Lion Energy Limited · ASX:LIO
Lion Energy — Investor Presentation (September 2018)
21 slides from Lion Energy's investor presentation, Sep 10, 2018
Slide 1: Lion Energy Ltd (LIO.ASX)
For personal use only Lion Energy Ltd Provides leverage to the new (LIO.ASX) Indonesian tax and royalty PSC regime on frontier terms LION PSC tenure de-risked, re-capitalized, ENERGY repositioned, ready for growth Provides Provides exposure to the exposure to the large Lofin Gas proven but discovery
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: Overview of Lion Energy
Overview of Lion Energy ASX listed, well connected, Seram focused E&P company For personal use only • Focused on Seram Island, Indonesia • Cash of US$1.8m, Revenue US$1m in 2017, G&A US$1m • Exposed to the 2TCF Lofin Gas discovery and producing • Exited South Block A PSC in Aceh in return for an ORR
Slide 4: Overview of Lion Energy: Seram Island, East Indonesia
Overview of Lion Energy Seram Island, East Indonesia For personal use only Area Gross Reserves / PSC Signed Term Status Operator Lio W.I. (km2) Resource Old PSC expires 30 Oct 2019. 2,000 bopd Seram New signed 20 Years from production Lofin 2P Oil > 3.5MMbo 2C 31 May, 2018 & 1,353 Citic 2.5% (Non Bu
Slide 5: For personal use only
For personal use only The first mover in the Indonesia’s new energy landscape www.lionenergy.com.au September 2018 5
Slide 6: At a glance
At a glance For personal use only Provides exposure to Indonesia’s largest gas discovery since the 1990’s, “Lofin” 1. Strategy streamlined: singular focus on 1. Track record for delivery and runs on the Seram Island, Indonesia that contains the board since Feb 2018 Lofin Gas discovery, containing 2T
Slide 7: 1. Strategy: Seram Island Focus
1. Strategy Seram Island Focus For personal use only Lion now focuses on Seram Island, East Indonesia and Lion has the largest onshore land position • The Seram Island hydrocarbon basin is rare, being proven, but un-creamed • The Seram Non Bula PSC has existing oil and gas infrastructure within our
Slide 8: Why focus on the Seram Basin?
Why focus on the Seram Basin? Top down, still some 800 mmboe’s of potential For personal use only After a bunch of small discoveries and one big one, the Seram Basin is on the verge of delivering more big discoveries Lofin Lion has a foothold on a 2TCF discovery and 800m boe’s of top down net potent
Slide 9: Proven Basin, with immature plays & high prospectivity
Proven Basin, with immature plays & high prospectivity Bottom up analysis: immature plays & 700m boe’s of leads For personal use only • Seram Island is a proven oil and gas province with producing field and multiple oil and gas seeps. • Producing Bula (~20 mmbbl) and Oseil (17 mmbbl to date) oil fie
Slide 10: Overview of Seram (Non Bula) PSC
Overview of Seram (Non Bula) PSC Oseil oil production For personal use only Current Participating Interests: Oseil Oil Production Performance Field Facility Main Production Facility & Export Terminal Oseil Area Production • Current Production ~1,900 bopd, 89% WC,1.4 MMscfd • Cumulative Production to
Slide 11: Seram Basin: two key fields extend into Lion's East Seram PSC
Seram Basin: two key fields extend into Lion’s 100% owned East Seram PSC About 7km2 of Lofin sits in East Seram, the Bula field extends into East Seram For personal use only Offshore Bula Field Extension Seram (Non Bula) PSC East Seram PSC ~ 7 Km2 The first mover in the Indonesia’s new energy landsc
Slide 12: Lofin field – A major discovery
Lofin field – A major discovery Seismic shows ~7 km2 of Lofin field extends into the East Seram PSC, unitisation potential For personal use only • 2015 Lofin-2 confirmed 1300m gas column, flowed gas at 17.8 MMscfd (Lofin-1 flowed gas ~15 MMscfd) • Contingent Resources (2C): 2.02 TCF gas/ 18.3 mmbbl
Slide 13: Seram basin dominated by NW-SE trending thrusted anticlines
Seram basin dominated by NW-SE trending thrusted anticlines These have surface and gravity expression and are seismically imaged For personal use only East Seram PSC Lofin NW Lead SNB PSC The first mover in the Indonesia’s new energy landscape www.lionenergy.com.au September 2018 13
Slide 14: 2. New fiscal regime
2. New fiscal regime A well thought out tax and royalty regime East Seram Gross Split PSC Structure For personal use only Contractor Share Oil Gas Basic Split 45.00% 48.00% Defined in PSC ` Variable Split +10-25% Prescriptive, dependent upon cost location etc Progressive Split +10-20% Prescriptive b
Slide 15: New fiscal regime: contractor share examples
New fiscal regime A well thought out tax and royalty regime For personal use only SNBB Example Contractor Share SNBB Example Contractor Share Oseil Oil Terms defined in GSPSC Likely Lofin Gas Field Terms Basic Split 45.00% Basic Split 48.00% Variable Split 10.50% Variable Split 11.00% - C02 Content
Slide 16: 3. Indonesian experienced board and management team
3. Indonesian experienced board and management team For personal use only Tom Soulsby, Executive Chairman Non Executive Director, technical consultant • CEO and founder of Risco Energy Investments with 28 years’ • Geologist by background with 40 years of E&P industry experience of the oil and gas an
Slide 17: New executive team in place February 2018
New executive team in place February 2018 Strategy reset with strong delivery ethos For personal use only Lion reset its strategy in February 2018 • We set about • Exiting unconventional joint study positions – not done yet but low cost hold positions, and Lion can walk away • Signing the new Seram
Slide 18: Reserves and resources
Reserves and resources Net 2C gas 50BCF, net 2C oil 477,000 barrels For personal use only New contracts have an immediate derisking effect on reserves and resources The first mover in the Indonesia’s new energy landscape www.lionenergy.com.au September 2018 18
Slide 19: 4. Conclusion
4. Conclusion Seram Island Focus For personal use only Since taking over Chairmanship, I have successfully repositioned Lion into a Seram focused E&P company § Oseil oil production and ongoing development § Lofin gas field appraisal and ongoing Well placed to ride growth commercialisation – 2TCF pla
Slide 20: Lion Activities
Lion Activities Contracts secured, activity picking up at pace For personal use only Activities focus on East Seram and Oseil Oil and Lofin Gas The first mover in the Indonesia’s new energy landscape www.lionenergy.com.au September 2018 20
Slide 21: 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: +628121065956 Singapore: +65 97103104 The first mover in the Indonesia’s new energy landscape www.lionen