Lion Energy Limited · ASX:LIO
Lion Energy — Investor Presentation (December 2014)
24 slides from Lion Energy's investor presentation, December 2014
Slide 1: A New Approach to Asian Energy
A New Approach to Asian Energy Lion Investor Presentation December 2014
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. Such forward-looking statements: • should or can generally
Slide 3: Important notice and disclaimer (cont.)
Important notice and disclaimer (cont.) Reserves & Resources, 1 Jan 2014 Gas/Associated Gas (BCF) Oil/Condensate (MMbbl) Method (Recoverable, net to Lion)1 Reserves 1P 2P 3P 1P 2P 3P Total Reserves (Seram) 0.153 0.234 0.372 Deterministic Contingent Resources 1C 2C 3C 1C 2C 3C Total Contingent Resour
Slide 4: Presentation Overview
Presentation Overview Lion Update Why Indonesia? Our Team Strategy Assets Milestones A New Approach to Asian Energy www.lionenergy.com.au December 2014 4
Slide 5: Company Snapshot
COMPANY SNAPSHOT Linked conventional/unconventional Indonesian strategy Restructuring complete • Shares on issue: 95m • Market cap @20c: A$19 million • Cash: A$5.6mil (14/11/2014) • Revenue: ~A$2.5 million pa Major shareholders: • Risco Energy Investments (55.3%) • Tower Energy (6.1%) • Management (
Slide 6: Recent Lion Developments
RECENT LION DEVELOPMENTS Backdrop of renewed Government efforts to encourage oil & gas sector Seram (Non Bula) PSC - Lion 2.5% • Lofin-2 appraisal of 2012 Lofin discovery making good progress, currently at 764m MD with 20” casing set and cemented. Well scheduled to reach objective Manusela Limestone
Slide 7: Positive Changes in Indonesia
POSITIVE CHANGES IN INDONESIA President Joko Widodo: “Indonesia is open for business” • New President opening economy and encouraging investment In just a few weeks many major decisions have been made: • Replaced the Director General of Oil & Gas • Appointed new Chairman of SKK MIGAS • Approved seve
Slide 8: Why Invest in Indonesia?
WHY INVEST IN INDONESIA? A unique opportunity in SE Asia • Worlds fourth-largest population Projected Indonesian Oil and Gas Supply Mboe/d and Demand Balance (~250mm) 6,000 Demand: • Fast-growing economy (GDP ~ 6%pa) with High-case 5,000 oil and gas demand growing at > 5%pa Mid-case • Declining conv
Slide 9: Board & Management
BOARD & MANAGEMENT Well rounded team, proven track records Russell Brimage Kim Morrison Chairman Managing Director and CEO 35+ years experience in oil and gas Exploration geologist, 28 years of Founder of Oilserv Australia Ltd, providing international experience including a strong drilling, we
Slide 10: Advisory Board
ADVISORY BOARD Pre-eminent panel of industry advisors, wide-ranging skill set Mr Roger Whyte Dr Andrew Cullen Principal Advisor Technical Advisor Geophysicist with extensive SE Asia Petroleum geoscientist (BSc, MSc and PhD) exposure, Co-founder of KRX Involved in international and Nth American
Slide 11: Strengths
STRENGTHS The right mix of skills and expertise Technical • Best-in-class team • Big company expertise, small company agility • Advisory panel (tapping US/international unconventional knowledge) Commercial • Risco team involved in deals >$1billion in past 10 years • Proven track records of creating
Slide 12: Clear Strategy
CLEAR STRATEGY Linked conventional/unconventional approach • Focus on Sumatra: prospective geology, infrastructure and markets • Using synergies in conventional exploration to understand our unconventional potential • Cost efficiencies • Near/mid term cash flow potential • Adopt best practices from
Slide 13: South Block A PSC (35%)
SOUTH BLOCK A PSC (35%) Heartland position in prolific basin • Exciting, underexplored block (1894km2) • Recent new play success including Matang 1 discovery in adjacent PSC, estimated by participant Premier Oil to be 100-400 bcf. • 183 km seismic program complete: • Targeting leads with prospective
Slide 14: Paya Bili Prospect (Amanah Timur Well)
PAYA BILI PROSPECT (AMANAH TIMUR WELL) New seismic promising, location selected, Q1 2015 well plan • Shallow, pre-war oil field with unswept potential and untested deeper sands • On productive oil trend • ~700m TD well on crest • Oil with some gas likely • Well planning advanced A New Approach to As
Slide 15: Djerneh Prospect
DJERNEH PROSPECT Large attractive prospect, on trend with major fields to north (i.e. Pase) • Prominent anticline, four way dip (7 km2) with large sub-thrust closure (up to 40 km2) • 2014 seismic positive • Upgrade to prospective resources likely A New Approach to Asian Energy www.lionenergy.com.au
Slide 16: Seram (Non-Bula) PSC (2.5%)
SERAM (NON-BULA) PSC (2.5%) Continued good news through 2014 • 2.5% interest - CITIC is operator, Kufpec and Gulf Petroleum as co- venturers • Annual net revenue of circa A$2.5 mil • Attractive fiscal terms and large sunk cost pool • Production with exploration and exploitation upside • Oseil Field:
Slide 17: Lofin Discovery
LOFIN DISCOVERY Potentially major gas/oil accumulation • Lofin-1 was total depth of 4,427m MD and intersected a gross hydrocarbon column of 160m/525ft. • Tested 15.7 mmscfpd gas and 171 bpd of 36.1 API oil/condensate, with a flowing wellhead pressure 4,750 psi on 24/64 inch choke. • Pressure data in
Slide 18: Lion Unconventional Claims "Staked"
LION UNCONVENTIONAL CLAIMS “STAKED” Four Joint Study Applications (JSAs) submitted >17,000 km2 • Targeting basinal areas in North and LNG import Central Sumatra Basins terminal North Sumatra Basin • Potential world-class shale and tight gas/oil opportunities • North & Central Sumatran basins have 10
Slide 19: Indonesian, Australian Comparison
INDONESIAN, AUSTRALIAN COMPARISON Indonesia has 9x the onshore discovered reserves of Australia despite only a ¼ of the land mass Australia Onshore Indonesian and Australian Onshore Productive Basins • 4.2 bboe discovered (conv.) 18000 360 • ~100 unconventional wells Indonesia onshore basins have fa
Slide 20: Sumatran Unconventional Targets
SUMATRAN UNCONVENTIONAL TARGETS Challenge will be defining “sweet spots” of potential plays North Sumatra Central Sumatra South Sumatra Properties Belumai Brown Lehat/Lemat/ Lower Baong Bampo Shale Telisa Formation Talang Akar Fm Formation Shale/Kelesa Benakat Shale Restricted marine Lacustrine blac
Slide 21: Lion Opportunity Funnel – New Business
LION OPPORTUNITY FUNNEL – NEW BUSINESS Lion close to finalising deals with linked conventional/unconventional strategy New Venture Technical Negotiation / Exploration Screening Review Final DD activities Sign Submit Sign CA Bid/Offer Acreage Undeveloped Board Java KSO fields Approval N Sum 3 N Sum 2
Slide 22: Milestones
MILESTONES Active program - good news flow, funded through Q1 2015 Lion Activity and Key Event Timeline (Q4 2013 to end 2014) 2013 2014 Lion Interests/Activities Q4 Q1 Q2 Q3 Q4 Transaction approved 22 Jan 2014 relisting Corporate Build Team/Processes, Manage Assets South Block A Seismic Acquisition
Slide 23: Why Invest in Lion?
WHY INVEST IN LION? Early mover with linked conventional/unconventional strategy • Management • Existing attractive conventional assets in proven areas • World class potential in unconventional Joint Study Applications • Indonesia providing attractive operating environment Russell Brimage Tom Soulsb
Slide 24: Thank you
Thank you For more information please contact: Kim Morrison Stuart Smith Chief Executive Officer Executive Director kmorrison@lionenergy.com.au ssmith@lionenergy.com.au Office: +61 8 9211 1500 Indonesia: +62 811 460 395 Mobile: +61 404 490 964 Singapore: +65 9820 3889 Twitter: @LionEnergyASX