Otto Energy Limited · ASX:OEL
Otto Energy — Merger or Acquisition (August 2011)
24 slides from Otto Energy's merger presentation, Aug 12, 2011
Slide 1: Galoc Oil Field Acquisition
For personal use only ASX : OEL Galoc Oil Field Acquisition Matthew Allen, Acting Chief Executive Officer August 2011
Slide 2: Disclaimer
Disclaimer For personal use only This presentation does not constitute an offer to sell securities and is not a solicitation of an offer to buy securities. It is not to be distributed to third parties without the consent of Otto Energy Ltd (the “Company”). This presentation contains forward-looking
Slide 3: Otto Overview
Otto Overview • Listed 2004, Perth head office • Galoc – Increase working interest to 33% direct interest For personal use only • ~1.13 billion shares on issue and 48 million options • Acquires 100% control of GPC and becomes Operator of • Market capitalisation of ~A$92 million at A$0.08 Galoc oil f
Slide 4: Acquisition Overview
Acquisition Overview For personal use only • Acquisition of remaining shareholding interest in Galoc Diagram of Holdings Production Company WLL from Vitol Group • Increasing GPC shareholding from 31% to 100% PRE ACQUISITION POST ACQUISITION (post-completion) • GPC operates SC14C, which includes the
Slide 5: Strategic Benefits of Acquisition for Otto
Strategic Benefits of Acquisition for Otto For personal use only Move to Operatorship of producing Galoc field; important growth step for Otto Greater share of revenue, providing additional funds for investment into future growth Purchase price equivalent to US$11.50 per barrel (2P reserves + 2C res
Slide 6: Acquisition Funding
Acquisition Funding For personal use only • Otto to fund 34.6% of purchase price, being US$18.7 million • Otto’s full portion of transaction to be funded from existing cash reserves • Total Purchase Price US$18.7m net to Otto • US$1.87 million cash consideration on execution • US$16.83 million cash
Slide 7: Overview of SC14C: The Galoc field
For personal use only Overview of SC14C: The Galoc field 7
Slide 8: Overview: SC14C Offshore NW Palawan
Overview: SC14C Offshore NW Palawan For personal use only Background • OEL holds 33.0% direct ownership (through Galoc Production Company WLL) (post-acquisition from Vitol) • Operator : Galoc Production Company WLL (GPC) • Discovered in 1981, production commenced October 2008 • 35o API oil, low sulp
Slide 9: Reserves upgrade and improved uptime
Reserves upgrade and improved uptime Production Q2 2011 Update Net OEL 18.78% For personal use only Current rate ~6,750 bopd Production 116,106bbls Production to date 7.54 MMbbls Liftings 128,648 bbls Revenue, Costs and Netback Cash receipts from GPC US$7.66million Last Cargo (June 2011) US$113.12 /
Slide 10: Phase 2 Development and Near Field Exploration
Phase 2 Development and Near Field Exploration Phase 2 Galoc North Prospect: For personal use only • Phase 2 evaluation ongoing • Areal Extent ~12km2 • Potentially involves between 1 and 3 new wells • Potential HC Column ~240m • 5km tie-back to existing facilities Unlock 2 to 8 MMbbls of Contingent
Slide 11: Improved Mooring and Riser System
Improved Mooring and Riser System For personal use only Project Outline: • New system to substantially increase operating uptime of the field (greater than 95% • Project is 40% complete and on track for successful delivery • Field outage planned in Q4 2011, coinciding with the typical peak in the mo
Slide 12: Overview of Otto Energy
For personal use only Overview of Otto Energy 12
Slide 13: Refocused Portfolio and OEL's Sweet Spot
Refocused Portfolio and OEL’s Sweet Spot For personal use only • The Philippines represents a core focus area for growth • Otto acquired over 2,400 km2 of 3D and 760 kilometres of 2D seismic during 2010 • Portfolio of 4 Service Contract areas • Approx 17,000 km2 gross of highly prospective onshore a
Slide 14: Fundamentals / Capital Structure
Fundamentals / Capital Structure Capital Structure Shareholders For personal use only Fully paid ordinary shares 1.13b Molton Holdings 21.3% Unlisted options1 48m Santo Holdings 21.3% Acorn 7.4% Performance Rights 0 Directors 3.7% Market capitalisation2 92m Shareholders 3,191 Cash (at June 2011) US$
Slide 15: Board & Management Team with Strong E&P Industry Expertise
Board & Management Team with Strong E&P Industry Expertise For personal use only TBA CHIEF EXECUTIVE CHAIRMAN OFFICER RICK CRABB BJuris (Hons), CFO AND COMPANY LLB, MBA DIRECTOR DIRECTOR SECRETARY IAN BOSERIO MATTHEW ALLEN JOHN JETTER BSc Hons LLB and BEc, B.Bus, CA, F.Fin, MAICD (Geophysics) INSEAD
Slide 16: SC55 Permit Overview
SC55 Permit Overview For personal use only Joint Venture Partners: Name Percentage OEL (through 100% subsidiary NorAsian Energy Ltd) 93.18 Trans-Asia Oil & Energy Development Corporation 6.82 Work Program: Sub-Phase Date Commitment/cost(min US$) 4 Aug 11 – Aug 12 1 Deepwater Well/($3m) 5 Aug 12 – Au
Slide 17: SC55 Carbonate Gas Prospect & Lead Portfolio
SC55 Carbonate Gas Prospect & Lead Portfolio An impressive portfolio of gas and condensate targets, aggregating into an emerging For personal use only major regional offshore trend, parallel to the island of Palawan, Philippines Total unrisked potential Mean Recoverable Resources (Nido level carbona
Slide 18: SC55 Leading Drilling Candidate – CINCO
SC55 Leading Drilling Candidate – CINCO For personal use only mss Malampaya CINCO Top Nido Depth Top Nido 3200 Map A reefal /platform carbonate complex 3400 CI: 200m 3600 3800 4000 CINCO 4200 4400 4600 500 m 4800 Maps of same scale Cinco Prospect (OEL WI post farm-down 33.18%) CINCO 53 km2 Comparabl
Slide 19: SC55 Hawkeye Lead
SC55 Hawkeye Lead For personal use only Hawkeye Prospect (OEL WI post farm-down 33.18%) Location Offshore, SW Palawan Water Depth 1,690 Metres Objective Depth 2,800 Metres Hawkeye Prospect 50 km2 Areal Closure: Area of Closure 50km2 Up to 500m column height STOIIP 87-484-1539 (mean of 680 Hawkeye Fl
Slide 20: Philippines Visayan Exploration
Philippines Visayan Exploration For personal use only Interpretation/ 2011 Activity Licence SC69 SC51 Northern Block Prospect Maturation 79% WI 5280km2 40% WI 1660km2 Work program being SC51 Follow up finalised for further exploration in the block New Completed 3D seismic SC69 210km² acquisition in
Slide 21: SC69 Maturing to drillable status with 3D seismic
SC69 Maturing to drillable status with 3D seismic OEL WI 79% Lampos Lampos South For personal use only Duhat-1 Location Off-shore Visayan Basin Presently Drilling Water Depth 740 Metres 714 Metres Objective Depth 1,250 Metres 1,350 Metres Closure Area 14.2 km2 9.8 km2 SC69 Closure Height 300m 330m S
Slide 22: Anticipated Philippines look ahead
Anticipated Philippines look ahead Otto 2009 2010 2011 2012 2013 2014 2015 For personal use only Activity at July 2011 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 Q1 Q4 PALAWAN EXPLORATION & DEVELOPMENT SC14C Turret Conversion Production Galoc 3D seismic Front End Engineering & Design Phase 2 Sanction Phase
Slide 23: Entry into East Africa
Entry into East Africa For personal use only In addition to the Philippines, Otto is exploring a number of different entry points to East Africa: • Recent large oil and gas discoveries in the region • Play type complements Otto’s existing portfolio • Provides onshore low cost ground floor exploratio
Slide 24: In closing....
In closing.... For personal use only • Otto to take over Operatorship of the Galoc oil field post acquisition through holding 100% of the interest in Galoc Production Company WLL • Adds to experience and benefits Otto in search for new projects • Acquisition will result in the increase in Otto’s Gal