Lion Energy Limited · ASX:LIO
Lion Energy — Shareholder Meeting (May 2016)
19 slides from Lion Energy's shareholder meeting presentation, May 30, 2016
Slide 1: Review of operations and forward plans
Review of operations and For personal use only forward plans Annual General Meeting July 2014 to December 2015 Reporting Period Lion Energy Limited May 2016 A New Approach to Asian Energy A New Approach to Asian Energy www.lionenergy.com.au May 2016
Slide 2: Important notice and disclaimer
Important notice and disclaimer Forward-looking statements For personal use only 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: Lion Reserves and Resources
Lion Reserves and Resources Indonesia Reserves & Resources, 31 Dec Gas/Associated Gas Oil/Condensate 1 Method 2015 (Recoverable, net to Lion) Recoverable (BCF) Recoverable (MMbbl) For personal use only Reserves1 1P 2P 3P 1P 2P 3P Total Reserves2,3 0.122 0.153 0.216 Deterministic 4 Contingent Resourc
Slide 4: Reporting period (July 2014-Dec 2015) - Highlights
Reporting period (July 2014-Dec 2015) - Highlights Outperformed appraisal/production forecasts, adjusting course to conventional growth strategy For personal use only Operations • Lofin-2 appraisal well in Seram (Non-Bula) PSC highly successful with up to 1300m gas column defined and Contingent Reso
Slide 5: Lion overview
Lion overview Prudent cash management, focus on developing assets & production growth For personal use only Capital structure • Shares on issue: 96.2m • Market cap@4.5cps: A$4.3 million • Cash: US$1.75mil (31/3/2015) Major shareholders: • Risco Energy Investments (54.7%) • Tower Energy (6.6%) • Mana
Slide 6: Lion Management
Lion Management Well rounded team, proven track records For personal use only § 35+ years experience in oil and gas § Exploration geologist, 30 years of international experience § Founder of Oilserv Australia Ltd, providing drilling, well testing including a strong SE Asian focus and production serv
Slide 7: 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 which is now § Petroleum geoscientist (BSc, MSc and PhD) a
Slide 8: Indonesian investment rationale update
Indonesian investment rationale update Continues to have strong, resilient economy with solid growth (5-6%) For personal use only • Currently worlds 16th largest economy with predictions to be 7th largest economy by 2030 • Population currently 250 mm, forecast to be 263 mm by 2020 • Present Joko Wid
Slide 9: Seram (Non-Bula) PSC Overview
Seram (Non-Bula) PSC Overview Appraisal and development success, cash flow positive at current prices (~US$40K pm net) For personal use only • Current Oseil Field production ~4175 bopd (~104 bopd net), 4.9 mmbbl 1P reserves (100%) Map of Seram (Non-Bula) PSC • Recent development success has increase
Slide 10: Milestone Lofin Discovery
Milestone Lofin Discovery 2 tcf gas / 18.3 mmbbl condensate 2C contingent resource*/Lion Share 50 bcf /0.5 mmbbl For personal use only • Appraisal of 2012 Lofin discovery, test of Lofin Structure Schematic Section hydrocarbon column extent in fractured Manusela Formation limestone • Reached total de
Slide 11: South Block A PSC Portfolio
South Block A PSC Portfolio (Lion equity share 35%) 100% prospective resource (unrisked): 191-1424 bcf gas, 9-69 mmbbl oil/cond (top 6 prospects) For personal use only • 2014 seismic delineated highly material portfolio • Oil Bubble size relative value – Amanah Timur Prospect: low risk, low cost oil
Slide 12: Amanah Timur Prospect
Amanah Timur Prospect Well defined anticline on proven oil trend with manageable well cost and good upside For personal use only • Pre-war field produced ~200,000 bbls from shallow Keutapang, • Unswept and recharged oil likely, deeper sands undrilled • Near term production potential, close to oil an
Slide 13: Jerneh Prospect
Jerneh Prospect Largest undrilled structure in onshore North Sumatra, world-class potential (64-760 bcf) For personal use only • 7.9 km2 4-way, up to 63 km2 sub thrust closure • Analogue with PASE (240 bcf) and Matang (up to 400bcf) fields • Primary objectives: Early Miocene Peutu Lst and Belumai ss
Slide 14: Aceh and North Sumatra under supplied gas markets
Aceh and North Sumatra under supplied gas markets, High growth potential, re-gassified LNG alternate provides strong gas price expectation For personal use only Existing Supply: • Block B and NSO, now Pertamina, in rapid decline and likely abandoned in a few years without further investment. • Arun
Slide 15: Lion Unconventional Update
Lion Unconventional Update Joint studies in prolific North & Central Sumatra basins completed, Lion has priority rights For personal use only North Sumatra - Bohorok (Lion 55%) Joint Study with Padjadjaran University in Bandung • Field trip obtained >300 surface cores, analysis positive with signifi
Slide 16: New Business Strategy
New Business Strategy Low oil price and stressed companies provide opportunities for astute operators For personal use only Guiding principles • Heartland positions in proven basins • Low risk conventional assets with near term production potential • Close proximity to infrastructure and robust mark
Slide 17: Lion Activity Schedule
Lion Activity Schedule Active, fully funded program through 2016 For personal use only Lion Activity and Key Event Timeline mid 2014-2016 2014 2015 2016 Lion Interests/Activities Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Corporate Manage Assets South Block A Seismic Acquisition Extension to PSC term Commitment
Slide 18: Strategy - adjusting course to conventional growth trajectory
Strategy - adjusting course to conventional growth trajectory Balancing cash, developing assets, maintaining options & seeking new opportunities For personal use only Challenges: • Funding in current oil industry environment • Declining cash balance (although buffered by Seram free cash flow) • Line
Slide 19: Thank you
For personal use only Thank you For more information please contact: Kim Morrison Chief Executive Officer kmorrison@lionenergy.com.au Office: +61 8 9211 1500 Mobile: +61 404 490 964 A New Approach to Asian Energy www.lionenergy.com.au May 2016 19