Otto Energy Limited · ASX:OEL
Otto Energy — Investor Presentation (December 2015)
28 slides from Otto Energy's investor presentation, Dec 11, 2015
Slide 1: Significant Acquisitions in 2015 deliver Multi-well Drilling Campaign in 2016/17
ASX Code : OEL For personal use only Significant Acquisitions in 2015 deliver Multi-well Drilling Campaign in 2016/17 Matthew Allen, Managing Director and CEO December 2015
Slide 2: Multi-well drilling campaign in 2016/17
Multi-well drilling campaign in 2016/17 Otto has used its strong balance sheet to position for an active high-impact drilling program across three quality projects in 2016/17 For personal use only • Louisiana/Gulf of Mexico • Short timeframe (12-18 months) from discovery to production • Low cost ope
Slide 3: Otto Energy Overview
Otto Energy Overview Delivering value to shareholders despite oil price challenges Otto has sought to re-position itself into low cost and high chance of success environments For personal use only • throughout 2015 – assets that work even in low oil price environment • An exhaustive review process t
Slide 4: Otto Energy Overview
Otto Energy Overview Active exploration and production opportunities across prolific petroleum basins For personal use only Alaska Seismic acquisition Q1 2016 Drilling up to 3 wells 2H 2016/1H 2017 Louisiana/Gulf of Mexico Drilling Q1 2016, Potential for 3 wells in 2016 Tanzania Drilling Q3 2016 Per
Slide 5: Louisiana/Gulf of Mexico
For personal use only Louisiana/Gulf of Mexico (Otto earning 45 to 50% Working Interest) Low cost and high chance of success plays Material (~5MMbbl) prospect sizes Success case will see production and cashflow in 2017 Investor Update presentation, December 2015 5
Slide 6: Farm-in to Byron Energy drilling opportunities
Farm-in to Byron Energy Ltd drilling opportunities Multi-well drilling program in 2016 Byron Energy has built a portfolio of low cost/high chance of success opportunities in the For personal use only • shallow water Gulf of Mexico and onshore Louisiana • Otto will participate in the drilling of up t
Slide 7: Why this deal makes sense for Otto
Why this deal makes sense for Otto Entry into one of the world’s most productive and lowest cost oil and gas regions For personal use only • Quality Gulf of Mexico assets are difficult to come by – in a stronger market these assets wouldn’t be available. Otto has a strong technical team and strong b
Slide 8: Commercial terms of staged farm-in
Farm-in to Byron Energy opportunities Commercial terms of staged farm-in For personal use only Licence Drilling Gross Well Otto Well Working Net Cost Contribution Interest Revenue (1) (2) Interest South Marsh Island – 6 Q1 2016 US$8.0m US$5.3m 50% 40.625% (SMI-6) (shallow water GoM) Otto then has an
Slide 9: SMI-6 #2 Well – Drilling to start Q1 2016
SMI-6 #2 Well – Drilling to start Q1 2016 Hercules 264 drilling unit under contract, in success case the well can be completed as a production well and brought on stream within 18 months For personal use only South Marsh Island-6 #2 Appraisal Well South Marsh Island-6 Development Opportunity Miocene
Slide 10: Tanzania
For personal use only TANZANIA (Otto 50% Working Interest) East Africa Rift Sequence Frontier high impact play with drilling in Q3 2016 Low cost onshore plays Large (~150MMbbl) prospect sizes Farm-down in progress Investor Update presentation, December 2015 10
Slide 11: Tanzania (Otto 50% WI): Kito prospect drilling in Q3 2016
Tanzania (Otto 50% WI) Kito prospect drilling in Q3 2016 For personal use only • 2D seismic acquired in 2013 and 2014 has confirmed that the Kito structure in the Kilombero basin is a large frontier exploration prospect • Similarities to the discoveries in Uganda and Kenya make this an exciting gree
Slide 12: Alaska
For personal use only Alaska (Otto 8 to 10.8% Working Interest) Alaskan North Slope Proven production analogues, available infrastructure and high quality 3D seismic covering acreage Moderate cost onshore and moderate to high chance of success plays Giant (multi-hundred MMbbl) prospect sizes Investo
Slide 13: Alaskan North Slope
Alaskan North Slope Home to giant scale oil projects - objective is to find quality reservoir After decades of limited exploration and appraisal, the North Slope is yielding major new discoveries For personal use only • • Otto has secured an interest adjacent to the major producing fields with multi
Slide 14: Alaskan North Slope: 3D seismic
Alaskan North Slope 3D seismic is key to being able to unlock conventional stratigraphic plays For personal use only • US$150m invested by Great Bear in: • 900m2/2,300km2 modern, high quality 3D seismic data; and • Drilling three wells on the acreage • Seismic interpretation is underway with a focus
Slide 15: Alaskan North Slope: Kuparuk C conventional sequence
Alaskan North Slope Kuparuk C conventional sequence has already intersected oil on block For personal use only Initial interpretation of new 3D data has identified N S a number of sizable leads which require more detailed work to convert to drill ready prospects Shallow marine lowstand sand at Kupar
Slide 16: Alaskan North Slope: K10 MFS
Alaskan North Slope K10 MFS shows promise; requires more work to mature to prospect level For personal use only Initial interpretation of new 3D data has identified N S a number of sizable leads which require more Inferred lowstand sand accumulation detailed work to convert to drill ready prospects
Slide 17: Otto Energy Activity Plan for 2016/17
Otto Energy Activity Plan for 2016/17 Multiple drilling events for 2016/17 – first well drilling in Q1 2016 For personal use only Country Asset Q1 16 Q2 16 Q3 16 Q4 16 2017 SMI-6 Drilling SMI-70/71 Drilling option Louisiana/ Gulf of Mexico Bivouac Drilling option Peak New Lease Joint review and stud
Slide 18: Conclusion
Conclusion Otto has used its strong balance sheet to position for an active high-impact drilling program across three quality projects in 2016/17 For personal use only • Louisiana/Gulf of Mexico • Short timeframe (12-18 months) from discovery to production • Low cost operating environment <US$25 per
Slide 19: Additional Information
For personal use only ADDITIONAL INFORMATION Otto Energy Ltd 32 Delhi Street West Perth Western Australia 6005 Telephone: +61 8 6467 8800 Facsimile: +61 8 6467 8801 info@ottoenergy.com Investor Update presentation, December 2015 19
Slide 20: South Marsh Island (SMI-6)
South Marsh Island 6 (SMI-6) Drilling in Q1 2016; drilling 120 metres updip from known production in G20 sands For personal use only • SMI-6 #1 BP02 well drilled in 2014/15 has been completed in the F30/40 sand interval ~100 metres above the primary target interval in the G20 sands • Drilling updip
Slide 21: South Marsh Island (SMI-6): existing production facilities
South Marsh Island 6 (SMI-6) Existing nearby production facilities enable discoveries to be brought on stream in under 18 months For personal use only • Cost to connect first well and bring into production is ~US$8-10m (gross cost, Otto funding 50%) or around US$3-4 per bbl • Total production from t
Slide 22: South Marsh Island 70/71 (SMI-70/71)
South Marsh Island 70/71 (SMI-70/71) Otto has an option to participate in drilling a second well in Q1 2016 For personal use only • Prospective areas updip from existing production in shallow reservoirs (1,500 to 2,100m depth) • Production from the D5 sand interval has occurred around the SM70/71 sa
Slide 23: South Marsh Island 70/71 (SMI-70/71)
South Marsh Island 70/71 (SMI-70/71) Producing salt dome with over 116 MMbbl and 375 Bcf already recovered For personal use only Investor Update presentation, December 2015 23
Slide 24: Bivouac Peak Leases and Right of First Refusal
Bivouac Peak Leases and Right of First Refusal Opportunity to participate in new leases being secured by Byron For personal use only Bivouac Peak Leases: Right of First Refusal • Onshore/marshland leases secured in • Otto has first right to earn 50% of Byron’s November 2015 over 2,400 acres (9.7 par
Slide 25: Reserves and Prospective Resources Potential Post Earn-in
Reserves and Prospective Resources Potential Post Earn-in The following Reserves and Resources may be earned subject to completion of obligations under the farm-in agreement with Byron Energy Ltd For personal use only Licence Net Proved Probable Possible Prospective Revenue Reserves Reserves Reserve
Slide 26: Strong Capital Structure
Strong Capital Structure Cash backed with fully funded drilling For personal use only Capital Structure 30,000,000 $0.08 $0.07 Fully paid ordinary shares 1.181b 25,000,000 Volume (shares traded per day) $0.06 Unlisted options1 8.0m OEL Share Price 20,000,000 $0.05 Cash backing $0.04cps Performance R
Slide 27: Experienced Board & Management Team
Experienced Board & Management Team Board of Directors Senior Management For personal use only John Jetter – Non-Executive Chairman. Matthew Allen – Managing Director & CEO. LLB, BEc INSEAD BBus, FCA, FFin, GAICD Former MD/CEO J.P. Morgan Germany. Non- Global exposure to the upstream oil and gas ind
Slide 28: Disclaimer
Disclaimer This presentation does not constitute an offer to sell securities and is not a solicitation of an offer to buy securities. It is not to be distributed to third parties without the consent of Otto Energy Limited (the “Company”). This presentation contains forward looking statements that ar