Australis Oil & Gas Ltd. · ASX:ATS
Australis Oil & Gas — Shareholder Meeting (May 2017)
34 slides from Australis Oil & Gas's shareholder meeting presentation, May 4, 2017
Slide 1: Company Presentation Material
For Immediate Release ASX Announcement 4 May 2017 Company Presentation Material Please find attached to this document a copy of the presentation to be used by Australis Oil & Gas Limited today at its Annual General Meeting in Perth, Australia. For further information, please contact: Julie Foster Co
Slide 2: AGM Presentation
Australis Oil & Gas Limited 4 May 2017 AGM Presentation Implementation of corporate strategy has generated a platform for significant growth
Slide 3: Important Notice and Disclaimer
Important Notice and Disclaimer This presentation has been prepared by Australis Oil & Gas Limited ACN 609 262 937 (ASX : ATS) (Australis). Summary of information: This presentation contains general and background information about Australis’ activities current as at the date of the presentation and
Slide 4: Company evolution over 9 months
Company evolution over 9 months IPO – 25 July 2016 AGM – 4 May 2017 Tuscaloosa Marine Shale 139,000 net acres in core of which 16,500 net acres in core 22,000 net acres HBP Average net production March 2017 – No Production 1,700 bbls/day from 32 Operated wells. Operating breakeven oil price US$15/bb
Slide 5: Corporate History
Corporate History Australis formed in August 2014 following sale of Aurora Oil & Gas – it’s the same team Strategy set during oil price fall:- • Secure a future inventory of oil and drilling locations at compelling prices and economics • Retain control of capital expenditure requirements • Maint
Slide 6: The TMS delivers on strategy
The TMS delivers on strategy The Tuscaloosa Marine Shale (TMS) represents a very significant opportunity for Australis, arising principally due to timing and quirks of history The two acquisitions made and ongoing lease work has created a low cost entry whilst maintaining strict technical discip
Slide 7: TMS Location and early history
TMS Location and early history Unique circumstances create opportunity TMS depositional area of 14 million acres Same age as Eagle Ford. Cretaceous shallow marine environment, more clastic than carbonate Initially operators, acquired large positions speculatively on the back of then strong oil
Slide 8: Relative Production Performance
Relative Production Performance Australis TMS Type Curve 1 compared to other plays TMS Core productivity is strong Production for the first 180 days from participants in the Eagle Ford4 and the Midland5 basins (green) compared to the first 180 days for the Australis TMS Type Curve 1 (blue) Austr
Slide 9: Australis operated wells – drilling times
Australis operated wells – drilling times TMS drilling times reduced as operational challenges were resolved All wells that Australis now operates (32). Red wells those used in Mississippi TMS Type Curve 27 Analysis based from rig mobilization to rig release First 10 wells average 72 days La
Slide 10: Capital cost profile of early TMS wells
Capital cost profile of early TMS wells Well costs improved significantly over time Graph below plots US$/ft for 51 TMS wells drilled between mid 2011 and end of 20148 Australis conservative well cost estimate – US$10.8MM for a single well9 Other play participants quoted US$8.7MM10 No TMS we
Slide 11: Australis TMS land position
Australis TMS land position Dominant and strategic land position within the TMS Core Australis Oil & Gas TMS Acreage For shale oil success you must have oil in place and productivity! The TMS Core has both! AGM Presentation - 4 May 2017 10
Slide 12: Australis TMS – Land Summary
Australis TMS – Land Summary In Unconventional acreage quality and size drives the potential for significant growth The following table summarises the land position that Australis holds Description TMS Core TMS Operated position HBP net acres 22,000* Undeveloped – Permitted net acreage 40,000* Undev
Slide 13: Independent Reserve & Resource Assessment
Independent Reserve & Resource Assessment Significant oil resource Ryder Scott Company have prepared a report with an effective date 1 February 20171 Assessed existing position and acquisition acreage Resource estimates contingent on development only and are net of royalty obligations Ryder Sc
Slide 14: Australis TMS Type Curve
Australis TMS Type Curve Conservative approach to anticipated well performance Type curves generated by history matching average well performance, no assumed improvement In Louisiana (Type Curve 1) averaged 11 closest TMS Modern Offset Wells17 In Mississippi (Type Curve 2) averaged 15 most rec
Slide 15: TMS Productivity, Economics & Sensitivities
TMS Productivity, Economics & Sensitivities TMS Core acreage is economic at current oil prices The TMS Core is economic at current oil prices and current single well cost estimates (US$10-11 million) without assumed improvements, batch drilling or economies that come with scale Significant value
Slide 16: Forward Program
Forward Program Encana acquisition closed 13 April 2017 Activity Phased transition arrangements with Encana run to end July 2017 Status Information transfer complete by mid May 2017 Australis holds over 140,000 net acres in core and attributes value to ~80,000 acres at this stage Initial f
Slide 17: Budget & Estimated Cash Flow for 2017 & 2018
Budget & Estimated Cash Flow for 2017 & 2018 Apr - Dec 2018 2017 US$MMD US$MMD Cash – end Q1 (31 March) 11 20 Financing – A$100MM equity raising (net of costs of transaction) 71 Acquisition cost (excluding pre paid deposit) (60) Estimated net operating cash flow from Asset production A 16 19 Capital
Slide 18: Portuguese Exploration Assets
Portuguese Exploration Assets Large, low cost onshore acreage with minimal work commitments AGM Presentation - 4 May 2017
Slide 19: Australis Concessions - Portugal
Australis Concessions - Portugal Large onshore acreage position Two onshore concessions (Batalha and Pombal) - 620,000 acres or 2,510 km2 NSAI assessed 458 bcf 2C resource (net)2 Limited exploration to date on and offshore No oil or gas production in Portugal, all imported Total well count
Slide 20: Australis Portuguese Concessions
Australis Portuguese Concessions Terms Awarded two onshore concessions (Batalha and Pombal)13 - 620,000 acres or 2,510 km2 Covers a large section of the Lusitanian Basin to the north of Lisbon Exclusive exploration period of 8 years from October 2015 with ability to extend for a further 2 year
Slide 21: Portuguese Potential Resource estimates - NSAI
Portuguese Potential Resource estimates - NSAI as at 31 December 20162,13 Net Contingent ResourceA – conventional Oil (MMbbl) Gas (Bcf) Oil Equivalent (MMboe)C Low (1C) 0.0 217.4 36.2 Best (2C) 0.0 458.5 76.4 High (3C) 0.0 817.7 136.3 Net Prospective ResourceB – conventional and unconventional - ris
Slide 22: Appendices and Additional Slides
Appendices and Additional Slides AGM Presentation - 4 May 2017 21
Slide 23: Louisiana TMS Type Curve 1 data
Louisiana TMS Type Curve 1 data The monthly oil production data for well data for the TMS Modern Offset Wells is summarised in the table below Well Name Denkmann Longleaf 29H Longleaf 29H Mathis 29- Mathis 29- Lawson 25- Spears 31-6H C. H. Lewis Verberne Blades 33 H Williams Average Cumulative 33-28
Slide 24: Australis Type Curves in the TMS
Australis Type Curves in the TMS Single Well Louisiana TMS Type Curve 1 ATS type curve history matched to actual production from TMS Modern Offset Wells6 Louisiana Type Curve 1 – Assumptions6 Cumulative Oil Production Oil EUR – 499 Mbbls Modern Offset Wells v Australis Type Curve 1 - Louisiana G
Slide 25: Louisiana TMS Type Curve
Louisiana TMS Type Curve 16 (US$) Base Assumptions: ATS TC1 - Louisiana Production Forecast 30,000 600,000 Future Well Type Curve Target Lower TMS Louisiana 25,000 500,000 EUR Gas 0.13 bcf Oil/Condensate 499 mbbl 20,000 400,000 Cum Production (boe) NGLs 17 mbbl Production (bbl/mscf/boe) EUR/well 538
Slide 26: Mississippi TMS Type Curve 2 data
Mississippi TMS Type Curve 2 data The monthly oil production data for the most recent 15 Encana operated modern offset Mississippi wells is tabulated below * 5 wells drilled by Encana with most optimised completion design Lewis 7- Pintard Lyons 35H Pintard Longleaf Longleaf Mathis Mathis Lawson Ash
Slide 27: Australis Type Curves in the TMS
Australis Type Curves in the TMS Single Well TMS Mississippi Type Curve 2 ATS type curve history matched to production from the most recent 15 Mississippi ECA wells7 Mississippi Type Curve 2 - Assumptions7 Cumulative Oil Production Oil EUR – 545 Mbbls Encana Modern Offset Wells v Australis Type Cu
Slide 28: Mississippi TMS Type Curve
Mississippi TMS Type Curve 27 (US$) Production Forecast Base Assumptions: ATS TC2 - Mississippi 30,000 600,000 Future Well Type Curve Target Lower TMS Mississippi 25,000 500,000 EUR Gas 0.14 bcf Oil/Condensate 545 mbbl 20,000 400,000 Cum Production (boe) NGLs 18 mbbl Production (bbl/mscf/boe) EUR/we
Slide 29: Capital Structure
Capital Structure Shares Options15 Ownership % Shares and Options (millions) (millions) Pre options Post Options Directors & Management 98.3 86.4 12.7% 21.0% Existing Shareholders 243.3 16.9 31.3% 29.6% Share Placement 434.8 - 56.0% 49.4% Total 776.4 103.3 100% 100% Directors & Management Contri
Slide 30: Option Terms Summary
Option Terms Summary Cash payable on Grant date Exercise Price (A$) Vesting Expiry Number exercise (A$) Directors, Executives & Management 13 Nov 2015 $0.25 Vested 31 Dec 2020 19,675,000 $4,918,750 13 Nov 2015 $0.30 (Series A) Vested 31 Dec 2020 27,775,000 $8,332,500 28 Apr 2016 $0.30 (Series B) Ves
Slide 31: Footnotes
Footnotes 1. All estimates and risk factors taken from Ryder Scott, report prepared as at 1 February 2017 and generated for the Australis concessions to SPE standards. See ASX announcement titled “US Shale Acquisition and A$100 Million Placement’ dated 28 February 2017. Australis is not aware of any
Slide 32: Footnotes - continued
Footnotes - continued 13. Australis owns 100% of each Concession subject to an option over a 3% interest in each of the two concessions provided to a consultant. The net estimates provided by NSAI are prepared on the assumption that this option has been exercised. The net estimates provided by NSAI
Slide 33: 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 Abbreviation Description TMS Core The Australis designated productive core are
Slide 34: Glossary - continued
Glossary - continued Abbreviation Description WTI West Texas Intermediate Oil Benchmark Price LLS Louisiana Light Sweet Oil Benchmark Price D, C & T Drill, Complete and Tie-in well cost estimate 2D / 3D 2 dimensional and 3 dimensional seismic surveys Opex Operating Expenditure PDP Proved Developed P