Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — Investor Presentation (October 2019)
28 slides from Amplitude Energy's investor presentation, Oct 16, 2019
Slide 1: Investor pack October 2019
Investor pack October 2019 For personal use only Ocean Monarch on location at Annie-1, Otway Basin, offshore Peterborough August 2019
Slide 2: Cooper Energy finds, develops and commercialises oil and gas
Cooper Energy finds, develops and commercialises oil and gas. For personal use only We do this with care and strive to provide attractive returns for our shareholders and good commercial outcomes for our customers.
Slide 3: Cooper Energy Snapshot
Cooper Energy Snapshot For personal use only Key statistics* Proved & Probable Reserves 52.7 MMboe Contingent Resources (2C) 26.9 MMboe Market capitalisation $932 million Cooper Basin Net debt $54.3 million • Oil production & exploration Issued shares (million) 1,621.6 Register composition Proved &
Slide 4: Strategy origins
Strategy origins Value-creation opportunity identified in 2012 for gas supply to south-east Australia For personal use only Forecast gap between available supply and forecast demand identified as business building opportunity Source: AEMO 4
Slide 5: Gas market outlook
Gas market outlook Gap between local production and supply creating favourable market for south-east Australian gas For personal use only • South-east Australia is reliant on Queensland gas to AEMO forecast of south-east Australian gas production, demand and supply meet shortfall between local produ
Slide 6: Gas strategy execution and outlook
Gas strategy execution and outlook 9-year strategy entering transformational growth in gas sales and cash generation For personal use only 2019-22 Cash flow, growth & reinvestment 2011-12 Analysis & Setting • Sole start-up: 5x growth in gas sales • Understand market • Manta & Annie development decis
Slide 7: Gas business model
Gas business model Optimisation of gas supply to a portfolio of gas contracts from a portfolio of gas assets among the most competitive sources of supply for south-east Australia For personal use only Gas assets Gas contracts Gas contract book by type of buyer Gas contract book by term PJ PJ 25 17 C
Slide 8: 2P gas production profile and contract portfolio
2P gas production profile and contract portfolio Transformational uplift from Sole commencement. Further upside expected from Contingent Resources and discoveries. For personal use only Gas sales profile of 2P reserves to 2030 contracted & uncontracted PJ pa Uncontracted Contracted 4 11 9 8 7 8 8 Pl
Slide 9: Recent events
Recent events Gas discoveries add to development pipeline. Minerva Plant acquisition underway. New exploration permits in Otway and Gippsland Hubs, adjacent to existing producing fields. For personal use only Dombey gas discovery • Onshore conventional gas in Pretty Hill Sole: formation Orbost Gas P
Slide 10: September quarter report
September quarter report Production and revenue up vs pcp For personal use only Production Sales revenue Cash and borrowings MMboe $ million 0.4 25 $ million 30 Sept 19 30 Jun 19 5.5 2.07 PJ 20 7.0 Cash 166.8 164.3 0.3 1.88PJ Oil Drawn debt 221.1 218.2 17.2 Gas 15 14.7 Net debt 54.3 53.9 0.2 10 Debt
Slide 11: Annie gas field discovery
Annie gas field discovery Close to shore, close to pipelines. Expected access to Minerva Gas Plant. For personal use only • Discovery announced 6 September 2019 • 62 metres net gas pay in high quality Waarre C primary reservoir target (same reservoir for adjacent analogue fields Minerva, Casino) • W
Slide 12: Minerva Gas Plant
Minerva Gas Plant Cessation of gas production from Minerva triggers acquisition of strategically located plant For personal use only • Casino Henry JV participants Cooper Energy and Mitsui E&P Australia to * Equity to increase to 50% on completion of acquisition by Casino acquire Minerva Gas Plant H
Slide 13: Sole Gas Project
Sole Gas Project Offshore workstream completed within budget and schedule. Onshore moving to completion. For personal use only Onshore project: APA Group Offshore project: Cooper Energy $3551 million offshore project: • construction completed • $250 million upgrade to Orbost Gas Plant – drilling and
Slide 14: Dombey gas discovery
Dombey gas discovery New field discovery in Pretty Hill Formation. Well still in progress. For personal use only • Dombey-1DW1 has been drilled to 3,384 metres MDRT1 Onshore Otway Basin, Penola Trough • Gas column encountered in Pretty Hill Formation primary target: 44.5 metres gross; net pay thickn
Slide 15: Otway Basin gas hub: 2020-2021 plans
Otway Basin gas hub: 2020-2021 plans Plant acquisition & connection, Annie evaluation, decision and (possibly) production, resumption of low risk gas exploration For personal use only 1 Annie: pathway to 2 Minerva Gas Plant development • Complete acquisition transaction • Evaluation of results Decem
Slide 16: Gippsland Basin gas hub: 2020-2021 plans
Gippsland Basin gas hub: 2020-2021 plans Sole start-up, Manta appraisal and development decision, exploration For personal use only 1 Sole: production 2 Manta: appraisal development & exploration • Production to add 68 TJ/day at plant design rates • Preparing for Manta-3 appraisal well in 2021 • Exp
Slide 17: Cooper Basin: 2020-2021 plans
Cooper Basin: 2020-2021 plans Drilling ramping up to highest level yet in low-cost high margin oil acreage For personal use only • Escalated drilling program with up to 19 wells planned in FY20 • Parsons 3 well program completed in August. Successfully extended oil field boundaries and expected to r
Slide 18: 2020/2021 gas drilling & development plans
2020/2021 gas drilling & development plans* Minerva gas plant connected. Development of offshore Otway gas fields. Exploration & appraisal for Gippsland Basin gas projects. For personal use only Onshore Otway Manta • Production test Dombey • Manta-3 appraisal well • Manta Deep exploration target • P
Slide 19: Wrap up
Wrap up For personal use only 1. Cooper Energy offers exposure to east coast gas with upside expected from increased gas supply and prices that are locked in • FY20 H2 to benefit from new gas contracts that commence 1 January 2020 • Sole to add 24 PJ to existing gas production of 6 PJ pa • Twin-hub
Slide 20: Appendices
For personal use only Appendices
Slide 21: Southern states gas prices: ACCC view
Southern states gas prices: ACCC view For personal use only Gas price and LNG netback trend 2020 expected prices Average monthly commodity prices offered for 2020supply Expected 2020 wholesale gas commodity prices in the East Coast Gas Market against contemporaneous expectations of 2020 LNG netback
Slide 22: Projects pipeline: indicative development program
Projects pipeline: indicative 5 year development program can lift gas production more than 10 times FY19 levels, excluding exploration For personal use only FY20 FY21 FY22 FY23 FY24 Sole:1 production 68TJ/d (~24 PJ per annum) Minerva Gas Plant:2 acquire, integrate and operate Henry:3 development wel
Slide 23: Profile of contracted and uncontracted gas by project
Profile of contracted and uncontracted gas by project Existing reserves and resources offer growth before exploration upside. For personal use only Gas sales profile by project contracted & uncontracted PJ pa Manta (subject to appraisal well and FID) 18 18 18 18 9 17 1 1 1 12 1 2 Manta uncontracted
Slide 24: Manta gas and liquids resource
Manta gas and liquids resource For personal use only Contingent Resource with exploration potential Manta Contingent Resource1 estimate 1C 2C 3C Condensate MMbbl 2.2 3.4 5.4 Gas PJ 78 121 190 Manta unrisked Prospective Resource1 estimate Low (P90) Best (P50) High (P10) Oil MMbbl 1.0 1.5 2.3 Condensa
Slide 25: Reserves and Contingent Resources at June 2019
Reserves and Contingent Resources at 30 June 2019 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 15 0 15 0 24 0 24 0 36 0 36 Oi
Slide 26: Senior management
Senior management For personal use only Managing Director General Manager, Development General Manager, Commercial General Manager, Projects David Maxwell Duncan Clegg & Business Development Michael Jacobsen Eddy Glavas David Maxwell has over 30 years’ Duncan Clegg has over 35 years’ experience in E
Slide 27: 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 based on information provided by the permit Operators Beach Energy Ltd, Senex Ltd, Santos Ltd, and BHP Billiton For person
Slide 28: Abbreviations
Abbreviations $, A$ Australian dollars unless specified otherwise For personal use only APA APA Group Bbl barrels of oil Boe barrel of oil equivalent EBITDA earnings before interest, tax, depreciation and amortisation FEED Front end engineering and design FID Final Investment Decision kbbl thousand