Cue Energy Resources Limited · ASX:CUE
Cue Energy Resources — Shareholder Meeting (November 2014)
22 slides from Cue Energy Resources's shareholder meeting presentation, Nov 27, 2014
Slide 1: Chairman's Address and Company Presentation AGM 2014
ABN 45 066 383 971 For personal use only 27 November 2014 PAGES (including this page):22 CUE ENERGY OVERVIEW Cue is an Australian based oil & ASX Market Announcements gas company with activities in ASX Limited Australia, New Zealand, Indonesia Exchange Centre and PNG. Level 4, 20 Bridge Street THE C
Slide 2: Chairman's Address
Cue Annual General Meeting of Shareholders 10.00am, 27 November 2014 The Langham Hotel, Southbank Victoria Australia For personal use only Chairman’s Address Good morning ladies and gentlemen. Welcome to the 33rd Annual General Meeting of Cue Energy Resources Limited. I am Geoffrey King and it is my
Slide 3: Chairman's Address: Board and Zeta Resources
Stuart Brown was appointed as a Director of the Company with effect from 24 July 2014. Stuart, a geologist by background, has held senior positions with Woodside Energy from 2002 to 2012, Shell International Exploration & Production from 1998 to 2002 and Shell UK E&P from 1993 to 1998. Prior to that
Slide 4: Chairman's Address: Company Performance
Operating costs were also significantly increased by the Maari production downtime with unbudgeted costs of $3 million for the repairs to the Maari FPSO mooring system and turret. In addition drilling costs for the unsuccessful Naga Utara-2 onshore Indonesia well ran considerably over budget due to
Slide 5: Chairman's Address: Asset Sale and Outlook
A conditional agreement has been recently signed for the sale of the Papua New Guinea assets. The sale comprised the SE Gobe oil & gas field and 2 retention leases. Once completed, the proceeds from sale will be used in part as funding of our planned growth. The sale ensures the Company avoids sizab
Slide 6: Chairman's Address: Capital Allocation
The Company has recently been very active, diligently screening a number of opportunities, and this will continue in order to identify and capture the right value accretive opportunities consistent with the Company strategy. The Company’s business plan ensures only opportunities where value can be c
Slide 7: Cue Energy Resources Limited Annual General Meeting
For personal use only CUE ENERGY RESOURCES LIMITED ASX:CUE www.cuenrg.com.au Annual General Meeting 27th November 2014
Slide 8: Disclaimer & Important Notice
For personal use only DISCLAIMER & IMPORTANT NOTICE Various statements in this document constitute statements relating to intentions, future acts and events. Such statements are generally classified as forward looking statements and involve known risks, expectations, uncertainties and other importan
Slide 9: Regionally Diversified Assets & Acreage
Regionally Diversified Assets & Acreage INDONESIA Central Sumatra Basin INDONESIA For personal use only Mahato PSC (12.5%)* Kutei Basin Operator: Texcal Mahakam Hilir PSC (100%)* Operator: Cue INDONESIA Offshore East Java NEW ZEALAND Taranaki Basin Sampang PSC (15%) Operator: Santos PMP 38160 (5%) M
Slide 10: Summary FY14
For personal use only Summary FY14 • Challenging year with Maari production disruption • Total production down 30% to 0.65 million boe • Drilled two wells in existing exploration acreage • Net loss a/tax $2.2M • $39M cash at end Sept 14 • No debt FY15 and beyond • Preserve and enhance production in
Slide 11: Financial Results
For personal use only Financial Results AUD FY14 FY13 Variance Sales Production (mmboe) 0.65 0.93 (30%) Realised average oil price per bbl 120.46 111.04 8% Realised average gas price per mcf 5.42 4.52 20% EBIT ($ million) 0.08 8.4 (99%) Profit/(Loss) a/tax ($ million) (2.2) 6.4 (134%) Earnings per s
Slide 12: Maari Production Disruption & Sampang Natural Decline Impact on EBIT
Maari Production Disruption & Sampang Natural Decline had Material Impact on EBIT For personal use only EBIT Variance – FY13 to FY14 (AUD Millions) 10.0 ($19M) impact from 5.0 production disruption 8.4 (10.6) (NZ) and declining fields (Oyong + PNG) 0.1 0.0 EBIT FY13 EBIT FY14 -5.0 (7.7) 14.1 (0.7) -
Slide 13: Unchanged Clear Growth Strategy
For personal use only Unchanged Clear Growth Strategy Current Position Future position • 5mmboe reserve adds target by • Maari growth projects will drive end 2018 (>140% reserve short term reserves addition replacement) - unchanged Growth • Continue considerable drilling Strategy • 3-5 exploration w
Slide 14: Current Investments to Maximise Existing Near-term Production
Current investments to Maximise Existing Near-term Production For personal use only Net Daily Production Forecast Net Annual Production Forecast CY2015 (CY2014 - CY2016) boe/d Maari development drilling Million boe 3,000 1 program will add approx. 500 bopd production from 2015 0.9 2,500 0.8 0.7 2,00
Slide 15: Preserve & Enhance Existing Production
Preserve & Enhance Existing Production • For personal use only New Zealand - Maari Growth Project (Cue 5%) • Ensco 107 currently drilling at Maari • Expected to add 12mmbbl (gross) incremental reserves and double daily production in 2015 • 200,000 bbl p.a. net to Cue from 2015 + beyond • Indonesia -
Slide 16: Acquire New Production
For personal use only Acquire New Production • Growth strategy includes addressing post 2016 production decline by acquisition of existing production or projects at the stage of near term development, to supplement exploration success • Cue’s cash balance and zero debt levels provide financial firep
Slide 17: Deepen Exploration Portfolio
Deepen Exploration Portfolio • Cue is maintaining a focus on exploration to For personal use only maintain and grow medium to long term production • Captured 100% Mahakam Hilir, onshore Indonesia in October 2014 – exploration well in 2015 – Favourable terms to increase to 100% – Inexpensive shallow
Slide 18: Mahakam Hilir PSC, Kutei Basin Indonesia
Mahakam Hilir PSC, Kutei Basin Indonesia Cue – 100% & Operator (pending statutory approval) For personal use only • Recent increase in participation on favourable 222km2 terms • 2015 work program includes drilling Naga Selatan-2 previously overlooked up-dip prospect targeting zones of interest fro
Slide 19: Mahato PSC Central Sumatra, Indonesia
Mahato PSC Central Sumatra, Indonesia Cue – 12.5% (pending statutory approval) For personal use only Operator - Texcal • Recent farm-in from Bukit Energy MAHATO PSC • Significant area, 5,600 km2 in prolific Sumatra basin adjacent to large producing fields • 2015 work program includes drilling 2 well
Slide 20: Drilling Activity
Drilling Activity • Maari development drilling program underway (5+ For personal use only wells) • Four exploration wells planned in 2015 in Indonesia and NZ including testing Petapahan extension into Mahato • Potential follow-up appraisal activity CY 2014 CY 2015 Q2 Q3 Q4 Q1 Q2 Q3 Q4 New Zealand Wh
Slide 21: Delivering on the Strategy
Delivering on the Strategy Clearly defined growth strategy in core For personal use only areas of Asia, Australia and NZ • Preserving and enhancing near-term production from existing assets • 23% increase in production in FY 2015 to 0.8 million boe • Actively reviewing opportunities to acquire addit
Slide 22: For personal use only
For personal use only Level 19, 357 Collins Street, Melbourne VICTORIA – AUSTRALIA 3000 P. (61) 3 8610 4000 F. (61) 3 9614 2142 E. mail@cuenrg.com.au W. www.cuenrg.com.au
Cue Energy Resources — Shareholder Meeting (November 2014) on 6ix