High Peak Royalties Limited · ASX:HPR
High Peak Royalties — Investor Presentation (October 2018)
15 slides from High Peak Royalties's investor presentation, Oct 22, 2018
Slide 1: Investor Presentation
For personal use only Investor Presentation October 2018
Slide 2: Disclaimer
Disclaimer For personal use only The material in this presentation (material) is not and does not constitute an offer, invitation or recommendation to subscribe for, or purchase any security in High Peak Royalties Limited (HPR) nor does it form the basis of any contract or commitment. HPR makes no r
Slide 3: Corporate Overview
Corporate Overview For personal use only Capital Structure – HPR.ASX Share Price Since January 2017 7.00 Post Cap As at 30 June 6.00 Raise 2018 Cents per share (24/10/18) 5.00 4.00 Ordinary Shares on Issue 164m 186m 3.00 2.00 Market Capitalisation at $0.05/share $8.2m $9.3m 1.00 0.00 Cash Balance $1
Slide 4: Why Royalties?
Why Royalties? For personal use only • Royalties provide a share (%) of the revenue • No direct exposure to costs • Registered on land title • Can be long life: – For example with a production licence • Can have significant option value: – Exploration licences – Development adjacent to or below prod
Slide 5: Acquisition of Planet Gas royalties in United States
Acquisition of Planet Gas royalties in United States For personal use only • Acquisition of Planet Gas USA Inc as announced to the market on 15 October 2018 • Key terms of the acquisition, subject to conditions precedent: • 3% royalty on properties in USA • 2,400 producing wells • Long life producti
Slide 6: Existing HPR Royalty Portfolio covering Australia's Major Basins
Existing HPR Royalty Portfolio covering Australia’s Major Basins For personal use only Cooper Eromanga Basin Santos Browse Basin Beach Energy Conoco Phillips PetroChina Bowen Basin Karoon Gas Origin Energy Origin Energy Conoco Phillips Sinopec North Carnarvon Basin Quadrant Energy Karoon Gas Surat B
Slide 7: Queensland Coal Seam Gas and Deep Gas Potential
Queensland Coal Seam Gas and Deep Gas Potential For personal use only Main Gas Pipeline to • Origin Energy / APLNG Gladstone LNG Plants pays HPR 2.25% royalty on Peat gas field • Outcome of deep well (South Burunga-2) anticipated in Origin Energy Quarterly Production Report due 30 October • HPR also
Slide 8: Unlocking the Amadeus – Dukas
Unlocking the Amadeus – Dukas For personal use only • Dukas is the largest onshore target (520 km2 closure) in Australia • Santos to drill early 2019 • 2.4 tcf gas and 493 bcf Helium • Helium has very high value (>10 x gas pricing)
Slide 9: Unlocking the Amadeus – Northern Gas Pipeline (NGP) a catalyst for drilling
Unlocking the Amadeus – Northern Gas Pipeline (NGP) a catalyst for drilling For personal use only 1.0% Overriding Royalty • NGP a catalyst to stimulate additional drilling Operators- Santos, Central Petroleum and in the Amadeus Basin. Jemena looking to Mosman Oil and Gas upgrade from 90 Tj to 700 Tj
Slide 10: Bass Strait – Longtom
Bass Strait – Longtom For personal use only • SGH Energy / Seven Group Holdings 0.3% Overriding Royalty Interest have flagged that the Longtom 3 and Operated by SGH Energy (Seven Group Holdings) Longtom 4 production wells are ready for production. Additional potential from Longtom 5 which is “drill
Slide 11: Multiple oil royalties provide additional optionality
Multiple oil royalties provide additional optionality For personal use only • US royalties over wells 3.6/4.0% Net Profit Revenue Interest in the East Texas, Operated by Santos Permian and Texas Gulf Coast Basins • Tintaburra (ATP 299) Net Profit royalty is highly leveraged to oil price • Successful
Slide 12: HPR Post Completion of USA Royalty Acquisitions
HPR Post Completion of USA Royalty Acquisitions For personal use only • Revenue generation from multiple royalties • On completion of Planet Gas acquisition • US $15m facility with Macquarie Bank • Additional cash flow • Potential upside from near term exploration • Deep well being drilled by Origin
Slide 13: Opportunity
Opportunity For personal use only • Fundamental benefits of a royalty company = no direct exposure to capital or operating expenditure • Recently announced acquisition of Planet Gas Inc shows High Peak to be an active market participant • Survived the oil price downturn with a strong balance sheet (
Slide 14: High Peak Favourably Positioned Relative to Other ASX Listed Royalty Vehicles
High Peak Favourably Positioned Relative to Other ASX listed Royalty Vehicles For personal use only High Peak (ASX.HPR)* Fitzroy River (ASX:FZR) Royalco (ASX:RCO) (post committed capital raise) Mkt Cap $15.92m $10.0m $9.45m Net Cash + Liquid Investments $11.93m $2.06m $2.35m Enterprise Value $3.98m
Slide 15: Summary of Royalty Interests Post Acquisition
Summary of Royalty Interests Post Acquisition* Project / Property Royalty Operator / For personal use only State Location Production / Near Term Production Interest Owner Peat Gas Field (PL 101) QLD Onshore, Bowen Basin 2.10% Origin Longtom Gas Condensate Field (VIC L29) VIC Offshore, Gippsland Basi
High Peak Royalties — Investor Presentation (October 2018) on 6ix