Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — Euroz Securities' Rottnest Island Institutional Conference 2014
22 slides from Amplitude Energy's conference presentation, Mar 4, 2014
Slide 1: Euroz Securities' Rottnest Island Institutional Conference
For personal use only David Maxwell, Managing Director, Cooper Energy Limited Euroz Securities’ Rottnest Island Institutional Conference 4 March 2014
Slide 2: Important information and 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 objectives or the financial sit
Slide 3: Key figures: well resourced with strong balance sheet
For personal use only Key figures COE share price $ rolling 12 month Share price range, 12 months $0.355 - $0.585 Shares on issue 329.0 mill Market capitalisation1 $174.5 mill Cash & investments2 $65.7 mill Debt Nil Production MMbbl /year 0.54 – 0.58 Share register Top 20 holders~64% Funds/Corp ~67%
Slide 4: Investment highlights
For personal use only Oil production from Cooper Basin Western Flank High margin, strong cash 500,000+ barrels pa Cooper Basin oil with netback of A$97/bbl1 after costs generating operations Fifth largest Australian onshore oil producer Cash and financial assets of $65.7 million2 Strong bala
Slide 5: Leveraging strengths for TSR
For personal use only Total Shareholder Return and Health Safety Environment Community Strategy • High margin oil • Fundamentals focus: market, technical, cost & commercial • Build gas supply & demand portfolio • Leverage and grow strengths People Funding Assets • Extensive knowledge • Strong balanc
Slide 6: Increased margin, profit and cash flow
For personal use only $ million unless otherwise indicated H1 14 H1 13 Production MMbbl 0.30 0.21 ▲ + 41% Sales volume MMbbl 0.29 0.21 ▲ + 37% Sales revenue 37.0 23.4 ▲ + 58% Net profit after tax 13.6 4.6 ▲ + 198 % Cash flow from operations 24.2 2.1 ▲ +1,034% Total cash and investments 1 65.7 68.12
Slide 7: Record output, Cooper and Indonesia both up
For personal use only Half year production Half year production by region kbbl six months to December kbbl six months to December 300 29 267 217 225 10 213 Indonesia 271 Cooper Basin 203 2009 2010 2011 2012 2013 2012 2013 • Highest first half production yet for Cooper Energy • Production growth from
Slide 8: Trending at upper end of guidance
For personal use only • FY14 production forecast to increase by 10% - 18% 0.58 on FY13 to 0.52 0.54 0.49 • Increased output from Cooper Basin and Indonesia 0.41 • Guidance for production of 0.54 – 0.58 MMbbl 0.30 • First half production of 0.30 MMbbl FY11 FY12 FY13 FY14G H1 14 Trending at upper end
Slide 9: Basin focussed strategy
For personal use only Cooper Basin Market driven Basin focussed strategy Hammamet West resource Production: >0.5 MMbbl/a Cooper Basin Production growth Large prospective acreage (12,600 km2) High margin oil production Otway Basin Low risk value-add Attractive fiscal terms Sustained exploration succe
Slide 10: Valuable production + high success rates
For personal use only • Oil production and exploration - current approximately 1,500 bopd (net) • Exploration and development continues to add reserves - exploration and development replacing production - 2 new field discoveries from 6 wells in FY13 - Cooper Energy Cooper Basin cumulative exploratio
Slide 11: Cooper Basin first half production and netback
For personal use only kbbl First half • Record half year production from Cooper Basin, up 34% • Oil price of A$128/bbl (FY14 first half average) • Netback of A$97/bbl after costs from FY14 first half 271 203 • Completion of successful 4 well development program in PEL 92 • Worrior 8: identified new
Slide 12: Developing portfolio built around markets
For personal use only Focus on fundamentals • cost curve and location determines development sequence • technical and commercial robustness Cooper Basin • gas potential Otway Basin • conventional and unconventional • close to infrastructure and markets Gippsland Basin • gas opportunities • close to
Slide 13: Otway Basin: strong fundamentals and valuable
For personal use only • Strong position across Penola Trough • Proven basin for conventional plays • Close to markets and infrastructure • Jurassic source rocks are gas prone with liquids potential • 2 deep (approx 4,000m) wells drilled from January 2014 assessing unconventional plays in the Castert
Slide 14: Conventional gas close to market
For personal use only • 22.9% interest in Bass Strait Oil Company (BAS) • BAS assets include offshore Gippsland Basin permits Vic/P41,42, 68 - gas exploration potential along northern margin - sizeable prospects • Range of development and market opportunities • Conventional • Proximity to existing i
Slide 15: Prolific oil and gas basin
For personal use only Sukananti KSO (COE 55%) • currently ~300 bopd (100% basis) • multiple low risk opportunities with existing available infrastructure • short pay-back periods • contractor share: oil 15%; gas 20% (after tax) Sumbagsel PSC (COE 100%) • shallow oil targets (1-5 MMbbls) • CSG potent
Slide 16: Production, exploration and development
For personal use only Sukananti KSO • first half production up from 54 bopd to 158 bopd (COE share) due to successful workover initiative • 2 workovers planned for second half FY14 • development/appraisal drilling planned from mid 2014 • targeting further production growth Sumbagsel PSC • identifyin
Slide 17: Strategic exit - focussing core skills
For personal use only • 3 contiguous permits, 12,600 km2 – equivalent in size to the South Australian Cooper Basin • Hammamet West oil discovery, a near term development opportunity • Multiple prospects and emerging fractured carbonate play potential proved by Hammamet West-3 ST-1 • Nearby producing
Slide 18: Potentially significant resource
For personal use only • Horizontal well confirmed pre-drill fracture reservoir model • Production test unable to be completed • Planning for ST-2 in second half CY14 to complete production test • Independent contingent resource review being prepared mSS- metres subsea Hammamet West structure • maxim
Slide 19: Upcoming activities by area
For personal use only Location License Operator March Qtr June Qtr PEL 92 Beach Energy 3 exploration wells Cooper Basin PEL 90, 100,110 Senex 3D Processing Dundinna 3D processing PPL 207 Senex Worrior-10 (Patchawarra appraisal well) PEL 494, PRL 32 Beach Energy Jolly-1 and Bungaloo-1, deep unconvent
Slide 20: Value uplift anticipated as plans implemented
For personal use only Australian oil: maintain and grow strong core business • ongoing Cooper Basin western flank production • low cost/high margin • exploration and development to support growth and value add Australian gas: build near term supply for existing and long term gas market opportunities
Slide 21: Summary and upcoming catalysts
• Cooper Energy will continue to be fundamentals-driven: For personal use only - technical and commercial + care - capital-prudent management • Record production and financial results for first half FY14 • Full year production guidance re-affirmed • Strong balance sheet retained with $65.7 million c
Slide 22: For personal use only
For personal use only
Cooper Energy — Euroz Securities' Rottnest Island Institutional Conference 2014 on 6ix