Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — Investor Presentation (April 2016)
32 slides from Amplitude Energy's investor presentation, Apr 29, 2016
Slide 1: Bungaloo-1, Otway Basin
For personal use only Bungaloo-1, Otway Basin
Slide 2: Important information
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: Investment highlights
For personal use only 1 2 3 4 450,000~500,0001 bbl pa Gippsland Basin Gas Hub Cash & investments: $27 million2 Management experienced in Operating cost2: A$30/bbl 2C Contingent Resource: 347 PJ3 gas commercialisation Zero debt2 Cooper Basin Western Flank Low on cost curve, well located Board experie
Slide 4: Company overview and asset areas
For personal use only Market • Market-driven approach • Building customer relationships & portfolio Cooper Basin • Cash generating oil production Gippsland Basin Otway Basin • Gas exploration acreage • Gas resources and projects • Eastern Australia’s largest gas supply source • Ideally located: clos
Slide 5: Company history and milestones
For personal use only 2015 2012 Sole project enters FEED Acquires Somerton BMG Business Case identifies 2002 Energy and strong Otway Manta gas opportunity position First gas sales agreement: O-I Cooper Energy listed, Australia then cash generating oil Takes position in BAS; leads to production weste
Slide 6: Sole FID and exit from non-Australian operations
For personal use only Sole gas project Final Investment Decision Forecast to generate revenue of $85 - $100 million1 pa to Cooper Energy from 2019 Complete the exit from non-Australian operations Indonesia divestment and Tunisia withdrawal to complete shift in focus to Australia ….whilst also mainta
Slide 7: Production growth outlook
For personal use only Current FY20: FY22: 0.5 million boe Phase 1: Sole gas project Phase 2: Sole+ Manta gas and liquids • 100% oil • over 2 million boe pa • ~ 5 million boe pa • Ongoing drilling required to • gas is ~ 85% total COE production • gas is ~ 85% total COE production maintain production
Slide 8: 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 Source: EnergyQuest EnergyQuarterly March 2016 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 * East
Slide 9: South East Australia gas demand and supply balance
For personal use only South East Australia gas demand vs production/contract from existing suppliers Forecast South East Australia gas demand and supply balance PJ pa Pj pa 500 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100 450 400 50 350 = supply/ 300 demand 0 250 balance 200 -50 150 -100
Slide 10: 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 2018/19 • Queensland and Cooper Basin commitments to Gladstone LNG • Gladstone taking gas from sources previously focussed on SE Australia • CSG ex
Slide 11: Gippsland Basin gas hub
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%) ~2411 PJ Longtom (SVW 100%) ~2.61 MM bbl ~1061 PJ Manta Gas field COE 652% & Operator, BPT2 35% 1 2C Contingen
Slide 12: Sole gas field development concept
For personal use only • Simple reservoir structure • Conventional recovery • Dry gas, pipeline spec CO2 • Simple development concept planned − single near-horizontal subsea well for good reservoir access − dedicated pipeline and umbilicals to existing Orbost plant – modifications to existing Orbost
Slide 13: Sole project gas, cost and customers
For personal use only • 241 PJ (100% basis) over 9 – 10 years Gas & revenue • COE share ~12.5 PJ pa or 121 PJ • Pricing within market forecast range; typically $7 - $8/GJ • Sale of gas and tolling revenue from Orbost Gas Plant (COE 50%) • To be determined by current FEED process due to complete June
Slide 14: Indicative gas sales and contracting
For personal use only Indicative PJ COE sales 14 12 10 Opportunity gas 8 To sell pre-FID 6 AGL & O-I agreements 4 2 0 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 • Pre-FID target of 10 PJ pa contracted: currently 7.6 PJ pa subject to agreements • $7/GJ to $8/GJ give robust economics and s
Slide 15: Indicative project cash flows and NPV
For personal use only Indicative illustration • Majority of cash outflow within 20 months of first gas Cash flows − enhances economics • NPV builds rapidly as project is derisked − from FID to first gas and beyond • Simple project design, capital and operating cost metrics • Strong stable ongoing ca
Slide 16: Path to Final Investment Decision
For personal use only Gas contracts • Targeting 10 PJ pa for FID • Agreements with O-I & AGL for 7.6 PJ pa Plant & facilities Finance • Front End Engineering & Design • Funding strategy done • 63% complete end-March • Under budget • Funding options • On plan FID • Maximise shareholder return Structu
Slide 17: Cooper Basin oil production and costs
For personal use only Cooper Energy oil production Production costs million barrels Direct cost A$ per barrel FY16 Q3 YTD 0.59 29 Netback 0.52 0.47 0.49 0.48 0.50- 0.41 to 5 Royalties 0.45 12 Transport expenses 13 Operating costs 2010 2011 2012 2013 2014 2015 2016 • March Qtr YTD direct costs A$30.0
Slide 18: March quarter year-to-date results
For personal use only March 16 March 15 YTD YTD • Production on track for guidance, March YTD up 1% on pcp Production ‘kbbl 360 356 • Revenue down 30% due to oil price (down 32% average A$) Sales Revenue $ million 20.8* 29.8 • Cash and investments of $27.1 million at 31 March + proceeds from Indones
Slide 19: Indonesia and Tunisia exit plans
For personal use only Data room Withdrawal plan • Initiated December quarter • Process ongoing on permit by permit basis Exploration acreage: Sumbagsel and Merangin III PSCs (COE - Nabeul: joint venture has withdrawn. Finalising exit terms with 100%) Government • Agreed sale to Mandala Energy for US
Slide 20: Upcoming milestones
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 contract secured Indonesia exploration assets sale Indonesia production asset sales process FEED complete Bankable gas contracts Indonesia expl
Slide 21: 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/GJ to $8/GJ over 8-10 years ~ 90 PJ Uncommitted gas • Gas available for contracting to eastern Austral
Slide 22: Appendices
For personal use only Appendices
Slide 23: 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 4,916 • Cash generating from production of approx. 450,000 - 500,000 Market capitalisation2 $83 mill barrels of oil pa Cash & investments3 $27 mill
Slide 24: Gippsland 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 25: Manta gas field
For personal use only • Gas resource of 106 PJ 2C Contingent and Risked Prospective Resource of A A’ 10 PJ1 (Cooper Energy 65% & Operator) • COE Business case identified economic opportunity for Manta development • Manta gas attracting enquiries from gas buyers • Untested Golden Beach reservoirs ide
Slide 26: Cooper Basin operations
For personal use only • Q3 16 YTD oil production of 250 kbbls • March YTD Operating cash cost of A$29.77/bbl including transport and royalties • All drilling deferred into FY17 • Callawonga facilities expansion project studies ongoing, production capacity projects deferred into FY17 • Seismic invers
Slide 27: 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 28: Hedge arrangements
For personal use only Hedge arrangements Q4 FY16 H1 FY17 H2 FY17 H1 FY18 Total (bbl remaining as at 31 March 2016): A$80.00 – 90.57: zero cost collar options 30,000 - - - 30,000 A$57.00 – A$69.70: zero cost collar options 30,000 60,000 30,000 120,000 A$54.45 floor + 50% above floor: zero cost - 30,0
Slide 29: Sole and Manta indicative timeline
For personal use only FID First Gas Gas Production FID Business First Gas Case Prod'n Manta-3 Sole Development Manta Development Sole Sole Gas Sales Agreements Manta Gas Sales Agreements LOIs Sole Reserves Manta Reserves Booking Booking 1 Indicative only and subject to review at key milestones and j
Slide 30: Indonesian acreage
Indonesian acreage Exploration assets subject to sale agreement; Tangai-Sukananti KSO divestment process initiated F3° 00'S acquired” by Mandala Energy [EG cooper Energy permit S&S lien S&® Ge fel Pipeline * subject to regulatory approval 4° 00'S a J Sumarta Gy @ South Sumatra Basin BAZ ia SOUTH CHI
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