Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — Investor Presentation (April 2016)
32 slides from Amplitude Energy's investor presentation, Apr 7, 2016
Slide 1: Bungaloo-1, Otway Basin
For personal use only Bungaloo-1, Otway Basin
Slide 2: Important information
The information in this presentation: For personal use only • 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 individual investment objectives or the financial sit
Slide 3: Key figures
For personal use only Key figures Cooper Energy is an independent Australian exploration and Shares on issue 333.7 mill production company Shareholders 4,945 • Cash generating from production of approx. 450,000 - 500,000 Market capitalisation2 ~$80 mill barrels of oil pa Cash & investments3 $30 mill
Slide 4: For personal use only
For personal use only 1 2 3 4 450,000~500,0001,2bbls pa Gippsland Basin Gas Hub Net cash & investments : Management experienced in Operating cost2: A$31/bbl $30 million2 gas commercialisation 2C Contingent Resource: 347 PJ3 5th largest onshore Zero debt2 Board experience in growing gas Low on cost c
Slide 5: Company history and milestones
For personal use only 2015 2012 Sole project enters FEED Acquires Somerton BMG Business Case identifies 2002 Energy and strong Otway Manta gas opportunity position First gas sales agreement: O-I Cooper Energy listed, Australia then cash generating oil Takes position in BAS. Leads to production weste
Slide 6: Sole gas project FID and exit from non-Australian operations
For personal use only Sole gas project Final Investment Decision Forecast to generate revenue of $85 - $100 million1 pa to Cooper Energy from 2019 Complete the exit from non-Australian operations Indonesia divestment and Tunisia withdrawal to complete shift in focus to Australia ….whilst also mainta
Slide 7: Production growth outlook
For personal use only FY22 ~ 5 million boe • Low cost • Conventional • Existing plant • Proven technologies FY20 over 2 million boe Sole plus Manta Manta liquids FY15 Sole gas project Manta gas 0.5 million boe Sole gas Existing oil with appraisal Oil production 0.5 MMbbls Gas production 12.5 PJ Gas
Slide 8: Eastern Australia domestic demand and contracted supply
For personal use only Eastern Australia domestic demand and contracted supply PJ 2,500 Eastern Australian gas demand 2,000 NGP 1,500 Cooper Otway Bass Gippsland 1,000 Surat-Bowen Demand 500 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Source: EnergyQuest, AEMO * Eastern Australia compris
Slide 9: South East Australia gas supply and demand balance
For personal use only South East Australia production from existing suppliers Forecast South East Australia gas demand and supply balance PJ pa Pj pa 450 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 400 350 = shortfall 300 by year -50 250 200 = -100 150 100 -150 50 0 2016 2017 2018 2019 202
Slide 10: Gladstone drawing gas from Eastern Australia
For personal use only Gladstone drawing gas from Eastern Australia • Existing producing fields in decline • Eastern Australia: new contracts needed from 2018/19 • Queensland and Cooper Basin commitments to Gladstone LNG • Gladstone taking gas from sources previously focussed on SE Australia • CSG ex
Slide 11: Gippsland Basin gas assets
For personal use only to Melbourne Eastern Gas Pipeline to Sydney Orbost Gas Hub COE 50%, STO 50% & Operator Sole Gas field COE 50%, STO 50% & Operator Patricia Baleen (depleted) (STO 100%) ~241* PJ Longtom (SVW 100%) 2.6 *MM bbls ~106* PJ Manta Gas field * 2C Contingent Resources 100% joint venture
Slide 12: Sole gas project
For personal use only • 241 PJ (100% basis) over 9 – 10 years Gas & revenue • COE share 12.5 PJ pa or 121 PJ • Pricing within market forecast range; typically $7 - $8/GJ • Sale of gas and tolling revenue from Orbost Gas Plant (COE 50%) • To be determined by current FEED process due to complete June
Slide 13: Indicative cash flow illustration
For personal use only Indicative illustration • Majority of cash outflow within 20 months of first gas Cash flows − enhances economics • NPV builds rapidly as project is derisked − from FID to first gas and beyond • Simple project design, capital and operating cost metrics • Strong stable ongoing ca
Slide 14: Path to FID
For personal use only Gas contracts • Targeting 10 PJ pa for FID • Agreements with O-I & AGL for 7.6 PJ pa Plant & facilities Finance • Front End Engineering & Design • Funding strategy done • ~55% complete end-February • Funding options • Under budget • On schedule FID • Maximise shareholder return
Slide 15: Indicative gross gas production profile
For personal use only Indicative gross PJ 60 • Sole and Manta can produce more than 360 PJ (gross) from current projects 50 25 25 25 • Peak production ~50 PJ p.a. 21 • Strong stable cash flow anticipated 40 • Gas price of $7 to $8/GJ generates ~$350 million to 11 $400 million gas revenue pa in the p
Slide 16: Production costs
For personal use only Production costs Cooper Energy oil production Direct cost A$ per barrel Million barrels FY16 first half 0.7 0.6 0.59 0.5 30 Netback 0.52 0.47 0.49 0.48 0.4 0.50- 0.41 to 7 Royalties 0.3 0.45 13 Transport expenses 0.2 Operating costs 0.1 13 0 2010 2011 2012 2013 2014 2015 2016 •
Slide 17: Indonesia and Tunisia exit
For personal use only Data room Withdrawal plan • Initiated December quarter • Process ongoing on permit by permit basis Exploration acreage: Sumbagsel and Merangin III PSCs (COE - Nabeul: joint venture has withdrawn. Finalising exit terms with 100%) Government • Agreed sale to Mandala Energy for US
Slide 18: Milestones and news flow
For personal use only FY16 FY17 Dec Qtr Mar Qtr Jun Qtr Sept Qtr Gippsland data room opens FEED on schedule Indonesia data room opened Gas sales contracts secured Indonesia exploration assets sale Indonesia production asset sales process FEED complete Bankable gas contracts Indonesia explorati
Slide 19: Summary
For personal use only ~ 95 PJ Contracted gas • Firm gas sales agreements for 95 PJ that are expected to generate revenue between $660 million to $760 million (COE current share) at gas prices of $7 to $8/GJ over 8-10 years ~ 90 PJ Uncommitted gas • Gas available for contracting to Eastern Australian
Slide 20: Appendices
For personal use only Appendices
Slide 21: Sole Gas Field and Orbost Gas Plant
For personal use only Sole Gas Field • Contingent Resources (2C) of 241 PJ • Sole gas field in FEED for development to supply gas from Jan quarter 2019 • FEED expected to complete/proceed to FID in Sept quarter 2016 • Sole Gas project development: − single vertical subsea well − dedicated pipelines
Slide 22: Gippsland Gas Hub
For personal use only • Opportunity for capital efficient development through use of existing infrastructure and coordinated development • Gippsland Gas Hub centred around Orbost Gas Plant for Sole, Manta and other gas resources in the region • Potential substantial savings and value increase if Man
Slide 23: Manta gas field
For personal use only A’ • Gas resource of 106 PJ 2C Contingent and Risked Prospective Resource of A 10 PJ1 (Cooper Energy 65% & Operator) • COE Business case identified economic opportunity for Manta development • Manta gas attracting enquiries from gas buyer • Untested Golden Beach reservoirs are
Slide 24: Otway Basin exploration
For personal use only • Analysis of Jolly-1 and Bungaloo-1 well data in PEL 495 and PRL 32 has confirmed: – a deep conventional gas play in Lower Sawpit Formation – Casterton Formation unconventional shale gas play • Victorian acreage subject of application to suspend and extend due to moratorium on
Slide 25: Hedge arrangements
For personal use only Hedge arrangements Q4 FY16 H1 FY17 H2 FY17 H1 FY18 Total (bbl remaining as at 31 March 2016): A$80.00 – 90.57: zero cost collar options 30,000 - - - 60,000 A$57.00 – A$69.70: zero cost collar options 30,000 60,000 30,000 120,000 A$54.45 floor + 50% above floor: zero cost - 30,0
Slide 26: Capex and revised guidance
For personal use only Revised capex Capex vs PCP guidance1 $ million $ million y.o.y.3 15 H1 16 H1 Change FY 15 FY16H2 FY16F change Cooper Basin 4.3 0.8 - 3.5 Cooper Basin 8 2 3 -4 Otway Basin 0.7 0.1 -0.6 Otway Basin 1 ~02 ~02 -1 Gippsland Basin 1.6 8.6 +7.0 Gippsland Basin 9 13 22 +13 Indonesia 3.
Slide 27: Fully funded for FY16
For personal use only Fully funded for FY16 $ million • Financial assets in place at 31 Dec 15 of $30 million plus: – ~A$10 million net proceeds from Indonesian exploration acreage divestment – finance facilities Finance facilities in Up to 40 – cash flow from production place1 • Hedging in place; 5
Slide 28: Cooper Basin oil operations
For personal use only • H1 FY16 oil production of 175 kbbls, in line with estimates • Operating cash cost of A$32.50/bbl (FY16) including transport and royalties • Connection of Callawonga 10 & 11 in Sept-Oct • All drilling deferred into FY17 • Callawonga facilities expansion project studies ongoing
Slide 29: Indicative development timeline
For personal use only FID First Gas Gas Production FID Business First Gas Case Prod'n Manta-3 Sole Development Manta Development Sole Sole Gas Sales Agreements Manta Gas Sales Agreements LOIs Sole Reserves Manta Reserves Booking Booking 1 Indicative only and subject to review at key milestones and j
Slide 30: Indonesian acreage
Indonesian acreage Exploration assets subject to sale agreement; Tangai-Sukananti KSO divestment process initiated F3° 00'S acquired” by Mandala Energy [EG cooper Energy permit S&S lien S&® Ge fel Pipeline * subject to regulatory approval 4° 00'S a J Sumarta Gy @ South Sumatra Basin BAZ ia SOUTH CHI
Slide 31: Reserves and resources notes
The approach for all reserve and resource calculations is consistent with the definitions and guidelines in the Society of Petroleum Engineers (SPE) 2007 Petroleum Resources Management System (PRMS). The resource estimate methodologies incorporate a range of uncertainty relating to each of the key r
Slide 32: Glossary and abbreviations
$, A$ Australian dollars unless specified otherwise For personal use only Bbls barrels of oil boe barrel of oil equivalent bopd barrel of oil per day EBITDA earnings before interest, tax, depreciation and amortisation FEED Front end engineering and design FY Financial year; 12 months to 30 June H1 H