Otto Energy Limited · ASX:OEL
Otto Energy — Noosa Mining and Exploration Conference 2017
41 slides from Otto Energy's conference presentation, Jul 20, 2017
Slide 1: Otto Energy to present at Noosa Mining and Exploration Conference
ASX ANNOUNCEMENT 20 July 2017 OTTO ENERGY TO PRESENT AT NOOSA MINING AND EXPLORATION CONFERENCE Otto Energy Ltd (ASX: OEL) (“Otto” or the “Company”) is pleased to release the attached investor presentation which CEO Matthew Allen will present today at the Noosa Mining and Exploration Conference. The
Slide 2: Investor Update Presentation
ASX : OEL Investor Update Presentation Gulf of Mexico Shelf oil and gas explorer/producer Matthew Allen, Managing Director and CEO July 2017
Slide 3: Corporate Snapshot
Corporate Snapshot A proven junior oil and gas company with focus on delivering shareholder value 50,000,000 3.00 2 45,000,000 2.50 40,000,000 35,000,000 Volume (shares traded per day) 2.00 OEL Share Price (normalised) 30,000,000 25,000,000 1.50 20,000,000 1.00 15,000,000 10,000,000 0.50 5,000,000 -
Slide 4: Pre-empting the major change in oil & gas markets
Pre-empting the major change in oil & gas markets Building a Gulf of Mexico shelf focused business Executed sale of interest in Galoc, Philippines Sold working interest for US$108 million valuing interest at US$32.70 Acquired interest in per bbl in the ground. Alaska North Slope acreage Non-core ass
Slide 5: Gulf of Mexico Shelf – counter-cyclical play
Gulf of Mexico Shelf – counter-cyclical play Limited investment in US conventional exploration – mature province yielding new discoveries Shale oil revolution SM71 breakeven • Gulf of Mexico is a mature oil and gas province < US$25/bbl – producing since 1950’s Over US$21.4 billion in Permian shale M
Slide 6: Otto Energy US Gulf of Mexico Strategy
Otto Energy US Gulf of Mexico Strategy Targeting high margin, high chance of success, near term production Focus on prospects with the following characteristics: Miocene/Pliocene geology which are amplitude supported Investing capital into drilling, not seismic Seeking early cashflow/ROI - ~12
Slide 7: Otto Energy's Gulf of Mexico Portfolio
Otto Energy’s Gulf of Mexico Portfolio • Option to drill a well at Bivouac Peak secured • Multi-well development at SM71 in production Jan 2018 • Option to secure 50% equity in adjacent block at VR232 or SM74 • Farm-in to ST-224 delivered • Low risk/high value well to be drilled Q4 2017 6 Investor U
Slide 8: South Marsh Island 71 (SM71)
South Marsh Island 71 (SM71) Otto’s first GoM shelf discovery – production to start Jan 2018 SM71 Oil Discovery Well 50% Participating Interest / 40.625% Net Revenue Interest in the SM71 discovery operated by Byron Energy Ltd (ASX: BYE) SM71 #1 well intersected 151 feet/46 metres of net pay in t
Slide 9: Further upside at SM71 discovery
Further upside at SM71 discovery B65 sand target to be appraised during development drilling in Q4 2017 B BYE SM71 #1 B’ D5 Sand Amplitude Map A’ I Sand Production B’ J Sand Production 590 Mbo Historical Production B’ B’ 3.3 Mmbo Historical Production B I Sand Erosional Truncation/ P/Out of D5 J San
Slide 10: South Timbalier 224 (ST224)
South Timbalier 224 (ST224) Amplitude supported, gas/condensate prospect drilling in Q4 2017 ST224 Farm-in 25% Participating Interest / 19.5625% Net Revenue Interest in the ST224 well ST224 #1 well to be drilled in Q4 2017 in 170 feet water depth to ~10,500 feet TVD Otto will earn a 25% partic
Slide 11: Bivouac Peak
Bivouac Peak Onshore Louisiana gas/condensate prospect to be drilled in 2018 BYRONENERGY LIMITED Cris I – Cib Op Trend Active Production Prospect Acreage Note: Otto will earn interests in the above resources volumes by participating in wells. The estimated quantities of petroleum that may potentiall
Slide 12: Alaska North Slope
Alaska North Slope New conventional discoveries add to prospectivity of this prolific region Caelus Smith Bay Conventional Discovery (Oct 2016) • Caelus-Tulimaniq #1 & step-out Caelus-Tulimaniq #2 • Brookian submarine fan play • 183ft & 223ft net oil pay • Estimated 1.8 to 2.4 billion barrels recove
Slide 13: Forward Activity Timeline
Forward Activity Timeline 2017 2018 2019 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Low-cost production SM71 Facility construction Additional Development Development & GULF OF Exploration drilling drilling? MEXICO Drilling Success Case Facility Construction Low-cost production S
Slide 14: Corporate Value Breakdown
Corporate Value Breakdown $0.05+ 13 Investor Update Presentation, July 2017
Slide 15: Additional Information
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 14 Investor Update Presentation, July 2017
Slide 16: Experienced Board & Management Team
Experienced Board & Management Team 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 with Non-Executive Di
Slide 17: 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 18: Annexure 1 Byron Energy Limited Presentation
Annexure 1 Byron Energy Limited Presentation Byron Energy Limited (ASX:BYE) is the Operator and 50% partner in the SM 71 oil development with Otto Energy Limited (50% participating interest). Byron yesterday released the attached presentation to the ASX. This presentation includes a significant amou
Slide 19: Byron Energy Investor Presentation July 2017
BYRONENERGY LIMITED Investor Presentation July 2017 On the Path to Production, Cash Flow & Reserve Growth 1
Slide 20: Disclaimer
Disclaimer Disclaimer This presentation is provided by Byron Energy Limited ABN 88 113 436 141 (“Byron”) in connection with providing an overview to interested parties. The information in this presentation is of a general nature and does not purport to be complete. Do not rely on this information Th
Slide 21: Presentation Outline
Presentation Outline Who we are Our track record Cutting edge technology SM 71 discovery and development plan Lease Sale 247 and near term growth through exploration opportunity 3
Slide 22: Byron Energy Overview
Byron Energy Overview Byron Energy Ltd. (BYE: ASX Listed) is focused on conventional opportunities in the shallow waters (10 – 60m) of the US Gulf of Mexico (GOM) Shelf & Onshore Coastal Louisiana. The Company’s strategy is underpinned by utilisation of established and cutting edge technology in its
Slide 23: Byron Exploration Team GOM & Near Shore Successes
Byron Exploration Team GOM & Near Shore Successes Monetizing the Results: Petsec Energy exit (‘93‐’97) multiple of 26 X investment Darcy Energy exit (‘00‐’05) multiple of 11 X investment Aurora Exploration exit (‘00‐’12) multiple of 8 X investment Chandeleur MP MP 6/7 90/91 Main Pass MP 94 Eagles Ne
Slide 24: Byron Energy Asset Description
Byron Energy Asset Description Gulf of Mexico & Louisiana State Waters Interest Lease Expiry Area Area Operator WI/NRI* (%) Date (Km2) South Marsh Island Block 57 Byron 100.00/81.25 June 2022 21.98 South Marsh Island Block 59 Byron 100.00/81.25 June 2022 20.23 South Marsh Island Block 70 Byron 50.00
Slide 25: South Marsh Island 70/71 (SM71)
South Marsh Island 70/71 (SM71) Project Summary Louisiana United States Joint Venture Partners Byron Energy Otto Energy Operator Byron Energy Inc. Eugene Island Water Depth 40 meters (131’) Vermilion South Previous SM71 Production 3.9 mmbo + 10 bcf Marsh Ship Shoal Island Acquired OCS Sale 222 June
Slide 26: Metgasco Convertible Note
Metgasco Convertible Note On 22 July 2016, Byron and Metgasco Limited (“Metgasco”) entered into a 3‐year agreement to issue up to $A8 million in Convertible Notes (“Convertible Notes”), repayable over the course of the agreement. Terms Quantity 8,000,000 Convertible Notes @ A$1.00 (A$8,000,000 issue
Slide 27: SM 70/71 D5 Structure Map
SM71 Byron #1 SM 70/71 D5 Structure Map Discovery Total Field Production 116 mmbo + 375 BCF Gross 3P Reserves* 323 wells ‐ 154 produced & 169 dry holes 6.3 mmbo + 4,500 mmcf SM71 B65 Gross Prospective Resource* 5.0 mmbo + 4,800 mmcf SM 70 Salt Dome D5 Erosional Surface Byron #1 Discovery 3P Reserves
Slide 28: South Marsh Island Block 71 Lease & Drilling History
South Marsh Island Block 71 Lease & Drilling History Shell Oil Drilled 4 Wells 1962 ‐ 1973 Superior, Transco, McMoRan, et. Al Drilled 5 wells 1977 ‐ 1982 SM71 Tenneco Farmed out to Taylor Drilled 2 Wells D5 1983 ‐ 1988 Shell Oil Farm out 1st well to Newfield Drilled 14 wells (Horizontal Dev.) Produc
Slide 29: South Marsh Island 71 – D5 Sand Discovery
South Marsh Island 71 – D5 Sand Discovery SM71 D5 Sand RTM Amplitude Map • Production expected to commence in 1st quarter 2018 B’ • Initial projected flow rates over 1,500 bbls/day/well SMI 71 #1 B • Initial 2 well net cash flow to Byron USD$2,000,000/month • SM71 # 1 Well logged 151’ TVT oil pay in
Slide 30: SM71 Byron #1 Well Hydrocarbon Sand Intersections
SM71 Byron #1 Well I, J, D5 & D6 Hydrocarbon Sand Intersections B BYE SM71 SHL B’ D5 Sand Amplitude Map I Sand Production 590 Mbo Historical Production J Sand Production 3.3 Mmbo Historical Production Erosional #1 Truncation B’ I Sand B J Sand #1 SHL B65 Sand Erosional Truncation Salt D5 Sand Notice
Slide 31: SM71 Development: 3 Well Scenario
SM71 Development: 3 Well Scenario Conceptual Well Placement and Timing BYE SM71 SHL 91 NFO TVT 1,000‐1,500 bopd First Production June 2018 I Sand J Sand BYE #1 #3 B65 * Prospective Resource 4,864 mbo + 4,740 mmcf 1,500‐2,000 3,000‐4,000bopd bopd/well Notice: THIS DATA IS OWNED BY AND IS A TRADE SECR
Slide 32: SM71 – B65 Sand – Comparison of Prospect to Production
SM71 – B65 Sand – Comparison of Prospect to Production SM71 Prospect SM73 Production B65 Vp/Vs B65 Vp/Vs *5.0 mmbo + 4,800 mmcf NET 10.1 mmbo + 9,800 mmcf Collarini Prospective Resource Produced to Date C C’ #3 Target B B’ Shale Sand B65 Sand B65 Sand Prospect Production Notice: THIS DATA IS OWNED B
Slide 33: South Marsh 71 Development plan
Manned Tripod South Marsh 71 Development plan Complete Manned Tripod Expected completion Sep 2017 Kinetica 30” Gas Lift boat delivery to SM71 location Oct 2017 Drilling rig arrives Nov 2017 Departs Jan 2018 Complete the #1 Well in D5 Sand Byron Gas – 7000’ to Byron Oil – 500’ to Crimson 8” Oil Drill
Slide 34: SM71 Project Timeline & Platform Capex
SM71 Project Timeline & Platform Capex – July 1, 2017‐ Sep 2018 2017 2018 July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Platform Completion Complete #1 D5 First First Drill/Complete #3 First First Cash Drill #2 Production Cash Flow From Cash flow Production Flow D5 Acceleration D5 2We
Slide 35: SM71 Production and Net Cumulative Cash Flow Forecast
SM71 Production and Net Cumulative Cash Flow Forecast $140 2‐3‐5 Well Scenarios 300,000 5 Wells $136 Citicorp Street Consensus Oil & Gas price 6/10/2017 WTI Oil Henry Hub Gas $120 2018 $58.00 $3.13 SM71 Net Cumulative Cash Flow (USD MM) SM71 Byron Net Quarterly Production (BOE) 2019 $60.00 $3.13 250
Slide 36: SM 71 Development Reserve Valuation
SM 71 Development Reserve Valuation Collarini Report 7/1/2016 (BYE Adjusted for 4/2017 Capex & timing) Undiscounted Pre tax 10% NPW Pre tax 10% NPW Reserve Category Reserves (Gross)* Reserves (net to Byron)* Capex** Pre‐tax Unrisked** Unrisked** net cashflow** oil mbo gas mmcf boe mbo oil mbo gas mm
Slide 37: SM 57/59/74 Near Term Drill Ready Exploration Opportunities
SM 57/59/74 Near Term Drill Ready Exploration Opportunities SM 57 SM 59 SM71 Byron #1 Discovery Gross 3P Reserves* 6.3 mmbo + 4,500 mmcf SM71 B65 Gross Prospective Resource* 5.0 mmbo + 4,800 mmcf SM 70 GOM Lease Sale 247 March 2017 SM 57/59/74 Byron has mapped over 15 high quality prospects on its l
Slide 38: Byron Energy Gross Reserves and Resources
Byron Energy Gross Reserves and Resources Reserves and Resources Lease Notes Gross Net Reserves Oil (mmbo) Gas (Bcf)* Oil (mmbo) Gas (Bcf)* 2P Reserves (SM71) SM 70/71 5.0 3.7 2.0 1.5 2P Reserves( EI 63/76) EI 63/76 0.5 0.7 0.4 0.6 2P Reserves (SM71 and EI 63/76) 1 5.5 4.4 2.4 2.1 Possible (SM 17 an
Slide 39: Byron US Office – Lafayette Louisiana
Byron US Office ‐ Lafayette Louisiana Suite 604, 201 Rue Iberville For more information on Byron Energy please contact: Maynard Smith Chief Executive Officer +1 337 534 3601 US Bill Sack Executive Director +1 337 288 6619 US Peter Love Investor Relations +617 31215674 AU Website: www.byronenergy.com
Slide 40: Reserves and Resources Information
RESERVES AND RESOURCES INFORMATION SM 70/71, EI 63/76 and Bivouac Peak Reserves and Resources Reporting Pursuant to ASX Listing Rules (“LR”) the reserves, contingent resources, and prospective resources information in this document: (i) is effective as at 30 June, 2016 (LR 5.25.1) (ii) has been esti
Slide 41: Reserves and Resources Information
RESERVES AND RESOURCES INFORMATION SM 57/59/74 (reported for the first time) Reserves and Resources Reporting (i) The prospective resources information in this document is effective as at 1st July, 2017 (Listing Rule (LR) 5.25.1). (ii) The prospective resources information in this document has been
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