Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — Euroz Institutional Conference 2016
32 slides from Amplitude Energy's conference presentation, Mar 16, 2016
Slide 1: Bungaloo-1, Otway Basin
For personal use only Bungaloo-1, Otway Basin
Slide 2: Important information and qualified evaluator
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: Gippsland Gas Projects, Indonesia and Tunisia highlights
For personal use only Gippsland Gas Projects Completed acquisition of Sole gas field and Orbost gas plant Upgraded Sole1 2C gas resource 14% to 241 PJ Commenced Front End Engineering and Design for Sole Gas Project FID in September quarter 2016 Secured first Heads of Agreement for sale of ga
Slide 4: Sole gas project Final Investment Decision
For personal use only Sole gas project Final Investment Decision Project forecast to generate revenue of $85 - $100 million1 pa to Cooper Energy from 2019 Complete the exit from non-Australian operations 1 Based on existing equities 4
Slide 5: Production growth profile FY15 to FY22
For personal use only FY22 ~ 5 million boe • Low cost • Conventional • Existing plant • Proven technologies FY20 over 2 million boe Gippsland liquids Gippsland gas Sole plus Manta Existing oil with exploration & appraisal FY15 Sole gas project 0.5 million boe Oil production 0.5 MMbbls Gas production
Slide 6: 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 7: South East Australia production 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 8: 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 • Queensland and Cooper Basin commitments to Gladstone LNG • Gladstone taking gas from sources previously focussed on SE Australia • CSG expec
Slide 9: Orbost Gas Hub, Sole and Manta gas fields
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 10: Indicative Sole and Manta gross 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 $400 million gas revenue per annum i
Slide 11: Path to FID: gas contracts, plant and finance
For personal use only Gas contracts • Targeting 10 PJ pa for FID • Heads of Agreement with O-I Plant & facilities Finance • Front End Engineering & Design • Funding strategy done • ~55% complete end-February • Funding options • Under budget • On schedule FID • Maximise shareholder return Structure •
Slide 12: Production costs
For personal use only Production costs Cooper Energy oil production Direct cost A$ 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 13: Milestones FY16 to FY17
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 14: Investment 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 15: Appendices
For personal use only Appendices
Slide 16: 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 4,995 • Cash generating from production of approx. 450,000 - 500,000 Market capitalisation2 ~$63 mill barrels of oil per annum Cash & investments3 $
Slide 17: Cooper Energy at a glance
For personal use only 1 2 3 4 450,000~500,000 bbls pa Gippsland Basin Gas Hub Net cash & investments : Management experienced in Operating cost1: A$31/bbl $30 million1 gas commercialisation 2C Contingent Resource: 347 PJ2 5th largest onshore Zero debt1 Board experience in growing gas Low on cost cur
Slide 18: 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 19: 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 20: Gippsland Basin 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 21: Manta gas field
For personal use only • Gas resource of 106 PJ 2C Contingent and Risked Prospective Resource of 10 PJ1 • Focus on Golden Beach reservoir, not Intra Latrobe accessed by BMG oil project • COE Business case identified economic opportunity for Manta development • Manta gas attracting enquiries from gas
Slide 22: Manta untested Golden Beach reservoirs
For personal use only A A’ • Untested Golden Beach reservoirs are identified within the same structure below proven gas in the Manta field • Potential to evaluate multiple additional reservoir sections by drilling Manta-3 another 1,000 metres deeper than Manta-1 Top GB 7 Depth Map 22
Slide 23: Half year highlights
For personal use only Gippsland Basin Gas Projects: moving ahead, contracting gas, resource estimates upgraded • Sole FEED on schedule and under budget; 44% complete • Sole Contingent Resource1 upgraded 14% to 241 PJ (gross; COE share 121 PJ) • Initial HOA for sale of Cooper Energy equity gas from S
Slide 24: H1 FY16 underlying earnings
For personal use only H1 16 $ million Oil Sales revenue 14.6 Gross profit 5.0 Gross profit / Sales revenue 34% Exploration expense -0.2 General Admin1 1.6 Underlying EBITDA 5.7 Underlying PBT 3.2 Income tax (1.0) Oil Underlying NPAT 2.2 Gas1 and Corporate1 Underlying NPAT/(loss) (3.6) Cooper Energy
Slide 25: Hedge arrangements
For personal use only Hedge arrangements H2 FY16 H1 FY17 H2 FY17 H1 FY18 Total (bbl remaining): A$80.00 – 90.57: zero cost collar options 60,000 - - - 60,000 A$57.00 – A$69.70: zero cost collar options 60,000 60,000 30,000 150,000 A$54.45 floor + 50% above floor: zero cost - 30,000 30,000 30,000 90,
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: 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 29: Indonesia divestment
For personal use only Data room • Initiated December quarter Exploration acreage: Sumbagsel and Merangin III PSCs (COE 100%) • Agreed sale to Mandala Energy for US$8.25 million1 – subject to Indonesian Government approval • Expect transaction to complete within FY16 • Removes licence commitments for
Slide 30: Gippsland gas 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 Manta Gas Sales Agreements Sole Gas Sales Agreements LOIs Sole Reserves Manta Reserves Booking Booking 1 Indicative only and subject to review at key milestones and j
Slide 31: Notes on reserve and resource calculations
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
$, A$ 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