Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — Investor Presentation (March 2019)
35 slides from Amplitude Energy's investor presentation, Mar 12, 2019
Slide 1: Investor pack March 2019
Investor pack March 2019 For personal use only Skandi Acergy installing control umbilical to Sole gas field February, 2019.
Slide 2: Important Notice – Disclaimer
Important Notice – Disclaimer This investor presentation (“Presentation”) is issued by Cooper Energy Limited ABN 93 096 170 295 (“Cooper Energy” or “COE”). Summary information: This Presentation contains summary information about Cooper Energy and its activities as at the date of this Presentation 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.
Slide 4: Snapshot
Snapshot For personal use only Cooper Energy is an E & P company that generates the large majority of its revenue from a portfolio of gas assets purpose-built for the supply opportunities foreseen emerging in south-east Australia. Cooper Basin • Oil production • Exploration acreage Key statistics* O
Slide 5: Re-cap and look-ahead
Re-cap and look-ahead Cooper Energy is in the midst of an eventful period as gas strategy milestones are delivered For personal use only Last six months… Next six months… ✓ Taken Sole Gas Project to 93% complete and within budget o New gas contracts for Sole commencement and for FY20 onwards from So
Slide 6: Gas strategy context
Gas strategy context Market opportunity identified in structural changes to south-east Australian demand & supply For personal use only Step change in demand brought by LNG start-up … as supply from existing sources for south east Australia commenced decline Eastern Australian gas consumption South-
Slide 7: Market opportunity in gas to south-east Australia
Market opportunity in gas to south-east Australia For personal use only Widening gap between local demand, production and reserves …reflected in prices South east Australian1 gas demand vs local production (PJ) Expected 2019 wholesale gas commodity prices in East Coast Gas Market 500 (under GSAs exe
Slide 8: Gas asset portfolio
Gas asset portfolio Production, development and exploration assets acquired for competitiveness in delivered gas to south-east Australia and exposure to price development For personal use only Otway Hub: gas production, development & exploration 2P Reserves PJ* uncontracted 49 2P Reserves Otway Hub
Slide 9: Gas supply from 2P reserves growth profile
Gas supply from 2P reserves 3 year growth profile commencing, revenue upside from new supply agreements For personal use only Gas sales profile by project Uncontracted • Commencement of gas production from Sole to contracted & uncontracted Sole start or tail trigger ~4 times uplift in gas sales PJ p
Slide 10: Operations: offshore Otway Basin
Operations: offshore Otway Basin Operated gas production, development and exploration in low cost gas province For personal use only Production H1 FY19 FY18 Sales gas PJ comprised of: 3.28 7.04 Casino Henry 2.74 5.7 Minerva 0.54 1.31 Condensate kbbl 2.4 6.2 2P Reserves Developed Undeveloped Total Sa
Slide 11: Offshore Otway Basin exploration
Offshore Otway Basin exploration Two leading targets identified for drilling from May 2019 For personal use only • Subsurface / structures well defined on 3D seismic data • 2 exploration wells, Cooper Energy share (50%) = ~$40 million • Annie: high quality Waarre C primary reservoir target (as in Mi
Slide 12: Gippsland Basin development
Gippsland Basin development Cost competitive resource, existing plant and Sole production planned for FY19 For personal use only Sole Gas Project (100% interest) • Offshore project due for completion end-May 2019 • APA assessing most likely Orbost Gas Plant completion date within September quarter •
Slide 13: Sole Gas Project
Sole Gas Project 93%1 complete and within budget. Offshore project on schedule for completion end-May. For personal use only Offshore project Onshore (APA) Shore Crossing Production wells Umbilical Pipeline Orbost Gas Plant ✓ Completed ✓ Completed ✓ In progress □ To be completed: □ To be completed:
Slide 14: Manta gas and liquids resource
Manta gas and liquids resource Contingent Resource with exploration potential For personal use only Manta Contingent Resource1 estimate 1C 2C 3C Oil MMbbl 0.0 0.6 1.2 Condensate MMbbl 1.7 2.6 4.0 Gas PJ 68 106 165 Manta unrisked Prospective Resource1 estimate Low (P90) Best (P50) High (P10) Oil MMbb
Slide 15: Exploration: Gippsland Basin
Exploration: Gippsland Basin New prospectivity adjacent to existing Patricia Baleen infrastructure For personal use only • VIC/P72 adjoins VIC/L21 (Cooper Energy 100%) which holds the depleted Patricia Baleen gas field and its associated subsea production infrastructure connected to the Orbost Gas P
Slide 16: Operations: Cooper Basin
Operations: Cooper Basin Low cost, cash-generating Western Flank oil production For personal use only Production H1 FY19 FY18 Crude oil MMbbl: 0.12 0.27 Cost per bbl A$ 36.19 33.08 2P Reserves Developed Undeveloped Total Crude oil 1.4 0.4 1.8 • Low production cost, high cash margin, oil production •
Slide 17: Otway Basin: Penola Trough onshore
Otway Basin: Penola Trough onshore Dombey-1 to be drilled to evaluate Pretty Hill Formation and Sawpit Sandstone potential For personal use only South Australia • Haselgrove-3 discovery in adjoining PPL 62 confirmed conventional gas prospectivity of Sawpit Sandstone at depths below previous producin
Slide 18: FY19 second half drilling and development
FY19 second half drilling and development Sole moving to completion. Gas exploration drilling offshore and onshore. For personal use only Location Activity/Project March April May June July Exploration: Otway Offshore Otway well 1 Otway well 2 VIC/P44 & VIC/L24 Development: Otway Offshore Umbilical
Slide 19: Projects pipeline development program
Projects pipeline 5 year development program that can lift gas production more than 10 times FY19 levels For personal use only FY19 FY20 FY21 FY22 FY23 FY24 Sole construct Sole: 1 production 68TJ/d (~24 PJ per annum) expected within September Quarter Minerva Gas Plant: 2 acquire, integrate and opera
Slide 20: Expected production from existing 2P Reserves and 2C Resource
Expected production from existing 2P Reserves and 2C Resource Advent of Gippsland gas production to deliver step change in production and cash generation For personal use only Indicative Cooper Energy oil and gas production million boe 10 • Sole gas field scheduled to commence after completion of of
Slide 21: Funding
Funding Redetermination released funds and increased available debt For personal use only FY19 first half $ million 31 Dec 18 30 Jun 18 • Redetermination of $250 million project finance facility which recognises Sole project performance and outlook Cash 193.9 236.9 • Variations to key terms include:
Slide 22: Summary
Summary 1. On the cusp of transformative uplift in production and cash flow: For personal use only • Offshore project on schedule - due to complete by 31 May • Commencement of Sole gas sales expected September quarter 2019 on APA plant completion • Sole to add 24 PJ to existing gas production of 6 P
Slide 23: Appendices
For personal use only Appendices
Slide 24: Key financial results
Key financial results For personal use only $ million unless otherwise indicated H1 FY19 H1 FY18 change Production MMboe 0.66 0.81 ▼ -15% Sales revenue 36.2 31.3 ▲ 16% Gross profit 16.7 14.1 ▲ 18% Gross profit/Sales revenue % 46.1 45.0% ▲ 2% Statutory profit before tax (10.4) 14.1 ▼ -173% Statutory
Slide 25: Capital expenditure guidance update
Capital expenditure guidance update Revision to FY19 capex expectations brought by timing of Otway Basin exploration For personal use only FY19 H1 FY19 H2 FY19 $ million incurred Actual Guidance Guidance Exploration Development Total Exploration Development Total Exploration Development Total Otway
Slide 26: Profile of contracted and uncontracted gas by project
Profile of contracted and uncontracted gas by project Existing reserves and resources offer growth before exploration upside For personal use only Gas sales profile by project contracted & uncontracted PJ pa Manta Manta uncontracted (subject to appraisal well and FID) 25 24 18 18 Sole start or tail
Slide 27: Southern states gas prices: ACCC view
Southern states gas prices: ACCC view For personal use only Gas price and LNG netback trend 2019 expected prices Average monthly commodity prices offered for 2019 supply against Expected 2019 wholesale gas commodity prices in the East Coast Gas Market contemporaneous expectations of 2019 LNG netback
Slide 28: Offshore Otway Basin prospects
Offshore Otway Basin prospects Prospect rich and favourable economics due to pipeline and plant access Seismic inversion and subsequent studies identified 2 leading candidates for drilling For personal use only Gross unrisked Prospective Resource2 (billion cubic feet, Cooper Energy share 50%) Prospe
Slide 29: Minerva Gas Plant
Minerva Gas Plant Strategically located offering gains in gas price, processing, recovery rates & production For personal use only Minerva Gas Plant (10%)* * Equity to increase to 50% on completion of acquisition Minerva Gas Plant acquisition by Casino Henry Joint Venture as announced 1 May 2018 • C
Slide 30: Reserves and Contingent Resources at June 2018
Reserves and Contingent Resources at 30 June 2018 1P (Proved) 2P (Proved + Probable) 3P (Proved + Probable + Possible) Reserves Unit For personal use only Cooper Otway Gippsland Total1 Cooper Otway Gippsland Total1 Cooper Otway Gippsland Total1 Developed Sales Gas PJ 0 15 0.0 15 0 26 0 26 0 36 0 36
Slide 31: Senior management
Senior management For personal use only Managing Director General Manager, Development Company Secretary & General Manager, Commercial David Maxwell Duncan Clegg Legal Counsel & Business Development Alison Evans Eddy Glavas David Maxwell has over 30 years’ Duncan Clegg has over 35 years’ experience
Slide 32: Notes on calculation of Reserves and Resources
Notes on calculation of Reserves and Resources Notes on calculation of Reserves and Contingent 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 Operat
Slide 33: Senior Management Team
Senior Management Team For personal use only Company Secretary & General Manager, General Manager, General Manager, Legal Counsel Operations Iain Development Commercial & Business Alison Evans MacDougall Duncan Clegg Development Eddy Glavas General Manager, General Manager, Managing Director Chief F
Slide 34: 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
Slide 35: Notes
For personal use only Notes 35