Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — 2016 Noosa Mining & Exploration Conference
27 slides from Amplitude Energy's conference presentation, Jul 21, 2016
Slide 1: Bungaloo-1, Otway Basin
For personal use only Bungaloo-1, Otway Basin
Slide 2: Important information and 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 objectives or the financial sit
Slide 3: Cooper Energy company overview
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 which are cost-c
Slide 4: FY16 achievements: gas projects, portfolio, capital
For personal use only Gas projects: Portfolio: Capital: moved ahead focussed on Aust. strengthened Resource upgrades for Sole and Indonesian exploration assets sold Oversubscribed institutional placement Manta gas fields Indonesian production assets Share purchase plan Gas supply Heads o
Slide 5: Market-driven approach and asset basins
For personal use only Market • Market-driven approach • Building customer relationships & portfolio • Contracts with utilities & industrials Cooper Basin • Cash-generating oil production Otway Basin • Gas exploration acreage • Ideally located: close to markets and pipelines • Conventional and unconv
Slide 6: Domestic demand and contracted supply
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 500 Surat-Bowen Demand 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Source: EnergyQuest EnergyQuarterly May 2016 1 Eas
Slide 7: South east Australia gas demand vs supply
For personal use only Gas demand vs production/contract from existing suppliers for Forecast south east Australia gas demand and supply south east Australia balance PJ pa PJ pa 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500 50 450 400 0 350 = supply/ 300 demand balance -50 250 200 -100 150
Slide 8: Gippsland basin gas supply and Victorian wholesale gas price
For personal use only Gippsland basin gas supply 2016 vs 2015 Victorian wholesale gas price 2015 vs 2016 average daily flows TJ, by month April to July $/GJ 1400 45 1200 40 35 1000 30 800 25 600 20 15 400 10 200 5 0 Apr- Apr- May- May- Jun- Jun- Jul- Jul- 0 15 16 15 16 15 16 15* 16* January February
Slide 9: Orbost Gas Hub
For personal use only Orbost Gas Hub COE 50%, STO 50% & Operator Phase 1 Sole Gas field COE 50%, STO 50% & Operator Patricia Baleen (depleted) (STO 100%) ~2411 PJ Longtom (SVW 100%) ~2.61 MM bbl ~1061 PJ Phase 2 1 2C Contingent Resources 100% joint venture volume. Manta liquids resource of 2.6 MM bb
Slide 10: Production growth profile: Phase 1 and Phase 2
For personal use only Current FY20: FY22: 0.5 million boe Phase 1: Sole gas project Phase 2: Sole + Manta gas and over 2 million boe pa liquids (subject to appraisal) ~ 5 million boe pa Manta liquids Manta gas Sole gas Existing oil with development drilling Oil production 0.5 MMbbls Gas production 1
Slide 11: Sole gas project: sales, FEED and funding
For personal use only • Agreements with O-I & AGL for 7.6 PJ pa • Balance to be contracted for best value • Front End Engineering & Design • Funding strategy done • 93% complete end-June • Funding options: select optimum • Under budget • Maximise shareholder return • On plan • Data room in progress
Slide 12: Production costs
For personal use only Production costs Cooper Energy oil production Direct cost A$ per barrel million barrels FY16 0.59 0.52 31.3 Netback 0.47 0.49 0.47 0.48 0.41 Royalties 5.0 Transport expenses 0.28 - 12.0 - Operating costs 0.24 12.5 2010 2011 2012 2013 2014 2015 2016 2017G • FY17 Production guida
Slide 13: Recent achievements and upcoming milestones
For personal use only Oversubscribed institutional placement raises Completion of Indonesian production asset sale $18.4 million Sole FEED costings completed (July) Share purchase plan (SPP) raises $3.9 million Preparation of Sole FID proposal Completed sale of Indonesian exploration ass
Slide 14: Next 12 months and investment outlook
For personal use only Ongoing low cost Cooper Basin oil production Sole gas project completed Gippsland gas data room outcome Portfolio of long and short term gas sales contracts Sole project construction underway Manta exploration upside addressed Manta project pathway determined Ma
Slide 15: For personal use only
For personal use only
Slide 16: Appendices
For personal use only Appendices
Slide 17: Key figures
For personal use only Key figures Cooper Energy is an independent Australian exploration and Shares on issue2 435.2 mill production company Shareholders2 4,911 • Cash generating Cooper Basin oil production Market capitalisation2 $102 mill • Strong balance sheet, zero debt Cash & investments at 30 Ju
Slide 18: Sole gas project and Orbost Gas 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 from Jan quarter 2019 • Simple development plan Orbost Gas Plant • Strategic lo
Slide 19: Manta gas project
For personal use only • Manta offers gross 106 PJ Contingent Resource2 (2C) with significant exploration upside identified in deep reservoirs • Opportunity for capital efficient development through use of existing infrastructure and coordinated development • Gippsland Gas Hub centred around Orbost G
Slide 20: Gippsland gas projects indicative production
For personal use only Indicative gross PJ 60 50 24 24 24 40 14 12 9 30 7 5 25 25 25 25 25 25 25 25 20 Phase 2: Manta 25 10 13 7 Phase 1: Sole 0 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 • Gippsland gas projects can produce approximately 350 PJ (gross) from current projects • $340 millio
Slide 21: Indicative project 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 22: Sole 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 concept planned − single near-horizontal subsea well for good reservoir access − dedicated pipeline
Slide 23: Manta resources and exploration upside
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 the same structure below proven gas in the Manta field • Gas resource of 106 PJ 2C Contingent and
Slide 24: Cooper Basin oil
For personal use only • FY16 YTD oil production of 317 kbbls; impacted by deferral of drilling to FY17 • FY16 direct operating cash cost of A$29.65/bbl including transport and royalties • Seismic inversion studies and prospect interpretation ongoing • Drilling to resume in August 2016 at Callawonga
Slide 25: Otway Basin exploration
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 unconventional shale gas play • Victorian acreage subject of application to suspend and extend due to moratorium on
Slide 26: Reserves and resources calculation 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 27: 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
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