Echelon Resources Limited · ASX:ECH
Echelon Resources — Investor Presentation (April 2022)
39 slides from Echelon Resources's investor presentation, Apr 27, 2022
Slide 1: Equity Raising and Corporate Update
New Zealand Oil & Gas Limited Equity Raising and Corporate Update Up to $25m Capital Raising New Zealand Oil & Gas, 26 April 2022
Slide 2: Disclaimer and Important Notice
Disclaimer and Important Notice Information This presentation has been prepared to provide information in relation to a 1 for 2.7625 renounceable rights offer of new ordinary shares (New Shares) in New Zealand Oil & Gas Limited (NZO or the Company) to eligible shareholders (Offer) in New Zealand und
Slide 3: Table of Contents
Table of Contents Company Snapshot & Areas of Operation 4 Summary of Opportunity & Equity Raising Overview 8 Corporate Update 11 Asset Summaries, Financials & Reserves 19 Equity Raising Details & Timetable 25 Key Risks and Restrictions 31 Appendices 32 3
Slide 4: Company Snapshot & Areas of Operation
Company Snapshot & Areas Of Operation
Slide 5: New Zealand Oil & Gas at a Glance
New Zealand Oil & Gas at a Glance AMADEUS BASIN, NORTHERN TERRITORY, AUSTRALIA MEREENIE: New Zealand Oil & Gas 17.5% Cue Energy Resources 7.5% PALM VALLEY: New Zealand Oil & Gas 35% Cue Energy Resources 15% DINGO: New Zealand Oil & Gas 35% Cue Energy Resources 15% SUMATRA, INDONESIA OFFSHORE SOUTH T
Slide 6: Company Snapshot
Company Snapshot CLEAR STRATEGY ACTIVE IN STABLE REGIONS Invest in high quality assets, low-cost operating model. Listed on both ASX and NZX. Focus on current production with attractive development opportunities. Established in 1981, headquartered in Wellington, New Zealand. Near-field, lower-risk e
Slide 7: Good to Grow
Good to Grow AMADEUS ACQUISITION CHANGED THE GAME MAHATO DELIVERING FOR CUE Near-Term Growth Catalysts Financial years. Indicative. Palm Valley and Dingo Further Palm Valley appraisal and Kupe development well and Mereenie flare gas recovery Cashflow Positive. Potential exploration/development wells
Slide 8: Summary of Opportunity & Equity Raising Overview
Summary of Opportunity & Equity Raising Overview
Slide 9: Summary of the Opportunity
Summary of the Opportunity STRONG PORTFOLIO OF Three profitable, producing segments: PRODUCING ASSETS WITH - Amadeus in Australia. DEVELOPMENT UPSIDE - Kupe in New Zealand. - A strategic 50.04% interest in ASX-listed subsidiary Cue Energy Resources. MARKETS ARE HEALTHY, WITH HIGH Oil prices are at t
Slide 10: Equity Raise Overview
Equity Raise Overview • Targeting total shares on issue 224 Million • Issuing 59.5 Million new shares • At 19.2% discount to 22 April closing price SHARES ON ISSUE • Pro-rata allocation to holdings at record date • Over subscription facility • Raising NZ$25 million • Amadeus field development and ex
Slide 11: Corporate Update
Corporate Update
Slide 12: Delivering Strategy
Delivering Strategy WHAT WE PROMISED IN JUNE 2020 Focus Areas Australia and New Zealand. Actively Pursuing Acquire high quality producing assets with development and Investments exploration upside. Prudent Financial Working within our means. Management DELIVERED BY THE END OF 2021 ✓ Focus Areas Amad
Slide 13: Significant Production Added
Significant Production Added 1.6 Annual Production in millions of barrels of oil equivalent (mmboe) 1.2 Kupe Mereenie Palm Valley Dingo Maari Oyong Wortel Mahato 0.8 0.4 0 FY18a FY19a FY20a FY21a FY22e* *FY22 estimated production is as per the company’s 2021 annual report. Graphic reports 100% of Cu
Slide 14: Solid Recent Reserves Additions With Upside Opportunities
Solid Recent Reserves Additions With Upside Opportunities 2P Total Reserves + 2C Contingent & 2U Prospective Resources as at 1 Jan 2022, mmboe net to NZO (including Cue share) 40 Total Increase Decrease 4.0 38.0 6.1 GCoS* 2U** 30 1.1 Palm Valley- Arumbera. 1.1 0.1 24% 37.5 7.5 Expected 1HFY23 mmboe
Slide 15: Production Feeding the Bottom Line
Production Feeding the Bottom Line Revenue Net Operating Cash Inflow Forecast Forecast 50,000 20,000 37,500 $9.8m attributable to newly acquired 15,000 Amadeus Basin assets $’000s $’000s 25,000 10,000 12,500 5,000 - - Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Jun 22 Jun-18 Dec-18 Jun-1
Slide 16: Notional Activities Timeline
Notional Activities Timeline WHERE AMADEUS BASIN, AUSTRALIA CUE, INDONESIA KUPE, NEW ZEALAND WHAT WHEN 2021 2022 2023 2024 PRODUCTION Mereenie Coil Tubing Amadeus De-Bottlenecking ENHANCEMENT Mereenie Flare Gas Compressor M&A Amadeus Acquisition DEVELOPMENT Kupe Compression Kupe Drilling PV-12 PV Dr
Slide 17: Healthy Energy Markets
Healthy Energy Markets US$ Brent Oil prices are rising OIL PRICE TRENDING UPWARDS POSITIVELY IMPACTING MAHATO REVENUES AMADEUS GAS SALES LINKED TO BRENT OIL PRICE AUSTRALIA EAST COAST MARKET Forecast supply constraints are anticipated to US$ create price pressure KUPE RE-CONTRACTING OPPORTUNITY OCTO
Slide 18: Activities This Equity Raise Is Targeting
Let's Look at the Activities This Equity Raise Is Targeting MEREENIE INFILL WELLS Targeting 8.2PJ (net to NZO & Cue) of 2P PALM VALLEY & DINGO undeveloped reserves INFILL DRILLING Targeting 6.6PJ (net to NZO and Cue) of 2P reserves or converting 2C resources STAIRWAY MEREENIE Appraisal of 27PJ (net
Slide 19: Asset Overview
Section 3 Asset Overview
Slide 20: Total 2P Reserves By Country
Total 2P Reserves By Country Dingo Sampang 2.81 0.70 Indonesia 2.12 mmboe Mahato 1.42 Australia 13.30 mmboe Maari 0.61 Palm Valley 2.03 Mereenie New Zealand 8.46 2.58 mmboe Kupe 1.97 Mahato reserves are from the reserves statement included in the Mahato PSC update 29 March 2022. Reserves are effecti
Slide 21: Palm Valley and Dingo Development & Exploration
Palm Valley and Dingo Development & Exploration NZO/CUE FUNDING WELLS Cost-carry of wells TWO WELL EXPLORATION AND DEVELOPMENT PROGRAMME (2022) Low cost exploration, deepening only ADD MATERIAL RESERVES Targeting 6.6PJ net 2P reserves or conversion of 2C resources Exploring 62PJ net 2U un-risked pro
Slide 22: Amadeus Basin, Australia - Mereenie gas field
Amadeus Basin, Australia - Mereenie gas field ADD RESERVES (2023) Mereenie Infill Drilling (~ 8.2PJ of net 2P undeveloped reserves) Appraise Stairway to unlock resource (~ 27PJ of net 2C Contingent) PRODUCTION ENHANCEMENT (2022-2023) Coiled Tubing campaign (+ 1 TJ/d)(net) Mereenie Flare Gas Compress
Slide 23: Taranaki New Zealand - Kupe gas field
Taranaki New Zealand - Kupe gas field DEVELOPMENT DRILLING (2023 ONWARDS) Potential KS-9 well targeting 1.8PJ of net 2P resources, to reinstate plateau production (Subject to FID, expected soon) IMPROVING COMMERCIAL OUTCOMES (2023 ONWARDS) Significant future uncontracted gas in a healthy market Kupe
Slide 24: Cue Developments in Indonesia
Cue Developments in Indonesia MAHATO- ONGOING AND FUTURE ONSHORE DEVELOPMENT DRILLING (2022 ONWARDS) • 92.8 million barrels (in place) field discovered in 2020 • 9 production wells delivered to date production at ~5,500bopd • Ongoing drilling of a further 4 development wells • Analysis suggests furt
Slide 25: Equity Raise Details
Equity Raise Details New Zealand Oil & Gas is seeking to raise up to $25 million in a pro-rata offer of new shares to existing shareholders in New Zealand and Australia, and such other investors as New Zealand Oil & Gas may allow to participate in compliance with applicable laws.
Slide 26: Sources and Uses of Funds
Sources and Uses of Funds 80 80 60 60 NZ$ Millions NZ$ Millions 40 40 20 20 0 0 Equity Raising Cash Net Revenues Amadeus Projects Kupe Infill Well Cue Support M&A Min Working Capital SOURCES USES • New equity provides shareholders with exposure to growth • Amadeus project commitments • Pro-rata offe
Slide 27: Equity Raise Overview
Equity Raise Overview The amount to be raised under the Offer is up to NZ$25 million. • Pro-rata offer of new shares to existing shareholders. Offer size and structure • Any shortfall will be allocated first to an oversubscription facility (see below) for existing shareholders (other than OGOG), the
Slide 28: ASX Focused Future
ASX Focused Future Looking forward the Company intends to play a more active role on the ASX platform and intends to convert its listing status so it holds a full ASX listing ATTRACTION OF THE MOVE KEY POINTS YOU NEED TO KNOW NOW: TO FULL ASX LISTING • The Offer website www.shareoffer.co.nz/nzog wil
Slide 29: Important Dates
Important Dates Event Date Announcement of the Offer 27 April 2022 Record Date for determining eligibility 7pm 5 May 2022 Opening Date and mailing/emailing of Offer documentation 9 May 2022 Closing Date (last day for online applications with payment) 5pm 23 May 2022 Allotment and issue of New Shares
Slide 30: This is an opportunity to invest in the growth of our company
This is an opportunity to invest in the growth of our company. In a time of global instability, in a world needing our energy, ethically-sourced oil and gas from Australia, Indonesia and New Zealand offers new opportunities for continued growth at an attractive balance of risk and return. Funding wi
Slide 31: Key Investment Risks
Key Investment Risks The Company does not guarantee any particular rate of return or its performance. An investment in the Company’s securities is subject to investment and other known and unknown risks, some of which are beyond the control of the Company. Key risks to the Company and the Offer incl
Slide 32: Appendices
Appendices 1.Reserves Statement 2.Financial Results and Projections 3.Asset Summary Sheets 32
Slide 33: Reserves Statement
Reserves Statement Oil and gas reserves, and contingent and prospective resources, are reported as at 1 January 2022, unless otherwise stated, and follow the SPE PRMS Guidelines (2018). The volumes presented are net to New Zealand Oil & Gas, including Cue’s reserves and resources at 100% (noting New
Slide 34: Condensed Statement of Financial Position
Condensed Statement of Financial Position For the half year ended 31 December 2021 Unaudited Half Year Audited Full Year Unaudited Half Year Audited Full Year $000 31 Dec 2021 30 Jun 2021 31 Dec 2021 30 Jun 2021 ASSETS LIABILITIES Current assets Current liabilities Cash and cash equivalents 33,444 7
Slide 35: Amadeus Basin, Australia - Mereenie
Amadeus Basin, Australia MEREENIE GAS FIELD IMPROVING COMMERCIAL OUTCOMES Acreage of 281km2 on two permits Multiple short and medium term gas contracts 71 existing wells Improving average realised price Two production facilities Near and medium term development opportunities Pipeline linked to North
Slide 36: Amadeus Basin, Australia - Palm Valley
Amadeus Basin, Australia PALM VALLEY GAS FIELD KEY OPPORTUNITIES Acreage of 616km2 Near term development and exploration drilling 10 existing wells Improving commercial opportunities Production facility Multiple short and medium term gas contracts Pipeline linked to Northern Territory and East Coast
Slide 37: Amadeus Basin, Australia - Dingo
Amadeus Basin, Australia DINGO GAS FIELD KEY OPPORTUNITIES Acreage of 468km2 Near term development and exploration drilling Two existing wells Long-term take-or-pay gas contract with Power and Production facility Water Corporation providing power for Alice Springs Linked to local markets DINGO FIELD
Slide 38: Taranaki, New Zealand - Kupe
Taranaki, New Zealand KUPE GAS AND CONDENSATE GAS FIELD KEY OPPORTUNITIES Acreage of 256km2 Improving commercial opportunities 3 existing production wells Significant future un-contracted gas in a healthy market Dedicated production facilities extracting gas, LPG and condensate Kupe re-contracting o
Slide 39: Cue Developments in Indonesia
Cue Developments in Indonesia MAHATO PSC Cue 12.5% ONGOING and Future Onshore Development Drilling 92.8 million barrels (in place) field discovered in 2020. 8 production wells delivered (1 Jan 22). Production up from 0 to 5,500 bopd. Recently announced material increase in 2P Total Reserves to 1.4mm
Echelon Resources — Investor Presentation (April 2022) on 6ix