Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — Investor Presentation (July 2017)
30 slides from Amplitude Energy's investor presentation, Jul 17, 2017
Slide 1: Investor pack 17 July 2017
For personal use only Investor pack 17 July 2017
Slide 2: Important Notice – Disclaimer and other information
Important Notice – Disclaimer and other information The information in this presentation: For personal use only • Is not an offer or recommendation to purchase or subscribe for shares in Cooper Energy Limited or to retain or sell any shares that are currently held. • Does not take into account the i
Slide 3: An introduction
An introduction For personal use only Cooper Energy develops and supplies gas to south-east Australia and produces oil from the Cooper Basin. Since 2012 the company has executed a strategy to build a portfolio-style gas business focused on opportunities foreseen emerging in south-east Australia. The
Slide 4: Cooper Energy re-cap
Cooper Energy re-cap…. For personal use only The last six months: Right now: The next 6 months: Acquired Santos Victorian gas assets o Sole debt funding in progress o “Sole Unconditional” & financial close Producing gas from Otway Basin o Obtaining regulatory approval for o 43 MMboe reserve upli
Slide 5: Asset portfolio: strategic position
Asset portfolio: strategic position Market driven portfolio, combining cost competitive assets with blue-chip contracts For personal use only Cooper Basin Gippsland Basin • Cash-generating oil production • Largest gas supply source for south-east Australia’s domestic market • Sole2 and Manta offshor
Slide 6: Production profile from existing assets and projects
Production profile from existing assets and projects Gas production from current assets has capacity to drive 6 year, 20 times, production uplift For personal use only Cooper Energy total production: gas and oil MMboe 12.0 Manta gas & liquids 10.0 Sole gas 8.0 6.0 Otway gas 4.0 Indonesia oil 2.0 Coo
Slide 7: Otway Basin
Otway Basin Cash generating gas production, upside opportunities in marketing, development & exploration For personal use only Key Assets • Casino Henry gas project (50% interest1) • Minerva gas field and plant (10% interest) • VIC/P44 exploration permit Production (COE share, effective from 1 Janua
Slide 8: Gippsland Basin
Gippsland Basin Cost competitive resource, existing plant and production planned for FY19 For personal use only Sole Gas Project (VIC L/32,100% interest, Operator1) • 249 PJ 2C Contingent Resource2 • 20 PJ pa contracted: gas contracts with O-I Australia, AGL Energy, Alinta Energy EnergyAustralia • F
Slide 9: Sole gas project
Sole gas project New supply for south-east Australia with blue chip customers & uncontracted gas For personal use only Orbost Gas Plant (APA1 Midstream: 100%) Upstream: Agreement executed 1/6/2017 • 249 PJ gas APA to buy Orbost Gas Plant and • Ready to proceed: March ‘17 • undertake $250 million pla
Slide 10: Sole gas project: work proceeding on schedule
Sole gas project Work proceeding on schedule For personal use only • Work underway • Bulk earthworks completed at Orbost Gas Plant • Manufacture of 65 km subsea pipeline commenced in Brazil • Manufacture of subsea trees underway in Singapore for scheduled delivery end 2017 • Handover of Orbost site
Slide 11: Sole project recent developments and status
Sole project recent developments and status On schedule for first gas to Orbost Gas Plant March 2019 For personal use only Offshore Project Orbost Gas Plant Financing Production licence awarded - Site works commenced $151 million capital raising VIC/L32 completed Plant construction tenders r
Slide 12: Sole project moving forward
Sole project moving forward Project work progressing. Milestones for financial close approaching. For personal use only Project Site works underway for gas delivery to plant March 19 work Equity fund raising conducted Financial Funding Orbost Gas Plant: APA agreement executed APA contract co
Slide 13: Sole gas project schedule
Sole gas project schedule For personal use only H2 2017 H1 2018 H2 2018 H1 2019 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Phase EXECUTE OPERATE Subsurface Subsurface Team Support for Well Planning Ops Geology Support Reservoir and Production Engi
Slide 14: Cooper Basin
Cooper Basin Low cost cash generating oil production For personal use only • March year to date production of 0.19 MMbbl vs 0.25 MMbbl in FY16 YTD • Production impacted by suspension of drilling in FY16 • Operating costs reduced to A$29.78/bbl • Successful 5 well Callawonga development/appraisal dri
Slide 15: South-east Australia gas market outlook
South-east Australia1 gas market outlook Forecast supply shortfalls and increasing gas prices For personal use only Forecast2 south-east Australian gas demand Victorian Average Daily Wholesale Gas Price and supply PJ $ / GJ $35 $30 $25 $20 $15 $10 $5 $0 Jan Mar May Jul Sep Nov Demand 2015 2016 2017
Slide 16: Profile of contracted and uncontracted gas (PJ)
Profile of contracted and uncontracted gas (PJ) 227* PJ uncommitted for contracting into south-east Australian energy market from 2018 For personal use only Gas production1 from current assets: contracted & uncontracted PJ pa 36 35 33 22 25 13 Uncontracted 14 11 13 14 Contracted 20 20 20 20 20 20 20
Slide 17: Near term value catalysts
Near term value catalysts Existing plans and projects underpin growth and value uplift in coming months For personal use only 1 Sole: finalisation of debt funding and receipt of funds • final milestone in project funding Uplift in 2P reserves* • triggers 43 MMboe uplift in 2P reserves MMboe 2 Uncont
Slide 18: Wrap up
Wrap up Gas strategy has delivered growth with further opportunities ahead For personal use only 1 Gas strategy pieces falling into place: An established gas producer with substantial uncommitted reserves ready to be contracted in a tight market. 2 Sole gas project debt financing conclusion: Finalis
Slide 19: Appendices
For personal use only Appendices
Slide 20: Company snapshot
Company snapshot Strong growth profile and balance sheet For personal use only Cooper Energy is an independent Australian exploration and Key figures production company Shares on issue1 1,140.5 mill • Listed in 2002, history of profitable operations and successful exploration and development Shareho
Slide 21: Business overview
Business overview Cash generation from oil base and gas assets, major upside in projects For personal use only Gas production & sales Oil exploration & production Gas projects & contracting Otway Basin: Casino Henry & Minerva Cooper Basin Western Flank Gippsland and Otway Basins Sales of ~7- 8 PJ pa
Slide 22: South-east Australia gas supply costs in 2020
South-east Australia1 gas supply costs in 2020* Cooper Energy projects are cost competitive for south-east Australia 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 14
Slide 23: Sole gas marketing
Sole gas marketing Gas contracts in place support financing, with upside retained For personal use only • Take or pay contracts support financing: 20 PJ pa1 (55 TJ/day) with blue chip Sole gas production: contracted and uncontracted customers: PJ pa – based on current onshore plant capacity2 – AGL:
Slide 24: Reserves and Contingent Resources
Reserves and Contingent Resources Proved Proved & Probable Proved, Probable & Possible Reserves* (1P) (2P) (3P) For personal use only Cooper1 Otway2 Total Cooper1 Otway2 Total Cooper1 Otway2 Total Developed Sales Gas PJ 0.0 4.8 4.8 0.0 15.2 15.2 0.0 29.3 29.3 Oil + Condensate MMbbl 0.5 0.0 0.5 0.9 0
Slide 25: Profile of contracted and uncontracted gas by project (PJ)
Profile of contracted and uncontracted gas by project (PJ) Existing assets & projects offer growth over 6 years before exploration opportunities considered For personal use only Gas production profile by project contracted & uncontracted PJ pa Manta 25 25 25 18 Manta uncontracted 10 Sole 4 4 4 10 7
Slide 26: Sole gas project: the gas field
Sole gas project: the gas field Well defined structure and good reservoir quality For personal use only Discovery • Sole field discovered by Shell and has been appraised by two wells: − Sole-1 drilled by Shell in 1973 on the flank of the field intersected 16 m of net gas pay in the Palaeocene Kingfi
Slide 27: Manta gas field
Manta gas field Contingent resource plus significant deeper exploration potential For personal use only Geological setting - a structural three-way dip, one-way fault closure against a NE-SW trending fault - Manta-1, exploration well drilled in 1984, and Manta-2A, production well drilled in 2006 - G
Slide 28: Senior management
Senior management For personal use only Managing Director General Manager, Development Company Secretary & General Manager, Commercial David Maxwell Duncan Clegg Legal Counsel & Business Development Alison Evans Eddy Glavas David Maxwell has over 30 years’ Duncan Clegg has over 35 years’ experience
Slide 29: Notes on calculation of Reserves and Resources
Notes on calculation of Reserves and Resources Notes on Calculation of Reserves and Contingent Resources The approach for all reserve and resource calculations is consistent with the definitions and guidelines in the Society of Petroleum Engineers (SPE) 2007 Petroleum Resources Management System (PR
Slide 30: Abbreviations
Abbreviations $, A$ Australian dollars unless specified otherwise For personal use only Bbl barrels of oil boe barrel of oil equivalent bopd barrel of oil per day EBITDA earnings before interest, tax, depreciation and amortisation FEED Front end engineering and design kbbls thousand barrels LTIFR Lo