Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — AFR National Energy Summit 2017
16 slides from Amplitude Energy's conference presentation, Oct 9, 2017
Slide 1: Developing new gas from offshore south-east Australia
For personal use only Developing new gas from offshore south-east Australia ` David Maxwell Managing Director, Cooper Energy Presentation to AFR National Energy Summit 9 October 2017
Slide 2: Cooper Energy production and gas reserves and resources
Cooper Energy production and gas reserves and resources Growing through gas supply to south-east Australia For personal use only Production Gas reserves & resources PJ PJ 70 60 50 40 30 20 63 10 186 5 0 FY13 FY14 FY15 FY16 FY17 FY18g FY19f FY20f FY21f FY22f 51 Oil Existing gas: Gas in development: S
Slide 3: New gas supply for south-east Australia from 2019
New gas supply for south-east Australia from 2019 Sole gas project - $605 million development, offshore Victoria For personal use only Onshore: APA Group Offshore: Cooper Energy • $250 million upgrade and re-opening of • $355 million subsea development and Orbost Gas Plant shore crossing • Capabilit
Slide 4: Sole gas 75% contracted for FID & balance available for sale
Sole gas 75% contracted for FID & balance available for sale Gas buyers committed long term off-take at competitive prices For personal use only Sole gas supply 75% contracted O-I Bottle manufacturing 10 5 5 5 5 5 5 5 16 20 20 20 20 20 20 20 19 14.5 9 6 0.5 FY19 FY21 FY23 FY25 FY27 FY29 Contracted R
Slide 5: Sole gas project status
Sole gas project status Project on schedule & on budget for first gas to plant March 2019 For personal use only • 21% complete (offshore project), end-August • All major equipment and services contracts agreed − 15 different countries • More than 100 government approvals required − federal, state an
Slide 6: Sole – timing is important years and owners from discovery to FID
Sole – timing is important 44 years and 4 owners from discovery to FID For personal use only Year 7 0 111 3 2 567 1 2 3 4 5 1 1973: Sole-1 gas discovery by Shell 2 2002: Sole-2 drilled by OMV; flows 20.6 MMcf/d on test 3 2015: Cooper Energy buys in, Commence FEED; O-I foundation gas customer, 4 2016
Slide 7: Sole - why wasn't it developed earlier?
Sole - why wasn’t it developed earlier? All the key ingredients need to come together at the same time For personal use only Sub surface Low technical risk; excellent reservoir characteristics 249 PJ gas reserves Simple reservoir & subsurface development High deliverability - permeability & po
Slide 8: South-east Australia gas supply costs in 2020
South-east Australia1 gas supply costs in 2020* Victorian producers the lowest cost supply option for Victoria. For personal use only Delivered Melbourne city gate cost for gas from eastern Australia available for delivery to domestic market in 2020* AUD / GJ Typical peak daily quantity for VIC/NSW/
Slide 9: Identifying where to play the "gas to south-east Australia" opportunity
Identifying where to play the “gas to south-east Australia” opportunity Matching market fundamentals + delivered cost + shareholder value revealed clear winners For personal use only South-east Australia: supply v demand • Many identified tight supply 5 years ago • Very few took any action - “she’ll
Slide 10: South-east Australia is the best supply source for south-east Australia
South-east Australia is the best supply source for south-east Australia Gas supply potential of the Otway and Gippsland Basins is underexploited. For personal use only Otway 350 173 Gippsland Bass 2,483 85 2,051 215 Total 2,918 Natural gas and ethane reserves (PJ) 2,439 Natural gas and ethane Contin
Slide 11: Drilling activity is responding….. offshore at least
Drilling activity is responding….. offshore at least Gas exploration and development drilling is resuming in the Otway and Gippsland Basins For personal use only • Cooper Energy is bringing Ocean Monarch to Diamond Ocean Monarch south-east Australia • Sole (Gippsland) and Casino Henry (Otway) • Exxo
Slide 12: Stepping stones to development
Stepping stones to development Starts with the right resource and customers and requires clear stable policy For personal use only FEED & regulator approvals Economic & technically feasible development Equity market support plan Market competitive resource Offtake agreements Debt financier Customer
Slide 13: Wrap-up
Wrap-up Its all about the fundamentals….. For personal use only • Business fundamentals determine development and the merit of investment and financing • Sole gas field is being developed because it is a competitive new source of gas supply. Customers who supported Sole have been rewarded with long
Slide 14: Appendices
For personal use only Appendices
Slide 15: Notes on calculation of Reserves and Resources
Notes on calculation of Reserves and Resources Notes on Calculation of Reserves and Contingent Resources Cooper Energy has completed its own estimation of reserves and resources in accordance with the definitions and guidelines in the Society of Petroleum Engineers (SPE) 2007 Petroleum Resources For
Slide 16: Abbreviations
Abbreviations $, A$ Australian dollars unless specified otherwise For personal use only Bbl barrels of oil boe barrel of oil equivalent EBITDA earnings before interest, tax, depreciation and amortisation FEED Front end engineering and design kbbls thousand barrels MMbbl million barrels of oil MMboe