Investor Afternoons Portfolio Operations Opportunities Cooper Energy Investor Afternoons Melbourne & Sydney 5 & 6 May 2014
Welcome The Cooper Energy Investor Briefings have been arranged to provide an insight into: the companys strategy for delivering sustainable and value-creating returns for our shareholders an insight into our assets and operations:…
Agenda 1. Strategy & portfolio overview 2. Cooper Basin 3. Indonesia 4. Otway Basin 5. Gippsland Basin 6. Tunisia 7. Summary & outlook 2014 INVESTOR AFTERNOONS: Portfolio Operations Opportunities 4
Presenters in order of appearance David P. Maxwell Managing Director David Maxwell joined Cooper Energy in September 2011, bringing over 25 years experience as a senior executive with companies such as BG Group, Woodside Petroleum and…
Strategy & portfolio overview David Maxwell Hector Gordon
Business model and focus Focus on returns & care through disciplined application of resources to core skills Total Shareholder Return and Health Safety Environment Community Strategy High margin oil Fundamentals focus: market,…
East Coast domestic gas demand & contracted supply PJ 800 Forecast east cost domestic demand 700 600 Contracted 500 supply from: Surat-Bowen 400 New supply contract opportunity. Bass 300 Otway 200 Gippsland 100 0 Cooper…
Indicative gas supply cost curve Indicative illustration of various reservoir types in Eastern Australia Economic ex-field gas price /GJ Other key variables Shale Liquids content Inerts content e.g. CO2, N2 Size/economy of scale…
Regional gas demand and availability Current gas 2P Reserves and 2C Resources and gas demand 2014 -24 Queensland LNG projects have a material impact 200% gas demand increase in short period LNG demand 15,5001 Catalysed significant…
Gas Strategy positioning for supply opportunities Cooper Basin Evaluating opportunities Otway Basin Built acreage position through acquisition and trades Permits now cover most of Casterton Formation play fairway 2 well program…
Portfolio Cooper Basin Oil Oil production Development & appraisal Exploration Otway Gas Exploration Gippsland Gas & Oil Development Appraisal & exploration Indonesia (onshore Sumatra) Oil production Development & appraisal Oil…
Reserves and production history 2P Reserves (MMbbl) Annual Production (MMbbl) 3.0 0.9 0.8 2.47 0.7 2.0 2.16 0.6 2.00 2P Reserves 1.91 1.88 0.5 1.44 0.4 Production 1.0 0.3 1.04 1.01 1.04 0.82 0.2 0.1 0.0 0.0 2004 2005…
Reserves and Contingent Resources Reserves1 MMbbl as at 30 June 2013 1P 2P 3P Cooper Basin 0.95 1.80 2.89 Indonesia 0.06 0.35 0.64 Total 1.02 2.16 3.53 Contingent Resources1 MMboe as at 30 June 2013 1C 2C 3C Cooper Basin 0.00 0.00 0.03…
Prospect Inventory shift to gas Fundamental shift in prospect portfolio driven by strategy Exploration Portfolio Only Oil vs. Gas Split1 Pre 2012 prospect portfolio primarily oil focused Current exploration portfolio 45% gas:55% oil…
Cooper Basin Hector Gordon Andrew Thomas Iain MacDougall
Cooper Basin Oil production and exploration Discovered 5.6 MMbbl (net) to date (1) Produced 3.8 MMbbl (net) to date (1) Revenue since 2002 359 million Current production 1,500 bopd Forecast FY14 Netback 90/bbl Oil sold to SACBU &…
Western Flank plays Source Patchawarra Formation Reservoir Namur Sandstone Hutton Birkhead Predominately structural traps Some stratigraphic trapping in Birkhead Namur Sst Nappamerri Formation is regional seal to Birkhead/Hutton…
Western Flank migration Section A-A A A Area where Permian Source has direct access to Jurassic reservoirs A A 2014 INVESTOR AFTERNOONS: Portfolio Operations Opportunities 19
Corridor of direct charge from Permian into Jurassic Nappamerri Edge Permian Edge Area where Permian Source has direct access to Jurassic reservoirs 2014 INVESTOR AFTERNOONS: Portfolio Operations Opportunities 20
Western Flank - two distinct play fairways Primarily Birkhead/Hutton Reservoir Plays Namur Sst Birkhead/Hutton Primarily Namur Reservoir Plays 2014 INVESTOR AFTERNOONS: Portfolio Operations Opportunities 21
PEL 92 Awarded October 2001 (COE 25%) Sellicks oil field discovered 2002 Production commenced FY04 35 exploration wells drilled, 13 discoveries (37%) 29 development wells EUR1 17 MMbbl (100%) - average field size 1.3 MMbbl (100%)…
PEL 92 Current status 12 Fields (Main fields: Callawonga, Butlers, Parsons & Windmill) 6,000 bopd (& 100,000 bwpd) from 35 producing wells Export primarily via Lycium-Moomba pipeline, supplemented by truck Forecast FY14 Netback…
PEL 92 Look forward 3 wells planned before end of FY14 Seismic interpretation of the Irus and Caseolus 3D ongoing to add to drilling portfolio Seismic reprocessing and inversion underway to address existing Namur play and emerging…
PEL 93 Awarded November 2001 (COE 30%) Worrior oil field discovered 2003, production commenced November 2003 6 exploration wells drilled, 2 discoveries (33%) 9 development / appraisal wells EUR 4.7 MMbbl (100%) Production to date…
Worrior oilfield Current status McKinlay/Birkhead main producing reservoirs Slow decline and high watercut New Patchawarra oil pool Identified in Worrior-8 Worrior-10 extended production test scheduled June 14 quarter Murta tight…
Worrior operations Drilling and workover operations at Worrior oil field Crude loadout at Worrior oil field 2014 INVESTOR AFTERNOONS: Portfolio Operations Opportunities 27
Worrior Field Patchawarra potential Worrior-8 flowed 670 barrels of oil per day with 0.7 million standard cubic feet of gas in 2013 Worrior-10 intersected 4.5m net oil pay Patchawarra Depth Map (5m) Reserve potential under…
Worrior Field Murta potential Murta Formation is regionally extensive, thinly interbedded sandstone shale sequence Oil shows noted in all wells on closure Successfully fracced and produced in adjacent fields Plan to frac and test in…
PEL 90K, 100 & 110 577 km2 Dundinna 3D seismic data acquired Processing to be completed July 2014 Key plays are Hutton/Birkhead and Triassic structural traps Drilling commences mid FY15 Vibroseis trucks providing sound wave…
Indonesia Andrew Thomas Iain MacDougall
Indonesia Why South Sumatra Prolific hydrocarbon province 285 discoveries - 3 billion bbl oil & 25 TCF gas Not rigorously explored with 3D Emerging Coal Bed Methane (CBM) & shale plays US8-10/GJ gas prices & market access…
Indonesia South Sumatra Basin Sukananti KSO (COE 55%) currently 300 bopd (100% basis) multiple low risk development opportunities Contractor share: oil 15%: gas 20%1 Sumbagsel PSC (COE 100%) shallow oil targets (1-5 MMbbls) CBM…
Sukananti KSO History Pertamina Era: Fields discovered in the 1990s: Tangai (1992), Sukananti (1996), Pertamina Cooper Bunian (1998) Rapid production decline - poor reservoir management & natural flow only Fields considered…
Simple, Low Cost, Effective Facilities Bunian Central Production Facility (CPF) Tangai Extended Production Test 2014 INVESTOR AFTERNOONS: Portfolio Operations Opportunities 35
Bunian - Production Analysis Example Bunian-1 160,000 barrels produced since Cooper Energy took over Oil Rate, Water Cut and GOR flat Very slow oil decline rate Indicates that well could be accessing a reasonably large resource…
Bunian Field pre and post 3D seismic Reservoir Depth Structure 2009 Reservoir Depth Structure - 2013 Map based on 2D seismic interpretation 3D seismic interpretation Structure shape and size changed significantly Bunian-2 Bunian-2…
Sumbagsel PSC COE awarded permit April 2011 for a 6 year initial exploration term Acquired 257 km of 2D seismic Key play types are structural and carbonate reefs Typical prospect sizes 5-10 MMbbl oil CBM potential Forward plan…
Sumbagsel 2013 Seismic Survey 257km acquired, up to 650 people in field, 179 days, 540,000 man-hours, zero lost time injuries Bridging along line Field Camp OGAN River 39 Shot-hole drilling River Crossing 2014…
Merangin III PSC COE awarded permit May 2013 for a 6 year exploration initial term Key play types are structural and carbonate reefs Shallow oil prospect potential 5-10MMbbl Deep gas prospect potential 100 to 500Bcf CBM potential…
Indonesia Look forward Increasing production in Sukananti KSO Drill 2-3 wells in Sukananti KSO Complete prospect inventory upgrade - mapping new seismic - completing geologic studies Farmout equity early FY15 Drill 1 well in…
Otway Basin Andrew Thomas
Otway Equity in 8 onshore exploration permits Jolly-1 complete and core under evaluation Bungaloo-1 currently drilling Objective to evaluate Casterton shale potential & Lower Sawpit tight gas 2014 INVESTOR AFTERNOONS: Portfolio…
Casterton Play Model Penola Trough contains up to 9km of sediment Casterton is a proven source rock Evaluation objectives: drill wells where Casterton is thermally mature for late oil / gas generation drill outside of mapped…
Jolly-1 results Drilled to a total depth 4,026m Formation Cores cut in Lower Sawpit and Casterton Formations Upper Sawpit Sandstone 340m of gas shows over Lower Sawpit section Sawpit Sandstone Lower Sawpit Formation…
Otway Look Forward Complete Bungaloo-1 well Complete analysis of Lower Sawpit and Casterton sections Determine next steps 2014 INVESTOR AFTERNOONS: Portfolio Operations Opportunities 49
Gippsland Basin Hector Gordon Iain MacDougall
Gippsland Basin Why offshore Gippsland Basin Proven conventional hydrocarbon province Gas & oil exploration opportunities Gas & oil development opportunities Access to gas market & infrastructure Fit with COE skill set Why the BMG…
Gippsland BMG Background Oil Project Overview of remaining resource Cooper Energy purchased 65% equity from Roc & Beach 1 million cash 5 million on first production Assumption of portion of abandonment liability if required…
BMG - Additional prospectivity Manta Appraisal & Exploration Opportunity Offset Appraisal A Manta-1 Manta-2A A Chimaera Mackerel Manta NW Formation Gummy Kate Shale - Basker & Pay Zone Exploration Volador Formation Chimaera…
Tunisia 3 permits covering 12,600 km2 Hammamet West oil discovery a potential development opportunity Multiple prospects and emerging fractured carbonate play potential proved by Hammamet West-3 ST-1 Competitive fiscal terms…
Hammamet West Field Contingent Resources Contingent Resource probabilistic estimates for the Abiod Fm 1C 2C 3C Gross Contingent Resource Estimates (P90) (P50) (P10) Oil MMbbl 11.6 34.5 99.8 Gas2 Bcf 5.3 17.9 59.7 Total Mmboe3 12.6…
Contingent Resource Range 95% of the Gross Contingent Resource range is potentially economic Economic range 2014 INVESTOR AFTERNOONS: Portfolio Operations Opportunities 58
Outlook & summary Hector Gordon David Maxwell
Exploration and Development activities FY15 (1) Location Major Activities 10-15 exploration wells Cooper Basin Approximately 5 development wells Seismic acquisition Review results of Jolly-1 and Bungaloo-1 Otway Basin Possible…
Indicative Growth Outlook Sustain and grow existing production and cashflow BMG transformational impact Acquisitions & Exploration significant growth Exploration: Indonesia, Otway, Cooper Basin Net Production MMboe…
Summary People, skills and financial capability to deliver further growth and value Growing valuable oil business Low cost/high margin Cooper Basin western flank production, development & exploration South Sumatra production…
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