Otto Energy Limited · ASX:OEL
Otto Energy — Investor Presentation (October 2017)
22 slides from Otto Energy's investor presentation, October 2017
Slide 1: Production & Cashflow Imminent, Multi-Well Exploration Program Commencing
ASX : OEL PRODUCTION & CASHFLOW IMMINENT MULTI-WELL EXPLORATION PROGRAM COMMENCING Gulf of Mexico Shelf oil and gas explorer/producer Matthew Allen, Managing Director and CEO October 2017
Slide 2: Investment Rationale – Why Otto?
Investment Rationale – Why Otto? Highly experienced board & management Tier 1 North American locations for exploration of oil and gas Multiple near-term news events and pathways to significant share price uplift Production & cash flow imminent Low-risk, low-cost, high margin, high impact p
Slide 3: Experienced Board & Management Team
Experienced Board & Management Team Board of Directors Senior Management John Jetter – Non-Executive Chairman. Matthew Allen – Managing Director & CEO. LLB, BEc INSEAD BBus, FCA, FFin, GAICD Former MD/CEO J.P. Morgan Germany. Global exposure to the upstream oil and gas industry with Non-Executive Di
Slide 4: Pathway into North America portfolio
Pathway into North America portfolio Gulf of Mexico delivers high margin projects at low oil prices Executed sale of interest in Galoc, Philippines Sold working interest for US$108 million valuing interest at US$32.70 Acquired interest in per bbl in the ground. Alaska North Slope acreage Non-core as
Slide 5: Otto Energy's Gulf of Mexico Portfolio
Otto Energy’s Gulf of Mexico Portfolio • Option to drill a well at Bivouac Peak secured • Multi-well development at SM 71, in production Jan 2018 • B65 prospective resource to be tested during development drilling • Option to secure 50% equity in adjacent block at VR232 or SM74 • Farm-in to ST-224 d
Slide 6: Gulf of Mexico Shelf counter-cyclical play
Gulf of Mexico Shelf counter-cyclical play Limited investment in US conventional exploration – mature province yielding new discoveries Shale oil revolution SM71 breakeven • Gulf of Mexico is a mature oil and gas province < US$25/bbl – producing since 1950’s Over US$21.4 billion in Permian shale M&A
Slide 7: Our Growth Strategy
Our Growth Strategy 1000’s of drill ready prospects available for farm-in at near ground floor terms because: VR 232/ Exploration • Shelf exploration is Prospect ST 224 SM 74 Success capital starved screening Heading for • Lease Expiry is imminent ongoing SM 71 B65 Bivouac Production Peak [SM 71 D5]
Slide 8: Otto's Gulf of Mexico Strategy
Otto’s Gulf of Mexico Strategy Targeting a portfolio of high margin, high chance of success and near term production assets Focus on prospects with the following characteristics: Miocene/Pliocene geology which are amplitude supported Investing capital into drilling, not seismic Seeking early c
Slide 9: South Marsh Island 71 (SM 71) – D5 Sand Discovery
South Marsh Island 71(SM 71) – D5 Sand Discovery SM71 D5 Sand RTM Amplitude Map • Production expected to commence in Jan 2018 • Initial projected flow rates over B’ 1,500 bbls/day per well (2 well initial dev) SMI 71 #1 • SM 71 #1 well logged 151’ TVT oil pay in the B I3, J, D5 and D6 sands • SM 71
Slide 10: SM71 Byron #1 Well I, J, D5 & D6 Hydrocarbon Sand Intersections
SM71 Byron #1 Well I, J, D5 & D6 Hydrocarbon Sand Intersections B BYE SM71 SHL B’ D5 Sand Amplitude Map I Sand Production 590 Mbo Historical Production J Sand Production 3.3 Mmbo Historical Production Erosional #1 Truncation B’ I Sand B J Sand #1 SHL B65 Sand Erosional Truncation Salt D5 Sand Notice
Slide 11: SM71 Development: 3 Well Scenario Conceptual Well Placement and Timing
SM71 Development: 3 Well Scenario Conceptual Well Placement and Timing BYE SM71 SHL 91 NFO TVT 1,000-1,500 bopd First Production late 2018? I Sand J Sand BYE #1 #3 B65 * Prospective Resource 4,864 mbo + 4,740 mmcf 1,500-2,000 3,000-4,000bopd bopd/well Notice: THIS DATA IS OWNED BY AND IS A TRADE SEC
Slide 12: SM71 – B65 Sand – Comparison of Prospect to Production
SM71 – B65 Sand – Comparison of Prospect to Production SM71 Prospect SM73 Production B65 Vp/Vs B65 Vp/Vs *5.0 mmbo + 4,800 mmcf NET 10.1 mmbo + 9,800 mmcf Collarini Prospective Resource Produced to Date C C’ #3 Target B B’ Shale Sand B65 Sand B65 Sand Prospect Production Notice: THIS DATA IS OWNED B
Slide 13: South Marsh 71 Development plan
Manned Tripod South Marsh 71 Development plan Complete Manned Tripod Expected completion Sep 2017 Kinetica 30” Gas Lift boat delivery to SM71 location Oct 2017 Drilling rig arrives Nov 2017 Departs Jan 2018 Complete the #1 Well in D5 Sand SM71 Gas – 7000’ to SM71 Oil – 500’ to Crimson 8” Oil Drill t
Slide 14: South Marsh Island 71 (SM 71)
South Marsh Island 71 (SM 71) Otto’s first GoM shelf discovery – production to start Jan 2018 Stacking of cellar deck Sub-cellar Sub Cellar and Deckcellar nearsdecks in place completion Cellar Deck nears completion Jacket ready for loadout Welding Interconnect Pipework Construction progress on tripo
Slide 15: South Timbalier 224 (ST 224)
South Timbalier 224 (ST 224) Amplitude supported, gas/condensate prospect about to commence drilling ST224 Prospect W&T Offshore (operator) 39% Otto Energy 25% JV Partners Houston Energy 11% Other private US company 25% • Upper Pliocene – Bul 1 trend amplitude supported gas/condensate prospect Reser
Slide 16: Bivouac Peak
Bivouac Peak Onshore Louisiana gas/condensate prospect to be drilled in 2018 BYRONENERGY LIMITED Cris I – Cib Op Trend Active Production Prospect Acreage Note: Otto will earn interests in the above resources volumes by participating in wells. The estimated quantities of petroleum that may potentiall
Slide 17: Alaska North Slope
Alaska North Slope New conventional discoveries add to prospectivity of this prolific region Caelus Smith Bay Conventional Discovery (Oct 2016) • Caelus-Tulimaniq #1 & step-out Caelus-Tulimaniq #2 • Brookian submarine fan play • 183ft & 223ft net oil pay • Estimated 1.8 to 2.4 billion barrels recove
Slide 18: Activity Driving Value Growth
Activity Driving Value Growth 2017 2018 2019 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Low-cost production SM71 Facility construction Additional Development Development & GULF OF Exploration drilling drilling MEXICO ST224 Success Case Facility Construction Low-cost production Explorati
Slide 19: Significant Value Upside in Coming Three Months
Significant Value Upside in Coming Three Months 300 25 250 To be drilled and tested Q4 '17 20 Equivilent Value (AUD cents per share) 200 Value (AUD $ million) 15 150 Increment to external val'n if WTI US$60/bbl flat is used $0.05+ 10 100 5 50 OEL Market Capitalization 12 October 2017 AUD 20.7 millio
Slide 20: Corporate Snapshot
Corporate Snapshot 50,000,000 $0.08 45,000,000 $0.07 2 40,000,000 $0.06 Volume (shares traded on ASX per day) 35,000,000 OEL Share Price (A$ per share) $0.05 30,000,000 25,000,000 $0.04 20,000,000 $0.03 15,000,000 $0.02 10,000,000 $0.01 5,000,000 - $- 31-Jul-16 31-Jul-17 30-Sep-15 30-Nov-15 30-Sep-1
Slide 21: Disclaimer
Disclaimer This presentation does not constitute an offer to sell securities and is not a solicitation of an offer to buy securities. It is not to be distributed to third parties without the consent of Otto Energy Limited (the “Company”). This presentation contains forward looking statements that ar
Slide 22: Thank You
Thank You Otto Energy Ltd 32 Delhi Street West Perth Western Australia 6005 Telephone: +61 8 6467 8800 Facsimile: +61 8 6467 8801 info@ottoenergy.com 22 Investor Update Presentation, October 2017