Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — Investor Presentation (December 2020)
29 slides from Amplitude Energy's investor presentation, Dec 1, 2020
Slide 1: Investor Pack Update December 2020
For personal use only December 2020 Aerial photography of Coorong landscape to be revegetated with carbon offset investment by Cooper Energy Investor Pack Update
Slide 2: Compliance statements and important information
Compliance statements and important information For personal use only This investor presentation (“Presentation”) is issued by Cooper Energy Limited ABN 93 096 170 295 (“Cooper Energy” or “the company”) ASX: COE. Summary information: This Presentation contains summary information about Cooper Energy
Slide 3: Update
Update Sole moving to commence term contract supply, Athena underway, commitment to carbon neutrality For personal use only September quarter Recent events 2020 2019 • Athena Gas Plant Project commenced Production (MMboe) 0.67 0.39 • Orbost Gas Processing Plant reconfiguration • Sole term gas supply
Slide 4: Cooper Energy
Cooper Energy Assets, strategy and upside focussed on gas supply to south-east Australia For personal use only Clear market-based strategy • Prescient long term strategy focused on south-east Australia Cooper Basin Competitive asset base. • Assets selected for cost curve and value accretion potentia
Slide 5: Operating assets and interests
Operating assets and interests Gas supply to south-east Australia from two hubs and some of the most competitive sources of supply For personal use only Cooper Basin Non-operated oil production Otway Gippsland Gas production & exploration Gas production & exploration • Casino Henry gas operations •
Slide 6: Cooper Energy gas contract portfolio
Cooper Energy gas contract portfolio 61% contracted1 under take-or-pay contracts. Uncontracted gas supply mostly from 2024 onwards For personal use only 2P gas reserves2, contracted and uncontracted by term Contracted 1 year or less Gas contract portfolio Uncontracted, available 94 4 Customer Start
Slide 7: Market fundamentals underpinning Cooper Energy gas strategy
Market fundamentals underpinning Cooper Energy gas strategy New gas supply is needed, in large quantities, for south-east Australia For personal use only 1. A market opportunity for new gas supply to south-east Australia from 2023 2. The opportunity is substantial and growing: 70 PJ/year by 2023 and
Slide 8: South-east Australian gas production and demand balance
South-east Australian gas production and demand balance By 2024 local production is expected to shortfall local demand by 113 PJ pa; equal to nearly 5 Sole projects For personal use only Forecast southern1 states’ gas demand and production Surplus or shortfall in southern gas production to gas PJ de
Slide 9: The cost curve: hierarchy of delivered gas cost by basin
‘The cost curve’: hierarchy of delivered gas cost by basin Supply from northern Australia to Melbourne has a higher cost than supply from south-east Australia For personal use only Ranking of forecast 2025 supply cost curve to Melbourne City Gate* By basin, reflecting individual field break-even gas
Slide 10: Sole gas project
Sole gas project Shifting from spot sales to term gas contract initiation and volume uplift For personal use only Offshore Project Sole gas project: key figures • 2 production wells, subsea tie-back Proved & Probable reserves1 238 PJ • 65 km pipeline & umbilicals + HDD shore crossing Annual producti
Slide 11: Pathway to Sole gas contract initiation and supply uplift
Pathway to Sole gas contract initiation and supply uplift Sole sales to increase in coming months following plant reconfiguration and contract commencement For personal use only OGPP reconfiguration Mid – November Reconfiguration of absorbers to enable higher and more Root cause analysis flexible pr
Slide 12: Offshore Otway development: OP3D Project
Offshore Otway development: OP3D Project Proposal to bring >120 PJ gas from Henry-3 and Annie-2 via Athena Gas Plant For personal use only • Currently in Concept Select and preparing for FEED • FID scheduled September quarter 2021 • Planning for drilling FY23 and gas to market FY24, subject to FID &
Slide 13: FY21 Activities program
FY21 Activities program Delivery of Athena Gas Plant Project the major item For personal use only Capital expenditure1 by region $ million Other 80 4 11 60 Cooper 44 7-8 Cooper Basin 40 6-7 • Up to 2 development wells Otway • Stay-in-busines capex 20 33-38 18 0 4-5 Gippsland FY20 FY21f Onshore Otway
Slide 14: Net Zero Carbon
Net Zero Carbon Cooper Energy achieved carbon neutrality for its FY20 emissions and will work to repeat this in future years For personal use only • Emissions publicly reported via Sustainability Report (and displayed in appendices to this presentation) • Seeking to reduce our emissions from day-day
Slide 15: Wrap-up
Wrap-up Near term catalysts. Strong contract book for current markets. Assets and exploration opportunities for For personal use only tightening gas markets expected from FY23 1. Sole term gas contracts are all expected to commence in the coming weeks and bring a step change in production and cash f
Slide 16: Appendices
For personal use only Appendices Otway coastline, Pt Fairy, Victoria
Slide 17: Gippsland Basin
Gippsland Basin Production, development projects and exploration For personal use only Sole Production FY20 FY19 • First gas to plant March ’20 Sales gas PJ 2.1 - • Offshore project completed July 2019 for $335 million vs budget $355 million Total MMboe 0.34 - • Preparing to commence firm gas supply
Slide 18: Offshore Otway Basin FY20
Offshore Otway Basin FY20 Gas production, development and exploration For personal use only • Gas production from Casino, Henry, Production FY20 FY19 Netherby Sales gas PJ 6.2 6.6 • Well located for supply to South Australia Condensate kbbl 3.5 4.7 • Gas plant Athena Gas Plant Project taken to Total
Slide 19: Penola Trough Onshore Otway Basin
Penola Trough Onshore Otway Basin Dombey gas discovery has highlighted opportunity and additional prospects For personal use only • Dombey-1 discovery: - confirms a new Pretty Hill Formation play fairway within the Penola Trough - production test result indicates a small gas pool connected to a larg
Slide 20: Cooper Basin
Cooper Basin For personal use only Cash generating oil production • 25% interest in PEL 92; operated by Beach Energy Production FY20 FY19 75% Crude oil kbbl 0.19 0.24 • PEL 92 accounts for 96% of Cooper Energy Cooper Average oil price A$/bbl 83.75 102.52 Basin production Direct operating cost A$/bbl
Slide 21: Current growth projects
Current growth projects Status of gas development and exploration projects under CARP (Cooper Energy Asset Realisation Process) For personal use only Value Chain Explore Develop Construct Operate Project Phase ASSESS SELECT DEVELOP EXECUTE OPERATE Sole Plant works underway FID taken Athena Gas Plant
Slide 22: Athena Gas Processing Project
Athena Gas Processing Project A low-cost, processing hub for Casino Henry gas and discoveries in the Otway Basin For personal use only The Opportunity Execute Phase underway • Integration of low cost processing hub for • Commenced July 2020 Casino Henry and new discoveries • Targeting first gas into
Slide 23: FY20 Emissions profile
FY20 Emissions profile For personal use only Cooper Energy will offset 100% (10,022 tonnes) of its FY20 greenhouse gas emissions including: • 8,739 tonnes of Scope 1 equity share emissions • 360 tonnes of Scope 2 equity share emissions; and • 923 tonnes of controllable Scope 3 emissions (from busine
Slide 24: Manta Contingent Resource
Manta Contingent Resource Follow on development to Sole For personal use only Manta indicative development concept Manta Contingent Resource1 estimate 1C 2C 3C Condensate MMbbl 2.2 3.4 5.4 Gas PJ 78 121 190 • Development concept for Contingent Resource utilising infrastructure in place at Sole and P
Slide 25: Manta Prospective Resource
Manta Prospective Resource Manta-3 to address significant potential assessed underlying identified Contingent Resource For personal use only Manta unrisked Prospective Resource1 estimate Low (P90) Best (P50) High (P10) Oil MMbbl 1.0 1.5 2.3 Condensate MMbbl 6.8 12.9 25.9 Gas PJ 276 526 1,054 The est
Slide 26: Cooper Energy
Cooper Energy Follow on development to Sole For personal use only Key statistics* Register composition % of issued capital held at 26 October by: Proved & Probable Reserves 49.9 MMboe 67% Domesic institutions Contingent Resources (2C) 34.9 MMboe 9% Foreign institutions Market capitalisation $586 mil
Slide 27: Executive Leadership Team
Executive Leadership Team For personal use only Managing Director Chief Financial Officer David Maxwell Virginia Suttell David Maxwell has over 30 years’ Virginia Suttell is a chartered accountant experience as a senior executive with with more than 25 years' experience, companies such as BG Group,
Slide 28: Notes on calculation of Reserves and Contingent Resources
Notes on calculation of Reserves and Contingent Resources For personal use only Cooper Energy prepares its petroleum reserves and contingent resources in accordance with the definitions and guidelines in the Society of Petroleum Engineers (SPE) 2018 Petroleum Resources Management System (PRMS). The
Slide 29: Abbreviations
Abbreviations For personal use only $, A$ Australian dollars unless specified otherwise Bbl barrels of oil Boe barrel of oil equivalent EBITDA earnings before interest, tax, depreciation and amortisation FEED front end engineering and design kbbl thousand barrels m metres MMbbl million barrels of oi
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