Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — H1 FY2015 Earnings Presentation
34 slides from Amplitude Energy's earnings presentation, Feb 16, 2015
Slide 1: Bungaloo-1, Otway Basin
For personal use only Bungaloo-1, Otway Basin
Slide 2: Webcast and conference call details
For personal use only Webcast: http://event.on24.com/r.htm?e=937537&s=1&k=D1CDC76EC6C5CC0372C19651B0F32E4A Conference call: Conference ID number: 8138 1786 Australia: Toll free: 1800 123 296 International dial- in: Toll: + 61 2 8038 5221 - (can be used if dialing from international location) Toll fr
Slide 3: 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 4: Substantial oil price decline had a significant impact
For personal use only Substantial oil price decline had a significant impact. 1. First Half results include lower sales revenue, impact of impairments and expenditure to acquire and develop gas resources – all producing operations are cash positive at current oil prices. 2. Gas strategy implementati
Slide 5: First half highlights
For personal use only • Revenue of $23.0 million, down 38% on lower oil prices and volumes • Significant non-operating items of $(58.9) million, mainly impairments to Tunisia and listed investments flowing from market conditions • Statutory net loss after tax $(58.0) million vs H1 14 profit of $13.6
Slide 6: Half year results summary
For personal use only $ million unless otherwise indicated H1 15 H1 14 Production MMbbl 0.25 0.30 ▼ - 17% Sales volume MMbbl 0.24 0.29 ▼ - 17% Oil price average A$/bbl 97.43 126.50 ▼ - 23% Sales revenue 23.0 37.0 ▼ - 38% Other revenue 1.1 0.7 ▲ 57% Net profit after tax (58.0) 13.6 ▼ - 526% Underlyin
Slide 7: Reconciliation of net profit to underlying profit
For personal use only $ million 6 months ending 31 December: 2014 2013 Net profit (loss) after tax (58.0) 13.6 Adjusted for: Impairment of exploration assets held for sale 47.5 -- Impairment of oil properties 6.1 - Impairment of available for sale financial assets 6.1 - Accounting gain on purchase (
Slide 8: Underlying net profit after tax movement
For personal use only Underlying $ million net profit after tax $ million 13.6 -8.5 -5.5 0.9 +3.8 -1.1 -1.0 -0.6 -0.8 +1.0 H1 14 Sales Sales Amortisation Accretion Exploration Admin & Royalties Tax expense H1 15 revenue - revenue - w/o other price volume 1 8
Slide 9: Oil segment underlying result
For personal use only H1 15 $ million Oil Sales revenue 23.0 Gross profit 9.6 Exploration expense 1.2 Admin and other 2.5 Underlying EBITDA 10.1 Underlying EBITDA/Sales Revenue 44.0% Underlying PBT 5.7 Income tax (1.7) Oil Underlying NPAT 4.0 Gas and Corporate Underlying NPAT & consolidation (3.1) C
Slide 10: Cash and investments movement
For personal use only $ million Total cash & investments = $75.1m 26.0 Investments Total cash & (at fair value) 8.3 6.0 investments 5.1 = $53.1m 49.1 15.71 0.8 47.1 10.6 Investments 0 (at fair value) 0.9 37.4 Cash & deposits Cash & Operating Investing, deposits $-2.0m Financing & Other $-9.7m Jun-14
Slide 11: Oil production and gas development
For personal use only Callawonga Orbost gas plant Production ~500,000 bbls pa Gippsland Basin gas & liquids resources Total Operating Cost1: Sole gas field2 in pre-FEED Cooper Basin A$35/bbl, Indo A$50 bbl BMG business case development Cooper Basin 87%, Indonesia 13% Working with buyers on gas contr
Slide 12: Half year production
For personal use only Half year production Half year production by region '000 bbl six months to 31 December ‘000 bbl six months to 31 December 29 301 31 10 246 Indonesia 217 225 213 Cooper Basin 271 203 215 2010 2011 2012 2013 2014 2012 2013 2014 • Cooper Basin: Rincon commissioned, reduced • Consi
Slide 13: Cooper Basin update
For personal use only • H1 15 oil production of 215 kbbls, total operating cost of $36/bbl including transport and royalties • Worrior long term production test Patchawarra Formation oil pool discovery underway • Completion of reprocessing of three 3D seismic surveys in PRL 85 -104 (PEL 92) to ident
Slide 14: Indonesia update
For personal use only • First Half production up from 29.1 to 31.0 kbbls • H1 15 total operating cost of A$54/bbl including transport • Tangai-3 successful workover increased production and 2 new horizons successfully tested • Bunian-3, now drilling and expected to test in Feb 15 • Farm-out of Sumba
Slide 15: East coast gas demand and supply
For personal use only PJ 800 Forecast east coast domestic demand Contracted 700 supply from: 600 Surat-Bowen 500 New supply contract opportunity Bass 400 Otway 300 Gippsland 200 100 Cooper 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Source: EnergyQuest
Slide 16: Gas strategy progress
For personal use only Sole gas field & Orbost gas plant • Acquired 50% of VIC /RL3 incl. Sole gas field1 • Acquired 50% of Orbost gas plant1 • Expect completion April 2015 BMG gas and liquids field • Registration of transfer of 65% interest and operatorship • Added 2C Contingent Resources of 18 mill
Slide 17: Orbost gas plant as Gippsland gas hub
Orbost (Patricia-Baleen) Gas Plant Becoming a hub for Gippsland gas supply to Eastern Australia BMG (65% and operator) Sole (50%) j Longtom (Nexus) Patricia-Baleen (Santos) | Orbost Gas Hub 60%) ew S. PIPELINE S |) Cooper Energy interests . ) BAS licences (COE 22.9%) + &® Cas field @® 0 field — Exis
Slide 18: Gas project development timeline
For personal use only 2015 2016 2017 M J S D M J S D M J S D Sole Project development Pre-FEED FEED Construct for late 2018/early 2019 start- up Transaction Complete FID Contingent Resource added 2P Reserves-Sole BMG Project development Business Case Pre-FEED FEED Appraisal drilling Confirm BMG reso
Slide 19: FY15 guidance and outlook
For personal use only 0.30 Outlook Exploration Development 0.59 0.52 0.50 FY15 H2 15 FY 15 H2 15 FY 15 H2 15 0.49 to 0.56 Australia 0.41 Cooper 7 3 2 1 5 2 Otway 1 - 1 - - - 0.25 Gippsland 8 7 3 2 5 5 Indonesia 8 4 2 - 5 4 Tunisia 2 1 2 1 - - FY11 FY12 FY13 FY14 FY15G Total 26 16 11 5 15 11 • Guidan
Slide 20: Activity schedule by permit
For personal use only Location License Operator March Qtr June Qtr 2-3 development wells and 2 PEL 92 Beach Repro. exploration wells Cooper PEL 90, 100,110 Senex AVO/Inversion 3D seismic processing ongoing PPL 207 Senex 1 Worrior development/appraisal well PEL 495 /4 94, Jolly-1 and Bungaloo-1 studi
Slide 21: Summary
For personal use only • FY15 First Half results show impact of lower revenue and impairments and increased expenditure on gas • Oil production costs are A$36/bbl1, all operations are cash positive at current oil prices • Production expected to increase in Second Half due to appraisal and development
Slide 22: Appendices
For personal use only • Guidance revision analysis • Developing a gas business around a multi-basin portfolio • Sole gas field • BMG gas and liquids resource • Orbost Gas Plant • Otway basin • Tunisia • Reserves and resources • Notes on reserves and resources • Abbreviations • Contact details 22
Slide 23: FY15 capex guidance
For personal use only FY15 Capex guidance by type $ million Guidance Exploration Development 24 Exploration FY15 FY15 FY15 FY15 FY15 FY15 original revised original revised original revised 11 Australia Development 16 15 Cooper 17 7 7 2 10 5 Original Revised Otway 1 1 1 1 - - Gippsland 6 8 6 3 6 5 FY
Slide 24: Developing a gas business around a multi-basin portfolio
For personal use only Market • Market-driven approach • Building customer relationships • Pipeline transport expertise Cooper Basin • Existing source of supply • Extensive infrastructure Gippsland Basin Otway Basin • Ideally located: close to markets and pipelines • Eastern Australia’s largest gas s
Slide 25: Sole gas field
For personal use only • Agreement to acquire 50% of VIC RL/3 and Orbost gas plant • Sole gas field to FEED on completion for development to supply gas from late 2018/early 2019 • Anticipate addition of approximately 100 PJ Contingent Resources (2C) on completion (200 PJ+ in gross terms) • Acquisitio
Slide 26: BMG gas and liquids resource
For personal use only • Acquired 65% interest and operatorship at low cost – $1 million initial payment and – $5 million conditional on hydrocarbon production • Sub-sea infrastructure in place from previous life as oil project with gas injection • Pre-acquisition review indicates commercial gas deve
Slide 27: Orbost Gas Plant
For personal use only • Acquiring 50% of Orbost (Patricia-Baleen) gas plant • Connected to Eastern Australian gas pipeline • Currently contracted to process gas from Longtom to end 2018 (COE not participating in current Longtom processing) • Capacity of approximately 90 TJ/day • Plant modifications
Slide 28: Otway Basin
For personal use only • Extensive acreage position across Penola Trough • Jolly-1 and Bungaloo-1 deep wells drilled FY14 – confirmed location of Casterton Formation unconventional play – identified deep conventional gas play – shale gas potential reinforced • Analysis of core and other data has conf
Slide 29: Tunisia
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 • Multiple prospects Divestment plan • Portfolio to be divested as peripheral to focus on Australia and I
Slide 30: Reserves and resources
For personal use only Proved & Probable (2P) reserves Contingent Resources (2C) MMbbl MMboe 2.16 0.59 17.0 0.45 2.01 Tunisia 18.0 Gippsland Basin Cooper Basin 5.7 30-Jun-13 0 Production 0 Revisions 30-Jun-14 30-Jun-13 30-Jun-14 Reserves Contingent Resources2 MMbbl at 30 June 2014 1P 2P 3P MMboe at 3
Slide 31: Notes on reserves and resources
Reserves include Cooper Energy’s share of future crude fuel usage in the Cooper Basin. The estimated fuel usage is; 1P 0.02 MMbbl, 2P 0.05 For personal use only MMbbl and 3P 0.08 MMbbl. There is no produced crude oil used for fuel in Indonesia. Categories are aggregated by arithmetic summation. Basi
Slide 32: Abbreviations
bbls barrels of oil For personal use only boe barrel of oil equivalent bopd barrel of oil per day EBITDA earnings before interest, tax, depreciation and amortisation kbbls thousand barrels LTIFR Lost Time Injury Frequency Rate. Lost Time Incidents per million man hours worked LTI Lost Time Injury MM
Slide 33: Contact details
For personal use only Website: cooperenergy.com.au Investor relations: Don Murchland +61 439 300932 donm@cooperenergy.com.au Address: Cooper Energy Limited Level 10 60 Waymouth St Adelaide SA 5000 + 61 8 8100 4900 33
Slide 34: For personal use only
For personal use only