Lion Energy Limited · ASX:LIO
Lion Energy — Good Oil Conference 2015
19 slides from Lion Energy's conference presentation, Sep 2, 2015
Slide 1: Bridging the Conventional / Unconventional Divide, an Indonesian Perspective
BRIDGING THE CONVENTIONAL / For personal use only UNCONVENTIONAL DIVIDE, AN INDONESIAN PERSPECTIVE Kim Morrison CEO, Lion Energy Good Oil Conference 2 September 2015 A New Approach to Asian Energy A New Approach to Asian Energy www.lionenergy.com.au September 2015
Slide 2: Important notice and disclaimer
Important notice and disclaimer Forward-looking statements Certain statements contained in this presentation, including information as to the future financial or operating performance of Lion and its projects are forward-looking statements. For personal use only Such forward-looking statements: • sh
Slide 3: Lion's Indonesian Focus
Lion’s Indonesian Focus Lion early mover in unconventionals with joint study applications made back in 2012 For personal use only • Targeting basinal areas with mature good quality source rocks in North & Central Sumatra Basins • Two joint studies awarded (~7200 km2) and over 50% complete • Two furt
Slide 4: Unconventional targets
Unconventional targets Continuum between conventional and unconventional. Indonesia defines unconventional as hydrocarbons from rocks requiring fracture stimulation For personal use only Conventional Reservoirs: relatively small volumes that are generally Good relatively easy to develop Quality Rese
Slide 5: Indonesia's Prolific Onshore Basins
Indonesia’s Prolific Onshore Basin 5 basins in top 15 in region by discovered onshore conventional HC’s North & Central Sumatra highest hydrocarbon density (discovered HC’s per km 2) For personal use only Asia-Pacific top 15 onshore basins, ranked by discovered hydrocarbons Source: IHSE, various A N
Slide 6: Indonesia Onshore Hydrocarbons
Indonesia Onshore Hydrocarbons ~37 bboe discovered, gas dominates recent success Unconventionals (shale/tight gas and oil) expected to give next step change to resource For personal use only additions however many challenges to overcome Gas Cond Impact of Unconventionals? Oil Source: IHSE A New Appr
Slide 7: Key Indonesian Onshore Basins
Key Indonesian Onshore Basins Sumatra basins standout for unconventional focus in terms of discovered HC’s, multiple plays, market access & infrastructure For personal use only Sumatra 18.8 bbo, 41 tcfg, 1.2 bbc + Market, infrastructure + Accessible terrain Kalimantan 1.7 bbo, 18.4 tcfg, 0.2 bbc + M
Slide 8: Key Source Rock Intervals/Plays
Key Source Rock Intervals/Plays Similarity in stratigraphy across Sumatra and Java For personal use only 1 Lacustrine/ restricted marine shales 2 Tight graben fill sandstone Max. Flooding Surface 3 Tight, platform carbonates 4 Condensed marine shales/carbonates 5 Tight outer shelf to turbidite sands
Slide 9: Sumatran Unconventional Targets
Sumatran Unconventional Targets Building core data and analysis will be critical to high-grade plays Unconventional Targets in Sumatra For personal use only North Sumatra Central Sumatra South Sumatra Properties Belumai Brown Lehat/Lemat/ Lower Baong Bampo Shale Telisa Formation Talang Akar Fm Forma
Slide 10: North Sumatra Unconventional Plays
North Sumatra Unconventional Plays Uplifted section: mature source rocks at reasonable drill depths Challenges: Source quality, distribution For personal use only ERODED SECTION Keutapang Section Top Baong Belumai shale and sst Bampo/Belumai shale, tight sands Peutu lst Unpad 2015 2.5km A South Bloc
Slide 11: North Sumatra Source Rocks
North Sumatra Source Rocks Potential in mid Miocene Lwr Baong, early Miocene Belumai and late Oligocene Bampo For personal use only Marine Middle Miocene Baong Formation includes oil-prone kerogen, mixed oil- and gas- prone kerogen, and gas-prone kerogen (Sjahbuddin and Djaafar, 1993). Paleogeograph
Slide 12: Central Sumatra Unconventional Plays
Central Sumatra Unconventional Plays Brown Shale source has high amplitude seismic signature within Pematang Fm, basinal intercepts limited. Contribution from interbedded sands likely.. Challenges: Fraccability of shales, waxy oil For personal use only Additional proven play with oil in low permeabi
Slide 13: Source in the Central Sumatran Basin
SOURCE IN THE CENTRAL SUMATRAN BASIN Lacustrine Brown Shale is a world class, oil prone source rock For personal use only • Deposited in localized N-S trending grabens. • Type I source rock: • Williams et al 1985 cite average TOC values of 2- 4% and locally up to 12%. Yarmanto et al 1995 cite averag
Slide 14: Defining Sweet Spots
Defining Sweet Spots Key Important to delineate most productive part of unconventional plays For personal use only Sumatra Tenure and relative low acreage outline acquisition costs means that Indonesian industry won’t have same pressure to drill to keep acreage as in US Source: A Cullen, Lion presen
Slide 15: Conventional/Unconventional Strategy
Conventional/Unconventional Strategy Synergies: data, operations, potential early cash flow Use conventional exploration to de-risk unconventional potential For personal use only Potential for Middle Baong sandstones TWT Lower Baong shales and carbonate unconventional target Peutu/Belumai objective,
Slide 16: Indonesia's unconventional rationale
Indonesia’s unconventional rationale A unique opportunity in SE Asia For personal use only • Worlds fourth-largest population (~250mm) Projected Indonesian oil and gas supply/demand balance Mboe/d • Fast-growing economy (GDP ~ 6%pa) 6,000 Demand: High-case • Declining conventional oil/gas supply, 5,
Slide 17: Unconventional Update
Unconventional Update Sumatra is most active area, new PSC’s in Java and Kalimantan For personal use only • Separate conventional and unconventional (Migas Non- Conventional) MNK PSC’s • 5 MNK licences granted to date: • MNK Sumbugat PSC - North Sumatra • MNK Kisaran - Central Sumatra • MNK Palmerah
Slide 18: The Challenge: Developing Indonesia's Unconventional Industry
THE CHALLENGE: DEVELOPING INDONESIA’s UNCONVENTIONAL INDUSTRY For personal use only Catalysts: • Energy demand, prices • Government support • Improved terms Success Factors: • Prolific basins • Use of conventional E&P to build knowledge/data (ie cores, Issues: 3D), cash flow • (Largely) unproven roc
Slide 19: Thank you
For personal use only Thank you For more information please contact: Kim Morrison Chief Executive Officer kmorrison@lionenergy.com.au Office: +61 8 9211 1500 Mobile: +61 404 490 964 A New Approach to Asian Energy www.lionenergy.com.au September 2015 19