Annual & Special Meeting June 29, Pan Orient Energy Corp.

Transcription

1 Page 01 Annual & Special Meeting June 29, 2015

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 readers 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 Profile Page 03 Financial Basic / Fully Diluted Common Shares Outstanding (TSX:POE) 6/29/ million / 60.8 million Insider Holdings 7.0% Total Long-term Debt Enterprise nil $83.1 million Q1/14 Funds Flow from Operation (excluding sale of 50% of Thailand L53) $0.4 million Q1/15 Working Capital & Non-current Deposits $85.0 million Subsequent Cash Payment Received (East Jabung Farmout) $ 9.4 million Corporate Reserves 2 & Contingent 3 Resource Values PV 10 Proved + Probable ( 2P ) (Thailand) After Tax 2C Contingent Resources (Canada) Before Tax $ 16 million $337 million Q1/15 Working Capital & Non-current Deposits + East Jabung Payment/POE share: $1.67 Notes: 1. Normal course issuer bid currently in place with 1,330,800 shares purchased up to June 29, 2015 at an average price of $1.51 per share 2. Thailand oil reserves at December 31, 2014 evaluated by Sproule International Limited 3. Pan Orient s 71.8% interest in Andora s Sawn Lake Canada Best Case ( 2C ) bitumen resources at Dec 31, 2014 evaluated by Sproule Unconventional Limited

4 A Simple Story. Page Currently trading near positive working capital & non current deposit value of approximately $94.4MM cdn 2. All Asian assets profitable in a sub $60USD Brent environment 3. Drilling Akeh-1 Indonesian exploration well (approx $5MMcdn) at Batu Gajah PSC in August 2015: Offsetting an existing gas, condensate and oil discovery in Batu Gajah PSC in August Batu Gajah has a $50MMusd cost recovery pool net to POE that would be recovered from 80% of the gross revenue until payout,upon first production Onshore, with low drilling & development costs & substantial additional prospects that can be drilled with cost recovery dollars upon first production 4. Carried for at least 1 high impact exploration well in East Jabung PSC Indonesia in Q2/16: The best fiscal terms in Indonesia with a 65%/35% after tax & cost recovery split in favor of the GOI for oil after POE recovers its costs There is a second carried well if success in the first well Onshore with low drilling & development costs Very experienced operator in the region with nearby existing infrastructure (Talisman) 5. Approx 300 BOPD of low cost oil production onshore Thailand that will be used to fund material exploration upside at the A North East Prospect, drilling Q4/15 Q1/16 6. A SAGD bitumen pilot currently performing above the third party engineering well performance estimate for the best case contingent resources: Steam chamber has yet to reach the cap rock whereupon higher, near peak rates is anticipated Andora Energy operator & 72% owned by POE has a monthly burn rate of approx $0.1MM while operating the pilot & approx $6.5MMcdn cash..we can wait.. if required

5 Relative Value A Simple Business Model Page 05 Seismic Drill Ready Discovery Appraisal Commerciality Production Core Business High Risk Modest Capital High Return ( Risk can be Mitigated Through Farm Outs) Low Risk High Capital Modest Return 100% Relative Value Line L53 L33/44 Sold % Relative Value Line Sawn Lake L44/33 onshore Thailand sold IN 2012 for $172MM $42.5 million return of capital to POE shareholders & the Remainder re-deployed to fulfill Indonesian minimum work program commitments and Thailand 3D seismic Set the stage for the current upcoming round of drilling. North Jabung JSA Raka Batu Gajah PSC follow-up potential Kemala Takar A North East Akeh Anggun L53 onshore Thailand sold 50% for $49 million cdn in 2015 & kept 50%: Resulted in a large net cash position to POE Can be deployed towards development/appraisal drilling in Indonesia with any exploration success or acquisitions in the event of lower oil prices CAPTURE EXPLORE APPRAISE SELL

6 A Very Good L53 Thailand Transaction Page 06 Sale of 50% of the shares in POES which holds a 100% interest in Concession L53, to Sea Oil Public Company listed on the Stock Exchange of Thailand Gross consideration of CDN$53.5MM Net CDN$48.9 million for L53 interests after deducting working capital of $3.2 million & transaction costs Closed Feb 2, 2015 Modest L53 cash flow will be utilized towards further exploration on the concession Proceeds to be redeployed to any possible future Indonesian development E-01 Rig on L53-G1 Well Location

7 With Another at East Jabung Page 07 East Jabung PSC (POE 49% Non Operator) 2,948 km 2 (Gross) North Jabung JSA Batu Gajah PSC (POE 77% Operator) 793 km 2 (Gross) North Jabung JSA (POE 20% Option/Non Operator) 4,106 km 2 (Gross) East Jabung PSC Core Region for POE A 51% participating interest & operatorship In East Jabung transferred to Talisman (Repsol) in exchange for: $8MMusd cash payment (received Q2/15) 100% of the first $10MMusd + overhead towards the drilling of the first well 100% of the first $5MMusd + overhead towards the drilling of the second well if the first well is successful POE granted a 20% option on the North Jabung Joint Study Area JSA in South Sumatra Conoco/Talisman Production Gas Fields Oil Fields Batu Gajah PSC Gas Condensate Fields Pertamina/Talisman Production

8 A Simple Plan Page 08 De-Risk Portfolio & Maintain Strong Balance Sheet Done CDN $94.5 million estimated current working capital & non-current deposits (2015 Q1 adjusted) 50% of L53 Thailand sold for US$42.5 million 51% of East Jabung PSC farmed-out for 1-2 well carry and US$8 million cash Establish Production in Indonesia Akeh-1 - Batu Gajah PSC, Indonesia drilling 08/2015 Add Material Value Through the Drill Bit Anggun-1 - East Jabung PSC, Indonesia drilling Q2/2016 A North East-1 in Thailand Concession L53 in drilling Q4/15-Q1/2016 Define Sawn Lake Value SAGD Pilot underway with excellent results to date & peak production anticipated in the next 6 months Add to SE Asian Portfolio 20% Back-in right to North Jabung JSA in Indonesia as part of the East Jabung farm-out

9 Capital-Drilling Schedule 2015/16 Page 09 Well/Area Akeh-1 Exploration Well Batu Gajah Indonesia 2 Akeh Appraisal wells Batu Gajah Indonesia A North East Exploration Well L53 Thailand 2 Exploration wells East Jabung Indonesia Q3/2015 Q4/2015 Q1/16 Q2/16 Q3/2016 Capital $5MMcdn 1 $8MMcdn 2 $1MMcdn 3 $3MMcdn 4 Range of timing of commencement of drilling Firm Wells Range of timing of commencement of drilling Contingent Wells Firm 15/16: $6MMcdn Contingent 15/16: $11MMcdn Notes: 1. Akeh-1 exploration well location construction currently underway, drilling anticipated to commence late August 2015 & take approximately 21 days to completion. Funding from working capital. 2. Two back to back appraisal wells anticipated in Akeh-1 success case, subject to GOI approval. Funding from working capital. 3. Thailand L53 A North East exploration planned for late early 2016 subject to partner approval & Provincial government approval (anticipated August 2015). Funding will come from L53 cash flow. 4. East Jabung 2 well exploration program timing subject to final partner/goi approval and selection of access route. First well is carried and in success case, second well is carried.

10 INDONESIA Page 010

11 Batu Gajah PSC Page 011 Batu Gajah PSC after last relinquishment Gas Fields Oil Fields Gas Condensate Fields Prospects 2D Seismic 3D Seismic Pan Orient 3D Seismic 2013 Wells Drilled (POE) Batu Gajah PSC Batu Gajah PSC (POE 77% & Operator) Gas Fields Oil Fields 6 prospect 4 drill ready Gas Condensate Fields 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 Akeh-1 Rafa Kemala East Jabung PSC POE 100% Sogo Utara Raka Takar

12 Akeh Prospect - Batu Gajah PSC Page 012 Akeh Prospect 919 bopd Location construction commenced June 15/ bopd Drilling to commence late Aug/15 Akeh-1 Location hydrocarbons possible at multiple reservoir levels Marmo Field 4MMbbls 1 2.2km2 Adjacent to existing PetroChina operated production & recent oil, gas & condensate discovery (Selong-1) in adjacent Lemang PSC Akeh Prospect ML: 2.7km2 North Betara Field 11MMbbls 1 3.2km2 $50MMusd cost recovery pool recoverable from 90% of the gross revenue in the event of established oil production LTAF Sand Summary Notes: 1. Source Wood Mackenzie 3D Seismic Coverage Akeh Most Likely LTAF Oil Field Batu Gajah PSC Outline Fault Selong-1 Well

13 East Jabung PSC Page 013 Gas Fields Oil Fields Gas Condensate Fields Prospects Leads 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 Q & third party resource report due July 2015 Anggun Prospect

14 Anggun Prospect Page 014 Air Benakat Closure A A A Air Benakat Sandstone targets East Ketaling Oil Field A Batu Raja Closure E Ketaling Field Ketaling Kitchen All the key elements typically found in large fields are present: Batu Raja Reef Target Large structural closure ~ km 2 maximum closure at the Batu Raja limestone reef level and similar maximum closure at the Air Benakat/Gumai sandstone level Directly adjacent to a proven, thick, mature source kitchen Dominant regional structural high in the basin since Batu Raja depositional time making the Anggun structure the focal point for the accumulation of hydrocarbons from the time of peak oil generation Source Kitchen 35 km

15 THAILAND Page 015

16 L53/48 Concession Page Operating cost $usd/bbl Daily OIL production (bbl/day) $25.00 $20.00 Cum Sales just under 1.2MMbbls $ $ $ $0.00 Low cost onshore operation: trucking $1.75usd/bbl + $15usd/bbl Opex + 5% GOT royalty Crude pricing approx 93% of Brent Material exploration upside remains at the A North East (ANE) prospect 2015 cash flow will be used to fund an ongoing work-over program and the drilling of the ANE-1 exploration well sometime between Q Q (estimated cost of ANE-1 ~$1.8mmusd) Increased activity levels anticipated with any exploration success or increased oil prices

17 A North East Prospect Page 017 ANC (Dry Hole) Max closure: 2.03km 2 ANE (New Well) Max closure: 4.9km 2 U-Thong Field 4.5MMbbls 1.5km2 ANC-1 encountered thick immature sands with oil shows at the basin margin. ANE-1 is a larger closure in a more basinal position which is anticipated to encounter better quality reservoir & access to oil charge Barrier to oil migration?? Edge of mature source rocks ANE-1 PTTEP A A ANC-1 Dry Hole A POE ANE-1 Exploration Well A ANE Prospect 4.9km2 Max

18 CANADA Page 018

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 first bitumen production September 2014 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 Sawn Lake Central 50% of 12 sections Designated Operator MMbbls Best Case contingent resources net to Andora Approved SAGD Demonstration Project underway at W5 Sawn Lake South 100% of 16 sections 74.1 MMbbls Best Case contingent resources net to Andora Andora holds varying interests in 88 sections of oil sands leases. Pan Orient Energy Corp owns 71.8% of Andora

21 Sawn Lake Pilot Project Page 021 Results to date of the first SAGD well pair indicate that the SAGD process works in the Bluesky formation reservoir. The well is still in its ramp-up phase and the steam chamber has not reached the top of the Bluesky reservoir. For the period June 1st to 22nd bitumen production averaged 391 BOPD with a Steam- Oil Ratio ( SOR ) of 4.4. May 2015 bitumen production averaged 388 BOPD with an SOR of 4.3. All production numbers are on a 100% basis. Production exceeding Best case estimate used by Sproule in the December 31, 2014 contingent resource evaluation of 345 BOPD with an SOR of 4.0. Sproule High case is 449 BOPD with an SOR of 3.1. Canadian patent approved for produced water boiler (PWB) technology capable of meeting regulatory water recycle requirements on a per well pair basis allowing for modular, scaled development Starting the process for next set of regulatory approvals for expansion.

22 Sawn Lake, Alberta, Canada Page 022 Post ESP Replacement Flush Production ESP Failure

23 PWB Technology Page 023 Patent Canadian patent issued ( ) for Produced Water Boiler (PWB) technology enabling steam generation from SAGD produced water meeting regulatory water recycle requirements on a per well pair scale enabling lower capital SAGD project expansions with mitigated capital requirements and risk. Background Economics of scale surrounding traditional SAGD water recycle technologies have generally required large capital investments to achieve adequate capital intensities. These large scale projects are inflexible once initiated and are susceptible to severe cost overruns Application Produced Water Boiler (PWB) technology allows for low capital intensities at a smaller scale (1000bopd+, $70MM+) Well pair scaled expansions allow for conversion of pilot facilities to commercial pods that meet regulatory requirements, enable modularization of facilities to reduce costs and optimise well pair placement

24 Contacts Page 024 Pan Orient Energy Corp Suite 1505, rd St SW Calgary, Canada Telephone: Fax: