Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — Euroz Securities Rottnest Island Conference 2017
31 slides from Amplitude Energy's conference presentation, Mar 15, 2017
Slide 1: Presentation to Euroz Securities Rottnest Island Conference 2017
s Presentation to Euroz Securities x COOPER Rottnest Island Conference 2017 SS ENERGY 15 March 2017
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: Cooper Energy develops and supplies gas to south-east Australia
For personal use only Cooper Energy develops and supplies gas to south-east Australia and produces oil from the western flank of the Cooper Basin. The company’s portfolio features existing gas production, 227 PJ of uncontracted gas and two new gas projects to supply south-east Australia from 2019 on
Slide 4: Investment highlights
For personal use only Cash generating • Otway Basin gas operations • Cooper Basin oil • 188 PJ gas contracted to south-east Australia customers plus Leading exposure to • 227 PJ uncontracted gas, easily accessible to market favourable east coast • gas projects targeting supply from 2019 onwards gas
Slide 5: Production growth profile
For personal use only Production1 MMboe 12 • Sustained growth profile over 6 years • Gas accounts for overwhelming majority of production 10 • New assets and production profile generates: Manta – FY17 production >2x FY16 production 8 Gas Project – FY19 production >5x FY16 production – FY22 productio
Slide 6: Business segments: gas, oil and gas projects
For personal use only Gas production & sales Oil exploration & production Gas projects & contracting Otway Basin: Casino Henry & Minerva Cooper Basin Western Flank Gippsland and Otway Basins Sales of ~7- 8 PJ pa to EnergyAustralia 240,000 – 280,000 1 bbl pa Sole, Manta projects, Otway uncontracted g
Slide 7: Production, 2P reserves and contingent resources
For personal use only FY17 production1 Contingent resources (2C)1,2 2P reserves1,2 MMboe expected MMboe MMboe 74.4 11.6 66.8 1MMboe 41.6 Gas Gas Gas 10.4 36.7 Oil Oil Oil 0.3 1.3 1.1 4.9 7.6 Jun-16 Jan-17 Jun-16 Jan-17 Jun-16 Jan-17 • Addition of Otway gas • Addition of 60 PJ of Otway • Australian c
Slide 8: Gas production, contracts and uncontracted gas
For personal use only Production Gas contracts • ~ 7 PJ pa from Casino • 188 PJ contracted from 2017 on Henry & Minerva1 • EnergyAustralia (Otway & Sole) • Sold to EnergyAustralia • AGL Energy (Sole) • Uncontracted gas to market • Alinta Energy (Sole) for supply from March 18 • O-I Australia (Sole)
Slide 9: South-east Australian gas demand and production
For personal use only Forecast 1 south-east Australian gas demand and production Cooper Energy gas production profile PJ pa PJ pa 600 100 SE Australia demand¹ 90 500 80 70 400 Manta (100%) 60 300 50 Sole (100%) 40 200 Casino 30 20 100 10 0 0 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 201
Slide 10: Gas production from current assets: contracted and uncontracted
For personal use only Gas production1 from current assets: contracted & uncontracted PJ pa 36 36 37 28 17 11 19 13 15 10 Uncontracted 13 20 20 20 20 20 20 20 15 16 2 10 Contracted 3 5 1 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 1 Assumes: * 227 PJ comprises 52 PJ 2P Casino Hen
Slide 11: Gippsland Basin projects and Orbost Gas Plant
For personal use only Orbost Gas Plant • Existing gas plant • Connected to Eastern Gas Pipeline Longtom • Plant owned & operated by APA Group (Seven Group 100%) (proposed in HoA announced 27/2/17 Patricia Baleen (COE 100%) 65 km Phase 2: Manta 58 km Phase 1: Sole • 2C Resource1: 106 PJ gas, 3 .2 MMb
Slide 12: Sole development plan finalised
For personal use only • Development plan finalised with 2 horizontal wells – encouraged by lower drilling costs * * • 2 well development plan enhances project – lower technical risk, improved redundancy – 2C Contingent Resources1 upgrade to 249 PJ – supports financing 58 km – field production capabi
Slide 13: Sole project status
For personal use only Sole Development plan finalised March 2017 Project Project team transition Project ready to proceed and finalise finance Production licence awarded Subsea pipeline and umbilical contract with Subsea 7 Rig contract negotiation, construction tenders in Pre-sanction ga
Slide 14: Management team and capability
For personal use only 1 Management team strengthened with appointment of Duncan Clegg, General Manager, Development Brings proven capability in offshore development and oil and gas project leadership; 35 years of industry experience including senior management at Shell & Woodside. 2 Recruited execut
Slide 15: Otway Basin assets
For personal use only Key Assets • Casino Henry gas project (50%) • Minerva gas field and plant (10% interest)1 • VIC/P44 exploration permit Production (COE share, effective from 1 January 2017) • Casino Henry (VIC/RL11 & 12): 7 PJ pa, supplied to EnergyAustralia under contract expiring March 2018 •
Slide 16: Cooper Basin oil
For personal use only • First half production of 0.13 MMbbl vs 0.17 in H1 FY16 • Production impacted by suspension of drilling in low oil price FY16 • Operating costs reduced from A$29.92/bbl to A$29.28/bbl • Drilling resumed in FY17 with 4 wells drilled; 2 successful, 2 P & A • No further drilling
Slide 17: Milestones ahead: Sole FID and beyond
For personal use only 1 Sole FID • Financial commitment to project • Triggers 43 MMboe uplift in gas reserves Uplift in 2P reserves* MMboe • Translation of HoA with APA to formal agreement. • Expected shortly after project sanction 2 Uncontracted Otway gas • Contracting gas to supply from March 2018
Slide 18: Execution of gas strategy
For personal use only 1 Execution of our gas strategy has delivered: Cooper Energy has become a supplier and developer of gas for south east Australia at a time of great market need. 2 FY17 growth is the first step of larger and sustainable growth: Reserves and production upgrades in the current yea
Slide 19: Appendices
For personal use only Appendices
Slide 20: Cooper Energy company profile
For personal use only Cooper Energy is an independent Australian exploration and Key figures production company Shares on issue1 660.1 mill • Listed in 2002, history of profitable operations and successful exploration and development Shareholders1 5,923 • Strong balance sheet, zero debt Market capit
Slide 21: Gas strategy history
For personal use only 2012: Identifies market opportunity in gas supply to south- Conducts detailed analysis of market and supply options; identifies Gippsland east Australian following LNG commencement and Otway basins as ‘first in line’ for new contracts 2013: Acquires Somerton Energy and interest
Slide 22: APA Group Orbost Gas Plant transaction
For personal use only Transaction elements: Cooper Energy to sell Orbost Gas Plant to APA Group. 1 Heads of Agreement (non-binding) provides for APA to take ownership, subject to Sole FID APA to be responsible for funding and performance of ~$250 million plant upgrade and processing of gas from Sole
Slide 23: Sole gas contracts
For personal use only • Achieved objective of contracting 20 PJ pa1 (55 TJ/day) of Sole output with Sole gas production: contracted and uncontracted blue chip customers PJ pa – based on current onshore plant capacity2 67.9 TJ/day • Secured sales for ~ 12 PJ pa since June 2016 – EnergyAustralia: 5 PJ
Slide 24: Sole gas field
Sole gas field North west -1000m [EB War (sean) “720m — [EERE Coarse sandstone (2000-6000mD) High GR sandstone (1000-2000mD) [BB Agilacaceous sandstone (100-400mD) ME Gas zone -740m DST 1: 771m to 785mRT 20.6 MMsct/d Dry gas (94% CH, 0.59 SG, <1 bb/MMscf CGR) -760m Lakes Entrance Formation -780m -80
Slide 25: Manta gas field
For personal use only • COE business case identified economic opportunity for Manta development A A’ • Manta gas attracting enquiries from gas buyers • Untested Golden Beach reservoirs identified within the same structure below proven gas in the Manta field • Gas resource of 106 PJ 2C Contingent and
Slide 26: Reserves table
Proved Proved & Probable Proved, Probable & Possible Reserves* (1P) (2P) (3P) For personal use only Cooper1 Otway2 Total Cooper1 Otway2 Total Cooper1 Otway2 Total Developed Sales Gas PJ 0.0 4.8 4.8 0.0 15.2 15.2 0.0 29.3 29.3 Oil + Condensate MMbbl 0.5 0.0 0.5 0.9 0.0 0.9 1.6 0.0 1.6 Total developed
Slide 27: Gas production profile by project
For personal use only Gas production profile by project contracted & uncontracted PJ pa Gippsland Gas Project Phase 2 Manta 25 25 25 18 10 Gippsland Gas Project Phase 1 10 5 5 7 5 5 Sole 5 5 5 5 9 1 20 20 20 20 Manta uncontracted 20 9 15 20 Otway 2P reserves: 6 Sole uncontracted 20 Casino Henry Sole
Slide 28: Gippsland Basin projects
For personal use only Sole Gas Project (VIC L/32, COE:100%, Operator ) • 249 PJ 2C Contingent Resource1 • 20 PJ pa contracted: gas contracts with O-I Australia, AGL Energy, Alinta Energy EnergyAustralia • Sanction expected by March 2017 for Sole gas into plant by March 2019 Manta (VIC RL/13,14,15; C
Slide 29: Management team
Managing Director Executive Director General Manager, Development General Manager, Operations General Manager, Exploration For personal use only David Maxwell Hector Gordon Duncan Clegg Iain MacDougall & Subsurface David Maxwell has over 30 years’ Hector Gordon is a highly Duncan Clegg has over 35 y
Slide 30: Reserves and resources calculation
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 31: Glossary
$, A$ Australian dollars unless specified otherwise For personal use only Bbl 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 kbbls thousand barrels LTIFR Lost Time Injury
Cooper Energy — Euroz Securities Rottnest Island Conference 2017 on 6ix