Otto Energy Limited · ASX:OEL
Otto Energy — Euroz Institutional Investor Presentation March 2020
24 slides from Otto Energy's conference presentation, March 2020
Slide 1: Euroz Institutional Investor Presentation
Euroz Institutional Investor Presentation March 2020 ASX: OEL 1
Slide 2: Disclaimer
Disclaimer This presentation is provided for information purposes only and is not a disclosure document as defined under the Corporations Act 2001 (Cth) This presentation does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase, sale or issue of any secur
Slide 3: FY20 Outlook
FY20 Outlook The impact of OPEC+ and COVID-19 on oil markets – the oil market has weathered systemic change before Recent Events Crude Oil (US/bbl) • Supply side disruption amongst OPEC + reverses over 160.00 2.1 mmbbl/day in cuts 140.00 • Supply side war emerges amongst key market participants 120.
Slide 4: FY20 Outlook
FY20 Outlook A disciplined approach to investing in oil and gas projects and successfully growing shareholder value Operating Partner Otto’s strategy • Hilcorp Energy Byron Energy Current portfolio of production assets to achieve Talos Energy strategic goal of 5,000 boepd by end 2020 Otto Energy • D
Slide 5: ASX Listed Peer Group
ASX Listed Peer Group Exposure to production and cashflows is limited in small cap oil and gas companies on ASX 1 Key Changes since 2018 • AWE Ltd Take-over by Mitsui • Sino Gas Take-over by Lone Star • Freedom Oil and Gas In liquidation • Sundance Delisted from the ASX and moved to NASDAQ • Elk Pet
Slide 6: Otto Energy - Investment Exposure to the Gulf of Mexico
Otto Energy - Investment Exposure to the Gulf of Mexico ASX-listed, US focused, diversified conventional oil and gas production and exploration business Otto Production (2P Forecast) Otto’s activity 7 • Green #2 production commenced in February 2020 6 • SM71 F5 development well currently drilling –
Slide 7: Otto Energy – Reserves at SM 71, Lightning and GC in the Gulf of Mexico
Otto Energy – Reserves at SM 71, Lightning and GC 21 in the Gulf of Mexico Otto reserves have NPV10 value of US$ 213 MM at the 2P level net to Otto delivered from the active drilling program 14,000 300,000 12,000 250,000 10,000 200,000 NPV-10 ('000) 8,000 MBoe 150,000 6,000 100,000 4,000 50,000 2,00
Slide 8: Production - South Marsh Island 71, offshore Gulf of Mexico
Production - South Marsh Island 71, offshore Gulf of Mexico Oil and gas revenue provides strong cashflow foundation for growth South Marsh Island 71 Joint Venture Otto Energy 50.0% Byron Energy (operator) 50.0% Fiscal Terms Federal Royalty 18.75% Held by production licence Location Offshore Federal
Slide 9: Production - South Marsh Island 71, offshore Gulf of Mexico
Production - South Marsh Island 71, offshore Gulf of Mexico Drilling of the F5 well is underway OTTO ENERGY | INVESTOR PRESENTATION – MARCH 2020 | ASX : OEL 9
Slide 10: Production - Lightning, onshore Texas Gulf Coast
Production - Lightning, onshore Texas Gulf Coast First discovery under Gulf Coast Drilling program – 2nd development well in progress to increase production Lightning Discovery Joint Venture Otto Energy 37.5% Hilcorp Energy (operator) 62.5% Fiscal Terms Landowner Royalty 24.9% Held by production lic
Slide 11: Discovery – Green Canyon 21 “Bulleit”, offshore Gulf of Mexico
Discovery – Green Canyon 21 “Bulleit”, offshore Gulf of Mexico Two target discovery with Talos Energy – wellbore suspended for completion in mid CY20 Green Canyon 21 “Bulleit” Prospect Joint Venture Otto Energy 16.67% ~16 km tie-back Talos Energy (operator) 50.00% GC21 - Bulleit Prospect Enven Energ
Slide 12: Pipeline of Opportunities
Pipeline of Opportunities Otto has assembled an exciting pipeline of upcoming activities as a result of its non-operating partnership strategy CY 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2020 SM 71 Low-cost production SM71 F-5 Lightning Low-cost production Green #2 Green Canyon 21 “Bulleit” Successfully appr
Slide 13: Appendix
4 a RARE) Appendix
Slide 14: Otto Energy – Reserves at SM 71, Lightning and GC in the Gulf of Mexico
Otto Energy – Reserves at SM 71, Lightning and GC 21 in the Gulf of Mexico Otto reserves have NPV10 value of US$ 213 m at the 2P level net to Otto delivered from the active drilling program C Total Gross (100%) Otto Net a NPV 10 US$ MM* Gas Gas O Oil (Mbbl) (MMscf) MBoe Oil (Mbbl) (MMscf) MBoe t Ott
Slide 15: Corporate Snapshot
Corporate Snapshot (ASX:OEL) CAPITAL STRUCTURE FUNDING POSITION SHAREHOLDERS Fully paid ordinary shares 2.460b Cash (31 Dec 2019) US$25.7m Perennial Value Management 14.9% Performance Rights 36.6m Molton Holdings 12.4% Debt - Commitment $55m Unlisted Options 42.5m - Currently Drawn (31 Dec 2019) $22
Slide 16: Otto Energy Gulf of Mexico Area Key Projects
Otto Energy Gulf of Mexico Area Key Projects1 Strong cashflow base to fund growth from oil and gas sales at SM 71 and Lightning Metric SM 71 Lightning Gulf Coast Green Canyon 21 VR 232 Type JV JV JV JV JV 37.5% WI 100% WI Ownership Structure 50% WI 37.5% WI 16.67% WI (50% of Cost2) NRI 40.625% 28.50
Slide 17: Board of Directors
Board of Directors Ian Boserio John Jetter Paul Senycia Non-Executive Chairman Non-Executive Director Non-Executive Director BSc (Hons) LLB, BEc INSEAD BSc (Hons), MAppSc Executive Technical Director of Pathfinder Former MD/CEO J.P. Morgan International oil & gas experience gained over 35 Energy Pty
Slide 18: Management Team
Management Team Matthew Allen Sergio Castro Philip Trajanovich Managing Director & CEO Chief Financial Officer Senior Commercial Manager BBus, FCA, FFin, GAICD Bbus, CPA, CFE B.Com (First Class Honours) Global exposure to the upstream oil and gas Global experience as a commercial manager working Ext
Slide 19: December Quarter FY20 Highlights
December Quarter FY20 Highlights Otto continues to build towards the strategic objective of 5,000 beopd by the end of CY 2020 • WI Share of hydrocarbon sales equate to 1912 boepd, a 27% decrease over prior Oil and Gas Sales quarter • WI share ~131,002 bbls oil, 238,092 Mscf gas, and 5,265 bbls NGLs
Slide 20: Glossary
Glossary Abbreviation Expanded Term Definition GoM Gulf of Mexico Million barrels of oil equivalent/ MMboe / mboe thousand Million standard cubic feet per day MMscfpd (gas) Bopd/boepd Barrels of oil (equivalent) per day TD Total Depth The depth of the bottom of the well MD Measured Depth The total l
Slide 21: Competent Persons and Cautionary Statements
Competent Persons and Cautionary Statements Competent Persons Statement The information in this report that relates to oil and gas reserves and resources at SM 71 was compiled by technical employees of independent consultants Collarini and Associates, under the supervision of Mr Mitch Reece BSc PE.
Slide 22: Competent Persons and Cautionary Statements
Competent Persons and Cautionary Statements Reserves cautionary statement Oil and gas reserves and resource estimates are expressions of judgment based on knowledge, experience and industry practice. Estimates that were valid when originally calculated may alter significantly when new information or
Slide 23: Reserves and Resources Reporting Notes
Reserves and Resources Reporting Notes Pricing Assumptions Oil price assumptions used in the independent report represent forward prices (CME Nymex) as at 28 June 2019. ASX Reserves and Resources Reporting Notes i. The reserves and prospective resources information in this document is effective as a
Slide 24: Address Contact Info Telephone
Address 32 Delhi Street West Perth WA 6005 Australia 1200 Smith Street Suite 1080 Houston TX 77002 United States of America Contact Info Email: info@ottoenergy.com Web: www.ottoenergy.com Telephone + 61 2 4017 1257 +1 713 893 8894 24
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