Lion Energy Limited · ASX:LIO
Lion Energy — Seapex 2017
26 slides from Lion Energy's conference presentation, Apr 28, 2017
Slide 1: Asia-Pacific Unconventionals: Where to next?
Asia-Pacific Unconventionals Where to next? Kim Morrison CEO, Lion Energy Andrew Cullen VP Geology, Warwick Energy Seapex 26-28 April 2017 A New Approach to Asian Energy A New Approach to Asian Energy www.lionenergy.com.au April 2017
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: Lion Energy Overview
Lion Energy Overview Actively involved in Indonesia since 1999, combined conventional/unconventional strategy • Highly experienced, Indonesian focused E&P company • ASX listed, majority Indonesian owned • 2.5% Seram PSC (delivers US$40K+ per month net cash) • 40.7% in North Sumatra SBA PSC (recent A
Slide 4: Presentation Outline
Presentation Outline Unconventional reservoirs North America current situation, some lessons Key Asia-Pacific onshore conventional basins Asia-Pacific unconventional update: China Australia Indonesia India Elsewhere in AP Issues, catalysts, key success factors Next steps A New Approach to Asian Ener
Slide 5: Unconventional Reservoirs
Unconventional Reservoirs Definition: Rock and/or fluid properties (permeability/viscosity) that require enhanced recovery techniques (i,e. fracture stimulation) to be produced at commercial rates Conventional Reservoirs: Continuum relatively small volumes that are generally Good between relatively
Slide 6: US Unconventional/Conventional Comparison
US Unconventional/Conventional Comparison Unconventional resources similar order of magnitude to produced conventional Williston Basin Appalachian Basin Conventional1: 3.8 bbo & 0.47 tcfg Conventional1: 3 bbo & 42 tcfg Bakken reserves2: 3.2 bboe Marcellus2: 42.8 tcf Denver Basin Conventional1:1.05 b
Slide 7: Anadarko Basin example: multiple horizontal plays
Anadarko Basin example: multiple horizontal plays 28,000 horizontal wells since 2000, vertical wells are now unconventional OKLAHOMA’S PRINCIPAL HORIZONTAL PLAYS 4 Horizontal Play Types Miss Lime Play 1. Source-rock shales Penn Sands (Woodford/Springer shales) STACK HNTN 2. Tight reservoirs adjacent
Slide 8: Anadarko Basin Meramac Play: analog for tight plays in AP?
Anadarko Basin Meramac Play: analog for tight plays in AP? Lwr Carboniferous siltstones interbedded with thin mature oil-prone source rocks. TYPE LOG STACK ft 0 GRn Rwa Res PHIE phin rhob MBOIP Silt to LF Sand Source Rock Turbidite siltstones 30-70% quartz. Source rocks with > 6%TOC Meramac play sta
Slide 9: Key observations/lessons from US unconventional industry
Key observations/lessons from US unconventional industry Shale gas production exceeds 40 bcf/d and tight oil ~4.5 mmb/d Rich subsurface dataset Focus on innovation, optimization, maximizing EUR, building type curves Key plays produced initially in some vertical wells Define core early integrate geol
Slide 10: Highlights of improvements in efficiency and production
Highlights of improvements in efficiency and production Since early 2014, major oil plays peak rates average ~30% improvement STACK PLAY (Meramec benches Anadarko UTICA SHALE (Appalachian Basin): IPs > Basin): Angus Trust well: IP 2,088 bopd, 70mmcfgd and some operators drilling 15.3 mmcfgd. Down-sp
Slide 11: Stunning Impact of Unconventionals on US economy
Stunning Impact of Unconventionals on US economy Governments in region should be actively encouraging unconventionals Source: America's Unconventional Energy Opportunity Harvard Business School and Boston Consulting Group 2015 Overall positive environmental impact 2015 energy-related CO2 emissions ~
Slide 12: Asia-Pacific top onshore basins by discovered HC's
Asia-Pacific top 15 onshore basins by discovered HC's Basins in China and Indonesian dominate Source: IHSE, various A New Approach to Asian Energy www.lionenergy.com.au April 2017 12
Slide 13: CHINA: Huge effort on shale gas since mid-late 2000's
CHINA: Huge effort on shale gas since mid-late 2000's Conv. onshore: ~50 bbo/cond, ~170 tcf gas; EIA est tight res. 1115 tcf gas. 32 bbo Unconventional production • Major existing tight gas production (i.e.Tarim Basin) 2013 tight gas: 1.47 tcf (~4 bcfg/d) • Significant CBM but coals lower permeabili
Slide 14: Sichuan Basin: Lower Silurian Longmaxi Shale play
Sichuan Basin: Lower Silurian Longmaxi Shale play Conventional Sinian-Cambrian dolomite-hosted resource & unconventional Cambrian- Silurian shale deposit, both trillion cubic meters gas accumulations • ~140 tcf shale gas in four blocks: Weiyuan, Sichuan Basin Silurian Thickness Ro Fushun-Yongchuan,
Slide 15: AUSTRALIA: Major CBM projects, limited success on tight plays
AUSTRALIA: Major CBM projects, limited success on tight plays Conv. onshore: 1.1 bbo/cond, 20 tcf gas / EIA est. tight resources: 430 tcfg/15 bbo1 • 2015 CBM production was ~0.6 tcf/1.6 bcf/d (APPEA 2016) ~4400 producing wells, Qld reserves ~40 tcf • Queensland Curtis LNG, Gladstone LNG, Asia Pacifi
Slide 16: Deals >A$1.2bbl (by 2013) for Aust. shale/tight plays
Deals >A$1.2bbl (by 2013) for Aust. shale/tight plays Some technical through no commercial success, gas flows Cooper, Beetaloo, Canning • Key local players have been Beach/Drillsearch, AWE, Buru Energy, Senex, Strike Energy, Origin and Santos. • Significant international companies have had forays in
Slide 17: INDONESIA: Significant shale/tight gas & oil potential
INDONESIA: Significant shale/tight gas & oil potential Conv. onshore 22.5 bbo/cond, 90 tcf gas; EIA est. tight resources: 96 tcfg/7.9 bbo1 • 54 CBM PSC’s (mainly Kalimantan/South Sumatra • ~160 wells drilled, no proven commercial projects Melucut-1 (issues with fit-for-purpose services e.g. drilling
Slide 18: Key Indonesian Onshore Basins
Key Indonesian Onshore Basins Sumatra basins standout for unconventional focus in terms of discovered HC’s, multiple plays, market access & infrastructure Sumatra 18.8 bbo, 41 tcfg, 1.2 bbc + Market, infrastructure + Accessible terrain Kalimantan 1.7 bbo, 18.4 tcfg, 0.2 bbc + Marine, lacustrine sour
Slide 19: Sumatran (and elsewhere) rift basin unconventional plays
Sumatran (and elsewhere) rift basin unconventional plays Ductile shales, waxy oil present issues 5 3 4 3 2 1 1 Organic rich lacustrine/ 3 Tight, platform carbonates 5 Tight, finely laminated outer restricted marine shales shelf to turbidite sands 2 Tight, finely laminated 4 Condensed organic-rich, h
Slide 20: Sumatran Unconventional (Shale) Targets
Sumatran Unconventional (Shale) Targets Building core data and analysis will be critical to high-grade plays Unconventional Targets in Sumatra North Sumatra Central Sumatra South Sumatra Properties Belumai Brown Lehat/Lemat/ Lower Baong Bampo Shale Telisa Formation Talang Akar Fm Formation Shale/Kel
Slide 21: Conventional/Unconventional Strategy
Conventional/Unconventional Strategy Use conventional exploration synergies to de-risk unconventional potential Potential for Middle Baong sandstones TWT Lower Baong shales carbonate, siltstone unconventional target Peutu/Belumai objective, major fields Lion's Jerneh prospect in North on trend Sumat
Slide 22: INDIA: Significant CBM potential & ONGC taking lead in shale gas
INDIA: Significant CBM potential & ONGC taking lead in shale gas Conv. Onshore:5.5 bbo/cond, 20 tcf gas; EIA est. tight resources: 46 tcfg/3.8 bbo1 • 2015 CBM: 27 mmscfg/d forecast to grow • Gondwana sediments of eastern India host bulk of coal reserves. • CBM potential ~92 tcf (DGH website) Shale G
Slide 23: Elsewhere in Asia Pacific
Elsewhere in Asia Pacific Issues with materiality, terrain, land access Vietnam Conv: minor gas only Philippines Conv: minor onshore gas/oil • Hanoi Trough CBM wells 2008-2011 • Some unconv. potential Cagayan Basin of Myanmar Conv onshore: 1.0 bbo, 2.5 tcfg limited success • Tertiary basin potential
Slide 24: The Challenge: developing Asia-Pacific's unconventional industry
The Challenge: developing Asia-Pacific's unconventional industry US experience shows unlocking the industry will have huge impact Catalysts Success Factors • Prolific basins • Basins with proven conventional production, manageable • Energy demand/gas prices terrain and infrastructure • Government su
Slide 25: Asia Pacific Unconventionals - a new dawn?
Asia Pacific Unconventionals - a new dawn? If AP basins were in the US, many more would be producing unconventional oil/ gas • Each basin/play is different, unique above/below ground challenges • North American plays cover broad spectrum of geological settings • Australia, China, India and Indonesia
Slide 26: Thank you
Thank you For more information please contact: Kim Morrison Andrew Cullen Chief Executive Officer Senior VP Geology Warwick Energy Ltd kmorrison@lionenergy.com.au andrew.cullen@warwick-energy.com Office: +61 8 9211 1500 Office: +1 405 607 3437 Mobile: +61 404 490 964 Mobile: +1 405 318 2840 A New Ap