Mr David Maxwell Managing Director s AGM Address presentation - - PowerPoint PPT Presentation
Mr David Maxwell Managing Director s AGM Address presentation - - PowerPoint PPT Presentation
Mr David Maxwell Managing Director s AGM Address presentation Important Notice Disclaimer This investor presentation (Presentation) is issued by Cooper Energy Limited ABN 93 096 170 295 (Cooper Energy or COE). Summary
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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 and should not be considered to be comprehensive or to comprise all the information which a shareholder or potential investor in Cooper Energy may require in order to determine whether to deal in Cooper Energy shares. The information in this Presentation is a general background and does not purport to be complete. It should be read in conjunction with Cooper Energy’s periodic reports and other continuous disclosure announcements released to the Australian Securities Exchange, which are available at www.asx.com.au. Not financial product advice: This Presentation is for information purposes only and is not a prospectus under Australian law (and will not be lodged with the Australian Securities and Investments Commission) or financial product or investment advice or a recommendation to acquire Cooper Energy shares (nor does it or will it form any part of any contract to acquire Cooper Energy shares). It has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek legal and taxation advice appropriate to their jurisdiction. Cooper Energy is not licensed to provide financial product advice in respect of Cooper Energy shares. Cooling off rights do not apply to the acquisition of Cooper Energy shares. Past performance: Past performance and pro forma historical financial information given in this Presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication
- f future performance. The historical information included in this Presentation is, or is based on, information that has previously been released to the market.
Future performance: This Presentation may contain certain statements and projections provided by or on behalf of Cooper Energy with respect to anticipated future undertakings. Forward looking words such as, “expect”, “should”, “could”, “may”, “predict”, “plan”, “will”, “believe”, “forecast”, “estimate”, “target” and other similar expressions are intended to identify forward-looking statements within the meaning
- f securities laws of applicable jurisdictions. Indications of, and guidance on, future earnings, distributions and financial position and performance are also forward-looking statements. Forward-looking
statements, opinions and estimates provided in this Presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward-looking statements, including projections, forecasts, guidance on future earnings and estimates, are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. There can be no assurance that actual outcomes will not differ materially from these forward-looking statements. Qualified petroleum reserve and resources evaluator: This Presentation contains information on petroleum reserves and resources which is based on and fairly represents information and supporting documentation reviewed by Mr Andrew Thomas who is a full time employee of Cooper Energy holding the position of General Manager, Exploration & Subsurface, holds a Bachelor of Science (Hons), is a member of the American Association of Petroleum Geologists and the Society of Petroleum Engineers and is qualified in accordance with ASX Listing Rule 5.41 and has consented to the inclusion of this information in the form and context in which it appears. Reserves and Contingent Resources estimates: Information on the company’s reserves and resources and their calculation are provided in the appendices to this presentation. Investment risk: An investment in Cooper Energy shares is subject to investment and other known and unknown risks, some of which are beyond the control of Cooper Energy. None of Cooper Energy, any
- f its related bodies corporate or any other person or organisation guarantees any particular rate of return or the performance of Cooper Energy, nor do any of them guarantee the repayment of capital from
Cooper Energy or any particular tax treatment. Not an offer: This Presentation is not and should not be considered an offer or an invitation to acquire Cooper Energy shares or any other financial products and does not and will not form any part of any contract for the acquisition of Cooper Energy shares. This Presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States or to, or for the account or benefit of, any “U.S. person” (as defined in Regulation S under the US Securities Act of 1933, as amended (“Securities Act”)) (“U.S. Person”). Cooper Energy shares have not been, and will not be, registered under the Securities Act or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold in the United States or to any U.S. Person absent registration except in a transaction exempt from, or not subject to, the registration requirements of the Securities Act and any other applicable securities laws. This document may not be distributed or released in the United States or to any U.S. person. Rounding: All numbers in this presentation have been rounded. As a result, some total figures may differ insignificantly from totals obtained from arithmetic addition of the rounded numbers presented. Currency: All financial information is expressed in Australian dollars unless otherwise specified. P50 as it relates to costs is best estimate; P90 as it relates to costs is high estimate
Important Notice – Disclaimer
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Gas business model
Optimisation of gas supply to a portfolio of gas contracts from a portfolio of gas assets among the most competitive sources of supply for south-east Australia
245 24 43
2P Gas Reserves1 PJ
Sole Otway developed Otway undeveloped
Gippsland Hub Otway Hub
1 Information on reserve and resource announcement and calculation is provided on slide 15 in the
printed version of this presentation
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~11 23 23 23 23 23 21 20 17 13 3
3 7 10 11
FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30
Sole uncommitted sales capacity Sole uncontracted Sole contracted
Sole Gas Project
Gas to plant expected in December for step change in production following start-up
* Note
- Sole sales subject to project completion and Orbost Gas Plant availability. APA advise Sole gas
to flow to plant in December at a date to be advised.
- The volumes charted show Sole production from 1 January 2020 onwards at the plant design
rate of 68 TJ/day. Achievement of plant production rates earlier or later than the 1 January will result in variation to the indicative volumes illustrated.
Orbost Gas Plant Indicative Sole gas contract profile PJ/pa
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Manta
Second phase Gippsland development leveraging Sole and Patricia Baleen infrastructure
Manta indicative development concept
Manta Contingent Resource1 estimate 1C 2C 3C Condensate MMbbl 2.2 3.4 5.4 Gas PJ 78 121 190
- Development concept for Contingent Resource utilising
infrastructure in place at Sole and Patricia Baleen
- Appraisal well, Manta-3, required for development
decision
- Production of 18 PJ pa gas modelled plus 0.5 million
barrels condensate pa average
- Substantial deeper exploration target
- Candidate for FY21/22 drilling program; production
from 2024 possible subject to drilling results, sequencing and FID
1 Information on reserve and resource announcement and calculation is provided on slide 15 in the
printed version of this presentation
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Gippsland exploration acreage
Two permits located adjacent to producing or produced fields
VIC/P72
- Adjoins Patricia Baleen
- Seismic inversion study conducted
- Interpretation to identify prospects for commitment well
underway VIC/P75
- Granted September 2019
- Commitment to conduct seismic reprocessing and studies
- Surrounded by large producing oil and gas fields
- Modern seismic processing to be applied for greater clarity to
subsurface definition of additional prospectivity
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Otway Basin gas hub
Existing production & infrastructure, high drilling success rate and access to Minerva Gas Plant
* Cooper Energy share to increase to 50% on completion of Minerva Gas Plant acquisition
Gas production
- Casino, Henry and
Netherby fields
- Supply agreements with
Origin (CY19) and AGL (CY 2020)
Development projects & candidates
- Minerva Gas Plant
- Henry development well
- Black Watch gas field
- Annie gas discovery
Exploration
- Proven gas province
- Successful FY19 drilling
- New campaign in planning
for 2021/22 (subject to rig availability)
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Minerva Gas Plant
Acquisition and connection to benefit production, cost and enable firm gas supply offering
- Completion of acquisition transaction anticipated by December 2019
- Development project to connect for production from Casino, Henry, Netherby by mid-2021
- Lower plant inlet pressure to improve recovery and lift production rates
- Capacity for new discoveries
- Cost efficient processing, enables firm gas supply to be offered
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Annie gas discovery
New discovery, favourably located for development. Volumetric assessment underway.
- New gas field discovery exhibiting excellent reservoir properties
- 62 metre net gas pay from Waarre C reservoir which produces in Minerva and Casino
- Work to assess volume and Contingent Resources is underway
- Close to existing Casino pipeline and Minerva Gas Plant
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VIC/P76
Ideally located for development with drill ready prospect similar to Annie
- Adjoins existing acreage
- Contains part of Annie gas discovery
- Nestor - “Annie look-alike” prospect
- Existing pipeline traverses VIC/P76
- Covered by good quality 3D seismic
- Commitment to drill 1 well
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Casino Henry
Existing production & infrastructure, undeveloped reserves and access to Minerva Gas Plant
* Cooper Energy share to increase to 50% on completion of Minerva Gas Plant acquisition
- Production from Casino, Henry and Netherby
gas fields
- Operated by Cooper Energy (50% interest),
joint venture with Mitsui E&P Australia
- Estimated gross 86 PJ undeveloped 2P gas
reserves1 (Cooper Energy share 50%) accessible through new production well and connection to Minerva Gas Plant
- Heny-3 proposed as new development well for
uplift to developed reserves and increased production
- Minerva Gas Plant connection to deliver cost
and productivity benefits to Casino Henry
- perations
1 Information on reserve and resource announcement and calculation is provided on slide 15 in the
printed version of this presentation
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- Dombey-1DW1 gas discovery in
September
- 25 metre net gas column in Pretty Hill
formation reservoir
- Conventional gas well
- Well cased and suspended for
production test expected December 19
- Implications for north western and south-
eastern Penola Trough prospectivity to be evaluated
- Gas plant, pipelines and gas customers
nearby
Onshore Otway gas exploration
New field discovery in Pretty Hill Formation. Well to be production tested.
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Cooper Basin
Drilling ramping up to highest level yet in low-cost high margin oil acreage
4 11 11 12 7 8 9 2
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FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Cooper Basin wells drilled Cooper Energy wells
Wells drilled FY20 planned
- Escalated drilling program with up to 19 wells planned in FY20
- Parsons 3 well program extended oil field boundaries and expected to result in
reserve addition
- Up to 12 appraisal wells scheduled for Butlers, Callawonga and Rincon Nov 2019
– Jan 2020
- Development well drilling (up to 3 wells) planned in H1 CY20 pending appraisal
drilling results
- Up to 3 exploration wells in H2 FY20
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- Sole: commenced supply and began exploration
- f de-bottlenecking upside
- Dombey: production test and (subject to results)
commence planning appraisal or development
- Minerva Gas Plant: acquired and taken FID
- Cooper Basin: drill up to 16 wells and completed
appraisal and exploration program
- Annie: announced Contingent Resource
- Gas contracts: negotiated sales agreements for
Casino Henry gas from 1 January 2021
- Henry development: Henry-3 FID
- Drilling rig: contract for 2021/22 campaign
6 to 24 month look ahead
Expectations for coming period to June 20 and potential program to June 21
Expected program to June 20
- Annie: FID & reserve booking
- Offshore Otway development: key regulatory
approvals secured for any pending offshore development at Henry &/or Annie. Long lead items ordered
- Exploration candidates: offshore Otway and
Gippsland prospects identified, assessed and ranked
- Manta-3: well engineering and procurement
- Onshore Otway: Dombey development or
appraisal (subject to test results & analysis)
- Minerva Gas Plant: Connected and ready for
first gas… with a new name! Potential program By mid-CY2021
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Development Exploration & appraisal
- Henry-3
- Black Watch
- Annie (subject to
resource assessment)
- Elanora
- Nestor
- Other prospects
- Manta (subject to
appraisal)
- Manta Deep
- VIC/P72
- VIC/P75
- PEL 92 in-fill drilling
- Field appraisal
- New prospects
- Dombey?
- Dombey
development and appraisal?
- Other prospects
Portfolio optimisation for shareholder value
Solving for “Which combination and sequence provides the best value for shareholders?”
Offshore Otway Gippsland Cooper Basin Onshore Otway
✓ options ✓ timing ✓ sequencing Optimise:
For best value per share
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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 based on information provided by the permit Operators Beach Energy Ltd, Senex Ltd, Santos Ltd, and BHP Billiton Petroleum (Victoria) P/L in accordance with the definitions and guidelines in the Society of Petroleum Engineers (SPE) 2007 Petroleum Resources Management System (PRMS). Petroleum reserves and contingent resources are typically prepared by deterministic methods with support from probabilistic methods. The resources estimate methodologies incorporate a range of uncertainty relating to each of the key reservoir input parameters to predict the likely range of outcomes. Project and field totals are aggregated by arithmetic summation by category. Aggregated 1P and 1C estimates may be conservative, and aggregated 3P and 3C estimates may be optimistic due to the effects of arithmetic summation.
Reserves
Under the SPE PRMS, reserves are those petroleum volumes that are anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions. The assessment includes Reserves in the Gippsland, Otway and Cooper Basins. Reserves were announced to the ASX on 12 August 2019. Cooper Energy is not aware of any new information or data that materially affects the information provided in that release and all material assumptions and technical parameters underpinning the assessment provided in the announcement continues to apply. The Otway Basin totals comprise the arithmetically aggregated project fields (Casino-Henry-Netherby and Minerva). The Cooper Basin totals comprise the arithmetically aggregated PEL 92 project fields and the arithmetic summation of the Worrior project Reserves. The Gippsland Basin total comprises Reserves in Sole field only. All Reserves exclude Cooper Energy’s share of future fuel usage.
Contingent Resources
Under the SPE PRMS, contingent resources are those petroleum volumes that are estimated, as of a given date, to be potentially recoverable from known accumulations but for which the applied projects are not considered mature enough for commercial development due to one or more contingencies. The assessment includes Contingent Resources in the Gippsland, Otway and Cooper Basins. Cooper Energy announced its assessment of Contingent Resources to the ASX on 12 August 2019. Cooper Energy is not aware of any new information or data that materially affects the information provided in that release and all material assumptions and technical parameters underpinning the assessment provided in the announcement continues to apply.
Rounding
Numbers in this presentation have been rounded. As a result, some total figures may differ insignificantly from totals obtained from arithmetic addition of the rounded numbers presented.
17 $, A$ Australian dollars unless specified otherwise APA APA Group Bbl barrels of oil Boe barrel of oil equivalent EBITDA earnings before interest, tax, depreciation and amortisation FEED Front end engineering and design FID Final Investment Decision kbbl thousand barrels m metres MMbbl million barrels of oil MMboe million barrels of oil equivalent NPAT net profit after tax PEL 92 Joint Venture conducting operations in Western Flank Cooper Basin Petroleum Retention Licences 85–104 previously encompassed by the PEL 92 exploration licence PEL 93 Joint Venture conducting operations in Cooper Basin Petroleum Retention Licences PRL 231-233 previously encompassed by the PEL 93 exploration licence PJ Petajoules (1015 joules) TRCFR Total Recordable Case Frequency Rate. Recordable cases per million hours worked YTD Year to date 1P Reserves Low estimate of Reserves - Proved Reserves 2P Reserves Best estimate of Reserves. The sum of Proved and Probable Reserves 3P Reserves High estimate of Reserves. The sum of Proved, Probable and Possible Reserves 1C, 2C, 3C high, best and low estimates of Contingent Resources