Lion Energy Limited · ASX:LIO
Lion Energy — Investor Presentation (November 2014)
24 slides from Lion Energy's investor presentation, Nov 27, 2014
Slide 1: A New Approach to Asian Energy
A New Approach to Asian Energy For personal use only Lion Investor Presentation November 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 For personal use only forward-looking statements. Such forward-looking statements: • sh
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 For personal use only Reserves 1P 2P 3P 1P 2P 3P Total Reserves (Seram) 0.153 0.234 0.372 Determinis;c ConFngent Resources 1C 2C 3C 1C 2C 3C Tot
Slide 4: Presentation Overview
Presentation Overview For personal use only Lion Update Why Indonesia? Our Team Strategy Assets Milestones A New Approach to Asian Energy www.lionenergy.com.au November 2014 4
Slide 5: Company Snapshot
COMPANY SNAPSHOT Linked conventional/unconventional Indonesian strategy Restructuring complete For personal use only • 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
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% For personal use only • Lofin 2 appraisal of 2012 Lofin discovery making good progress, currently at 764m MD with 20” casing set and cemented. Well scheduled to reach objec;
Slide 7: Positive Changes in Indonesia
POSITIVE CHANGES IN INDONESIA President Joko Widodo: “Indonesia is open for business” For personal use only • 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
Slide 8: Why Invest in Indonesia?
WHY INVEST IN INDONESIA? A unique opportunity in SE Asia For personal use only • Worlds fourth-‐largest popula;on 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
Slide 9: Board & Management
BOARD & MANAGEMENT Well rounded team, proven track records For personal use only 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 includ
Slide 10: Advisory Board
ADVISORY BOARD Pre-eminent panel of industry advisors, wide-ranging skill set For personal use only 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 inter
Slide 11: Strengths
STRENGTHS The right mix of skills and expertise For personal use only Technical • Best-‐in-‐class team • Big company exper;se, small company agility • Advisory panel (tapping US/interna;onal unconven;onal knowledge) Commercial • Risco team involved in deals >$1billion in past 10 yrs • Proven track
Slide 12: Clear Strategy
CLEAR STRATEGY Linked conventional/unconventional approach For personal use only • Focus on Sumatra: prospec;ve geology, infrastructure and markets • Using synergies in conven;onal explora;on to understand our unconven;onal poten;al • Cost efficiencies • Near/mid term cash flow poten;al • Adopt best pr
Slide 13: South Block A PSC (35%)
SOUTH BLOCK A PSC (35%) Heartland position in prolific basin For personal use only • Exci;ng, underexplored block (1894km2) • Recent new play success including Matang 1 discovery in adjacent PSC, es;mated by par;cipant Premier Oil to be 100-‐400 bcf. • 183 km seismic program complete: • Targe;ng le
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 poten;al For personal use only and untested deeper sands • On produc;ve oil trend • ~700m TD well on crest • Oil with some gas likely • Well planning advanced
Slide 15: Djerneh Prospect
DJERNEH PROSPECT Large attractive prospect, on trend with major fields to north (i.e. Pase) • Prominent an;cline, four way dip (7 km2) with For personal use only large sub-‐thrust closure (up to 40 km2) • 2014 seismic posi;ve • Upgrade to prospec;ve resources likely A New Approach to Asian Energy w
Slide 16: Seram (Non-Bula) PSC (2.5%)
SERAM (NON-BULA) PSC (2.5%) Continued good news through 2014 For personal use only • 2.5% interest -‐ CITIC is operator, Kufpec and Gulf Petroleum as co-‐venturers • Annual net revenue of circa A$2.5 mil • Aorac;ve fiscal terms and large sunk cost pool • Produc;on with explora;on and exploita;on up
Slide 17: Lofin Discovery
LOFIN DISCOVERY Potentially major gas/oil accumulation For personal use only • Lofin-‐1 was total depth of 4,427m MD and intersected a gross hydrocarbon column of 160m/525l. • 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 chok
Slide 18: Lion Unconventional Claims Staked
LION UNCONVENTIONAL CLAIMS “STAKED” Four Joint Study Applications (JSAs) submitted >17,000 km2 For personal use only • Targe;ng basinal areas in North and LNG import Central Sumatra Basins terminal North Sumatra Basin • Poten;al world-‐class shale and ;ght gas/oil opportuni;es • North & Central Sum
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 For personal use only Australia Onshore Indonesian and Australian Onshore Productive Basins • 4.2 bboe discovered (conv.) 18000 360 • ~100 unconven;onal wells Indonesia o
Slide 20: Sumatran Unconventional Targets
SUMATRAN UNCONVENTIONAL TARGETS Challenge will be defining “sweet spots” of potential plays North Sumatra Central Sumatra South Sumatra For personal use only Properties Belumai Brown Lehat/Lemat/ Lower Baong Bampo Shale Telisa Formation Talang Akar Fm Formation Shale/Kelesa Benakat Shale Restricted
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 For personal use only Screening Review Final DD activities Sign Submit Sign CA Bid/Offer Acreage Undeveloped Board Java KSO fields Ap
Slide 22: Milestones
MILESTONES Active program - good news flow, funded through Q1 2015 Lion Activity and Key Event Timeline (Q4 2013 to end 2014) For personal use only 2013 2014 Lion Interests/Activities Q4 Q1 Q2 Q3 Q4 Transaction approved 22 Jan 2014 relisting Corporate Build Team/Processes, Manage Assets South Block
Slide 23: Why Invest in Lion?
WHY INVEST IN LION? Early mover with linked convenFonal/unconvenFonal strategy • Management For personal use only • Exis;ng aorac;ve conven;onal assets in proven areas • World class poten;al in unconven;onal Joint Study Applica;ons • Indonesia providing aorac;ve opera;ng environment Russell Brimage
Slide 24: Thank you
For personal use only 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