Australis Oil & Gas Ltd. · ASX:ATS
Australis Oil & Gas — Investor Presentation (September 2016)
31 slides from Australis Oil & Gas's investor presentation, Sep 2, 2016
Slide 1: Australis Oil & Gas Limited Corporate Presentation
For personal use only Australis Oil & Gas Limited September 2016 Corporate Presentation ATS Corporate Presentation – September 2016
Slide 2: 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 o
Slide 3: Australis Oil & Gas (ASX:ATS) Overview
Australis Oil & Gas (ASX:ATS) Overview For personal use only A new oil and gas company with a counter cyclical investment strategy. Targeting quality onshore assets, primarily in the U.S. In present industry environment, focused on securing assets. Value derived from entry price, organic ass
Slide 4: Execution – Delivery of Value
Execution – Delivery of Value Growth where it counts For personal use only Australis is focused on growth in value per share, not size by market cap, production, reserves or head count. Key drivers are:- Be selective. Maintain discipline on asset quality and potential for significant revaluation.
Slide 5: Executing a focused strategy
Executing a focused strategy For personal use only Counter cyclical investment strategy in oil and gas assets, particularly in the U.S. to take advantage of current market conditions A core focus on the U.S. has a number of advantages: Consistent with management’s experience and track record.
Slide 6: Timing
Timing The right place, the right assets, the right price For personal use only US O&G industry at an inflection point. Prolonged oil price environment driving quality assets to market. Australis believes that lower oil prices caused by an oversupply - recent indications that it is reducing.
Slide 7: Strategy Execution
Strategy Execution Where we are at post IPO For personal use only Initial assets acquired. Tuscaloosa Marine Shale (TMS) – Appraisal Asset. • Core acreage position secured. • Current focus is on leasing program – successfully underway. • No requirement for development capital spend in current ma
Slide 8: Asset Portfolio – Appraisal Assets
For personal use only Asset Portfolio Appraisal Assets ATS Corporate Presentation – September 2016 8
Slide 9: Tuscaloosa Marine Shale (TMS)
Tuscaloosa Marine Shale (“TMS”) Asset is consistent with our strategy For personal use only The TMS is an oil rich, over pressured, naturally fractured unconventional shale play in Louisiana and Mississippi. The TMS is on trend with the Eagle Ford Shale and has a similar Cretaceous aged shallow
Slide 10: TMS Acquisition
TMS Acquisition Well positioned in the play For personal use only Acquired a 50% working TMS Core Area TMS Modern Offset Wells (red) interest in ~33,000 gross used for ATS type curve acres (May 2016), mostly contiguous and within the delineated core area of the play. Contingent 2C resource for 5
Slide 11: TMS Lease Position
TMS Lease Position An increased position in the core of the play For personal use only Land leasing program and budget agreed for 2016 & 2017 Target to increase acreage to approx. 22,500 net acres with 5 year lease life. TMS leasing program underway and exceeding targets. Focused in producti
Slide 12: TMS Upside - An Emerging Play
TMS Upside - An Emerging Play Compares favourably to Eagle Ford wells For personal use only Recent wells show TMS vs Eagle Ford – Cumulative oil production significant improvement in production performance. Current performance compares favourably to Aurora’s Eagle Ford oil wells. Significant i
Slide 13: Australis TMS Single Well Type Curve
Australis TMS Single Well Type Curve ATS type curve history matched to actual production from TMS Modern Offset Wells2 For personal use only Cumulative Oil Production Australis Type Curve Assumptions Modern Offset TMS Completions v Australis Base Type Curve Oil EUR – 499 Mbbls 200,000 20 180,000 1
Slide 14: TMS Single Well Values
TMS Single Well Values Upside with improved well cost, productivity and oil price4 For personal use only Australis Single TMS well economic sensitivities – Pre Tax NPV 10 (US$ million) EUR Well Cost WTI/bbl Base Case Base Case +5% Base Case +10% 538 Mboe 565 Mboe 592 Mboe US$50 $0 $0.4 $1.0 US$11 mi
Slide 15: TMS Potential
TMS Potential Significant independent resource estimates For personal use only Independent Net Resource Estimate5, 6 Low 1C Best 2C High 3C Well spacing (acres) 970 320 - 485 194 - 240 Average Recovery Factor 7.5% 8.0% 9.4% Oil (MMbbl) 4.6 13.0 29.9 Gas (Bcf) 1.6 4.5 10.5 Oil Equiv. (MMboe) 4.9 13.7
Slide 16: Asset Portfolio – Exploration Assets
For personal use only Asset Portfolio Exploration Assets ATS Corporate Presentation – September 2016
Slide 17: Portugal
Portugal Limited onshore exploration to date For personal use only Other concession holders include Repsol SA, ENI S.p.A, Galp Energia, Kosmos Energy & Partex Oil & Gas. Limited exploration to date, no domestic production. Total well count ~ 175 (148 onshore). 117 had shows and 27 were tested.
Slide 18: Australis Portuguese Concessions
Australis Portuguese Concessions Large onshore acreage with excellent fiscal terms. For personal use only Awarded two onshore concessions (Batalha and Pombal)8 - 620,000 acres or 2,510 km2. Covers a large section of the Lusitanian Basin to the north of Lisbon. Large aeromagnetic survey, a broa
Slide 19: Portuguese Concessions Activities and next steps
Portuguese Concessions Activities and next steps For personal use only Technical evaluation has been focused on the Batalha concession and the existing contingent resource allocation by NSAI within the Jurassic carbonate sequences. Review of analysis immediately revealed that estimates based on
Slide 20: Portuguese Potential
Portuguese Potential Independently assessed by NSAI9 – May 2016 For personal use only Net Contingent Resource – conventional 10 Oil (MMbbl) Gas (Bcf) Oil Equivalent (MMboe) Low (1C) 0.0 83.6 13.9 Best (2C) 0.0 234.1 39.0 High (3C) 0.0 409.6 68.3 Net Prospective Resource – conventional and unconventi
Slide 21: Corporate
For personal use only Corporate ATS Corporate Presentation – September 2016
Slide 22: Capital
Capital Shares and Options Shares Options11 Ownership For personal use only (millions) (millions) Pre Post Exercise of Options Directors & Management 98.3 86.7 28.8% 41.6% Shareholders 243.3 16.6 71.2% 58.4% Total 341.6 103.3 100% 100% Exercise value ($ million) $31.0 Directors & Management Cont
Slide 23: Directors / Management
Directors / Management Demonstrated track record in oil & gas For personal use only Graham Dowland – Finance Jon Stewart - Chairman Director 25 years in the upstream oil and gas industry 25 years experience in the oil and gas industry Founder and former Chairman and CEO of Aurora Oil & Gas
Slide 24: Australis Oil & Gas - Summary
Australis Oil & Gas - Summary Key investment highlights For personal use only A deliberate and considered strategy To take advantage of market current conditions in the oil & gas industry to build a high quality portfolio including exploration, appraisal and proven assets with potential leveraged
Slide 25: Additional Information
For personal use only Additional Information ATS Corporate Presentation – September 2016 25
Slide 26: Option Terms Summary
Option Terms Summary For personal use only Existing Options on issue Exercise Price Vesting Expiry Number $0.25 vested 31 Dec 2020 19,675,000 $0.30 (Series A) 13 Nov 2016A 31 Dec 2020 27,775,000 $0.30 (Series B) 13 Nov 2016A 31 Dec 2020 1,000,000 $0.35 (Series A) 13 Nov 2017A 31 Dec 2022 27,775,000
Slide 27: TMS Single Well Type Curve
TMS Single Well Type Curve Base Case (US$) Australis Base Assumptions Production Forecast For personal use only 30,000 600,000 Future Well Type Curve Target Lower TMS 25,000 500,000 EUR Gas 0.13 bcf Oil/Condensate 499 mbbl 20,000 400,000 Cum Production (boe) NGLs 17 mbbl Production (bbl/mscf/boe) EU
Slide 28: TMS Modern Offset Wells
TMS Modern Offset Wells The monthly oil production data for well data used to compile the graph on slide 12 of modern offset wells is summarized in the For personal use only table below Denkmann Longleaf 29H Longleaf 29H Mathis 29- Mathis 29- Lawson 25- C. H. Lewis VERBERNE WILLIAMS Well Name Spears
Slide 29: TMS vs Eagle Ford Wells
TMS vs Eagle Ford Wells TMS Wells For personal use only 1. Of the approximate 80 wells drilled in the TMS, 57 wells have been drilled within the Australis designated TMS Core Area. 2. Of the 57 wells, 5 have been excluded from this analysis of the productivity of the TMS Core Area over time due to m
Slide 30: Footnotes
Footnotes 1. Where a mineral rights tenement is subject to an existing lease, but that lease is nearing its primary term or extension period expiry date and its For personal use only commitment terms are unlikely to be met then a Top Lease provides a mechanism to secure terms for a replacement lease
Slide 31: Glossary
Glossary For personal use only Unit Measure Unit Measure B Prefix - Billions bbl Barrel of oil MM Prefix - Millions boe Barrel of oil equivalent (1bbl = 6 mscf) M Prefix - Thousands scf Standard cubic foot of gas /d Suffix - per day Abbreviation Description WI Working Interest C Contingent Resources
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