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1 Corporate Presentation ASX:CMT November

2 Certain statements or estimates contained in this presentation, including information as to the future financial or operating performance of Cott Oil & Gas Ltd (Cott) and its projects, are forward looking statements or estimates. Such forward looking statements or estimates are necessarily based upon a number of assumptions and estimates that, while considered reasonable by Cott, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies; involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forwardlooking statements; and may include, among other things, statements regarding targets, estimates and assumptions in respect of production, prices, operating costs, results, capital expenditures, reserves, resources and anticipated flow rates, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions. Cott disclaims any intent or obligation to update publicly any forward looking statements, whether as a result of new information, future events or otherwise. All forward looking statements or estimates made in this presentation are qualified by the foregoing cautionary statements. Investors are cautioned that forward looking statements and estimates are not guarantees of future performance and accordingly investors are cautioned not to rely on forward looking statements or estimates due to the inherent uncertainty therein. This presentation is not an offer of securities and is not a disclosure document. 2

3 PNG focused oil & gas explorer and project developer Flagship asset is the Pandora Gas Field (CMT:40%) an offshore gas discovery with 2C 800 bcf with exploration upside 2C Resource net to Cott of 320 bcf (50mmboe) Previous license holders suggest Pandora could contain up to 1.3 Tcf gas in place FLNG development concept demonstrates Pandora is technically and commercially viable PNG is a growing LNG hub for Asia Cott s licenses offer excellent exposure to this market FLN developers have expressed strong interest in a Build Own Operate (tolling) model for project Also holds net 9,617km 2 of highly prospective onshore licenses in PNG s Western Province 3

4 ASX Code: CMT Issued Capital: Ordinary Shares 77.0m Options ($0.20, Dec 2015) 22.8m Options ($0.25, Dec 2015) 4.4m Options ($0.30, Dec 2015) 4.4m Directors: Mr Stephen Dennis Chairman Mr Andrew Dimsey Managing Director Mr David Bradley Non Executive Director Company Secretary: Ms Sarah Smith Market Capitalisation: ($0.09/share as at 14 November 2014) $6.9m Cash (31 October 2014): $2.7m Debt: Nil Major Shareholders: 12.9% International Exploration Services Ltd 8.7% Michael O Keeffe (ex Riversdale Mining Chairman/ founder) 19.9% Cott Management/ Founders (escrowed until Jan 2015) Management: Mr Marc Jamet Technical Manager Mr Alistair Jobling Commercial Manager Head Office: 945 Wellington Street West Perth WA Australia

5 License (Area) % Operator Target Resource Location Comment Development Assets PRL 38 (Pandora) 40% Talisman Energy 2C 800BCF + Offshore Gulf of Papua, PNG EP % Strike Energy 16 BCF Carnarvon Basin Proposed FLNG or Near Shore LNG Project Retention License over Rivoli Discovery Exploration Assets PPL 435 (5,670 km 2 ) 50% Kina Petroleum Multi Tcf/MMbbls Western Province PPL 436 (13,122km 2 ) 50% Kina Petroleum Multi Tcf/MMbbls Western Province Large acreage provides development and commercial opportunities 5

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7 World class petroleum region, proven active hydrocarbon systems, close to Asian LNG demand Attractive fiscal regime with 2% royalty and 30% corporate tax rate First shipment from 6.9 mtpa PNG LNG project in May 2014 with expansion up to 5 trains planned Continued corporate activity including: Acquisition of interests in PDL10 and PRL21 (Western Province) by Osaka Gas and Mitsubishi Oil Search acquires % interest of PRL 15 for $900m Total purchases 40.1% of PRL15 for fixed ($401m) and contingent payments of up to $3.5 bn Transform Exploration acquires Eaglewood Energy Santos farm in to Talisman acreage and acquisition of interests from New Guinea Energy InterOil founder becomes strategic 20% investor in Kina Petroleum for $18m 7

8 Joint Venture: Cott 40% Talisman 25% (Operator) Kina 25% Santos 10% Pandora Gas Fields located in Gulf of Papua midway between Port Moresby and Daru in 120m of water at approx 1,400m TVD Carbonate reef structure with excellent porosity and deliverability Pandora 1X drilled in 1988 over A Structure discovering a 298m gas column which was tested at 57 mmscfpd Pandora B1X drilled in 1992 over B Structure discovering a 110m gas column which was tested at 43 mmscfpd Additional prospects and talus potential identified 8

9 Discovered by IPC in 1988 with follow up well drilled in km 2 of 3D seismic over permit to define a 2C Contingent Resource of 792 BCF 1 Extensive evaluation included production and pipeline studies, field development plan, acid gas management and metocean studies Growing awareness that many gas fields will not be developed other than with FLNG is driving technological development and reducing costs making FLNG far more commercially and technically viable Focus is on commercialising the PRL 38 interest through farmout of development program or part /full sale to advance production program. 9

10 FLNG vessel with 170,000m 3 storage 2 x 0.5 mtpa water cooled liquefaction trains (Black & Veatch PRICO ) External turret mooring Side by side or tandem offloading to be determined (subject to review of metocean conditions) Onboard gas treatment, incl amine tower and molecular sieve, to enable reinjection of acid gas stream into reservoir 10

11 Cott undertook Concept Study for Pandora Gas Field 1 mtpa vessel with 170,000m 3 storage Onboard gas treatment to enable re injection of sour gas Estimated Capex US$900m US$1,100m (US$900 US$1,100/ tpa) Operating Expenses Vessel operational expense (includes manning, maintenance, reagents) of US$1.50 US$2.00/mmBtu Cost of ownership approximately US$2.50 US$3.20/mmBtu 1 Combined operating cost of US$4 US$5.20/mmBtu should enable owner/operator to provide toll service at less than US$6/mmBtu With field development costs and transport costs both at less than $1.00/mmBtu, the Joint Venture should be able to deliver LNG to North Asia for approximately US$8/mmBtu 1 Based on complete amortisation over 10 years at 8% cost of capital 11

12 Project Vessel Owner Capacity mtpa Water depth (m) Status First Gas Caribbean FLNG Exmar 0.5 Near Shore Practical completion Yard commissioning 2H 2015 PFLNG1 (Kanowit) Petronas Topside Lifting underway 2016 PFLNG2 (Rotan) Petronas 1.5 1,128 EPCIC awarded 2018 Golar Hilli Conversion Golar LNG TBC* Keppel commencing conversion * Equatorial Guinea FLNG Excelerate 2.5 1,800 Midstream Partner appointed 2019 Energy Peru FLNG Exmar 0.5 Near Shore Cooperation Agreement with PRE TBC * Vessel yet to be committed to a project. Second conversion contract expected Caribbean FLNG Vessel at Wison Nantong Yard PFLNG 1 at DSME s Okpo Yard (April 2014) 12

13 Several parties with expertise in shipping, including Excelerate Energy, Exmar Marine, Golar LNG and Hoegh LNG, plan to provide toll liquefaction and storage to gas owners Build Own Operate Terminate (BOOT) contract underpinned by resource Vessel would be funded by equity and debt and therefore requires proponents with strong technical and financial credentials as well as appropriate insurance cover Liquefaction tariff to be determined to achieve vessel owner s required return on investment but likely to be around US$4 6/mmBtu depending on scale Commercially acceptable liquefaction tariff to be determined through open book analysis of construction, operation and finance costs Debt funding may be available from Export Credit Agencies, such as World Bank, China EXIM Bank and Australian Export Finance Insurance Corp (EFIC) 13

14 Pandora FLNG has potential to be a high margin LNG project: Acquired as an existing discovery therefore minimal sunk costs to recover Field development requires max 4 shallow wells with dry completions Acid gas can be removed on vessel or floating platform and re injected Toll treatment of pipeline quality gas can be delivered for less than US$6/mmBtu LNG can be transported to key Asian markets for US$1/mmBtu 14

15 Cott has identified the optimum pathway for development of the Pandora Gas Field and, potentially, other gas discoveries. It now looks to develop a working group that includes potential owner operators, contractors and adjoining licensees 15

16 5,346 km 2 licence approximately 50 Km southwest of PRL 21 2 large leads with basal Cretaceous sand potential adjacent to Lake Murray 1 gas flow Shallow (<1,500m) drilling targets with potential for gas and oil Good potential port infrastructure at Aiambak enabling access for bargemounted rig Aerogravity and aeromagnetic survey complete 16

17 13,122 km 2 permit with good liquids potential Excellent river access for bargemounted rig Proximity to proposed gas export infrastructure at Daru Good seismic correlation with existing aerogravity No wells drilled on Oriomo High Fairway structure 17

18 The following chart shows the value of recent pre development transactions for PNG gas discoveries compared to the current value of Cott Upside Base 18

19 Stephen Dennis (Non Executive Chairman) 25 years active involvement in the resources industry. He spent 14 years in senior management roles at MIM Holdings Limited, was Group General Manager and Chief Financial Officer of Minara Resources Limited until late Mr Dennis is currently the CEO and Managing Director of CBH Resources Limited. Andrew Dimsey (Managing Director) Co founder of Cott. 30 years of commercial experience as a senior executive of Beach Petroleum, Alliance Oil, Claremont Petroleum, Elders Resources, Arc Energy, Origin Energy. Focus on all commercial aspects of O&G industry mergers and acquisition, corporate restructuring, JV arrangements, operations and production. David Bradley (Non Executive Director) Energy industry commercial specialist with 30 years of business development experience including senior management roles with El Paso Corporation, Epic Energy, and consulting roles with Wood McKenzie as well as privately advising a broad range of upstream, midstream and downstream energy players in developing and executing commercialization strategies and business development initiatives. Experience includes significant M&A coordination roles realising over $2 billion in closed transactions. Board with considerable senior experience with ASX listed resources companies. 19