DELIVERING IN A CHALLENGING MARKET INVESTOR PRESENTATION SEPTEMBER 2015
AN INTRODUCTION TO DRILLSEARCH 4 DRILLSEARCH INVESTOR PRESENTATION SEPTEMBER 2015
VISION AND DISCIPLINES Our goal is to build Australias leading independent oil and gas company through: Providing a safe environment where our people are focused on sustainability and continuous improvement; Delivering sustained…
ROBUST PLATFORM IN THE COOPER BASIN Eastern Margin Oil Production Western Wet Gas Production Western Flank Oil Production 6 DRILLSEARCH INVESTOR PRESENTATION SEPTEMBER 2015
BUSINESS SNAPSHOT Australias No. 3 onshore oil producer1 Solid production As at June 2015 Barrels per day mmboe 1 Source: June 2015 Quarterly Production Reports/ASX Announcements 25.7 mmboe of 2P Reserves Successful…
THREE BUSINESS UNITS OIL WET GAS UNCONVENTIONAL NEAR-TERM CASH FLOW MEDIUM-TERM GROWTH LONGER-TERM GROWTH GENERATOR ENGINE PLATFORM OBJECTIVES: OBJECTIVES: OBJECTIVES: Maintain and grow Grow reserves and Optimise spend to…
SOLID FINANCIAL PLATFORM Profitable Production in FY2015 Effective Hedging Program Cash margin of 56 a barrel on oil production 1.43 mmbbls of FY2016 oil production currently hedged at prices of at least US60 a barrel 20.6 million…
FY2015 HIGHLIGHTS 10 DRILLSEARCH INVESTOR PRESENTATION SEPTEMBER 2015
DECISIVE RESPONSE TO WEAKER OIL PRICE Revenue Protection Capital Discipline Cost Base Reduction Focus on production, Business reorganisation Hedge position cash flow and reserves headcount reduced by increased replacement one…
Technical expertise RECORD WORK PROGRAM DELIVERED driving JV success 41 Wells 74% Success1 12 New discoveries (seven from eight Wet Gas wells in JV with Santos) 10 New Bauer development wells 50% Increase in fluids capacity at…
SOLID PRODUCTION PERFORMANCE MAINTAINED FY2015 Production Production of 3.0 mmboe in line with guidance Oil Business the key driver Average Western Flank production 12,356 barrels/day1 in Q4 FY2015 (FY2015 11,265 bpd) as new…
OIL RESERVES INCREASED 2P Reserves Breakdown (mmboe) Oil reserves increase at 30 June 2015 Western Flank Oil reserves up to 8.6 mmboe 2P Wet Gas reserves added in Western Wet Gas JV with Santos Testing and connections ongoing…
FY2015 FINANCIAL PERFORMANCE % Unit FY2015 FY2014 Change Production mmboe 3.0 3.4 (11%) Revenue m 250.6 387.0 (35%) EBITDAX2 m 152.8 232.0 (34%) DD&A m (56.2) (40.4) 39% Exploration & evaluation expensed/write off m (57.6)…
FY2016 PROGRAM 16 DRILLSEARCH INVESTOR PRESENTATION SEPTEMBER 2015
FY2016 GUIDANCE1 Guidance FY2015 (a) FY2016 (f) FY2016 Production Split Oil Wet Gas Production (mmboe) 3.0 2.8 3.22 Capex (m) 142m 80m 110m3 15% Production 85% Increasing contribution from Wet Gas FY2015 investment to support…
DIVERSIFYING OUR REVENUE BASE New Field Start Ups 1st Half FY2016 2nd Half FY2016 Western Flank Oil Existing Production from Bauer, Chiton, Hanson and CKS Fairway with Beach Stunsail (online July 2015) Balgowan (online August 2015)…
DEVELOPMENT ACTIVITY SUPPORTING PRODUCTION Bauer wells-16 to -19 commissioned Bauer-Lycium pipeline operational Cooper Basin Lycium-Moomba flooding shuts pipeline operational in production 19 DRILLSEARCH INVESTOR…
DEVELOPMENT ACTIVITY SUPPORTING PRODUCTION Western Flank Oil Fairway joint venture with Beach (DLS 60%) Six appraisal/development wells planned in FY2016 - Bauer-24 and -25 in December quarter Stunsail pipeline commissioned…
DEVELOPMENT ACTIVITY SUPPORTING PRODUCTION Bauer central processing facility Western Flank Oil Fairway Current capacity 75 kbbls/d of fluid handling Second tank farm to be constructed, starting December - Initial expansion to…
COMMERCIALISING WET GAS DISCOVERIES IN FY2016 Western Wet Gas joint venture with Beach Western Wet Gas joint venture with Santos 22 DRILLSEARCH INVESTOR PRESENTATION SEPTEMBER 2015
EXPLORING NEW WESTERN FLANK OIL TARGETS Joint Venture with Beach (PRLs 151 to 172) One exploration well planned in Joint Venture FY2016 with Senex Seismic (PEL 182) processing to Proving up a identify future play extension…
Complementary NORTHERN COOPER EXPLORATION campaigns testing multiple play types Washington-1 unconventional well underway in PEL 570 - Drillsearch free carried Two-well wet gas exploration campaign in PRLs 173 and 174 Jute-1…
Under-explored area with OIL EXPLORATION IN THE INLAND-COOK several robust prospects Maroochydore-1 to be drilled in the December quarter with a primary target in the Hutton Sandstone Located on the Hurron prospect one of the…
Continued investment FY2016 CATALYSTS in exploration and development in FY2016 1. Western Flank - 4. Maroochydore-1 4. New fields and wells exploration well in coming online Inland-Cook (Q2) 2. Wet Gas 5. Northern Cooper…
OUTLOOK 27 DRILLSEARCH INVESTOR PRESENTATION SEPTEMBER 2015
Substantial growth COOPER BASIN GROWTH from existing business Growth upside from Inland-Cook existing assets Western Flank Oil Exploration Technical Immaturity Northern Wet Gas Western Wet Gas Exploration Key Eastern…
PROVEN APPROACH TO ADDING VALUE Evaluate Cooper Our Strengths Proven technical skills a history of success Technically Driven Maintaining an independent technical view Applying innovative technical solutions Explore High quality…
Active debt FINANCING management As at 30 June 2015 Net Debt Liquidity Cash 131.5m 131.5m Convertible Note (US125m) (162.2m) Working Capital Facility (Undrawn) 40.0m Net Debt (30.7m) Liquidity 171.5m Balance sheet…
Prioritising near-term WHY DRILLSEARCH production, cash flow and reserves replacement High quality portfolio expected to generate 50% growth in production over five years Commercialising past exploration success to underpin our…
APPENDIX 32 DRILLSEARCH INVESTOR PRESENTATION SEPTEMBER 2015
FY2016 WORK PROGRAM FY20161 Total Area Activity Operator Q1 Q2 Q3 Q4 Wells2 Oil Business Western Flank Oil PRLs 151-172 Wells Beach 4 A/D 2 A/D, 1 Exp Bauer Facilities Pennington 11 PEL 1823 Wells Senex 3 Exp Inland-Cook ATP…
CORPORATE INFORMATION Financial Drillsearch Shareholder Type as at 31/08/2015 ASX Ticker DLS S&P/ASX Index ASX 200 Market Cap (Am) 244 Shares on Issue (m) 461 Share Price (17 Sept 2015) (A/sh) 0.53 Cash (30 Jun 2015) (Am) 131.5 31…
RESERVES AND CONTINGENT RESOURCES AS AT 30 JUNE 2015 Net Reserves and Contingent Resources as at 30 June 20151 1P 2P 3P Reserves mmboe mmboe mmboe 2015 2014 Change 2015 2014 Change 2015 2014 Change Oil Business 6.6 4.8 38% 9.8…
STRONG MARGINS STILL ATTRACTIVE DESPITE PRICE PRESSURES Oil Margins (A/bbl) Oil Margin 120 Cash margin of 56 a barrel1, 61% lower 90 Accounting Margin: 79 Accounting than in FY2014 Margin: 36 60 8 Costs per barrel 14 9 30 21…
ACTIVE HEDGING PROGRAM CONTINUES TO PROVIDE PROTECTION FY2016 Hedge Position Gross hedge benefit of 20.6 million realised in FY2015 1.43 million barrels of FY2016 production currently hedged at prices of at least US60 a barrel…
RECONCILIATION OF NON-IFRS ACCOUNTING FINANCIAL INFORMATION FY2015 FY2014 Reconciliation of Underlying NPAT to Net (Loss)/Profit After Tax Restated 000 000 Net (Loss)/ profit after tax (8.1) 41.9 Adjusted for: Change in fair value…
HEAD OFFICE Level 18 321 Kent Street Sydney NSW 2000 P: +61 2 9249 9600 F: + 61 2 9249 9630 E: admindrillsearch.com.au W: drillsearch.com.au Please contact for further information Dudley White General Manager Corporate…
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