Australis Oil & Gas Ltd. · ASX:ATS
Australis Oil & Gas — Investor Presentation (March 2018)
32 slides from Australis Oil & Gas's investor presentation, Mar 13, 2018
Slide 1: Proven reserves provides the platform for significant value generation
For personal use only Proven reserves provides the platform for significant value generation Investor Presentation March 2018
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer For personal use only This presentation has been prepared by Australis Oil & Gas Limited ACN 609 262 937 (ASX: ATS) (Australis). Summary of information: This presentation contains general and background information about Australis’ activities current as at the date of
Slide 3: Australis Oil & Gas Overview
For personal use only Australis Oil & Gas Overview Tuscaloosa Marine Shale (TMS) Portugal Appendix Tuscaloosa Marine Shale Tier 1 acreage in an emerging oil shale province Investor Presentation 3
Slide 4: Investment Highlights
Investment Highlights Positioned for significant value accretion For personal use only Largest acreage holder in the ‘core’ of the Tuscaloosa Marine Shale (TMS) Operator of Quality TMS oil production per well similar to the best areas within US shale such as Eagle Ford Assets Robust TMS produc
Slide 5: Company Snapshot
Company Snapshot Australis has existing reserves, production and revenue, no debt and a strong institutionally For personal use only dominated register with significant capital contribution from Board & Management Founded in 2014, listed on the ASX in July 2016 Capital Structure Executing on str
Slide 6: TMS Reserves and Resources
TMS Reserves and Resources 1P net oil reserves of 29 million barrels and 2P net oil reserves of 47 million barrels For personal use only Evolution of TMS Reserves and Resources (NRI Oil) Australis business strategy to accumulate ‘oil in the ground’ through the lower 160 oil prices is clearly shown
Slide 7: Tuscaloosa Marine Shale
For personal use only Australis Oil & Gas Overview Tuscaloosa Marine Shale (TMS) Portugal Appendix Tuscaloosa Marine Shale Tier 1 acreage in an emerging oil shale province Investor Presentation 7
Slide 8: What is the TMS?
What is the TMS? The TMS is an emerging shale play. The “Core” is comparable with other prolific shale plays in the For personal use only US TMS Location Onshore basin - Louisiana and Mississippi On trend with Eagle Ford Basin in Texas, similar depositional history and age 80 horizontal wells
Slide 9: Australis TMS Well Performance
Australis TMS Well Performance The last 15 wells drilled within Australis’ core acreage demonstrate significantly higher average For personal use only productivity than the average of other TMS wells drilled in Mississippi Individual 24 Month Cumulative Production Per Well – TMS Mississippi4,5 Austr
Slide 10: TMS Oil Productivity Improvement Over Time
TMS Oil Productivity Improvement Over Time Following initial delineation of the TMS Core, the early refinement of Drilling and Completion For personal use only design resulted in significantly improved well performance Ryder Scott 1P EUR for Australis TMS wells by Spud Date* Industry improvements si
Slide 11: Capital Cost Profile of Early TMS Wells
Capital Cost Profile of Early TMS Wells Well costs have trended downwards over time in line with other plays For personal use only Australis conservative well cost estimate – US$10.8MM for a single well (US$1,690/ft)8 Other play participants quoted US$8.7MM9 No TMS wells have been drilled in t
Slide 12: Australis TMS Land Position
Australis TMS Land Position Australis holds a dominant land position within the core of the TMS, with significant undeveloped oil For personal use only Australis TMS as at 31 December 2017 Australis TMS Position Reserves1 Net Oil 4 million bbls PDP US$80 million (NPV10) 1P Reserves 29 million bbls 2
Slide 13: Initial Drilling Program
Initial Drilling Program Australis is planning an initial program of 4 to 10 wells to commence in the second half of this year For personal use only Initial sites have been identified for a drilling Single Well Drilling & Completion Summary program of 4 to 10 wells within the TMS core Australis
Slide 14: Financing the Initial Drilling Program
Financing the Initial Drilling Program Several potential financing alternatives are under assessment For personal use only A disciplined approach to capital management is being applied to the evaluation and negotiation of the potential financing alternatives available. Australis aims to appropriat
Slide 15: Single Well Economics – TMS Core Base Type Curve
Single Well Economics – TMS Core Base Type Curve* The TMS Core is highly profitable at current oil prices and current single well cost estimates without For personal use only assumed productivity improvements, batch drilling or economies that come with development scale Single Well Economics and Sen
Slide 16: Single Well Economics – TMS Productivity Upside
Single Well Economics – TMS Productivity Upside10 Significant productivity improvements seen across the industry since the last TMS wells were For personal use only spudded, averaging 22% uplift across 10 resource plays11 Single Well Economics and Sensitivities – Assumed 15% Production Improvement 1
Slide 17: Pathway to Value
Pathway to Value TMS Core acreage has significant upside with multiple catalysts to create and increase value For personal use only Value Catalysts Growth Strategy Likely to continue to recover as the Oil Price global supply market rebalances Continued refinement in design GOAL based on practice
Slide 18: Portugal
For personal use only Australis Oil & Gas Overview Tuscaloosa Marine Shale (TMS) Portugal Appendix Tuscaloosa Marine Shale Tier 1 acreage in an emerging oil shale province Investor Presentation 18
Slide 19: Portugal Concessions Overview
Portugal Concessions Overview Australis owns two concessions onshore Portugal with significant development potential For personal use only Asset Highlights Asset Location Significant Gas Large in-place discovered and tested gas Resource accumulation with 2C resources of 458 Bcf Limited explorati
Slide 20: Portugal Prospectivity & Volumetrics
Portugal Prospectivity & Volumetrics Appraisal of a gas discovery with multiple nearby prospects and leads with a significant resource base For personal use only Proposed Work Program Batalha Gas Discovery Batalha Concession Prospects Drill and test the gas discovery with a vertical well Drill a
Slide 21: Appendix
For personal use only Australis Oil & Gas Overview Tuscaloosa Marine Shale (TMS) Portugal Appendix Tuscaloosa Marine Shale Tier 1 acreage in an emerging oil shale province Investor Presentation 21
Slide 22: Directors & Management
Directors & Management Demonstrated track record in oil & gas For personal use only Jon Stewart – Non-Executive Chairman Graham Dowland – CFO & Finance Director >25 years in the upstream oil and gas industry >25 years experience in the oil and gas industry Founder and former Chairman and CEO o
Slide 23: TMS Core Type Curve
TMS Core Type Curve Summary of monthly oil production data for the most recent 15 Encana operated modern offset For personal use only Mississippi wells Lewis 7- Pintard Lyons 35H Pintard Longleaf Longleaf Mathis Mathis Lawson Ash 13H Sabine Sabine McIntosh Reese Well Name Ash 13H 2 Average Cumulativ
Slide 24: Single Well TMS Core Type Curve
Single Well TMS Core Type Curve ATS type curve history matched to production from the most recent 15 Mississippi ECA wells For personal use only TMS Core TC – Assumptions TMS Core Type Curve v TMS Production 250,000 Oil EUR – 610 Mbbls Gas EUR – 159 MMscf 200,000 NGL EUR – 20 Mbbls Oil Product
Slide 25: TMS Base Case Economics – Key Assumptions
TMS Base Case Economics – Key Assumptions The production and opex assumptions are based on history and the capex costs are current third For personal use only party service providers’ estimates Base Case Assumptions* Production Forecast EUR (30 Years) 30,000 700,000 Gas 0.16 Bcf 25,000 600,000 Oil/C
Slide 26: TMS Well Drilling Times
TMS Well Drilling Times TMS drilling trending downwards over time as operational challenges resolved For personal use only Australis operated well drilling performance (rig mobilization to rig release) 160 First 10 wells average 72 days 140 120 Days from Spud to RR 100 Last 10 wells average 40 days
Slide 27: TMS Oil Productivity vs Other Major Plays
TMS Oil Productivity vs Other Major Plays TMS core productivity is very strong when compared to the more established Eagle Ford and For personal use only Midland plays Average barrels per day oil production over the first 180 days(6,7) 700 Australis TMS Core Type Curve in Mississippi5 based on the m
Slide 28: Reserves and Resources Update
Reserves and Resources Update Maiden undeveloped reserve assessment For personal use only As an ASX participant Australis reports to the Net Oil Reserve Categories SPE PRMS. This requires that undeveloped (MMbbls) reserves are assessed within a 5 year development timeframe. Proved Developed Produc
Slide 29: Financial & Operational Summary
Financial & Operational Summary Positive Field Cashflow financing overhead and land capex program in 2018 For personal use only Key financial metrics Sales (WI – before royalties) exit rate December 2017 1,700 bbls/d Sales (net – after royalties) exit rate December 2017 1,350 bbls/d Sales Revenue (2
Slide 30: Financing the Initial Drilling Program
Financing the Initial Drilling Program Possible terms relating to the debt financing alternatives For personal use only Based on ongoing discussions, Australis expects that the terms of potential debt financing alternatives under assessment, including any Norwegian bond, RBL and Term loan, might i
Slide 31: Footnotes
Footnotes For personal use only 1. All estimates and risk factors taken from Ryder Scott, report prepared as at 31 December 2017 and generated for the Australis concessions to SPE standards. See ASX announcement released on 30 January 2018 titled “Reserves and Resources Update Year End 2017”. The an
Slide 32: Glossary
Glossary Unit Measure Unit Measure For personal use only B Prefix - Billions bbl Barrel of oil MM or mm Prefix - Millions boe Barrel of oil equivalent (1bbl = 6 mscf) M or m Prefix - Thousands scf Standard cubic foot of gas /d Suffix - per day Bcf Billion standard cubic foot of gas Abbreviation Desc
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