WELCOME Chairman of Meeting Welcome/Registration Quorum Notice of Meeting Meeting Procedures 2016 Annual General Meeting 2
INTRODUCTIONS Board Of Directors Dr Neale Taylor Chairman Mr Bradley Lingo Managing Director & Chief Executive Officer Mr Tim Hargreaves Non-Executive Director Mr Russell Krause Non-Executive Director Thank you to Mr Matt Healy…
BUSINESS AGENDA Minutes Ordinary Business Presentations by Chairman & Managing Director/CEO Accounts Non-binding Ordinary resolution 1 Ordinary Resolutions 2 to 11, 14 and 15 Special Resolutions 12 and 13 Special Business…
MINUTES Minutes available for inspection from the Company Secretary 2016 Annual General Meeting 5
CHAIRMAN PRESENTATION 6
2015-16: Delivered on the Promise Coming out of a very weak position in 2014-15 Major achievements in 2015-16: Put the Grieve CO2 EOR Project on a solid footing Quality project recognition, restructured and improved JV arrangements,…
2015-16 FINANCIAL SUMMARY 2014-15 2015-16 Variance A000 A000 A000 Revenue 42 59 17 No material revenue until late 2017/early 2018 Expenses: Cost of sales 264 317 (53) Indicative & related FY16 costs to settle Grieve JV…
LOOKING AHEAD Tightened strategic focus Top priority: Delivering first oil by late 2017/early 2018 & managing costs Supplementary priority: Growth through additional CO2 EOR Projects Opportunity set likely to only remain open for a…
MANAGING DIRECTOR PRESENTATION 10
Our story in a nutshell from last years AGM Elk as Australias only company focused on enhanced oil recovery is uniquely positioned to take advantage of current low oil price environment Elk has significant conventional 2P reserves…
Our story remains unchanged & opportunity to grow has increased Elk as Australias only company focused on enhanced oil recovery is uniquely positioned to take advantage of current low oil price environment Over the last year, Elk has…
Where we operate Rockies CO2 EOR Fairway Elk Country Source: NETL 2010 Vast CO2 reserves, extensive CO2 infrastructure, multiple CO2 EOR operating projects and numerous new projects for development 2016 Annual General Meeting…
The elevator pitch Conventional oil, long-term production, proven practices, repeatable growth Focused on low risk enhanced oil recovery (EOR) redeveloping proven, conventional oil fields EOR born from low oil prices to maintain…
Grieve Project Fully Funded Completed US58 million in senior debt funding Benefit Street Partners (BSP) providing US58 million conventional oil field development loan BSP is credit unit of Providence Capital a recognized global asset…
How does Grieve stack up - Peer F&D Cost Comparables Elks forecast F&D costs are low relative to its industry peers Finding & development costs (F&D) by company(1)(2)(3) 40 35 36 35 30 31 29 28 25 26 23 US/boe…
How does Grieve Stack up - Production Cost & Margin Production margins remain robust, even in low oil price conditions Average Production Costs (Including Royalties)(1) of First 5 Years (US/bbl, Real) Production Costs Margin 70…
How does Grieve stack up Global development cost comparison The Grieve Project compares favourably to other tier 1 energy developments globally Grieve Project On average comparable new project costs, only onshore OPEC Middle…
How does Grieve stack up - Production Net to Elk Elks net share of production is estimated to be between 2.4 and 3.1 MMbbls over the first 5 years 2P & 3P Production (Net to Elk, Post Royalties) 49% WI Additional Sweep To Elk 900…
How does Grieve stack up - Net Operating Income to Elk The Project will generate strong and stable cash flows from first oil* Elk Net operating income (Am, Nominal) (1) 49% WI Additional Sweep to Elk 40 35 Net operating income…
Grieve restructure impact on Elk asset value and financial condition Asset Value & Financial Status - Non-IFRS (USD millions) Restructure Project Pre-restructure Closing Completion JV working interest 35% 49% 49% JV net revenue…
Our new relationship with Denbury Grieve JV restructure built on a totally new relationship with Denbury Denburys A-Team in charge of delivering Grieve Project Denbury committed to complete the Grieve Project under fixed price,…
Grieve Project execution - Heading down the home stretch Denbury has a dedicated project execution team assigned to completing Grieve Project Turnkey EPC Contract contains detailed project scope, milestones & payment schedules…
Grieve Project Driving to completion - New works already underway JV restructure & debt financing closed 5 August 2016 Crude oil pipeline repairs commenced August 2016 & completed early October 2016 Next phase of pipeline works -…
Where to from here The road ahead For the year ahead, Elk has 3 clear priorities Priority 1 Project Delivery Absolute No. 1 priority is delivering the Grieve Project completion and reaching 1st oil Priority 2 Growth through…
Why focus on CO2 EOR Low risk o Approximately 90% of projects developed to date have succeeded technically & commercially Large reserves o Plenty of mature big fields suitable for CO2 EOR Long-life, low decline production o…
CO2 EOR Big Business in the Rocky Mountains Wyoming contains one of US largest proven CO2 Cumulative Oil Production (MMBO) reserves - 10 TCF - 100 TCF potential Northern Rockies Basin Name Total CO2 EOR Candidate Reservoirs Powder…
Foundations for further growth CO2 Sources CO2 & Production Infrastructure EOR Project Fields Direct investment in Ownership & Oil & CO2 CO2 supplies development of pipelines, gas CO2 EOR Projects processing Control of CO2…
Sustainability & social license to operate - the environmental benefits Freemont County Wyoming Salt Creek CO2 EOR Project A recycled oil field with a reduced footprint 2016 Annual General Meeting Managing Directors…
Value-add Strategy Australasia Opportunity Take EOR Asset technology to Accumulation largely untapped Current oil price regions Australia, environment Indonesia and provides opportunity Malaysia to strengthen asset Singleton…
So what do we need to do The specifics See Grieve Project through to first oil New deal now in place with Denbury Grieve Pipeline repairs completed & awaiting interconnection to Spectra Casper Pipeline system Keep to strict…
OUR NEW LOOK
ELK PETROLEUM LIMITED INVESTOR PRESENTATION 37 THE INVESTMENT CASE Strong Leadership Elk Petroleum has strong leadership with proven track record of value creation EOR Expertise Extensive experience and expertise in Enhanced Oil…
ELK PETROLEUM LIMITED INVESTOR PRESENTATION 38 KEY TAKEAWAYS INVESTING IN ELK Only ASX-listed oil company focussed on enhanced oil recovery (EOR) Key metrics Main projects are in the prolific Northern Rocky Grieve Reserves (2P)…
SHAREHOLDER QUESTIONS RETURN TO AGM ORDINARY BUSINESS 39
ACCOUNTS FOR THE YEAR TO 30 JUNE 2016 Table 2015/16 Financial Report together with the Directors Report and Auditors Report Questions on Reports, including questions to the Auditors representative, Mr Gareth Few 2016…
RESOLUTIONS 41
ORDINARY RESOLUTIONS 1. Adoption of the Remuneration Report (Non-binding ordinary resolution) 2. Re-election of Director Dr Neale Taylor 3. Ratification of prior issue of shares to exempt, sophisticated & professional investors under…
SPECIAL RESOLUTIONS 12. Approval of 10% Placement Capacity 13. Approval of new Constitution 2016 Annual General Meeting 43
RESOLUTION 1 Adoption of the Remuneration Report To consider and, if thought fit, to pass, with or without amendment, the following resolution, as a Non-Binding Ordinary Resolution: To adopt the Elk Remuneration Report for the year…
RESOLUTION 2 Re-election of Director Dr Neale Taylor To consider and, if thought fit, to pass, with or without amendment, the following resolution, as an Ordinary Resolution: That Dr Neale Taylor, being a Director of the Company and…
RESOLUTION 3 Ratification of prior issue of shares to exempt, sophisticated and professional investors under ASX Listing Rule 7.1 To consider and, if thought fit, to pass, with or without amendment, the following resolution, as an…
RESOLUTION 4 Ratification of prior issue of shares to Abbey West Capital Pty Ltd (Abbey) and Catalan Investments Pty Ltd (Catalan) under ASX Listing Rule 7.1 To consider and, if thought fit, to pass, with or without amendment, the…
RESOLUTION 5 Ratification of prior issue of shares to Cairnglen Investments Pty Ltd (Cairnglen) under ASX Listing Rule 7.1 To consider and, if thought fit, to pass, with or without amendment, the following resolution, as an Ordinary…
RESOLUTION 6 Ratification of prior issue of shares to Catalan Investments Pty Ltd (Catalan) under ASX Listing Rule 7.1 To consider and, if thought fit, to pass, with or without amendment, the following resolution, as an Ordinary…
RESOLUTION 7 Ratification of prior issue of shares to exempt, sophisticated and professional investors under ASX Listing Rule 7.1 To consider and, if thought fit, to pass, with or without amendment, the following resolution, as an…
RESOLUTION 8 Ratification of prior issue of shares to Durham Capital Corporation (Durham) under ASX Listing Rule 7.1 To consider and, if thought fit, to pass, with or without amendment, the following resolution, as an Ordinary…
RESOLUTION 9 Ratification of prior issue of shares to Catalan Investments Pty Ltd (Catalan) under ASX Listing Rule 7.1 To consider and, if thought fit, to pass, with or without amendment, the following resolution, as an Ordinary…
RESOLUTION 10 Ratification of prior issue of shares to exempt, sophisticated and professional investors under ASX Listing Rule 7.1A To consider and, if thought fit, to pass, with or without amendment, the following resolution, as an…
RESOLUTION 11 Ratification of prior issue of shares to exempt, sophisticated and professional investors under ASX Listing Rule 7.1A To consider and, if thought fit, to pass, with or without amendment, the following resolution, as an…
RESOLUTION 12 Approval of 10% Capacity To consider and, if thought fit, to pass, with or without amendment, the following resolution, as a Special Resolution: That for the purposes of Listing Rule 7.1A and for all other purposes,…
RESOLUTION 13 Approval of New Constitution To consider and, if thought fit, to pass, with or without amendment, the following resolution, as a Special Resolution: That for the purposes section 136(1)(b) of the Corporations Act 2001,…
RESOLUTION 14 Approval of Employee Performance Incentives Plan To consider and, if thought fit, to pass, with or without amendment, the following resolution, as an Ordinary Resolution: That the Employee Performance Incentive Plan…
RESOLUTION 15 Approval of Grant of Shares to Mr Bradley Lingo, Managing Director To consider and, if thought fit, to pass, with or without amendment, the following resolution, as an Ordinary Resolution: That for the purposes of ASX…
POLLS & CLOSE OF MEETING Polls (if any) No other business Meeting closed Thank you for your attendance Refreshments in foyer 2016 Annual General Meeting 59
LOOKING FORWARD TO YOUR CONTINUING SUPPORT IN THE YEAR AHEAD
Elk Petroleum Limited Exchange House Level 1, Suite 101 10 Bridge Street Sydney NSW AUSTRALIA
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