Slide 1: Presentation to ExchangeSA 2019
Presentation to ExchangeSA 2019 David Maxwell Managing Director For personal use only Ocean Monarch on location at Annie-1, Otway Basin, offshore Peterborough August 2019
Slide 2: Important Notice – Disclaimer and other information
Important Notice – Disclaimer and other information For personal use only The information in this presentation: • 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 i
Slide 3: Key messages
Key messages For personal use only 1. Cooper Energy’s performance has demonstrated its operating, technical and commercial capability – Safety – Sole gas offshore project – 5 new gas contracts – Otway offshore exploration preparation and results 2. In 2019/20 Cooper Energy expects a transformational
Slide 4: Key results since last year’s ExchangeSA conference
Key results since last year’s ExchangeSA conference Growing the business and value For personal use only 2P Reserves: up 0.5% Revenue: up 12% Market capitalisation: up 64% Share price: up 62% Proved and Probable MMboe $ million $ million $ million 0.60 75.5 973 52.4 52.7 67.5 39.1 0.37 27.4 592 0.33
Slide 5: What have we done since last year?
What have we done since last year? Cooper Basin drilling Finance redetermination For personal use only Share market Senior bank facilities reset Parsons oil field successful appraisal ASX 200 admission New gas contracts Sole Gas Project: offshore • Origin Energy (CY20) • O-I (CY20) • AGL: Sole start
Slide 6: Gas asset portfolio
Gas asset portfolio Assets acquired for competitiveness in delivered gas to south-east Australia For personal use only Otway Hub: gas production, development & exploration • Casino Henry gas production • Minerva Gas Plant* • Annie gas discovery • VIC/P44 & VIC/P76 Orbost Gas Plant exploration acreag
Slide 7: 2P gas production profile and contract portfolio
2P gas production profile and contract portfolio Transformational uplift from Sole commencement. Further upside expected from Contingent Resources and discoveries. For personal use only Gas sales profile of 2P reserves to 2030 contracted & uncontracted PJ pa Uncontracted Contracted Gas contract book
Slide 8: Sole Gas Project
Sole Gas Project Offshore workstream completed within budget and schedule. Onshore moving to completion. For personal use only Onshore project: APA Group Offshore project: Cooper Energy $3551 million offshore project: • construction completed • within budget • $250 million upgrade to Orbost Gas Plan
Slide 9: Sole Gas Project safety performance
Sole Gas Project safety performance Offshore construction completed with zero lost time injuries For personal use only • Project performance 1 June 2017 to 30 June 2019 • 561,362 hours worked • Project activities ranging from onshore pipe welding, horizontal drill shore crossing, drill, complete and
Slide 10: Gippsland Basin gas hub
Gippsland Basin gas hub Cost competitive resource, existing plant and Sole production planned for FY20 For personal use only VIC/P72: exploration Sole: production • Adjacent to producing, ex-producing • Production expected to commence December gas fields and discoveries quarter 2019 (APA advice on p
Slide 11: Otway Basin gas hub
Otway Basin gas hub Cost competitive gas, plant and pipeline infrastructure in place with exploration potential For personal use only Casino Henry: production Minerva Gas Plant • Currently owned by Minerva Joint Venture • Casino, Henry & Netherby gas fields (Cooper Energy 10%) • 50:50 JV with Mitsui
Slide 12: Minerva Gas Plant
Minerva Gas Plant Cessation of gas production from Minerva triggers acquisition of strategically located plant For personal use only • Casino Henry JV participants Cooper Energy and Mitsui E&P Australia to acquire Minerva Gas Plant • 150 TJ/day capacity, plus liquids handling capability • Connection
Slide 13: Annie gas field discovery
Annie gas field discovery Close to shore, close to pipelines. Expected access to Minerva Gas Plant For personal use only • Discovery announced 6 September 2019 • 62 metres net gas pay in high quality Waarre C primary reservoir target (same reservoir for adjacent analogue fields Minerva, Casino) • Fa
Slide 14: Cooper Basin
Cooper Basin Drilling ramping up to highest level yet in low-cost high margin oil acreage For personal use only • Drilling ramp up with PEL 92 step-out appraisal program similar to employed on Bauer field in PEL 91 – 3 exploration wells – 10 wells to appraise Callawonga, Rincon, Parson and Windmill
Slide 15: Current gas exploration & development projects
Current gas exploration & development projects Gas portfolio features numerous projects for increased production and reserves For personal use only Onshore Otway Sole • Dombey-1 drilling is underway • Commence and complete commissioning • Full production in FY20 • Explore upside in debottlenecking M
Slide 16: Event outlook
Event outlook Busy schedule for current period, transformational uplift in FY20 second half For personal use only FY20 first half FY20 second half FY21 – 22 growing & reinvesting Minerva Gas Plant acquisition to • New term gas contracts commence • Full year production and cash flow from Sole complet
Slide 17: Wrap-up
Wrap-up After a successful 12 months….. more growth and opportunity is expected For personal use only 1. Cooper Energy has completed its most demanding 12 – 24 months safely and successfully: ✓ Sole offshore completed within budget and schedule; ✓ gas contracts negotiated; and ✓ exploration success
Slide 18: Appendices
For personal use only Appendices
Slide 19: Cooper Energy Snapshot
Cooper Energy Snapshot For personal use only Key statistics* Proved & Probable Reserves 52.7 MMboe Contingent Resources (2C) 26.9 MMboe Market capitalisation $973 million Net (debt)/cash $(53.9) million Cooper Basin • Oil production & exploration Issued shares (million) 1,621.6 Onshore Otway Basin R
Slide 20: Gas market outlook
Gas market outlook Gap between local production and supply creating favourable market for south-east Australian gas For personal use only • South-east Australia is reliant on Queensland gas to meet shortfall between AEMO forecast of south-east Australian gas production, demand and supply local produ
Slide 21: Southern states gas prices: ACCC view
Southern states gas prices: ACCC view Gas price and LNG netback trend For personal use only 2020 expected prices Average monthly commodity prices offered for 2020 supply against contemporaneous expectations of 2020 LNG netback prices (southern states) Expected 2020 wholesale gas commodity prices in
Slide 22: Profile of contracted and uncontracted gas by project
Profile of contracted and uncontracted gas by project Existing reserves and resources offer growth before exploration upside For personal use only Gas sales profile by project contracted & uncontracted PJ pa Manta (subject to appraisal well and FID) 18 18 18 18 9 17 1 1 12 1 1 1 2 Plus Sole Dec 3 Ma
Slide 23: Otway Basin: Penola Trough onshore
Otway Basin: Penola Trough onshore Dombey-1 to be drilled to evaluate Pretty Hill Formation and Sawpit Sandstone potential For personal use only Dombey-1 (planned) • Spud expected September 2019 to test similar stratigraphic section as Haselgrove gas field in adjoining PPL 62 which confirmed convent
Slide 24: Further Offshore Otway drilling plans for 2021
Further Offshore Otway drilling plans for 2021 Exploration to continue. Strong encouragement from Annie, gas market and local development economics For personal use only High success rate for gas exploration • Annie success means 8 out of 9 targets drilled on gas indications from amplitude anomaly h
Slide 25: Manta gas and liquids resource
Manta gas and liquids resource Contingent Resource with exploration potential For personal use only Manta Contingent Resource1 estimate 1C 2C 3C Condensate MMbbl 2.2 3.4 5.4 Gas PJ 78 121 190 Manta unrisked Prospective Resource1 estimate Low (P90) Best (P50) High (P10) Oil MMbbl 1.0 1.5 2.3 Condensa
Slide 26: Reserves and Contingent Resources at June 2019
Reserves and Contingent Resources at 30 June 2019 1P (Proved) 2P (Proved + Probable) 3P (Proved + Probable + Possible) Reserves Unit For personal use only Cooper Otway Gippsland Total1 Cooper Otway Gippsland Total1 Cooper Otway Gippsland Total1 Developed Sales gas PJ 0 15 0 15 0 24 0 24 0 36 0 36 Oi
Slide 27: Notes on calculation of Reserves and Resources
Notes on calculation of Reserves and Resources For personal use only Notes on calculation of Reserves and Contingent Resources Cooper Energy has completed its own estimation of Reserves and Contingent Resources for its fully-operated Gippsland Basin assets, and elsewhere based on information provide
Slide 28: Senior management
Senior management For personal use only Managing Director General Manager, Development General Manager, Commercial General Manager, Projects David Maxwell Duncan Clegg & Business Development Michael Jacobsen Eddy Glavas David Maxwell has over 30 years’ Duncan Clegg has over 35 years’ experience in E
Slide 29: Senior management team
Senior management team For personal use only From left: Amelia Jalleh,, Duncan Clegg, David Maxwell, Eddie Glavas, Virginia Suttell, Iain MacDougall, Andrew Thomas, Mike Jacobsen Presentation to ExchangeSA Conference September 2019 29
Slide 30: Abbreviations
Abbreviations For personal use only $, A$ Australian dollars unless specified otherwise APA APA Group Bbl barrels of oil Boe barrel of oil equivalent EBITDA earnings before interest, tax, depreciation and amortisation FEED Front end engineering and design FID Final Investment Decision kbbl thousand
Slide 31: Notes
Notes For personal use only Presentation to ExchangeSA Conference September 2019 31