Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — Investor Presentation (September 2014)
39 slides from Amplitude Energy's investor presentation, Sep 30, 2014
Slide 1: Bungaloo-1 Otway Basin Investor Pack September 2014
For personal use only Bungaloo-1 Otway Basin Investor Pack September 2014
Slide 2: Important Notice – Disclaimer
Important Notice – Disclaimer 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 individual investment o
Slide 3: Cooper Energy – key features
Cooper Energy – key features For personal use only Oil production of 500 kbbls+ pa from the Cooper Basin and Indonesia with high margins and cash returns Gas resources and acreage around which building a multi-basin competitive gas portfolio for eastern Australia underpinned by a clear commercial ma
Slide 4: Company snapshot
Company snapshot Production, balance sheet and share register For personal use only Key figures COE share price Year to 25 September Share price range, 12 months to 25 Sep $0.35 - $0.585 $ 0.60 Shares on issue 329.2 mill 0.55 Market capitalisation1 ~$150 mill 0.50 Cash & investments2 $75.1 mill 0.45
Slide 5: East Coast domestic gas outlook
East Coast domestic gas outlook Growing gap between contracted supply and anticipated demand For personal use only PJ 800 • COE strategy initiated in 2012 700 Forecast east cost domestic demand Contracted supply from: • Built market understanding; buyer 600 relationships; cost curve positions; and S
Slide 6: Business model and focus
Business model and focus Focus on returns & care through disciplined application of resources and core skills For personal use only Total Shareholder Return and Health Safety Environment Community Strategy • High margin oil • Fundamentals focus: market, technical, cost & commercial • Gas portfolio •
Slide 7: What are we building ....
What are we building …. Applying our technical and financial resources to build a significant mid-cap oil and gas leader For personal use only Here and now The 3 - 5 year vision • Oil production ~ 0.5 MMbbls+ • Production focus- Cooper Basin • Oil and gas production circa 4 • Cash and financial asse
Slide 8: FY14 results overview
FY14 results overview Cooper Energy’s strongest annual results yet For personal use only Financial • Revenue of $72.3 million, up 35% • Net profit after tax $22.0 million up from $1.3 million • Underlying net profit after tax of $25.3 million, up from $ 12.7 million • Cash and investments of $75.1 m
Slide 9: Key financial results
Key financial results Increased production and higher oil prices drove record earnings For personal use only $ million unless otherwise indicated FY 14 FY13 Production MMbbl 0.59 0.49 ▲ 20% Sales volume MMbbl 0.58 0.48 ▲ 21% Oil price average AUD$/bbl 124.08 112.31 ▲ 10% Sales revenue 72.3 53.4 ▲ 35
Slide 10: Safety
Safety Significantly improved and on-target whilst substantially increasing hours worked For personal use only 12 month rolling Lost Time Injury Frequency Rate • FY14 LTIFR of 0.8 from 1.75 at June 13 APPEA and Cooper Energy • Hours worked increased 148% 2.5 − increased from 0.48 to 1.19 million hou
Slide 11: Business elements
Business elements Strategy for growth involves 3 areas, underpinned by financial and technical resources For personal use only Strong oil business Developing gas business Indonesia growth Cooper Basin Western Flank, Indonesia Gippsland Basin, Otway Basin Oil and gas, South Sumatra Basin • Oil produc
Slide 12: Strong oil business
Strong oil business Production of circa half a million barrels per annum with high margin and cash flow For personal use only Solid production base Low cost production Reserves 0.7 0.6 2.5 0.5 0.59 2.0 Netback 1 0.52 0.4 0.49 0.50 Royalties 1 0.41 to 1.5 0.3 0.56 Transportation 1.0 0.2 Production 10
Slide 13: Strong oil business: Cooper Basin PEL 92 & 93
Strong oil business: Cooper Basin PEL 92 & 93 Prime acreage on prolific western flank of Cooper Basin For personal use only • Oil production and exploration - current approximately 1,250 bopd (net) • Exploration and development continues to add reserves - in-field development in PEL 92 - new opportu
Slide 14: Cooper Basin northern permits: PEL 90, 100 & 110
Cooper Basin northern permits: PEL 90, 100 & 110 Drilling on 3D seismic in lightly explored acreage in northern Cooper Basin For personal use only • 1,169 km2 in northern SA Cooper Basin • Lightly explored region with extensive Dundinna 3D seismic survey 577 km2 • Processing to be completed mid 2014
Slide 15: Developing gas business
Developing gas business Building a portfolio of gas production assets around the fundamentals of cost and market For personal use only Market • Market-driven approach • Building customer relationships • Pipeline transport expertise Cooper Basin • Existing source of supply • Extensive infrastructure
Slide 16: Otway Basin
Otway Basin Increased acreage positon and prospectivity for deep conventional and shale gas plays For personal use only • Expanded acreage coverage of Penola Trough – traded 35% PEL 495 for 30% PEL 494 & PRL 32 – zero net cost to Cooper Energy • Jolly-1 and Bungaloo-1 deep wells – confirmed location
Slide 17: Penola Trough deep well drilling 2014 results
Penola Trough deep well drilling 2014 results Conventional gas play identified and shale gas opportunity reinforced For personal use only Jolly-1 Formation • Drilled to a total depth 4,026 metres • 78 metres of cores recovered in the Lower Sawpit and Casterton Upper Sawpit Sandstone Formations • 340
Slide 18: BMG and Gippsland Basin
BMG and Gippsland Basin Resources secured; subsurface, facilities and commercial activity commenced For personal use only • Acquired 65% interest and operatorship at low cost – $1 million initial payment and – $5 million conditional on hydrocarbon production • Sub-sea infrastructure in place from pr
Slide 19: BMG
BMG Business case inputs being prepared For personal use only BMG Gas and liquids resource Reserves determination - existing - 3rd party gas - exploration Optimum Funding development concept Business case Basker & Manta Commercialisation Contingent Resource1 1C (P90) 2C (P50) 3C (P10) (100% JV) Offt
Slide 20: Indonesia: South Sumatra
Indonesia: South Sumatra Proven oil and gas province with high value-low risk opportunities For personal use only • Prolific hydrocarbon region • 285 discoveries - 3 billion bbl oil & 25 TCF gas • Not rigorously explored with 3D • Emerging Coal Bed Methane (CBM) & shale plays • US$8 - 10/GJ gas pric
Slide 21: Indonesia: South Sumatra Basin
Indonesia: South Sumatra Basin Acreage offers low risk value-add opportunities and company-maker targets For personal use only Sukananti KSO (COE 55%) • Currently ~370 bopd (100% basis) • Multiple low risk development opportunities • 2-3 development wells planned for 2015 • Targeting production grow
Slide 22: Tunisia
Tunisia Shareholder value driven monetisation of extensive portfolio For personal use only • 3 permits covering 12,600 km2 • Hammamet West oil discovery - gross contingent resource estimated to be 12.6 MMboe (1C) to 110.4 MMboe (3C)1 - oil development opportunity • Multiple prospects Divestment plan
Slide 23: FY15 exploration program
FY15 exploration program 10 exploration wells; broader exposure; 30% of budget to Gippsland and Otway For personal use only Exploration wells FY15 Exploration expenditure $ million by region 1 Otway Tunisia Cooper Basin 5 Indonesia 2 Cooper Basin 100,110 Indonesia 3 4 Cooper Basin PEL 92 Gippsland O
Slide 24: Major exploration and development activities FY15
Major exploration and development activities FY15 Largest program yet For personal use only Location License Operator Dec Qtr March Qtr June Qtr Carryover wells and reprocessing in H1. 4 PEL 92 Beach Reprocessing exploration wells, 3 development wells in H2 Cooper PEL 90, 100,110 Senex 5 exploration
Slide 25: FY15 guidance
FY15 guidance Production guidance range exceeds all years prior to FY14 Reduced capex and increased exploration well exposure For personal use only FY15 production guidance FY15 capital expenditure outlook MMbbl $ million approximate Expenditure Wells # 0.59 Total Exp. Dev. Exp Dev 0.52 0.49 0.50 –
Slide 26: Near term outlook highlights
Near term outlook highlights Value catalysts in the next 12 months For personal use only Oil Exploration • Cooper Basin Western Flank: drilling 4 wells in PEL 92 on new 3D data • Cooper Basin Northern permits: drilling 5 wells in lightly explored permits on 3D • Indonesia: exploration drilling in So
Slide 27: Medium term look-ahead
Medium term look-ahead Sustained growth through discipline and focus where we add the greatest value For personal use only Australian oil production Gas projects for supply from 2018 Indonesia: increased value and increased for base load earnings • Gippsland Basin contribution and cash flow • Produc
Slide 28: Appendices
For personal use only Appendices
Slide 29: Reserves and resources
Reserves and resources1 Reserves marginally down on record production and limited exploration drilling Contingent resources up 5 times on BMG and Tunisia For personal use only Proved & Probable (2P) reserves Contingent Resources (2C) MMbbl MMboe 2.16 0.59 17.0 0.45 2.01 Tunisia 18.0 Gippsland Basin
Slide 30: Notes on calculation of Reserves and Resources
Notes on calculation of Reserves and Resources For personal use only Reserves Reserves include Cooper Energy’s share of future crude fuel usage in the Cooper Basin. The estimated fuel usage is; 1P 0.02 MMbbl, 2P 0.05 MMbbl and 3P 0.08 MMbbl. There is no produced crude oil used for fuel in Indonesia.
Slide 31: PEL 93 & PPL 207
PEL 93 & PPL 207 Long term production, new potential identified in Murta and Patchawarra For personal use only • Worrior oil field discovered 2003, production commenced November 2003 • 6 exploration wells drilled, 2 discoveries (33%) • Reserves primarily in McKinlay and Birkhead sandstones – high pr
Slide 32: Penola Trough subsurface schematic
Penola Trough subsurface schematic For personal use only South Bungaloo-1 Sawpit-2 North Salamander-1 Jolly-1 Sawpit-1 Dilwyn Formation 500 metres Aquifer Eumeralla Formation 2000 metres Laira Formation 4000 metres Pretty Hill Formation Subsurface fault Casterton Shale Casterton Shale Basement Not t
Slide 33: Indonesia: Sukananti KSO
Indonesia: Sukananti KSO Production growth achieved, further gains targeted through workover, development and appraisal For personal use only • Production steadily increased through program of workover initiatives • FY14 production of 55,000 barrels (COE share), up from 23,000 barrels. • Further gro
Slide 34: Indonesia: Sumbagsel PSC
Indonesia: Sumbagsel PSC Exploration acreage in prolific South Sumatra Basin For personal use only • COE awarded permit April 2011 for a 6 year initial exploration term • Acquired 257 km of 2D seismic • Key play types are structural and carbonate reefs • Typical prospect sizes 5-10 MMbbl oil • CBM p
Slide 35: Indonesia: Merangin III PSC
Indonesia: Merangin III PSC Exploration acreage adjacent to substantial producing gas and oil fields For personal use only • COE awarded permit May 2013 for a 6 year exploration initial term • Key play types are structural and carbonate reefs • Shallow oil prospect potential 5-10MMbbl • Deep gas pro
Slide 36: Senior management
Senior management For personal use only David P. Maxwell Hector M. Gordon Managing Director Executive Director David Maxwell joined Cooper Energy in September 2011, with over 25 Hector Gordon is a highly experienced geologist with over 35 years’ experience in years’ experience as a senior executive
Slide 37: Abbreviations
Abbreviations For personal use only bbls barrels of oil boe barrel of oil equivalent bopd barrel of oil per day EBITDA earnings before interest, tax, depreciation and amortisation kbbls thousand barrels LTIFR Lost Time Injury Frequency Rate. Lost Time Incidents per million man hours worked MMbbl mil
Slide 38: Contact details
Contact details For personal use only Website: cooperenergy.com.au Investor relations: Don Murchland +61 439 300932 donm@cooperenergy.com.au Address: Cooper Energy Limited Level 10 Waymouth St Adelaide SA 5000 + 61 8 8100 4900 Investor Pack September 2014 38
Slide 39: For personal use only
For personal use only
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