Otto Energy Limited · ASX:OEL
Otto Energy — Investor Presentation (October 2016)
24 slides from Otto Energy's investor presentation, October 2016
Slide 1: Investor Update Presentation
ASX : OEL Investor Update Presentation INVESTOR PRESENTATION Matthew Allen, Managing Director and CEO October 2016
Slide 2: Otto Energy – Accomplished E&P Team
Otto Energy – Accomplished E&P Team Executing complex projects and transactions Acquired operatorship of Galoc oil field Increased working interest to 33.0% and assumed operatorship of field. Purchase price equivalent to Upgraded Galoc FPSO delivering top US$11.50 per bbl (2P reserves) in the ground
Slide 3: Delivering Growth Against Challenging Sector Conditions
Otto Energy Delivering Growth Against Challenging Sector Conditions Drilling success sees return to production in 2017 SM71#1 well yields gross 5 MMbbls and 3.6 Bcf discovery. Production Platform acquired. First Production 2H 2017. Potential upside to be tested during development drilling. Focus
Slide 4: Gulf of Mexico
Gulf of Mexico Building our production base High chance of success Miocene amplitude- supported targets Shallow water/onshore High liquids content Economically robust at low oil price 4 Investor InvestorUpdate UpdatePresentation, Presentation,September October 2016 2016
Slide 5: South Marsh Island 70/71
South Marsh Island 70/71 SM70/71 Discovery Well SUCCESSFULLY TARGETED 50% WI earned through contribution to well D5 sands on salt dome costs during the successful drilling of SM71-1 western flank Game-changing oil + gas discovery Proves technology to unlock updip plays Well TD 7,477 feet MD
Slide 6: Further upside at SM71 discovery
Further upside at SM71 discovery New target to be appraised during development drilling B BYE SM71 #1 B’ D5 Sand Amplitude Map A’ I Sand Production B’ 590 Mbo Historical Production B’ J Sand Production B’ 3.3 Mmbo Historical Production B I Sand Erosional Truncation/ P/Out of D5 J Sand SM71 Byron #1
Slide 7: SM71 Development
SM71 Development SM71 Production Facility Procured 26/8/2016- Entered purchase and construction agreement with Laredo Construction Inc. for tripod jacket, decks, helideck, boat landing and production equipment Tripod facility is capable of accommodating 6 wells and producing in excess of 5,000 b
Slide 8: Bivouac Peak
Bivouac Peak Onshore Louisiana with analogue fields BYRONENERGY LIMITED Cris I – Cib Op Trend Active Production Prospect Acreage Note: Otto will earn interests in the above resources volumes by participating in wells. The estimated quantities of petroleum that may potentially be recoverable by the a
Slide 9: Bivouac Peak Multi-play Lease Block
Bivouac Peak Multi-play Lease Bivouac Peak “Deep” Future Exploration Well Proposed Location Bivouac Peak “East” Initial BYE # 1 Well Proposed Location Block TD = ~20,000’ TD = ~18,000’ 45% WI in 2500 acre lease exercisable upon contribution to well costs (60% capped at US$6m) Multiple amplitude-
Slide 10: Alaska
Alaska North Slope Light oil in conventional reservoirs Large prospect inventory Imminent drill campaign Low-risk capped costs Infrastructure access 10 Investor Update Presentation, October 2016
Slide 11: Tier-1 Prospects
Tier-1 Prospects Developed from extensive lead inventory 45 Leads 30 Leads High- 8 Tier-1 Prospects 2-4 Drilling Identified graded locations • HC shows in vintage wells • Rank into 3 tiers based • Mature Leads into • Highest probability of • Reservoir presence in on: Prospects: discovery vintage wel
Slide 12: Pipeline State-1 Results
Pipeline State-1 Results On-block vintage well de-risks the acreage Pipeline State-1 Pipeline State-1 was drilled as a stratigraphic test in February 1988 by Arco Alaska. The well reached a total vertical depth of 10,460 feet and encountered a number of oil-bearing intervals. Several cores were take
Slide 13: First Two Wells - Possible Configuration
First Two Wells - Possible Configuration Increase chance of success by intersecting multiple independent reservoirs with each wellbore Well-B Avenger Well A Well B Pipeline State-1 Well-A Helio Stratigraphic pinch out of shallow water prograding sands Blackbird Free oil to surface in Pipeline State-
Slide 14: Alaska: The First Two Wells
Alaska: The First Two Wells Gross Prospective Resource Net Prospective Resource Low Best High Mean Mean Net WI Prospect POS* (MMbbls) (MMbbls) (MMbbls) (MMbbls) (MMbbls) Blackbird 6 20 62 28 3 24% Helio 17 49 144 66 7 30% Hellcat 13 47 172 72 8 40% WELL A Skywagon 13 40 126 57 6 24% Avenger 20 65 22
Slide 15: Unconventional Upside: Hue/HRZ
Unconventional Upside: Hue/HRZ Optimal location for potential major shale play Recent drilling by 88 Energy at Icewine-1 well confirms Hue Shale potential in this region and second round drilling Immature with horizontal flow test is planned. Oil OTTO ENERGY Light oil ACREAGE 88 Energy Icewine-1 HRZ
Slide 16: Tanzania
Tanzania Large Volume Exploration Target Kito Prospect analogous to Kenya & Uganda discoveries Additional delineated leads may be drilled in success case 16 Investor Update Presentation, October 2016
Slide 17: Kilosa-Kilombero PSA Kito Prospect
Kilosa-Kilombero PSA Kito Prospect Large frontier exploration prospect Kito Prospect Similar to discoveries in Kenya & 50 km2 Uganda in terms of tertiary age, Area of Closure Up to 250m column height structural setting, and regional paleoclimate Reservoir type Miocene (Neogene) ‘Deep U/C’ Depth
Slide 18: Forward Activity
Forward Activity Positioning for high-impact growth SM71 development underway 2017 return to production Drilling program beginning in early 2017 to test multiple high-impact targets Funded from current cash balance 18 Investor Update Presentation, October 2016
Slide 19: Activity Timeline
Activity Timeline Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2016 2016 2017 2017 2017 2017 2018 SM Development planning Low-cost production 70/71 GULF OF Drilled MEXICO SUCCESS Bivouac Technical evaluation Peak Drill Option First Risk & rank prospects round drilling Well planning Drill 1-2 Wells ALASKA Second Ris
Slide 20: Corporate Value
Corporate Value 300 25 250 Equivilent Value (AUD cents per share) 20 200 Value (AUD $ million) 15 150 + Internal valuation WTI flat $60.00 USD $0.05+ 10 100 + Internal valuation WTI flat $60.00 USD $0.05+ OEL Market Capitalization 17 October 2016 5 50 $0.02 - 0 Cash SM71 SM71 Bivouac Peak Alaska Tan
Slide 21: Additional Information
Additional Information Otto Energy Ltd 32 Delhi Street West Perth Western Australia 6005 Telephone: +61 8 6467 8800 Facsimile: +61 8 6467 8801 info@ottoenergy.com 21 Investor Update Presentation, October 2016
Slide 22: Corporate Snapshot
Corporate Snapshot 70,000,000 $0.07 60,000,000 $0.06 Volume (shares traded per day) 50,000,000 $0.05 OEL Share Price 40,000,000 $0.04 30,000,000 $0.03 20,000,000 $0.02 10,000,000 $0.01 0 $0.00 Capital Structure Shareholders Fully paid ordinary shares 1.181b Molton Holdings 20.5% Unlisted options1 8.
Slide 23: Experienced Board & Management Team
Experienced Board & Management Team Board of Directors Senior Management John Jetter – Non-Executive Chairman. Matthew Allen – Managing Director & CEO. LLB, BEc INSEAD BBus, FCA, FFin, GAICD Former MD/CEO J.P. Morgan Germany. Global exposure to the upstream oil and gas industry with Non-Executive Di
Slide 24: Disclaimer
Disclaimer This presentation does not constitute an offer to sell securities and is not a solicitation of an offer to buy securities. It is not to be distributed to third parties without the consent of Otto Energy Limited (the “Company”). This presentation contains forward looking statements that ar