Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — Melbourne Mining Club (March 2017)
31 slides from Amplitude Energy's conference presentation, Mar 21, 2017
Slide 1: Presentation to Melbourne Mining Club
David Maxwell, Managing Director NS COOPER Presentation to Melbourne Mining Club % ENERGY 21 March 2017
Slide 2: Important information
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 3: Cooper Energy overview
For personal use only Cooper Energy develops and supplies gas to south-east Australia and produces oil from the western flank of the Cooper Basin. The company’s portfolio features existing gas production, 227 PJ of uncontracted gas and two new gas projects to supply south-east Australia from 2019 on
Slide 4: 2011 portfolio
For personal use only 2011 portfolio: Cooper Basin oil • Oil production from western flank of Cooper Basin • Single gas exploration permit in Otway Basin • Poland • Romania • Indonesia PEL 495 • Tunisia 4
Slide 5: Building Otway and Gippsland positions
For personal use only Otway Basin • Builds acreage and technical Gippsland Basin capability through merger with Somerton Energy • Invested in Bass Strait Oil Company which holds Gippsland permits • Sub-surface studies reinforce view of prospectivity • Technical studies of prospectivity and gas plays
Slide 6: Otway drilling and Gippsland Basin Manta interests
For personal use only Otway Basin • Drilling identifies gas bearing reservoirs in deep sands Gippsland Basin • Acquires 65% interest in Basker Manta Gummy permits • Commenced Manta business case analysis for supply to south-east Australia 6
Slide 7: Acquisition of Sole interest and Orbost Gas Plant
For personal use only Otway Basin • Builds understanding of Otway Gippsland Basin sub-surface • Acquires 50% of Sole gas field • Confirms attraction of offshore • Acquires 50% of Orbost Gas Plant Otway • Manta business case affirms economic development opportunity 7
Slide 8: Otway acquisitions and gas contracts
For personal use only Otway Basin • Acquires Casino Henry, Vic P44, Minerva and Minerva Gas Plant Market Gippsland Basin • O-I Australia gas contract • Sole gas field interest 100% • AGL gas contract • Sole gas project FEED completed • EnergyAustralia gas contract • Orbost Gas Plant 100% • Alinta En
Slide 9: Current production, contracts and new gas projects
For personal use only Production Gas contracts • ~ 7 PJ pa from Casino Henry & • 188 PJ contracted from 2017 on Minerva1 • EnergyAustralia (Otway & Sole) • Sold to EnergyAustralia • AGL Energy (Sole) • Uncontracted gas to market for • Alinta Energy (Sole) supply from March 18 • O-I Australia (Sole)
Slide 10: Production, 2P reserves and contingent resources
For personal use only FY17 production1 Contingent resources (2C)1,2 2P reserves1,2 MMboe expected MMboe MMboe 74.4 11.6 66.8 1MMboe 41.6 Gas Gas Gas 10.4 36.7 Oil Oil Oil 0.3 1.3 1.1 4.9 7.6 Jun-16 Jan-17 Jun-16 Jan-17 Jun-16 Jan-17 • Addition of Otway gas • Addition of 60 PJ of Otway • Australian c
Slide 11: South-east Australian gas demand and Cooper production profile
For personal use only Forecast 1 south-east Australian gas demand and production Cooper Energy gas production profile PJ pa PJ pa 600 100 SE Australia demand¹ 90 500 80 70 400 Manta (100%) 60 300 50 Sole (100%) 40 200 Casino 30 20 100 10 0 0 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 201
Slide 12: Gas production from current assets: contracted and uncontracted
For personal use only Gas production1 from current assets: contracted & uncontracted PJ pa 36 36 37 28 17 11 19 13 15 10 Uncontracted 13 20 20 20 20 20 20 20 15 16 2 10 Contracted 3 5 1 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 1 Assumes: * 227 PJ comprises 52 PJ 2P Casino Hen
Slide 13: Balanced, sustainable resource development
For personal use only Health & safety Successful, Resource Environment economics Sustainable, Value- Balance not achieved: generating Balance achieved: people hurt resource safe project collapse environmentally development sound development uneconomic no community benefit cost effectiv
Slide 14: Production growth profile
For personal use only Production1 MMboe 12 • Sustained growth profile over 6 years • Gas accounts for overwhelming majority of production 10 • New assets and production profile generates: Manta – FY17 production >2x FY16 production 8 Gas Project – FY19 production >5x FY16 production – FY22 productio
Slide 15: Sole FID and next steps
For personal use only 1 Sole FID • Financial commitment to project • Triggers 43 MMboe uplift in gas reserves Uplift in 2P reserves* MMboe • Translation of HoA with APA to formal agreement • Expected shortly after project sanction 2 Uncontracted Otway gas • Contracting gas to supply from March 2018
Slide 16: Execution of gas strategy
For personal use only 1 Execution of our gas strategy has delivered: Cooper Energy has become a supplier and developer of gas for south east Australia at a time of great market need. 2 FY17 growth is the first step of larger and sustainable growth: Reserves and production upgrades in the current yea
Slide 17: Appendices
For personal use only Appendices
Slide 18: Cooper Energy key figures
For personal use only Cooper Energy is an independent Australian exploration and Key figures production company Shares on issue1 660.1 mill • Listed in 2002, history of profitable operations and successful exploration and development Shareholders1 5,923 • Strong balance sheet, zero debt Market capit
Slide 19: Business segments
For personal use only Gas production & sales Oil exploration & production Gas projects & contracting Otway Basin: Casino Henry & Minerva Cooper Basin Western Flank Gippsland and Otway Basins Sales of ~7- 8 PJ pa to EnergyAustralia 240,000 – 280,000 1 bbl pa Sole, Manta projects, Otway uncontracted g
Slide 20: Gippsland Basin projects and Orbost Gas Plant
For personal use only Orbost Gas Plant • Existing gas plant • Connected to Eastern Gas Pipeline Longtom • Plant owned & operated by APA Group (Seven Group 100%) (proposed in HoA announced 27/2/17 Patricia Baleen (COE 100%) 65 km Phase 2: Manta 58 km Phase 1: Sole • 2C Resource1: 106 PJ gas, 3 .2 MMb
Slide 21: Gippsland Basin: Sole, Manta, Patricia-Baleen
For personal use only Sole Gas Project (VIC L/32, COE:100%, Operator ) • 249 PJ 2C Contingent Resource1 • 20 PJ pa contracted: gas contracts with O-I Australia, AGL Energy, Alinta Energy EnergyAustralia • Sanction expected by March 2017 for Sole gas into plant by March 2019 Manta (VIC RL/13,14,15; C
Slide 22: Otway Basin assets
For personal use only Key Assets • Casino Henry gas project (50%) • Minerva gas field and plant (10% interest)1 • VIC/P44 exploration permit Production (COE share, effective from 1 January 2017) • Casino Henry (VIC/RL11 & 12): 7 PJ pa, supplied to EnergyAustralia under contract expiring March 2018 •
Slide 23: Cooper Basin oil production and costs
For personal use only • First half production of 0.13 MMbbl vs 0.17 in H1 FY16 • Production impacted by suspension of drilling in low oil price FY16 • Operating costs reduced from A$29.92/bbl to A$29.28/bbl • Drilling resumed in FY17 with 4 wells drilled; 2 successful, 2 P & A • No further drilling
Slide 24: Orbost Gas Plant sale to APA
For personal use only Transaction elements: Cooper Energy to sell Orbost Gas Plant to APA Group. 1 Heads of Agreement (non-binding) provides for APA to take ownership, subject to Sole FID APA to be responsible for funding and performance of ~$250 million plant upgrade and processing of gas from Sole
Slide 25: Sole gas field cross section
Sole gas field North west -1000m [EB War (sean) “720m — [EERE Coarse sandstone (2000-6000mD) High GR sandstone (1000-2000mD) [BB Agilacaceous sandstone (100-400mD) ME Gas zone -740m DST 1: 771m to 785mRT 20.6 MMsct/d Dry gas (94% CH, 0.59 SG, <1 bb/MMscf CGR) -760m Lakes Entrance Formation -780m -80
Slide 26: Gas production profile by project
For personal use only Gas production profile by project contracted & uncontracted PJ pa Gippsland Gas Project Phase 2 Manta 25 25 25 18 Manta uncontracted 10 Gippsland Gas Project Phase 1 10 5 5 7 5 5 Sole 5 5 5 Sole uncontracted 5 9 1 20 20 Sole contracted 20 20 9 15 20 20 Otway 2P reserves: 6 20 C
Slide 27: Reserves table
Proved Proved & Probable Proved, Probable & Possible Reserves* (1P) (2P) (3P) For personal use only Cooper1 Otway2 Total Cooper1 Otway2 Total Cooper1 Otway2 Total Developed Sales Gas PJ 0.0 4.8 4.8 0.0 15.2 15.2 0.0 29.3 29.3 Oil + Condensate MMbbl 0.5 0.0 0.5 0.9 0.0 0.9 1.6 0.0 1.6 Total developed
Slide 28: Management team
Managing Director Executive Director General Manager, Development General Manager, Operations General Manager, Exploration For personal use only David Maxwell Hector Gordon Duncan Clegg Iain MacDougall & Subsurface David Maxwell has over 30 years’ Hector Gordon is a highly Duncan Clegg has over 35 y
Slide 29: Reserves and resources 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 30: Glossary
$, A$ Australian dollars unless specified otherwise For personal use only 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
Slide 31: For personal use only
For personal use only