Lion Energy Limited · ASX:LIO
Lion Energy — Investor Presentation (May 2014)
23 slides from Lion Energy's investor presentation, May 2014
Slide 1: Company Overview May 2014
Recapitalised Reskilled Repositioned Company Overview May 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: Contents
CONTENTS Snapshot Our team Why Indonesia? Strategy Strengths Assets Milestones Recapitalised, reskilled & repositioned www.lionenergy.com.au May 2014 4
Slide 5: Company Snapshot
COMPANY SNAPSHOT An emerging pioneer in Indonesian unconventional oil and gas Restructuring Complete • Shares on issue: 95m • Market cap @20c: A$19 million • Cash: A$7.55mil (31/3/2014) • Revenue: ~A$2.2 million Major shareholders: • Risco Energy Investments (47%) • Tower Energy (14.4%) • Management
Slide 6: Board & Management
BOARD & MANAGEMENT High calibre team with successful track records Russell Brimage Kim Morrison Chairman Managing Director and CEO 30 years experience in the upstream oil & gas industry Exploration geologist with 28 years of international experience including a strong SE Asian focus. Founding
Slide 7: Advisory Board
ADVISORY BOARD Pre-eminent panel of industry advisors Dr Roger Whyte Sammy Hamzah Principal Advisor Principal Advisor Geophysicist with proven management experience and Founder of Tower Energy; Founder and CEO of extensive SE Asia exposure. Co-founder of KRX. Ephindo, Indonesia’s leading CBM com
Slide 8: Strengths
STRENGTHS The right mix of skills and expertise Technical • Best-in-class team • Leveraging big company expertise with small company agility • Advisory panel (tapping US/international unconventional knowledge) Commercial • Risco team involved in deals >$1billion in past 10 yrs • Entrepreneurial mana
Slide 9: Clear Strategy
CLEAR STRATEGY The leading unconventional player in Indonesia • Focus on Sumatra in areas with prospective geology, infrastructure and markets • The right mix of technical, commercial, operational and market skills • Indonesia’s attractive macro and industry environment • Build significant unconvent
Slide 10: Why Invest in Indonesia?
WHY INVEST IN INDONESIA? A unique opportunity in SE Asia • Worlds fourth-largest population (~250mm) Projected Indonesian Oil and Gas Supply Mboe/d and Demand Balance 6,000 Demand: • Fast-growing economy (GDP ~ 6%pa) with oil High-case and gas demand growing at > 5%pa 5,000 Mid-case 4,000 • Declinin
Slide 11: Unconventional Oil and Gas
UNCONVENTIONAL OIL AND GAS US shale gas/tight gas now >60% total production. Oil > 15% of total production. Emerging interest in Indonesia. Geological setting for unconventional hydrocarbons Significant planning/expertise required for horizontal fracture stimulation Lion is targeting shale gas/oil a
Slide 12: Early Mover Advantage
EARLY MOVER ADVANTAGE Indonesia poised for growth in unconventional oil & gas Key Success Factors (KSFs) • US, and more recently Australia, help define unconventional Key Success Factors High potential resources • Indonesia ranks well on many of these KSF’s, while other
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. • Current 183km seismic program: • Targeting leads with prospective r
Slide 14: South Block A PSC
SOUTH BLOCK A PSC Attractive prospect/lead portfolio in proven province Simpang • Large (25 km2) closure • Similar objective to recent new discoveries (Matang) • Gas/condensate and some oil potential • ~2000m well 1 Lion Share Gas/Associated Gas Oil/Condensate Leads Play Recoverable (BCF) Recoverabl
Slide 15: South Block A PSC Seismic program
SOUTH BLOCK A PSC Seismic program • 183 km seismic survey completed on budget • Commendable safety record (over one million man-hours with one LTI) • Data being processed • Shallow oil lead to be matured for 2014 drilling; deeper gas/condensate target for 2015 campaign Shothole drilling Seismic line
Slide 16: Unconventional Claims "Staked"
UNCONVENTIONAL CLAIMS “STAKED” Four Joint Study Applications (JSAs) submitted • Applications over 17,000km2: • If awarded, right to match bids on PSC North Sumatra Basin • In prolific Sumatran basins, ready access to infrastructure and markets • Shales with suitable properties, maturity for shale ga
Slide 17: Viable Unconventional Targets
VIABLE UNCONVENTIONAL TARGETS Prospective shales in Lion JSA areas Unconventional Targets in Lions's Area of Focus Properties North Sumatra Central Sumatra Lower Baong Belumai Formation Bampo Shale Telisa Formation Brown Shale/Kelesa Rock Description Marine shale with carbonate Marine calcareous sha
Slide 18: Seram (Non-Bula) PSC (2.5%)
SERAM (NON-BULA) PSC (2.5%) Production with exploration and exploitation upside • 2.5% interest - CITIC is operator, Kufpec and Gulf Petroleum as co-venturers • Annual net revenue of circa A$2.2 mil • Attractive fiscal terms and large sunk cost pool • Oseil Field: • Gross production ~2400bopd, with
Slide 19: Lofin Discovery
LOFIN DISCOVERY Potentially large gas/oil accumulation to be appraised in 2014 • Lofin-1 was total depth of 4,427m MD and intersected a gross hydrocarbon column of 160+m. • Tested 15.7 mmscfpd gas and 171 bpd of 36.1 API oil/condensate, with a flowing wellhead pressure 4,750 psi on 24/64 inch choke.
Slide 20: Milestones
MILESTONES An active program for 2014 with high impact potential Lion Activity and Key Event Timeline (Q4 2013 to end 2014) 2013 2014 Remaining 2014 Lion Interests/Activities net cost forecast Q4 Q1 Q2 Q3 Q4 A$mil Transaction approved 22 Jan 2014 relisting Corporate 1.3 Build Team/Processes, Manage
Slide 21: Fully Funded for 2014
FULLY FUNDED FOR 2014 Lion Energy: Sources and Applications of Funds Oct 13 to Dec 14 (in A$ million) Lion Corporate G&A 1.61 Seram Oil Sales1 2.93 Transaction costs1 0.68 Working capital2 2.26 Public Raising 2.00 Unconventional JSA's 1.49 SBA Seismic & Well 3.50 Risco/Tower Placement2 7.50 Seram Op
Slide 22: Why Invest in Lion?
WHY INVEST IN LION? Early mover in Indonesia’s emerging unconventional business • Management • Existing conventional assets • Priority rights via Joint Study Applications • Material upside potential • Attractive operating environment Russell Brimage Tom Soulsby Chris Newton Sammy Hamzah Kim Morrison
Slide 23: Thank you
Thank you For more information please contact: Kim Morrison Stuart Smith Chief Executive Officer Chief Financial Officer (Designate) 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