Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — FY2014 Earnings Presentation
32 slides from Amplitude Energy's earnings presentation, Aug 18, 2014
Slide 1: Bungaloo-1, Otway Basin
For personal use only Bungaloo-1, Otway Basin
Slide 2: Webcast and conference call details
For personal use only Webcast http://event.on24.com/r.htm?e=830422&s=1&k=674DE1C2F46781B08CFBD05CFA1CD96C Conference call Conference ID number: 8107 0716 Australia: Toll free: 1800 123 296 International dial- in Toll: + 61 2 8038 5221 - (can be used if dialing from international location) Toll free:
Slide 3: Disclaimer
For personal use only The information in this presentation: • 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 4: Key messages
For personal use only 1. Cooper Energy has had its best year yet with its strongest financial and production results and substantially increased resources. 2. The base ingredients for the gas strategy are in place and execution is accelerating. We have started the work to commercialise our Gippsland
Slide 5: FY14 highlights
For personal use only • Revenue of $72.3 million, up 35% • Net profit after tax $22.0 million up from $1.3 million • Underlying net profit after tax of $25.3 million, up from $ 12.7 million • Cash and investments of $75.1 million up from $68.1 million • Safety improvement resulted in LTIFR of 0.8 an
Slide 6: Financial summary
For personal use only $ million unless otherwise indicated FY 14 FY13 Production MMbbl 0.59 0.49 ▲ 20% Sales volume MMbbl 0.58 0.48 ▲ 21% Oil price average AUD$/bbl 124.08 112.31 ▲ 10% Sales revenue 72.3 53.4 ▲ 35% Other revenue 2.8 2.3 ▲ 22% Net profit after tax 22.0 1.3 ▲ 1,592% Underlying NPAT 25
Slide 7: Underlying NPAT bridge FY13 to FY14
For personal use only $ million +6.9 +1.7 -2.5 +0.5 -2.6 -3.4 25.3 +12.0 12.7 FY13 Sales revenue - Sales revenue - Cost of Sales Other revenue Offices & salaries1 Other costs Tax expense FY14 volume price 1. Salaries net of recharges 7
Slide 8: Cash and investments movement
For personal use only $ million 81.0 32.4 1.4 98.2 49.3 Total cash & Total cash & 0.3 investments: 75.1 investments: 68.1 Investments at Investments at fair value 26.0 fair value1 20.2 Cash & deposits 47.9 0.1 0.3 49.1 Cash & deposits Cash from Investing, operations Financing & FX + $50.3m - $49.5m
Slide 9: Production
For personal use only 0.05 0.59 0.52 0.02 0.54 0.49 0.47 0.49 0.46 0.41 Indonesia Cooper Basin FY09 FY10 FY11 FY12 FY13 FY14 FY13 FY14 • FY14 production of 0.59 MMbbl vs initial guidance of 0.54 – 0.58 MMbbl • Cooper Basin: some production was deferred to FY14 from FY13 pipeline interruptions • Indo
Slide 10: Safety performance (LTIFR)
For personal use only 12 month rolling Lost Time Injury Frequency Rate • FY14 LTIFR of 0.8 from 1.75 at June 13 APPEA and Cooper Energy • Hours worked increased 148% 2.5 − increased from 0.48 to 1.19 million hours • 1 lost time injury for year: allergic reaction 2.0 Cooper Energy • Matching APPEA FY
Slide 11: Exploration wells and seismic investment
For personal use only Conventional exploration wells spudded Seismic acquired and processed Number $ million invested 10 4.6 8 3.7 6 6 2.5 4 3 1.5 .06 2010 2011 2012 2013 2014 2015P 2010 2011 2012 2013 2014 • FY14 exploration featured reduced oil exploration wells and continued investment in seismic
Slide 12: Reserves and contingent resources
For personal use only Proved & Probable (2P) reserves Contingent Resources (2C) MMbbl MMboe 2.16 17.0 0.59 0.45 2.01 Tunisia 18.0 Gippsland Basin Cooper Basin 5.7 30-Jun-13 0 Production 0 Revisions 30-Jun-14 30-Jun-13 30-Jun-14 Reserves1 Contingent Resources2 MMbbl at 30 June 2014 1P 2P 3P MMboe at
Slide 13: Cooper Basin
For personal use only • Oil production up 17% – increased from 0.46 MMbbl to 0.54 MMbbl • Patchawarra Formation oil pool discovery at Worrior • 3 unsuccessful exploration wells • Dundinna seismic survey (PELs 90, 100 & 110) acquired – to target drilling in northern permits • PEL 92 Joint Venture inc
Slide 14: Otway Basin
For personal use only • Expanded acreage coverage of Penola Trough – traded 35% PEL 495 for 30% PEL 494 & PRL 32 – zero net cost to Cooper Energy • Jolly-1 and Bungaloo-1 deep wells – confirmed location of Casterton Formation unconventional play – identified deep conventional gas play – shale gas po
Slide 15: Gippsland Basin BMG acquisition
For personal use only • Acquired 65% interest and operatorship at low cost – $1 million initial payment and – $5 million conditional on hydrocarbon production • Sub-sea infrastructure in place from previous life as oil project with gas injection • Pre-acquisition review indicates commercial gas deve
Slide 16: Basker and Manta contingent resource and commercialisation path
For personal use only Reserves determination Basker & Manta - existing 1C 2C 3C - 3rd party gas Contingent Resource1 (P90) (P50) (P10) - exploration (100% JV) Gas Bcf1 63 104 181 Optimum Funding development Liquids MMbbls 4 7 11 concept Total MMboe 17 28 47 Bcf: Conversion factor to PJ is 1 Bcf = 1.
Slide 17: Indonesia
For personal use only • Annual production increased from 25 kbbls to 55 kbbls • Successful workovers – Tangai-1 increased water disposal capacity – Tangai-3 (August 14) increased production and 2 new horizons successfully tested – Farmout prospective Merangin III in FY15 • 2D Seismic survey in Sumba
Slide 18: FY14 results and FY15 priorities
For personal use only Element FY14 results Advancing in FY15 through: Record FY14 production Drilling on 3D seismic in PEL 100,100 and PEL 92 Limited oil exploration drilling unsuccessful Worrior appraisal Strong cash generating oil Dundinna seismic in northern permits Evaluating opportunities busin
Slide 19: FY15 exploration plan
For personal use only 1 Otway Tunisia Cooper Basin 5 Indonesia 2 Cooper Basin 100,110 Indonesia 3 4 Cooper Basin PEL 92 Gippsland Otway FY14 FY15 Plan $ million Cooper 7 Gippsland 6 Otway 1 Indonesia 7 Tunisia 3 Total exploration 24 19
Slide 20: FY15 guidance and expenditure
For personal use only Expenditure Wells # 0.59 Total Exp. Dev. Exp Dev 0.52 0.49 0.50 – 0.56 Australia 0.41 • Cooper Basin 15 7 10 9 6 • Otway Basin 1 1 - - - • Gippsland Basin 6 6 - - - Indonesia 13 7 6 1 2 Tunisia 1 3 3 - - - Total 40 24 16 10 8 FY11 FY12 FY13 FY14 FY15g • FY15 production guidance
Slide 21: Summary and outlook
For personal use only Cooper Energy commences FY15 in a strong financial position with cash and financial assets exceeding $75 million and bank facilities Production guidance for FY15 of 500 – 560 MMbbls has the company set for its second highest annual output yet Large exploration program targeting
Slide 22: For personal use only
For personal use only
Slide 23: Appendices
For personal use only • Reconciliation of statutory and underlying profit • PEL 92 conversion to Retention Leases • FY14 major activities program • Presenters • Petroleum reserves • Contingent resources • Abbreviations 23
Slide 24: Reconciliation of statutory and underlying profit
For personal use only $ million 12 months ending 30 June 2014 2013 Net profit after tax 22.0 1.3 Adjusted for: Impairment of exploration assets held for sale 0.2 0.4 Impairment of available for sale investments 3.1 0.0 PRRT deferred tax asset derecognised/ (recognised) - 11.0 Underlying net profit a
Slide 25: PEL 92 conversion to Retention Licences
For personal use only The PEL 92 Joint Venture has been granted 20 Petroleum Retention Licences (PRLs 85 -104) covering the entire 1,884 km2 area of what was previously PEL 92. PRLs 85-104 were granted for 5 year terms, all commencing 6 June 2014, with the joint venture holding rights of renewal. Fo
Slide 26: FY15 major activities program
For personal use only Location License Operator Sept Qtr Dec Qtr March Qtr June Qtr Carryover wells and reprocessing in H1. 4 PEL 92 Beach Reprocessing exploration wells, 3 development wells in H2 Cooper PEL 90, 100,110 Senex 5 exploration wells PPL 207 Senex 250 km 2 3D seismic, 3 development wells
Slide 27: Petroleum Reserves as at June 2014
For personal use only Petroleum Reserves as at 30 June 2014 MMbbl Proved, Probable & Proved (1P) Proved & Probable (2P) Possible (3P) Cooper Basin 0.71 1.54 2.61 Indonesia 0.14 0.47 0.81 Total 0.85 2.01 3.42 Note: Reserves include Cooper Energy’s share of future crude fuel usage in the Cooper Basin.
Slide 28: Contingent Resources as at June 2014
For personal use only Contingent Resources as at 30 June 2014 MMboe 1C 2C 3C Cooper Basin 0.0 0.01 0.03 Gippsland Basin (BMG) 10.8 18.0 30.6 Tunisia (Hammamet West & Tazerka) 9.0 17.0 39.5 Total 19.8 35.1 70.1 Note: The Contingent Resource assessment includes resources in the, Hammamet West Field, i
Slide 29: Presenters
Presenters For personal use only David P. Maxwell Jason de Ross Managing Director Chief Financial Officer Andrew Thomas David Maxwell joined Cooper Energy in Jason de Ross joined Cooper Energy in Exploration Manager September 2011, bringing over 25 years’ September 2012, bringing 20 years’ Andrew Th
Slide 30: Abbreviations
bbls barrels of oil For personal use only boe barrel of oil equivalent bopd barrel of oil per day EBITDA earnings before interest, tax, depreciation and amortisation kbbls thousand barrels LTIFR Lost Time Injury Frequency Rate. Lost Time Incidents per million man hours worked MMbbl million barrels o
Slide 31: Contact details
For personal use only Website: cooperenergy.com.au Investor relations: Don Murchland +61 439 300932 donm@cooperenergy.com.au Address: Cooper Energy Limited Level 10 Waymouth St Adelaide SA 5000 + 61 8 8100 4900 31
Slide 32: For personal use only
For personal use only