Otto Energy Limited · ASX:OEL
Otto Energy — 121 Oil and Gas Conference 2017
24 slides from Otto Energy's conference presentation, Oct 30, 2017
Slide 1: 121 Oil and Gas Conference
ASX : OEL 121 OIL AND GAS CONFERENCE Gulf of Mexico Shelf oil and gas explorer/producer Matthew Allen, Managing Director and CEO 30-31 October 2017
Slide 2: Stop Press – Latest News
STOP PRESS – LATEST NEWS ST 224 exploration well drilling now – at target interval mid-December ST 224 surface casing set, BOP’s installed and at 1,637 feet MD SM 71 drilling will test 5.7MMboe (gross) prospective resource in December SM 71 development on schedule for first production by Jan
Slide 3: A$8.5m Placement Completed in October 2017
A$8.5m Placement Completed in October 2017 Heavily oversubscribed placement to institutional and sophisticated investors Offer Structure: • First equity raise by Otto since 2009. Priced at A$0.035 per share • Placement was well supported by directors, No. A$ existing shareholders and new institution
Slide 4: Experienced Board & Management Team
Experienced Board & Management Team Board of Directors Senior Management John Jetter – Non-Executive Chairman. Matthew Allen – Managing Director & CEO. LLB, BEc INSEAD BBus, FCA, FFin, GAICD Former MD/CEO J.P. Morgan Germany. Global exposure to the upstream oil and gas industry with Non-Executive Di
Slide 5: Pathway into North America portfolio
Pathway into North America portfolio Gulf of Mexico delivers high margin projects at low oil prices Executed sale of interest in Galoc, Philippines Sold working interest for US$108 million valuing interest at US$32.70 Acquired interest in per bbl in the ground. Alaska North Slope acreage Delivered A
Slide 6: Otto Energy's Gulf of Mexico Portfolio
Otto Energy’s Gulf of Mexico Portfolio • Option to drill a well at Bivouac Peak secured • Multi-well development at SM 71, in production Jan 2018 • B65 prospective resource to be tested during development drilling • Option to secure 50% equity in adjacent block at VR232 or • Farm-in to ST-224 delive
Slide 7: Gulf of Mexico Shelf counter-cyclical play
Gulf of Mexico Shelf counter-cyclical play Limited investment in US conventional exploration – mature province yielding new discoveries Shale oil revolution SM71 breakeven < • Gulf of Mexico is a mature oil and gas province – US$25/bbl producing since 1950’s • Over US$21.4 billion in Permian shale M
Slide 8: Our Growth Strategy
Our Growth Strategy 1000’s of drill ready prospects available for farm-in at near ground floor terms because: VR 232/ • Shelf exploration is SM 74 capital starved Exploration Prospect ST 224 Success • Lease Expiry is screening Bivouac Heading for imminent ongoing SM 71 B65 Peak Production [SM 71 D5]
Slide 9: Otto's Gulf of Mexico Strategy
Otto’s Gulf of Mexico Strategy Targeting a portfolio of high margin, high chance of success and near term production assets Focus on prospects with the following characteristics: Miocene/Pliocene geology which are amplitude supported Investing capital into drilling, not seismic Seeking early c
Slide 10: South Marsh Island 71 (SM 71) – D5 Sand Discovery
South Marsh Island 71(SM 71) – D5 Sand Discovery SM71 D5 Sand RTM Amplitude Map • Production expected to commence in Jan 2018 • Initial projected flow rates over B’ 1,500 bbls/day per well (2 well initial dev) SMI 71 #1 • SM 71 #1 well logged 151’ TVT oil pay in the B I3, J, D5 and D6 sands • SM 71
Slide 11: SM71 Byron #1 Well Hydrocarbon Sand Intersections
SM71 Byron #1 Well I, J, D5 & D6 Hydrocarbon Sand Intersections B BYE SM71 SHL B’ D5 Sand Amplitude Map I Sand Production 590 Mbo Historical Production J Sand Production 3.3 Mmbo Historical Production Erosional #1 Truncation B’ I Sand B J Sand #1 SHL B65 Sand Erosional Truncation Salt D5 Sand Notice
Slide 12: SM71 Development: 3 Well Scenario
Note this slide sourced from Byron Energy presentation dated 14 August 2017. Refer to Slide 22 for updated Reserve and Resource information. SM71 Development: 3 Well Scenario Conceptual Well Placement and Timing BYE SM71 SHL 91 NFO TVT 1,000-1,500 bopd First Production late 2018? I Sand J Sand BYE #
Slide 13: SM71 – B65 Sand – Comparison of Prospect to Production
Note this slide sourced from Byron Energy presentation dated 14 August 2017. Refer to Slide 22 for updated Reserve and Resource information. SM71 – B65 Sand – Comparison of Prospect to Production SM71 Prospect SM73 Production B65 Vp/Vs B65 Vp/Vs *5.0 mmbo + 4,800 mmcf NET 10.1 mmbo + 9,800 mmcf Coll
Slide 14: South Marsh 71
Manned Tripod South Marsh 71 Development plan Complete Manned Tripod Expected completion Sep 2017 Kinetica 30” Gas Lift boat delivery to SM71 location Oct 2017 Drilling rig arrives Nov 2017 Departs Jan 2018 Complete the #1 Well in D5 Sand SM71 Gas – 7000’ to SM71 Oil – 500’ to Crimson 8” Oil Drill t
Slide 15: South Marsh Island 71 (SM 71)
South Marsh Island 71 (SM 71) Otto’s first GoM shelf discovery – production to start Jan 2018 Stacking of cellar Cellar Deck nears deck completion Sub-cellar Sub Cellar and Deckcellar nearsdecks in place completion Jacket ready for loadout Welding Interconnect Pipework Construction progress on tripo
Slide 16: South Timbalier (ST 224)
South Timbalier 224 (ST 224) Amplitude supported, gas/condensate prospect currently drilling – at target mid-December ST224 Prospect W&T Offshore (operator) 39% Otto Energy 25% JV Partners Houston Energy 11% Other private US company 25% • Upper Pliocene – Bul 1 trend amplitude supported gas/condensa
Slide 17: Bivouac Peak
Bivouac Peak Onshore Louisiana gas/condensate prospect to be drilled in 2018 – 20.5MMboe WI Prospective Resource BYRONENERGY LIMITED Cris I – Cib Op Trend Active Production Prospect Acreage Note: Otto will earn interests in the above resources volumes by participating in wells. The estimated quantit
Slide 18: Alaska North Slope
Alaska North Slope New conventional discoveries add to prospectivity of this prolific region Caelus Smith Bay Conventional Discovery (Oct 2016) • Caelus-Tulimaniq #1 & step-out Caelus-Tulimaniq #2 • Brookian submarine fan play • 183ft & 223ft net oil pay • Estimated 1.8 to 2.4 billion barrels recove
Slide 19: Activity Driving Value Growth
Activity Driving Value Growth 2017 2018 2019 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Low-cost production SM71 Facility construction Additional Development Development & drilling GULF OF Exploration drilling MEXICO ST224 Success Case Facility Construction Low-cost production Explorati
Slide 20: Significant Value Upside in Coming Three Months
Significant Value Upside in Coming Three Months 300 25 250 To be drilled and tested Q4 '17 20 Equivilent Value (AUD cents per share) 200 Value (AUD $ million) 15 150 Increment to external val'n if WTI US$60/bbl $0.05+ 10 flat is used 100 5 50 OEL Market Capitalization 12 October 2017 AUD 20.7 millio
Slide 21: Corporate Snapshot – pre-placement
Corporate Snapshot – pre-placement 50,000,000 $0.08 45,000,000 $0.07 2 40,000,000 $0.06 Volume (shares traded on ASX per day) 35,000,000 OEL Share Price (A$ per share) $0.05 30,000,000 25,000,000 $0.04 20,000,000 $0.03 15,000,000 $0.02 10,000,000 $0.01 5,000,000 - $- 31-Jul-16 31-Jul-17 30-Sep-15 30
Slide 22: Reserves & Prospective Resources
Reserves & Prospective Resources Refer to Otto Energy’s announcement to ASX on 28 September 2017 for full information on the SM 71 independent Reserves Report prepared by Collarini and Associates as at 30 June 2017. Otto farmed in the ST 224 prospect on 1 July 2017. 22 Investor Update Presentation,
Slide 23: 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
Slide 24: Thank You
Thank You Otto Energy Ltd 32 Delhi Street West Perth Western Australia 6005 Telephone: +61 8 6467 8800 Facsimile: +61 8 6467 8801 info@ottoenergy.com 24 Investor Update Presentation, October 2017