FY13 Annual Results FY14 Outlook. 29 August 2013

Transcription

1 FY13 Annual Results FY14 Outlook 29 August 2013

2 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. Competent Person This report contains information on Cooper Energy s petroleum resources which has been reviewed by Mr Hector Gordon who is a full time employee of Cooper Energy, 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 5.11 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. 2

3 Conference call dial-in details Toll-free Australia: Toll: (can be used if dialing from international location) Toll-free international dial in: - Canada China Hong Kong Japan New Zealand Singapore United Kingdom United States Archive (available at 14:00 29 August 2013) : - 3

4 Business model and focus Total Shareholder Return and Health Safety Environment Community High margin oil Build gas supply & demand portfolio Strategy Fundamentals focus: market, technical, cost & commercial Leverage and grow strengths People Deep knowledge Delivery record Remuneration & results linked Funding Strong balance sheet Robust cash flow Undrawn facilities Oil & Gas Australia and Indonesia Assets Cooper Basin Otway Basin Gippsland Basin South Sumatra, Indonesia Leveraging strengths for TSR 4

5 FY13 key messages Our core business is strong - generating high margin cash flow + exploration success Oil transport interruptions deferred production and impacted results Portfolio upgraded substantially - contains number of catalysts and game-changers which will be tested in the coming 1 to 5 years. Hammamet West-3 testing to resume in coming days plan to monetise Tunisia portfolio in FY14 via divestment Organisation changes completed as planned strong financially and technically 5

6 FY13 results overview Revenue of $53.4 million, down 10% Net profit after tax $1.3 million down from $8.4 million Underlying net profit after tax of $12.7 million, down from $14.0 million Cash and investments of $68.1 million 1 Production of 0.49 MMbbls, down from 0.52 MMbbls due to transportation issues Reserves increased 15% to 2.16 MMbbl Exploration portfolio increased to 110 MMboe (risked basis) Adelaide Head Office relocation completed & new team with a record for delivery Board transition completed Announced intention to divest Tunisia portfolio $40 million finance facility, subject to finalisation of conditions precedent 1 Includes investments at fair value of $20.2 million at 30 June; at 28 August fair value of investments was $24.8 million 6

7 Key financial results $ million unless otherwise indicated FY13 FY12 Production MMbbl Sales volume MMbbl Oil price average AUD$/bbl Sales revenue Other revenue Net profit after tax Underlying NPAT Underlying EBITDA Underlying EBITDA/Sales revenue % Cash and term deposits Investments available for sale Total cash and investments Investments at fair value at 30 June 7

8 Underlying NPAT movement $ million FY12 Sales revenue Other revenue Production expenses Amortisation of E&D Admin & other costs Income tax expense FY13 Reduction due to deferred production and lower oil price partially offset by lower expenses and costs 8

9 Movement in cash and investments $ million Investments at fair value Investments at fair value (1) Cash & deposits Cash from operations + $12.4m Investing & Financing - $26.0m Cash & deposits Jun-12 Receipts Payments Tax Interest Operating E & D Investments FX Jun-13 1 Fair value at 28 August 2013: $24.8 million. 9

10 FY08 FY09 FY10 FY11 FY12 FY13 FY13 production ranks as second highest recorded First half impacted by Cooper Basin transport issues Second half increased with new Cooper Basin infrastructure, well tie-ins and Indonesia workover success 10

11 FY13 portfolio activities Cooper Basin Increased reserves Discoveries - Rincon Nth and Windmill In-fill drilling successes 2D & 3D seismic Indonesia Increased production & reserves Tangai workover Merangin III PSC added Otway Basin Sawpit-2 progressed assessment of unconventional gas potential Gippsland Basin Conditional farmins to prospective acreage Tunisia Hammamet West-3 encouraging results Decision to divest 11

12 Reserves and resources Reserves MMbbl as at 30 June P 2P 3P Cooper Basin Indonesia Total Movement in proved & probable reserves MMbbl Contingent Resources MMboe as at 30 June C 2C 3C Cooper Basin Tunisia Total July 2012 Production Exploration & revisions 30-Jun-13 1 Does not include Hammamet West 12

13 Portfolio: reserves and resources Reserves and risked resources MMboe 110 Prospective resources by risk 110 MMboe total 29 2P Reserves 2C Resources Prospective Resources Low Risk Medium Risk High Risk Hammamet West-3 impact to be determined post-well FY14 program addressing Cooper Basin, Otway & Gippsland Basin, Indonesia and Tunisia (Hammamet West-3) Exploration program will address material proportion of risked potential over next 3-5 years Reserves and resources statement to be issued in December quarter 13

14 Tunisia - Hammamet West-3 Results to date Initial results highly encouraging 432 metres of near horizontal Abiod drilled Strong oil and gas shows Open fractures interpreted on logs while drilling Presence of open hydrocarbon-bearing fractures confirmed Clean-up flow averaged 413 bbls fluid/day and surges to maximum 1,700 bbls fluid/day Contingent resource to be assessed when well completed Substantial potential in other Abiod prospects in Tunisia portfolio 14

15 FY14 guidance Total Exploration Development Wells # Australia Cooper Basin Otway Basin Gippsland Basin Indonesia FY11 FY12 FY13 FY14f Tunisia Total Includes Hammamet West-3 production test FY14 production forecast to increase by 10% - 18% Increased output from Cooper Basin and Indonesia Capex outlook is for increase from $19 million to $50 million Exploration expenditure in Australia (esp. Otway Basin) and Tunisia (completion of Hammamet West-3) Indonesia - seismic 15

16 Summary Restructuring, relocation and board transition has been completed Set for significant FY14 - production to increase 10%+ - game-changers and catalysts: HW-3 resources; Tunisian portfolio divestment and Otway drilling - leveraging of financial resources and investments Investing in acreage and plays for further growth - seismic in Cooper, Gippsland and Otway Basins and Indonesia - eastern Australia gas supply and demand Strong underlying core business - cash + cash flow - high margin reserves Strategy will continue to be fundamentals-driven: - technical and commercial + care - capital-prudent management 16

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18 Appendices Reconciliation of Statutory and Underlying profit FY14 major activities program Acreage and interests: - Cooper Basin - Otway Basin - Gippsland Basin - Indonesia - Tunisia Presenters Abbreviations 18

19 Reconciliation of statutory and underlying profit $ million 12 months ending 30 June Net profit after tax Adjusted for: Impairment of exploration assets held for sale PRRT derecognised/ (recognised) 11.0 (12.2) Underlying net profit after tax

20 FY14 major activities program Location License Operator Sept Qtr Dec Qtr Jan Qtr Jun Qtr Cooper Basin PEL 92 Beach Energy 3D processing and inversion 5 exploration wells 4 development wells Rincon 3D inversion Facilities expansion at Butlers, Callawonga PEL 90, 100,110 Senex 3D seismic Dundinna 3D Otway Basin PEL 495 PEP 150,168, 171 Beach Energy Beach Energy 2D & 3D Seismic Deep unconventional target well New 2D & 3D seismic Gippsland Basin Vic/P41 & 68 Bass Strait Oil 3D Reprocessing Reprocessing 3D seismic Bargou Cooper Energy HW-3 Tunisia Nabeul Cooper Energy 3D Reprocessing Hammamet Storm Ventures 2D & 3D Reprocessing Indonesia Sukananti KSO Sumbagsel Cooper Energy Cooper Energy 2D Seismic Appraisal, facilities upgrade Acquiring new 2D seismic 20

21 Cooper Basin Oil production and exploration - low cost & high margin - current approximately 1,500 bopd (net) Discovered 5.9 mill bbls (net) to date (1) Produced 4.1 mill bbls (net) to date (1) Production expect to increase in FY14 3D seismic over best areas by end 2013 Significant remaining potential - exploration and development replacing production - world class exploration success rate ~ 30%, - 2 new field discoveries from 6 wells in FY13 (1) As at 30 June 2013 Valuable production + high success rates 21

22 Otway Basin Proven basin for conventional plays Liquids prone Jurassic source rocks Close to markets & infrastructure Cooper Energy has strong regional position Sawpit-2 progressed assessment of unconventional play Deep drilling planned for FY14 Strong fundaments and valuable 22

23 Agreements (1) for COE to farm-in to Vic/P41 and Vic/P68 - contain sizeable gas prospects 19.9% interest in Bass Strait Oil Company (BAS) BAS assets include 5 offshore Gippsland Basin permits - gas exploration potential along northern margin COE providing technical and commercial support Range of development and market opportunities (1) Agreements subject to conditions Conventional gas close to market 23

24 Sukananti KSO (COE 55%) currently ~350 bopd (100% basis) multiple low risk opportunities profit hydrocarbons 15% oil / 20% gas (after costs) existing available infrastructure short pay-back periods 24 Low risk production upside

25 South Sumatra - onshore prolific hydrocarbon basin low technical risk & competitive terms Sumbagsel PSC (COE 100%) shallow oil targets (1-5 MMbbls) seismic 2013 / drilling 2014 CSG potential profit hydrocarbons 25% oil / 40% gas (after costs) farm-out planned Merangin III PSC (COE 100%) highly prospective & identified prospects adjacent to existing gas and oil fields CSG & shale gas potential profit hydrocarbons 30% oil / 35% gas (after costs) farm-out with strong interest already received Building material value at low cost 25

26 Many attractive features 3 contiguous permits, 12,600 km 2 extensive prospects and leads undeveloped resources nearby producing oil and gas fields competitive fiscal terms Hammamet West-3 results to date upgrades nearby prospects positive implications for Tunisia portfolio Plan to divest Tunisia portfolio greater value for Africa focused player Strategic exit - focussing core skills 26

27 Presenters David P. Maxwell Managing Director David Maxwell joined Cooper Energy in September 2011, bringing over 25 years experience as a senior executive with oil and gas companies such as BG Group, Woodside Petroleum and Santos. As Senior Vice President at QGC - a BG Group business he was responsible for all commercial, exploration, business development, strategy and marketing activities. He led BG Group s entry into Australia, its involvement in the alliance with Queensland Gas Company Limited and its subsequent takeover by BG Group. David Maxwell was previously director of gas and marketing with Woodside in Perth and a member of Woodside s executive committee. Hector M. Gordon Executive Director- Exploration and Production Hector Gordon joined Cooper Energy in July 2012 having been Managing Director of Somerton Energy when it was acquired by Cooper in An experienced and successful geologist with over 35 years' experience in the petroleum industry, he was previously an Executive Director with Beach Energy where he was employed for more than 16 years and performed number of roles including Exploration & Production Manager, Chief Operating Officer and, ultimately, Chief Executive Officer. Hector Gordon s previous employers also include Santos, AGL Petroleum, TMOC Resources, Esso Australia and Delhi Petroleum. Jason de Ross Chief Financial Officer Jason de Ross joined Cooper Energy in September 2012, bringing 20 years experience in finance, treasury, strategy and commercial management, mostly in the resources sectors. Prior to joining Cooper Energy he was employed by OZ Minerals as Group Manager Commercial Operations with responsibility for accounting, planning & analysis, business improvement, procurement and contract management. Jason de Ross was previously Group Commercial Manager and Treasurer with the Futuris/Elders Group. 27

28 Abbreviations bbls boe bopd EBIT EBITDA MMbbl MMboe NPAT TSR barrels of oil barrel of oil equivalent barrel of oil per day earnings before interest and tax earnings before interest, tax, depreciation and amortisation million barrels of oil million barrels of oil equivalent net profit after tax total shareholder return 1P reserves Proved reserves 2P reserves Proved and Probable reserves 3P Proved, Probable and Possible reserves 1C, 2C, 3C High, medium and low estimates of contingent resources 28