Australis Oil & Gas Ltd. · ASX:ATS
Australis Oil & Gas — Investor Presentation (September 2017)
32 slides from Australis Oil & Gas's investor presentation, Sep 28, 2017
Slide 1: Investor Presentation
For personal use only Australis Oil & Gas Limited September 2017 Investor Presentation Large strategic acreage position in one of the few emerging oil shale basins in the USA Investor Presentation
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer For personal use only This presentation has been prepared by Australis Oil & Gas Limited ACN 609 262 937 (ASX: ATS) (Australis). Summary of information: This presentation contains general and background information about Australis’ activities current as at the date of
Slide 3: Investment Highlights
Investment Highlights Positioned for significant value accretion For personal use only Largest acreage holder in the ‘core’ of the Tuscaloosa Marine Shale (TMS) Operator of TMS oil production per well similar to the best areas within US shale such as Eagle Ford Quality Assets Large acreage hol
Slide 4: Company Snapshot
Company Snapshot Australis has existing reserves, production and revenue, no debt and a strong institutionally For personal use only dominated register with significant contribution from Board & Management Listed on the ASX in July 2016 Capital Structure Executing on strategy of securing an inve
Slide 5: Directors & Management
Directors & Management Demonstrated track record in oil & gas For personal use only Jon Stewart – Non-Executive Chairman Graham Dowland – CFO & Finance Director 25 years in the upstream oil and gas industry 25 years experience in the oil and gas industry Founder and former Chairman and CEO of
Slide 6: Aurora Value Creation Curve
Aurora Value Creation Curve The Australis management team created significant shareholder value at Aurora For personal use only Aurora Share Price Performance – 1 January 2005 to 13 May 2014 6
Slide 7: Corporate History
Corporate History A considered strategy and a disciplined approach to shareholder capital For personal use only Australis formed in late 2014 following sale of Aurora – the same team Strategy set during 2014/15 as oil prices fell: • Secure an inventory of future oil and drilling locations with t
Slide 8: The TMS Delivers on Early Phases of Strategy
The TMS Delivers on Early Phases of Strategy TMS is one of the few remaining undeveloped US onshore resource plays For personal use only The TMS represents a very significant opportunity for Australis, arising principally due to timing and quirks of history The two acquisitions and ongoing lease
Slide 9: Tuscaloosa Marine Shale
For personal use only Tuscaloosa Marine Shale Tier 1 acreage in an emerging shale province Investor Presentation 9
Slide 10: What is the TMS?
What is the TMS? The TMS is an emerging shale play. The “Core” is comparable with other prolific shale plays in the For personal use only US TMS Location Onshore basin - Louisiana and Mississippi On trend with Eagle Ford Basin in Texas, similar depositional history and age 80 horizontal wells
Slide 11: TMS Oil Productivity vs Other Major Plays
For personal use only bbl / day 100 200 300 400 500 600 700 - Company 1 TMS TC Company 2 Company 3 Company 4 TMS Company 5 Company 6 Company 7 Company 8 Company 9 Australis) Company 10 Company 11 Company 12 Company 13 Company 14 Company 15 Company 16 Company 17 Company 18 Average barrels per day oil
Slide 12: Australis TMS Well Performance
Australis TMS Well Performance The last 15 wells drilled within Australis’ core acreage demonstrate significantly higher average For personal use only productivity than the average of other TMS wells drilled in Mississippi Individual 24 Month Cumulative Production Per Well – TMS Mississippi5,6 Austr
Slide 13: TMS Well Drilling Times
TMS Well Drilling Times TMS drilling times have been reduced over time as operational challenges resolved For personal use only Australis operated well drilling performance (rig mobilization to rig release) 160 First 10 wells average 72 days 140 120 Days from Spud to RR 100 Last 10 wells average 40
Slide 14: Capital Cost Profile of Early TMS Wells
Capital Cost Profile of Early TMS Wells Well costs have trended downwards over time in line with other plays For personal use only Australis conservative well cost estimate – US$10.8MM for a single well (US$1,690/ft)7 Other play participants quoted US$8.7MM8 No TMS wells have been drilled in t
Slide 15: Australis TMS Land Position
Australis TMS Land Position Australis holds a dominant land position within the core of the TMS, with significant undeveloped oil For personal use only Net Australis TMS Position Australis TMS (after royalties) Reserves1 5 million bbl PDP US$95 million (NPV10) Resources1 1C Resources 35 million bbl
Slide 16: TMS Economics
TMS Economics The TMS Core is economic at current oil prices and current single well cost estimates without For personal use only assumed productivity improvements, batch drilling or economies that come with development scale Single Well Economics and Sensitivities 10 TMS Core Type Curve (last 15 we
Slide 17: Pathway to Value
Pathway to Value TMS Core acreage has significant upside with multiple catalysts to create value For personal use only Value Catalysts Growth Strategy Likely to recover within 1-3 years as Oil Price the global supply market rebalances Continued refinement in design with GOAL practice Well loca
Slide 18: TMS Operational Update and Forward Program
TMS Operational Update and Forward Program Following acquisition, the initial focus has been extending the lease terms of the primary For personal use only acreage to beyond 2020 – providing flexibility for future development Work Completed Lease Development Management Encana acquisition Maintai
Slide 19: 2017 Financial Highlights (First Half 2017)
2017 Financial Highlights (First Half 2017) Primary focus on disciplined capital management For personal use only Transformational Acquisition price after adjustments of US$68 million 1 Acquisition Financed by existing cash and A$100 million share issue at A$0.23/share Operating netback of $3.
Slide 20: Portuguese Exploration Assets
For personal use only Portuguese Exploration Assets Large, low cost onshore acreage with minimal work commitments Investor Presentation 20
Slide 21: Portugal Concessions Overview
Portugal Concessions Overview Australis owns two concessions onshore Portugal with significant development potential For personal use only Asset Highlights Asset Location Significant Gas Large in-place discovered and tested gas Resource accumulation with 2C resources of 459 Bcf Limited explorati
Slide 22: Portugal Prospectivity & Volumetrics
Portugal Prospectivity & Volumetrics Appraisal of a gas discovery with multiple nearby prospects and leads with a significant resource base For personal use only Proposed Work Program Batalha Gas Discovery Batalha Concession Prospects Drill and test the gas discovery with a vertical well Drill a
Slide 23: Appendices and Additional Slides
For personal use only Appendices and Additional Slides Investor Presentation 23
Slide 24: Australis TMS Well Performance / 1000 ft Lateral
Australis TMS Well Performance / 1000 ft Lateral Australis’ last 15 TMS wells also demonstrate higher performance when compared with other TMS For personal use only on a per lateral foot basis Individual Well 24 Month Production / 1000 Ft Lateral – TMS Mississippi5,6 Australis TMS Last 15 Wells 45,0
Slide 25: TMS Core Type Curve
TMS Core Type Curve Summary of monthly oil production data for the most recent 15 Encana operated modern offset For personal use only Mississippi wells Lewis 7- Pintard Lyons 35H Pintard Longleaf Longleaf Mathis Mathis Lawson Ash 13H Sabine Sabine McIntosh Reese Well Name Ash 13H 2 Average Cumulativ
Slide 26: Single Well TMS Core Type Curve
Single Well TMS Core Type Curve ATS type curve history matched to production from the most recent 15 Mississippi ECA wells For personal use only TMS Core TC – Assumptions TMS Core Type Curve v TMS Production 250,000 Oil EUR – 545 Mbbls Gas EUR – 142 MMscf 200,000 NGL EUR – 18 Mbbls Oil Product
Slide 27: TMS Core Type Curve
TMS Core Type Curve The production and opex assumptions are based on history and the capex costs are current third For personal use only party estimates. Future Well Type Curve Production Forecast Target Lower TMS Mississippi EUR 30,000 700,000 Gas 0.13 bcf Oil/Condensate 499 mbbl 25,000 600,000 Pro
Slide 28: Earnings Summary
Earnings Summary Operational positive cashflow at current oil price For personal use only US$ Netback From Operations 1st Half 2017A US$/bbl million Revenue (Gross Sales) $7.03 $47.21 Royalties $1.32 $8.87 Production Taxes $0.19 $1.28 Field Direct Operating Costs (incl Inventory) $1.88 $12.63 Operat
Slide 29: Option Terms Summary
Option Terms Summary For personal use only Cash payable on Grant date Exercise Price (A$) Vesting Expiry Number exercise (A$) Directors, Executives & Management 13 Nov 2015 $0.25 Vested 31 Dec 2020 19,675,000 $4,918,750 13 Nov 2015 $0.30 (Series A) Vested 31 Dec 2020 27,775,000 $8,332,500 28 Apr 201
Slide 30: Petroleum Rights in the TMS – Leasing
Petroleum Rights in the TMS – Leasing A summary of the leasing system in the US For personal use only Petroleum Rights In the USA, the rights of access to hydrocarbons are generally attached to the surface landrights as real property However, such rights can be separated from the surface land ow
Slide 31: Footnotes
Footnotes For personal use only 1. All estimates and risk factors taken from Ryder Scott, report prepared as at 1 February 2017 and generated for the Australis concessions to SPE standards. See ASX announcement titled “US Shale Acquisition and A$100 Million Placement’ dated 28 February 2017. Austral
Slide 32: Glossary
Glossary For personal use only Unit Measure Unit Measure B Prefix - Billions bbl Barrel of oil MM or mm Prefix - Millions boe Barrel of oil equivalent (1bbl = 6 mscf) K or k Prefix - Thousands scf Standard cubic foot of gas /d Suffix - per day Abbreviation Description TMS Core The Australis designat
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