Australis Oil & Gas Ltd. · ASX:ATS
Australis Oil & Gas — Shareholder Meeting (May 2022)
29 slides from Australis Oil & Gas's shareholder meeting presentation, May 25, 2022
Slide 1: Chairman's Address and Company Presentation Material
ASX Announcement 25 May 2022 For Immediate Release Chairman’s Address and Company Presentation Material 2022 Annual General Meeting Please find attached to this document a copy of the Chairman’s address and the presentation that will be provided by Australis Oil & Gas Limited today at its Annual Gen
Slide 2: Chairman's Address – 2022 Annual General Meeting
Chairman’s Address – 2022 Annual General Meeting Thank you very much to those of you in attendance today at the AGM of Australis Oil & Gas and thank you to those listening and or watching online. We are an operating oil and gas company with production and a large undeveloped onshore USA oil position
Slide 3: 2022 AGM Presentation
ASX: ATS 2022 AGM Presentation 25 May 2022
Slide 4: Important Notice and Disclaimer
Important Notice and Disclaimer 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 the presentation and
Slide 5: Why the Tuscaloosa Marine Shale (TMS)?
Why the Tuscaloosa Marine Shale (TMS)? Australis has focused on a known but undeveloped unconventional oil play Not exploration – prior activity delineated best acreage and demonstrated quality Uncompetitive environment allowed Australis to build a large contiguous acreage position within the be
Slide 6: Australis TMS Strategy
Australis TMS Strategy A consistent strategy is increasingly relevant to an evolving industry A delineated but undeveloped quality oil play is very scarce onshore in the USA Strategic Asset Existing established unconventional oil plays are increasingly mature – quality future drilling locations
Slide 7: Why TMS remains an undeveloped Tier 1 oil shale play
Why TMS remains an undeveloped Tier 1 oil shale play Pre 2012 appraisal outside of Core, followed by oil price decline and pandemic demand drop TMS is on trend with the Eagle Ford Basin in Texas and in 2010 its exploration was the logical next step for the industry Chasing the trend, operators d
Slide 8: Strategic Position with Scale in TMS Core
Strategic Position with Scale in TMS Core Australis controls the core area and is largest lease holder Large contiguous land position in the TMS Core with ~94,300 net acres (none on federal lands) providing strategic control and operational benefits. TMS Project Asset Profile Mississippi and Louis
Slide 9: ESG and Financial results
ESG and Financial results NOT FOR DISTRIBUTION OR RELEASE IN THE US 7
Slide 10: ESG summary
ESG summary Australis reported another year of safe operations and reduced emissions Employee Safety Performance Strong safety culture for field operators resulted in 2021 2020 another exemplary performance with no safety Near Miss 0 0 incidents over 5,062 workdays First Aid 0 0 Proactive Safety
Slide 11: Fiscal summary
Fiscal summary Strong Q1/22 fiscal performance a result of prudent financial management in 2021 Recent Financial results Units 2021 Q1 2022 Strong Q1 fiscal results build upon self- Sales Volume Bbls 409,680 94,300 sufficient 2021 Average Realised PriceA US$/bbl 69 96 Net Debt reduced to $6.2 mi
Slide 12: Fiscal results 2020/2021
Fiscal results 2020/2021 Safeguarding the highly valuable TMS asset via prudent financial management Australis was quick to react in 2020 and maintained $20,000 Revenue & Net Debt financial discipline throughout the low oil price period $18,000 during the COVID pandemic $16,000 $14,000 ($,000's) $
Slide 13: How does the TMS compare?
How does the TMS compare? NOT FOR DISTRIBUTION OR RELEASE IN THE US 11
Slide 14: Improved well performance in key oil plays
Improved well performance in key oil plays All of the key oil plays have seen improvements in recovery over time as designs have been optimised Source: ShaleProfile US-Update through December 2021, published 8th April 2022 12
Slide 15: Improved well performance in key oil plays
Improved well performance in key oil plays Improvement in well performance has come from high grading acreage, longer wells and bigger/better completions Source: ShaleProfile US-Update through November 2021, published 10th March 2022 13
Slide 16: Improved well performance in key oil plays
Improved well performance in key oil plays Whilst wells have become more productive, if they are normalised for length then no real improvements since 2016 Avg 3 TMS Core Wells 23.0 mbbl/1,000 ft Avg 15 TMS Core Wells 21.3 mbbl/1,000 ft TMS 2014 well oil productivity compares very favourably to mode
Slide 17: Well Costs – Continued Improvement Across Industry
Well Costs – Continued Improvement Across Industry Despite significantly larger completions, average D&C costs have improved significantly across the major shale basins Through innovation, technology, efficiencies and simply by drilling more wells, operators are able to reduce costs over time The TM
Slide 18: Well Costs – Continued Improvement Across Industry
Well Costs – Continued Improvement Across Industry ECA Wells + ATS Stewart/Taylor + State Line Reese - Hrs/1000' (Shown in Order of Spud Date) 180 15% Decrease YoY 19% 160 Decrease YoY 30% Decrease 140 YoY 120 Hours per 1000ft 100 80 2021 2011-2012 Avg NPT = 31.9 days 2018/19 ATMS 2013-2014 Avg NPT
Slide 19: Update on activity in the field
Update on activity in the field NOT FOR DISTRIBUTION OR RELEASE IN THE US 17
Slide 20: Recent Development Activity in the TMS
Recent Development Activity in the TMS Australis development wells 2018/2019 State Line Reese 11H 1 well 2021/2022 Paloma DUC completions : Painter 5H – 01 & W Alford 10H – 1 18
Slide 21: Recent Development Activity in the TMS
Recent Development Activity in the TMS Australis development wells 2018/2019 Continued to demonstrate rock quality Saxby 03-10 2H & Quin 41-30 3H Williams 26H-2 Two of the lowest cost per foot full length & Taylor 27H-1 laterals drilled in the play Drilling and equipment challenges led to shor
Slide 22: Recent Development Activity in the TMS
Recent Development Activity in the TMS The State Line (Juniper Capital) well was drilled during State Line Reese 11H 1 well 2021/2022 the latter part of Q4 2021 Australis contributed operational data to State Line during the planning and execution phases The well was successfully drilled to a
Slide 23: Recent Development Activity in the TMS
Recent Development Activity in the TMS Paloma DUC completions – Painter 5H – 01 & W Alford 10H – 1 Paloma have two drilled but uncompleted wells (DUCs) located in the southwest of the TMS Core Williams 46H - 1 Wells were drilled and cased in 2014, but have never Blades 33H - 1 B Nez #1& 2 been f
Slide 24: Evolution of TMS frac design
Evolution of TMS frac design From a baseline performance established by Encana and Australis – new entrants are exploring upside with modern frac design Australis/ Frac Design State Line Paloma Comment Encana Proppant Increasing intensity 2,400 lb/ft in line with industry Intensity Shortening length
Slide 25: Single Well Economics
Single Well Economics NOT FOR DISTRIBUTION OR RELEASE IN THE US 23
Slide 26: TMS Core Type Curve – Conservative Base Case Economics
TMS Core Type Curve – Conservative Base Case Economics Assumes completed lateral length of 7,200 ft only, opex assumptions are based on history and the capex costs are current full field development projections – no future upsides are assumed in the base case Base Case Assumptions* Production Foreca
Slide 27: Summary & Next Steps
Summary & Next Steps Tier 1 Oil Asset with Scale Strategic Opportunity ~94,300 net acres in the ‘core’ of the TMS Limited available new drilling inventory in established oil plays Well inventory of ~360 locations at 250 acre spacing Limited exploration potential remaining Flexible lease po
Slide 28: Footnotes
Footnotes 1. All estimates and risk factors taken from Ryder Scott, report prepared as at 31 December 2021 and generated for the Australis concessions to SPE standards. See ASX announcement released on 7 February 2022 titled “Reserves and Resources Update Year End 2021”. Australis is not aware of an
Slide 29: Glossary
Glossary Unit Measure Unit Measure B Prefix - Billions bbl Barrel of oil MM or mm Prefix - Millions boe Barrel of oil equivalent (1bbl = 6 mscf) M or m Prefix - Thousands scf Standard cubic foot of gas /d Suffix - per day Bcf Billion standard cubic foot of gas Abbreviation Description TMS Tuscaloosa