Mie Holdings Corp. · HKEX:1555

Mie — Investor Presentation (August 2016)

33 slides from Mie's investor presentation, August 2016

  1. Slide 1: MIE Holdings Corporation

    MIE Holdings Corporation August 2016 Strictly Private and Confidential

  2. Slide 2: Disclaimer

    Disclaimer The information contained in this presentation has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions co

  3. Slide 3: Introduction to MIE

    Introduction to MIE @® MIE Holdings Corporation |

  4. Slide 4: MIE assets overview

    Introduction to MIE MIE assets overview Major cash flow contributor Kazakhstan Jilin Oilfields • Net production of 6,029 BOPD in 1H2016 (14% decrease from 1H2015) due to natural (90% operator) decline, with no new wells drilled since 2H2014 • 24 mmboe of 2P reserves as of year end 2015 China • Attra

  5. Slide 5: Significant reserve base

    Introduction to MIE Significant reserve base Total oil reserves breakdown (as of Dec 2015) Equally likely that the actual quantity recovered is above or below the stated 2P quantity 180 160 High degree of confidence 29 1.0 160 stated Proved quantities will be 140 10 Low commercially recovered 64 0.2

  6. Slide 6: Further production growth potential from existing asset base

    Introduction to MIE Further production growth potential from existing asset base  Strategic scale back of Production forecast by technical consultants(1) 25,000 overall capital expenditures  Lowered production by Emir-Oil to reduce operating expense in 20,000 19,416 response to low 18,622 internat

  7. Slide 7: Company strategy

    Introduction to MIE Company strategy  Leverage favorable PSC terms – reallocate free cash flow amongst Group’s assets Optimize Existing Mature Assets  Extend production plateau through advanced technical application  Divest mature non-core assets with good valuations  Reduce operation cost and e

  8. Slide 8: 2016 operational guidance

    Introduction to MIE 2016 operational guidance # Gross Wells Net Capex (US$M) Net Production 2015 1H2016 2016 2015 2016 2015 1H2016 2016 Commentary Actual Actual Guidance Actual Guidance Actual Actual Guidance  Represents certain producer- China injector conversions, reservoir Oilfields - - - 5 5 6,

  9. Slide 9: Efficient allocation of resources

    Introduction to MIE Efficient allocation of resources FY2014 capex: US$205m FY2015 capex: US$83m FY2016 capex guidance: US$35m(1) 6% 14% 21% 27% 53% 26% 67% 86% China oilfields Emir-Oil SGE China oilfields Emir-Oil SGE China oilfields Emir-Oil China oilfields Emir-Oil US asset Group 3 3 drilled 3 We

  10. Slide 10: China Oilfields (Daan & Moliqing)

    China Oilfields (Daan & Moliqing)

  11. Slide 11: China Oilfields Overview

    China Oilfields (Daan & Moliqing) Overview China Oilfields  Located in Jilin Province and situated in the (Daan, Moliqing) Ownership 90% Songliao Basin, China’s most prolific oil- Total wells drilled in 2015 - producing basin Gross wells 2,609 Total area  90% participating interest in the foreign

  12. Slide 12: China Oilfields Operation & Financial Update

    China Oilfields (Daan & Moliqing) Operation & Financial Update Net oil production EBITDA Breakdown (US$/bbl)(1) 8,000 6,985 1H2015 1H2016 60 6,029 6,300 6,000 53.08 32.15 5,600 bopd 4,000 50 6.63 2.61 2,000 4.33 40 0.28 - 1H2015 1H2016 2016 Guidance 30 6.56 Lifting costs 2.24 10.00 4.27 20 39.23 8.5

  13. Slide 13: Kazakhstan Project (Emir-Oil)

    Kazakhstan Project (Emir-Oil)

  14. Slide 14: Kazakhstan Project (Emir-Oil) Overview

    Kazakhstan Project (Emir-Oil) Overview Emir-Oil  Acquired 100% shares in Emir-Oil in 2011 (Aksaz, Dolinnoe, Emir, Kariman) Ownership 100% Total wells drilled in 2015 -  First successful international acquisition Gross wells 48 Contract area 850km2  Located in the Mangistau Oblast in the Explorati

  15. Slide 15: Kazakhstan Project Operation Update

    Kazakhstan Project (Emir-Oil) Operation Update Exploration activities  Exploration well Aidai-1 finished drilling in June 2015 at total depth of 5,080m. The well had encouraging shows in the reservoir objective Triassic units and testing of the well is in progress.  YE2015 Reserve Report estimated

  16. Slide 16: Emir-Oil Operation & Financial Update

    Kazakhstan Project (Emir-Oil) Operation & Financial Update Net oil production New Export Sales Contract 5,000 FY2014 FY2015 1H2016 4,200 (1) Benchmark Oil Brent Urals (RCMB) Brent 4,000 3,306 3,296 Benchmark Price US$90.70 US$53.97 US$41.84 3,000 3,600 Discount US$20.98 US$5.56 US$5.40 bopd Net Real

  17. Slide 17: Emir-Oil EBITDA Breakdown

    Kazakhstan Project (Emir-Oil) Operation & Financial Update EBITDA Breakdown (US$/bbl)(1) 1H2015 1H2016 53.68 48.76 36.44 8.12 35.03 8.12 11.35 12.03 10.20 3.94 3.94 5.22 3.24 5.22 11.08 10.52 2.68 3.24 11.60 2.63 1.77 7.07 1.461.82 1.77 1.46 6.23 1.28 1.77 8.12 1.20 4.23 3.99 9.75 1.63 8.6 3.94 5.22

  18. Slide 18: U.S. Project (Condor)

    U.S. Project (Condor) @® MIE Holdings Corporation |

  19. Slide 19: U.S. Project (Condor) Overview

    U.S. Project (Condor) Overview Condor Energy Ownership 100% Net acreage 5,721 acres Niobrara (Condor Gross wells (horizontal) 5 Energy) Operation update Condor Acreage  Operates 5 horizontal wells in a Colorado Niobrara asset through Condor Energy  Operational and technological expertise gained fr

  20. Slide 20: Financial Update

    Financial Update @® MIE Holdings Corporation |

  21. Slide 21: Financial performance summary

    Financial Update Financial performance summary 1H2015 1H2016 Corp & Corp & (In US$ million) China Emir-Oil USA Others Total China Emir-Oil USA Others Total Revenue 66.8 30.0 0.5 - 97.3 34.8 23.8 0.3 - 58.9 Profit before income tax (11.3) (2.8) 3.8 (40.7) (51.1) (28.1) (5.3) (0.7) (45.8) (79.9) Net p

  22. Slide 22: Lifting costs analysis of China assets and Emir-Oil

    Financial Update Lifting costs analysis of China assets and Emir-Oil Lifting cost per barrel(1) 10.00 9.49 9.00 8.59 8.00 7.74 7.52 7.22 7.00 5.84 6.00 US$/bbl 5.00 4.31 4.00 3.66 3.00 2.35 2.00 1.00 0.00 1H2015 FY2015 1H2016 China oilfields Emir-Oil Total (1) Lifting costs includes directly control

  23. Slide 23: Key sales related statistics

    Financial Update Key sales related statistics Average realized oil price Revenue breakdown by region 60 (1) 150 53 54 52 (1) 42 40 39 98 40 36 (1) 100 32 33 1 (US$m) (US$m) 30 68 - 59 20 - 20 50 24 67 48 35 0 0 1H2015 2H2015 1H2016 1H2015 2H2015 1H2016 Jilin assets Emir-Oil export price MIE Total Oi

  24. Slide 24: Appendix

    Appendix @® MIE Holdings Corporation |

  25. Slide 25: Key milestones

    Key milestones Dec 2010 May 2011 Feb 2013 Apr 2014 Oct 2015 IPO on SEHK raised Issued US$400m Issued US$200m Issued US$500m Equity placement net proceeds of Senior Notes due Senior Notes due Senior Notes due raised net proceeds HK$750m 2016 2018 2019 of US$32m 2010 2011 2012 2013 2014 2015 2016 Nov

  26. Slide 26: Key corporate and shareholding structure (August 2016)

    Key corporate and shareholding structure (August 2016) Far East Energy Limited Celestial Public (Hong Kong)(1) 48.1% 7.2% 44.7% MIE Holdings Corporation (Cayman Islands) HKSE Listed Company 100% 100% 100% 34% 100% 100% PetroBroad MI Energy Gobi Energy Ltd Riyadh Energy Ltd MIE Jurassic MIE New Ventu

  27. Slide 27: Oil Resource Inventory

    Oil Resource Inventory 2C Contingent Resources PRMS Resources 14 2 13 12 11 Contingent: Quantities estimated, as of a given date, to be potentially recoverable from known 10 mmbbl accumulations by application of development projects, 8 but which are not currently considered to be 6 commercially reco

  28. Slide 28: Strong cash flow supported by PSC structure

    Strong cash flow supported by PSC structure Jilin assets oil allocation under PSCs 1H2015 1H2016 Production Net:Gross 41%(2) 41%(2) VAT 5% of the total gross production Calculated at progressive ad valorem rates, ranging from zero to 12.5% based on the annual Royalty production of individual project

  29. Slide 29: China Special Levy (Windfall Tax) Calculation

    China Special Levy (Windfall Tax) Calculation |<-----New Regime effective from 2015/1/1----->||<------------------------Old Regime---------------------->| Saved Windfall Effective Windfall Effective Oil Price Threshold Tax Rate Threshold Tax Rate Windfall Tax Tax Rate Tax Tax Rate Tax 40 65 0% -- 0.

  30. Slide 30: Jilin assets - sales and marketing

    Jilin assets - sales and marketing ● PetroChina has been MIE’s sole customer. Selling to PetroChina is MIE’s choice, not obligation Sole customer ● MIE believes PetroChina is the best customer given they make timely payments ● MIE transports all crude oil produced from oilfields through their pipeli

  31. Slide 31: Emir-Oil O&G Infrastructure Overview

    Emir-Oil O&G Infrastructure Overview  Current oil and gas rental facility:  Oil: 6,480 BOPD  Gas: 8.83 mmcfgpd Emir Central Gas Pipeline  New oil and gas processing facility processing 8.5km  Oil: 12,000 BOPD station  Gas: 21mmcfgpd (600,000m3/d) Aksaz Dolinnoe  New oil pipeline  Specificati

  32. Slide 32: Kazakhstan tax summary

    Kazakhstan tax summary ● Calculated based on the export sales price and ranges from as low as 0% if the export sales price is less than Rent export tax US$40 per barrel to as high as 32% if the export sales price per barrel exceeds US$190 ● Depends on annual production output. The tax code currently

  33. Slide 33: Kazakhstan tax summary (continued)

    Kazakhstan tax summary (continued) Export Duty (Effective March 2016) Export Rent Tax Average Crude Export Export Oil Market Price Duty Duty Rate 7% 11% 14% 16% 17% 19% 21% 22% 23% 25% 26% 27% 29% 30% 32% (US$/bbl) (US$/ton) (US$/bbl) Oil Price 40 50 60 70 80 90 100 110 120 130 140 150 160 170 190 L

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