Otto Energy Limited · ASX:OEL
Otto Energy — Ottoman Energy — Shareholder Meeting (November 2005)
30 slides from Otto Energy's shareholder meeting presentation, Nov 30, 2005
Slide 1: Annual General Meeting Presentation
ENER ottiom o ~< Lt cd 30 November 2005 Manager of Company Announcements Australian Stock Exchange Limited Level 6, 20 Bridge Street SYDNEY NSW 2000 By E-Lodgement ANNUAL GENERAL MEETING PRESENTATION Please find attached the presentation for the Annual General Meeting held today at the QVI Building,
Slide 2: Performance & Outlook, Annual General Meeting 2005
ENERGY LTD offoman PERFORMANCE & OUTLOOK ANNUAL GENERAL MEETING, 2005
Slide 3: Disclaimer
PERFORMANCE & OUTLOOK, AGM 2005 DISCLAIMER This presentation does not constitute an offer to sell securities and is not a solicitation of an offer to buy securities. [tis not to be distributed to third parties without the consent of Ottoman Energy Ltd. (the “Company’). This presentation contains for
Slide 4: Company Objectives
PERFORMANCE & OUTLOOK, AGM 2005 COMPANY OBJECTIVES @ Ottoman aims to create wealth for shareholders from exploration and production activities worldwide, through: ~ Investments in proven oil provinces with existing infrastructure, good legal and commercial rules and acceptable sovereign risk ~ Worki
Slide 5: Project Overview
PERFORMANCE & OUTLOOK, AGM 2005 PROJECT OVERVIEW Ottoman is engaged in: * Turkey (onshore) ~ Gas exploration aiming to early discoveries and production @ Philippines (offshore) ~ Development of the Calauit Oil Field ~ Exploration drilling of Argao prospect in 2nd half 2006 (SC 51) ~ Farmout of giant
Slide 6: Investment Highlights
PERFORMANCE & OUTLOOK, AGM 2005 INVESTMENT HIGHLIGHTS # Turkey (onshore) ~ Goal: 2 gas discoveries in Dec 05 and if achieved: « “first gas” towards end 2006 — cash flow 2007 onwards * Philippines (offshore) ~ IPO of NorAsian in early 2006 — “first oil” from Calauit mid 2006 — valuable share parcel «
Slide 7: Company Achievements - Year
PERFORMANCE & OUTLOOK, AGM 2005 COMPANY ACHIEVEMENTS - YEAR 1 * Turkey ~ Listed 22 Dec 04 with 80% in 3 gas prospective licences in Turkey and $4m cash Carried out detailed reviews and geological, geochemical and seismic surveys Identified 3 drilling targets with high potential of success Two wells
Slide 8: Company Achievements - Year (cont)
PERFORMANCE & OUTLOOK, AGM 2005 COMPANY ACHIEVEMENTS - YEAR 1 (cont, Philippines Acquired 40 ~ 50% in 3 offshore licences (including Calauit oil field) for 7.5m OEL shares and 3.75m OEL options and spent $1.2m cash Announced merger of Philippine interests with identical interests held by AustralAsia
Slide 9: Board & Management
PERFORMANCE & OUTLOOK, AGM 2005 BOARD & MANAGEMENT Rick Crabb - Chairman Jaap Poll - Managing Director lan Macliver - Director John Zadnik - Alternate to RC David Riekie - Director Nicki Telfer — Secretary ASX listing 22 Dec 04 (ASX Code: OEL) Website: www.ottomanenergy.com
Slide 10: Board & Management (cont)
PERFORMANCE & OUTLOOK, AGM 2005 BOARD & MANAGEMENT ont) *® Australian Office - West Perth, Western Australia — Secretariat and Corporate Advice - Grange Consulting # Ankara - Dr Ongun Yoldemir/Merty Energy - Representative of Edirne (OEL subsidiary) — Staff - Geologists, Geophysicists, Engineers, Se
Slide 11: Capital Structure
PERFORMANCE & OUTLOOK, AGM 2005 CAPITAL STRUCTURE Performance Cash Shares Options (1) Shares (2) 30 Sept 05 49,096,250 30,491,250 5,500,000 1,188,000 . 28,491,250 Options exercisable at 20 cents on or before 1 December 2006 . 2.5m Performance Shares convert to Ordinary Shares on first commercial gas
Slide 12: Corporate Structure
PERFORMANCE & OUTLOOK, AGM 2005 CORPORATE STRUCTURE | Ottoman Australian Public Company (ASX listed - OEL) Up to 25% 32.48% (Option to 41.24%)
Slide 13: Project Overview - Turkey
PERFORMANCE & OUTLOOK, AGM 2005 PROJECT OVERVIEW - TURKEY Satellite Photo - Turkey & Thrace Basin
Slide 14: Selection Criteria
PERFORMANCE & OUTLOOK, AGM 2005 SELECTION CRITERIA # Why Turkey and the Thrace Basin? proven hydrocarbon province with ready energy market high gas prices (double Australian prices) Low Government take (gas royalty 1-12.5%, corp. tax 35%) simple natural gas composition requiring minimal processing “
Slide 15: Thrace Basin - Edirne Licence
PERFORMANCE & OUTLOOK, AGM 2005 THRACE BASIN - EDIRNE LICENCE SF Setonic, Sere ting: ohaue © sais etsy ~ Seeing SS Passat oce Prospect Montage — Bati Umur, Arpaci and Koyustu
Slide 16: Project Overview - The Philippines
PERFORMANCE & OUTLOOK, AGM 2005 PROJECT OVERVIEW - THE PHILIPPINES PUILIBTINE seu Pcie ae Fue fe vn Satellite Photo - Philippines
Slide 17: Selection Criteria
PERFORMANCE & OUTLOOK, AGM 2005 SELECTION CRITERIA # Why offshore Philippines? ~ an opportunity offered to Ottoman by privately held AustralAsian which needed to partner with a listed oil company to provide credibility to Philippine Government to acquire the Calauit oil field and negotiate subsequen
Slide 18: Calauit Production
PERFORMANCE & OUTLOOK, AGM 2005 CALAUIT PRODUCTION ee aoe BOUT cHINe SAN MARTIN & ean EPS Fleld Layout peices bgioee Calauit SC50, Showing Regional Oil & Gas Fairway
Slide 19: Calauit 1B Oil Field Reserves
PERFORMANCE & OUTLOOK, AGM 2005 CALAUIT 1B OIL FIELD RESERVES» ® Expert’s Report - Dr Andrew Wadsley OlIP MMbbli P90 P50 P10 Fracture 5.78 11.26 19.63 Matrix 8.00 23.94 541.00 Total 13.35 35.73 66.86 Recoverable MMbbl Fracture 1.06 3.59 8.28 Matrix 0.27 1.57 5.01 Total 1,56 §,46 12.63
Slide 20: Calauit - Targeted Production
PERFORMANCE & OUTLOOK, AGM 2005 * CALAUIT — TARGETED PRODUCTION Production rate ist well 10,000 — 15,000 bopd (mid 2006) Assume Calauit oil price US$40/bbl (currently >US$45/bbl) Assume operating expenditure (opex) = US$140,000/day Gross revenue between US$400,000 — US$600,000/day Net Revenue after
Slide 21: Prospect Details
PERFORMANCE & OUTLOOK, AGM 2005 PROSPECT DETAILS cavoves AEA BuO Gea East Visayan Basin SC51 - Licence Location Map ss 2 ICANTICLAN FATIMA PROSPECT, TAOG PROSPECT] 7 PROSPECT SC51, Leyte Block - Seismic Section of Villaba Gas Discovery & Adjacent Reef Prospects
Slide 22: Prospect Details (cont)
PERFORMANCE & OUTLOOK, AGM 2005 PROSPECT DETAILS (cont) ARGAQ PROSPECT CABILAO REEF PROSPECT TWT (in seconds) SEISMIC SECTION SC 51 SC51, Cebu Block Sc51, Cebu Block - Seismic Section Over - Prospect Map Argao & Cabilao Prospects
Slide 23: Prospect Details (cont)
PERFORMANCE & OUTLOOK, AGM 2005 PROSPECT DETAILS cont) @ Sulu ce4 Jes pened = Gaul 2 Blan BG RE4-128 MARANTAO SC55, Ultra Deep Water Block Location Map SC51, Maraniao Reef Prospect
Slide 24: Project Overview - Argentina
PERFORMANCE & OUTLOOK, AGM 2005 PROJECT OVERVIEW - ARGENTINA PRODUGING OlL BASINS ARGENTINA ‘Alantic Ocean: | N ottonian
Slide 25: Selection Criteria
PERFORMANCE & OUTLOOK, AGM 2005 SELECTION CRITERIA @ Why onshore Argentina? — “network” opportunity offered to Ottoman, which wanted to partner with a small established international oil co to provide JV expertise Cuyana Basin is a prolific oil producer with established infra-structure of pipelines,
Slide 26: Cuyana Basin & Santa Rosa Dome
PERFORMANCE & OUTLOOK, AGM 2005 CUYANA BASIN & SANTA ROSA DOME ein ene SANTA ROSA PRODUCING / BLOCK ~ OWL FIELDS 1000m Santa Rosa Dome MIGRATING | MIGRATI WEST | EAST ~
Slide 27: Wish List for 2006
PERFORMANCE & OUTLOOK, AGM 2005 WISH LIST FOR 2006 * TURKEY - Gas discoveries in Edirne - Dec 05 —- First gas towards end 2006 — cash flow 2007 onwards @ PHILIPPINES — IPO of NorAsian in early 2006 - First oil from Calauit mid 2006 @ 10,000-15,000 BOPD — Cebu Block drilling late 2006 — Argao prospec
Slide 28: Summary
PERFORMANCE & OUTLOOK, AGM 2005 SUMMARY Ottoman has built a balanced E&P portfolio ® LOW RISK - GOOD REWARD * Thrace Basin Licences — high gas prospectivity, ready for drilling, early cash flow potential * MODERATE RISK - HIGH REWARD * Philippine licences / NorAsian - oil production from Calauit in
Slide 29: The Dawn of Peak Oil
PERFORMANCE & OUTLOOK, AGM 2005 THE DAWN OF PEAK OIL e The world consumes: — 84 mbopd and spare production capacity is only 1 mbopd ~ 2 barrels of oil for every barrel discovered - has been doing so for over 20 years In 1990’s, annual consumption rose by 1mbopd - in 2000’s daily demand increase jump
Slide 30: Performance & Outlook, Annual General Meeting 2005
ENERGY LTD offoman PERFORMANCE & OUTLOOK ANNUAL GENERAL MEETING, 2005