Annual & Special Meeting June 15, Pan Orient Energy Corp.

Transcription

1 Page 01 Annual & Special Meeting June 15, 2016

2 Cautionary Statement Page 02 This presentation contains forward looking statements which involve subjective judgment and analysis and are subject to significant uncertainties, risks and contingencies including those risk factors associated with the oil and gas industry, many of which are outside the control of and may be unknown to Pan Orient. No representation, warranty or assurance, express or implied, is given or made in relation to any forward looking statement. In particular, no representation, warranty or assumption, express or implied, is given in relation to any underlying assumption or that any forward looking statement will be achieved. Actual and future events may vary materially from the forward looking statements and the assumptions on which the forward looking statements were based. Given these uncertainties, readers are cautioned not to place undue reliance on such forward looking statements, and should rely on their own independent enquiries, investigations and advice regarding information contained in this presentation. Any reliance by a reader on the information contained in this presentation is wholly at the reader s own risk. Readers are cautioned that well test results are not necessarily indicative of long-term performance or of ultimate recovery. Pan Orient and its related bodies corporate and affiliates and their respective directors, partners, employees, agents and advisors disclaim any liability for any direct, indirect or consequential loss or damages suffered by a person or persons as a result of relying on any statement in, or omission from, this presentation. Subject to any continuing obligations under applicable law or any relevant listing rules of the TSX-V, Pan Orient disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statements in this presentation to reflect any change in expectations in relation to any forward looking statements or any such change in events, conditions or circumstances on which any such statements were based.

3 Corporate Summary Page 03 Financial Common Shares Outstanding Jun million Insider Holdings 7.0% Total Long-term Debt Enterprise nil $76.9 million Q1/16 Funds Flow used in operations (including share of Thailand) $2.1 million Q1/16 Return of Capital to Shareholders of $0.40/share $22.0 million March 31, 2016 Working Capital & Non-current Deposits $53.2 million ($0.97/share) Reserves 1 & Values PV 10 and Prospective Resources 2 (Excluding Sawn Lake SAGD) Thailand Concession L53 Proved + Probable ( 2P ) December 31, 2015 Tax Indonesia East Jabung PSC Unrisked Mean Prospective Resources 0.6 million barrels $13.1 million ($0.24/share) 123 million barrels recoverable Indonesia Batu Gajah PSC Akeh-1 discovery to be evaluated Notes: 1. Thailand oil reserves of Pan Orient Energy (Siam) Ltd. ( POS ) at December 31, 2015 evaluated by Sproule International Limited. Value shown here reflects POE s 50.01% ownership in POS. 2. Indonesia East Jabung Prospective Resources as at June 30, 2015 evaluated by Gaffney, Cline & Associates (Consultants) Pte. Ltd. from three reservoir horizons. Refer additional information in the presentation.

4 Asset Summary Page 04 Batu Gajah PSC Indonesia (POE 77% & Operator) Three existing hydrocarbon discoveries at Batu Gajah PSC in Indonesia Akeh-1 drilled & tested by POE in an average of 6.8MMcfg/d barrels condensate per day North Tuba Obi-1 drilled by POE in 2011 encountered 3m of net gas pay with possible underlying oil leg Manismata-1 (Takar prospect) drilled by Shell in 1988 encountered approximately 35 meters of gas pay in shallow ABF sands in addition to deeper gas pay in the LTAF zone East Jabung PSC Indonesia (POE 49% Repsol Operator) Carried for at least one key exploration well at East Jabung PSC in Indonesia in Q4/16: The best fiscal terms in Indonesia with a 65%/35% for oil and 60%/40% for natural gas (after tax & cost recovery) split in favor of the Government of Indonesia after POE recovers its costs Carried on a second well to cost cap of US$5 million if success in the first well Onshore with low drilling & development costs Very experienced operator in the region with nearby existing infrastructure (Talisman Repsol ) L53 Thailand (POE 50% & Operator) 235 BOPD of low cost oil production onshore Thailand that will be used to fund material exploration upside at the A North Central (East) Prospect, with drilling anticipated in Q4/16 Sawn Lake Canada (Andora Operator - owned 72.1% by POE) A SAGD bitumen pilot at Sawn Lake that performed at tier 1 SAGD production rates & ISOR metrics that was substantially above the third party engineering well performance estimate for the best case contingent resources. Note: Production results to date are not necessarily indicative of long-term performance or of ultimate recovery. The Sawn Lake demonstration project in Alberta and the Akeh prospect in Indonesia have not yet proven that it is commercially viable.

5 Focus Page 05 Continue to De-Risk Portfolio & Maintain Strong Balance Sheet Establish Production in Indonesia Seeking partner for Indonesia Batu Gajah PSC (with the Akeh discovery) 51% of Indonesia East Jabung PSC exploration well cost will be carried by partner up to a cap of US$10 million CDN $53.2 million estimated current working capital & non-current deposits March 31, 2016 Akeh appraisal Indonesia Batu Gajah PSC drilling Q4/2016 Add Material Value Through the Drill Bit Indonesia East Jabung PSC exploration drilling Q4/2016 Thailand Concession L53 exploration drilling Q3/16 Q1/17 with up to two exploration wells Define Sawn Lake Value Manage SE Asian Portfolio SAGD pilot completed & updated reservoir model & resource report utilizing these results underway Application for potential expansion to six wellpair /3200 BOPD development submitted April 29, 2016 Stable Asian M&A environment despite low oil prices The company seeks at all times to extract the maximum value from any asset at the most opportune time as market conditions allow

6 INDONESIA Page 06 Akeh-1 tested at an estimated 6.8MMcfg per day & 269 barrels of condensate per day ( BCPD )

7 East Jabung PSC, Indonesia Page 07 Gas Fields Sumatra Oil Fields Gas Condensate Fields Prospects Leads East Jabung Prospect East Jabung PSC (POE 49% & Non Operator) Large resource potential Repsol (Talisman) Operator 65% GOI /35% POE profit split on oil best in Indonesia 60% GOI /40% POE profit split on gas Anggun-1 prospect drilling Q4 2016

8 East Jabung Summary Page 08 LTAF Max: 188 kms2 BRF B Max 27 kms2 Reservoir Prospective Resources (MMbbls POE Net ) Low Best High Pmean GCos Gumai Max: 121 kms2 Intra ABF Gumai Batu Raja Total Unrisked BRF A Max: 86.5 kms2 NI compliant Prospective Resource estimates completed by GCA as at June (see also page 6 of Pan Orient s December 31, 2015 MD&A) No resources were estimated for the LTAF at the time of the GCA resource report as the target was poorly imaged at that time Basement Depth Structure Recent 2D reprocessing indicates a thick LTAF sand and shale sequence overlying basement with a maximum structural closure of 188 km2 in areal extent

9 East Jabung Geo-Section Page 09 A A EAST KETALING Field CANTIK-1 A CANTIK-1 ABF A Gumai BRF LTAF 10 km Source Kitchen Basement East Jabung PSC POE 49% WI Basement Depth Structure Cantik-1 is the first exploration drilling location selected Location and road construction is planned to commence in September with drilling planned to commence in December 2016 A combination of gas + liquids is possible at all target levels

10 Batu Gajah PSC, Indonesia Page 010 Batu Gajah PSC after last relinquishment Gas Fields Oil Fields Gas Condensate Fields Prospects 2D Seismic 3D Seismic Akeh-1 Pan Orient 3D Seismic 2013 Wells Drilled (POE) Rafa Kemala Batu Gajah PSC (POE 77% & Operator) East Jabung PSC POE 100% Batu Gajah PSC Gas Fields Three hydrocarbon discoveries: Akeh-1 (gas Oil Fields over oil) Gas Condensate Fields NTO-1 (gas over possible oil) Takar (gas) Prospects Four additional prospects 85% GOI / 15% POE profit split on oil after 100% cost recovery 70% GOI /30% POE profit split on gas after 100% cost recovery Sogo Utara NTO Raka Takar

11 Akeh Discovery - Batu Gajah PSC Page 011 Akeh Discovery: Akeh-1 tested an average of 6.8MMcfg/d BCPD from the LTAF A sand 790 bopd LTAF A Gas 2.2 km2 Adjacent to existing PetroChina operated production & recent oil, gas & condensate discovery (Selong-1) in adjacent Lemang PSC PSC expires January 2017, seeking a two year extension to prove the commerciality and approve the development of the Akeh discovery AKEH-1 LTAF A1 Oil 1.7 km2 LTAF A Oil 4.6 km2 Marmo Field 4MMbbls 1 2.2km2 North Betara Field 11MMbbls 1 3.2km2 Akeh-2 appraisal well planned for Q4/2016 LTAF A & A1 Sand Summary Notes: 1. Source Wood Mackenzie Currently seeking a partner Akeh LTAF A1 Gas Akeh LTAF A1 Oil Akeh LTAF A2 Oil Batu Gajah PSC Outline 1 Source: Wood Mackenzie Research

12 Proposed Akeh-2 Page 012 Akeh-2 will be drilled directionally from one of three cellars on the existing Akeh-1 well pad North Akeh-2 Surface Well Path South The well will be targeting gas + condensate in the UTAF & LTAF A and oil in the LTAF A1 UTAF Estimated cost of $7CDN million to drill and test LTAF A Drilling anticipated to commence in Q4/2016 Estimated oil/water contact LTAF A1

13 THAILAND Page 013

14 Average oil sale per day (BBL/day) L53 Production and OPEX Page 014 Average gross oil sales (POE 50% & Operator) per day (BBL/day) vs Operating cost per barrel ($USD/bbl) 1,000 Opex per bbl ($USD/bbl) 16.0 Opex costs exclude: Oil trucking. Government royalty BKK G&A Jan 2015 Feb 2015 Mar 2015 Apr 2015 May 2015 June 2015 OIL sale per day (BBL/day) Operating Cost (per BOE) $USD/BBL Jul 2015 Aug 2015 Sep 2015 Oct 2015 Nov 2015 Dec 2015 Jan 2016 Feb 2016 Mar 2016 Apr

15 Oil sale bbl/day Breakeven Point Chart Page 015 1,200 1,100 1,000 1,195 AVG gross oil sales (BOPD) Break event point We are here. Currently oil sale 470 BOPD Brent oil price USD $50/bbl Brent oil price $/bbl AVG oil sale (BOPD) Break event point in Apr 0 $15 $20 $25 $30 $35 $40 $45 $50 $55 $60 $65 $70 1, Note: Using latest POS price discount to Brent of ~24% as per Apr-16 oil sale report.

16 L53 Prospective Resources Page 016 Prospect Most likely closure (km 2 ) A1 ( ANC ) WEST_A1-A WEST_A WEST_A WEST_A6A 0.50 WEST_A SOUTH_B SOUTH_B SOUTH_B SOUTH_B SOUTH_B4A 2.79 A1_AAA (inclusive of 1.7 AA+BB) tested by ANC-E1 West A-A4 PTTE P West A5-A7 L53A PA New 3D A1_CC 0.31 A1_DD 0.86 A1_EE 0.63 A1_FF 0.62 L53D PA Prospects Prospects (drilled) 2016 Drilling Candidates (up to 2 of the 3 highlighted prospects) South B1-B4A L53G PA Oil window Dry Hole L53/48 5 km.

17 A North East Prospect Page 017 ANE (New Well) Max closure: 4.9km 2 ANC-1 encountered thick immature sands with oil shows at the basin margin. ANC-E1 is a larger closure in a more basinal position which is anticipated to encounter better quality reservoir & access to oil charge U-Thong Field 4.5MMbbls 1.5km2 Oil Migration Barrier to oil migration?? ANC-E1 PTTEP A A ANC-1 Dry Hole A POE ANC-E1 Exploration Well A ANC E Prospect 4.9km2 Max

18 Capital-Drilling Schedule 2016 Page 018 Well/Area Akeh-2 Appraisal Well Batu Gajah Indonesia East Jabung Exploration well A North East Exploration Well L53 Thailand 1 additional exploration Well L53 Thailand Q3/2016 Q4/2016 Q1/17 Q2/17 Q3/2017 Capital $7MMcdn 1 $0 2 $1.2MMcdn 3 $1.2MMcdn 4 Range of timing of commencement of drilling Firm Wells Range of timing of commencement of drilling Contingent Wells Firm 2016: $8.2MMcdn Contingent 2016: $1.2MMcdn Notes: 1. Akeh-2 appraisal well costs include testing of three zones and coring. POE is currently seeking a partner for Batu Gajah PSC 2. The cost of the first East Jabung PSC exploration well Cantik-1 will be borne entirely by POE s partner up to a cap of US$10 million. 3. Thailand Concession L53 A North East exploration planned for late 2016 with location construction to commence in July Location construction for a second Concession L53 exploration well is planned to commence in Q with drilling possible prior to year end 2016

19 Sawn Lake, Alberta, Canada Page 019 Sawn Lake Contingent Resources at December 31, 2014 (Pan Orient s 71.8%) Sawn Lake High Best Low Millions of barrels of Bitumen - SAGD NPV (10) before Tax CDN$ millions Andora Energy Corporation has interests in 88 sections of oil sand leases Pan Orient Energy Corp. owns 71.8% of Andora 154 million barrels of 2C contingent resources attributed to Pan Orient s 71.8% ownership of Andora (Andora has 214 million barrels) Demonstration project commenced with drilling in 2013, first stream injection in May 2014 and bitumen production September 2014 to February R24 T98 T79 Baytex Shell Sawn Lake Koch Penn West Husky Red Earth R1 W5 5 th Meridian

20 Andora s Oil Sands Leases Page 020 Sawn Lake North 10% of 51 sections (non-operated) 100% of 9 sections 1.5 MMbbls Best Case contingent resources net to Andora Dec Sawn Lake Central 50% of 12 sections Designated Operator MMbbls Best Case contingent resources net to Andora Dec SAGD Demonstration Project at W5 Sawn Lake South 100% of 16 sections 74.1 MMbbls Best Case contingent resources net to Andora Dec Andora holds varying interests in 88 sections of oil sands leases. Pan Orient Energy Corp. owns 71.8% of Andora

21 Sawn Lake SAGD Pilot Page 021

22 Sawn Lake Pilot Summary Page 022 Steady state bitumen production in January and February 2016 averaged of 615 barrels BOPD (307 BOPD net to Andora) with an average instantaneous steam-oil ratio ( ISOR ) of 2.1 from the one SAGD wellpair. Substantially exceeded expectations from the December 31, 2014 contingent resources report which assigned gross averages of: Low Case of 242 BOPD with an ISOR of 5.7; Best Case of 345 BOPD with an ISOR of 4: High Case of 449 BOPD with an ISOR of 3.1 Demonstrated the SAGD process works in the Blue Sky reservoir and provided key data for future well and facility design. Since production commenced in September 2014, the Western Canada Select reference price per barrel declined from $81.87 to $22.49 in February 2016; as a result the project suspended March 1, Note: Production results to date are not necessarily indicative of long-term performance or of ultimate recovery and the Sawn Lake demonstration project has not yet proven that it is commercially viable.

23 Sawn Lake Pilot Project Page 023

24 Average Wellpair Productivity (bbl/d) Sawn Lake Performance Page 024 Tier 1 Projects Sawn Lake Instantaneous Steam Oil Ratio (isor) Sources: Peters and Co. Limited and GeoScout, McDaniel and Associates (Current SOR Q4 2014)

25 Sawn Lake Next Steps Page 025 During the next 12 months Andora will move forward with steps which allow for potential future development at Sawn Lake including: Complete Sawn Lake reservoir modeling and an updated contingent resource report that incorporates the results of the demonstration project. Advance the proprietary technology for the Thermal System and Process for Producing Steam from Oilfield Produced Water (Canadian patent granted June 16, 2015). The Company believes that this technology could achieve significant benefits in SAGD field development. An application for a potential expansion to 3,200 BOPD submitted April 29, Reactivation of demonstration project facility and wellpair would be considered as part of a potential commercial expansion. The timing of an expansion will be dependent upon regulatory approval, completion of detailed engineering and a higher commodity price environment to support project economics and financing.

26 Contacts Page 026 Pan Orient Energy Corp Suite 1505, rd St SW Calgary, Canada Telephone: Fax: