High Peak Royalties Limited · ASX:HPR
High Peak Royalties — Investor Presentation (November 2018)
15 slides from High Peak Royalties's investor presentation, Nov 20, 2018
Slide 1: Investor Presentation November 2018
Investor Presentation November 2018
Slide 2: Disclaimer
Disclaimer The material in this presentation (material) is not and does not constitute an offer, invitation or recommendation to subscribe for, or purchase any security in High Peak Royalties Limited (HPR) nor does it form the basis of any contract or commitment. HPR makes no representation or warra
Slide 3: Corporate Overview
Corporate Overview Capital Structure – HPR.ASX Share Price Since January 2017 7.00 As at November 6.00 Cents per share 2018 5.00 4.00 Ordinary Shares on Issue 186m 3.00 2.00 Market Capitalisation at $0.06/share $11.1m 1.00 0.00 Cash Balance >$2.3m Royalco Resources stake (ASX: RCO) $1.1m Board Andy
Slide 4: Why Royalties?
Why Royalties? • Royalties provide a share (%) of the revenue • No direct exposure to costs • Registered on land title • Can be long life: – For example with a production licence • Can have significant option value: – Exploration licences – Development adjacent to or below production
Slide 5: Acquisition of Planet Gas royalties in United States
Acquisition of Planet Gas royalties in United States • Acquisition of Planet Gas USA Inc as announced to the market on 15 October 2018 – completion is due December 2018 • Revenues from 1 October 2018 due to HPR • Key terms of the acquisition, subject to conditions precedent: • 3% royalty on properti
Slide 6: Existing HPR Royalty Portfolio covering Australia’s Major Basins
Existing HPR Royalty Portfolio covering Australia’s Major Basins Cooper Eromanga Basin Santos Browse Basin Beach Energy Conoco Phillips PetroChina Bowen Basin Karoon Gas Origin Energy Origin Energy Conoco Phillips Sinopec North Carnarvon Basin Quadrant Energy Karoon Gas Surat Basin Shell QGC Tokyo G
Slide 7: Queensland Coal Seam Gas and Deep Gas Potential
Queensland Coal Seam Gas and Deep Gas Potential • Origin Energy / APLNG pays Main Gas Pipeline to HPR 2.25% royalty on Peat Gladstone gas field LNG Plants • Capex increased to $16.8m due to drilling of South Burunga-2 (“SB2”) and preparation for Peat 3D seismic survey noted in October Origin Energy
Slide 8: Unlocking the Amadeus – Dukas
Unlocking the Amadeus – Dukas • Dukas is the largest onshore target (520 km2 closure) in Australia • Santos to drill early 2019 • 2.4 tcf gas and 493 bcf Helium • Helium has very high value (>10 x gas pricing)
Slide 9: Unlocking the Amadeus – Northern Gas Pipeline
Unlocking the Amadeus – Northern Gas Pipeline (NGP) a catalyst for drilling 1.0% Overriding Royalty • NGP a catalyst to stimulate additional drilling Operators- Santos, Central Petroleum and in the Amadeus Basin. Jemena looking to Mosman Oil and Gas upgrade from 90 Tj to 700 Tj/day after NT lifted t
Slide 10: Bass Strait – Longtom
Bass Strait – Longtom • SGH Energy / Seven Group Holdings 0.3% Overriding Royalty Interest have flagged that the Longtom 3 and Operated by SGH Energy (Seven Group Holdings) Longtom 4 production wells are ready for production. Additional potential from Longtom 5 which is “drill ready” • APA Group exp
Slide 11: Multiple oil royalties provide additional optionality
Multiple oil royalties provide additional optionality • US royalties over wells 3.6/4.0% Net Profit Revenue Interest in the East Texas, Operated by Santos Permian and Texas Gulf Coast Basins • Tintaburra (ATP 299) Net Profit royalty is highly leveraged to oil price • Successful drilling campaign und
Slide 12: HPR Post Completion of USA Royalty Acquisitions
HPR Post Completion of USA Royalty Acquisitions • Revenue generation from multiple royalties • On completion of Planet Gas acquisition • US $15m facility with Macquarie Bank • Additional cash flow • Potential upside from near term exploration • Deep well being drilled by Origin in Qld • Dukas well t
Slide 13: Opportunity
Opportunity • Fundamental benefits of a royalty company = no direct exposure to capital or operating expenditure • Recently announced acquisition of Planet Gas Inc shows High Peak to be an active market participant • Survived the oil price downturn with a strong balance sheet (cash and shares) • Unr
Slide 14: HPR Favourably Positioned Relative to Other ASX listed Royalty Vehicles
High Peak Favourably Positioned Relative to Other ASX listed Royalty Vehicles Fitzroy River (ASX:FZR) Royalco (ASX:RCO) High Peak (ASX.HPR) Mkt Cap $17.7m $11.3m $11.1m Net Cash + Liquid Investments $7.6m $2.1m $3.4m Enterprise Value $10.1m $9.2m $11.7m Key Commodity Exposure Oil & Gas Oil & Gas Oil
Slide 15: Summary of Royalty Interests Post Acquisition
Summary of Royalty Interests Post Acquisition* Project / Property Royalty Operator / State Location Production / Near Term Production Interest Owner Peat Gas Field (PL 101) QLD Onshore, Bowen Basin 2.10% Origin Longtom Gas Condensate Field (VIC L29) VIC Offshore, Gippsland Basin 0.30% SGH Energy Tin
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