Australis Oil & Gas Limited 28 February 2017 Not for release or distribution in the USA Highly accretive acquisition creates largest TMS Core acreage holder and producer
Directors / Management Demonstrated track record in oil & gas Jon Stewart - Chairman Graham Dowland CFO & FD 25 years in the upstream oil and gas industry 25 years experience in the oil and gas industry Founder and former Chairman…
Transformational deal delivering on strategy We believe the Tuscaloosa Marine Shale (TMS), in which we already participate, represents a very significant opportunity for Australis, principally due to timing and quirks of history…
Significant TMS acreage, existing production and future development flexibility Acquiring all the TMS assets (Assets) of Encana Oil & Gas (USA) Inc., a subsidiary of Encana Corporation (TSX:ECA) for US80MM (Acquisition) Assets located…
Acquisition price underpinned by value of existing production Acquisition consideration of US80 million Effective date 1 Nov 2016 Consideration reduced for net proceeds from production (effective date to close) Nominal value…
Strategy focused on providing large upside potential for shareholders Oil weighted unconventional assets acquired in counter cyclical environment Accretive entry price point Buying production at BT NPV(20)1 Executing on Optionality…
Transaction Highlights The leading TMS Core acreage position Australis becomes the largest acreage holder in the oil-rich TMS Core Will operate 120,000 acres (81,000 net, 25% HBP) in the core Production, reserves and large contingent…
Budget & Estimated Cash Flow for 2017 & 2018 2017 2018 USMMD USMMD Cash beginning of year (1 January) 23 17 Financing A100MM equity raising (net of costs of transaction) 71 Acquisition cost (excluding estimated net closing…
Independent Reserve & Resource Assessment Significant oil resource Ryder Scott Company have prepared a report with an effective date 1 February 20171 Assessed existing position and acquisition acreage Resource estimates contingent on…
TMS Overview and Analysis 28 February 2017
TMS History First movers delineated the TMS Core it is the only place to be TMS depositional area of 14 million acres Initially operators, acquired large positions speculatively on the back of then strong oil prices and…
Why has the TMS not taken off like other US unconventional oil plays Early participants typically had large land acquisition programs. Production results defined a number of participants to be outside the core. Well operational…
TMS Acquisition Land Summary Significant land position within the TMS Core Non- TMS Description TMS Total Core Core HBP net acres 22,000 5,000 27,000 Undeveloped Permitted net 40,000 0 40,000 acreage Undeveloped ATS…
TMS Acquisition Production Profile 2014 drilling produced rapid increase in production Vendor net oil historical production and Ryder Scott PDP forecast1 Decline curve shows Ryder Scott PDP profile going forward from 1 Feb 17 for the…
TMS Productivity, Economics & Sensitivities TMS Core acreage is economic at current oil prices TMS Core well productivity is consistently demonstrable Early wells encountered drilling difficulties leading to high costs Recent wells…
Relative Production Performance Australis Type Curve 1 - Louisiana compared to other plays Production for the first 180 700 Australis TMS Type Curve vs Midland Basin Participants days from participants in the 600 IP180…
Capital cost profile of early TMS wells Well costs improved and improving Graph below plots US/ft for 51 TMS wells drilled between mid 2011 and end of 20149 ATS conservative well cost estimate US10.8MM for a single well10 Other play…
Forward Program Anticipate acquisition close in April 2017 and assume operatorship of 122,000 TMS Core acres Initial focus on land, maintain lease hold position within existing 40,000 net acres within the Permitted Drilling Units,…
Details of the Offer & Acquisition Confidential 12 February 2017 20
Equity Capital Raising Institutional placement of A100 million raising (before costs) Single tranche placement subject to shareholder approval and Acquisition closing conditions, other than financing, satisfied or waived Simple…
Proposed PSA terms Acquisition Price US80 million subject to adjustments from effective date 1 Nov 2016 Deposit held in escrow on execution of PSA - US8 million Due Diligence period 45 days before scheduled close Purchase price…
Indicative Timetable EVENT APPROX. DATE PSA execution 27 February Acquisition, Offer and General Meeting of Shareholders announced 28 February General Meeting Notice despatched (ASX approved) Early March All PSA conditions precedent…
Portuguese Exploration Assets Large, low cost onshore acreage with minimal work commitments 28 February 2017
Australis Concessions - Portugal Large onshore acreage position Two onshore concessions (Batalha and Pombal) - 620,000 acres or 2,510 km2 NSAI assessed 458 bcf 2C resource (net)12 Limited exploration to date on and offshore No oil…
Australis Portuguese Concessions Terms Awarded two onshore concessions (Batalha and Pombal)13 - 620,000 acres or 2,510 km2 Covers a large section of the Lusitanian Basin to the north of Lisbon Exclusive exploration period of 8…
Portuguese Potential Resource estimates - NSAI as at 31 December 201612,13,E Net Contingent ResourceC conventional Oil (MMbbl) Gas (Bcf) Oil Equivalent (MMboe)D Low (1C) 0.0 217.4 36.2 Best (2C) 0.0 458.5 76.4 High (3C) 0.0 817.7…
Key Risks Key Risks Summary The proposed placement is not underwritten; while confirmations have been received, settlement is subject to shareholder approval for the issue of securities under ASX Listing Rule 7.1 and satisfaction or…
Appendices and Additional Slides 28 February 2017 29
Australis Type Curves in the TMS Single Well Type Curve 1 - Louisiana ATS type curve history matched to actual production from TMS Modern Offset Wells4 Type Curve Assumptions Louisiana4 Cumulative Oil Production Oil EUR 499 Mbbls…
TMS Single Well ATS TC1 Louisiana4 (US) Base Assumptions: ATS TC1 - Louisiana Production Forecast 30,000 600,000 Future Well Type Curve Target Lower TMS Louisiana 25,000 500,000 EUR Gas 0.13 bcf Oil/Condensate 499 mbbl 20,000…
Australis Type Curves in the TMS Single Well Type Curve 2 - Mississippi ATS type curve history matched to production from the most recent 15 Mississippi ECA wells5 Type Curve 2 - Mississippi Assumptions5 Cumulative Oil Production Oil…
TMS Single Well ATS TC2 Mississippi5 (US) Production Forecast Base Assumptions: ATS TC2 - Mississippi 30,000 600,000 Future Well Type Curve Target Lower TMS Mississippi 25,000 500,000 EUR Gas 0.14 bcf Oil/Condensate 545 mbbl 20,000…
TMS Modern Offset Wells The monthly oil production data for well data for the TMS Modern Offset Wells is summarised in the table below Well Name Denkmann Longleaf 29H Longleaf 29H Mathis 29- Mathis 29- Lawson 25- Spears 31-6H C. H.…
TMS Modern Wells - Mississippi The monthly oil production data for the most recent 15 Encana operated modern offset Mississippi wells is tabulated below * 5 wells drilled by Encana with most optimised completion design Lewis 7-…
Proforma Capital Structure Shares and Options Shares Options21 Ownership % (millions) (millions) current Post share placement Pre options Post Options Directors & Management 98.3 86.4 28.8% 12.7% 21.0% Existing Shareholders 243.3…
Option Terms Summary Cash payable on Grant date Exercise Price (A) Vesting Expiry Number exercise Directors, Executives & Management 13 Nov 2015 0.25 Vested 31 Dec 2020 19,675,000 4,918,750 13 Nov 2015 0.30 (Series A) Vested 31 Dec…
Important Notice - Offer Restrictions No Distribution in the US and No Distribution to the US News Wires Services : This investor presentation is not an offer of securities for sale in the United States. Any securities to be issued by…
Footnotes - continued 13. Australis owns 100% of each Concession subject to an option over a 3% interest in each of the two concessions provided to a consultant. The net estimates provided by NSAI are prepared on the assumption that…
Glossary Unit Measure Unit Measure B Prefix - Billions bbl Barrel of oil MM or mm Prefix - Millions boe Barrel of oil equivalent (1bbl = 6 mscf) M or m Prefix - Thousands scf Standard cubic foot of gas /d Suffix - per day…
Glossary - continued Abbreviation Description WTI West Texas Intermediate Oil Benchmark Price LLS Louisiana Light Sweet Oil Benchmark Price D, C & T Drill, Complete and Tie-in well cost estimate 2D / 3D 2 dimensional and 3…
Initial Reserve and Contingent Resource Estimate Acquisition Asset Ryder Scott Company, L.P (Ryder Scott) has prepared an estimate of the proved developed reserves, future production and income and an estimate of the 1C, 2C and 3C…
Initial Reserve and Contingent Resource Estimate Acquisition Asset (Continued) Contingent Resources The 1C, 2C and 3C contingent resources have been assigned to the 35 undeveloped state agency approved drilling units covering…
Initial Reserve and Contingent Resource Estimate Existing Asset On 25 January 2017 Australis advised the Australian Securities Exchange that it had received an independent 2C contingent resource update from Ryder Scott . The Ryder Scott…
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