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NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited

Awe Limited · Nov 20, 2014 · 69 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 1
  2. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 2
    Opening Welcome, AWE Limiteds 2014 AGM Bruce Phillips, Chairman 2
  3. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 3
    Introduction to directors 3
  4. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 4
    Introduction of directors 4
  5. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 5
    Indonesian Advisory Board Members Evita is the former Director General of Oil & Gas of the Ministry of Energy and Mineral Resources (2008-2012). She was a Commissioner of PT Pertamina (Persero) from May 2010 to April 2013. Evita…
  6. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 6
    Todays formal business Notice of meeting Accounts and reports Chairmans address Managing Directors report Questions Resolution 1 - Remuneration report Resolution 2(A) - re-election of Bruce Phillips as a director Resolution 2(B)…
  7. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 7
    Bruce Phillips Chairman 7
  8. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 8
    AWE share price performance Price Performance (indexed as of 01/07/13) 160 150 140 130 120 110 100 90 80 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 AWE ASX200…
  9. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 9
    AWE asset locations 9
  10. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 10
    AWE relative to peers Enterprise Value / 2P Reserves ( / boe) Reserve Life (years) AWE AWE 0 10 20 30 0 10 20 30 Source: Company filings, Bloomberg Notes: 1. Peer group includes Beach Energy, Drillsearch, Horizon Oil,…
  11. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 11
    AWE share price since offer 180 160 140 120 100 80 60 40 20 0 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 AWE Bidder 11
  12. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 12
    Bruce Phillips Chairman 12
  13. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 13
    Bruce Clement Managing Director 13
  14. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 14
    Agenda The Year in Review Positioned for Growth Cornerstone Projects Perth Basin Update Other Opportunities Looking Ahead 15
  15. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 15
    Year in Review For the 12 months to 30 June 2014 16
  16. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 16
    Financial and Operational Highlights Exceeded operational goals for the year, e.g. production, revenue, portfolio management and HSE Accelerated drilling, increased production and increased Reserves and Contingent Resources at…
  17. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 17
    Production and Revenue Total Production 5.6 million BOE, up 13% Sales Revenue 328.2 million, up 9% Operating cash flow 154.3 million, up 18% Statutory NPAT * 62.5 million, up 213% Average Realised Oil and Condensate Price 109…
  18. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 18
    EBITDAX and Investment Field EBITDAX 208.8 million, up 13% Development and Exploration investment Forecast to increase due to high activity levels at BassGas, Sugarloaf, Tui and the onshore Perth Basin Net Debt (at 30/9/14)* 9…
  19. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 19
    Strong Reserves and Resources base NOTE: No adjustment for sale of 11.25% of BassGas completed in November 2014. Does not include Waitsia 2C Resources of 24 mmboe More than 16 years of 2P production based on FY2013-14 production…
  20. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 20
    Commitment to Sustainability Best ever safety performance in FY2013-14 o No Lost Time Injuries (LTI) o Over 2 years LTI-free Strong focus on environmental management o No reportable environmental incidents People o Launched…
  21. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 21
    Positioned for Growth 22
  22. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 22
    Clear vision and strategy The Board and Management of AWE set ambitious, but achievable, five year growth targets at the end of 2013* : Double production to 10 mmboe Triple Field EBITDAX to more than 500 million AWE aims to…
  23. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 23
    Strategy built on three core platforms Generally strong Indonesia, China oil prices; Oil favourable New Zealand Australia currency Leveraged to pricing & Australia High Value Gas demand upside; Indonesia oil linked…
  24. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 24
    Growing presence in high value markets 25
  25. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 25
    Domestic gas price projections Eastern Australia wholesale gas price projections Source: BREE, Eastern Australian Domestic Gas Market Study, 2014 9.0 8.5 Forecast Average New 8.0 Contract Gas Prices (real) 7.5 for WA…
  26. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 26
    AWE leveraged to rising gas prices Substantial uncontracted domestic gas position Industry experts forecast the domestic gas price to rise sharply over the next 5-10 years Two-thirds of AWEs Australian 2P gas reserves are…
  27. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 27
    Delivering growth over next 3-5 years AAL oil project development Perth Basin Senecio/Waitsia gas development Pateke tie-in to boost Tui production BassGas development wells and gas compression to access reserves…
  28. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 28
    Cornerstone Projects 29
  29. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 29
    More upside potential at Sugarloaf Sugarloaf AMI, Texas, USA Production from Sugarloaf up 31% in FY2013-14 2P + 2C increased by 82% during FY2013-14 following independent review As at 30 September, total of 154 wells in production…
  30. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 30
    BassGas MLE development Achieved FID to drill 2 development wells in early 2015; drill rig contracted (capex net 75 million to AWE) Crane vessel contracted to undertake lift of gas compression and condensate pumping modules in…
  31. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 31
    Ande Ande Lumut oil project Wellhead platform FEED completed FPSO tender plan approved by Indonesian government prequalification has commenced Operator has advised FID in late 2015/early 2016; working with Operator to bring…
  32. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 32
    Perth Basin Update 33
  33. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 33
    Exciting discovery Waitsia gas field Senecio-3 delivers upside Senecio-3 well originally targeted Dongara and Wagina formations in the Senecio Field Better porosity and permeability than Senecio 2, evidence of improved quality…
  34. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 34
    Senecio-3 stratigraphy 35
  35. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 35
    Senecio and Waitsia initial volumes Table 1. Initial gross 2C Contingent Resources estimates for the Senecio and Waitsia Fields Field Reservoir Interval Original Gas in Place (Bcf) Recoverable (Bcf) P90 P50 P10 P90 P50 P10…
  36. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 36
    Early conventional development potential Early conventional gas development opportunity close to existing gas plant and pipeline infrastructure Potential low cost development in strong WA domestic market Conventional flow testing…
  37. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 37
    A new cornerstone growth asset Perth Basin has existing production, infrastructure and markets Multiple plays conventional and tight gas sandstones, oil and gas shales New Waitsia discovery is a potential conventional gas play with…
  38. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 38
    39 Oil and Gas in the Perth Basin AWE is not exploring for Coal Seam Gas which is close North Perth to surface and Basin involves conventional dewatering coal gas, tight gas seams to and shale gas is release gas. 2km below the…
  39. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 39
    Protecting freshwater aquifers Well construction consists of multiple layers of steel casing plus cement to: o Reach formations of interest safely and ensure the containment of hydrocarbons if intersected o Maintain wellbore…
  40. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 40
    Monitoring soil and water Baseline monitoring of soil and water is undertaken prior to commencement of any drilling activities By locating a water bore down the hydraulic gradient from the well location, water quality can be…
  41. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 41
    Stakeholder engagement In addition to technical studies and demonstration of compliance with statutory requirements AWE recognises social licence as an integral part of good business practice Social licence is maintained by…
  42. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 42
    Forward work plan for the Perth Basin Q3 2014 Q4 2014 Q1 2015 Q2 2015 Drover-1 Core and data analysis Hydraulic stimulation (1 week) Senecio-3 Drill Flow test Analysis Irwin-1 Preparations Exploration Drilling Senecio/Waitsia…
  43. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 43
    Other Opportunities 44
  44. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 44
    Increased Tui production in CY2015 Pateke-4H development well completed and suspended Tie-back operations to Tui FPSO planned to commence in 1Q CY2015 Production from Pateke-4H likely to commence in 2Q CY2015 Estimated tie-back…
  45. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 45
    Leveraged to east coast gas price uplift Bass Basin Future expansion opportunities with Trefoil, White Ibis and Rockhopper Work continuing on a development feasibility study for Trefoil Net interest in T/18P (Trefoil) to be 40% once…
  46. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 46
    Good progress in Indonesia Lengo Gas Project Operator of Bulu PSC (Kris Energy) has submitted a POD to the regulator, SKK MIGAS, for approval Estimated 200 Bcf recoverable sales gas with good proximity to strengthening gas market…
  47. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 47
    New Exploration Permits Builds on AWEs exploration portfolio Exploration blocks in proven hydrocarbon basins Adjacent to existing fields, infrastructure and markets Kan Tan IV offload in Admiralty Bay, New Zealand Kan Tan…
  48. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 48
    Looking Ahead 49
  49. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 49
    Guidance for FY2014-15 Guidance Key Indicator FY2014-15 Production (million BOE) 4.6 5.1 Sales Revenue (m) 290 - 320 Development Expenditure (m) 220 - 250 Exploration Expenditure (m) 50 - 75 Production guidance lower than…
  50. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 50
    Looking ahead near term catalysts Exciting developments in the onshore Perth Basin o Conventional flow test of Senecio/Waitsia; further appraisal drilling anticipated in 2015 o Irwin-1 well planned for 1H CY2015 targeting…
  51. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 51
    AWE is creating shareholder value Strong operating performance and financial results achieved in FY2013-14 Proactive management of portfolio of quality production, development and exploration assets Technical and commercial strength;…
  52. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 52
    Thank you
  53. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 53
    Questions 54
  54. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 54
    Accounts and reports Questions
  55. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 55
    Remuneration report Resolution 1, adopt remuneration report
  56. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 56
    Remuneration report Resolution 1, adopt remuneration report This resolution is an advisory resolution Proxies for 347,474,052 Proxies against 3,286,260 Proxies undirected 1,219,535 Proxies abstained 827,396 57
  57. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 57
    Re-election and election of directors
  58. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 58
    Election of directors Resolution 2(a) That Mr Bruce Phillips be re- elected as a director of the Company 59
  59. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 59
    Election of directors Resolution 2 (a), that Mr Bruce Phillips be re-elected as a director of the Company This resolution is an ordinary resolution Proxies for 313,922,479 Proxies against 37,227,495 Proxies undirected 1,368,289…
  60. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 60
    Election of directors Resolution 2(b) That Mr David McEvoy be re- elected as a director of the Company 61
  61. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 61
    Election of directors Resolution 2 (b), that Mr David McEvoy be re-elected as a director of the Company This resolution is an ordinary resolution Proxies for 349,299,260 Proxies against 1,840,480 Proxies undirected 1,377,237…
  62. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 62
    Issue of Cash Share Rights
  63. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 63
    Issue of Cash Share Rights Resolution 3, regarding the issue of 365,552 cash share rights to the Managing Director, Mr Bruce Clement. To be tested against performance related vesting conditions at 30 June 2017. This resolution…
  64. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 64
    Issue of Cash Share Rights Resolution 3, regarding the issue of 365,552 cash share rights to the Managing Director, Mr Bruce Clement. This resolution is an ordinary resolution Proxies for 348,167,797 Proxies against 2,979,483…
  65. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 65
    Remuneration of Non-Executive Directors
  66. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 66
    Remuneration, Non-Executive Directors Resolution 4, regarding the remuneration of Non-Executive Directors. This resolution involves the requirement for shareholders to approve any increase in the total amount of non-executive directors…
  67. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 67
    Remuneration, Non-Executive Directors Resolution 4, increase in the maximum aggregate amount which can be paid to non-executive directors by 300,000, from 900,000 to 1,200,000 (all amounts inclusive of superannuation). This resolution…
  68. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 68
    Closure Download and view AGM presentation at www.awexplore.com AWE thanks you for your attendance today 69
  69. NOVEMBER 2014 ANNUAL GENERAL MEETING – Awe Limited – slide 69

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