Lion Energy Limited · ASX:LIO
Lion Energy — Investor Presentation (September 2013)
31 slides from Lion Energy's investor presentation, Sep 25, 2013
Slide 1: Recapitalised, Reskilled & Repositioned
Recapitalised, Reskilled & For personal use only Repositioned Capturing upstream, unconventional, exploration opportunities from Indonesia’s energy demand boom 25 September, 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 For personal use only Lion (Lion Shares) under the Australian Corporations Act (2
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 For personal use only with any transaction which may be contemplated by this Document. Lion Parties have the ri
Slide 4: Contents
Contents For personal use only Lion’s New look Strategy and Overview Indonesia Lion Positioning Footprint Milestones Business and News The Offer Appendix Plan Flow Recapitalised, reskilled & repositioned 25 September, 2013 4
Slide 5: Presenter Profiles
Presenter Profiles Kim Morrison For personal use only Proposed Managing Director and CEO Geologist background with 30 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 b
Slide 6: Overview
Overview • Lion will transform from a small Indonesian conventional oil producer to a first mover unconventional oil & gas pioneer in Indonesia For personal use only Lion to undertake • Lion will leverage synergies in conventional exploration, infrastructure and market a complete access into the eme
Slide 7: New Lion: combined strength of companies
New Lion: combined strength of 4 companies For personal use only Russell Brimage – Chairman Tom Soulsby – Proposed Director Jack Toby – Company Secretary Chris Newton – Proposed Director Strengths: Indonesian expertise, Strengths: Technical , commercial production, development transactional, financi
Slide 8: Clear strategy and aligned team
Clear strategy and aligned team For personal use only 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 pla
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 For personal use only Significant planning/expertise required for horizontal fracture stimulation Lion is targeting shale g
Slide 10: Why invest in Indonesian oil and gas?
Why invest in Indonesian oil and gas? • Diversified, resilient and fast growing economy and For personal use only civil democracy • Economic growth driving energy consumption and net oil imports • Declining supply, policy changes driving gas prices higher • Government actively promoting foreign inve
Slide 11: First mover advantage in Indonesian shale
First mover advantage in Indonesian shale Indonesia poised for growth in unconventional oil & gas, For personal use only Key Success Factors (KSFs) • US (and more recently Australia) helps define unconventional Key Success Factors High potential resources • Indonesia ra
Slide 12: Why focus on Sumatra?
Why focus on Sumatra? World class petroleum province with prolific oil prone For personal use only 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 m
Slide 13: Post transaction Indonesian asset portfolio
Post transaction Indonesian asset portfolio Two For personal use only 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 25 Septemb
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 For personal use only operator, Kufpec & Gulf Petroleum as co- venturers • Oseil field • ~2500 BOPD, 1P reserves 6.5 MMBBL as at 31/12/12
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 For personal use only • Large structures and attractive gas and oil leads • No exploration since 1992 • Matang 1 25mmscfd • Ready gas market • Existing Infrastructure (new Arun-
Slide 16: Unconventional Joint Study Applications (JSA's)
Unconventional Joint Study Applications (JSA’s) First Mover Advantage North Sumatra Basin 25.6tcf Gas, For personal use only 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
Slide 17: Positioning for growth
Positioning for growth For personal use only Long term Value phase growth • Secure 3 Unconventional • Unconventional resource Build phase PSC’s and de-risk with exploration programs to reserve & production movement • Secure JSA’s • Commercialise Lofin • Indonesia’s best • Drill Lofin 2 • SBA shallow
Slide 18: Milestones and news flow
Milestones and news flow Lion Activity and Key Event Timeline (Q3 2013 to end 2014) 2013 2014 Lion Interests/Activities Q3 Q4 Q1 Q2 Q3 Q4 For personal use only Corporate Shareholder approval AGM for new look Lion Relisting Relaunch and Rebrand Build team and Processes South Block A Upgraded SBA Seis
Slide 19: Business plan fully funded to end-2014
Business plan fully funded to end-2014 For personal use only Lion Energy: Sources and Applications of Funds Oct 13 to Dec 14 (in A$ million) Lion Corporate G&A 1.61 Seram Oil Sales 2.93 0.68 Transaction costs1 Working capital/ 2.26 2.00 New Acquisitions2 Public Raising Unconventional JSA's 1.49 SBA
Slide 20: Business objectives
Business objectives Convert JS Applications into • Convert at least three of the existing (or future) unconventional Joint Study For personal use only PSC Options Applications into approved and completed studies by end 2014 Continuously generate new • Continuously generate new unconventional opportu
Slide 21: Summary of offer
Summary of offer The prospectus includes an offer of: For personal use only - 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 t
Slide 22: Indicative timetable
Indicative timetable Event Date For personal use only Lodgement of Prospectus with ASIC 8 October Opening Date 23 October Closing Date 20 November General Meeting 21 November Completion of Proposed Transactions 5 December Issue Shares pursuant to Prospectus 5 December Anticipated date for reinstatem
Slide 23: Effect of proposed transactions
Effect of proposed transactions Lion Energy Pre Proposed Transactions Post Proposed Transactions For personal use only 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 K
Slide 24: Appendix
For personal use only Appendix SECTION 1: Lion: EXAMPLE OF A SECTION TITLE Recapitalised, HERE OVER Reskilled & SEVERAL LINES Repositioned Recapitalised, reskilled & repositioned 25 September, 2013 24
Slide 25: Experienced and motivated directors and advisors
Experienced and motivated directors and advisors Russell Brimage Tom Soulsby Chairman Non Executive Director For personal use only 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 ove
Slide 26: Lion Energy's partners and subsidiaries
Lion Energy’s partners and subsidiaries TE For personal use only 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 managemen
Slide 27: Transaction overview
Transaction overview 1. Lion is undertaking a series of Proposed Transactions: For personal use only • 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 share
Slide 28: Capital structure
Capital structure Transaction Shares Interest For personal use only (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 1
Slide 29: Why invest in Indonesia
Why invest in Indonesia Solid sustained economic growth For personal use only Diversified, resilient and fast growing economy and civil democracy Indonesia • Worlds 4th largest population (~250 million) • 10 years at > 5% p.a growth, US$1.0 Trillion GDP World Australia Growing gas supply demand gap
Slide 30: Why invest in unconventional exploration?
Why invest in unconventional exploration? Unconventional oil and gas production is reshaping global energy markets For personal use only 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 prod
Slide 31: Viable Sumatran unconventional targets
Viable Sumatran unconventional targets Unconventional Targets in Lions's Area of Focus North Sumatra Central Sumatra For personal use only Properties Lower Baong Belumai Formation Bampo Shale Telisa Formation Brown Shale/Kelesa Rock Description Marine shale with carbonate Marine calcareous shale, Re