Australis Oil & Gas Ltd. · ASX:ATS
Australis Oil & Gas — Investor Presentation (February 2019)
36 slides from Australis Oil & Gas's investor presentation, Feb 11, 2019
Slide 1: Investor Presentation
For personal use only Early results from initial drilling program validate value of large undeveloped oil position Investor Presentation 11 February 2019 ASX: ATS
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: Executive Summary / TMS / Portugal / Appendix
For personal use only Executive Summary Tuscaloosa Marine Shale (TMS) Portugal Appendix
Slide 4: Investment Highlights
Investment Highlights Large undeveloped TMS oil position with proven economics and multiple near term upside catalysts For personal use only Asset is focused in production delineated core of the TMS Operator of Quality First well in Australis drilling program under budget and materially outperfo
Slide 5: Corporate Overview
Corporate Overview Existing reserves, production and revenue with an institutionally supported register For personal use only Founded in 2014 with significant capital contribution by Capital Structure (Feb 2019)(A) the founders & key management of Aurora Oil & Gas, listed on the ASX in July 2016 (
Slide 6: Australis TMS Land Position
Australis TMS Land Position During 2018 Australis has increased and extended the life of its ‘core’ land position For personal use only Australis TMS Position Australis TMS Map Land Position Jan 19 Jan 18 HBP (acres) 31,400 27,600 Total Core Area (net acres only 110,000 95,000 within core area) Futu
Slide 7: Initial Drilling Program – Objectives & Results
Initial Drilling Program – Objectives & Results For personal use only Initial well program seeks to demonstrate value proposition by repeating historical well performance at updated cost base. TMS Type Curve Wells Key objectives of TMS Drilling Program: Repeat historical well performance at upda
Slide 8: Initial Drilling Program Results – Stewart 30H-1
Initial Drilling Program Results – Stewart 30H-1 For personal use only Australis’ first new well materially outperforming the TMS Type Curve Cumulative Oil Production: Stewart 30H-1 v TMS Type Curve Commenced oil production on 30 December 2018 40,000 Stewart 30H-1: Stewart 30H-1 IP30 average is
Slide 9: Initial Drilling Program – Status – Early February
Initial Drilling Program – Status – Early February For personal use only All drilling and completion operations have been executed without any reportable safety or environmental incidents Drilling Operations Summary Running Casing on Stewart 30H-1 Well Status Lateral length drilled of 6,900ft, com
Slide 10: Initial Drilling Program – Costs and Schedule
Initial Drilling Program – Costs and Schedule Extensive planning delivering on-time and on-budget program For personal use only The drilling and completion timetable is ahead of schedule and costs are currently under budget - Well D, C & T cost for Stewart 30H-1 is US$10.3 million - Bergold 29H-2
Slide 11: Pathway to Value
Pathway to Value TMS Core acreage has multiple catalysts to realise and increase value For personal use only Value Catalysts Single Well Economics - Pre-tax NPV10 (US$ in millions) Type curves conservatively based on $3.4 $14.1 Well historical average well productivity Performance Technology imp
Slide 12: Significant Underlying Value
Significant Underlying Value Australis continues to add oil inventory on a highly accretive basis For personal use only Australis’ business strategy to accumulate Evolution of Oil Reserves and Resources(1) ‘oil in the ground’ reflected in our substantial reserves and resources 197 MMbbl 200 growth
Slide 13: Tuscaloosa Marine Shale (TMS)
For personal use only Executive Summary Tuscaloosa Marine Shale (TMS) Portugal Appendix
Slide 14: What is the TMS?
What is the TMS? The TMS is an emerging shale play: its ‘core’ is comparable with other prolific unconventional plays For personal use only in the US TMS Location Onshore basin - Louisiana and Mississippi. On trend with Eagle Ford Basin in Texas, similar depositional history and age. 80 horizo
Slide 15: Australis TMS Well Performance
Australis TMS Well Performance For personal use only The 15 wells drilled in 2014/15 within Australis’ core acreage demonstrate significantly higher average productivity than the average of other TMS wells drilled in Mississippi Individual 24 Month Cumulative Production Per Well – TMS Mississippi4,5
Slide 16: TMS Core Type Curve
TMS Core Type Curve For personal use only ATS type curve is history matched to production from the most recent 15 Mississippi ATS wells Total oil production per well initial, 24 months (mbbls) Production profiles (see appendix for full data set and analysis) 40,000 Produced oil volume (bbls) Lawson
Slide 17: TMS Oil Productivity Compared to Permian
TMS Oil Productivity Compared to Permian The average production from Australis’ TMS wells drilled in 2014 are significantly higher than For personal use only Permian wells drilled in the same year. Industry improvements since 2014 have yet to be applied to the TMS Midland Basin Delaware Basin 200 20
Slide 18: Capital Cost Profile of Early TMS Wells
Capital Cost Profile of Early TMS Wells TMS well costs trending downwards over time in line with other plays For personal use only The first well drilled and completed by Australis (Stewart 30H-1) cost US$1,503 /ft which is the lowest cost per foot well drilled in the TMS to date Other play part
Slide 19: Well Cost Overview
Well Cost Overview The major US shale plays have seen significant cost declines, and initial costs from Australis’ For personal use only current well program indicate this will be replicated in the TMS Comparable Plays Well Cost Trends10 TMS Drilling costs incurred prior to 2015 were already follo
Slide 20: Austin Chalk Trend
Austin Chalk Trend Following recent EOG well results, there is significant activity in the South West targeting Austin For personal use only Chalk Austin Chalk Trend EOG drilled the Eagles Ranch 14H-1 well during Q3 2017 - Public data indicates liquids rich production - Well performance on par wit
Slide 21: Portugal
For personal use only Executive Summary Tuscaloosa Marine Shale (TMS) Portugal Appendix
Slide 22: Portugal Concessions Overview
Portugal Concessions Overview For personal use only Australis owns two concessions onshore Portugal with significant development potential Asset Highlights Asset Location Significant Gas Large in-place discovered and tested gas Resource accumulation with 2C resources of 458 Bcf2 Limited explorat
Slide 23: 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 24: Portugal Concessions Status
Portugal Concessions Status For personal use only Australis is working with Portuguese Authorities to achieve the necessary regulatory approvals to commence exploration and appraisal activity Work Program to Date Australis has completed a number of detailed subsurface engineering studies to review
Slide 25: Appendix
For personal use only Executive Summary Tuscaloosa Marine Shale (TMS) Portugal Appendix
Slide 26: Directors & Management
Directors & Management Demonstrated track record in oil & gas For personal use only John Stewart Ian Lusted Darren Wasylucha Non-Executive Chairman Managing Director & CEO Chief Corporate Officer >25 years in the upstream oil and gas industry >25years in the upstream oil & gas industry Former
Slide 27: TMS Core Type Curve
TMS Core Type Curve Summary of monthly oil production data for the most recent 15 Encana drilled, ATS operated For personal use only modern offset Mississippi wells Lewis 7- Pintard Lyons Pintard Longleaf Longleaf Mathis Mathis Lawson Ash 13H Sabine Sabine McIntosh Reese Stewart Well Name Ash 13H 2
Slide 28: Single Well TMS Core Type Curve
Single Well TMS Core Type Curve ATS type curve is history matched to production from the most recent 15 Mississippi wells (drilled For personal use only by ECA, operated by ATS) TMS Core TC – Assumptions TMS Core Type Curve v TMS Production 250,000 Oil EUR – 610 Mbbls Gas EUR – 159 MMscf 200,000
Slide 29: TMS Value
TMS Value Potential 410 future net well locations with strong economics For personal use only Single Well Economics and Sensitivities – Pre-tax NPV10 (US$ in millions) $11 million/well $10 million/well $9 million/well $14.1 $13.2 $12.2 $4.0 $4.0 $10.7 $4.0 $9.7 $8.8 $3.5 $3.5 $7.2 $3.5 $6.3 $5.3 $2.
Slide 30: Single Well Economics – IRR Sensitivities
Single Well Economics – IRR Sensitivities 410 future wells with attractive return profile For personal use only Single Well Economics and Sensitivities – Pre-tax IRR D, C & T $11 MM/well D, C & T $10 MM/well D, C & T $9 MM/well 113% 89% 79% 71% 62% 73% 49% 51% 57% 40% 51% 46% 31% 39% 31% 32% 24% 19%
Slide 31: 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 Oil/Condensate 610 M
Slide 32: Reserves and Resource Update
Reserves and Resource Update For personal use only Australis continues to grow reserves and resources As an ASX participant Australis reports to the TMS Reserves & Resource Estimates1 SPE PRMS which requires any undeveloped Net Oil reserves, that are to be assessed for reserves 2018 Ryder Scott Re
Slide 33: Financial & Operational Summary
Financial & Operational Summary Field Cashflow financing overhead and land capex program in 2018 For personal use only Key Financial Metrics - 2018 Sales Volumes (WI – before royalties) 506,000 bbls Realised Price US$68.80 Sales Revenue US$35 million Field Netback US$16 million Cash as at 31 Decembe
Slide 34: TMS Crude Oil Price
TMS Crude Oil Price The premium pricing of LLS to other onshore US crude benchmarks is becoming increasingly more For personal use only attractive Crude Oil Spot Price, Daily Settlement, US$/bbl Because of the proximity of Australis’ wells to the St. James Oil Terminal in Louisiana and the high qu
Slide 35: Footnotes
Footnotes For personal use only 1. All estimates and risk factors taken from Ryder Scott, report prepared as at 31 December 2018 and generated for the Australis concessions to SPE standards. See ASX announcement released on 6 February 2019 titled “Reserves and Resources Update Year End 2018”. The an
Slide 36: Glossary
Glossary For personal use only Unit Measure Unit Measure 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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