DISCLAIMER The information in this document is in summary form and should not be relied upon as a complete and accurate representation of any matters that a potential investor should consider in evaluating JK Tech Holdings Limited (the Company ). While management has taken every effort to ensure the accuracy of the material in the presentation, neither the Company nor its advisers has verified the accuracy or completeness of the information, or any statements and opinions contained in this presentation. This presentation is provided for information purposes only, and to the maximum extent permitted by law, the Company, its officers and management exclude and disclaim any liability in respect of the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission from, any information, statement oropinion contained in this presentation oranything done in reliance on the presentation. This presentation may contain forward looking statements. The words 'anticipate', 'believe', 'expect', 'project', 'forecast', 'estimate', 'likely', 'intend', 'should', 'could', 'may', 'target', 'plan and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Forward-looking statements are subject to risk factors associated with the Company s business, many of which are beyond the control of the Company. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements. You should not place undue reliance on forward-looking statements and neither the Company nor any of its directors, employees, servants, advisers or agents assume any obligation to update such information. In addition to its technology business the Company is involved in exploration and development and must continue to fund its exploration, feasibility and possibly development programs through its cash reserves, equity capital or debt. Therefore the viability of the Company is dependent upon the Company s access to further capital through debt, equity or otherwise. There can be no guarantee that the Company will be able to successfully raise such finance. This presentation should not be considered as an offer or invitation to subscribe or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation. You should not act and refrain from acting in reliance on this presentation material. Nothing contained in this presentation constitutes investment, legal, tax or other advice. This overview of the Company does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the Company s prospects. Before making an investment decision, you should conduct, with the assistance of your broker or other financial or professional adviser, your own investigation in light of your particular investment needs, objectives and financial circumstances and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation and making any investment decision.
WHO IS JK TECH Acquirer of E & P projects Leverage off relationships of our major shareholders Currently single energy asset Mustang Focus on development & producing assets 3
E & P TRANSFORMATION July 2014 Acquisition of Mustang August 2014 S$60,000,000 in new equity @ $0.40 September 2014 Commenced engineering studies Q4 2014 / Q1 2015 Drill 3 x Mustang wells May 2014 Changed to energy focus 4
COMPANY SNAPSHOT @ 29 September 2014 Capital Structure Share price $0.39 Shares outstanding 290,939,065 Market Capitalisation $113.0 million Available Cash 3 $21.0 million Debt Nil Enterprise Value $92.0 million Proven Reserves (1P) 1,2 10.8 MMBOE Proven + Probable Reserves (2P) 1,2 19.8 MMBOE 1 Net to 46.8% Working Interest 2 DeGolyer & MacNaughton Reserve report dated April 2012 3 Available for use on energy projects Options Major Shareholders Public 57.7% Ang Yew Jin Eugene 18.4% Total Options Outstanding 325,000,000 Ezion Holdings 260,000,000 SF Ventures 60,000,000 Company Directors 5,000,000 Exercise Price $0.09 Expiry May 2019 Ezion Holdings 14.4% Ang Ai Nyuet 5.0% SF Ventures 4.5% 5
JK - PROJECT CRITERIA Focus on Proven Reserves (1P) known reservoir characteristics Generate cash within 12-24 months from acquisition Hydrocarbon basins with existing core infrastructure Mitigate risk by forming investment partnerships within jurisdictions Convert major capex to opex through project partnering - returns Cash flow diversification multi projects / jurisdictions Non-Operate to reduce overheads Utilise reserve based lending (RBL) to maximise shareholder returns 6
INVESTMENT HIGHLIGHTS MUSTANG - ADVANCED DEVELOPMENT PROJECT Mustang # 1 well (Q2 2012) successfully targeted Kuparuk Sands Kuparuk Sands have produced over 2.9 billion BO on the North Slope 1 First oil in Q2 2016 Targeting 15,000 BOPD (100%) Material Working Interest 46.8% WI Cashflow impact ANS crude pricing ~5% premium to WTI 10.8 MMBO in Proven Reserves (1P) Independently certified 2 19.8 MMBO in Proven & Probable Reserves (2P) - Independently certified 2 1 Alaskan Oil and Gas Conservation Commission (AOGCC) 2 DeGolyer & MacNaughton reserve report dated April 2012 7
North Slope Leaseholds 1 Appaloosa Prospect Area Adjacent to Mustang and Kuparuk River Unit (CoP) 27,415 non-unitized acres Full 3D seismic coverage 60 MMBO resource in mapped field extensions and prospects Beechey Point Unit 10,757 acres plus 3,880 adjacent non-unitized BRPC drilled 3 wells and flow tested North Shore #1 at 2,092 bopd 26 MMBO resource in discovered & mapped pools Badami Unit Expansion 2,240 unitized net acres outside of current producing area East Mikkelsen Bay State 1 well discovered 25 Flaxman sand 16 MMBO net resource, needs further delineation Tofkat Unit Adjacent to Colville River Unit (CoP) - 9,147 acres Brooks Range Petroleum drilled 1 well with 2 sidetracks, discovered thin Kuparuk reservoir 40 MMBO of resource, needs further delineation CRU - (CoP) Oooguruk (Caelus) Beechey Point Unit Badami Unit Expansion Tofkat Unit Mustang KRU - CoP Prudhoe Bay (BP) Badami (Savant) 8 1 All resources Brook Range Petroleum Company estimates and are net to the 100% working interest
Southern Miluveach Unit - Mustang Area of Interest Mustang consists of 8,960 net developable acres with 27,000+ adjacent prospective acres An all-weather gravel road, production pad and a State of Alaska approved development plan is in place Kuparuk River Unit (ConocoPhillips) USD$81m has been invested in an all-weather road, development pad, seismic and appraisal drilling by prior owners and acquired by the WIO The Kuparuk River Unit, adjacent to the Mustang field, is the 2nd largest oil pool in North America and has produced 2.9 billion Bbls since 1982 1 In the last 35 years, 17 billion Bbls produced on Alaska s North Slope 1 The Kuparuk-2M drillpad adjacent to Mustang and in the same field and reservoir has produced 77 million Bbls since 1992 1 Mustang Kuparuk -2M 1 Source: Alaska Oil and Gas Conservation Commission (AOGCC) 9
Infrastructure All-Weather Road and Development Pad 4.3 miles all-weather road with access to the Mustang development pad All-weather development pad covers 19 acres & 250 metres from Alpine common carrier pipeline Infrastructure in place allows for year round operations Mustang field can be accomplished from the exisiting development pad The Mustang production facility will be located on the development pad Approximately USD$31m has been invested to complete the development pad and the all-weather road Since November 2013, the pad has generated approximately USD$3.9m of lease income from other North Slope operators utilizing the pad N Alpine pipeline 10
Drilling Plan Phase 1 delineation and testing Nabors Rig 16E; planned mobilization mid-late November, 2014 Mustang # 2 9,200 feet, 21 days, flow test Mustang # 3 12,678 feet, 32 days, flow test Mustang # 4 11,600 feet, 29 days Estimated cost $56m with contingency Planning working interest owners Phase 1 debt issue Phase 2 field drill out 16 wells including 10 horizontal producers and 6 vertical water injectors 475 days drilling Planning working interest owners Phase 2 debt issue Production Facility Plan Three phase central processing facility: Oil, gas, and water separation Water handling and gas compression modules Two tank farms Crude and diesel and chemicals Well tie-ins, pipe racks, headers and well test separator for production allocation Operations camp, warehouse control room & communications tower Planned milestones Long lead equipment ordered Q1 2015 North Slope install Q4 2015 First oil Q2 2016 Engineering and vendor selection underway The facility is constructed in moveable modules 11
MUSTANG OPERATIONS CENTRE ( MOC ) CONVERTS MAJOR CAPEX TO OPEX 15,000 BOPD CAPACITY YEAR ROUND CAMP 10MW POWER PLANT 12 PRODUCTION WELLS & 20 INJECTORS Total cost ~$225 million Alaskan Industrial Development & Export Authority ( AIDEA ) EDB Equivalent - to invest $50 million Remainder debt finance Operated by Brooks Range Petroleum Company ( BRPC ) Lease payments by working interest owners over 7 years from production 12
Gulf of Valdez Export Terminal 13
North Slope - Alaska US Geological Service (USGS) estimates that Alaska s North Slope has more oil than any other Arctic nation: o OIL: Est. 40 billion barrels of conventional oil (USGS & BOEMRE) o GAS: Est. over 200 trillion cubic feet of conventional natural gas (USGS) Alaska has world-class unconventional resources, including tens of billions of barrels of heavy oil, shale oil, and viscous oil, and hundreds of trillions of cubic feet of shale gas, tight gas, and gas hydrates Compared to most hydrocarbon basins, Alaska is relatively underexplored, with 500 exploration wells on the North Slope, compared to Wyoming s 19,000! 1 1 Alaskan Oil and Gas Conservation Commission (AOGCC) 14
North Slope is Elephant Country 1, 2 Alpine Project Colville River Unit Commenced production in 2006 ConocoPhillips / Anadarko 450 million BO produced Annual production ~ 21 million BO Kuparuk Project Kuparuk River Unit Commenced production in 1981 ConocoPhillips / BP / Chevron 2.5 billion BO produced Annual production ~ 36 million BO Prudhoe Bay Commenced production in 1977 BP / ConocoPhillips / Exxon 13.2 billion BO produced Annual production ~100 million BO 1 Alaskan Oil and Gas Conservation Commission (AOGCC) 2 Individual company s websites 15
16
Working Interest Owners (WIO) Working Interest Owners 35% working interest Privately owned by Thyssen Family Houston-based E & P company with operations on the US Gulf Coast Magnum Energy Partners 10% working interest New York based energy investment manager 6.1% working interest NYSE listed - large global rig contractor with operations on North Slope Mustang Operations Centre - Financing Providers Charisma Energy Services Singapore-based energy investment holding company Provides mechanical and electrical engineering services Created by State of Alaska Legislature in 1967 Equivalent of Singapore EDB AIDEA funded $20m to build existing all-weather road and production pad 17
Brooks Range Petroleum Company ( BRPC ) Project Operators BRPC - Operator of the Mustang field and the other leaseholds Formed in 2005 & based in Anchorage, Alaska Experienced management team, average 27 year s experience in Alaska with BP, ConocoPhillips, ARCO, Union Texas and Amoco Responsible for managing the planned development of Mustang including drilling and production facility construction BRPC is responsible for accounting and submisission of all tax rebate applications on behalf of the WIO and the Mustang production facility financing providers BPRC has in the past successfully applied for and received USD$90m of tax rebates from the State of Alaska Bart Armfield - Chief Executive Officer 30 years of hands-on field leadership Experience includes exploration and development drilling support, field development, processing, and fabrication and installation of facilities on Alaska North Slope ( NS ) Larry Vendl VIP Exploration 33 years industry experience 25 years in Alaska Geologist for BP, worked extensively throughout NS In-depth understanding of NS geology, exploration, new developments, field operations and drilling Mark Wiggin VP Engineering & Develop. 30 years of oil and gas experience in the Alaska oil industry Expertise includes facility planning, production, reservoir, new ventures exploration engineering, and project engineering and management. NS experience includes facility engineering, production &operations engineering, field start-up and commissioning lead for multiple new North Slope oilfields. 18
Alaska s Clear and Equitable Shares (ACES) Alaskan Government incentive program to stimulate exploration and development Stabilise and reverse TAPS production decline currently @ ~25% capacity 45% of drilling costs & 65% seismic costs rebated Cash rebate - Not repayable Not contingent on success Reduces risk Increases IRR 19
Mustang Field Development Plan Mustang # 1 Well successfully drilled Completed Q1 2012 Plan of Operations Approved March 2013 Plan of Development Approved November 2013 Mustang Road and Production Pad Completed May 2014 Mustang Ops Centre ( MOC ) Engineering Design Commenced Q3 2014 Drill 3 x Mustang Wells Commence Q4 2014 MOC Facility Construction Commence Q1 2015 Commissioning Commence Q4 2015 First Oil Q2 2016 20
OVERVIEW Mustang is a significant development project Located in a prolific oil basin targeting known reservoirs Existing core infrastructure in place Significant 1P & 2P Reserves Generate cash within 18 months No additional significant cash requirements Experienced Operator - BRPC Financially strong partners Thyssen Family AIDEA investment in MOC Material government cash rebates 21
CONTACT DEAN L GALLEGOS JK TECH HOLDINGS LIMITED CHIEF FINANCIAL OFFICER + 65 9108 2551 Dean.Gallegos@jkoilexp.com 22