Otto Energy Limited · ASX:OEL
Otto Energy — Morgans Energy Conference 2018
21 slides from Otto Energy's conference presentation, Nov 12, 2018
Slide 1: Leading Small and Mid-Cap Energy Plays
Morgans Energy Conference Leading Small and Mid-Cap Energy Plays Investor Presentation Matthew Allen – Managing Director 12 November 2018 ASX : OEL 1
Slide 2: 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 secur
Slide 3: Conventional production and exploration
Conventional production and exploration Building a 5,000 boepd production base by end of 2020 – currently at ~1,850 boepd • First Gulf of Mexico production commenced in March 2018 delivering long-life production, cashflow and reserve base • Positioned as a non-operating partner of choice in prolific
Slide 4: Focus on Gulf of Mexico production and exploration
Focus on Gulf of Mexico production and exploration Otto positioned in proven conventional play trends in the Gulf Coast and offshore OTTO ENERGY | ASX : OEL 4
Slide 5: Focused growth strategy in the Gulf of Mexico
Focused growth strategy in the Gulf of Mexico Otto’s core strategic goal is to grow Why Gulf of Mexico? production to 5,000 boepd by the end of 2020 • Proven prolific hydrocarbon province where • Building a portfolio of US conventional technologies such as RTM seismic processing production assets wi
Slide 6: Gulf Coast Package – Drilling Program
Gulf Coast Package – Drilling Program Independent prospects committed to be drilled Net Planned Target Working Prospect Rig Revenue Stratigraphic County/ Spud Depth Interest Location Name Type Interest Interval Parish Date (TVD), ft (WI) (NRI) Lightning Nov-18 14,500 Land 37.50% 28.50% Frio Tex Miss
Slide 7: Gulf Coast Package - Prospects
Gulf Coast Package - Prospects Highly prospective portfolio based on new proprietary 3D seismic Prospective Resources1 MMboe Prospect Net Probability Working Name Revenue of Success 100% Otto Net Revenue Interest Interest Interest P90 P50 Mean P10 P90 P50 Mean P10 Lightning 37.50% 28.50% 45% 0.9 3.2
Slide 8: Gulf Coast Package - Timing
Gulf Coast Package - Timing Potential of the Hilcorp Gulf Coast Portfolio Comparison of SM 71 reserve base with Gulf Coast Package prospective resources 120 P10 P50 P90 SM 71 100 80 Probability of Success % Mustang Mallard 60 Don Julio 2 Oil Lake Tarpon 40 Beluga Lightning 20 For the Gulf Coast Pack
Slide 9: Gulf Coast Package Potential
Gulf Coast Package Potential Risked Portfolio Potential to materially increase Otto’s US business Risked Summary data - 8 Well Portfolio, Gross (8/8ths) Metric P90 P50 P10 Volumes, MMBOE 4.63 19.86 64.59 Peak Production Rate, BOE/d 3,270 9,990 31,300 % Hydrocarbon Liquids per BOE 13% 28% 56% Finding
Slide 10: Tier 1 Operator - Hilcorp
Tier 1 Operator - Hilcorp Partnering with operator with proven capability to take exploration prospects into production • Founded in 1989, Hilcorp is one of the largest privately held oil and natural gas companies in North America. • Hilcorp has nearly 2,000 employees and currently produces approxim
Slide 11: Pipeline of Opportunities
Pipeline of Opportunities Otto has assembled an exciting pipeline of upcoming activities 2018 2019 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 SM 71 Low-cost production Gulf of Mexico VR232 Ongoing studies prior to initial test well Lightning Beluga Tarpon Hilcorp Don Mustang Gulf Coast Oil Lake Mallard
Slide 12: Gulf Coast Package - Key Terms
Gulf Coast Package - Key Terms Commitment to eight well drilling program with Hilcorp Energy • Otto is participating in a firm eight well program with a right of first offer to a subsequent program, if Hilcorp elect to offer a program to third parties. • Should either the Tarpon or Mustang prospects
Slide 13: South Marsh Island 71 (SM 71)
South Marsh Island 71 (SM 71) Generating ~US$3m in free operating cashflow each month • Production commenced in March 2018 • At WTI of US$63/bbl Otto will realise ~US$65/bbl net (after transport and before Federal royalties due to high LLS margin) • Oil and gas production to 19 September 2018 of 641
Slide 14: Alaska
Alaska Otto to Drill Large Nanushuk Oil Prospect on the Alaska North Slope in Early 2019 • 400 MMbbl 2 gross best estimate prospective resource target on the Alaska North Slope. Otto’s 18.75% net revenue interest (before Great Bear 10% back in – refer table) would be 75 MMbbls2. • Winx-1 drilling ta
Slide 15: Why Otto Energy?
Why Otto Energy? An emerging mid-tier oil and gas producer underpinned by cashflow to fund growth • Low cost oil producer generating significant cashflow – SM 71 free cashflow of ~US$3m per month • Significant activity - extensive exploration drilling campaign with at least 8 remaining wells to be d
Slide 16: Additional Information
S vax y y D y 2 Additional Information
Slide 17: Why invest in Otto?
Why invest in Otto? High margin producer with compelling valuation metrics ASX Mid Cap Oil & Gas Companies 1 Nov 2018 Production and Market Cap Distribution 12,000 Sundance Energy 10,000 Elk Petroleum 8,000 6,000 Horizon Oil Cooper Energy 4,000 Freedom Oil & Gas Central Petroleum Byron Energy Senex
Slide 18: Corporate Snapshot
Corporate Snapshot Capital Structure Funding Position Shareholders5 Fully paid ordinary shares 1.871b Cash (30 September 2018) US$14.2m Molton Holdings 16.4% Performance Rights 18.8m Convertible Note Liability US$9.4m Perennial Value 6.3% (repayable 30 June 2019)4 Management Convertible Notes (US$1
Slide 19: Board and Management
Board and Management John Jetter – Non-Executive Ian Macliver – Non-Executive Ian Boserio – Non-Executive Director. Chairman. Director. BComm, FCA, SF Fin, BSc (Hons) LLB, BEc INSEAD FAICD Executive Technical Director of Former MD/CEO J.P. Morgan Managing Director Grange Pathfinder Energy Pty Ltd. F
Slide 20: Houston Office Technical Team
Houston Office Technical Team 110+ years of Gulf Coast and Gulf of Mexico experience Will Armstrong – Vice President, Exploration and New Ventures Prior to joining Otto Will worked with Tri-C Resources, a privately owned Houston based oil and gas company, developing Gulf Coast conventional prospects
Slide 21: Address Contact Info Telephone
Address 32 Delhi Street West Perth WA 6005 Australia 1200 Smith Street Suite 1080 Houston TX 77002 United States of America Contact Info Email: info@ottoenergy.com Web: www.ottoenergy.com Telephone + 61 8 6467 8800 +1 713 893 8894 21