Australis Oil & Gas Ltd. · ASX:ATS
Australis Oil & Gas — Euroz Hartleys Rottnest Institutional Conference 2022
24 slides from Australis Oil & Gas's conference presentation, Mar 10, 2022
Slide 1: ASX Announcement: Corporate Presentation Material
For Immediate Release ASX Announcement 10 March 2022 For personal use only Corporate Presentation Material Please find attached a copy of the presentation to be used by Australis Oil & Gas Limited for Euroz Hartleys Institutional Conference today. This ASX announcement was authorised for release by
Slide 2: Euroz Hartleys Rottnest Institutional Conference
For personal use only ASX: ATS Euroz Hartleys Rottnest Institutional Conference 10 March 2022
Slide 3: Important Notice and Disclaimer
Important Notice and Disclaimer This presentation has been prepared by Australis Oil & Gas Limited ABN 34 609 262 937 (ASX: ATS) (Australis). For personal use only Summary of information: This presentation contains general and background information about Australis’ activities current as at the date
Slide 4: Australis and the Tuscaloosa Marine Shale
Australis and the Tuscaloosa Marine Shale A material strategic position within one of the last quality undeveloped unconventional oil plays in the USA For personal use only • Largest land holder with >95,000 contiguous net acres – corresponds to >350 net new well locations • Largest production opera
Slide 5: Australis Oil – Snapshot status update
Australis Oil – Snapshot status update ▪ Shale oil producer in Mississippi from the Tuscaloosa Marine Shale (TMS) ▪ Existing production valued at >US$70 million For personal use only ▪ Operationally cashflow positive incl debt service for last 2 years Australis ▪ Cash balance US$9 million and debt U
Slide 6: Australis Oil – Snapshot status update continued
Australis Oil – Snapshot status update continued ▪ Opec/Russia price war in early 2020 followed by Covid forced US industry to pivot: ▪ From growth to production maintenance For personal use only ▪ Reduced capex / infill drilling / completing “DUCs” ▪ Demonstrating Free Cash Flow ▪ Returning cash to
Slide 7: Australis Oil – Partnering to unlock value
Australis Oil – Partnering to unlock value For personal use only ▪ Oil price outlook favourable with futures pricing US$90 to US$65/bbl long term ▪ TMS appraisal activity over past 8 years has de-risked development ▪ Q1/22 Juniper well further validation ▪ US Industry recovered from low oil price en
Slide 8: Opportunity Summary
Australis Oil For personal use only Opportunity Summary 7
Slide 9: Australis position in the TMS Core
Australis position in the TMS Core ✓ Proven productivity ✓ Large position For personal use only ✓ Strong base-case well economics with significant upside 1 Unique Strategic ✓ Infrastructure, commodity pricing, field rules, supportive regulator and local Opportunity authorities make play attractive ✓
Slide 10: Evolution of the US Shale Industry
Evolution of the US Shale Industry US unconventional oil production growth has steadied as unconventional industry matures Oil Production declining in key US For personal use only shale fields other than the Permian which is driving gentle overall growth ▪ US oil production grew rapidly to over 14 m
Slide 11: US shale industry recent drivers and Australis strategy
US shale industry recent drivers and Australis strategy US unconventional growth has steadied as unconventional industry matures For personal use only ▪ Rig count up from the lows (from YE19: 40% down in Permian, 55% in Eagle Ford and 66% in Bakken) ▪ Currently >650 rigs operating in the US (12 mont
Slide 12: TMS Core – Path to Development & Partnering
TMS Core – Path to Development & Partnering ✓ Reduction in execution risk through the application of technology and For personal use only accumulated knowledge ✓ Data from over $1B in capex in TMS including: • Over 6-year production history 1 Execution De-risked • Considerable technical data • ATS t
Slide 13: Significant Oil Reserve and Resource in TMS Core
Significant Oil Reserve and Resource in TMS Core Significant scale - >350 net well locations on existing acreage based on 250 acre well spacing For personal use only ▪ Net recoverable oil, independently assessed by Ryder Scott, as at YE211 is comparison of Australis 2P and 2C oil based on 98,000 net
Slide 14: Strong Single Well Economics in TMS Core
Strong Single Well Economics in TMS Core ▪ Tier 1 oil well productivity in the TMS Core TMS Core Type Curve v TMS Production For personal use only − Ryder Scott generate three Type Curves for reserve categories. − Historical performance of 2014 ATS TMS wells between mid and high 2021 Ryder Scott Typ
Slide 15: Clear path to substantial reduction in well costs
Clear path to substantial reduction in well costs Reduced well costs from execution efficiencies and refinement will drive further improvements in economics For personal use only Starting point of US$10.9m - Average well cost for 2018 Current Base AFE Australis-drilled case US$9.0m - Short term targ
Slide 16: Future single well economics - sensitivities
Future single well economics - sensitivities Impact of reduced well costs and variable oil price in FFD mode (assumes no improvements to historical well production performance) For personal use only Short term Medium Medium Short term Medium Medium Base AFE Base AFE target term target term target ta
Slide 17: Example Development Scenarios
Example Development Scenarios Field production growth5 will be dramatic with even modest development cases For personal use only ▪ Chart shows field production with a single rig program (blue) and a 5 rig program (green), the latter ramping up the rig count to 5 over 18 months. ▪ At the end of a 10
Slide 18: Financial & Corporate Summary – YE 2021
Financial & Corporate Summary – YE 2021 Operational cashflow safeguarding the valuable TMS asset For personal use only ▪ Operating cashflow US$3.1 million Key Metrics 2021 Unit 2021 Sales Volumes (WI) bbls 410,000 ▪ Financial discipline remains Realised Price US$/bbl $69 ▪ Debt repayment US$4 millio
Slide 19: Safety, Environment & Emissions
Safety, Environment & Emissions Continued safe operations and proactively addressing reduction in emissions For personal use only ▪ Operations continue to be conducted safely – no injuries or near misses ▪ No reportable fluid spills outside of containment protection ▪ Air quality and emissions opera
Slide 20: Summary
Summary Experienced team and sound strategy will ultimately drive shareholder returns. For personal use only TMS Asset Quality Strategic Advantages of TMS ▪ Not guess work! ▪ Large resource of oil Comparable productivity to best areas in ▪ Proximity to infrastructure the USA. Long production history
Slide 21: Appendix
For personal use only Appendix 20
Slide 22: TMS Core Type Curve – Conservative Base Case Economics
TMS Core Type Curve – Conservative Base Case Economics Assumes completed lateral length of 7,200 ft only, opex assumptions are based on history and the capex costs are current full field development projections (see slide 14) – no future upsides are assumed in the base case For personal use only Bas
Slide 23: Footnotes
Footnotes For personal use only 1. All estimates and risk factors taken from Ryder Scott, report prepared as at 31 December 2021 and generated for the Australis concessions to SPE standards. See ASX announcement released on 7 February 2022 titled “Reserves and Resources Update Year End 2021”. Austra
Slide 24: Glossary
Glossary Unit Measure Unit Measure B Prefix - Billions bbl Barrel of oil MM or mm Prefix - Millions boe Barrel of oil equivalent (1bbl = 6 mscf) For personal use only M or m Prefix - Thousands scf Standard cubic foot of gas /d Suffix - per day Bcf Billion standard cubic foot of gas Abbreviation Desc
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