Beetaloo Energy Australia Limited · ASX:BTL
Beetaloo Energy Australia — Empire Energy Group — RBS Morgans Noosa Mining & Exploration Conference 2013
28 slides from Beetaloo Energy Australia's conference presentation, July 2013
Slide 1: Empire Energy Group
EMPIRE ENERGY GROUP RBS Morgans Noosa Mining & Exploration Conference July 2013
Slide 2: Disclaimer
2 Disclaimer Important Notice and Disclaimer The purpose of this presentation is to provide general information about Empire Energy Group Limited (“Empire Energy”). The presentation contains certain statements which may constitute “forward-looking statements”. Such statements are only predictions an
Slide 3: Overview
3 Overview • ASX:EEG OTC-QX:EEGNY Share price and volumes over the • Share Price = $0.10 past year • Mkt Cap = $30m • Debt 12,000,000 $0.25 = $45m • Cash = $ 4m 10,000,000 $0.20 • EV = $71m 8,000,000 • Grp EBITDAX = $12.5m $0.15 • EBITDAX/Int. 6,000,000 = 6.1x $0.10 • Shares issued = 304m 4,000,000
Slide 4: Who is Empire Energy?
4 Who is Empire Energy? Growing E&P Company Generates Consistent, Positive Cashflow Strong Management Team Significant Unconventional Potential in the USA and NT Asset Value above Current Enterprise Value Potential Value many multiples above Current Enterprise Value 4
Slide 5: The Assets
5 The Assets Production Development Exploration EBITDAX 2013 ~$13.5m N/a N/a HBP acreage 275,000 acres ~310,000 acres N/a Total acreage 318,000 acres ~400,000 acres 14,600,000 acres Conventional & Formations Conventional Unconventional Unconventional Reserves 2P = 11.3mmboe 3P = 80+mmbbl N/a Resourc
Slide 6: US Strategy
6 US Strategy • Strategy – Mid Con conventional oil assets • Target production – conventional +5,000 boepd • Acquisition Type - Accretive with no additional G&A • Acquisition Payback - ~5 years on 1P • Targets – heavy PDP with additional development opportunities • Drill bit – development drilling -
Slide 7: US Operations - Overview
7 US Operations - Overview • US Forecast full year 2013 • Revenue = $25.0 million • EBITDAX = $13.5 million • Oil/Gas Revenue 67%/33% • Production = 1,411 Boe/d • 2P = 11.3 MMBoe • 2P PV10 = $139 MM • +2,000 wells = low production risk • Active Hedging
Slide 8: US Production & Reserves
8 US Production & Reserves • Est. Production 1H2013 = 248,000Boe • 85,000 Bbl BOE production half yearly • 980 MMcf 300,000 250,000 • 1P = 9.3 MMBoe 200,000 • PDP = 8.5 MMBoe • PDNP = 0.2 MMBoe 150,000 • PUD = 0.6 MMBoe 100,000 50,000 • 2P = 11.3 MMBoe - Jun 2010 Dec 2010 Jun 2011 Dec 2011 Jun 2012
Slide 9: US 2P Economics
9 US 2P Economics • Natural gas reserves converted under SEC guidelines of 6Mcf = 1 Bbl Net Reserves and Net Present Values Reserve Oil Gas Total Current Capex PV0 PV10 Category MMBbl MMcf MMboe Boe/d $mm $mm $mm PDP 2,9 34,3 8,3 1,446 - 212,7 93,2 PDNP 0,3 0,3 1,9 14,2 5,7 PUD 0,6 0,1 0,6 10,0 29,4
Slide 10: Australia - Shale Basin Activity
10 Australia - Shale Basin Activity Majors committing to multi-phase exploration and appraisal programs $81m McArthur $80m Basin $150m $210m $152m $152m $107m $349m $12m $90m Phases and maximum expenditure based on milestones and programs with capped budgets
Slide 11: Why the McArthur Basin?
11 Why the McArthur Basin? Proven Petroleum Pipelines Existing System Proposed • Barney Creek Fm Gove • 1.64 Billion years old • Up to 900m thick EP(A) 180 600 km EP(A) 181 GRNT-79-09 EP(A) 182 6m EP(A) 183 EP 184 Proposed Blacktip to Katherine to • Velkerri Fm Gove pipeline • 1.43 Billion years old
Slide 12: McArthur Basin Profile
12 McArthur Basin Profile • Leases - 14.6 million ac (59,000km2) • WI=100% • Northern portion totally unexplored • Identified numerous conventional anticline, 4 way closed structures • Conventional/Unconventional targets • Barney Creek Shale up to 3,000’ thick • On volumetric terms - similar size to
Slide 13: Gas Market – Northern Territory
13 Gas Market – Northern Territory 1 LNG – Northern Territory 2 Monetisation Darwin a regional gas hub Liquids – Road to Darwin ConocoPhilips ~4m tpa Gas Demand: Inpex/Total et el ~6.8m tpa - Regional mines The current LNG plants: - Gas to Gove - LNG plants, Darwin - plan additional trai
Slide 14: A Clear Strategy
14 A Clear Strategy • 3 distinct exploration corridors Pipelines Existing • Geological Proposed • Define resource density Gove • Leverage infrastructure & customer EP(A) 180 • Rigorous technical focus NORTHERN • Program with Adelaide Univ Research Grp • Segments with organic enrichment EP(A) 181 • O
Slide 15: Basin Farm-In Comparables
15 Basin Farm-In Comparables The BOOM in Australian Shale Activity… Incoming JV / farm out Basin Date Amount Net Acreage US$ / Acre Mitsubishi / Buru Energy Canning Jun 2010 A$102m 9,200,000 $11 CNOOC / Exoma Galilee Dec 2010 A$50m 3,315,000 $15 Hess Corp / Falcon Beetaloo Mar 2011 US$93m 3,891,000
Slide 16: Traditional Owner Negotiations
16 Traditional Owner Negotiations • Arnhem Land - Heart of Aboriginal Culture • Total indigenous population ~10,000 • 47,952km2 Aboriginal Land (80%) with negotiations progressing • Agreement signed on 14th June 2013 for 11,220km2 Native Title - EPA 184 • Expected licence approval timetable EPA 180/
Slide 17: Unconventional: Marcellus Shale – NY/PA
17 Unconventional: Marcellus Shale – NY/PA • ~224,000 gross acres • WI = 99% • ~89% of acreage HBP • Minimal holding costs • Majority leases in oil/wet gas zone • Possible Reserves +77 MMBbls recoverable • Assumed 3% recovery factor • Based on 100,000 acres • Fracking Moratorium currently in place i
Slide 18: Unconventional: Utica Shale - NY/PA
18 Unconventional: Utica Shale - NY/PA • Utica higher carbonate/less clay than Marcellus • ~198,000 gross acres • ~50% of leases HBP • Minimal holding costs • Leases across all maturation zones • Thickness = 200-300ft • Gas Resource P50 GIP = 4.6 Tcf • Based on 40,000 acres • Or, ~190 MMBoe recovera
Slide 19: Cash Flow – 6 monthly
19 Cash Flow – 6 monthly • Empire Energy operator of 99% of assets • Drilling program to ensure IDC’s reduce taxable income Description Jun 2010 Dec 2010 Jun 2011 Dec 2011 Jun 2012 Dec 2012 J un 2013(1) Net Production: Oil Production - Bbls 414 55,657 88,331 90,467 92,495 90,426 84,774 Gas Productio
Slide 20: Valuing Empire
20 Valuing Empire Appalachia (gas), Kansas (oil) Conventional Current production, further development drilling, further Appalachia (NY) acquisitions Unconventional Shale oil – 70mmbbls+ McArthur Basin Production Shale gas – 5tcf+ GIP Unconventional (Fracking Moratorium Phase) Shale oil / gas PV10 (2
Slide 21: Organisation Structure
21 Organisation Structure Chairman/CEO Bruce McLeod USA USA Australia Fin Controller COO Bob Gustafson Al Boyer McArthur Basin Mid Con - VP Appalachia - VP Mgt/Exploration – 1 Tim Hull Rob Kramer Geo/Operations – 1 R&D-7 Engineer – TBA Supervisors – 4 Corp / Investor Rel – 1 Accounting – 1 Geology/G
Slide 22: Key Personnel - USA
22 Key Personnel - USA Bruce W McLeod , Chairman/CEO 1982 - B.Sc, B.Com, M.Com (Econ), University of Auckland. 2006 – Present - Empire Energy Group Limited responsible for operations in Australia and USA. 1988 – 2005 extensive experience in the Australian Corporate and Resource Capital markets. Invo
Slide 23: Key Personnel (cont.)
23 Key Personnel (cont.) Anthony Crisafio, Consulting CFO 2006 to Present - serves as an independent financial consultant, providing financial oversight to the Company. Director of PDC Energy Inc, an oil and gas company with operations in the Appalachians, Michigan and the Rocky Mountain Region. Pri
Slide 24: Key Personnel (cont.)
24 Key Personnel (cont.) Robert J Kramar, VP Mid-Continent Region 2002 – B.Sc Industrial Engineering, Kansas State University 2011 – Present responsible for Mid-Con operations, including prospects, workovers, well design, stimulation treatments, new production, regulatory compliance and Land and Geo
Slide 25: Key Personnel (cont.)
25 Key Personnel (cont.) Denise Cox, Consulting Geologist 1985 M.S. Geology, University of Colorado, Boulder, Colorado, University of Colorado Geology Scholarship, Association for Women Geologists Scholarship. B.S. Geology (honors), 1980, State University of New York, Binghamton, NY, Glenn G. Bartle
Slide 26: Key Personnel (cont.)
26 Key Personnel (cont.) Jim Womble, Consulting Geophysicist 1982 - B.S. Geology, minor in Mathematics cum laude, University of Alabama 1990 M.S. Degree in Geophysics from the University of Houston, and Computer Science, Florida State University. 2002 – Present - Womble & Associates consulting in Mi
Slide 27: Key Personnel - Australia
27 Key Personnel - Australia Dr John Warburton – Director & CEO Imperial Oil & Gas Pty Ltd - 27 years of technical and leadership experience in International Petroleum E&P including 11 years with BP and 4 years as General Manager Exploration & New Business for LASMO-ENI in Pakistan. John's petroleum
Slide 28: Contact Details
28 Contact Details Australia United States of America Empire Energy Group Limited Empire Energy USA, LLC Level 7, 151 Macquarie Street 380 Southpointe Blvd, Suite 130 Sydney, NSW 2000 Canonsburg, PA 15317 Attention: Bruce McLeod Attention: Bruce McLeod Title: Chairman/CEO Title: Chairman/CEO Ph: + 6
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