Otto Energy Limited · ASX:OEL
Otto Energy — Shareholder Meeting (November 2019)
21 slides from Otto Energy's shareholder meeting presentation, Nov 21, 2019
Slide 1: Annual General Meeting Presentation
Annual General Meeting Presentation 21 November 2019 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: FY19 – Achievements and Activity
FY19 – Achievements and Activity Building on FY18’s success in the Gulf of Mexico with major partnerships and drilling activity Free Cash Flow • Net operating cashflow1 of ~US$24m from production of 741,626 boe [WI share] a 282% increase over FY18 production • 1P Reserves(2) growth of 49% net to Ott
Slide 4: FY20 Outlook
FY20 Outlook A disciplined approach to investing in oil and gas projects and successfully growing shareholder value Otto’s activity Otto’s strategy • Drilling at the Green #2 development at Lightning • Current portfolio of production assets to achieve commenced in October 2019 strategic goal of 5000
Slide 5: Otto Energy - Investment Exposure to the Gulf of Mexico
Otto Energy - Investment Exposure to the Gulf of Mexico ASX-listed, US focused, diversified conventional oil and gas production and exploration business Otto Energy Investment Highlights Operating Partner Hilcorp Energy • Current production of ~2600 boepd will generate net Byron Energy operating cas
Slide 6: Otto Energy – Reserves at SM 71, Lightning and GC 21 in the Gulf of Mexico
Otto Energy – Reserves at SM 71, Lightning and GC 21 in the Gulf of Mexico Otto reserves have NPV10 value of US$ 213 m at the 2P level net to Otto delivered from the active drilling program C Total Gross (100%) Otto Net a NPV 10 US$ MM* Gas Gas O Oil (Mbbl) (MMscf) MBoe Oil (Mbbl) (MMscf) MBoe t Ott
Slide 7: Production - South Marsh Island 71, offshore Gulf of Mexico
Production - South Marsh Island 71, offshore Gulf of Mexico Oil and gas revenue provides strong cashflow foundation for growth South Marsh Island 71 Joint Venture Otto Energy 50.0% Byron Energy (operator) 50.0% Fiscal Terms Federal Royalty 18.75% Held by production licence Location Offshore Federal
Slide 8: Production - Lightning, onshore Texas Gulf Coast
Production - Lightning, onshore Texas Gulf Coast First discovery under Gulf Coast Drilling program – 2nd development well in progress to increase production Lightning Discovery Joint Venture Otto Energy 37.5% Hilcorp Energy (operator) 62.5% Fiscal Terms Landowner Royalty 24.9% Held by production lic
Slide 9: Discovery – Green Canyon 21 “Bulleit”, offshore Gulf of Mexico
Discovery – Green Canyon 21 “Bulleit”, offshore Gulf of Mexico Two target discovery with Talos Energy – wellbore suspended for completion in mid CY20 Green Canyon 21 “Bulleit” Prospect Joint Venture Otto Energy 16.67% ~16 km tie-back Talos Energy (operator) 50.00% GC21 - Bulleit Prospect Enven Energ
Slide 10: Pipeline of Opportunities
Pipeline of Opportunities Otto has assembled an exciting pipeline of upcoming activities as a result of its non-operating partnership strategy CY 2019 CY 2020 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 SM 71 Low-cost production SM71 F-5 Lightning Low-cost production Green #2 Green Canyon 21 “Bu
Slide 11: Appendix
4 a RARE) Appendix
Slide 12: Corporate Snapshot (ASX:OEL)
Corporate Snapshot (ASX:OEL) CAPITAL STRUCTURE FUNDING POSITION SHAREHOLDERS Fully paid ordinary shares 2.460b Cash (30 Sep 2019) US$8.8m Perennial Value Management 14.8% Performance Rights 42.5m Molton Holdings 12.4% Debt - Commitment $55m Unlisted Options 42.5m - Currently Drawn (15 Nov 2019) $22m
Slide 13: Otto Energy Gulf of Mexico Area Key Projects
Otto Energy Gulf of Mexico Area Key Projects1 Strong cashflow base to fund growth from oil and gas sales at SM 71 and Lightning Metric SM 71 Lightning Gulf Coast Green Canyon 21 VR 232 Type JV JV JV JV JV 37.5% WI 100% WI Ownership Structure 50% WI 37.5% WI 16.67% WI (50% of Cost2) NRI 40.625% 28.50
Slide 14: Board of Directors
Board of Directors Ian Boserio John Jetter Paul Senycia Non-Executive Chairman Non-Executive Director Non-Executive Director BSc (Hons) LLB, BEc INSEAD BSc (Hons), MAppSc Executive Technical Director of Pathfinder Former MD/CEO J.P. Morgan International oil & gas experience gained over 35 Energy Pty
Slide 15: Management Team
Management Team Matthew Allen Kevin Small Philip Trajanovich Managing Director & CEO Chief Geophysicist and Executive Director Senior Commercial Manager BBus, FCA, FFin, GAICD BSc (Geophysical Engineering) B.Com (First Class Honours) Global exposure to the upstream oil and gas Global experience as a
Slide 16: September Quarter FY20 Highlights
September Quarter FY20 Highlights Otto achieved a 4% increase in sales revenue for the quarter on the back of a 6% increase in oil production and steady oil revenue and a substantial increase in gas and NGL revenue from Lightning • WI Share of hydrocarbon sales equate to 2623 boepd, a 28% increase o
Slide 17: Glossary
Glossary Abbreviation Expanded Term Definition GoM Gulf of Mexico Million barrels of oil equivalent/ MMboe / mboe thousand Million standard cubic feet per day MMscfpd (gas) Bopd/boepd Barrels of oil (equivalent) per day TD Total Depth The depth of the bottom of the well MD Measured Depth The total l
Slide 18: Competent Persons and Cautionary Statements
Competent Persons and Cautionary Statements Competent Persons Statement The information in this report that relates to oil and gas reserves and resources at SM 71 was compiled by technical employees of independent consultants Collarini and Associates, under the supervision of Mr Mitch Reece BSc PE.
Slide 19: Competent Persons and Cautionary Statements
Competent Persons and Cautionary Statements Reserves cautionary statement Oil and gas reserves and resource estimates are expressions of judgment based on knowledge, experience and industry practice. Estimates that were valid when originally calculated may alter significantly when new information or
Slide 20: Reserves and Resources Reporting Notes
Reserves and Resources Reporting Notes Pricing Assumptions Oil price assumptions used in the independent report represent forward prices (CME Nymex) as at 28 June 2019. ASX Reserves and Resources Reporting Notes i. The reserves and prospective resources information in this document is effective as a
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 2 4017 1257 +1 713 893 8894 21