Australis Oil & Gas Ltd. · ASX:ATS
Australis Oil & Gas — Investor Presentation (March 2021)
31 slides from Australis Oil & Gas's investor presentation, Mar 1, 2021
Slide 1: ASX Announcement: Corporate Presentation Material
ASX Announcement For Immediate Release 1 March 2021 Corporate Presentation Material Please find attached the investor presentation for the Australis Oil and Gas Limited capital raising. This ASX announcement was authorised for release by the Australis Disclosure Committee. For further information, p
Slide 2: Capital Raise
ASX: ATS Capital Raise February 2021 NOT FOR DISTRIBUTION OR RELEASE IN THE US
Slide 3: Important Notice and Disclaimers
Important Notice and Disclaimers This presentation has been prepared by Australis Oil & Gas Limited ABN 34 609 262 937 (ASX: ATS) (Australis). Australis means Australis Oil & Gas Limited and, where appropriate, all subsidiaries as at the date of this presentation. Summary of information: This presen
Slide 4: Australis – Compelling Strategic Opportunity
Australis – Compelling Strategic Opportunity ✓ Tier 1 Productivity of the delineated TMS Core already proven by others and further demonstrated by Australis ✓ Base case well economics established with sources for significant potential upside ATS holds a material position in a identified play with de
Slide 5: Equity Raising Overview & Timetable
Equity Raising Overview & Timetable Australis is seeking to raise up to approximately A$8.2 million (US$6.3 million) through a private placement to existing and new investors. The Company will also offer an SPP to raise a maximum A$2 million (US$1.5 million) ▪ Australis is seeking to place new equit
Slide 6: The TMS Core is a Unique Tier 1 Asset
The TMS Core is a Unique Tier 1 Asset Proven productivity performance and key advantages sought by shale industry when replacing depleting Tier 1 oil inventory ▪ Proven oil productivity is on par or better than other established US Tier 1 oil shale basins Highly Productive ▪ Multiple wells across th
Slide 7: TMS Core – Substantial acreage position with scale and control
TMS Core – Substantial acreage position with scale and control TMS Project Asset Profile Acreage Expiry Profile Mississippi and Louisiana, USA ▪ Large contiguous land position in the TMS Core with >100,000 net acres (none on ~107,500 Net Acres federal lands) (37,700 HBP) 13,300 37 operated ▪ Ideal l
Slide 8: TMS Core - Significant oil reserve and resource
TMS Core - Significant oil reserve and resource Material mid case recoverable estimate of 170 million bbls independently verified (Ryder Scott LP) Australis TMS Reserves and Resources – as at 31 December 2020 Australis Net Oil 4 Reserve and Resource category (MMbbls) Reserves1 Proved Developed Produ
Slide 9: 2020 Operational Performance and Results
2020 Operational Performance and Results Disciplined capital management and TMS asset performance drove strong 2020 results despite challenging market conditions ▪ Strong Field NetbackC of $24/bbl (NRI and excluding ATS 2020 Quarterly Results hedging) provided solid financial base for ATS Q1 Q2 Q3 Q
Slide 10: Evolution and impact of the US Shale Industry
Evolution and impact of the US Shale Industry US unconventional growth has heavily influenced global oil markets since 2007 ▪ US oil production grew rapidly during this period to make them the largest producer in the world at over 14 million bbls per day and shale alone as the 4th largest contributo
Slide 11: Life Cycle of a Shale Play
Life Cycle of a Shale Play Eagle Ford Shale – Delineation, Improvement, Growth then Plateau Plateau Eagle Ford Shale Production 3,000 Next 12,000 new wells 2,500 MBOE/Day 2,000 1,500 1,000 500 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Oil (mbbl/d) Condensate (mbbl/d) Gas (mb
Slide 12: Consolidation Occurring in the Permian
Consolidation Occurring in the Permian Permian Basin – Still plenty of Tier 1 inventory but industry consolidation limits entry opportunities for those companies without exposure ▪ Six material corporate deals in the Permian during 2H 2020 – over 1.1 million acres acquired for US$42.6 billion Transa
Slide 13: TMS Core – Tier 1 Basin Productivity
TMS Core – Tier 1 Basin Productivity TMS Type Curve well productivity and decline profile outperforms many of the best counties within the four major oil producing basins: the Permian, Eagle Ford, Williston (Bakken) and DJ - Niobrara 24 month cum. Oil Production (‘000 bbls) Average Cum Oil Productio
Slide 14: Australis strategy and timing
Australis strategy and timing Valuation is always a product of asset quality and scarcity…….empirical data supports TMS Core quality and the US Shale evolution now driving the latter. ▪ Prior to COVID-19, the US shale industry was going through a structural shift with diminishing Tier 1 inventory lo
Slide 15: Summary
Summary Experienced team and strategy will ultimately drive shareholder returns. TMS Asset Quality Strategic Advantages of TMS ▪ Comparable productivity to best areas in ▪ Large resource of oil the USA. Long production history from ▪ Proximity to infrastructure 85 wells removes guess work ▪ Known we
Slide 16: Additional Information
Additional Information NOT FOR DISTRIBUTION OR RELEASE IN THE US 15
Slide 17: TMS is an undeveloped Tier 1 oil shale play
TMS is an undeveloped Tier 1 oil shale play On trend with Eagle Ford Basin in Texas, similar depositional history and age TMS Location ▪ Onshore basin - Louisiana and Mississippi. ▪ On trend with Eagle Ford Basin in Texas, similar depositional history and age. ▪ 85 horizontal wells were drilled from
Slide 18: Single Well TMS Type Curve
Single Well TMS Type Curve TMS Type Curve is a simple history match to averaged data from 15 ATS operated wells drilled in 2014 TMS Type Curve – Assumptions TMS Core Type Curve v TMS Production ▪ Oil EUR – 610 Mbbls 250,000 ▪ Gas EUR – 159 MMscf 200,000 Oil Production (bbl) ▪ NGL EUR – 20 Mbbls 150,
Slide 19: Single Well Economics – Conservative Base Case
Single Well Economics – Conservative Base Case Assumptions consistent with RS 2020 Reserves including Capex, Opex and lateral length – no future upsides are assumed in the base case Base Case Assumptions* Production Forecast EURC 30,000 600,000 Gas 0.37 Bcf Oil/Condensate 611 Mbbl 25,000 500,000 Pro
Slide 20: Large well inventory each with attractive economics
Large well inventory each with attractive economics Australis has 400 net well locations - each with a base value of US$3.9 million @ $55/bbl (excluding upside) Single Well Economics NPV10A (US$ million) $3.2 $10.4 Stewart well drilled by ATS in Q4 2018 at $55/bbl WTI $0.5 $7.2 $2.8 $3.9 IRR 27% IRR
Slide 21: Case Study – Delaware Basin vs TMS
Case Study – Delaware Basin vs TMS Two recent ‘Tier 1’ transactions highlight the comparative value of the TMS 6,7 WPX acquires Felix Energy for US$2.5 B (cash & stock) – December 2019 ▪ 58,500 net acres, 60,000 boe/d production (70% oil), 190 wells drilled, 1,500 gross locations. At $30k/boe/d equa
Slide 22: Australis Corporate Snapshot at 22 Feb 2021
Australis Corporate Snapshot at 22 Feb 2021 Well positioned after 2020 with experienced and invested Management Team Key ATS Financial Statistics for FY 2020 Board & Management – Ex Aurora Founders & Management Average Sales (WI) ~1,380 bbl/day Jon Stewart Non-Executive Chairman Average Sales Price
Slide 23: Indicative Capital Structure post the Placement & SPP
Indicative Capital Structure post the Placement & SPP Assumes - Tranche 1: 150 million shares issued at 5c to raise A$7.5 million before costs, - Tranche 2: 13.5 million shares issued at 5c to raise A$0.675 million, and - The SPP: 40 million new shares being issued at 5 cents to raise A$2.0 million
Slide 24: Capital Structure – 24 February 2021
Capital Structure – 24 February 2021 Ordinary Shares on issue 1,007,963,678 Options & Performance Rights Grant dates Exercise Price (A$) Vesting Expiry Number Directors, Executives & Management 13 Nov 2015 $0.35 Vested 31 Dec 2022 29,200,000 28 Apr 2016 $0.35 Vested 31 Dec 2022 2,000,000 24 May 2016
Slide 25: Footnotes
Footnotes 1. All estimates and risk factors taken from Ryder Scott, report prepared as at 31 December 2020 and generated for the Australis concessions to SPE standards. See ASX announcement released on 5 February 2020 titled “Reserves and Resources Update Year End 2020”. Australis is not aware of an
Slide 26: Glossary
Glossary 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 Description TMS Tuscalossa
Slide 27: Risk Factors
Risk Factors Investing in the placement involves inherent risks. Prospective investors should carefully consider, among other things, the risk factors set out below before making an investment decision. The list of risk factors is not exhaustive and there may be other risks relevant to Australis whi
Slide 28: Risk Factors
Risk Factors Australis is exposed to key personnel risk. Australis’ success depends in large measure on certain key personnel. The loss of the services of such key personnel may have a material adverse effect on Australis’ business, financial condition, results of operations and prospects. The contr
Slide 29: International Offer Restrictions
International Offer Restrictions This document does not constitute an offer of new ordinary shares ("New Shares") of Australis in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any c
Slide 30: International Offer Restrictions
International Offer Restrictions United Kingdom: Neither the information in this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Service
Slide 31: International Offer Restrictions
International Offer Restrictions Singapore: This document and any other materials relating to the shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this document and any other document or materials in conne
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