Otto Energy Limited · ASX:OEL
Otto Energy — Shareholder Meeting (November 2020)
14 slides from Otto Energy's shareholder meeting presentation, November 2020
Slide 1: AGM Presentation: Delivering value
AGM PRESENTATION Delivering value November 2020 1
Slide 2: Otto: Targeted delivery of superior shareholder returns
Otto: Targeted delivery of superior shareholder returns MISSION STRATEGY Deliver superior 1. Leverage our excellent base shareholder value business 2. Maximise the existing base to unlock further value VISION Achieve outstanding business 3. Create future value through delivery as a partner of choice
Slide 3: Leverage our excellent base: The Otto portfolio
1 Leverage our excellent base: The Otto portfolio Three substantial GoMassets Operating Partner Hilcorp Energy 1 South Marsh Island 71 Byron Energy Talos Energy ▪ Initial 2016 discovery developed into Otto’s flagship asset ▪ Otto has participated in three producing wells, with 2.6 MMBbl & 3.4 Bcf cu
Slide 4: Leverage our excellent base: Asset performance to date
1 Leverage our excellent base: Asset performance to date Returns from development SM 71 LIGHTNING DOFP CY2018 CY2019 COMMODITY WEIGHT 86% Oil 85% Gas/Cond. NET CAPEX REQUIRED US$27.6M US$19.4M NET IP (BOEPD/MMCFD) 1800 BOEPD 8000 MMCFED NET 2P RESERVES 3.3 MMBOE 25.9 BCFE ALL IN F&D US$11.30/BOE US$
Slide 5: Maximise the base: Substantial cost reductions delivered
2 Maximise the base: Substantial cost reductions delivered On track to reduce FY21 office operating costs by approx. 40% -with further cost efficiencies targeted Historical Fully Costed Targeted 3 Year Forward Indirect operating expenses US$31.00/Bbl VS Ave. Costs ▪ Targeting further reductions in p
Slide 6: Future value creation: Key return objectives
3 Future value creation: Key return objectives Rigorous, hurdle-driven evaluation of opportunities to create future value BASE AND ORGANIC GROWTH OPTIONS INORGANIC GROWTH OPPORTUNITIES Facilitated by underlying base business Base Business + Organic Options (3-Year Group Targets) Key Targeting Criter
Slide 7: Future value creation: A holistic, full-cycle perspective
3 Future value creation: A holistic, full-cycle perspective Driven by a highly disciplined approach to capital management Prospect portfolio generation/access Asset evaluation ▪ Acquisition of underdeveloped and under-valued ▪ Divestment of existing/swap Company evaluation ▪ Sale of Otto ▪ Merge wit
Slide 8: Otto Energy: delivering value
Otto Energy: delivering value 1. The GoM: a mature, opportunity-rich environment 2. Our base: a regionally diverse, liquids-rich, high-margin portfolio 3. Internal levers: leveraging a strong balance sheet to deliver organic growth 4. External assessment: creating growth access through rigorous inor
Slide 9: Appendix
4 a RARE) Appendix
Slide 10: Notes to Reserves and Resources Statement
Notes to Reserves and Resources Statement Reserves and Resources Governance Otto’s reserves estimates are compiled annually. Otto engages Ryder Scott Company, a qualified external petroleum engineering consultant, to conduct an independent assessment of the Lightning Field and Green Canyon 21 reserv
Slide 11: Notes to Reserves and Resources Statement (continued)
Notes to Reserves and Resources Statement –(continued) Prospective Resources Cautionary Statement The estimated quantities of petroleum that may potentially be recovered by the application of future development projects relate to undiscovered accumulations. These estimates have both an associated ri
Slide 12: Disclaimer
Disclaimer ▪ This presentation is provided for information purposes only and is not a disclosure document as defined under the Corporations Act 2001 (Cth) This presentation does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase, sale or issue of any sec
Slide 13: Disclaimer (continued)
Disclaimer –(continued) ▪ You are cautioned not to place undue reliance on forward looking statements as actual outcomes may differ materially from forward looking statements. Any forward‐looking statements, opinions and estimates provided in this presentation necessarily involve uncertainties, assu
Slide 14: Contact: Mike Utsler Managing Director & CEO
Not for release to US wire services or distribution in the United States This release was authorised the Board of Otto Energy Limited. Contact: Mike Utsler Managing Director & CEO +61 8 6467 8800 info@ottoenergy.com Australian Office: 32 Delhi Street, West Perth WA 6005 Houston Office: Suite #1080,