Adx Energy Ltd · ASX:ADX
Adx Energy — Corporate Update (September 2019)
33 slides from Adx Energy's corporate update, Sep 6, 2019
Slide 1: RAG Austrian Production Asset Update and Revision of Strategic Focus
ASX Release 6 September 2019 RAG Austrian Production Asset Update and Revision of Strategic Focus Highlights in this Release The RAG acquisition provides the following asset opportunities; 350 BOPD production and 1 million barrels 2P reserves Note 1 generating A$10 million per annum of revenue C
Slide 2: Value creation opportunities from the RAG acquisition
The value creation opportunities provided by RAG acquisition can be summarised as follows; RAG producing assets • Developed reserves and stable production from well maintained, highly optimised production facilities providing a predictable cash flow base • Additional undeveloped reserves from infill
Slide 3: Board outlook, notes on RAG and OMV, contacts
The Board of ADX can now look forward to reporting our progress in relation to the RAG acquisition and the Iecea Mica-1 well which, if successful, have the capacity to position ADX as a unique break through business in very desirable European jurisdictions traditionally dominated by national oil com
Slide 4: Austrian (RAG) Acquisition of Production & Exploration Assets
September 2019 ADX Energy Ltd Austrian (RAG) Acquisition of Production & Exploration Assets Implications for Strategy and Growth “Transformation of ADX to an onshore European producer with reserves and resource upside as well as a drill ready exploration portfolio including access to infrastructure
Slide 5: Disclaimer Statement (1)
RAG Asset Production and Exploration Acquisition - SUMMARY OF STRATEGIC & VALUE POTENTIAL Disclaimer Statement (1) This document has been prepared by ADX Energy Ltd for the purpose of providing information regarding the RAG production asset acquisition to interested analysts/investors and shareholde
Slide 6: Disclaimer Statement (2)
RAG Asset Production and Exploration Acquisition - SUMMARY OF STRATEGIC & VALUE POTENTIAL Disclaimer Statement (2) PRMS Reserves Classifications used in this Report Developed Reserves are quantities expected to be recovered from existing wells and facilities. Developed Producing Reserves are expecte
Slide 7: RAG Asset Acquisition - Transaction Overview
RAG Asset Production and Exploration Acquisition - SUMMARY OF STRATEGIC & VALUE POTENTIAL RAG Asset Acquisition - Transaction Overview Deal Summary Z&G Licence Value ➢Transaction with RAG Exploration & Production GmbH RAG to purchase of a 100% interest of Z&G producing oil fields on 2 July 2019. (35
Slide 8: Strategic Overview – Impact of RAG Assets on ADX Business
RAG Asset Production and Exploration Acquisition - SUMMARY OF STRATEGIC & VALUE POTENTIAL Strategic Overview – Impact of RAG Assets on ADX Business The RAG Assets provide a platform for a sustainable growth business and an enabler for commercialising other assets in the ADX portfolio offering a focu
Slide 9: RAG Assets – Value Development Potential
RAG Asset Production and Exploration Acquisition - SUMMARY OF STRATEGIC & VALUE POTENTIAL RAG Assets – Value Development Potential Deal priced at less than proved developed producing reserves (PDP) also delivers ADX a break through position in the Austrian E & P sector with multiple value developmen
Slide 10: RAG Assets – Value Development Potential Key Assumptions
RAG Asset Production and Exploration Acquisition - SUMMARY OF STRATEGIC & VALUE POTENTIAL RAG Assets – Value Development Potential Key Assumptions Z&G Developed Z&G Infill Drilling Z&G field - Flysch Low risk, step out High Impact Exploration Production reservoir development exploration Recoverable
Slide 11: Zistersdorf & Gaiselberg Oil Fields Summary
RAG Asset Production and Exploration Acquisition - SUMMARY OF STRATEGIC & VALUE POTENTIAL Zistersdorf & Gaiselberg Oil Fields Summary Asset Summary ➢ADX to be Operator and 100% interest holder ➢Mature production in the Vienna Basin with very low decline rate (approx. 2% per annum) ➢Highly optimised,
Slide 12: Flysch Potential – Contingent Resource in Proven Reservoir
RAG Asset Production and Exploration Acquisition - SUMMARY OF STRATEGIC & VALUE POTENTIAL Flysch Potential – Contingent Resource in Proven Reservoir Asset Summary ➢Large potential value addition at low incremental cost per barrel ➢Flysch Reservoir lies beneath producing Zistersdorf & Gaiselberg Fiel
Slide 13: Step-out, Low Risk Exploration
RAG Asset Production and Exploration Acquisition - SUMMARY OF STRATEGIC & VALUE POTENTIAL Step-out, Low Risk Exploration Asset Summary ➢6,247km2 exploration acreage will be available for licencing in early 2020 ➢Several low-risk play types – step-outs from existing RAG production/discoveries ➢Mix of
Slide 14: High Impact Exploration – Up dip from historic discovery
RAG Asset Production and Exploration Acquisition - SUMMARY OF STRATEGIC & VALUE POTENTIAL High Impact Exploration – Up dip from historic discovery Asset Summary ➢Proven hydrocarbon system in thrust sheets of Northern Calcareous Alps (NCA) ➢Located to the south of the step-out exploration acreage ➢Su
Slide 15: RAG Assets – Summary of Growth Potential
RAG Asset Production and Exploration Acquisition - SUMMARY OF STRATEGIC & VALUE POTENTIAL RAG Assets – Summary of Growth Potential Multiple Growth Opportunities 1.Most likely 2P Reserves supported by historic performance underpins value 2.Immediate 2P reserves development opportunities to enhance ca
Slide 16: Production Assets
RAG Asset Production and Exploration Acquisition - SUMMARY OF STRATEGIC & VALUE POTENTIAL Additional Asset Information and Economic Assumptions Production Assets Zistersdorf & Gaiselberg Fields 13
Slide 17: Zistersdorf & Gaiselberg Fields Producing Reserves Assumptions
RAG Asset Production and Exploration Acquisition - SUMMARY OF STRATEGIC & VALUE POTENTIAL Zistersdorf & Gaiselberg Fields Producing Reserves Assumptions Commercial Setting • Brent US$65/bbl, 7.9% quality discount applied • Gas prices US$6.4/mcf • Royalty free field, 25% tax rate on EBIT, • Euro/USD
Slide 18: Undeveloped Reserves Assumptions – Well Side Tracks & Infill Drilling
RAG Asset Production and Exploration Acquisition - SUMMARY OF STRATEGIC & VALUE POTENTIAL Zistersdorf & Gaiselberg Fields Undeveloped Reserves Assumptions – Well Side Tracks & Infill Drilling Commercial Setting (as for producing reserves) • Brent US$65/bbl, 7.9% quality discount applied • Gas prices
Slide 19: Zistersdorf & Gaiselberg Fields Flysch Reservoir Development Assumptions
RAG Asset Production and Exploration Acquisition - SUMMARY OF STRATEGIC & VALUE POTENTIAL Zistersdorf & Gaiselberg Fields Flysch Reservoir Development Assumptions Commercial Setting (same as for reserves) • Brent US$65/bbl, 7.9% quality discount applied • Gas prices US$6.4/mcf • Royalty free field,
Slide 20: Zistersdorf & Gaiselberg Fields Flysch Reservoir Development Opportunity
RAG Asset Production and Exploration Acquisition - SUMMARY OF STRATEGIC & VALUE POTENTIAL Zistersdorf & Gaiselberg Fields Flysch Reservoir Development Opportunity Flysch Typecurve Prediction (Low GOR) Gösting NAPPE – Glaukonitsst 1 Flysch Analogue Well Performance A Zistersdorf-RAG License A • 1.5km
Slide 21: Exploration Data & Acreage Access
RAG Asset Production and Exploration Acquisition - SUMMARY OF STRATEGIC & VALUE POTENTIAL Additional Asset Information and Economic Assumptions Exploration Data & Acreage Access Molasse Basin, Upper Austria 18
Slide 22: RAG Exploration Data & Acreage Potential
RAG Asset Production and Exploration Acquisition - SUMMARY OF STRATEGIC & VALUE POTENTIAL RAG Exploration Data & Acreage Potential Exploration Data Purchase – Upper Austria Exploration Portfolio – Molasse Basin RAG has invested around 90 Million Euro over the last decade to The exploration portfolio
Slide 23: RAG Exploration Data & Acreage Potential
RAG Asset Production and Exploration Acquisition - SUMMARY OF STRATEGIC & VALUE POTENTIAL RAG Exploration Data & Acreage Potential Well Balanced Portfolio with several independent play types and reservoir – seal pairs – all proven Cretaceous & Jurassic & Miocene – Oligocene structural – Imbricate/ I
Slide 24: RAG Exploration Data & Acreage Potential
RAG Asset Production and Exploration Acquisition - SUMMARY OF STRATEGIC & VALUE POTENTIAL RAG Exploration Data & Acreage Potential Exploration Strategy 1. Secure RAG’s valuable 3D / 2D seismic and geological data base based on an annual lease agreement. 2. Secure high graded acreage covered by RAG’s
Slide 25: RAG Exploration Data & Acreage Potential
RAG Asset Production and Exploration Acquisition - SUMMARY OF STRATEGIC & VALUE POTENTIAL RAG Exploration Data & Acreage Potential 3650 km2 3D seismic Linz Salzburg Salzburg • Map shows 3,650 km2 3D area (grey) and prospects & leads as green or red circles • The labels show peer reviewed prospects,
Slide 26: Exploration & Appraisal Portfolio Valuation Assumptions
RAG Asset Production and Exploration Acquisition - SUMMARY OF STRATEGIC & VALUE POTENTIAL RAG Exploration Data & Acreage Potential - Exploration & Appraisal Portfolio Valuation Assumptions Average size NPV(10)/boe DHC/well NPV - success EMV No. POS (mmboe) (US$ MM) (MMUS$) (MMUS$) (MMUS$) Appraisal
Slide 27: Step Out Gas Appraisal Example
RAG Asset Production and Exploration Acquisition - SUMMARY OF STRATEGIC & VALUE POTENTIAL RAG Exploration Data & Acreage Potential - Step Out Gas Appraisal Example Gas production Updip gas channel prospect Gas production Gas production The portfolio contains several shallow, small size (i.e. 3 - 5 b
Slide 28: Low Risk Prospect Example
RAG Asset Production and Exploration Acquisition - SUMMARY OF STRATEGIC & VALUE POTENTIAL RAG Exploration Data & Acreage Potential - Low Risk Prospect Example SE NW Proven Miocene strat play The prospect is only a few km SE of Haidach, the largest gas storage field in Austria. It is well defined by
Slide 29: Medium Risk Prospect Example
RAG Asset Production and Exploration Acquisition - SUMMARY OF STRATEGIC & VALUE POTENTIAL RAG Exploration Data & Acreage Potential - Medium Risk Prospect Example West Base Flysch thrust N thrust This 3 target prospect is on trend with the Aschach oil field and structurally well defined by 3D seismic
Slide 30: High Risk & Reward Prospect Example (OIL)
RAG Asset Production and Exploration Acquisition - SUMMARY OF STRATEGIC & VALUE POTENTIAL RAG Exploration Data & Acreage Potential - High Risk & Reward Prospect Example (OIL) This subthrust Molasse Basin prospect has already a proven oil charge migration path from a downdip well. Key risk is the exa
Slide 31: High Risk & Reward Prospect Example (GAS)
RAG Asset Production and Exploration Acquisition - SUMMARY OF STRATEGIC & VALUE POTENTIAL RAG Exploration Data & Acreage Potential - High Risk & Reward Prospect Example (GAS) WALCHAU: 1100 m TVD 650 bscf (P50) Large well defined surface anticline (“Walchau”) 704 MMUSD NPV(10) OMV Molln-1: Gas tested
Slide 32: Austrian Industry and Country Overview
RAG Asset Production and Exploration Acquisition - SUMMARY OF STRATEGIC & VALUE POTENTIAL Austrian Industry and Country Overview Austria Oil and Gas Industry Overview Austria Country Overview Established Industry, Stable Regulatory Framework & Austria is a German speaking EU member country. Total2 p
Slide 33: Contact Details
RAG Asset Production and Exploration Acquisition - SUMMARY OF STRATEGIC & VALUE POTENTIAL Contact Details ADX Energy Management Executive Chairman: Ian Tchacos emails: ian.tchacos@adxenergy.com.au Chief Executive: Paul Fink email: Paul.Fink@adx-energy.com Finance Manager and Company Secretary: Amand