Australis Oil & Gas Ltd. · ASX:ATS
Australis Oil & Gas — Shareholder Meeting (June 2020)
31 slides from Australis Oil & Gas's shareholder meeting presentation, Jun 11, 2020
Slide 1: Chairman's Address and Company Presentation Material 2020 AGM
ASX Announcement 11 June 2020 For Immediate Release For personal use only Chairman’s Address and Company Presentation Material 2020 Annual General Meeting Please find attached to this document a copy of the Chairman’s address and the presentation that will be provided by Australis Oil & Gas Limited
Slide 2: Chairman's Address – 2020 Annual General Meeting
Chairman’s Address – 2020 Annual General Meeting For personal use only Good morning and thank you all for taking the time to attend this meeting. We live in different times to those that existed as recently as our AGM last year. I hope that you and your families have coped well to date with the vari
Slide 3: Chairman's Address (continued)
Accordingly, our short-term strategy is centred on asset protection, financial conservatism and identification of partners to work with in the future. For personal use only We made some difficult decisions soon into this downturn to reduce debt, conserve cash and postpone new development activities.
Slide 4: For personal use only
ASX: ATS For personal use only AGM Presentation June 2020
Slide 5: Important Notice and Disclaimer
Important Notice and Disclaimer For personal use only This presentation has been prepared by Australis Oil & Gas Limited ACN 609 262 937 (ASX: ATS) (Australis). Summary of information: This presentation contains general and background information about Australis’ activities current as at the date of
Slide 6: Summary and Overview
Summary and Overview Timeframe influenced by recent events, but strategy sound and TMS asset base well positioned For personal use only In 2019 Australis achieved many strategic objectives − Six well initial drilling program (IDP) re-affirmed productivity of the TMS Core on par with the best of US
Slide 7: Corporate Strategy – progress review
Corporate Strategy – progress review ATS has maintained and executed on a clear strategy – summary of progress and remaining steps For personal use only Acquire and Demonstrate Identify Aggregate Asset Value Realise Value A Tier 1 oil asset with attractive Built a position of over Confirm hist
Slide 8: Why we like the TMS Core
Why we like the TMS Core The unique TMS advantages that are sought by US shale industry players when seeking to replace depleting Tier 1 oil inventory For personal use only Highly Productive Proven oil productivity is on par or better than other USA Tier 1 oil shale basins Reservoir Multiple Tie
Slide 9: Large contiguous land position
Large contiguous land position Control and flexibility over vast position, with new leasing in area by competitors For personal use only Size and Flexibility Australis Land Position Large drilling units of up to 1,920 acres allow efficient development to meet lease obligations Long lease expiry
Slide 10: Significant oil reserve and resource position in TMS
Significant oil reserve and resource position in TMS Significant scale based on 250 acre well spacing and modest EUR’s For personal use only Australis TMS Reserves (only 36,000 net acres (~31%) assessed for Net recoverable oil independently assessed as at development)1 31 December 20191, based on
Slide 11: Australis 2018/19 Initial Drilling Program – Achievements
Australis 2018/19 Initial Drilling Program – Achievements The IDP program demonstrated the productivity and economics of the TMS Core For personal use only Key IDP Achievements All six wells have cumulatively produced half a million barrels of oil All wells demonstrated productivity to date pote
Slide 12: Balance Sheet Stability
Balance Sheet Stability Australis acted swiftly to strengthen its balance sheet amidst the market volatility For personal use only Debt Restructure 1 Reduced debt balance to US$23 million with a US$10 million prepayment No further amortisation payments until YE2020 and maturity date remains at N
Slide 13: TMS production on par with best of other basins
TMS production on par with best of other basins TMS Type Curve well productivity and decline profile outperforms many of the best counties within the four major For personal use only oil producing basins: The Permian, Eagle Ford, Williston (Bakken) and DJ - Niobrara 24 month cum. Oil Production (‘00
Slide 14: Case Study – Delaware Basin vs TMS
Case Study – Delaware Basin vs TMS Two recent ‘Tier 1’ transactions highlight the comparative value of the TMS For personal use only WPX acquires Felix Energy for US$2.5 B (cash & stock) – December 2019 58,500 net acres, 60,000 boe/d production (70% oil), 190 wells drilled, 1,500 gross locations.
Slide 15: US Unconventional Production
For personal use only Production Growth (bbls/d) Production Growth (bbls/d) -400,000 -300,000 -200,000 -100,000 0 100,000 200,000 0 50,000 100,000 150,000 200,000 -150,000 -100,000 -50,000 01-01-16 01-01-16 01-04-16 01-04-16 01-07-16 01-07-16 01-10-16 01-10-16 01-01-17 01-01-17 01-04-17 01-04-17 01-
Slide 16: Major shale basins – challenges to premium economics
Major shale basins – challenges to premium economics The major basins in the US come with issues that challenge their Tier 1 economics over time – pre Covid19 For personal use only Inventory of Tier 1 locations is rapidly decreasing in more mature plays (such as Eagle Ford & Bakken), as the Decrea
Slide 17: US Shale Industry – Unprecedented Activity Reduction
US Shale Industry – Unprecedented Activity Reduction Historical slowdown in new well and frac activity combines with recent production shut-ins For personal use only US Onshore Shale Rig Count Production from US shale industry 1,600 80 is under significant pressure: 1,400 70 1,200 60 - Horizontal
Slide 18: Australis strategy remains valid
Australis strategy remains valid The prevailing oil and gas business environment changes time frame but not value proposition of ATS strategy For personal use only Prior to COVD-19, the US unconventional industry was going through a structural shift with diminishing Tier 1 inventory locations, int
Slide 19: Summary
Summary Experienced team and strategy will ultimately drive shareholder returns. For personal use only Proven Execution Capability Shareholder Return Driven Board and management were the Board and management own 11% of the founders and key executives of Aurora Company Oil & Gas Experienced in
Slide 20: Additional Information
For personal use only Additional Information 17
Slide 21: Directors & Management
Directors & Management For personal use only Jon Stewart Alan Watson Steve Scudamore Non-Executive Chairman Non-Executive Director Non-Executive Director - >25 years in the upstream oil and gas industry - 30 years previous experience in international - Over 3 decades experience in Corporate - Founde
Slide 22: TMS is an undeveloped Tier 1 oil shale play
TMS is an undeveloped Tier 1 oil shale play On trend with Eagle Ford Basin in Texas, similar depositional history and age For personal use only TMS Location Onshore basin - Louisiana and Mississippi. On trend with Eagle Ford Basin in Texas, similar depositional history and age. 80 horizontal w
Slide 23: Large well inventory each with attractive economics
Large well inventory each with attractive economics Australis has 425 net well locations - each with a base value of US$3.4 million @ $50/bbl (excluding upside) For personal use only Single Well Economics NPV10A (US$ million) $6.9 $14.1 Stewart well at $50/bbl WTI $0.9 $7.2 $2.9 $3.4 TMS Type Curve:
Slide 24: Well Costs – Continued Improvement Achievable
Well Costs – Continued Improvement Achievable When planned drilling procedures consistently applied, Australis wells demonstrated improved cost and performance For personal use only TMS total well costs 2011 – 2014 compared to the Stewart and Taylor wells drilled by Australis $9,000 $8,000 Improveme
Slide 25: The TMS Type Curve
The TMS Type Curve The TMS Type Curve is the average production profile of all 15 wells drilled by Encana (the previous operator) in 2014 For personal use only Total oil production per well - initial 24 months (mbbls) 2014 Australis wells - Production profiles 40,000 Lawson 25-13H 318 Longleaf 29H 2
Slide 26: Single Well TMS Type Curve
Single Well TMS Type Curve TMS Type Curve is an absolute history match to averaged empirical data For personal use only TMS Type Curve – Assumptions TMS Core Type Curve v TMS Production Oil EUR – 610 Mbbls 250,000 Gas EUR – 159 MMscf 200,000 Oil Production (bbl) NGL EUR – 20 Mbbls 150,000 EU
Slide 27: TMS Base Case Economics – Key Assumptions
TMS Base Case Economics – Key Assumptions The production and opex assumptions are based on history and the capex costs are current development For personal use only projections Base Case Assumptions* Production Forecast EUR (30 Years) 30,000 700,000 Gas 0.16 Bcf Oil/Condensate 610 Mbbl 25,000 600,00
Slide 28: TMS Reserves & Resources
TMS Reserves & Resources1 For personal use only As an ASX participant Australis reports to the SPE PRMS Net Oil1 which requires any undeveloped reserves, that are to be 2019 Ryder Scott Reserves Estimate (MMbbls) assessed for reserves classification, are to be developed within a maximum 5 year tim
Slide 29: Portugal Prospectivity & Volumetrics
Portugal Prospectivity & Volumetrics For personal use only Proposed Work Program Batalha Gas Discovery Batalha Concession Prospects − Drill and test the gas discovery with a vertical well − Drill and core a deep Lamede well in a Lower Jurassic depocenter in the Pombal concession Volumetrics 2,4 Net
Slide 30: Footnotes
Footnotes For personal use only 1. All estimates and risk factors taken from Ryder Scott, report prepared as at 31 December 2019 and generated for the Australis concessions to SPE standards. See ASX announcement released on 10 February 2020 titled “Reserves and Resources Update Year End 2019”. The a
Slide 31: Units & Abbreviations
Units & Abbreviations Unit Measure Unit Measure B Prefix - Billions bbl Barrel of oil For personal use only MM or mm Prefix - Millions boe Barrel of oil equivalent (1bbl = 6 mscf) M or m Prefix - Thousands scf Standard cubic foot of gas /d Suffix - per day Bcf Billion standard cubic foot of gas Abbr
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