Australis Oil & Gas Limited September 2017 Investor Presentation Large strategic acreage position in one of the few emerging oil shale basins in the USA Investor Presentation
Investment Highlights Positioned for significant value accretion Largest acreage holder in the core of the Tuscaloosa Marine Shale (TMS) Operator of TMS oil production per well similar to the best areas within US shale such as Eagle…
Company Snapshot Australis has existing reserves, production and revenue, no debt and a strong institutionally dominated register with significant contribution from Board & Management Listed on the ASX in July 2016 Capital Structure…
Directors & Management Demonstrated track record in oil & gas Jon Stewart Non-Executive Chairman Graham Dowland CFO & Finance Director 25 years in the upstream oil and gas industry 25 years experience in the oil and gas industry…
Aurora Value Creation Curve The Australis management team created significant shareholder value at Aurora Aurora Share Price Performance 1 January 2005 to 13 May 2014 6
Corporate History A considered strategy and a disciplined approach to shareholder capital Australis formed in late 2014 following sale of Aurora the same team Strategy set during 2014/15 as oil prices fell: Secure an inventory of…
The TMS Delivers on Early Phases of Strategy TMS is one of the few remaining undeveloped US onshore resource plays The TMS represents a very significant opportunity for Australis, arising principally due to timing and quirks of…
Tuscaloosa Marine Shale Tier 1 acreage in an emerging shale province Investor Presentation 9
What is the TMS The TMS is an emerging shale play. The Core is comparable with other prolific shale plays in the US TMS Location Onshore basin - Louisiana and Mississippi On trend with Eagle Ford Basin in Texas, similar depositional…
TMS Oil Productivity vs Other Major Plays TMS core productivity is very strong when compared to the Eagle Ford and Midland plays Average barrels per day oil production over the first 180 days(3,4) 700 Australis TMS Core Type Curve…
Australis TMS Well Performance The last 15 wells drilled within Australis core acreage demonstrate significantly higher average productivity than the average of other TMS wells drilled in Mississippi Individual 24 Month Cumulative…
TMS Well Drilling Times TMS drilling times have been reduced over time as operational challenges resolved Australis operated well drilling performance (rig mobilization to rig release) 160 First 10 wells average 72 days 140 120…
Capital Cost Profile of Early TMS Wells Well costs have trended downwards over time in line with other plays Australis conservative well cost estimate US10.8MM for a single well (US1,690/ft)7 Other play participants quoted US8.7MM8 No…
Australis TMS Land Position Australis holds a dominant land position within the core of the TMS, with significant undeveloped oil Net Australis TMS Position Australis TMS (after royalties) Reserves1 5 million bbl PDP US95 million…
TMS Economics The TMS Core is economic at current oil prices and current single well cost estimates without assumed productivity improvements, batch drilling or economies that come with development scale Single Well Economics and…
Pathway to Value TMS Core acreage has significant upside with multiple catalysts to create value Value Catalysts Growth Strategy Likely to recover within 1-3 years as Oil Price the global supply market rebalances Continued refinement…
TMS Operational Update and Forward Program Following acquisition, the initial focus has been extending the lease terms of the primary acreage to beyond 2020 providing flexibility for future development Work Completed Lease…
2017 Financial Highlights (First Half 2017) Primary focus on disciplined capital management Transformational Acquisition price after adjustments of US68 million 1 Acquisition Financed by existing cash and A100 million share issue at…
Portuguese Exploration Assets Large, low cost onshore acreage with minimal work commitments Investor Presentation 20
Portugal Concessions Overview Australis owns two concessions onshore Portugal with significant development potential Asset Highlights Asset Location Significant Gas Large in-place discovered and tested gas Resource accumulation with 2C…
Portugal Prospectivity & Volumetrics Appraisal of a gas discovery with multiple nearby prospects and leads with a significant resource base Proposed Work Program Batalha Gas Discovery Batalha Concession Prospects Drill and test the gas…
Appendices and Additional Slides Investor Presentation 23
Australis TMS Well Performance / 1000 ft Lateral Australis last 15 TMS wells also demonstrate higher performance when compared with other TMS on a per lateral foot basis Individual Well 24 Month Production / 1000 Ft Lateral TMS…
TMS Core Type Curve Summary of monthly oil production data for the most recent 15 Encana operated modern offset Mississippi wells Lewis 7- Pintard Lyons 35H Pintard Longleaf Longleaf Mathis Mathis Lawson Ash 13H Sabine Sabine McIntosh…
Single Well TMS Core Type Curve ATS type curve history matched to production from the most recent 15 Mississippi ECA wells TMS Core TC Assumptions TMS Core Type Curve v TMS Production 250,000 Oil EUR 545 Mbbls Gas EUR 142 MMscf…
TMS Core Type Curve The production and opex assumptions are based on history and the capex costs are current third party estimates. Future Well Type Curve Production Forecast Target Lower TMS Mississippi EUR 30,000 700,000 Gas 0.13…
Earnings Summary Operational positive cashflow at current oil price US Netback From Operations 1st Half 2017A US/bbl million Revenue (Gross Sales) 7.03 47.21 Royalties 1.32 8.87 Production Taxes 0.19 1.28 Field Direct Operating…
Option Terms Summary Cash payable on Grant date Exercise Price (A) Vesting Expiry Number exercise (A) 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…
Petroleum Rights in the TMS Leasing A summary of the leasing system in the US Petroleum Rights In the USA, the rights of access to hydrocarbons are generally attached to the surface landrights as real property However, such rights can…
Footnotes 1. All estimates and risk factors taken from Ryder Scott, report prepared as at 1 February 2017 and generated for the Australis concessions to SPE standards. See ASX announcement titled US Shale Acquisition and A100 Million…
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) K or k Prefix - Thousands scf Standard cubic foot of gas /d Suffix - per day Abbreviation…
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