AWE LIMITED ASIA ROADSHOW PRESENTATION 24 26 May 2017 DAVID BIGGS CEO and Managing Director
AWE Reserves & Contingent Resources The Reserves and Contingent Resources in this presentation are based on and fairly represent information and supporting documentation prepared by and under the supervision of qualified petroleum…
Agenda 1. Overview 2. Board and management 3. Market positioning the opportunity 4. Project updates 5. Looking ahead 5
Company snapshot AWE is an Australian energy company Metric focused on upstream oil and gas Shares on Issue 528,156,857 opportunities in Australia, New Zealand and Indonesia. Market Cap1 243m Established in 1997 and ASX listed Daily…
The AWE story 1997 - Established and listed on the ASX 2000 - Acquired interest in undeveloped Yolla field (offshore, Bass Basin) 2002 - Cliff Head wildcat discovery (offshore, Perth Basin) 2003 - Acquired interest in Casino field…
AWE reshaped and refocused Reshaped: Non-core assets divested and portfolio simplified Organisation restructured and cost outs achieved Balance sheet strengthened - low debt, minimal commitments, reduced liabilities Refocused:…
Balanced regional asset portfolio AWE has retained a portfolio of quality production, development and exploration assets 9
A new vision for growth To more than double production by FY21 and become a leading Australian mid-cap E&P company by: Maximising production and revenue growth from current gas assets Delivering high value gas and oil development…
Transformational goals Indicator FY17 estimates FY21 goals Production 2.7 - 2.8 mmboe 6-10 mmboe Gas:Liquids ratio 70:30 60:40 Revenue 100-110 million 400-650 million 2P Reserves 69 mmboe 110 mmboe Market cap 243 million1 750…
Unlocking value in AWE 1 Maximise Waitsia Stage 1A production and BassGas compression revenue growth Recontract Casino and BassGas to maximise high east coast gas prices from gas assets 2 Deliver high value Waitsia Stage 2 (onshore…
Board and management
Experienced Board Bruce Phillips, Chairman, David Biggs, CEO and David McEvoy, Independent Non-Executive Managing Director Independent Non-Executive Director Director Kenneth Williams, Deputy Raymond Betros, Karen Penrose,…
Skilled management team David Biggs, CEO and Ian Bucknell, Chief Managing Director Financial Officer Andy Furniss, GM Exploration Suzanne Hunt, GM WA Neville Kelly, Company and Geoscience Assets and Engineering Secretary and GM…
Clear management priorities Sell uncontracted gas into Australian domestic east and west coast markets at substantially higher prices Further de-risk and deliver high value projects o Waitsia Gas Project (Stage 2) o Ande Ande Lumut…
Market positioning the opportunity 17
Solid base of 2P Reserves AWE does not need to explore growth assets already in portfolio 18
Peer comparison Bubble size represents 2P Reserves AWE significantly undervalued on an EV/2P and EV/production basis 19
Exciting growth potential in place Indicative only for Waitsia Stage 2 and AAL. Assumes AAL at 25% equity post FID. Does not reflect potential delay to AAL FID due to planned POD revisions. Based on current company modelling.…
Strong Australian gas markets East coast gas market West coast gas market Market overview Market overview Energy supply issues across NW Shelf confirmed reduced southern Australia contributing supply to WA market to forecast price…
East coast struggling to meet demand Eastern and south-eastern Australia domestic gas production (excluding LNG), 201736 Casino gas to supply re-contracted gas from 2018 BassGas to supply re-contracted gas from 2019 Source…
New fields needed to meet WA demand Waitsia first gas mid 2020 Reproduced with permission. Source: Wood Mackenzie, May 2017. See disclaimer on slide 3. Waitsia Stage 2 and Gorgon Phase 2 needed to meet WA gas market demand…
WA gas market tightening Waitsia first gas mid 2020 Reproduced with permission. Source: Wood Mackenzie, May 2017. See disclaimer on slide 3. Waitsia gas production aligned with customer recontracting window 24
Leveraging domestic gas markets Waitsia Stage 2 gas comes BassGas Casino gas online compression price uplift production uplift BassGas price uplift Indicative only for Waitsia Stage 2. Based on current company modelling.…
Project updates 26
Balanced regional asset portfolio AWE has retained a portfolio of quality production, development and exploration assets 27
BassGas MLE nearing completion Final stage of MLE project (compression) on track for completion in June 2017 Targeting gas production rates 60 TJ/d after start up - anticipate revenue uplift in FY18 AWE building new reserves model…
Casino assessing growth options Production increased to 50 TJ/d after the Operator of Iona processing facility decreased backpressure Process to contract remaining reserves to commence from mid 2017 expect to realise substantially…
Waitsia Stage 1A exceeds expectations First gas achieved on time and under budget in August 2016 Stage 1A comprises 2 wells in extended production test Senecio-3 and Waitsia-1 Preliminary well performance has exceeded pre-production…
Waitsia Stage 2 growing in value Waitsia-3 and 4 appraisal wells being drilled over May-July 2017 Independent review of Waitsia 2P reserves1 is 34% higher than AWEs current estimate o Certifies capacity to deliver 100 TJ/d for 10…
Waitsia gas marketing strong demand Aiming to contract substantial gas volumes in 2017 ahead of FID Tender process completed in 2016 with positive feedback from potential customers o Waitsia gas increases competition, improves…
Waitsia exciting exploration potential Further development potential in Waitsia beyond Stage 2 Potential to increase production to 150 TJ/d from Stage 2 and existing facilities Largest exploration acreage position in the onshore…
AAL assessing G Sand potential AAL G Sand appraisal well (AAL-4XST1) completed ahead of time & under budget in 2016 o Significant improvement in oil quality confirmed, anticipate small discount to Brent pricing o Better than expected…
Looking ahead 35
The road ahead CY 2020 - 2021 First gas from Waitsia Stage 2 CY 2018 - 2019 First oil from AAL Casino revenue step up Trefoil in development* in early 2018 Casino Stage 3 in CY 2017 JV decision on Casino development/production*…
Near term milestones - 2017 Waitsia Gas Project Stage 2 Drilling two appraisal wells (May July) followed by reserves review Targeting FEED start from June Finalise term sheets and gas sales agreements Targeting FID for Waitsia Stage 2…
Well positioned to drive growth Stronger balance sheet - low debt, minimal commitments and reduced liabilities Maximising production from existing gas assets Waitsia Stage 1A, BassGas compression, Casino Targeting revenue growth in…
Thank you
Appendix 40
Divestment program concluded The divestment of non-core assets has concluded. Recent sales include: Sale of Cliff Head oil project (57.5% interest) Mature oil asset offshore Western Australia for 3.2m. Completed on 30 June 2016. Sale…
Guidance range for FY17 Original1 FY17 Half-year Actual Revised2 FY17 Key Indicator Guidance Guidance Production (million BOE) 2.7 3.0 1.5 2.7 2.8 Sales Revenue (m) 100 120 54 100 110 Development Expenditure (m) 50 60 24 50 60…
AWE 2P Reserves as at 31 December 2016 2P Reserves Project/Area Equity (million boe) BassGas 35% 6.9 Otway Basin 25% 5.8 Onshore PB 33-100% 31.5 Tui 57.5%* 0.8 AAL 50% 24.6 Total 69.6 Reported reserves reflect AWEs net…
AWE 2C Resources as at 31 December 2016 2C Resources Project/Area Equity (million boe) Bass Basin 35-40% 30.3 Otway Basin 25% 1.3 Onshore PB 50-100% 51.2 Tui 57.5%* 0.9 AAL 50% 9.3 Lengo 42.5%* 9.5 Total 102.5 Reported…
Key asset summary BASS BASIN OFFSHORE SOUTH EAST AUSTRALIA Project and Permit BassGas, T/L1; Trefoil (undeveloped), T/RL2 JV Partners AWE (35%), Origin Energy (42.5%, Operator), Toyota Tsusho (11.25%), Prize Petroleum (11.25%)…
Conversion Tables Volume 1 cubic metre = 1 kilolitre = 35.3 cubic feet = 6.29 barrels 1 megalitre = 1,000 cubic metres Energy Value 1,000 standard cubic feet of sales gas yields about 1.055 gigajoules (GJ) of heat 1 petajoule…
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