Otto Energy Limited · ASX:OEL
Otto Energy — Morgans Queensland Conference 2018
23 slides from Otto Energy's conference presentation, Oct 9, 2018
Slide 1: Morgans Queensland Conference Investor Presentation
Morgans Queensland Conference Investor Presentation 9 and 10 October 2018 ASX : OEL 1
Slide 2: Disclaimer
Disclaimer This presentation is provided for information purposes only and is not a disclosure document as defined under the Corporations Act 2001 (Cth) This presentation does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase, sale or issue of any secur
Slide 3: Conventional production and exploration
Conventional production and exploration Building a 5,000 boepd production base by end of 2020 – currently at ~1,850 boepd • First Gulf of Mexico production commenced in March 2018 delivering long-life production, cashflow and reserve base • Positioned as a non-operating partner of choice in prolific
Slide 4: Focus on Gulf of Mexico production and exploration
Focus on Gulf of Mexico production and exploration Otto positioned in proven conventional play trends in the Gulf Coast and offshore Currently drilling OTTO ENERGY | ASX : OEL 4
Slide 5: Focused growth strategy in the Gulf of Mexico
Focused growth strategy in the Gulf of Mexico Otto’s core strategic goal is to grow Why Gulf of Mexico? production to 5,000 boepd by the end of 2020 • Proven prolific hydrocarbon province where • Building a portfolio of US conventional technologies such as RTM seismic processing production assets wi
Slide 6: Gulf Coast Package – Drilling Program
Gulf Coast Package – Drilling Program Eight independent prospects committed to be drilled Net Planned Target Working Prospect Rig Revenue Stratigraphic County/ Spud Depth Interest Location Name Type Interest Interval Parish Date (TVD), ft (WI) (NRI) Big Tex Drilling 13,500 Barge 37.50% 29.51% Tex Pl
Slide 7: Gulf Coast Package - Prospects
Gulf Coast Package - Prospects Highly prospective portfolio based on new proprietary 3D seismic Prospective Resources1 MMboe Prospect Net Probability Working Name Revenue of Success 100% Otto Net Revenue Interest Interest Interest P90 P50 Mean P10 P90 P50 Mean P10 Big Tex 37.50% 29.51% 54% 0.5 3.3 6
Slide 8: Gulf Coast Package - Timing
Gulf Coast Package - Timing Potential of the Eight Well Hilcorp Portfolio Comparison of SM 71 reserve base with Gulf Coast Package prospective resources 120 P10 P50 P90 SM 71 100 80 Probability of Success % Currently drilling Mallard Big Tex Mustang 60 Lightning Oil Lake 40 Tarpon Don Julio 2 Beluga
Slide 9: Gulf Coast Package Potential
Gulf Coast Package Potential Risked Portfolio Potential to materially increase Otto’s US business Risked Summary data - 8 Well Portfolio, Gross (8/8ths) Metric P90 P50 P10 Volumes, MMBOE 4.63 19.86 64.59 Peak Production Rate, BOE/d 3,270 9,990 31,300 % Hydrocarbon Liquids per BOE 13% 28% 56% Finding
Slide 10: Tier 1 Operator - Hilcorp
Tier 1 Operator - Hilcorp Partnering with operator with proven capability to take exploration prospects into production • Founded in 1989, Hilcorp is one of the largest privately held oil and natural gas companies in North America. • Hilcorp has nearly 2,000 employees and currently produces approxim
Slide 11: Big Tex – Currently Drilling
Big Tex – Currently Drilling West Delta 27 – Located in a highly productive area Big Tex Well Location West Delta Area Cum Prod.1 Oil 591.3 MMbbls Gas 974.5 Bcf West Bay Area Cum Prod.2 Oil 256.2 MMbbls Gas 909.3 Bcf 1. Data source Lexco OWL ©2018 Geomap Company 2. Data source Sonris/AAPG OTTO ENERG
Slide 12: Pipeline of Opportunities
Pipeline of Opportunities Otto has assembled an exciting pipeline of upcoming activities 2018 2019 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 SM 71 Low-cost production Gulf of Currently drilling Mexico Bivouac Exploration Drilling Peak Success Case Facility Construction Big Lightning Beluga Tarpon Hilc
Slide 13: Gulf Coast Package - Key Terms
Gulf Coast Package - Key Terms Commitment to eight well drilling program with Hilcorp Energy • Otto is participating in a firm eight well program with a right of first offer to a subsequent program, if Hilcorp elect to offer a program to third parties. • Should either the Tarpon or Mustang prospects
Slide 14: South Marsh Island 71 (SM 71)
South Marsh Island 71 (SM 71) Generating ~US$3m in free operating cashflow each month • Production commenced in March 2018, currently producing ~3,600 bopd oil of high-margin LLS oil and 6.0 mmcfpd gas • At WTI of US$76/bbl Otto will realise ~US$78/bbl net (after transport and before Federal royalti
Slide 15: Bivouac Peak
Bivouac Peak 32 MMboe1 conventional gas/condensate prospect currently drilling • Otto participating in drilling the high-impact Bivouac Peak gas/condensate prospect at 40% WI • 32 MMboe1 high quality, amplitude supported conventional gas/condensate prospect in the highly productive Atchafalaya Bay t
Slide 16: Alaska
Alaska Otto to Drill Large Nanushuk Oil Prospect on the Alaska North Slope in Early 2019 • 400 MMbbl2 gross best estimate prospective resource target on the Alaska North Slope. Otto’s 18.75% net revenue interest (before Great Bear 10% back in – refer table) would be 75 MMbbls2. • Winx-1 drilling tar
Slide 17: Why Otto Energy?
Why Otto Energy? An emerging mid-tier oil and gas producer underpinned by cashflow to fund growth • Low cost oil producer generating significant cashflow – SM 71 free cashflow of US$3m per month at US$70/bbl WTI • Significant activity - extensive exploration drilling campaign with at least 10 wells
Slide 18: Additional Information
Additional Information 18
Slide 19: Why invest in Otto?
Why invest in Otto? High margin producer with compelling valuation metrics OTTO ENERGY | ASX : OEL 19
Slide 20: Corporate Snapshot
Corporate Snapshot Capital Structure Funding Position Shareholders5 Fully paid ordinary shares 1.871b Cash (30 September 2018) US$14.2m Molton Holdings 16.4% Performance Rights 18.8m Convertible Note Liability US$9.4m Perennial Value 6.8% (repayable 30 June 2019)4 Management Convertible Notes (US$1
Slide 21: Board and Management
Board and Management John Jetter – Non-Executive Ian Macliver – Non-Executive Ian Boserio – Non-Executive Director. Chairman. Director. BComm, FCA, SF Fin, BSc (Hons) LLB, BEc INSEAD FAICD Executive Technical Director of Former MD/CEO J.P. Morgan Managing Director Grange Pathfinder Energy Pty Ltd. F
Slide 22: Houston Office Technical Team
Houston Office Technical Team 110+ years of Gulf Coast and Gulf of Mexico experience Will Armstrong – Vice President, Exploration and New Ventures Prior to joining Otto Will worked with Tri-C Resources, a privately owned Houston based oil and gas company, developing Gulf Coast conventional prospects
Slide 23: Address Contact Info Telephone
Address 32 Delhi Street West Perth WA 6005 Australia 1200 Smith Street Suite 1080 Houston TX 77002 United States of America Contact Info Email: info@ottoenergy.com Web: www.ottoenergy.com Telephone + 61 8 6467 8800 +1 713 893 8894 24