Australis Oil & Gas Ltd. · ASX:ATS
Australis Oil & Gas — Investor Presentation (June 2017)
33 slides from Australis Oil & Gas's investor presentation, Jun 8, 2017
Slide 1: ASX Announcement: Company Presentation Material
For Immediate Release ASX Announcement 8 June 2017 For personal use only Company Presentation Material Please find attached to this document a copy of the presentation to be used by Australis Oil & Gas Limited for roadshow presentations in coming weeks. For further information, please contact: Julie
Slide 2: Investor Presentation
For personal use only Australis Oil & Gas Limited June 2017 Investor Presentation Implementation of corporate strategy has generated a platform for significant growth Investor Presentation
Slide 3: Important Notice and Disclaimer
Important Notice and Disclaimer For personal use only This presentation has been prepared by Australis Oil & Gas Limited ACN 609 262 937 (ASX : ATS) (Australis). Summary of information: This presentation contains general and background information about Australis’ activities current as at the date o
Slide 4: Investment Highlights
Investment Highlights The recent TMS acquisition has delivered on Australis’ strategy of securing a significant inventory of oil at a compelling price For personal use only Large Operated 141,300 net acres of which 22,000 net acres are held by production All acreage in the ‘sweet spot’ of the
Slide 5: Corporate Snapshot
Corporate Snapshot Australis has a tightly held share register with Directors & Management having contributed a significant amount of funding12 For personal use only Inventory / Production Capital Structure PDP1 5 MMbbl Ordinary Shares 776.4 Options* 103.3 2C Resources1,2 183 MMboe* Fully Diluted Ca
Slide 6: Corporate History
Corporate History A successfully implemented strategy and a disciplined approach to shareholder capital For personal use only Australis formed in August 2014 following sale of Aurora Oil & Gas – it’s the same team Strategy set during oil price fall: • Secure a future inventory of oil and drillin
Slide 7: The TMS Delivers on Strategy
The TMS Delivers on Strategy TMS is one of the few remaining undeveloped US onshore resource plays For personal use only The Tuscaloosa Marine Shale (TMS) represents a very significant opportunity for Australis, arising principally due to timing and quirks of history The two acquisitions made an
Slide 8: Tuscaloosa Marine Shale
For personal use only Tuscaloosa Marine Shale Tier 1 acreage in an emerging shale province Investor Presentation 7
Slide 9: What is the TMS?
What is the TMS? The Tier 1 acreage in the TMS is comparable with other prolific shale plays in the US For personal use only TMS Location TMS depositional area of 14 million acres Same age as Eagle Ford. Cretaceous shallow marine environment, more clastic than carbonate Initially operators, ac
Slide 10: TMS Oil Productivity vs Other Major Plays
For personal use only bbl / day 100 200 300 400 500 600 700 - Company 1 TMS TC Company 2 Company 3 Company 4 Company 5 TMS Company 6 Company 7 Company 8 Company 9 Oil Production for the first 180 days(3,4) Company 10 Company 11 Company 12 Company 13 Company 14 Company 15 Company 16 Company 17 Compan
Slide 11: TMS Well Drilling Times
TMS Well Drilling Times TMS drilling times have been reduced over time as operational challenges resolved For personal use only Australis operated well drilling performance (rig mobilization to rig release) 160 First 10 wells average 72 days 140 120 Days from Spud to RR 100 Last 10 wells average 40
Slide 12: Capital Cost Profile of Early TMS Wells
Capital Cost Profile of Early TMS Wells Well costs have trended downwards over time in line with other plays For personal use only Australis conservative well cost estimate – US$10.8MM for a single well (US$1,690/ft)8 Other play participants quoted US$8.7MM9 No TMS wells have been drilled in t
Slide 13: Australis TMS Land Position
Australis TMS Land Position Australis holds a dominant and strategic land position within the TMS Core For personal use only Australis Net Acreage Australis TMS Position Australis HBP acres 22,000* Undeveloped – Permitted 40,000* Undeveloped – Non-permitted 60,000 Australis / Paloma Undeveloped acre
Slide 14: Reserves and Resources
Reserves and Resources Significant certified reserves and resource base with over 291 future net well locations For personal use only Ryder Scott Company have TMS Reserves & Resource Assessment (1 Feb 2017) prepared a report with an effective date of 1 February 20171 Reserves (Ryder Scott) MMbbl
Slide 15: Australis TMS Type Curve
Australis TMS Type Curve Conservative approach to anticipated well performance For personal use only Australis Type Curve Wells Type curves generated by history matching average well performance, no assumed improvement In Louisiana (Type Curve 1) averaged 11 closest TMS Modern Offset Wells13 I
Slide 16: TMS Productivity, Economics & Sensitivities
TMS Productivity, Economics & Sensitivities TMS Core acreage is economic at current oil prices For personal use only The TMS Core is economic at current oil prices and current single well cost estimates (US$10-11 million) without assumed improvements, batch drilling or economies that come with sca
Slide 17: Operational Update and Forward Program
Operational Update and Forward Program Following acquisition, the initial focus has been extending the lease terms of the primary acreage to beyond 2020 For personal use only Work Completed Lease Development Management Encana acquisition Maintain lease position of Prepare for initial multi wel
Slide 18: Budget & Estimated Cash Flow
Budget & Estimated Cash Flow Following the Encana acquisition, Australis generates an operating cash flow ensuring a growing cash base in the near-term For personal use only Apr - Dec 2018 2017 US$MMD US$MMD Cash – end Q1 (31 March) 11 20 Financing – A$100MM equity raising (net of costs of transacti
Slide 19: Portuguese Exploration Assets
For personal use only Portuguese Exploration Assets Large, low cost onshore acreage with minimal work commitments Investor Presentation
Slide 20: Portuguese Concessions - Overview
Portuguese Concessions - Overview Large onshore acreage position with gas development potential For personal use only Two onshore concessions (Batalha and Pombal) - Asset Location 620,000 acres or 2,510 km2 NSAI assessed 458 bcf 2C resource (net)2 Total well count ~ 175 (148 onshore). 117 had
Slide 21: Fiscal Terms and Infrastructure
Fiscal Terms and Infrastructure Favourable economics with excellent terms and minimal work commitments For personal use only Exclusive exploration period of 8 years from October 2015 with ability to extend for a further 2 years Tax provisions - Corporate tax 21% Gas prices linked to LNG – prem
Slide 22: Appendices and Additional Slides
For personal use only Appendices and Additional Slides Investor Presentation 21
Slide 23: Louisiana TMS Type Curve data
Louisiana TMS Type Curve 1 data Summary of monthly oil production data for TMS Modern Offset Wells For personal use only Well Name Denkmann Longleaf 29H Longleaf 29H Mathis 29- Mathis 29- Lawson 25- Spears 31-6H C. H. Lewis Verberne Blades 33 H Williams Average Cumulative 33-28H 1H 2H 32H 17H 13H 30
Slide 24: Single Well Louisiana TMS Type Curve
Single Well Louisiana TMS Type Curve 1 ATS type curve history matched to actual production from TMS Modern Offset Wells5 For personal use only Louisiana Type Curve 1 – Assumptions5 Cumulative Oil Production Oil EUR – 499 Mbbls Modern Offset Wells v Australis Type Curve 1 - Louisiana Gas EUR – 13
Slide 25: Louisiana TMS Type Curve
Louisiana TMS Type Curve 1 For personal use only Base Assumptions: ATS TC1 - Louisiana Production Forecast 30,000 600,000 Future Well Type Curve Target Lower TMS Louisiana 25,000 500,000 EUR Gas 0.13 bcf Oil/Condensate 499 mbbl 20,000 400,000 Cum Production (boe) NGLs 17 mbbl Production (bbl/mscf/bo
Slide 26: Mississippi TMS Type Curve data
Mississippi TMS Type Curve 2 data Summary of monthly oil production data for the most recent 15 Encana operated modern offset Mississippi wells For personal use only Lewis 7- Pintard Lyons 35H Pintard Longleaf Longleaf Mathis Mathis Lawson Ash 13H Sabine Sabine McIntosh Reese Well Name Ash 13H 2 Ave
Slide 27: Single Well TMS Mississippi Type Curve
Single Well TMS Mississippi Type Curve 2 ATS type curve history matched to production from the most recent 15 Mississippi ECA wells6 For personal use only Mississippi Type Curve 2 – Assumptions6 Cumulative Oil Production Oil EUR – 545 Mbbls Encana Modern Offset Wells v Australis Type Curve 2 - Mis
Slide 28: Mississippi TMS Type Curve
Mississippi TMS Type Curve 2 Whilst well performance cannot be guaranteed the production and opex assumptions are based on history and the capex costs are current third party estimates. For personal use only Production Forecast Base Assumptions: ATS TC2 - Mississippi 30,000 600,000 Future Well Type
Slide 29: Option Terms Summary
Option Terms Summary For personal use only Cash payable on Grant date Exercise Price (A$) Vesting Expiry Number exercise (A$) Directors, Executives & Management 13 Nov 2015 $0.25 Vested 31 Dec 2020 19,675,000 $4,918,750 13 Nov 2015 $0.30 (Series A) Vested 31 Dec 2020 27,775,000 $8,332,500 28 Apr 201
Slide 30: Petroleum Rights in the TMS – Leasing
Petroleum Rights in the TMS – Leasing A summary of the leasing system in the US For personal use only Petroleum Rights In the USA, the rights of access to hydrocarbons are generally attached to the surface landowner as real property However, such rights can be separated from the surface land own
Slide 31: Footnotes
Footnotes 1. All estimates and risk factors taken from Ryder Scott, report prepared as at 1 February 2017 and generated for the Australis concessions to SPE standards. See For personal use only ASX announcement titled “US Shale Acquisition and A$100 Million Placement’ dated 28 February 2017. Austral
Slide 32: Glossary
Glossary Unit Measure Unit Measure For personal use only B Prefix - Billions bbl Barrel of oil MM or mm Prefix - Millions boe Barrel of oil equivalent (1bbl = 6 mscf) M or m Prefix - Thousands scf Standard cubic foot of gas /d Suffix - per day Abbreviation Description TMS Core The Australis designat
Slide 33: Glossary - continued
Glossary - continued For personal use only Abbreviation Description WTI West Texas Intermediate Oil Benchmark Price LLS Louisiana Light Sweet Oil Benchmark Price D, C & T Drill, Complete and Tie-in well cost estimate 2D / 3D 2 dimensional and 3 dimensional seismic surveys Opex Operating Expenditure
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