Australis Oil & Gas Ltd. · ASX:ATS
Australis Oil & Gas — Investor Presentation (October 2018)
33 slides from Australis Oil & Gas's investor presentation, Oct 29, 2018
Slide 1: Large undeveloped oil position provides the platform for significant value generation
For personal use only Large undeveloped oil position provides the platform for significant value generation Investor Presentation 29 October 2018
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer For personal use only 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
Slide 3: Executive Summary
For personal use only Executive Summary Tuscaloosa Marine Shale (TMS) Portugal Appendix
Slide 4: Investment Highlights
Investment Highlights Large undeveloped TMS oil position provides the platform for significant value generation For personal use only ▪ Asset is focused in production delineated core of the TMS Operator of Quality ▪ Australis TMS production is liquids rich (>95% oil) and sold at a premium to WTI (>$
Slide 5: Corporate Overview
Corporate Overview Existing reserves, production and revenue with an institutionally supported register For personal use only ▪ Founded in 2014 with significant capital contribution by Capital Structure (October 2018)(A) the founders & key management of Aurora Oil & Gas, listed on the ASX in July 20
Slide 6: Australis TMS Land Position
Australis TMS Land Position Australis has increased its ‘core’ land position from 95,000 to 110,000 net acres For personal use only Australis TMS Position Australis TMS Map Land Position @ 1 Oct 2018 Net Acres HBP 28,500 acres Total Core Area 110,000 acres Future Net Well LocationsA 410 Single Well
Slide 7: Pathway to Value
Pathway to Value TMS Core acreage has multiple catalysts to realise and increase value For personal use only Value Catalysts Single Well Economics - Pre-tax NPV10 (US$ in millions)A ▪ Type curves based on historical Well average well productivity $4.9 $18.0 Performance ▪ Technology improvements over
Slide 8: Significant Underlying Value
Significant Underlying Value Australis continues to add oil inventory on a highly accretive basis For personal use only TMS Reserves & Resource Estimates ▪ Australis YE17 Reserves estimated by Ryder Scott. Based on permitted 5 year development YE 17 Independent Estimate1 period and modest rig progra
Slide 9: Initial Drilling Program Commenced
Initial Drilling Program Commenced First wells have been spud with drilling progressing ahead of plan For personal use only ▪ Initial well program seeks to Well Locations – First 4 Wells demonstrate value proposition by repeating historical well performance at updated cost base. ▪ The Nabors B14 dri
Slide 10: Tuscaloosa Marine Shale (TMS)
For personal use only Executive Summary Tuscaloosa Marine Shale (TMS) Portugal Appendix
Slide 11: What is the TMS?
What is the TMS? The TMS is an emerging shale play: its ‘core” is comparable with other prolific unconventional plays in the US For personal use only TMS Location ▪ Onshore basin - Louisiana and Mississippi. ▪ On trend with Eagle Ford Basin in Texas, similar depositional history and age. ▪ 80 horizo
Slide 12: Australis TMS Well Performance
Australis TMS Well Performance The 15 wells drilled in 2014/15 within Australis’ core acreage demonstrate significantly higher For personal use only average productivity than the average of other TMS wells drilled in Mississippi Individual 24 Month Cumulative Production Per Well – TMS Mississippi4,5
Slide 13: TMS Core Type Curve
TMS Core Type Curve ATS type curve is history matched to production from the most recent 15 Mississippi ATS wells For personal use only Total oil production per well initial, 24 months (kbbls) Production profiles (see appendix for full data set and analysis) 40,000 Produced oil volume (bbls) Lawson
Slide 14: TMS Oil Productivity Compared to Permian
TMS Oil Productivity Compared to Permian The average production from Australis’ TMS wells drilled in 2014 are significantly higher than Permian wells drilled in the same year. Industry improvements since 2014 have yet to be applied For personal use only to the TMS Midland Basin Delaware Basin 200 20
Slide 15: Capital Cost Profile of Early TMS Wells
Capital Cost Profile of Early TMS Wells TMS well costs trended downwards over time in line with other plays For personal use only ▪ Australis conservative well cost estimate – US$11MM for a single well (US$1,467/ft)6 ▪ Other play participants have quoted US$8.7MM5 ▪ No TMS wells have been drilled in
Slide 16: Well Cost Overview
Well Cost Overview The major US shale plays have seen significant cost declines, which is expected to be repeated in the TMS For personal use only Comparable Plays Well Cost Trends11 ▪ TMS Drilling costs incurred prior to 2015 were already following the same trend as other US shale plays and this is
Slide 17: Indicative Drilling Timetable
Indicative Drilling Timetable Spud to production lead time of 5 to 6 months for pairs of wells For personal use only ▪ The drilling estimates of ~40 days are based on the average duration achieved by Encana during 2014, but do not assume any improvement as a result of operational efficiencies achiev
Slide 18: Capital Resources
Capital Resources Existing cash and recent financing facility gives Australis access to over US$100 million for the initial For personal use only drilling program 1 Cash at Bank of US$41 million ▪ Cash position as at 1 October 2018 ▪ Raised US$31 million through a well-supported private placement at
Slide 19: Austin Chalk Trend
Austin Chalk Trend Following recent EOG well results, there is significant activity in the South West targeting Austin Chalk For personal use only Austin Chalk Trend ▪ EOG drilled the Eagles Ranch 14H-1 well during Q3 2017. ‐ Public data indicates liquids rich production. ‐ Well performance on par w
Slide 20: Portugal
For personal use only Executive Summary Tuscaloosa Marine Shale (TMS) Portugal Appendix
Slide 21: Portugal Concessions Overview
Portugal Concessions Overview Australis owns two concessions onshore Portugal with significant development potential For personal use only Asset Highlights Asset Location Significant Gas ▪ Large in-place discovered and tested gas Resource accumulation with 2C resources of 458 Bcf2 ▪ Limited explorat
Slide 22: Portugal Prospectivity & Volumetrics
Portugal Prospectivity & Volumetrics Appraisal of a gas discovery with multiple nearby prospects and leads with a significant resource base For personal use only Proposed Work Program Batalha Gas Discovery Batalha Concession Prospects ▪ Drill and test the gas discovery with a vertical well ▪ Drill a
Slide 23: Portugal Concessions Status
Portugal Concessions Status Australis is working with Portuguese Authorities to achieve the necessary regulatory approvals to For personal use only commence exploration and appraisal activity Work Program to Date ▪ Australis has completed a number of detailed subsurface engineering studies to review
Slide 24: Appendix
For personal use only Executive Summary Tuscaloosa Marine Shale (TMS) Portugal Appendix
Slide 25: Directors & Management
Directors & Management Demonstrated track record in oil & gas For personal use only Jon Stewart – Non-Executive Chairman Graham Dowland – CFO & Finance Director ▪ >25 years in the upstream oil and gas industry ▪ >25 years experience in the oil and gas industry ▪ Founder and former Chairman and CEO o
Slide 26: TMS Core Type Curve
TMS Core Type Curve Summary of monthly oil production data for the most recent 15 Encana drilled, ATS operated modern offset Mississippi wells For personal use only Lewis 7- Pintard Lyons 35H Pintard Longleaf Longleaf Mathis Mathis Lawson Ash 13H Sabine Sabine McIntosh Reese Well Name Ash 13H 2 Aver
Slide 27: Single Well TMS Core Type Curve
Single Well TMS Core Type Curve ATS type curve is history matched to production from the most recent 15 Mississippi wells (drilled by ECA, operated by ATS) For personal use only TMS Core TC – Assumptions TMS Core Type Curve v TMS Production 250,000 ▪ Oil EUR – 610 Mbbls ▪ Gas EUR – 159 MMscf 200,000
Slide 28: TMS Value
TMS Value Potential 410 future net well locations with strong economics For personal use only Single Well Economics and Sensitivities – Pre-tax NPV10 (US$ in millions) $11/well $10/well $9/well $18.0 $17.1 $16.1 $3.7 $3.7 $3.7 $13.1 $12.1 $11.2 $3.0 $3.0 $3.0 $8.2 $7.2 $6.3 $2.4 $14.4 $13.4 $12.5 $2
Slide 29: Single Well Economics – IRR Sensitivities
Single Well Economics – IRR Sensitivities 410 future wells with attractive return profile For personal use only Single Well Economics and Sensitivities – Pre-tax IRR D&C $11 MM/well D&C $10 MM/well D&C $9 MM/well 161% 126% 101% 102% 116% 80% 91% 64% 73% 58% 73% 45% 36% 57% 46% 41% 32% 25% $55 $70 $8
Slide 30: TMS Base Case Economics – Key Assumptions
TMS Base Case Economics – Key Assumptions The production and opex assumptions are based on history and the capex costs are current third party service providers’ estimates For personal use only Base Case Assumptions* Production Forecast EUR (30 Years) 30,000 700,000 Gas 0.16 Bcf Oil/Condensate 610 M
Slide 31: TMS Crude Oil Price
TMS Crude Oil Price The premium pricing of LLS to other onshore US crude benchmarks is becoming increasingly more attractive For personal use only Crude Oil Spot Price, Daily Settlement, US$/bbl ▪ Because of the proximity of Australis’ wells to the St. $90 James Oil Terminal in $80 Louisiana and the
Slide 32: Footnotes
Footnotes 1. All estimates and risk factors taken from Ryder Scott, report prepared as at 31 December 2017 and generated for the Australis concessions to SPE standards. See ASX For personal use only announcement released on 30 January 2018 titled “Reserves and Resources Update Year End 2017”. The an
Slide 33: Glossary
Glossary Unit Measure Unit Measure For personal use only 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 Desc
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