Lion Energy Limited · ASX:LIO
Lion Energy — Investor Presentation (June 2015)
25 slides from Lion Energy's investor presentation, Jun 2, 2015
Slide 1: A New Approach to Asian Energy
For personal use only RIGHT COMPANY RIGHT TIME RIGHT PLACE June 2015 A New Approach to Asian Energy
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: •sho
Slide 3: Important notice and disclaimer (cont.) – Reserves & Resources
Important notice and disclaimer (cont.) For personal use only Reserves & Resources, 1 Jan 2015 Gas/Associated Gas (bcf) Oil/Condensate (mmbbl) Method (Recoverable, net to Lion)1 Reserves 1P 2P 3P 1P 2P 3P Total Reserves (Seram) 0.119 0.173 0.241 Deterministic Contingent Resources 1C 2C 3C 1C 2C 3C T
Slide 4: Lion's positioning
For personal use only Lion’s positioning Conventional cashflow in Indonesia Skills, strategy and unique ability to execute Unconventional Local knowledge, upside relationships and skills A New Approach to Asian Energy www.lionenergy.com.au June 2015 4
Slide 5: Lion's unique value proposition
For personal use only Lion’s unique value proposition Linked conventional and unconventional growth model Strong growth driven management team Strategy for success in untapped Indonesian shales and tight sands Superior local knowledge and contacts First mover acreage build ongoing A New Approach to
Slide 6: Key Guiding Principals
For personal use only 6 Key Guiding Principals We seek 1. Heartland positions in 4. Low risk conventional assets, world-class basins near term production potential 2. High working interest positions, 5. Large upside, first mover operatorship unconventional advantage 3. Close proximity to 6. Best in-
Slide 7: What we are now
What we are now Summary For personal use only Capital structure •Shares on issue: 96m •Market cap @15c: A$14.4 million •Cash: A$5.2mil (31/3/2015) •Revenue: ~A$2 million pa Major shareholders: •Risco Energy Investments (54.7%) •Tower Energy (6.6%) •Management (13.5%) Assets: •Seram PSC (2.5%) - prod
Slide 8: Who we are
Who we are Well rounded team, proven track records Exploration geologist, 28 years of For personal use only 35+ years experience in oil and gas international experience including a strong Founder of Oilserv Australia Ltd, providing SE Asian focus drilling, well testing and production services
Slide 9: World-class expertise
World-class expertise Pre-eminent panel of industry advisors, wide-ranging skill set For personal use only Mr Roger Whyte Principal Advisor Dr Andrew Cullen Technical Advisor Geophysicist with extensive SE Asia exposure, Co-founder of KRX Petroleum geoscientist (BSc, MSc and PhD) which is now a
Slide 10: Indonesia's investment rationale
Indonesia’s investment rationale A unique opportunity in SE Asia For personal use only • Worlds fourth-largest population Indonesian oil and gas supply/demand (~250mil) • Fast-growing economy (GDP ~ 6%pa) with oil and gas demand growing at > 5%pa • Declining conventional oil/gas supply, Indonesia ap
Slide 11: Strategic focus
Strategic focus Linked conventional/unconventional approach For personal use only • Focus on Sumatra: prospective geology, infrastructure and markets • Using synergies in conventional exploration to understand our unconventional potential • Cost efficiencies • Near/mid-term cash flow potential • Ado
Slide 12: Delivering on our promises
Delivering on our promises Major discovery, Seram production boost, unconventional joint studies For personal use only • Lofin-2 success, material discovery for Lion • Strong production from Oseil field • ~3400 bopd (85 bopd net) • Further development approval, increase to 4000bopd+ (113 bopd+ net)
Slide 13: Seram (Non-Bula) PSC
Seram (Non-Bula) PSC For personal use only Seram PSC processing, storage facilities and marine export terminal A New Approach to Asian Energy www.lionenergy.com.au June 2015 13
Slide 14: Seram (Non-Bula) PSC Overview
Seram (Non-Bula) PSC Overview Block continues to exceed expectations For personal use only • 2.5% interest - CITIC (operator), Kufpec • Exciting results on Lofin-2 appraisal well and Gulf Petroleum as co-venturers • Continuing positive production and • Annual net revenue of circa A$2 million develop
Slide 15: Lofin-2 Success
Lofin-2 Success Material gas discovery for Lion, up to hydrocarbon1300m column For personal use only • Appraisal of Lofin discovery: 15.7mmscfpd • Wireline pressure testing indicates at least gas and 171 bpd of 36.1° API condensate 1106m gas column, with up to 1300m HC column possible in large Lofin
Slide 16: Oseil Field
Oseil Field Excellent production and development drilling results For personal use only • Production now exceeds 3400 bopd (85 bopd net to Lion) • 2014 Oseil-21 and -26 development wells currently producing over 1300 bopd combined • Latest Oseil-27 (completed May 2015), producing ~650 bopd, forecast
Slide 17: South Block A PSC (35%)
South Block a PSC (35%) Heartland position in prolific basin For personal use only Map of South Block A PSC showing key prospects • Exciting, underexplored block (1894km2) • New pipeline through area: • Recent Block A gas contract - US$9.45 mmbtu • 183 km seismic program complete, two high ranked ca
Slide 18: North Sumatran Unconventional
North Sumatran Unconventional February approval of 4684 km2 Joint Study For personal use only • Lion 55% with partners of overlapping conventional Bohorok PSC (Bukit, NZOG, SBL) 45% • Joint study with Indonesian University • Adjacent to PERTAMINA’s unconv. Sumbagut MNK PSC (first unconv. PSC awarded
Slide 19: Central Sumatra Unconventional
Central Sumatra Unconventional Unconventional JS in Bengkalis Graben area (2478 km2) For personal use only • Lion 75% and operator of joint study, with conventional PSC holder at 25% LNG import terminal • Joint study underway • Bengkalis Graben located in the east of the prolific Central Sumatra Bas
Slide 20: Indonesian World Class Oil/Gas Basins
Indonesian World Class Oil/Gas Basins Sumatra is Indonesia’s most established hydrocarbon province For personal use only Discovered hydrocarbons in Indonesian onshore provinces Sumatra 17.4 bbo, 41 tcfg, 1.1 bbc Kalimantan 1.7 bbo, 18.4 tcfg, 0.2 bbc East Indonesia Major source rock 0.7bbo, ~3 tcfg,
Slide 21: Indonesia's Prolific Onshore Basin
Indonesia’s Prolific Onshore Basin 5 basins in top 15 in region by discovered onshore conventional HC’s North & Central Sumatra highest hydrocarbon density (disc. HC’s per km2) For personal use only Asia-Pacific top15 onshore basins, ranked by discovered hydrocarbons Source: IHSE, various A New Appr
Slide 22: The unconventional acreage build
The unconventional acreage build Targeting 2 million plus net acres in prolific Sumatran basins Early days but assessments point to multi-tcf gas/multi-100’s mmbbl oil upside For personal use only Lion’s unconventional acreage growth staircase US unconventional examples Proved Net 2.5 Net acres rese
Slide 23: Lion Opportunity Funnel – New Business
Lion Opportunity Funnel – New Business Active negotiation, near-mid term exploration & production in Sumatra For personal use only New Venture Technical Negotiation / Final Exploration Screening Review DD activities Sign CA Submit Bid/Offer Sign Acreage Board Approval Undeveloped Java KSO fields N S
Slide 24: Milestones
Milestones Active program - good news flow, base funded through 2015 For personal use only Lion activity and key event timeline (4Q-2013 to end-2015) 2013 2014 2015 Lion Interests/Activities Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Transaction approved 22 Jan 2014 relisting Corporate Build Team/Processes, Manage
Slide 25: Thank you
For personal use only Thank you For more information please contact: Kim Morrison Stuart Smith Chief Executive Officer Executive Director 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 27