Lion Energy Limited · ASX:LIO
Lion Energy — Investor Presentation (November 2013)
31 slides from Lion Energy's investor presentation, Nov 5, 2013
Slide 1: Recapitalised, Reskilled & Repositioned
Recapitalised, Reskilled & Repositioned Capturing upstream, unconventional, exploration opportunities from Indonesia’s energy demand boom 5 November, 2013
Slide 2: Important notice and disclaimer
Important notice and disclaimer Important Information about this Document The information in and accompanying this Document has been compiled by Lion Energy Limited (Lion) in relation to the offer of ordinary shares in Lion (Lion Shares) under the Australian Corporations Act (2001) (Cth) (Corporatio
Slide 3: Important notice and disclaimer (cont)
Important notice and disclaimer(cont) Neither the issue of this Document nor any part of its contents is to be taken as any form of commitment on the part of Lion to proceed with any party with any transaction which may be contemplated by this Document. Lion Parties have the right at any time, in th
Slide 4: Contents
Contents Lion’s New look Strategy and Overview Indonesia Lion Positioning Footprint Milestones Business and News The Offer Appendix Plan Flow Recapitalised, reskilled & repositioned 5 November, 2013 4
Slide 5: Presenter Profiles
Presenter Profiles Kim Morrison Proposed Managing Director and CEO Geologist background with 28 years of international experience including a strong SE Asian focus. Former roles include: Exploration Manager for Woodside in Libya, Team Leader for Shell SE Asia New Ventures based in The Hague and
Slide 6: Overview
Overview • Lion will transform from a small Indonesian conventional oil producer to a first mover unconventional oil & gas pioneer in Indonesia Lion to undertake • Lion will leverage synergies in conventional exploration, infrastructure and market a complete access into the emerging Sumatran shale a
Slide 7: New Lion: combined strength of companies
New Lion: combined strength of 4 companies Russell Brimage – Chairman Tom Soulsby – Proposed Lion Director Jack Toby – Company Secretary Chris Newton – Proposed Lion Director Strengths: Indonesian expertise, Strengths: Technical , commercial production, development transactional, financial, Indonesi
Slide 8: Clear strategy and aligned team
Clear strategy and aligned team that Leverages to Capture Clear Vision and Exploits Capabilities & High-graded and Mission Discontinuities Track Record Opportunities • Leading Indonesian • Risco’s skill set • Declining conventional • Capture first mover value unconventional player spanning technical
Slide 9: Unconventional oil and gas
Unconventional oil and gas US shale gas and tight gas production now >60% total gas production. Oil > 15% of total production Geological setting for unconventional hydrocarbons Significant planning/expertise required for horizontal fracture stimulation Lion is targeting shale gas/oil and tight gas/o
Slide 10: Why invest in Indonesian oil and gas?
Why invest in Indonesian oil and gas? • Diversified, resilient and fast growing economy and civil democracy • Economic growth driving energy consumption and net oil imports • Declining supply, policy changes driving gas prices higher • Government actively promoting foreign investment • Material unco
Slide 11: First mover advantage in Indonesian shale
First mover advantage in Indonesian shale Indonesia poised for growth in unconventional oil & gas, Key Success Factors (KSFs) • US (and more recently Australia) helps define unconventional Key Success Factors High potential resources • Indonesia ranks well with a number
Slide 12: Why focus on Sumatra?
Why focus on Sumatra? World class petroleum province with prolific oil prone source rocks • 24.2 BBoe ultimate recoverable, 71% oil/condensate (USGS 2000) • Extensive well and seismic data Extensive and expanding gas infrastructure and markets • Pipeline to Java and Singapore markets • Gas shortages
Slide 13: Post transaction Indonesian asset portfolio
Post transaction Indonesian asset portfolio Two unconventional applications in prolific mixed HC phase North Sumatra Basin Two unconventional applications in prolific oil prone Central Sumatra Basin INDONESIAN BASINS AND FIELDS Recapitalised, reskilled & repositioned 5 November, 2013 13
Slide 14: Seram (Non-Bula) PSC
Seram (Non-Bula) PSC Oseil facilities Growing production, appraisal upside in under-explored PSC with excellent terms • Lion has strategic 2.5% interest, CITIC is operator, Kufpec & Gulf Petroleum as co- venturers • Oseil field • ~2500 BOPD, 1P reserves 6.5 MMBBL as at 31/12/12 (Lion Share 63 BOPD,
Slide 15: South Block A PSC
South Block A PSC North Sumatra Basin heartland position - Current 170km 2D program to high grade a prospect for 2014 well • Large structures and attractive gas and oil leads • No exploration since 1992 • Matang 1 25mmscfd • Ready gas market • Existing Infrastructure (new Arun- Medan pipeline coming
Slide 16: Unconventional Joint Study Applications (JSA's)
Unconventional Joint Study Applications (JSA’s) First Mover Advantage North Sumatra Basin 25.6tcf Gas, 900mmbbl Condensate • 4 JSA’s submitted over 17,000km2 700mmbbl Oil • Potential productive shales interpreted to be at suitable maturity for shale gas/oil from 1,200-6,900 km2 (multi-TCF potential,
Slide 17: Positioning for growth
Positioning for growth Long term Value phase growth • Secure 3 Unconventional • Unconventional resource Build phase PSC’s and de-risk with to reserve & production exploration programs movement • Secure JSA’s • Commercialise Lofin • Indonesia’s best • Drill Lofin 2 • SBA shallow drilling unconvention
Slide 18: Milestones and news flow
Milestones and news flow Transaction will provide Lionfunding through Activity and 2014Timeline (Q3 2013 to end 2014) Key Event 2013 2014 Lion Interests/Activities Q3 Q4 Q1 Q2 Q3 Q4 Corporate Shareholder approval AGM for new look Lion Relisting Relaunch and Rebrand Build team and Processes South Blo
Slide 19: Business plan fully funded to end-2014
Business plan fully funded to end-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 Placeme
Slide 20: Business objectives
Business objectives Convert JS Applications into • Convert at least three of the existing (or future) unconventional Joint Study PSC Options Applications into approved and completed studies by end 2014 Continuously generate new • Continuously generate new unconventional opportunities to ensure the p
Slide 21: Summary of offer
Summary of offer The prospectus includes an offer of: - A Public Offer of 10m Shares at 20 cents per share to raise A$2m (minimum subscription) - A placement of 30m Shares at 20 cents per share to Risco to raise A$6m - A placement of 7.5m Shares at 20 cents per share to Tower to raise A$1.5m - An is
Slide 22: Indicative timetable
Indicative timetable Event Date Lodgement of Prospectus with ASIC 5 November 2013 Opening Date 13 November 2013 General Meeting On, or about, 12 December 2013 Closing Date 16 December 2013 Completion of the Proposed Transactions 8 January 2014 Issue Shares pursuant to Prospectus and dispatch of hold
Slide 23: Effect of proposed transactions
Effect of proposed transactions Lion Energy Pre Proposed Transactions Post Proposed Transactions Shares on Issue 128 million 95 million Options on Issue 91 million: 4 million Share Price 1.8 cents 20 cents (based on issue price of shares) Working Cap A$0.3million A$9.5million Key Assets 2.5% of Sera
Slide 24: Appendix
Appendix SECTION Lion: 1: EXAMPLE OF A SECTION TITLE Recapitalised, HERE OVER Reskilled & SEVERAL LINES Repositioned Recapitalised, reskilled & repositioned 5 November, 2013 24
Slide 25: Experienced and motivated directors and advisors
Experienced and motivated directors and advisors Russell Brimage Tom Soulsby Chairman Non Executive Director 30 years experience in the upstream oil and gas Founding Director of Risco and former Director at PT industry Energi Mega Persada (“EMP”), responsible for adding over 500mmboe 2P reserves
Slide 26: Lion Energy's partners and subsidiaries
Lion Energy’s partners and subsidiaries TE Name • Risco Energy Investments Pte Ltd • Tower Energy Indonesia Limited • KRX Energy Pte. Ltd Business model • Energy investment company whose • Tower is an investment holding • Explores for oil and gas in South founders and management have a company forme
Slide 27: Transaction overview
Transaction overview 1. Lion is undertaking a series of Proposed Transactions: • Transformation from a small Indonesian oil producer into a potential first mover player in the emerging Indonesian unconventional Oil & Gas space, through the acquisition of all the remaining shares in KRX and rights to
Slide 28: Capital structure
Capital structure Transaction Shares Interest (m) (%) Share consolidation (1:8) Existing Lion Shares 16.0 16.8 Risco and Tower to fund Lion Convertible Note loan facility 7.5 7.9 Risco and Tower to invest new equity in Lion 37.5 39.4 Lion to acquire 70% of KRX it does not own 11.6 12.2 Lion to acqui
Slide 29: Why invest in Indonesia
Why invest in Indonesia Economic growth drives energy consumption • Oil & gas demand growing at >3%p.a. Solid sustained economic growth • Supply falling • Unconventionals promoted to help meet this gap Projected Indonesian Oil and Gas Supply and Indonesia Demand Balance Mboe/d 6,000 World Demand: Hi
Slide 30: Why invest in unconventional exploration?
Why invest in unconventional exploration? Unconventional oil and gas production is reshaping global energy markets Turnaround in US Oil and Gas Reserves US Oil Production at 15 Year High Driven by Shale Oil Key 2013 Metrics: • US shale gas production now > 35% of total gas production and >40% of gas
Slide 31: Viable Sumatran unconventional targets
Viable Sumatran unconventional targets 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 shale, Restricted marine black