Australis Oil & Gas Ltd. · ASX:ATS
Australis Oil & Gas — Corporate Update (August 2019)
30 slides from Australis Oil & Gas's corporate update, Aug 12, 2019
Slide 1: TMS Project Update: Well Production Continues to Exceed Benchmark Type Curve
ASX Announcement For Immediate Release 12 August 2019 TMS Project Update: Well Production Continues to Exceed Benchmark Type Curve Highlights Production results from the initial wells continue to confirm consistent Tier 1 oil productivity, exceeding the Australis benchmark TMS Type Curve. Capita
Slide 2: Drilling update, pause in drilling and corporate presentation
The Saxby well was drilled to 17,560 feet and has a lateral well length of approximately 5,000ft. The wellbore remained stable throughout the drilling of this well directly as a result of the improved drilling parameters provided by the HPWBM. Preparation for completion operations to stimulate the Q
Slide 3: Investor Presentation
ASX: ATS Investor Presentation August 2019
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: Play proven, strategy execution advanced, poised for re-rate
Play proven, strategy execution advanced, poised for re-rate ATS has maintained and executed on a clear strategy to create value Identify & Acquire Prove Up Re-Rate Upside Tier 1 acreage position with New wells exceeding Clear demonstration of Increase resource base scale: 115,000 net acres
Slide 6: Corporate Snapshot
Corporate Snapshot Board and Management are personally invested, owning 11% of the Company Key statistics (as at 30 June 2019) - USA Portugal Average Production (WI) 2Q 19 2,582 bbl/day Tuscaloosa Marine Shale Lusitanian Basin 115,000 net acres 459 BcF (2C)3 Proved & Probable Reserves1 50 MMbbl 206
Slide 7: Why we like the TMS Core
Why we like the TMS Core The TMS play has a number of unique advantages Average of all 15 wells drilled in 2014 by previous operator forms our TMS Type Curve5 Highly Productive TMS Type Curve is on par or better than most USA Tier 1 oil shale basins Reservoir Results from our 2018/19 drilling
Slide 8: TMS production compares favourably with other basins
TMS production compares favourably with other basins TMS Type Curve wells productivity outperforms many of the other USA liquid rich plays 2014 TMS Wells (15 wells) averaged 2014 TMS Type Curve v 2017 Basin Average (Cum. Oil Production) 216,000 bbl oil in the first 24 350,000 months. The TMS Type
Slide 9: Australis 2019 wells exceeding the TMS Type Curve
Australis 2019 wells exceeding the TMS Type Curve Initial wells demonstrate consistent Tier 1 productivity The primary objective of the Australis Cumulative Oil Production v TMS Type Curve (Normalised to 7,200 ft) 2018/19 Initial Drilling Program is to replicate the TMS Type Curve 140,000 producti
Slide 10: Historical Drilling challenges being resolved
Historical Drilling challenges being resolved Challenge Status Solution 1 Well bore stability Utilised 3D Mechanical Earth Model with Schlumberger Ability to define operating pressure window Resolved and refined with additional operational data Polymer Water Based Mud (“WBM”) system, tested agains
Slide 11: Large contiguous land position
Large contiguous land position Size and Flexibility Core TMS Land Position Majority of 115,000 acre lease position held without short or medium term Held by Production 34,800 net acres 26% 30% drilling obligations Large drilling units of up to 1,920 acres Total position 115,000 net acres Core ar
Slide 12: Proximity to accessible infrastructure & premium pricing
Proximity to accessible infrastructure & premium pricing A key differentiator for the TMS compared to other US unconventional plays The TMS produces a light sweet crude (38–41 deg API) TMS Infrastructure that achieves LLS pricing, i.e. an average premium to WTI of $5.50/bbl in Q1 and $7.00/bbl in
Slide 13: Significant oil reserve and resource position in TMS
Significant oil reserve and resource position in TMS Reserves (acreage assessed for development)1 197 MMbbls net recoverable oil independently 89 MMbbl assessed as at 31 December 20181, based on 110,000 4 net acres in TMS Core PDP 28 − Includes Proved and Probable reserves of 50 PUD MMbbl Probable
Slide 14: Large well inventory each with attractive economics
Large well inventory each with attractive economics Australis has 425 net well locations which each have a base value of US$6.3 million without including upside Single Well Economics NPV10A (US$ million) $3.4 $14.1 $1.0 $10.7 $3.4 $6.3 TMS Type Curve: WTI @ 20% Productivity Well Cost Decrease to Tot
Slide 15: Multiple catalysts for upside
Multiple catalysts for upside Valuation based on conservative assumptions – each component has upside Austin Chalk Austin Chalk activity Well Costs proximal to Australis acreage (EOG, Marathon, ConocoPhillips) Well Spacing & Continued refinement in Majority of Australis design based on industr
Slide 16: Significant Austin Chalk optionality
Significant Austin Chalk optionality Further upside from the Austin Chalk at nominal additional cost Austin Chalk rights over significant majority of acreage Prospective indicators for Austin Chalk − Strong hydrocarbon C1 – C5 shows whilst drilling all 6 new ATS wells − Recent and historical log
Slide 17: Financial
Financial Balance sheet, cashflow & financing provides capacity for the initial drilling program Cash flow from operations continues to grow and Key Metrics Unit Q2 2019 Q1 2019 Qtr on Qtr H1 2019 funds G&A and leasing activities Sales Volumes (WI) bbls 235,000 206,000 14% 441,000 Capex spend on
Slide 18: Portugal appraisal opportunity
Portugal appraisal opportunity Australis holds two onshore concessions in Portugal with significant gas resources Two concessions awarded in 2015 with significant past work Asset Location undertaken and existing gas discoveries Currently progressing comprehensive EIA studies Next step to drill
Slide 19: Experienced team and strategy drives shareholder returns
Experienced team and strategy drives shareholder returns Delivering on a clearly defined and established strategy Proven Execution Capability Shareholder Return Driven Board and management were the Board and Management own 11% of the founders and key executives of Aurora Company Oil & Gas Expe
Slide 20: Additional Information
Additional Information 18
Slide 21: Directors & Management
Directors & Management Jon Stewart Alan Watson Steve Scudamore Non-Executive Chairman Non-Executive Director Non-Executive Director - >25 years in the upstream oil and gas industry - 30 years previous experience in international - Over 3 decades experience in Corporate - Founder and former Chairman
Slide 22: TMS is an emerging shale play
TMS is an emerging shale play TMS Location Onshore basin - Louisiana and Mississippi. On trend with Eagle Ford Basin in Texas, similar depositional history and age. 80 horizontal wells were drilled from 2010 to 2014 and have delineated the Core Area. Performance from the early drilled wells
Slide 23: What is the TMS Type Curve?
What is the TMS Type Curve? The TMS Type Curve is the average production profile of all 15 Australis wells drilled by the previous operator in 2014 Total oil production per well - initial 24 months (mbbls) 2014 Australis wells - Production profiles 40,000 Lawson 25-13H 318 Longleaf 29H 2H 316 35,000
Slide 24: Single Well TMS Type Curve
Single Well TMS Type Curve TMS Type Curve is a conservative history match to averaged empirical data TMS Type Curve – Assumptions TMS Core Type Curve v TMS Production Oil EUR – 610 Mbbls 250,000 Gas EUR – 159 MMscf 200,000 Oil Production (bbl) NGL EUR – 20 Mbbls 150,000 EUR (30 yr) – 656 Mbo
Slide 25: TMS Base Case Economics – Key Assumptions
TMS Base Case Economics – Key Assumptions The production and opex assumptions are based on history and the capex costs are current development projections Base Case Assumptions* Production Forecast EUR (30 Years) 30,000 700,000 Gas 0.16 Bcf Oil/Condensate 610 Mbbl 25,000 600,000 Production (bbl/mscf
Slide 26: TMS Reserves & Resources
TMS Reserves & Resources1,2 As an ASX participant Australis reports to the SPE PRMS which requires any undeveloped reserves, that are to be Net Oil 2018 Ryder Scott Reserves Estimate assessed for reserves classification, are to be developed (MMbbls) within a maximum 5 year timeframe. Proved Develo
Slide 27: Australis’ production realises higher prices than peers
Australis’ production realises higher prices than peers TMS produces quality light sweet crude, 41-39 API, sold at a Q1 premium of $5.50/bbl to WTI (Q2 $7/bbl) Average achieved oil price of Eagle Ford and Permian based companies was a $4.05/bbl deduct to WTI Therefore ATS achieved 19% premium
Slide 28: Portugal Prospectivity & Volumetrics
Portugal Prospectivity & Volumetrics Proposed Work Program Batalha Gas Discovery Batalha Concession Prospects − Drill and test the gas discovery with a vertical well − Drill and core a deep Lamede well in a Lower Jurassic depocenter in the Pombal concession Volumetrics 3,6 Net Risked Prospective Net
Slide 29: Footnotes
Footnotes 1. All estimates and risk factors taken from Ryder Scott, report prepared as at 31 December 2018 and generated for the Australis concessions to SPE standards. See ASX announcement released on 6 February 2019 titled “Reserves and Resources Update Year End 2018”. The analysis was based on a
Slide 30: Units & Abbreviations
Units & Abbreviations 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 T