Investor Presentation March 2014 Building Australias leading independent oil and gas company
Vision and Approach Our goal is to build Australias leading independent oil and gas company through: Delivering sustained growth in shareholder value; Being a partner and employer of choice, well regarded by our communities and…
Key Messages Focused on growing production, reserves and cash flow Profitable, with self-funded work programs through FY2016 Balanced portfolio with multiple growth opportunities Management team with a track record of…
Past, Present and Future FY2009 FY2014 FY2019 Mid-tier oil and gas Leading independent oil Descriptor Oil and gas explorer company and gas company Production 180,167 boe 3.0 to 3.3 mmboe More than double 85% oil and 93% oil and…
Peer Comparison Australia's Top Five Onshore Oil Producers (Dec13 Quarter) Sales Revenue 16,000 14,326 H1 FY13 H2 FY13 H1 FY14 14,000 600.0 +62% Average Daily Production (bopd) 12,000 9,782 500.0 10,000 8,472 400.0…
Three Key Business Streams OIL SHORT TERM ENGINE WET GAS MEDIUM TERM UNCONVENTIONAL UPSIDE AND CASH FLOW GENERATOR DRIVER OPPORTUNITY Australias third-largest onshore Commercialise multiple existing Proving up commercially oil…
Why the Cooper Basin Australias largest onshore oil and gas development area more than 165 gas fields and 103 oil fields discovered since 1963 Recent rapid growth in oil exploration success with the emergence of prolific oil…
Drillsearch: A material Cooper Basin player DRILLSEARCH INVESTOR PRESENTATION 2014 8
Oil: Western Flank Provides Robust Foundation PEL 91 Drillsearch 60%, Beach 40% 11 discoveries with three fields in production including Bauer, the largest oil field on the Western Flank Current average daily production of 12,000…
Oil: Opportunities to Sustain Western Flank Production Bauer central facility expansion planned for completion in the June quarter Kalladeina, Congony and Sceale fields (KCS) expected online by September quarter 2014 Four to five…
Oil: Eastern Margin and Inland Cook Eastern Margin Drillsearch 40%, Santos 60% Mature oil production (1,200 bopd gross) with substantial exploitation upside (2.5 million barrels of 2C Contingent Resource) Successful expanded work…
Wet Gas: Major Market Opportunity Eastern Australian gas demand is expected to almost triple by 2025, driven largely by new LNG export projects. Ideally placed to become a meaningful supplier to East Coast gas markets: Only current…
Wet Gas: Western Wet Gas Western Wet Gas Fairway PELs 106, 107, 513 and 632 PELs 632 and 513 Drillsearch 40%, Santos 60% 2P reserves 73 bcf (gross) over eight discoveries Santos funding 120 million across both permits multiple…
Wet Gas: Northern and South West Queensland Wet Gas Northern Wet Gas Five Permits - Drillsearch Interests 75-100% Kickstarting development of the Northern Wet Gas assets (formerly Acer Energy assets) Workover program at Flax targets…
Unconventional: Potential Lures the Majors Key Australian Unconventional Farm-Ins Amount 152m Amount 210m Acres 4.1m Acres 8.0m EV / Acre 37.3 EV / Acre 26.3 Amount 156m Date Nov-2012 Darwin LNG Date Jun-2012 Acres 7.7m…
Unlocking Unconventional Upside Landmark transaction in July 2011 the first to commercialise Unconventional gas from the Cooper Basin PLAY PARTNER PROCESS PROGRAM Two distinct target zones Proven expertise Work program extended…
Unconventional: Program Accelerated Farm-in renegotiated and program extended and expanded Drilling rig upgrade complete with drilling and coring at Charal-1 underway Hydraulic stimulation and testing of the wells to begin in…
Unconventional: The Road Ahead Book 2C Book 2C Resource Resource (2 wells) (4 wells tested) 2013 2014 2015 Activity Sept Dec Mar Jun Sept Dec Mar Jun Sept Dec Q Q Q Q Q Q Q Q Q Q UNCONVENTIONAL Drillsearch at 40% funding…
Reserves Growth Outpaces Production 2P Reserves* have grown significantly 2P Reserves* have increased in over the past five years HY2014 despite record production 28.5 29.1 (0.2) 0.7 MMboe 0.2 (1.4) 1.3 MMboe 11.1…
Profitability Continuing to Improve 2P Reserves 29.1 mmboe HY14 Production 1.8 mmboe HY14 Revenue 200.3 million HY14 Gross Profit 125.9 million HY14 Reported NPAT 35.5 million Cash position at 31 December 2013 76 million…
Capital Expenditure Original Capex Capex Guidance FY2014 Guidance (March 2014) M M Exploration Oil 22 27 25 29 Wet Gas 8 10 45 Unconventional 11 14 30 34 Total Exploration 42 51 60 68 Development Oil 33 41 38 43 Wet Gas 15 18…
Robust Balance Sheet to Support the Strategy Cash on hand at 31 December 2013 of 76.0 million Drillsearch is fully funded through organic cash flows through FY2016 160,000 140,000 100,731 6,341 22,483 120,000 50,000…
Active drilling in all businesses 2013 2014 2015 Permit DLS % Operator Total Sept Dec Mar Jun Sept Dec Mar Jun Q Q Q Q Q Q Q Q OIL Western Flank 60-43 BPT/SXY Wells for this period to be finalised with JV 14 Eastern Margin 40…
Summary Focused on growing production, reserves and cash flow Record production of 3.0 to 3.3 mmboe expected in FY2014; reserves increasing even as production surges with recent PEL 91 successes to be factored in at 30 June 2014…
Appendices
Corporate Profile Financial Share Price Performance (Since 1 July 2013) ASX Ticker ASX: DLS 160% 150% S&P/ASX Index ASX 200 DLS.ASX XEJ.ASX 140% Market Cap (Am) 705 130% Shares on Issue (m) 432 120% Share Price (10 March 2014)…
Gross Margin: BOE Analysis 140.00 Oil Gross Margin (/boe) Gross Margin per boe for both oil and 120.00 gas has increased 100.00 Avg Price: 116.00 Avg Price: 126.31 Margin: 81.02 Gross margin increased by 9/bbl as a A…
Net Profit Reconciliation 190,000 200,337 56,180 140,000 18,219 7,039 Valuation 6,498 112,401 17,899 Income Tax 90,000 4,925 FX 32,494 21,549 40,000 PRRT 35,534 (3,370) (10,000) HY13 Revenue Direct Op DD&A…
Reserves and Resources as at 31 December 2013 As a result of the arithmetic aggregation of the field totals, the aggregate 1P estimate may be conservative and the aggregate 3P estimate optimistic, as the arithmetic method does not…
Project Areas: Oil Business Western Flank Oil Fairway PEL 91 PEL 182 Eastern Margin Oil Fairway ATP 299P ATP 783P DLS Interest 60% 43% DLS Interest 40% 100% Operator Beach (40%) Senex (57%) Operator Santos (60%) Drillsearch Discoveries…
Project Areas: Wet Gas Business Western Wet Gas PEL 106 (B) PEL 632 (106A) PEL 107 PEL 513 DLS Interest 50% 40% 60% 40% Operator Beach (50%) Santos (60%) Beach (40%) Santos (40%) Discoveries 8 8 -1 - Fields in Production 3 1 shut in -…
Project Areas: Unconventional Business Central Unconventional ATP 940P ATP 932P DLS Interest 40% operator 100% operator QGC (BG Group) 60% N/A Discoveries - - Fields in Production - - - 3D Seismic coverage 45% of 1,1347km 2…
Committed to HSE and Good Corporate Citizenship HSE no lost time injuries Prioritize importance of corporate social responsibility Corporate governance upheld to highest standards Thargomindah Primary School P&C fund…
Strong Management Team and Board Brad Lingo Ian Bucknell David Evans Peter Fox Duncan Lockhart Dudley White Managing Director Chief Financial Acting Chief Chief Commercial Acting Chief GM Corporate Brad has more than Officer…
HEAD OFFICE LEVEL 16 55 CLARENCE STREET SYDNEY NSW 2000 PH: +61 2 9249 9600 FX: + 61 2 9249 9630 E: ADMINDRILLSEARCH.COM.AU W: WWW.DRILLSEARCH.COM.AU Please contact for further information DUDLEY WHITE GM CORPORATE COMMUNICATIONS
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