal use only Maiden undeveloped reserve assessment1 As an ASX participant Australis reports to the Net Oil Reserve Categories SPE PRMS. This requires that undeveloped (MMbbls) reserves are assessed within a 5 year Proved Developed Producing 3.9 development ti
Slide 29: Option Terms Summary
Option Terms Summary For personal use only Cash payable on 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 30: 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 31: Glossary
Glossary For personal use only Unit Measure Unit Measure 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
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