Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — Investor Presentation (November 2017)
35 slides from Amplitude Energy's investor presentation, Nov 10, 2017
Slide 1: Investor pack
For personal use only Investor pack November 10 2017
Slide 2: Important Notice – Disclaimer
Important Notice – Disclaimer This investor presentation (“Presentation”) is issued by Cooper Energy Limited ABN 93 096 170 295 (“Cooper Energy” or “COE”). Summary information: This Presentation contains summary information about Cooper Energy and its activities as at the date of this Presentation a
Slide 3: Cooper Energy – an introduction
Cooper Energy – an introduction ASX300, growing its business through a leading position in gas supply to south-east Australia For personal use only Gas production Exploration & development Oil production • Supply to S E Australia • Sole gas project, Gippsland Basin • Cooper Basin, Western Flank • 8
Slide 4: Background
Background Portfolio assembled through patient strategy execution over 5 years For personal use only 2011-12 Strategy & analysis Cooper Basin oil production International exploration ✓ Identifies opportunity in south-east Australia gas ✓ Identifies Gippsland and Otway basins as most competitive supp
Slide 5: Cooper Energy - assets
Cooper Energy - assets Portfolio built around winning position on cost curve For personal use only Key statistics* Proved & Probable Reserves 54.1 MMboe Contingent Resources (2C) 34.9 MMboe Production FY18 guidance 1.4 MMboe Market capitalisation $520 million Net cash/(debt) $243 million Issued shar
Slide 6: Production profile from existing assets and projects
Production profile from existing assets and projects Gas production from current assets has capacity to drive 3 year production uplift over 5 times For personal use only Cooper Energy total production FY17 and forecast MMboe 7 Gippsland 6 4.1 5 4 Otway 3 2 0.4 1.9 1.4 Cooper Basin oil 1 1.1 0.7 0.25
Slide 7: 2P gas and 2C gas in south-east Australia close to markets and infrastructure
Contracted and uncontracted gas 305 PJ 2P1 gas and 158 2C1 gas in south-east Australia close to markets and infrastructure For personal use only Otway Basin • 56 PJ proved & probable gas reserves at Casino Henry & Minerva • 43 PJ undeveloped; planning for development via Henry development well mid C
Slide 8: Eastern Australian gas demand
Eastern Australian gas demand LNG manufacture has brought a 200% increase to gas supply requirements For personal use only Eastern Australian gas consumption Pj 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 2013 2014 2015 2016 2017f Residential and Commercial Industrial Generation LNG Source
Slide 9: Eastern Australian gas market
Eastern Australian gas market LNG demand has drawn gas away from south-east Australia1 providing an opportunity for new suppliers For personal use only Supply Gas flows Demand • Existing producing fields in decline • Utilities and industrial users in south- east Australia1 experiencing difficulty •
Slide 10: Forecast eastern Australia gas supply and demand outlook
Forecast eastern Australia gas supply and demand outlook AEMO* forecast indicates tight market For personal use only 2018 AEMO Expected Case 2019 AEMO Expected Case PJ PJ 1891 1,303 1886 1,336 588 642 550 598 -54 -48 Production Export LNG Supply Expected Notional Production Export LNG Supply Expecte
Slide 11: South-east Australia gas supply costs in 2020
South-east Australia1 gas supply costs in 2020* Cooper Energy projects are cost competitive for south-east Australia For personal use only Delivered Melbourne city gate cost for gas from eastern Australia available for delivery to domestic market in 2020* AUD / GJ Typical peak daily quantity for 14
Slide 12: Profile of contracted and uncontracted gas
Profile of contracted and uncontracted gas Indicative production profile from Casino-Henry, Sole and Manta For personal use only Gas production1 from current assets: contracted & uncontracted PJ pa 36 34 33 26 21 12 15 11 14 13 Uncontracted Contracted 20 20 20 20 20 20 20 14 16 2 13 11 3 6 4 FY18 FY
Slide 13: Offshore Otway Basin
Offshore Otway Basin Gas production and marketing for new contracts to supply from March’18 For personal use only Casino Henry • Supplying gas to EnergyAustralia under current contract which expires March ’18 • Processed at Iona Gas Plant • Pursuing new contract and processing agreements applicable
Slide 14: Offshore Otway Basin prospectivity
Offshore Otway Basin prospectivity Attractive low risk portfolio located adjacent to infrastructure and market For personal use only • 33 prospects identified in VIC/P44, VIC/RL11, VIC/RL12, VIC/L24 and VIC/L30 • 21 prospects within 5 km of existing Casino-Henry-Netherby pipeline • 29 prospects with
Slide 15: Minerva gas plant
Minerva gas plant Approaching depletion of Minerva field to create potential gas infrastructure opportunity For personal use only • 10% interest in Minerva Gas Plant • Capacity 150 TJ/day, with liquids handling capability • Connected to SEA Gas pipeline • Well located for processing of Otway Basin g
Slide 16: Gippsland Basin
Gippsland Basin Cost competitive resource, existing plant and Sole production planned for FY19 For personal use only Sole Gas Project Key Assets: (all 100% equity & Operator) • Gas contracts secured • Sole gas project (VIC/L32) • Sale of Orbost Gas Plant to APA Group announced • Manta gas resource (
Slide 17: Sole gas project
Sole gas project New supply for south-east Australia with blue chip customers & uncontracted gas For personal use only Midstream: APA Group Orbost Gas Plant (APA1 100%) Upstream: Cooper Energy • undertake $250 million plant • 249 PJ 1 2P gas upgrade to process Sole gas • Ready to proceed: March ‘17
Slide 18: Sole gas project: current and completed work
Sole gas project: current and completed work Within plan and budget; at end October 23% complete for overall project (plant and field). For personal use only Onshore Pipeline Wells ✓ Bulk earthworks completed ✓ Welding of shore crossing pipeline ✓ Rig contracted: Ocean Monarch ✓ Site handover from S
Slide 19: Sole gas project schedule
Sole gas project schedule On track for first gas to plant in March 2019 For personal use only H1 FY18 H2 FY18 H1 FY19 H2 FY19 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Phase EXECUTE OPERATE Subsurface Subsurface Team Support for Well Planning Ops
Slide 20: Sole gas marketing
Sole gas marketing Gas contracts in place support financing, with upside retained in uncommitted gas For personal use only Sole gas production: contracted and uncontracted PJ pa 10.0 3.9 3.9 3.9 4.0 3.9 3.9 3.9 8.5 10.9 Uncontractted 20.0 20.0 20.0 20.0 20.0 20.0 20.0 Contracted 15.5 14.0 13.0 3.4 2
Slide 21: Cooper Basin
Cooper Basin Low cost production, drilling success contributes to 40% increase in year end 2P reserves For personal use only Key figures FY17 FY16 Production crude oil Kbbl 0.25 0.32 2P Reserves1 MMbbl oil Developed 1.1 1.0 Undeveloped 0.6 0.3 Total 1.8 1.3 All numbers rounded and as a result some t
Slide 22: Portfolio program and opportunities
Portfolio program and opportunities Existing cash and facilities funds program of commitments and opportunities For personal use only Cooper Basin Exploration & development Onshore Otway Basin Gas exploration Offshore Otway Basin • Casino-5 workover: production and recovery benefits • Henry developm
Slide 23: Event pipeline
Event pipeline Drilling, development and commercial program to December 2018 For personal use only November 17 – May 18 May - December 18 Drilling & • Casino-5 workover • Henry development well contracted for FY19 H21 developing • Otway gas exploration well drilled or in planning1 • Sole-2 abandonme
Slide 24: Appendices
For personal use only Appendices
Slide 25: Bank debt package
Bank debt package Element/term Features For personal use only A$250 million reserve • Senior secured based lending (RBL) • ~ $220 million expected to be available at financial close based on P90 capex, of which ~$200 million would be facility drawn for P50 capex1 • Potential to increase available am
Slide 26: Profile of contracted and uncontracted gas by project
Profile* of contracted and uncontracted gas by project Existing assets & projects offer growth over 5 years before exploration For personal use only PJ 60 Gippsland Gas Project Phase 2 50 Manta 25 25 25 40 18 Gippsland Gas Project Phase 1 10 10 30 4 4 Sole 4 7 4 4 5 2 4 4 20 8 14 20 11 20 20 20 20 2
Slide 27: FY18 guidance
FY18 guidance For personal use only • Production guidance : 1.4 MMboe FY18 capital expenditure outlook • Drilling: $ million approximate – Cooper Basin: 3 wells & completion of 5 wells FY18 Expenditure FY18 Wells # – Gippsland: 2 wells (Sole): Total Exp. Dev. Exp. Dev. • Operating costs per barrel:
Slide 28: Sole gas project: the field
Sole gas project: the field Simple, well-defined structure with good reservoir quality For personal use only Shallow depth • Reservoir at shallow depths below the sea floor - mapped depth to top of gas column is 745 m subsea, maximum gas column height is 71.5 m Well defined, simple structure • Reser
Slide 29: Manta gas field
Manta gas field Contingent resource plus significant deeper exploration potential For personal use only Geological setting - a structural three-way dip, one-way fault closure against a NE-SW trending fault - Manta-1, exploration well drilled in 1984, and Manta-2A, production well drilled in 2006 - G
Slide 30: Otway Basin, onshore
Otway Basin, onshore Drilling results and analysis confirm prospectivity for conventional gas and shale potential For personal use only South Australia • Analysis of Jolly-1 ST1 and Bungaloo-1 well data in PEL 494 and PRL 32 confirmed: – a deep conventional gas play in the Sawpit Sandstone and other
Slide 31: Reserves and Contingent Resources at August 2017
Reserves and Contingent Resources at 25 August 2017 1P (Proved) 2P (Proved + Probable) 3P (Proved + Probable + Possible) Reserves Unit For personal use only Cooper Otway Gippsland Total1 Cooper Otway Gippsland Total1 Cooper Otway Gippsland Total1 Developed Sales Gas PJ 0 5 0 5 0 13 0 13 0 28 0 28 Oi
Slide 32: Senior management
Senior management For personal use only Managing Director General Manager, Development Company Secretary & General Manager, Commercial David Maxwell Duncan Clegg Legal Counsel & Business Development Alison Evans Eddy Glavas David Maxwell has over 30 years’ Duncan Clegg has over 35 years’ experience
Slide 33: Notes on calculation of Reserves and Resources
Notes on calculation of Reserves and Resources Notes on Calculation of Reserves and Contingent Resources Cooper Energy has completed its own estimation of reserves and resources in accordance with the definitions and guidelines in the Society of Petroleum Engineers (SPE) 2007 Petroleum Resources For
Slide 34: Abbreviations
Abbreviations $, A$ Australian dollars unless specified otherwise For personal use only Bbl barrels of oil Boe barrel of oil equivalent EBITDA earnings before interest, tax, depreciation and amortisation FEED Front end engineering and design kbbls thousand barrels m metres MMbbl million barrels of o
Slide 35: Notes
For personal use only Notes 35
Cooper Energy — Investor Presentation (November 2017) on 6ix