Lion Energy Limited · ASX:LIO
Lion Energy — Shareholder Meeting (July 2020)
24 slides from Lion Energy's shareholder meeting presentation, Jul 30, 2020
Slide 1: Seismic program set to commence in H2 2020
For personal use only LION ENERGY LIMITED – Seismic program set to commence in H2 2020 Investor Presentation – AGM July 30, 2020
Slide 2: Important notice and disclaimer
Important notice and disclaimer For personal use only 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: • sh
Slide 3: Material upside potential in contingent resources
Material upside potential in contingent resources For personal use only Net 2C gas 50BCF, net 2C oil 477,000 barrels Resources 100% Lion WI Share (as at 31 Dec 2019) Play Gas/Associated Gas Oil/Condensate Gas/Associated Gas Oil/Condensate Recoverable (BCF) Recoverable (MMbbl) Recoverable (BCF) Recov
Slide 4: Prospective Resources
Prospective Resources For personal use only Lion Net P50 Prospective Resource of 278 MMBBL Oil/Condensate and 1.1 TCF Gas Resources 100% Lion WI Share (as at 31 Dec 2019) Play Gas/Associated Gas Oil/Condensate Gas/Associated Gas Oil/Condensate Recoverable (BCF) Recoverable (MMbbl) Recoverable (BCF)
Slide 5: Notes to Accompany Reserves and Resource Tables
Notes to Accompany Reserves and Resource Tables For personal use only Notes: 1.Reserve estimates have been calculated using the deterministic method. Analysis of performance trends were used to estimate proved developed reserves. The performance trends associated with new well were used to assess ho
Slide 6: Company Overview
Company Overview For personal use only Overview and key milestones delivered Share price performance • Lion Energy (ASX: LIO) is an ASX-listed conventional oil and gas E&P company with working interests in two Indonesian gross split production sharing contracts: 700 0.040 600 0.035 1. 60% working in
Slide 7: Asset Overview
Asset Overview For personal use only East Seram Gross Split PSC (60% net to Lion Energy’s W.I.) Seram Basin Map with Gross P50 Prospective Resource Highlights • East Seram encompasses a large concession area of 6,505 km2 • JV partner: 40% CPC Corporation, Lion is the operator +29 MMBOE +39 MMBOE • G
Slide 8: 2020/21 Strategy – building value step by step
2020/21 Strategy – building value step by step For personal use only East Seram: Seismic acquisition a key step towards prospective resource to contingent resource / A reserves conversion • Finalise first stage seismic of high graded prospects and leads at East Seram in early 2020 • Acquiring offsho
Slide 9: Key Strengths and Investment Merits
Key Strengths and Investment Merits For personal use only 1 Participant in the developing Indonesian gas sector – a beneficiary of Asia’s rapid rates of energy consumption 2 Gross split PSC tax & royalty regime more conducive to investment compared to old cost recovery PSC regime High oil and gas pr
Slide 10: Leading participant in the developing Indonesian gas sector
1 Leading participant in the developing Indonesian gas sector – a beneficiary of Asia’s rapid rates of energy consumption For personal use only Primary Energy Consumption – Asia Pac vs. Rest of World (in million tons of oil equiv. per year) • Indonesia is situated on the doorstep of the world’s larg
Slide 11: Gross split PSC tax & royalty regime more conducive to investment
2 Gross split PSC tax & royalty regime more conducive to investment compared to old cost recovery PSC regime For personal use only East Seram Gross Split PSC structure Gross Split PSC fiscal summary • Under the new Indonesian Gross Split PSC regime, there is much reduced government oversight relatin
Slide 12: Gross split PSC tax & royalty regime: fiscal attractiveness and prospectivity
2 Gross split PSC tax & royalty regime more conducive to investment compared to old cost recovery PSC regime For personal use only Fiscal attractiveness and geological prospectivity East Seram PSC – “rare co-ordinates” • We believe the Lion Energy portfolio has: • high geological prospectivity for b
Slide 13: High oil and gas prospectivity portfolio – prolific hydrocarbon basins
3 High oil and gas prospectivity portfolio – region contains prolific hydrocarbon basins For personal use only Seram basin emerging as a major new under-explored basin Source: Lion Energy management’s analysis of regional plays 13
Slide 14: High prospectivity portfolio – proven, producing but un-creamed Seram Basin
3 High oil and gas prospectivity portfolio – located in the proven, producing but un-creamed Seram Basin For personal use only 2 main plays: (1) Manusela frac. carbonate play and (2) Shallow Plio-Pleistocene play • With only 9 existing wells testing the main Manusela play, the basin is grossly under
Slide 15: High prospectivity portfolio – two main productive plays
3 High oil and gas prospectivity portfolio – two main productive plays For personal use only Manusela play - Lofin gas discovery • Two main productive plays at East Seram: 1. Manusela fractured carbonate play: • Lofin 2.02 TCF gas + 18.25 MMBBL gross 2C oil/condensate discovery in 2015 • Oseil field
Slide 16: 2D Seismic Planning well underway
3 High oil and gas prospectivity portfolio – 2D Seismic Planning well underway For personal use only • New light-handed regulatory regime has significantly 2D Seismic Planning Map with Gross P50 Prospective Resource Highlights reduced bureaucratic burden PP5 PP4 • Planning offshore seismic in H2 202
Slide 17: Located near existing under-utilised processing and export infrastructure
4 Located near existing under-utilised processing and export infrastructure to monetize early production For personal use only Export Terminal Field Facility • Seram Non-Bula, which Lion has a 2.5% working interest in, has existing oil and gas infrastructure • Existing infrastructure in-place includ
Slide 18: Partnerships with well-funded strategic regional players
5 Partnerships with well-funded strategic regional players For personal use only Strengths and Strategies Key Farm-out Terms with CPC Corporation – September 2019 Farminee OPIC East Seram Corporation (owned by CPC Corporation, Taiwan) Farminee interest 40% working interest in East Seram Gross Split
Slide 19: Growth and returns-focused management team
6 Growth and returns-focused management team with considerable industry experience particularly in the Indonesian oil and gas sector For personal use only Tom Soulsby, Executive Chairman Chris Newton, Non Executive Director, Technical Advisor • CEO and founder of Risco Energy Investments with 28 yea
Slide 20: Lion Activities
Lion Activities For personal use only Busy period ahead 2019 2020 2021 Lion Interests/Activities Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 East Seram PSC Farm-Out Process G&G Study Seismic Survey planning Seismic Shot Offshore Onshore Seram (Non Bula) PSC Production Operations Procurement Process and planning for
Slide 21: Conclusion
Conclusion For personal use only Lion is undervalued and has a largely funded set of immediate growth opportunities which will derisk the Lofin ü gas discovery resource (net 50BCF to Lion) and lift production and delineate, through a well thought out and imminent 2D seismic program, high impact dril
Slide 22: Appendix
For personal use only Appendix 22
Slide 23: Seram analogous to major fold belts provinces
Seram analogous to major fold belts provinces For personal use only Globally host around 25% of total discovered reserves • >700 bboe discovered world wide Worldwide orogenic belts Seram FB shares similarities with major provinces: Seram FB shares similarities with PNG, • Source rock richness key su
Slide 24: Thank you
For personal use only Thank you For more information please contact: Tom Soulsby Damien Servant Executive Chairman Executive Director tsoulsby@lionenergy.com.au dservant@lionenergy.com.au Mobile: +62 81 2106 5956 Singapore: +65 9710 3104 24