Gas project development Oil production Exploration Bungaloo-1 Otway Basin Orbost gas plant David Maxwell, Managing Director 3 September 2015
Important Notice – Disclaimer 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 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. Presentation to RIU Good Oil Conference 3 September 2015 2
Cooper Energy …… a re-introduction Since 2002 Cooper Energy’s business has been onshore oil production and exploration….. …we are now in the midst of transforming to one of Australia’s largest mid-cap gas producers, whilst retaining our low cost oil production Presentation to RIU Good Oil Conference 3 September 2015 3
Indicative Cooper Energy production from existing assets Current projects have capacity to take production from 0.5 to 5 million boe pa FY22 • Low cost • Conventional • Proven technologies FY20 Gippsland liquids Gippsland gas Existing oil with exploration & appraisal FY15 Oil production 0.5 MMbbls Gas production 12.5 PJ Gas production 27.5 PJ Oil production: 0.5 MMbbls Liquids production: 0.6 MMbbls Oil production: 0.3 MMbbls Presentation to RIU Good Oil Conference 3 September 2015 4
Reserves and Contingent Resources at 30 June 2015 Cooper Basin & Indonesia oil Reserves; Gippsland Basin Contingent Resources 2P Reserves 1 Australia Indonesia Total Million barrels Developed 1.16 1.02 2.18 Undeveloped 0.22 0.68 0.90 Total 1.38 1.70 3.08 2C Contingent 1 Gas Oil Total MMboe Resources PJ MMbbl Australia 197.0 5.2 38.8 Indonesia 1.7 2.3 2.6 Tunisia 5.6 16.1 17.0 Total 204.3 23.6 58.4 1 Reserves and Contingent Resources as at 30 June 2015 were announced to the ASX on 17 August 2015 and should be read in conjunction with the information provided on the calculation of Reserves and Contingent Resources in the appendices. Cooper Energy is not aware of any new information or data that materially affects the information provided in those releases and all material assumptions and technical parameters underpinning the assessment provided in the announcements continues to apply. Presentation to RIU Good Oil Conference 3 September 2015 5
Oil production Maintaining ~ 500,000 barrels per annum, low production cost that generates cash, plus hedging in place Production costs FY16 production guidance Direct cost A$ per MMbbl barrel 0.59 0.55 0.52 0.49 0.50 – to 0.48 0.47 Netback 0.45 0.41 Royalties 7 15 Transport Op. costs 16 FY11 FY12 FY13 FY14 FY15 FY16G • Annual production of ~ 500,000 bbls pa Hedge arrangements (bbls remaining): Sep 1– Dec 31 FY16H2 Total 2015 • FY16 guidance: 450,000 – 550,000 bbls 83,332 - 83,332 A$50/bbl put options – timing of well connections 40,000 60,000 100,000 A$80.00 – 90.57/bbl collar options – drilling results 123,332 60,000 183,332 Total Presentation to RIU Good Oil Conference 3 September 2015 6
Oil business: Cooper Basin PRLs 85-104 (ex-PEL 92) & PEL 93 PEL 92 replaced 120% of 2015 production PEL 92 key 2015 outcomes: • oil production of 400 kbbls • $35/bbl total operating cost including transport and royalties • 2 successful wells (Callawonga 10 & 11) • 2P reserve additions replaced 120% of year’s production • studies highlight • additional undeveloped potential in existing fields • new (non Top Namur) prospectivity identified PEL 93/PPL 207 • Worrior field reserves downgraded on performance at 30 June 2015 • contingent well in PPL 207 for FY16 Northern permits (PEL 90K, 100 and 110) exploration: • 3 wells: 1 cased & suspended; 2 unsuccessful • reprocessing Dundinna 3D seismic survey underway FY16 activity: • 2 exploration wells and 2 development wells PRL 85 – 104 • 6 contingent wells dependent on drilling results and prospectivity studies Presentation to RIU Good Oil Conference 3 September 2015 7
Indonesia 2015 production up 36% and reserves up 260% • Full year production up from 55 kbbls to 75 kbbls • Total operating cost of A$45/bbl including transport • Bunian-3 appraisal/development well success : - TRM3 Sand developed and new K1 gas and oil pool discovered - KSO reserves increased from 0.5 MMbbls to 1.7 MMbbls - production rate increased to 785 bopd, limited by facilities constraints - plans to debottleneck facilities and increase production in stages up to 1,200 bopd then to 2,000 – 3,000 bopd by end CY16 Indonesian quarterly production • Bunian-4 successful. Preparing for production tests . barrels of oil per day, COE share - successfully appraised TRM3 Sand, intersected 17 metres high to 500 prognosis 400 - identification of new potential hydrocarbon bearing GRM Sandstone, net 3.5 metres 300 200 100 0 Presentation to RIU Good Oil Conference 3 September 2015 8
The opportunity in gas COE identified opportunities in the emerging shortfall between forecast demand and existing contracts Eastern Australia demand and contracted supply (PJ) 800 Contracted supply from: 700 Gippsland Forecast east coast domestic demand 600 Otway 500 Bass 400 Contract opportunity Sydney Basin 300 Cooper 200 Surat-Bowen 100 Domestic demand (AEMO) 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Source: EnergyQuest Presentation to RIU Good Oil Conference 3 September 2015 9
Gippsland Basin gas projects Focussed on project ‘do-ability’, access to market and value Portfolio in place • Acquired 50% of VIC/RL3 including Sole gas field • Acquired 50% of Orbost gas plant • Completed transfer of VIC/L 26, L2, L28 (BMG) Resources increased • Increased gas 2C Contingent Resources from 78 PJ to 197 PJ, COE share • Gross gas 2C Resources in COE projects taken to 317 PJ Project development advancing • Sole in FEED for FID from mid CY16 • Sole lead contractors selected for both onshore and offshore/sub-sea • BMG Business Case completed; identified Manta Gas Project opportunity Gas contracting underway • Heads of Agreement (HoA) signed with OI Australia for 1 PJ pa from Sole • Other sales agreements negotiations well advanced - targeting HoA announcements within 2015 Funding plan identified • Funding structure to include the optimum mix of options for best shareholder value • Project finance expected on securing of bankable gas contracts Presentation to RIU Good Oil Conference 3 September 2015 10
Gippsland Gas Projects and Orbost Gas Hub Marketable gas volumes, existing plant and pipeline access in place to Melbourne Eastern Gas Pipeline to Sydney Orbost Gas Hub COE 50%, STO 50% Sole Gas field COE 50%, STO 50% & Operator Patricia Baleen (depleted) (STO 100%) ~211* PJ Longtom (SVW 100%) 2.6 *MM ~106* PJ Manta Gas field bbls COE 65% & Operator, BPT 35% * 2C Contingent Resources 100% joint venture volume Presentation to RIU Good Oil Conference 3 September 2015 11
Sole and Manta gas production profile 1 : 100% Joint Venture volume Gas sales revenue of $1.9 - $2.9 billion at $6 - $9 /GJ and additional revenue from liquids Indicative gross PJ • Gippsland gas projects can produce approximately 60 320 PJ (gross) from current projects • Peak production circa 50 PJ p.a. and plateaus for 50 4-5 years from FY22 23 23 23 23 • Gas price of $8/GJ generates A$400 million 40 revenue per annum in the plateau period 13 • Near field exploration and third party agreements 10 30 Manta will likely increase/extend the plateau 25 25 25 25 25 25 25 24 20 Sole 10 0 8 0 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 1 Indicative only and subject to key milestone achievement and joint venture decision Presentation to RIU Good Oil Conference 3 September 2015 12
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