Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — Macquarie Mining and Energy Forum 2020
32 slides from Amplitude Energy's conference presentation, Jun 10, 2020
Slide 1: Macquarie Mining and Energy Forum
For personal use only Macquarie Mining and Energy Forum 10 June 2020 Presentation by David Maxwell Managing Director
Slide 2: Compliance statements and important information
Compliance statements and important information. This investor presentation (“Presentation”) is issued by Cooper Energy Limited ABN 93 096 170 295 (“Cooper Energy” or “the company”) ASX: COE. Summary information: This Presentation contains summary information about Cooper Energy and its activities a
Slide 3: Cooper Energy finds, develops and commercialises oil and gas
Cooper Energy finds, develops and commercialises oil and gas. For personal use only We do this with care and strive to provide attractive returns for our shareholders and good commercial outcomes for our customers. 3
Slide 4: Gas business model: core principles
Gas business model: core principles Portfolio gas business built to address gas supply opportunities foreseen in south-east Australia For personal use only Asset quality Gas contracts ✓ Competitive: ✓ Customer quality: blend of blue- among most competitive delivered chip utility and industrial custo
Slide 5: Operating assets and interests
Operating assets and interests Gas supply to south-east Australia from two hubs and some of the most competitive sources of supply For personal use only Cooper Basin Non-operated oil production Gippsland Otway Gas production & exploration Gas production & exploration • Sole gas field • Casino Henry
Slide 6: Gas reserves, resources and production
Gas reserves, resources and production Contracted and uncontracted 2P Reserves, development opportunities and production upside For personal use only Gas reserves & resources1 Gas production 2P Reserves and 2C Contingent Resource PJ Gas contract book by term TJ/day average for month PJ 90.0 Max. con
Slide 7: Sustainability & legacy
Sustainability & legacy Operate with care for people, communities and the environment For personal use only • Safety: - lost time injury frequency rate and total recordable frequency rate of 2.95 (vs industry rate 5.271) - single LTI in last 12 months • Environment and Climate: - zero reportable inc
Slide 8: Sole
Sole Plant commissioning ongoing. Offshore and reservoirs performing to plan. Supply gas to EGP at spot rates. For personal use only Current status and schedule • Supplying gas to customers at spot prices; total of 1.5 PJ supplied to date • Plant commissioning ongoing Sole gas supply to Eastern Gas
Slide 9: Funding
Funding Syndicated facility of senior bank debt For personal use only • Project completion under the facility expected after Orbost Gas Processing $ million 31 May 20 31 Dec 19 Plant performance test Cash 142.4 150.7 • Discussions ongoing on capital management and project completion under project fi
Slide 10: Projects and development options
Projects and development options Projects under development that can add value and increase gas production For personal use only Manta gas & liquids Appraise & develop • Drill Manta-3 and assess OP3D • Contingent Resource of 121 PJ 2 and 3 million Bring >100 PJ* gas to market barrels of liquids • Ad
Slide 11: Market outlook
For personal use only Market outlook Pipeline spooling, Crib Pt Sole offshore pipeline ready to be installed
Slide 12: Recent spot gas prices and LNG netback
Recent spot gas prices and LNG netback Led by LNG prices, CY20 spot prices have trended lower, improvement expected from July For personal use only ACCC1 LNG netback to Wallumbilla Vic. Average Daily Wholesale Gas Price (spot price)1 $/GJ Transport to Melbourne city gate adds by month by year $/GJ ~
Slide 13: Gas transportation charges to south-east Australian cities
Gas transportation charges to south-east Australian cities Pipeline tariffs reported by ACCC For personal use only • Transportation of gas from south-east Queensland to south- east Australia requires tariff: – Adelaide: ~ $1.60/GJ - $2.00/GJ – Sydney: ~ $1.65/GJ - $2.40/GJ Mmba - Adl SW Qld – Melbou
Slide 14: Longer term supply opportunity
Longer term supply opportunity Southern production in decline New developments required for total eastern balance For personal use only • Southern states production from existing & committed sources to shortfall • Shortfall in supply from developed 2P Reserves expected to emerge in eastern Australia
Slide 15: Gas market outlook: the AEMO view
Gas market outlook: the AEMO view For personal use only 15
Slide 16: Gas market outlook: drawing it together
Gas market outlook: drawing it together Current: soft spot prices and demand. For personal use only Approaching: tightening supply will require new gas developments, which will require economic prices to proceed What’s happening or expected Consequences 2020 - 2021 • LNG demand lower than expected S
Slide 17: Wrap-up
Wrap-up For personal use only 1. Gas sales from Sole have commenced. Production and cash generation have increased. 1.5 PJ of Sole gas delivered into the Eastern Gas Pipeline to date 2. Delay in Orbost Gas Processing Plant commissioning delays has delayed commencement of supply to term contracts. Ga
Slide 18: Q&A
For personal use only Q &A Ocean Monarch drilling Annie-1 Otway Basin
Slide 19: Appendices
For personal use only Appendices Otway coastline, Pt Fairy
Slide 20: Cooper Energy Snapshot
Cooper Energy Snapshot For personal use only Key statistics* Proved & Probable Reserves 52.7 MMboe Contingent Resources (2C) 26.9 MMboe Market capitalisation $724 million Cooper Basin Net debt $84.4 million • Oil production & exploration Issued shares (million) 1,626.6 Onshore Otway Basin Register c
Slide 21: Minerva Gas Processing Project
Minerva Gas Processing Project A low-cost, processing hub for Casino Henry gas and new discoveries For personal use only The Opportunity DEVELOP Phase underway • Integration of low cost processing hub for Casino • Commenced November 2019 Henry and new discoveries • FEED Engineering underway • Owners
Slide 22: Otway Phase-3 Development Project (OP3D)
Otway Phase-3 Development Project (OP3D) Project to bring 100+ PJ1 of gas to market from 2022 onwards, utilising Minerva Gas Plant For personal use only The Opportunity SELECT Phase underway • Development of >100 PJ1 of gas from Henry and Annie • Commenced February 2020 • Gas to market in CY 2022/20
Slide 23: Offshore Otway Basin FY20 year to date
Offshore Otway Basin FY20 year to date Secured the ingredients for growth: gas discovery, gas plant and well located exploration permit For personal use only • Annie gas discovery • Minerva Gas Plant acquired • VIC/P76 granted. Includes part of Annie gas field and Nestor, an ‘Annie look-alike’ prosp
Slide 24: Annie gas discovery
Annie gas discovery Contingent Resource assessed. Annie development now progressed to SELECT stage. For personal use only • Annie-1 drilled and logged gas discovery supported by seismic amplitude Annie Contingent Resource1 estimate: Gross (100% joint venture) field volume • High quality gas reservoi
Slide 25: Manta
Manta Next phase of Gippsland development with 121 PJ gas and 3 MMbbl liquids 2C Contingent Resource1 For personal use only The Opportunity SELECT Phase underway • Second phase Gippsland gas development • Manta-3 well design • Additional gas exploration potential in deeper Manta reservoirs • Engagem
Slide 26: Otway Basin: Penola Trough onshore
Otway Basin: Penola Trough onshore Dombey-1 gas discovery confirms potential. Further investigation required. For personal use only Rock properties: • 44.5 metre gross column in Pretty Hill Formation • 25 metre net pay • Gas sample recovered from Sawpit sandstone Production test • 20 metre interval
Slide 27: Manta gas and liquids resource
Manta gas and liquids resource Contingent Resource with exploration potential For personal use only Manta Contingent Resource1 estimate 1C 2C 3C Condensate MMbbl 2.2 3.4 5.4 Gas PJ 78 121 190 Manta unrisked Prospective Resource1 estimate Low (P90) Best (P50) High (P10) Oil MMbbl 1.0 1.5 2.3 Condensa
Slide 28: Gippsland exploration acreage
Gippsland exploration acreage Two permits located adjacent to producing or produced fields For personal use only VIC/P72 • Adjoins Patricia Baleen • Seismic inversion study conducted • Economic screening of prospects underway • Commitment of 1 exploration well VIC/P75 • Granted September 2019 • Comm
Slide 29: Cooper Basin
Cooper Basin Expanded drilling program completed For personal use only • Expanded drilling program conducted FY20 YTD FY19 YTD Key figures Mar Mar • 13 well appraisal program Production Crude oil kbbl 149.35 181.81 - 3 wells cased and suspended Production Crude oil bbl/day 543 663 • Acquired data fo
Slide 30: Executive Leadership Team
Executive Leadership Team For personal use only Managing Director Chief Financial Officer David Maxwell Virginia Suttell David Maxwell has over 30 years’ Virginia Suttell is a chartered accountant experience as a senior executive with with more than 25 years' experience, companies such as BG Group,
Slide 31: Notes on calculation of Reserves and Resources
Notes on calculation of Reserves and Resources Cooper Energy has completed its own estimation of Reserves and Contingent Resources for its fully-operated Gippsland Basin assets, and elsewhere based on information provided by the permit Operators (Beach Energy Ltd for PEL 92, Senex Ltd for Worrior Fi
Slide 32: Abbreviations
Abbreviations $, A$ Australian dollars unless specified otherwise For personal use only Bbl barrels of oil Boe barrel of oil equivalent EBITDA earnings before interest, tax, depreciation and amortisation FEED front end engineering and design kbbl thousand barrels m metres MMbbl million barrels of oi
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