Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — Exchange SA Bungaloo-1, Otway Basin investment conference (June 2016)
27 slides from Amplitude Energy's conference presentation, Jun 23, 2016
Slide 1: Gas business & oil production
For personal use only Gas business & oil production Presentation to Exchange SA Bungaloo-1, Otway Basin investment conference Adelaide 23 June 2016
Slide 2: Important Notice – Disclaimer
Important Notice – Disclaimer The information in this presentation: For personal use only • Is not an offer or recommendation to purchase or subscribe for shares in Cooper Energy Limited or to retain or sell any shares that are currently held. • Does not take into account the individual investment o
Slide 3: An introduction
An introduction For personal use only Cooper Energy is a $100 million market cap exploration & production company with: • cash generating Cooper Basin oil production; and • an emerging gas business possessing supply contracts with blue-chip customers in eastern Australia and gas plant and resources
Slide 4: Cooper Energy has changed: pre-2011
Cooper Energy has changed: pre-2011 Cash generated in the Cooper Basin directed to international exploration For personal use only Cooper Basin oil production International oil exploration cash • Western Flank: PEL 92 Joint Venture • Australia operated by Beach • Indonesia • Low cost - high margin p
Slide 5: Since 2011 – exit international & building cash generating gas business
Since 2011 – exit international & building cash generating gas business Eastern Australia gas opportunities foreseen and targeted in 5 year strategy to build a gas business For personal use only Cooper Basin oil production Eastern Australian gas business cash 4 essential criteria: • Bottom end of co
Slide 6: Gas demand & supply outlook for eastern Australia
Gas demand & supply outlook for eastern Australia1 LNG demand is impacting gas flows and contributing to looming gas supply issues For personal use only Domestic demand and contracted supply PJ Gladstone drawing gas from Eastern Australia 2,500 2,000 1,500 NGP Cooper Basin 1,000 Otway Bass Gippsland
Slide 7: The opportunity in gas supply to south east Australia
The opportunity in gas supply to south east Australia* Declining supply from main basins and growing shortfall from 2018 For personal use only South East Australia gas demand vs production/contract Forecast South East Australia gas demand and from existing suppliers supply balance PJ pa PJ pa 2016 2
Slide 8: Australian portfolio
Australian portfolio Production and exploration assets built around market fundamentals and foreseeable development For personal use only Market • Market-driven approach • Building customer relationships & portfolio • Contracts with utilities & industrials Cooper Basin • Cash-generating oil producti
Slide 9: Indicative Cooper Energy production from existing assets
Indicative Cooper Energy production from existing assets1 Current projects have potential to lift production1 from 0.5 million to exceed 5 million boe pa For personal use only FY22: Current FY20: Phase 2: Sole + Manta gas and 0.5 million boe Phase 1: Sole gas project liquids (subject to appraisal) o
Slide 10: Gippsland gas projects and Orbost Gas Hub
Gippsland gas projects and Orbost Gas Hub Marketable gas volumes, conventional reservoir, existing plant and pipeline access For personal use only to Melbourne Eastern Gas Pipeline to Sydney Orbost Gas Hub COE 50%, STO 50% & Operator Phase 1 Sole Gas field COE 50%, STO 50% & Operator Patricia Baleen
Slide 11: Sole Gas Project
Sole Gas Project Simple stand alone field development utilising existing plant For personal use only • 241 PJ1 (100% basis) over 9 -10 years • COE share 50% ~12.5 PJ pa or 121 PJ over 9 -10 years • Pricing within market forecast range; typically $7/GJ - $8/GJ • In FEED for development to supply gas
Slide 12: Sole commercialisation workstreams on schedule for September FID recommendation
Sole commercialisation 4 workstreams on schedule for September FID recommendation and reserves uplift For personal use only Gas contracts • Agreements with O-I & AGL for 7.6 PJ pa • Balance to be contracted for best value Plant & facilities Finance • Front End Engineering & Design • Funding strategy
Slide 13: Phase 2: Incorporation of Manta into a Gippsland Basin gas hub concept
Phase 2: Incorporation of Manta into a Gippsland Basin gas hub concept Manta development1 offers value-add, synergies with Sole and exploration upside For personal use only • Manta offers gross 106 PJ Contingent Resource2 (2C) with significant exploration upside identified in deep reservoirs • Oppor
Slide 14: Sole and Manta gas production profile
Sole and Manta gas production profile1: 100% Joint Venture volume Gas sales revenue of $2.4 - $2.8 billion at $7/GJ - $8/GJ and additional revenue from liquids For personal use only Indicative gross PJ 60 50 24 24 24 40 14 12 9 30 7 Phase 2: Manta 5 25 25 25 25 25 25 25 25 20 Phase 1: Sole 25 10 13
Slide 15: On schedule
On schedule The next four months are expected to see intense activity as Sole project approaches FID For personal use only June quarter 2016 July - October 2016 Oversubscribed institutional placement raises $18.4 million FEED completed (July) Share purchase plan (SPP) raises $3.9 million Pre
Slide 16: Outlook
Outlook Existing assets & firm plans hold near and medium term value-creation catalysts For personal use only Coming six months: 2017 - 2019 Ongoing Cooper Basin oil production Sole gas project completed Gippsland gas data room outcome Portfolio of long and short term gas sales contracts S
Slide 17: For personal use only
For personal use only
Slide 18: Appendices
For personal use only Appendices
Slide 19: Company snapshot
Company snapshot ASX listed, strong balance sheet and stable share register Key figures For personal use only Cooper Energy is an independent Australian exploration and Shares on issue2 435.2 mill production company Shareholders2 4,939 • Cash generating from production of approx. 450,000 - 500,000 b
Slide 20: Oil production
Oil production Cash generation from maintained output of 450,000 - 500,000 barrels per annum at low cost For personal use only Production costs Cooper Energy oil production Direct cost A$ per barrel million barrels FY16 Q3 YTD 0.59 29 Netback 0.52 0.47 0.49 0.48 0.50- 0.41 to 5 Royalties 0.45 12 Tra
Slide 21: Gippsland gas projects indicative timeline
Gippsland gas projects indicative1 timeline Key commercial and project milestones for value accretion For personal use only Calendar Year 2015 2016 2017 2018 2019 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Sole Gas Project Select FID Define First Ga
Slide 22: Gippsland gas projects Phase 1: Sole field development
Gippsland gas projects Phase 1: Sole field development Simple reservoir and development concept For personal use only • Simple reservoir structure defined by two wells and seismic • Excellent reservoir with porosity >30% and permeability >1 Darcy • Dry gas, pipeline spec CO2 • Simple development con
Slide 23: Manta gas
Manta gas Gas resource with substantial potential in exploration targets below Manta gas field For personal use only • COE Business case identified economic opportunity for Manta development A A’ • Manta gas attracting enquiries from gas buyers • Untested Golden Beach reservoirs identified within th
Slide 24: Cooper Basin
Cooper Basin Low cost cash generating production; capex scaled back For personal use only • Q3 16 YTD oil production of 250 kbbls • March YTD operating cash cost of A$29.77/bbl including transport and royalties • All drilling deferred into FY17 • Callawonga facilities expansion project studies ongoi
Slide 25: Otway Basin
Otway Basin Drilling results and analysis confirm prospectivity for conventional gas and shale potential For personal use only • Analysis of Jolly-1 and Bungaloo-1 well data in PEL 494 and PRL 32 has confirmed: – a deep conventional gas play in Lower Sawpit Formation – Casterton Formation unconventi
Slide 26: Notes on calculation of Reserves and Resources
Notes on calculation of Reserves and Resources The approach for all reserve and resource calculations is consistent with the definitions and guidelines in the Society of Petroleum Engineers (SPE) 2007 Petroleum Resources Management System (PRMS). The resource estimate methodologies incorporate a ran
Slide 27: Abbreviations
Abbreviations $, A$ Australian dollars unless specified otherwise For personal use only Bbls barrels of oil boe barrel of oil equivalent bopd barrel of oil per day EBITDA earnings before interest, tax, depreciation and amortisation FEED Front end engineering and design FY Financial year; 12 months t
Cooper Energy — Exchange SA Bungaloo-1, Otway Basin investment conference (June 2016) on 6ix