Amplitude Energy Limited · ASX:AEL
Amplitude Energy — 2016 RIU Good Oil Conference
26 slides from Amplitude Energy's conference presentation, Sep 13, 2016
Slide 1: Presentation to Good Oil Conference
Orbost gas plant, hub for the Sole Gas F Project _ COOPER Presentation to Good Oil Conference David Maxwell, Managing Director 13 September 2016
Slide 2: The information in this presentation
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 individual investment objectives or the financial situation of investors. •
Slide 3: Gas projects moved ahead; portfolio focussed; capital strengthened
Gas projects: Portfolio: Capital: moved ahead focussed on Aust. strengthened Resource upgrades for Indonesian exploration assets Oversubscribed institutional Sole and Manta gas fields sold placement Gas supply heads of Indonesian production assets Share purchase plan agreements with AGL
Slide 4: Cooper Energy is a $139 million market cap E&P company
Cooper Energy is a $139 million market cap exploration & production company with: • cash generating Cooper Basin oil production; and • an emerging gas business possessing supply contracts with blue-chip customers in eastern Australia and gas plant and resources which are cost-competitive and ideally
Slide 5: Market
Market • Market-driven approach • Building customer relationships & portfolio • Contracts with utilities & industrials Cooper Basin • Cash-generating oil production Otway Basin • Gas exploration acreage • Ideally located: close to markets and pipelines • Conventional and unconventional gas opportuni
Slide 6: Eastern Australia demand and contracted supply
Eastern Australia demand and contracted supply Net gas flow 5 September 2016 PJ AEMO Gas Bulletin board 2,500 2,000 Supply under contract from: 1,500 NGP Cooper Basin 1,000 Otway Bass Gippsland 500 Surat-Bowen Demand 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Source: http://gbb.aemo.co
Slide 7: Gas demand vs production/contract for south east Australia
Gas demand vs production/contract from existing suppliers for Forecast south east Australia gas demand and supply south east Australia balance PJ pa PJ pa 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500 50 450 400 0 350 = supply/ 300 demand balance -50 250 200 -100 150 100 -150 50 0 2016 201
Slide 8: Orbost Gas Hub
Orbost Gas Hub COE 50%, STO 50% & Operator Phase 1 Sole Gas field COE 50%, STO 50% & Operator Patricia Baleen (depleted) (STO 100%) ~2411 PJ Longtom (SVW 100%) ~2.61 MM 1 2C Contingent Resources 100% joint venture volume. Manta liquids resource of 2.6 bbl ~1061 PJ Phase 2 MM bbls refers to condensat
Slide 9: Production growth profile FY16 to FY22
FY22: FY16 FY20: Phase 2: Sole + Manta gas and 0.5 million boe Phase 1: Sole gas project liquids (subject to appraisal) over 2 million boe pa ~ 5 million boe pa Manta liquids Manta gas Sole gas Existing oil with development drilling Oil production 0.5 MMbbls Gas production 12.4 PJ Gas production 27.
Slide 10: Sole gas project development concept and cost
• Simple reservoir structure • Conventional recovery • Dry gas, pipeline spec CO2 • Simple development concept − single near horizontal subsea well for good reservoir access − dedicated pipelines and umbilicals to existing Orbost plant • H2S present, to be managed by proven technology onshore plant
Slide 11: FEED Assurance FID
September quarter December quarter FEED Mid FEED Review Regulatory Approvals Final Engineering Reports CAPEX Estimate Assurance Independent Expert Report (Subsurface & Reserves) Independent Expert Report (Review of Facilities Plan) Quality Assurance Review FID Financing Recommendation Fina
Slide 12: Foundation Heads of Agreement with AGL and O-I Australia
Indicative PJ COE sales 14 12 10 Available for 8 contract 6 AGL & O-I agreements 4 2 0 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 • Foundation Heads of Agreement for 7.6 PJ pa with AGL and O-I Australia = 61% of Cooper Energy equity gas from Sole • Gas prices increasing as availability t
Slide 13: Cooper Basin reserves, costs and netback
Cooper Basin Proved & Probable (2P) reserves Cooper Basin costs & netback MMbbl1 A$/bbl 100 1.38 0.32 80 53 0.20 1.27 Netback 60 35 Royalty 40 Transport 7 4 20 16 16 Operating 11 11 0 30-Jun-15 Production Revisions 30-Jun-16 FY15 FY16 • Production in FY16 and FY17 impacted by suspension of explorati
Slide 14: Low cost Cooper Basin oil and Sole gas project
Low cost Cooper Basin oil production & exploration Sole gas project construction complete & production commenced Sole gas project funding finalised and FID Portfolio of long and short term gas sales contracts Sole gas project construction commences Gippsland exploration upside addressed
Slide 15: Shbd
Shbd r] OOPER NERGY mm
Slide 16: Appendices
thd wr) OOPER NERGY Mm Appendices
Slide 17: Key figures
Key figures Cooper Energy is an independent Australian exploration and Shares on issue2 435.2 mill production company Shareholders2 4,816 • Cash generating Cooper Basin oil production Market capitalisation2 $139 mill • Strong balance sheet, zero debt Cash & investments at 30 June $51 mill • 227 PJ o
Slide 18: Orbost Gas Plant
Orbost Gas Plant • Existing plant connected to Eastern Gas Pipeline • Capacity 90 TJ/day • Modifications to process Sole gas • COE: 50%, STO 50% (Operator) Illustrative graphic only – actual development plan may differ Phase 3: Other Phase 2: Manta Phase 1: Sole • Exploration potential in deeper • 2
Slide 19: Gas flows from south east Australian sources vs Victorian wholesale gas price
Gas flows from south east Australian sources 2015 vs Victorian wholesale gas price 2015 vs 2016 2016 $GJ average Tj/day $45 1400 $40 1200 $35 1000 $30 800 $25 $20 600 $15 400 $10 200 $5 0 $0 Apr- Apr- May- May- Jun- Jun- Jul- Jul- Aug- Aug- Jan Feb Mar Apr May Jun Jul Aug Sep 15 16 15 16 15 16 15 16
Slide 20: Petroleum Reserves and Contingent Resources at 30 June 2016
Petroleum Reserves at 30 June 2016 (MMbbl) Category Proved (1P) Proved plus Probable (2P) Proved, Probable plus Possible (3P) Australia Indonesia Total Australia Indonesia Total Australia Indonesia Total Developed 0.62 0.50 1.12 0.98 0.93 1.91 1.70 1.39 3.08 Undeveloped 0.16 0.31 0.48 0.29 0.80 1.09
Slide 21: FY16 production guidance and expenditure
Expenditure Wells # 0.59 0.52 0.49 0.48 Total Exp. Dev. Exp. Dev. 0.47 0.41 Australia • Cooper Basin 5 2 3 1-2 2-3 0.28 • Otway Basin 1 1 - - - – 0.24 • Gippsland Basin 8 8 - - - Total 14 10 3 1-2 2-3 FY11 FY12 FY13 FY14 FY15 FY16 FY17 • FY16 production guidance 0.24 MMbbl - 0.28 MMbbl from western
Slide 22: FY17 production forecast and drilling plans
• FY17 production forecast to be 0.24 MMbbl – 0.28 MMbbl • FY17 forecast direct operating cash cost ~A$31/bbl including transport and royalties • Ongoing investment in technical effort maintained with seismic inversion studies and prospect interpretation ongoing • 3- 5 wells planned for FY17: – PEL
Slide 23: Manta development opportunity
• COE business case identified economic opportunity for Manta development A A’ • Manta gas attracting enquiries from gas buyers • Untested Golden Beach reservoirs identified within the same structure below proven gas in the Manta field • Gas resource of 106 PJ 2C Contingent and Risked Prospective Re
Slide 24: Otway Basin Jolly-1 and Bungaloo-1 well analysis
• Analysis of Jolly-1 and Bungaloo-1 well data in PEL 494 and PRL 32 has confirmed: – a deep conventional gas play in Lower Sawpit Formation – Casterton Formation unconventional shale gas play • Victorian acreage subject of application to suspend and extend due to moratorium on onshore gas productio
Slide 25: Reserve and resource calculation notes
The approach for all reserve and resource calculations is consistent with the definitions and guidelines in the Society of Petroleum Engineers (SPE) 2007 Petroleum Resources Management System (PRMS). The resource estimate methodologies incorporate a range of uncertainty relating to each of the key r
Slide 26: Glossary and abbreviations
$ Australian dollars unless specified otherwise Bbl barrels of oil boe barrel of oil equivalent bopd barrel of oil per day EBITDA earnings before interest, tax, depreciation and amortisation FEED Front end engineering and design kbbls thousand barrels LTIFR Lost Time Injury Frequency Rate. Lost Time