Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — RIU Good Oil Conference 2019
31 slides from Amplitude Energy's conference presentation, Sep 11, 2019
Slide 1: Presentation to Good Oil Conference 2019
Presentation to Good Oil Conference 2019 David Maxwell Managing Director For personal use only Ocean Monarch on location at Annie-1, Otway Basin, offshore Peterborough August 2019
Slide 2: Important Notice – Disclaimer and other information
Important Notice – Disclaimer and other information For personal use only The information in this presentation: • 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 i
Slide 3: Key messages
Key messages For personal use only 1. Cooper Energy’s performance in FY19 demonstrated its operating, technical and commercial capability – Safety – Sole gas offshore project – 5 new gas contracts – Otway offshore exploration preparation and results 2. This year Cooper Energy expects a transformatio
Slide 4: Key results since last year’s Good Oil conference
Key results since last year’s Good Oil conference Growing the business and value For personal use only 2P Reserves: up 0.5% Revenue: up 12% Market capitalisation: up 45% Share price: up 43% $million $ million cents 75.5 997 0.615 689 0.43 52.4 52.7 67.5 463 0.29 0.25 2 39.1 11.7 1.3 109 FY16 FY17 FY
Slide 5: What have we done since last year?
What have we done since last year? Share market Finance redetermination For personal use only ASX 200 admission Sole Gas Project: offshore Senior bank facilities reset New gas contracts Offshore construction completed Umbilical replacement Otway gas exploration • Origin Energy (CY20) Orbost Gas Plan
Slide 6: What have we done since last year?
What have we done since last year? New gas contracts Share market …and other recent developments: For personal use only Successful appraisal program at Parsons, Cooper Basin • Origin Energy (CY20) Minerva Gas Plant acquisition process • O-I (CY20) ASX 200 admission initiated by field end of life
Slide 7: Gas asset portfolio
Gas asset portfolio Assets acquired for competitiveness in delivered gas to south-east Australia For personal use only Otway Hub: gas production, development & exploration • Casino Henry gas production • Minerva Gas Plant* • Annie gas discovery Orbost Gas Plant • VIC/P44 exploration acreage • Onshor
Slide 8: 2P gas production profile and contract portfolio
2P gas production profile and contract portfolio Transformational uplift from Sole commencement. Further upside expected from Contingent Resources and discoveries. For personal use only Gas sales profile of 2P reserves to 2030 contracted & uncontracted PJ pa Uncontracted Contracted Gas contract book
Slide 9: Sole Gas Project
Sole Gas Project Offshore workstream completed within budget and schedule. Onshore moving to completion. For personal use only Onshore project: APA Group Offshore project: Cooper Energy $3551 million offshore project: • construction completed • within budget • $250 million upgrade to Orbost Gas Plan
Slide 10: Sole Gas Project safety performance
Sole Gas Project safety performance Offshore construction completed with zero lost time injuries For personal use only • Project performance 1 June 2017 to 30 June 2019 • 561,362 hours worked • Project activities ranging from onshore pipe welding, horizontal drill shore crossing, drill, complete and
Slide 11: Gippsland Basin gas hub
Gippsland Basin gas hub Cost competitive resource, existing plant and Sole production planned for FY20 For personal use only VIC/P72: exploration Sole: production • Adjacent to producing, ex-producing • Production expected to commence December gas fields and discoveries quarter 2019 (APA advice on p
Slide 12: Otway Basin gas hub
Otway Basin gas hub Cost competitive gas, plant and pipeline infrastructure in place with exploration potential For personal use only Casino Henry: production Minerva Gas Plant • Currently owned by Minerva Joint Venture • Casino, Henry & Netherby gas fields (Cooper Energy 10%) • 50:50 JV with Mitsui
Slide 13: Minerva Gas Plant
Minerva Gas Plant Cessation of gas production from Minerva triggers acquisition of strategically located plant For personal use only • Casino Henry JV participants Cooper Energy and Mitsui E&P Australia to acquire Minerva Gas Plant • 150 TJ/day capacity, plus liquids handling capability • Connection
Slide 14: Annie gas field discovery
Annie gas field discovery Close to shore, close to pipelines. Expected access to Minerva Gas Plant For personal use only • Discovery announced 6 September 2019 • 62 metres net gas pay in high quality Waarre C primary reservoir target (same reservoir for adjacent analogue fields Minerva, Casino) • Fa
Slide 15: Further Offshore Otway exploration plans
Further Offshore Otway exploration plans Exploration to continue. Strong encouragement from Annie, gas market and local development economics For personal use only Elanora-1 • Diamond Offshore Ocean Monarch to mobilise from Annie to drill Elanora-1 • Targeting Waare A primary reservoir (as in adjace
Slide 16: Cooper Basin
Cooper Basin Drilling ramping up to highest level yet in low-cost high margin oil acreage For personal use only • Drilling ramp up with PEL 92 step-out appraisal program similar to employed on Bauer field in PEL 91 – 3 exploration wells – 10 wells to appraise Callawonga, Rincon, Parson and Windmill
Slide 17: Current gas exploration & development projects
Current gas exploration & development projects Gas portfolio features numerous projects for increased production and reserves For personal use only Onshore Otway Sole • Drill Dombey-1 • Commence and complete commissioning • Full production in FY20 • Explore upside in debottlenecking Minerva Gas Plan
Slide 18: Event outlook
Event outlook Busy schedule for current period, transformational uplift in FY20 second half For personal use only FY20 first half FY20 second half FY21 – 22 growing & reinvesting Drill Elanora-1, offshore Otway • New term gas contracts commence • Full year production and cash flow from Sole 1 Januar
Slide 19: Wrap-up
Wrap-up After a successful 12 months….. more growth and opportunity is expected For personal use only 1. Cooper Energy has completed its most demanding 12 – 24 months safely and successfully: Sole offshore completed within budget and schedule; gas contracts negotiated; and exploration success
Slide 20: Appendices
For personal use only Appendices
Slide 21: Cooper Energy Snapshot
Cooper Energy Snapshot For personal use only Key statistics* Proved & Probable Reserves 52.7 MMboe Contingent Resources (2C) 26.9 MMboe Market capitalisation $997 million Net (debt)/cash $(53.9) million Cooper Basin • Oil production & exploration Issued shares (million) 1,621.6 Onshore Otway Basin R
Slide 22: Gas market outlook
Gas market outlook Gap between local production and supply creating favourable market for south-east Australian gas For personal use only • South-east Australia is reliant on Queensland gas to meet shortfall between AEMO forecast of south-east Australian gas production, demand and supply local produ
Slide 23: Southern states gas prices: ACCC view
Southern states gas prices: ACCC view Gas price and LNG netback trend For personal use only 2020 expected prices Average monthly commodity prices offered for 2020supply against contemporaneous expectations of 2020 LNG netback prices (southern states) Expected 2020 wholesale gas commodity prices in t
Slide 24: Profile of contracted and uncontracted gas by project
Profile of contracted and uncontracted gas by project Existing reserves and resources offer growth before exploration upside. For personal use only Gas sales profile by project contracted & uncontracted PJ pa Manta (subject to appraisal well and FID) 18 18 18 18 9 17 1 1 12 1 1 1 2 Plus Sole Dec 3 M
Slide 25: Otway Basin: Penola Trough onshore
Otway Basin: Penola Trough onshore Dombey-1 to be drilled to evaluate Pretty Hill Formation and Sawpit Sandstone potential For personal use only Dombey-1 (planned) • Spud expected September 2019 to test similar stratigraphic section as Haselgrove gas field in adjoining PPL 62 which confirmed convent
Slide 26: Manta gas and liquids resource
Manta gas and liquids resource Contingent Resource with exploration potential For personal use only Manta Contingent Resource1 estimate 1C 2C 3C Condensate MMbbl 2.2 3.4 5.4 Gas PJ 78 121 190 Manta unrisked Prospective Resource1 estimate Low (P90) Best (P50) High (P10) Oil MMbbl 1.0 1.5 2.3 Condensa
Slide 27: Reserves and Contingent Resources at June 2019
Reserves and Contingent Resources at 30 June 2019 1P (Proved) 2P (Proved + Probable) 3P (Proved + Probable + Possible) Reserves Unit For personal use only Cooper Otway Gippsland Total1 Cooper Otway Gippsland Total1 Cooper Otway Gippsland Total1 Developed Sales gas PJ 0 15 0 15 0 24 0 24 0 36 0 36 Oi
Slide 28: Senior management
Senior management For personal use only Managing Director General Manager, Development General Manager, Commercial General Manager, Projects David Maxwell Duncan Clegg & Business Development Michael Jacobsen Eddy Glavas David Maxwell has over 30 years’ Duncan Clegg has over 35 years’ experience in E
Slide 29: Senior management team
Senior management team For personal use only From left: Amelia Jalleh,, Duncan Clegg, David Maxwell, Eddie Glavas, Virginia Suttell, Iain MacDougall, Andrew Thomas, Mike Jacobsen Presentation to Good Oil Conference September 2019 29
Slide 30: Notes on calculation of Reserves and Resources
Notes on calculation of Reserves and Resources For personal use only Notes on calculation of Reserves and Contingent Resources Cooper Energy has completed its own estimation of Reserves and Contingent Resources for its fully-operated Gippsland Basin assets, and elsewhere based on information provide
Slide 31: Abbreviations
Abbreviations $, A$ Australian dollars unless specified otherwise For personal use only APA APA Group Bbl barrels of oil Boe barrel of oil equivalent EBITDA earnings before interest, tax, depreciation and amortisation FEED Front end engineering and design FID Final Investment Decision kbbl thousand