Rawson Oil and Gas Limited Corporate Presentation December 2017
Important Information Disclaimer Certain statements contained in this presentation, including information as to the future financial or operating performance of Rawson Oil and Gas and its projects, are forward looking statements. Such forward looking statements: are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Rawson Oil and Gas Limited, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies; involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward looking statements; and may include, among other things, statements regarding targets, estimates and assumptions in respect of production and prices, operating costs and results, capital expenditures, reserves and resources and anticipated flow rates, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions. Rawson Oil and Gas disclaims any intent or obligation to update publicly any forward looking statements, whether as a result of new information, future events or results or otherwise. The words believe, expect, anticipate, indicate, contemplate, target, plan, intends, continue, budget, estimate, may, will, schedule, potential, opportunity and similar expressions identify forward looking statements. All forward looking statements made in this presentation are qualified by the foregoing cautionary statements. Investors are cautioned that forward looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward looking statements due to the inherent uncertainty therein. No representation or warranty is or will be made by any person (including Rawson Oil and Gas and its officers, directors, employees, advisers and agents) in relation to the accuracy or completeness of all or part of this document, or any constituent or associated presentation, information or material (collectively, the Information), or the accuracy, likelihood of achievement or reasonableness of any projections, prospects or returns contained in, or implied by, the Information or any part of it. The Information includes information derived from third party sources that has not necessarily been independently verified. Subject to any obligations under applicable laws, regulations or securities exchange listing rules, Rawson Oil and Gas disclaims any obligation or undertaking to release any updates or revisions to the Information to reflect any change in expectations or assumptions. Nothing contained in the Information constitutes investment, legal, tax or other advice. The Information does not take into account the investment objectives, financial situation or particular needs of any recipient. Before making an investment decision, each recipient of the Information should make its own assessment and take independent professional advice in relation to the Information and any action taken on the basis of the Information. All amounts are in Australian dollars (A$) unless otherwise stated. 2
Important Information Qualified Petroleum Reserves and Resource Evaluator Dr Wadsley received a Bsc (Hons), University Medal in Mathematics from the Australian National University in 1970, an MSc from the University of Warwick (UK) in 1972, and a PhD (Mathematics) from the University of Warwick (UK) in 1974. He has more than thirty-eight years experience in the petroleum Industry, starting as a well-site petroleum engineer with Shell International in 1975. He was previously the executive Chairman of Stochastic Simulation Limited, a Perth, Western Australia, based Oil and Gas Services Company and is now the Director of Exploration and Production Consultants (Australia) Pty Ltd. Dr Wadsley is a member of the Society of Petroleum Engineers, the European Association of Geoscientists and Engineers, and the Society for Industrial and Applied Mathematics. Reserves and Resources Methodology All volumes have been calculated probabilistically using estimated ranges for field area, gross pay, net to gross, shape factor, porosity, water saturation, gas and oil formation volume factor and estimates of hydrocarbon recovery factor. For this report, Dr Andrew Wadsley served as reserves evaluator on behalf of Rawson Oil and Gas; Dr Wadsley has no direct or other pecuniary interest in Rawson Oil and Gas. It is Dr Wadsley s considered opinion that these estimates of petroleum resources and reserves are reasonable and have been prepared in accordance with the requirements of the ASX for reporting petroleum reserves and prospective resources in accordance with the SPE-PRMS. Regarding Prospective Resources, estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons. 3
Corporate Overview Rawson Oil and Gas Limited is an Australian-listed company focused on building a high impact oil and gas portfolio in Papua New Guinea while progressing our drill-ready South Australian gas project. Rawson s PNG exploration is focused on highly prospective, underexplored regions of Papua New Guinea. We have a diverse exploration portfolio over a variety of petroleum trends that have different levels of risk and potential. Our Australian efforts focus on expanding a play type in the proven Otway Basin. CAPITAL STRUCTURE 12 MONTH TRADING ASX: RAW 52 Week High & Low A$0.062 / A$0.026 Recent Share Price Market Capitalization A$0.032 ~ A$3.2M Debt Cash at 30 June 2017 None ~ A$800,000 Shares on Issue 98,047,150 Stock Options Outstanding 13,300,000 Management and Director Ownership 8.27% Top 10 Shareholding 55.4% 4
Company Strategy Operate as a niche low-cost explorer in Australia & Papua New Guinea Secure early stage entry into high-potential growth conventional oil and gas exploration projects Create value using lean, regionally experienced team to de-risk projects above and below ground Extract value through strategic partnerships, creating project-specific or whole-of-company opportunities 5
Delivering on Strategy Re-structured Company Focus on fiscal discipline Small, cost-effective flat structure Board and Management experienced in PNG and Australia Utilise technology to lower overheads remote access Injection of capital through asset sale and local PNG investors Secured portfolio of high-impact, low-cost PNG exploration Three licences awarded/purchased Two applications pending Entered JV in South Australia and secured PACE award of $4.95M Drilling of new gas exploration well in proven Otway Basin before end-2018 Stage one de-risking multi-tcf gas prospect encouraging results Evidence of gas cap on seismic data Low cost field sampling campaign to further de-risk planned in 2018 6
Australia Domestic Gas Market the best way to address the supply shortage in the Southern States is to increase production of gas in the Southern States ² Declining domestic gas supplies potential electricity shortfalls across eastern States from 2019 Potential domestic gas shortfall 10 PJ/a to 54 PJ/a to 2024 Cost of gas production and reliance on contingent resources to increase State-wide blackout sees energy security prioritised by South Aust Govt with revised State Energy Plan Aim to increase in-state gas supply for in-state electricity generation ¹Gas Statement of Opportunities for Eastern and South-Eastern Australia, AEMO, March 2017 Eastern and south-eastern Australia domestic gas production (excl LNG), 2017-2036¹ ²ACCC Gas Inquiry 2017-2020 Interim Report, December 2017 7
PEL 154 & PEL 155 Otway Basin Domestic gas supply shortfall driving the value in the Otway Basin, SA PEL 155 is close to infrastructure multiple gas sales options quick to develop Rawson-Vintage Energy JV (50:50) in PEL 155 Vintage experienced, successful SA explorers PACE Gas Grant Program award of A$4.95M for new gas exploration well in PEL 155 JV planning to drill 32 Bcf¹ Nangwarry prospect end of 2018 proven top Pretty Hill reservoir Analagous to Katnook, Ladbroke Grove, Haselgrove Beach s Haselgrove-3 ST1 good gas shows in same target formation testing underway² PEL 154 decision on forward plan to be made as licence comes out of suspension in early 2018 ¹Unrisked best estimate recoverable gas ²Beach Energy November 2017 Drilling Report 8
Papua New Guinea PNG is an attractive global-scale resource investment destination Exposure to persistent level of commercial and operational activity despite commodity prices Ability for junior explorers to secure low-cost access to prospective acreage Rawson Directors and management PNG-experienced Multiple commercial options for realising value in exploration assets P nyang 3 Tcf Stanley 0.5 Tcf Ketu/Elevala/Tingu 1.4 Tcf Kimu 0.7 Tcf Juha 2.7 Tcf Hides 6.7 Tcf Angore 1.2 Tcf Moran 44 Mmbbl Agogo 75 Mmbbl Kutubu 227 Mmbbl Elk/Antelope 9 Tcf Significant undiscovered potential resource volume in PNG Pandora 1 Tcf PPL 560 Source: Oil Search, Horizon Oil, PNG Dept of Petroleum & Energy 9
Where Next in PNG? Rawson sees the North Coast as an emerging exploration region of PNG Up until now E&P focused on fold-thrust belt and foreland areas and shallow water Gulf of Papua geared for export out of Kumul terminal or Port Moresby Now we are starting to see major interest in deepwater Gulf of Papua and multi-client seismic activity in the North Coast region of PNG Coupled with growing viability of mid- and small-scale development options in PNG eg. Domestic gas to power¹ or small FLNG North Coast is logical step-out region Rawson PNG portfolio ideally situated to capitalise on emerging North Coast interest multiple play types and risk profiles ¹LNG Opportunities An Oil Search Perspective. PNG Chamber of Mines and Petroleum Mining and Petroleum Investment Conference Presentation, 28 Nov 2017 10
Current Projects Papua New Guinea PPL 549, PPL 391 & APPL 594* North New Guinea Basin Rawson Interest 60% Onshore Mapped oil seeps, proven source, potential carbonate reservoirs P nyang Hides/Juha Elevala APPL 550* Papuan Basin Rawson Interest 60% Western Province Foreland Proven gas/condensate fairway, excellent discovery rates, commercialisation options developing Elk/Antelope PPL 560 PPL 560 Cape Vogel Basin Rawson Interest 60% Large mapped closures, defined on seismic, tied existing wells, shallow water, multiple development options *Denotes Application for Petroleum Prospecting Licence
PPL 560 Cape Vogel Basin Multi-TCF structure with a DHI indicating a gas cap in the emerging Cape Vogel Basin Seismic data suggests gas cap present over Buna structure Low cost field sampling campaign to de-risk reservoir and source petroleum system elements in 2018 Shallow water jack-up drill rig lowest cost drilling option in PNG Scalable development options dependant on volumes Next steps: Move to a data room and farm out in 2018 Acquire infill 2D seismic in 2019 to determine well location Collaborate with other shallow water Operators to secure jack-up rig for 2020 12
PPL s 391, 549 & APPL 594 Aitape Basin PPL 391 Matapau oil accumulation ignored for the last 50 years offers short transition potential into production Close to coast good access for light weight drilling & production equipment Good quality API oil - lower than expected biodegradation indicating ongoing charge to reservoir Executed decision to top file PPL 391 new licence to give 6-year term expect award early 2018 Proposing shallow (400m) exploration hole to test reservoir for circa $250,000 USD PPL 549 Mapped potential carbonate leads, analogous to the Salawati Basin Carbonates are the most prolific oil reservoir in SE Asia APPL 594 Application under review 13
APPL 550 Western Province PNG s NOC, Kumul, is advancing a Western Province gas pipeline to aggregate the numerous discoveries Horizon and Repsol are developing an alternative Western LNG project Western forelands approx 2.0 2.5 Tcf 2C resource P nyang approx 3.5 Tcf 2C resource APPL 550 well positioned in either scenario to commercialise High exploration drilling success rates for gascondensates in Toro and Elevala Sandstone 14
Forward Strategy 0 12 months 12-24 months 24+ months PNG Progress PPL 560 work program field work to support data reprocessing, data room for farm out Review balance of exploration portfolio against major infrastructure developments Award of PPL 550 Progress risk sharing options to test Matapau oil with new well Conclude PPL 560 farm out, comittment on further exploration options Drill slim-hole in PPL 391 to test Matapau oil Initial PPL 550 exploration Continue exploration programs on drill or drop basis SA, Otway Basin JV to drilll new gas well in PEL 155 Decision on future of PEL 154 Post-discovery appraisal Development plan utilise existing facilities or build new? Gas sales solutions Development funding Move to production of gas in PEL 155 by Dec 2020 15
Summary Rawson has a high-potential PNG portfolio and is moving to drill in the Otway Delivering on the strategy of securing high-potential low-entry-cost exploration propositions in strategic areas of interest Delivering upside exploration value with cost-effective de-risking and utilising strategic partnerships to mature projects Focus remains on expenditure that adds value Expect drilling of new gas exploration well in Otway Basin in 2018 PACE Gas Grant Program award of $4.95M in JV with Vintage Energy On track to further de-risk Buna structure, PNG in 2018 one of the cheapest multi-tcf projects to test in PNG 16
Appendix: Management Team Hamish White, General Manager Hamish is a geophysicist with 13 years international petroleum exploration experience. He has been involved in geophysical acquisition, project management, exploration strategy development, bid round participation, regulatory issues, geological interpretation, and asset reviews and valuations. Prior to joining Rawson, Hamish worked for the New Zealand government providing advice on resource delineation and data acquisition. He has previously worked at CGG and Veritas as Party Chief and QC Manager in the Middle East, Kazakhstan and the United States. Gerard Manggal, PNG Country Manager Gerard is geologist with over 20 years experience in PNG based exploration and production, he was a petroleum geologist with the PNG Department of Petroleum and Energy for 7 years, prior to joining MRDC as Team Leader exploration and development, a post he held for 6 years. Until 2014 Gerard was PNG Technical Manager for Eaglewood Energy Inc., based in Port Moresby. Gerard was responsible for managing all in country aspects of the exploration programme as well as all technical dialogue with the regulator. Gerard has an extensive network in PNG. Sarah Potter, Chief Financial Officer & Company Secretary Sarah has over 20 years experience in corporate and financial roles, and holds professional qualifications with distinction in Business Management, Accounting and Real Estate. She has previously held the role of Company Secretary as part of a private managed investment fund, along with many private company appointments. 17
Appendix: Board of Directors Allister Richardson, Executive Chairman Allister is a geoscientist with over 18 years of SE Asian experience, including a 10 year association with PNG. Previously a Team Lead for Oil Search where he was responsible for managing seismic operations and a four well drilling programme. More recently has advised a number of smaller companies operating in PNG and has assisted them in completing very successful commercial transactions. Richard Ash, Non Executive Director Richard is a chartered accountant with more than 25 years of experience in funds management and finance in Australia and Asia. Richard is a Director of AAP Capital based in Sydney he has also held senior management roles with Nomura Australia, Westpac, Macquarie Bank and KPMG. Michael McGowan, Non Executive Director Michael is an engineer with 30 years of upstream international oil and gas experience with British Petroleum, Santos Ltd. and Oil Search Limited. Michael has extensive experience in PNG dating back to 1992 with BP. Michael co-founded Eaglewood Energy Inc., a TSX-V listed PNG-focused exploration company in 2007. He was company President & Chief Operating Officer until July 2014 when the company was sold to Transform Exploration for ~AUD $40MM. 18
Contact Hamish White Rawson Oil and Gas Limited GPO Box 3374 Sydney, NSW 2001 Phone: +61 2 9095 4226 Email: hamish@rawsonoilandgas.com www.rawsonoilandgas.com ASX: RAW