Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — Investor Presentation (May 2016)
30 slides from Amplitude Energy's investor presentation, May 11, 2016
Slide 1: Bungaloo-1, Otway Basin
For personal use only Bungaloo-1, Otway Basin
Slide 2: Important notice and disclaimer
This investor presentation (“Presentation”) is issued by Cooper Energy Limited ABN 93 096 170 295 (“Cooper Energy” or “COE”). For personal use only Summary information: This Presentation contains summary information about Cooper Energy and its activities as at the date of this Presentation and shoul
Slide 3: Indonesian asset sales and equity raising
Indonesian asset sales For personal use only • Exploration assets: Sumbagsel and Merangin III sale now unconditional and expected to complete within early June 2016 • Production assets: bids currently being evaluated for Tangai-Sukananti KSO March FY16 quarterly report and subsequent announcements •
Slide 4: Cooper Energy at a glance
For personal use only 1 2 3 4 450,000~500,0001 bbl pa Gippsland Basin Gas Hub Cash & investments: $27 million2 Management experienced in Operating cost2: A$30/bbl 2C Contingent Resource: 347 PJ3 gas commercialisation Zero debt2 Cooper Basin Western Flank Low on cost curve, well located Board experie
Slide 5: Market and asset portfolio
For personal use only Market • Market-driven approach • Building customer relationships & portfolio Cooper Basin • Cash-generating oil production Gippsland Basin Otway Basin • Gas resources, prospects and projects • Gas exploration acreage • Largest gas supply source for Eastern • Ideally located: c
Slide 6: Company history and milestones
For personal use only 2015 2012 Sole project enters FEED Acquires Somerton BMG Business Case identifies 2002 Energy and strong Otway Manta gas opportunity position First gas sales agreement: O-I Cooper Energy listed, then cash generating oil Australia Builds position in BAS production western flank
Slide 7: Production costs
For personal use only Production costs Cooper Energy oil production Direct cost A$ 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 Transport expenses Q3 Q3 YTD YTD 13 Operating costs 2010 2011 2012 2013 2014 2015 2016 • March Qtr YTD direc
Slide 8: Production growth outlook
For personal use only Current FY20: FY22: 0.5 million boe Phase 1: Sole gas project Phase 2: Sole+ Manta gas and liquids • 100% oil • over 2 million boe pa • ~ 5 million boe pa • Ongoing drilling required to • gas is ~ 85% total COE production • gas is ~ 85% total COE production maintain production
Slide 9: Eastern Australia domestic demand and contracted supply
For personal use only Eastern Australia domestic demand and contracted supply PJ 2,500 Eastern Australian gas demand 2,000 NGP 1,500 Cooper Otway Bass Gippsland 1,000 Surat-Bowen Demand 500 Source: EnergyQuest EnergyQuarterly March 2016 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 East
Slide 10: South East Australia gas demand and supply balance
For personal use only South East Australia gas demand vs production/contract from existing suppliers Forecast South East Australia gas demand and supply balance PJ pa Pj pa 500 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100 450 400 50 350 = supply/ 300 demand 0 250 balance 200 -50 150 -100
Slide 11: Gladstone drawing gas from Eastern Australia
For personal use only Gladstone drawing gas from Eastern Australia • Existing producing fields in decline • Eastern Australia: new contracts needed from 2018/19 • Queensland and Cooper Basin commitments to Gladstone LNG • Gladstone taking gas from sources previously focussed on SE Australia • CSG ex
Slide 12: Gippsland Basin gas hub assets
For personal use only to Melbourne Eastern Gas Pipeline to Sydney Orbost Gas Hub COE 50%, STO 50% & Operator Sole Gas field COE 50%, STO 50% & Operator Patricia Baleen (depleted) (STO 100%) ~2411 PJ Longtom (SVW 100%) ~2.61 MM bbl ~1061 PJ Manta Gas field COE 652% & Operator, BPT2 35% 1 2C Contingen
Slide 13: Manta development concept
For personal use only • Simple reservoir structure • Conventional recovery • Dry gas, pipeline spec CO2 • Simple development concept planned − single near-horizontal subsea well for good reservoir access − dedicated pipeline and umbilicals to existing Orbost plant – modifications to existing Orbost
Slide 14: Sole gas project overview
For personal use only • 241 PJ (100% basis) over 9-10 years Gas & revenue • COE share ~12.5 PJ pa or 121 PJ over 9 -10 years • Pricing within market forecast range; typically $7/GJ - $8/GJ • Sale of gas and tolling revenue from Orbost Gas Plant (COE 50%) • To be determined by current FEED process du
Slide 15: Indicative Sole gas sales
For personal use only Indicative PJ COE sales 14 12 10 Opportunity gas 8 To sell pre-FID 6 AGL & O-I agreements 4 2 0 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 • Pre-FID target of 10 PJ pa contracted: currently 7.6 PJ pa subject to agreements • $7/GJ to $8/GJ give robust economics and s
Slide 16: Sole project cash flows and NPV
For personal use only Indicative illustration • Majority of cash outflow within 20 months of first gas Cash flows − enhances economics • NPV builds rapidly as project is derisked − from FID to first gas and beyond • Simple project design, capital and operating cost metrics • Strong stable ongoing ca
Slide 17: Path to FID
For personal use only Gas contracts • Targeting 10 PJ pa for FID • Agreements with O-I & AGL for 7.6 PJ pa Plant & facilities Finance • Front End Engineering & Design • Funding strategy done • 63% complete end-March • Under budget • Funding options – select optimum • On plan FID • Maximise sharehold
Slide 18: Upcoming milestones
For personal use only FY16 FY17 Dec Qtr Mar Qtr Jun Qtr Sept Qtr Gippsland data room opens FEED on schedule Indonesia data room opened Gas sales contract secured Indonesia exploration agreed sale Indonesia production asset sales process FEED complete Bankable gas contracts Indonesia expl
Slide 19: Investment summary
For personal use only ~ 95 PJ Contracted gas • Firm gas sales agreements for 95 PJ that are expected to generate revenue of $660 million to $760 million (COE current share) at gas prices of $7/GJ to $8/GJ over 8-10 years ~ 90 PJ Uncommitted gas • Gas available for contracting to eastern Australian c
Slide 20: Gas development timeline
For personal use only FID First Gas Gas Production FID Business First Gas Case Prod'n Manta-3 Sole Development Manta Development Sole Sole Gas Sales Agreements Manta Gas Sales Agreements LOIs Sole Reserves Manta Reserves Booking Booking 1 Indicative only and subject to review at key milestones and j
Slide 21: Indonesia and Tunisia divestment and withdrawal
For personal use only Data room Withdrawal plan • Initiated December quarter • Process ongoing on permit by permit basis Exploration acreage: Sumbagsel and Merangin III PSCs (COE - Nabeul: joint venture has withdrawn. Awaiting formal 100%) confirmation of agreement to exit terms. COE has provided in
Slide 22: Funding headroom for capital expenditure
For personal use only Substantial headroom to fund identified capital expenditure $ million • Financial assets in place at 31 March 16 of $27 million plus: Finance facilities Up to 40 – ~A$10 million net proceeds from Indonesian exploration acreage divestment in place1 – equity raising – finance fac
Slide 23: Equity raising details and key dates
For personal use only • Institutional placement to sophisticated, professional and other institutional investors, to raise up to approximately Institutional A$18 million Placement • Up to ~83 million shares to be issued, representing up to 25% of issued capital, within existing placement capacity •
Slide 24: International offer restrictions
The distribution of this Presentation and the offers referred to in this Presentation (“Offer”) in certain jurisdictions may be restricted by law and therefore persons into whose possession this Presentation comes should inform themselves about and observe any restrictions, including those set out i
Slide 25: Switzerland
Switzerland The Shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange (“SIX”) or on any other stock exchange or regulated trading facility in Switzerland. This Presentation has been prepared without For personal use only regard to the disclosure standards
Slide 26: New Zealand and United States
New Zealand This Presentation has not been registered, filed with or approved by any New Zealand regulatory authority under the Financial Markets Conduct Act 2013 (“FMC Act”). The Shares are not being offered or sold in New Zealand (or allotted For personal use only with a view to be offered for sal
Slide 27: Appendices
For personal use only Appendices
Slide 28: Hedge arrangements
For personal use only Hedge arrangements Q4 FY16 H1 FY17 H2 FY17 H1 FY18 Total (bbl remaining as at 31 March 2016): A$80.00 – 90.57: zero cost collar options 30,000 - - - 30,000 A$57.00 – A$69.70: zero cost collar options 30,000 60,000 30,000 120,000 A$54.45 floor + 50% above floor: zero cost - 30,0
Slide 29: Reserves and resources notes
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 range of uncertainty relating to each of the key r
Slide 30: Glossary and 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 to 30 June H1 H