Echelon Resources Limited · ASX:ECH
Echelon Resources — New Zealand Oil & Gas — Investor Presentation (April 2022)
31 slides from Echelon Resources's investor presentation, Apr 12, 2022
Slide 1: New Zealand Oil & Gas Investor Presentation
New Zealand Oil & Gas Investor Presentation New Zealand Oil & Gas, 12 April 2022
Slide 2: Disclaimer and Important Notice
Disclaimer and Important Notice This presentation contains summary information about New Zealand Oil & Gas Limited (NZO or Company) and its activities which is current as at the date of this presentation and remains subject to change without notice. The information in this presentation is of a gener
Slide 3: Table of Contents
Table of Contents 1. About Us 4 2. Production and Reserves 8 3. Asset overview 15 4. Company Close-Up 22 Appendix 1: Reserves Statement & Condensed Statement of Financial Position 29 3
Slide 4: New Zealand Oil & Gas at a Glance
New Zealand Oil & Gas at a Glance AMADEUS BASIN, NORTHERN TERRITORY, AUSTRALIA MEREENIE: New Zealand Oil & Gas 17.5% Cue Energy Resources 7.5% PALM VALLEY: New Zealand Oil & Gas 35% Cue Energy Resources 15% DINGO: New Zealand Oil & Gas 35% Cue Energy Resources 15% SUMATRA, INDONESIA OFFSHORE SOUTH T
Slide 5: Company Snapshot
Company Snapshot CLEAR STRATEGY ACTIVE IN STABLE REGIONS Invest in high quality assets, low-cost operating model. Listed on both ASX and NZX. Focus on current production with attractive development opportunities. Established in 1981, headquartered in Wellington, New Zealand. Near-field, lower-risk e
Slide 6: Good to Grow
Good to Grow AMADEUS ACQUISITION CHANGED THE GAME MAHATO DELIVERING FOR CUE Near-Term Growth Catalysts Financial years. Indicative. Palm Valley and Dingo Further Palm Valley appraisal and Kupe development well and Mereenie flare gas recovery Cashflow Positive. Potential exploration/development wells
Slide 7: NZO Share Price
NZO Share Price 0.8 OGOG offer Ironbark drilling increased 0.7 Trend since Amadeus OGOG offer Ironbark for 100% exploration well nears Share Price ($NZD) 0.6 OGOG offer rejected 0.5 Ironbark not successful Amadeus acquisition 0.4 completes 0.3 Apr 19 Aug 19 Jan 20 May 20 Sep 20 Feb 21 Jun 21 Nov 21
Slide 8: Production and Reserves
Section 2 Production and Reserves
Slide 9: Significant Production Added
Significant Production Added 1.6 Annual Production in millions of barrels of oil equivalent (mmboe) 1.2 Kupe Mereenie Palm Valley Dingo Maari Oyong Wortel Mahato 0.8 0.4 0 FY18a FY19a FY20a FY21a FY22e* *FY22 estimated production is as per the Company’s 2021 annual report. Graphic reports 100% of Cu
Slide 10: Solid Recent Reserves Additions With Upside Opportunities
Solid Recent Reserves Additions With Upside Opportunities 2P Total Reserves + 2C Contingent & 2U Prospective Resources as at 1 Jan 2022, mmboe net to NZO (including Cue share) 40 Total Increase Decrease 4.0 38.0 6.1 GCoS* 2U** 30 1.1 Palm Valley- Arumbera. 1.1 0.1 24% 37.5 7.5 Expected 1HFY23 mmboe
Slide 11: Production Feeding the Bottom Line
Production Feeding the Bottom Line Revenue Net Operating Cash Inflow Forecast Forecast 50,000 20,000 37,500 $9.8m attributable to newly acquired 15,000 Amadeus Basin assets $’000s $’000s 25,000 10,000 12,500 5,000 - - Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Jun 22 Jun-18 Dec-18 Jun-1
Slide 12: Our Assets, Placed for Growth
Our Assets, Placed for Growth Development and exploration wells in the Amadeus Basin Selling into healthy markets Development well moving towards final investment decision at Kupe Cue’s Paus Biru development in Indonesia Cue’s success at Mahato, Indonesia 12
Slide 13: Notional Activities Timeline
Notional Activities Timeline WHERE AMADEUS BASIN, AUSTRALIA CUE, INDONESIA KUPE, NEW ZEALAND WHAT WHEN 2021 2022 2023 2024 PRODUCTION Mereenie Coil Tubing Amadeus De-Bottlenecking ENHANCEMENT Mereenie Flare Gas Compressor M&A Amadeus Acquisition DEVELOPMENT Kupe Compression Kupe Drilling PV-12 PV Dr
Slide 14: Healthy Energy Markets
Healthy Energy Markets US$ Brent Oil prices are rising OIL PRICE TRENDING UPWARDS POSITIVELY IMPACTING MAHATO REVENUES AMADEUS GAS SALES LINKED TO BRENT OIL PRICE AUSTRALIA EAST COAST MARKET Forecast supply constraints are anticipated to US$ create price pressure KUPE RE-CONTRACTING OPPORTUNITY OCTO
Slide 15: Asset Overview
Section 3 Asset Overview
Slide 16: Total 2P Reserves By Country
Total 2P Reserves By Country Dingo Sampang 2.81 0.70 Indonesia 2.12 mmboe Mahato 1.42 Australia 13.30 mmboe Maari 0.61 Palm Valley 2.03 Mereenie New Zealand 8.46 2.58 mmboe Kupe 1.97 Mahato reserves are from the reserves statement included in the Mahato PSC update 29 March 2022. Reserves are effecti
Slide 17: Amadeus Basin, Australia: Mereenie Gas Field
Amadeus Basin, Australia MEREENIE GAS FIELD IMPROVING COMMERCIAL OUTCOMES Acreage of 281km2 on two permits Multiple short and medium term gas contracts 71 existing wells Improving average realised price Two production facilities Near and medium term development opportunities Pipeline linked to North
Slide 18: Amadeus Basin, Australia: Palm Valley Gas Field
Amadeus Basin, Australia PALM VALLEY GAS FIELD KEY OPPORTUNITIES Acreage of 616km2 Near term development and exploration drilling 10 existing wells Improving commercial opportunities Production facility Multiple short and medium term gas contracts Pipeline linked to Northern Territory and East Coast
Slide 19: Amadeus Basin, Australia: Dingo Gas Field
Amadeus Basin, Australia DINGO GAS FIELD KEY OPPORTUNITIES Acreage of 468km2 Near term development and exploration drilling Two existing wells Long-term take-or-pay gas contract with Power and Production facility Water Corporation providing power for Alice Springs Linked to local markets DINGO FIELD
Slide 20: Taranaki, New Zealand: Kupe Gas and Condensate Field
Taranaki, New Zealand KUPE GAS AND CONDENSATE GAS FIELD KEY OPPORTUNITIES Acreage of 256km2 Improving commercial opportunities 3 existing production wells Significant future un-contracted gas in a healthy market Dedicated production facilities extracting gas, LPG and condensate Kupe re-contracting o
Slide 21: Cue Developments in Indonesia
Cue Developments in Indonesia MAHATO PSC Cue 12.5% ONGOING and Future Onshore Development Drilling 92.8 million barrels (in place) field discovered in 2020. 8 production wells delivered (1 Jan 22). Production up from 0 to 5,500 bopd. Recently announced material increase in 2P Total Reserves to 1.4mm
Slide 22: Company Close-up
Section 4 Company Close-up
Slide 23: Expert, Stable Management Team
Expert, Stable Management Team Andrew Jefferies, Paris Bree, Catherine McKelvey, Daniel Leeman, Dr Chris McKeown, Michael Wright, Managing Director General Counsel CFO GM Assets & VP Business GM Commercial Engineering Development Andrew has been working in the Paris has been working in the Catherine
Slide 24: Deeply experienced board
Deeply experienced board Rod Ritchie, Dr Rosalind Archer. Marco Argentieri Samuel Kellner, Andrew Jefferies, Alastair McGregor Independent Independent Chairman Managing Director director director Samuel has held a variety of Ros has been a Petroleum Marco has worked for the Ofer Andrew has been worki
Slide 25: ESG Performance Matters to Us
ESG Performance Matters to Us Carbon conscious production. We offset our Scope 1 New Zealand emissions, back up solar and displace coal use. We report on the Sustainable Development Goals (UN’s 2030 The only oil and gas company in our region to achieve a Rainbow Tick. Agenda for Sustainable Support
Slide 26: Our Values
SUSTAINABILTY Our Values SUSTAINABILTY SUSTAINABILTY SUSTAINABILTY Tikanga. The Right Things the Right Way TIKANGA: THE RIGHT THINGS THE RIGHT WAY Wesafely, We operate operate safely and do whatand do what we say we willwe TIKANGA: THE RIGHT THINGS THE RIGHT WAY do.say we will do. Weoperate We displ
Slide 27: Distribution of shareholdings
Distribution of shareholdings 1 - 999 0.47% 1,000 - 1,999 0.77% 2,000 - 4,999 1.79% 5,000 - 9,999 1.73% 10,000 - 49,999 5.64% 10,000,000 Over 50,000 - 99,999 69.86% 2.94% 100,000 - 499,999 5.21% 500,000 - 999,999 3.43% 1,000,000 - 9,999,999 8.16% As at 24 March 2022 27
Slide 28: We are building a great business by investing in producing oil and gas assets
“We are building a great business by investing in producing oil and gas assets in our region, selling into healthy markets that have a demand for ethical production. The world needs our energy. The time is right to invest in the growth of our producing assets.” Andrew Jefferies, Chief Executive and
Slide 29: Appendix
Appendix Reserves Statement & Condensed Statement of Financial Position 29
Slide 30: Reserves Statement
Reserves Statement Oil and gas reserves, and contingent and prospective resources, are reported as at 1 January 2022, unless otherwise stated, and follow the SPE PRMS Guidelines (2018). The volumes presented are net to New Zealand Oil & Gas, including Cue’s reserves and resources at 100% (noting New
Slide 31: Condensed Statement of Financial Position
Condensed Statement of Financial Position For the half year ended 31 December 2021 Unaudited Half Year Audited Full Year Unaudited Half Year Audited Full Year $000 31 Dec 2021 30 Jun 2021 31 Dec 2021 30 Jun 2021 ASSETS LIABILITIES Current assets Current liabilities Cash and cash equivalents 33,444 7
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