Australian Oil Company Limited · ASX:AOK
Australian Oil — Good Oil Conference 2015
19 slides from Australian Oil's conference presentation, Sep 3, 2015
Slide 1: The Conventional Gas Play Energizing California
Investor Presentation – Good Oil Conference Fremantle 2015 Gary Jeffery Managing Director The Conventional Gas Play Energizing California Australian Oil Company Limited I Investor Presentation 1
Slide 2: Value proposition
Value proposition • AOC is an producer, explorer and developer of conventional gas assets onshore California: o Production: 55% WI in 8 conventional gas wells supplying California’s gas market o Exploration/appraisal: Two multi-Tcf conventional gas plays in the proven 11 Tcf Sacramento Basin • Calif
Slide 3: Gas on the rise: Oil and gas price disconnect
Gas on the rise: Oil and gas price disconnect OPEC announced Gas prices firming no oil price support as oil prices capitulate US Prices on the graph are per mcfe using a ratio to equate price per barrel of oil to price per mcfe on 1 October 2015; data from EIA and NGI Australian Oil Company Limited
Slide 4: A total focus on California
A total focus on California 2.5 Tcf per year California gas demand • California imports 90%+ of gas – the clean fossil fuel of choice Dempsey Conventional Gas Project • Average 7.0 billion cubic feet (BCF) gas a day consumed (Appraisal / Exploration stage) Alvares Conventional Gas Project • At peak,
Slide 5: Asset overview
Asset overview Producing Assets – Gas Sacramento Basin Dempsey Conventional Gas Project: AOC 55% Rancho - Capay Gas Field 24,198 mcf gross June quarter 2015 Alvares Conventional Gas Project: AOC 40% (AOC 55% WI in 5 wells) Los Medanos Gas Field 17,058 mcf gross June quarter 2015 Rancho-Capay Gas Fie
Slide 6: Strategy for growth
Strategy for growth 1. Acquire new conventional gas production in California now to increase revenue: • Assessing single assets, fractional ownership, and asset packages • Selective approach to acquisitions: yield and future liabilities key considerations 2. Sustainable exploration and project devel
Slide 7: Producing assets: Rancho Capay and Los Medanos gas fields
Producing assets: Rancho Capay and Los Medanos gas fields Revenue generated from producing wells in conventional gas fields • Revenue of circa US$100,000 per annum (net to AOC) Rancho Capay Gas Production AOC 55% • 55% Working Interest (WI) in Sacramento Basin wells • Five wells in Rancho Capay gas
Slide 8: Producing assets: Rancho Capay and Los Medanos gas fields
Producing assets: Rancho Capay and Los Medanos gas fields Revenue generated from producing wells in conventional gas fields • Infrastructure in place: a critical differentiator • Metering stations and other associated infrastructure present on both fields • Ensures AOC can quickly bring new producti
Slide 9: Exploration: Dempsey Prospect - 1+ Tcf gas
Exploration: Dempsey Prospect - 1+ Tcf gas Low-cost leverage to strong Californian gas demand Appraisal and Exploration Well • Multiple (7 mapped) independent Conventional Sandstone Reservoirs reduces risk • Appraisal component for upper 3 reservoirs • Drilling scheduled H2 2015 • Located within a g
Slide 10: Exploration: Dempsey Prospect - 1+ Tcf gas
Exploration: Dempsey Prospect - 1+ Tcf gas Multi-target conventional appraisal and exploration project under AOC gas production • Independent Targets ranging from 1+ Bcf to 350+ Bcf (0.35 Tcf) • Total (100%) un-risked recoverable prospective resource* on a best estimate basis: 1+ Tcf ( > 167 million
Slide 11: Exploration: Dempsey Prospect - 1+ Tcf gas
Exploration: Dempsey Prospect - 1+ Tcf gas Schematic Cross Section illustrating 7 Conventional Reservoir Targets Dempsey Prospect Validation • Working petroleum systems in under-explored parts of the Sacramento Basin. • Supporting evidence includes reservoirs, seals, structuring, gas source and timi
Slide 12: Appraisal: Alvares Gas Project - 2.4+ Tcf gas
Appraisal: Alvares Gas Project - 2.4+ Tcf gas Appraisal of a conventional sandstone reservoir, gas discovery • 40% Working Interest in onshore Alvares Gas discovery drilled in 1982 when oil was the only target • >1,500 metres of gas shows from 2,500 metres depth with pipeline quality gas flowing to
Slide 13: Appraisal: Alvares #1 well summary
Appraisal: Alvares Gas Project – Alvares #1 well summary Alvares Prospect Validation • Working petroleum Wet sands systems in under-explored outside of parts of the Sacramento closure Basin. (= Dempsey • Supporting evidence Prospect includes reservoirs, seals, Reservoirs) structuring, gas source and
Slide 14: AOC has multiple growth options
AOC has multiple growth options Option 4 Acquire more high-yielding Option 3 conventional gas production in California Immediate revenue generating Secure Dempsey farm-out partner / JV Acquire more high-yielding Drill Dempsey conventional gas production Increase strategic land holding Op
Slide 15: In Summary
In Summary “Many have heard me speak of California as the land that time forgot …….. This provides ….tremendous opportunity…..” Todd Stevens CEO California Resources Corp (NYSE: CRC) August 7, 2015 • AOC to continue acquiring high-yielding assets to establish larger revenue base – a selective approa
Slide 16: AOC's Sacramento Gas Company
AOC’s Sacramento Gas Company “Energizing California Byte by Bit” Australian Oil Company Limited I Investor Presentation 16
Slide 17: Corporate snapshot
Corporate snapshot Corporate Snapshot Major Shareholders ASX Code: AOC Board and Management 9.6% Cash (as at 30 June 2015): $600,000 HSBC Custody Nominees 7.7% (Australia) Limited Market Cap $4m (@$0.035/share): Nefco Nominees Pty Ltd 4.9% 52 week high ($/share): $0.21 Pemberly Group Pty Ltd 3.1% Ta
Slide 18: Contact information
Contact information Gary Jeffery Managing Director Australian Oil Company Ltd Ph: +61 8 9388 2654 Email: gary.jeffery@aoc-email.com Registered Office Level 2, 210 Bagot Road Subiaco, WA, 6008, Australia US Office 17822 East 17th Street, Suite 408 Tustin, California 92780 USA Twitter: @AusOilCompany
Slide 19: Cautionary note
Cautionary note This document contains forward looking statements that are subject to risk factors associated with the oil and gas industry. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by many variables which could cause actual results