Otto Energy Limited · ASX:OEL
Otto Energy — Investor Presentation (July 2016)
24 slides from Otto Energy's investor presentation, Jul 20, 2016
Slide 1: Return to Production 2017 - Investor Presentation
ASX : OEL For personal use only RETURN TO PRODUCTION 2017 INVESTOR PRESENTATION Matthew Allen, Managing Director and CEO July 2016
Slide 2: Overview: Drilling success sees return to production in 2017
Overview Drilling success sees return to production in 2017 For personal use only Alaska Seismic acquisition 1H 2016 Drilling 2-4 wells 1H 2017 Louisiana/Gulf of Mexico Recent discovery SMI 70/71 Staged options for up to 2 more wells Tanzania Drilling 2H 2016 Perth Head Office Investment Highlights:
Slide 3: Gulf of Mexico
For personal use only Gulf of Mexico (45 – 50% Working Interest) Exciting new discovery at SM71 #1 well Potential follow-up opportunities on block Staged options for up to 2 more wells Projected production and cashflow in 2017 3 Investor Update Presentation, July 2016
Slide 4: Staged Farm-in to Byron Energy Ltd
Staged Farm-in to Byron Energy Ltd Low cost/high chance of success opportunities in shallow Gulf of Mexico and onshore Louisiana For personal use only Bivouac Peak Onshore Prospect Drilling 1H 2017 SM6 Drilled Q1 2016 SM70/71 Discovery Q2 2016 4 Investor Update Presentation, July 2016
Slide 5: South Marsh Island 70/71 Discovery Well
South Marsh Island 70/71 SM70/71 Discovery Well SUCCESSFULLY TARGETED For personal use only D5 sands on salt dome Game-changing oil + gas discovery western flank Proves technology to unlock updip plays Well TD 7,477 feet MD MAP Sample analysis indicates light, sweet crude at three upper inte
Slide 6: South Marsh Island 70/71 Development Plan
South Marsh Island 70/71 SM70/71 Development Plan For personal use only Multiple development options Tie back to nearby existing production platform with 8” flowline 1. Surface installation, or 2. Subsea installation option New value + upside PLATFORM Time frame 12-14 months Estimated developm
Slide 7: Bivouac Peak Onshore Louisiana Exploration Opportunity
Bivouac Peak Onshore Louisiana Exploration Opportunity For personal use only Onshore/marshland leases over 2,400 acres (9.7 km2) in the highly productive Gulf of Mexico transitional zone Targeting prolific upper and middle Miocene reservoir Accessible by barge mounted drilling rig Gross dril
Slide 8: Alaska
For personal use only Alaska (8-10.8% Working Interest) 2-4 well drilling program 1H 2017 Proven production analogues Available infrastructure within Otto Energy acreage High quality 3D seismic covering entire acreage Oil recovered from multiple wells in Otto Energy acreage Capped cost e
Slide 9: Why Alaskan North Slope?
Why Alaskan North Slope? The North Slope of Alaska (NSA) contains the two largest conventional oil fields in North Prolific basin America (Prudhoe Bay and Kuparuk River). For personal use only Low sovereign risk USA is a stable investment country and rated as low sovereign risk. Low royalty rates of
Slide 10: Recent Exploration & Development: Unlocking mega plays in Alaska
Recent Exploration & Development Unlocking mega plays in Alaska For personal use only Repsol/Armstrong East Alpine Oil Field delineation 2 wells 2015 Field Area 80 sqkm Oil sands in excess 90’ thick Depth 6500’ 15-25% porosity 10.8% 8% Repsol/Armstrong 10.8% WI Nanushuk Development 650’ gross, 150’
Slide 11: Abundant Source Rocks
Abundant Source Rocks Multiple conventional plays and unconventional targets For personal use only OTTO ENERGY ACREAGE Source: Alaska Department of Natural Resources, Division of Oil and Gas 11 Investor Update Presentation, July 2016
Slide 12: Hue-HRZ Unconventional Potential
Hue-HRZ Unconventional Potential Otto Energy in optimal location for potential major shale play For personal use only Recent drilling at Icewine-1 well confirms Hue Shale potential Immature across North88 Slope Energy Icewine-1 HRZ Shale Unconventional Play 180’ net pay, TOC av 3.5% Effective Porosi
Slide 13: Conventional Play Types
Conventional Play Types 3D seismic reveals reservoir sweet spots For personal use only Kuparuk C K10 Toe Thrust Anticline Brookian Slope Apron Basin Floor Fan A single well has the potential to test more than one play type 13 Investor Update Presentation, July 2016
Slide 14: Alaska 3D Seismic
Alaska 3D Seismic 2016 Seismic acquisition campaign completed For personal use only Otto fully carried on all 3D expenditure All 3D vintages to be seamlessly merged into one mega project Acreage wide 3D enables the following: 1. Identification of subtle stratigraphic targets (as Repsol has succe
Slide 15: Tanzania
For personal use only Tanzania (25% Working Interest) Kito Prospect analogous to Kenya & Uganda discoveries Drilling planned for 2H 2016 Additional delineated leads may be drilled in success case Farm down to MV Upstream Tanzania Limited for full carry on drilling costs 15 Investor Update Pr
Slide 16: Tanzania Kito Prospect drilling in 2H 2016
Tanzania (Otto 25% WI) Kito Prospect drilling in 2H 2016 Kito Prospect For personal use only Large frontier exploration prospect 50 km2 Area of Closure Up to 250m column height Similar to discoveries in Kenya & Uganda Reservoir type Miocene (Neogene) ‘Deep U/C’ Depth (m) Objective Depth 900 – 1,
Slide 17: Future Activity
For personal use only Future Activity Significant multi-well drilling program underway 17 Investor Update Presentation, July 2016
Slide 18: Activity Timeline
Activity Timeline For personal use only Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2016 2016 2017 2017 2017 2017 2018 SM6 Drilled P&A GULF OF SM Development planning Low-cost production MEXICO 70/71 Drilled SUCCESS Bivouac Technical evaluation Peak Drill Option First Risk & rank prospects round drilling Well plan
Slide 19: Additional Information
For personal use only Additional Information Otto Energy Ltd 32 Delhi Street West Perth Western Australia 6005 Telephone: +61 8 6467 8800 Facsimile: +61 8 6467 8801 info@ottoenergy.com 19 Investor Update Presentation, July 2016
Slide 20: Robust Capital Structure
Robust Capital Structure 70,000,000 $0.08 For personal use only 60,000,000 $0.07 Volume (shares traded per day) $0.06 50,000,000 OEL Share Price $0.05 40,000,000 $0.04 30,000,000 Cash backing $0.03cps $0.03 20,000,000 $0.02 10,000,000 $0.01 0 $0.00 Capital Structure Shareholders Fully paid ordinary
Slide 21: Experienced Board & Management Team
Experienced Board & Management Team For personal use only Board of Directors Senior Management John Jetter – Non-Executive Chairman. Matthew Allen – Managing Director & CEO. LLB, BEc INSEAD BBus, FCA, FFin, GAICD Former MD/CEO J.P. Morgan Germany. Global exposure to the upstream oil and gas industry
Slide 22: Disclaimer
Disclaimer This presentation does not constitute an offer to sell securities and is not a solicitation of an offer to buy securities. It is not to be distributed to third parties without the consent of Otto Energy Limited (the “Company”). This presentation contains forward looking statements that ar
Slide 23: Byron Energy Staged Farm-in Commercial Terms
APPENDIX 1 Byron Energy Staged Farm-in Commercial Terms For personal use only Otto Well Net Gross Well Working Licence Drilling Contribution Revenue Cost (1) (2) Interest Interest Otto Energy has executed the option to earn equity in SMI-70/71 leases South Marsh Island – 70/71 Q1 2016 US$4.5m US$3.0
Slide 24: Reserves/Prospective Resources Potential Post Earn-in
APPENDIX 2 Reserves/Prospective Resources Potential Post Earn-in For personal use only Net Possible Proved Probable Prospective Revenue Reserves Licence Reserves Reserves Resource Interest (3P) (1P) (2P) South Marsh Island – 40.625% Oil (Mbbl) 582 2,027 2,567 2,043 70/71 (SMI-70/71) (shallow water G