The information in this presentation: • Is not an offer or recommendation to purchase or subscribe for shares in Cooper Energy Limited or to retain or sell any shares that are currently held. • Does not take into account the individual investment objectives or the financial situation of investors. • Was prepared with due care and attention and is current at the date of the presentation. Actual results may materially vary from any forecasts (where applicable) in this presentation. Before making or varying any investment in shares of Cooper Energy Limited, all investors should consider the appropriateness of that investment in light of their individual investment objectives and financial situation and should seek their own independent professional advice. Qualified petroleum reserves and resources evaluator This report 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 Limited holding the position of Exploration Manager, 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. 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. Reserves and resources calculation Information on the company’s reserves and resources and their calculation are provided in the appendices to this presentation. Currency All financial information is expressed in Australian dollars unless otherwise specified 2
Cooper Energy’s gas strategy has delivered transformation 1 • now have a gas business that generates 75% of production • 2P reserves increased more than 8 times to 11 million boe moving to Operatorship of the major assets • portfolio 100% Australia 1 . • FY17 production upgrade is the start of a 6 year, >20 times 2 growth profile 2 Otway gas assets acquired drive production growth to FY19 • • Sole, then Manta, deliver step changes in 2019 then 2021 to exceed 10 MMboe per year. Sole set for sanction in March and 43 MMboe uplift to 2P reserves at FID, 4 times current levels 3 • gas contracts in place • development plan concluded Heads of Agreement aligning APA Group and Cooper Energy in Gippsland gas projects • final financing process underway. • 1 subject to completion of the Indonesia sale which is imminent 2 assuming existing equities 3
Financial results: lower oil price and volumes, impairments as international exit completed • Revenue of $11.0 million, down 25% on lower volumes and oil prices • Statutory net loss after tax $8.2 million vs H1 FY16 net loss of $34.1 million • Underlying net loss after tax of $3.5 million, down from pcp loss of $1.3 million • Cash and investments of $91.3 million. Cash of $63.5 million used on 10 January for Victorian Gas Asset consideration. Operations and business development: step change with addition of gas production and reserves • Safety & environment: zero lost time injuries; zero environmental incidents; single recordable case incident • Acquisition and integration of Victorian gas assets: immediate entry to south-east Australia gas market • Completion of $62 million equity raising • Strengthened management team and resources • Exit from Indonesia and Tunisia • FY17 Australia production expectations upgraded from 0.3 MMboe to 1 MMboe • Australian 2P reserves increased from 1.3 MMboe to 11.6 MMboe. Gippsland Basin gas projects: moved to full ownership, Sole project meets milestones for March go-ahead • move to 100% ownership of Sole • Sole pre-FID sales target met: 3 new agreements take gas contracted to 20 PJ pa • HoA with APA Group • Sole gas project final financing underway as development plan and project equity structure finalised. 4
Total Recordable Case Frequency Rate (TRCFR) • Single recordable case (Medical Treatment Injury – lizard bite in Events per million hours worked Indonesia) 8 • TRCFR 1 = 1.3 (versus FY16 TRCFR = 0.0) • Zero Lost Time Injuries 6 • Zero environmental incidents 4.2 • 358,000 hours worked (6 months to December 16) 4 Cooper Energy • Safety Cases and Environment Plans for Operatorship of commenced data acquired offshore assets prepared for submission collection in 2011 2.0 2.1 2.5 • Major upgrade to HSEC management systems in preparation for 2 1.3 Operatorship 0.0 0 2005 2007 2009 2011 2013 2015 H1 2017 APPEA Cooper Energy 1 TRCFR comprises the trailing 12 month average of lost time injuries plus medical treatment injuries per million hours worked 5
$ million unless otherwise indicated H1 FY17 H1 FY16 change Production MMbbl 0.19 0.25 ▼ - 24% Sales volume MMbbl 0.19 0.24 ▼ - 21% Sales revenue 11.0 14.6 ▼ - 25% Oil price average A$/bbl 58.82 60.58 ▼ - 3% Operating cash costs average A$/bbl 29.68 30.79 ▼ - 4% Gross profit 4.6 5.0 ▼ - 8% Gross profit/Sales revenue % 41.8% 34.2% ▲ + 7.6% Statutory loss after tax (8.2) (34.1) + 76% ▲ Underlying loss after tax (3.5) (1.3) ▼ -169 % Underlying EBITDA (3.9) 1.3 ▼ - 400% Cash flow from operations (6.1) 2.6 - 369% ▼ Total cash and investments 91.3 1 50.8 1 ▲ + 80% 1 Investments at fair value at balance date 6
$ million movement Sales revenue: Sales revenue: OGP Care & Admin and FY16H1 price volume Cost of Sales Other revenue Exploration w/o FX movements Mntnce other Tax impacts FY17H1 0 -1.3 Includes, acquisition & integration +0.6 costs, Tunisian -0.8 redundancy -0.4 +0.1 -3.5 -0.4 +3.3 -3.2 -2.8 +1.4 1 7
H1 FY 17 $ million Oil Sales revenue 11.0 Gross profit 4.6 Exploration expense 0.6 General administration 1 0.8 Underlying EBITDA 4.1 Underlying profit before tax 3.1 Income tax 0.9 Oil underlying net profit after tax 2.2 Gas 1 and Corporate 1 underlying loss after tax (5.7) Cooper Energy total underlying loss after tax (3.5) 1 General administration costs allocated 10% to Oil; 48% to Gas and 42% to Corporate 8
0.8 Investments (at fair value) 60.1 0.5 $ million Cash & Investments 90.5 deposits 1.0 (at fair value) 3.7 7.3 3.0 0.5 43.7 12.8 Cash & 49.8 deposits Operating cash flow Investing & FX (6.1) $46.8 Jun-16 Operations General Net Working Interest Operating E & D Equity issue FX & Other Dec-16 Admin Capital proceeds Movement 9
• Otway Basin and Gippsland Basin assets acquired effective 1 January 2017 • Application for operatorship proceeding, target end-June appointment • Implementing management system upgrades for new operatorship requirements including HSEC - JV accounting - production operations and maintenance - well operations - • Comprehensive safety cases and environmental plans prepared • Key operations and Sole Project Management Team staff to transition to Cooper Energy with Operatorship 10
Contingent resources (2C) 1 FY17 production 1 2P reserves 1 MMboe MMboe expected MMboe 74.4 11.6 66.8 1MMboe 41.6 Gas Gas Gas 10.4 36.7 Oil Oil Oil 0.24 – 0.28 MMbbl 1.3 1.1 7.6 4.9 Jun-16 Jan-17 Jun-16 Jan-17 Jun-16 Jan-17 • • • Australian contingent Addition of Otway gas Addition of 60 PJ of Otway resources 2C up 79% production Jan to Jun 17 Basin gas reserves • • • 128 PJ gas contingent Gas accounts for 75% of Gas accounts for 90% of resources (2C) added in anticipated FY17 production 11.6 MMboe 2P reserves. Gippsland 1 Australia only 11
March Quarter 2017 Sole Development plan finalised Project team transition Project ready to proceed and finalise finance Project Production licence offered by NOPTA Final construction and rig contracts early March Pre-sanction gas contract target achieved Gas contracts Move to 100% equity in Sole gas field Application for appointment as operator underway Joint Venture Upstream - Midstream HoA 1 with APA Group Completed exploratory discussions with financiers Financing Completed technical, legal and financial preparations Complete final phase of financing process 1 refer joint APA Group and Cooper Energy announcement 27 February 2017 12
• Development plan finalised with 2 horizontal wells * – encouraged by lower drilling costs * • 2 well development plan enhances project – lower technical risk, improved redundancy – 2C Contingent Resources 1 upgrade to 249 PJ – supports financing – field production capability increased from 68 TJ/day to 74 TJ/day (subject to onshore plant, capacity currently 68 TJ/day) • Upstream project cost estimate ~ $355 million – economies in second well: ~$140 million for 2 wells vs $83 million for initial well – some cost elements still being finalised: onshore contracting (expected early March ‘17 ) and rig contract • Fixed price contracts for upstream CAPEX items (except for drilling) *proposed under HoA announced 27 February 2017 1 Cooper Energy announced Sole Contingent Resources on 27 February 2017 and Manta Contingent Resource 16 July 2015. See notes in Appendices for information on reserves and resources calculation.. 13
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