Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — Investor Presentation (June 2018)
31 slides from Amplitude Energy's investor presentation, Jun 12, 2018
Slide 1: Investor Pack Update
For personal use only Sole-4 subsea tree deployment Investor Pack Update 12 June 2018
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: Recent milestones and events
Recent milestones and events Building a growing gas supply business around Otway and Gippsland hubs For personal use only Otway: production uplift and strategic gas plant acquisition • Casino Henry joint venture commenced gas sales to Origin Energy under new contracts at market prices from 1 March •
Slide 4: Cooper Energy: focussed on south east Australia
Cooper Energy: focussed on south east Australia 305 PJ 2P + 158 PJ 2C conventional gas & exploration acreage close to markets & infrastructure For personal use only Cooper Basin: oil production • historical production source • production of ~250 kbbl oil pa • low cost operations Otway Basin onshore:
Slide 5: Current position and outlook
Current position and outlook Cooper Energy is in the midst of a 6 year growth profile sourced from existing assets and its leverage to the south-east Australian gas market For personal use only 2012 – 2016 Now: 12 – 24 months: Longer term: Vision execution Suppling & developing Delivery & growth Blu
Slide 6: Offshore Otway Basin
Offshore Otway Basin Gas production, development, marketing and exploration For personal use only Indicative Casino Henry gas production* PJ pa Cooper Energy 50% share Otway uncontracted Otway contracted 3 8 8 7 7 6 5 4 3 3 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 • Current production and sales:
Slide 7: Minerva Gas Plant acquisition by Casino Henry Joint Venture
Minerva Gas Plant acquisition by Casino Henry Joint Venture Ideally located, reduced cost and upside in production, developed reserves & 3rd party access For personal use only Minerva Gas Plant (10%)* * Equity to increase to 50% on completion of acquisition by Casino Henry Joint Venture as announced
Slide 8: Gippsland Basin
Gippsland Basin Portfolio of assets and uncontracted gas ideally located for supply to south-east Australia For personal use only Development: Sole Gas Project (100% equity and Operator) • 249 PJ 2P1 gas field being developed to supply gas from mid-2019 • FID 29 August 2017, project proceeding to sc
Slide 9: Impact of Sole on Cooper Energy
Impact of Sole on Cooper Energy Transformational impact on reserves and expected production and cash flows For personal use only Proved & probable reserves Forecast production Estimated 2 operating cash flow MMboe MMboe $ million 55 6 175 5 150 44 125 4 33 100 3 22 75 2 50 11 1 25 0 0 0 FY16 FY17 So
Slide 10: Sole gas project
Sole gas project 48% complete at end May 2018 For personal use only ORBOST GAS PROCESSING FACILITY Works By - APA Group Plant Upgrade & Operations ✓ Piling completed ✓ Plant construction contract awarded to Downer. Site works advancing Orbost Gas Plant HDD Umbilical Crossing - Complete Casing Size 1
Slide 11: Sole-3 and Sole-4 production wells
Sole-3 and Sole-4 production wells Currently drilling, completion meets critical milestone for Sole Gas Project For personal use only • 2 wells drilled ~1,200 m to total vertical depth ~ 780m, including near-horizontal section of ~100 m to optimise recovery • Sole-3 spudded 1 May, drilled to TD, res
Slide 12: Ocean Monarch operations at Sole
Ocean Monarch operations at Sole For personal use only Subsea tree Drilling floor ROV operation Preparations for subsea tree deployment 12
Slide 13: Sole gas marketing
Sole gas marketing Long term contracts for 75% of reserves underpin project cash flows; marketing of balance to commence on completion of production wells For personal use only • Contracted 20 PJ pa1 (55 TJ/day) of Sole output with blue chip Sole gas production: contracted and uncontracted customers
Slide 14: Otway Basin, Penola Trough onshore
Otway Basin, Penola Trough onshore Haselgrove results confirm prospectivity for deep conventional gas For personal use only South Australia • Haselgrove-3 discovery in adjoining PPL 62 confirmed conventional gas prospectivity of the Sawpit sandstone at depths below previous producing reservoirs • SA
Slide 15: Cooper Basin
Cooper Basin Low cost, high margin oil production For personal use only • YTD production of 208 kbbl vs 192 kbbl – connection of Callawonga wells drilled FY17 • Average realised price: A$79.19/bbl for FY18 YTD • Operating costs of A$32.34/bbl for FY18 YTD Cooper Energy Cooper Basin oil production Kb
Slide 16: Cooper Energy contracted and uncontracted gas profile
Cooper Energy contracted and uncontracted gas profile* Indicative production profile from Casino Henry, Sole and Manta For personal use only Indicative gas sales from current assets contracted & uncontracted Uncontracted PJ pa 35 33 Contracted 29 25 12 12 18 17 16 13 20 20 20 20 20 20 20 14 16 5 13
Slide 17: Gas price trend and expectations for south-east Australia
Gas price trend and expectations for south-east Australia ACCC finds price consolidation around $8 - $10/GJ and expects this to continue For personal use only ACCC analysis of gas prices offered & accepted Expected Southern States gas prices: Unfilled offers between 1 January 2017 and 14 July 2017 a
Slide 18: Portfolio style business built around Gippsland and Otway hubs
Portfolio style business built around Gippsland and Otway hubs Plans escalating with gas contracting and capex around 2 hubs best placed for supply to south-east Australia For personal use only Otway: offshore & onshore Gippsland 2018: 2018: • Marketing uncontracted gas for Otway Hub • Sole gas proj
Slide 19: Current focus for value building
Current focus for value building 4 key areas for value uplift in 2018 and 2019 For personal use only 1. Sole Gas Project • Safe execution of drilling and pipe welding • Execute within schedule and budget 2. Casino Henry • Optimisation of production operations now Casino-5 production has resumed 3. G
Slide 20: Wrap-up
Wrap-up Established east coast gas business with production ramping -up and cash inflection point with new opportunities being developed For personal use only • Established low cost operations generating high cash flow/boe Sound cash generating • Strong balance sheet with senior bank funding existin
Slide 21: Appendices
For personal use only Appendices
Slide 22: Cooper Energy Snapshot
Cooper Energy Snapshot For personal use only Key statistics* Proved & Probable Reserves 54.1 MMboe Contingent Resources (2C) 34.9 MMboe Production FY18 guidance 1.4-1.5 MMboe Market capitalisation $608 million Net cash/(debt) $132 million Issued shares (million) 1,601.1 Cooper Basin Oil production &
Slide 23: Contracted and uncontracted gas profile by project
Cooper Energy contracted and uncontracted gas profile* by project Existing assets & projects offer growth over 6 years before exploration For personal use only Gas sales profile by project contracted & uncontracted PJ pa Manta uncontracted Gippsland Gas Project Manta contracted Phase 2 Sole uncontra
Slide 24: Sole gas project: the field
Sole gas project: the field Simple, well-defined structure with good reservoir quality For personal use only Shallow depth • Reservoir at shallow depths below the sea floor - mapped depth to top of gas column is 745 m subsea, maximum gas column height is 71.5 m Well defined, simple structure • Reser
Slide 25: Sole Gas Project schedule
Sole Gas Project schedule As at May 2018 For personal use only H1 FY18 H2 FY18 H1 FY19 H2 FY19 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Phase EXECUTE OPERATE Subsurface Subsurface Team Support for Well Planning Ops Geology Support Reservoir and
Slide 26: Manta gas field
Manta gas field Contingent resource plus significant deeper exploration potential For personal use only Geological setting - a structural three-way dip, one-way fault closure against a NE-SW trending fault - Manta-1, exploration well drilled in 1984, and Manta-2A, production well drilled in 2006 - G
Slide 27: South-east Australia gas supply costs in 2020
South-east Australia1 gas supply costs in 2020* Cooper Energy projects are cost competitive for south-east Australia For personal use only Delivered Melbourne city gate cost for gas from eastern Australia available for delivery to domestic market in 2020* AUD / GJ Typical peak daily quantity for 14
Slide 28: Forecast eastern Australia gas supply and demand outlook
Forecast eastern Australia gas supply and demand outlook Tight market forecast* for 2018 and 2019 For personal use only 2018 2019 PJ PJ Additional demand @ max capacity 311 338 1,293 LNG 1921 1913 1,217 LNG base case = contract + forecasts spot sales Range of ACCC 2018 Range of ACCC 2019 supply/dema
Slide 29: 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 30: 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 resources in accordance with the definitions and guidelines in the Society of Petroleum Engineers (SPE) 2007 Petroleum Resources For
Slide 31: 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 GJ Gigajoules kbbls thousand barrels m metres MMbbl millio