Page 01 Sawn Lake Canada SAGD Demonstration Project Pan Orient Energy Corp. Corporate Presentation December 2014 L53 Thailand Production & Exploration Batu Gajah & East Jabung PSC s South Sumatra, Indonesia Exploration Citarum PSC West java, Indonesia Exploration Producing Exploration
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.
Summary Page 03 Financially strong with a large portfolio of high impact exploration prospects in Southeast Asia Stable, high net back production platform onshore Thailand with significant remaining exploration upside Highly leveraged to any exploration success with a strong balance sheet and only 56.8 million shares outstanding Portfolio recently de-risked through a series of partial sale and farmout transactions Post closing sale of 50% of subsidiary holding Thailand Concession L53 (~January 2015) and Indonesia East Jabung PSC farmout (~March 2015) working capital position estimated at approximately $80 million
SE Asia Asset Summary Page 04 THAILAND L53 (POE 50% & Operator after transaction) Pending sale of a 50% interest to close Jan 12/15 Phase #1 drilling program (1 exploration + 2 appraisal) to commence shortly after Closing INDONESIA East Jabung PSC (49% Non Op after farmout) Pending farmout of a 51% interest & operatorship to a subsidiary of Talisman Energy Upfront cash payment of CDN$9.2 million Carried for the first CDN$11.4 million of gross expenditures plus overhead towards the drilling of the Anggun prospect The approximately 100km2 Anggun prospect will be drilled between 2015 Q4 and 2016 Q2 Batu Gajah PSC (77% & Operator) Drilling of the Akatara/Selong oilfield extension planned for 2015 Q3 with or without farmout partner Citarum PSC (97% & Operator) 1 well planned in 2015 Q3 pending a successful farmout
Prospective Resources Contingent Resource Reserves Capital Allocation 2012-2013 Page 05 A Sold entire 60% WI in Concessions L44 & L33 Thailand for $158 million net proceeds (2012) $0.75/share dividend to POE shareholders A1 A L53 THAILAND L44/L33THAILAND A1 Redeployed $37.4 million capital to L53 to increase proven reserves 60% and conduct a large 3D seismic survey that defined the L53-A North prospects CAPITAL REDEPLOYED A2 Sawn Lake Canada A2 Redeployed $25 million capital by rights offering into Andora Energy to complete a one SAGD well pair demonstration project A4 A3 Batu Gajah PSC Indonesia A3 Redeployed $25 million capital to complete minimum work program commitment of 2D & 3D seismic & two wells in Batu Gajah PSC A5 East Jabung PSC Indonesia A4 Redeployed $5million capital to complete minimum work program commitment 2D seismic in East Jabung PSC Citarum PSC Indonesia A5 Redeployed $53million capital to complete minimum work program commitment of two wells in Citarum PSC MATURITY
Prospective Resources Contingent Resource Reserves Capital Allocation 2014-2015 Page 06 B C B1 Selling 50% of subsidiary holding Thailand Concession L53 for $48 million net (announced 2014) in 2015 Q1 retained 50% & Operatorship Farming out a 51% WI in Indonesia East Jabung PSC - receiving an upfront cash payment of $9.2 million as part consideration in 2015 Q1 Contingent capital may be required for appraisal drilling in the event of exploration success CAPITAL REDEPLOYED B3 B L53 THAILAND Sawn Lake Canada B2 Nominal contingent capital required to exercise a 20% WI option for a PSC in South Sumatra acquired by way of the East Jabung PSC farmout to Talisman B2 B1 C Batu Gajah PSC Indonesia East Jabung PSC Indonesia B3 Approximately $5.6 million will be spent to appraise the Selong field extension into the Batu Gajah PSC. Citarum PSC Indonesia New PSC Indonesia MATURITY
Success Case Relative Value Asset Portfolio Page 07 Seismic Drill Ready Prospects Drilling/Pilot Reserves Anggun Prospect East Jabung PSC (farming out 51%) Raka Prospect 2015/16 Work Program $29.5MM 2D/3D Seismic Cataka-1X Citarum PSC (pending farmout) Takar Prospect Selong Extension Batu Gajah PSC L53 Exploration Sawn Lake SAGD L53 Appraisal L53 Reserves Project Capture Sale
Concession L53 Thailand Page 08 Three fields discovered to date 1.5 million bbls 2P reserves @ December 31, 2013 with NPV(@10) CDN$58 million Two low risk reserve addition opportunities at L53-D East & 1 potential high impact exploration well at A North Central to be drilled commencing 2015 Q1 Selling 50% of subsidiary holding Concession L53 for net proceeds of CDN$46.5 million with Closing expected in January 2015 U-Thong Oilfield L53 A North Prospects Oil Kitchen B 2013 3D Oil Kitchen A L53-D East Field L53-A Field L53-G Field L53-A Production Site Prospects 2008 3D
Concession L53 Transaction Page 09 Selling 50% of subsidiary holding Concession L53 to Sea Oil Public Company Limited listed on the Stock Exchange of Thailand Gross consideration of CDN$48.3 million Net CDN$46.5 million after tax, finder s fee & working capital adjustment Requires Sea Oil shareholder approval at an EGM scheduled for December 17, 2014 USD$4 million break fee Closing scheduled Jan 12, 2015 About Sea Oil Public Company Limited Listed since 2013 Approximately USD$90 million market cap Focused on the offshore oil and gas service industry Majority shareholder is Nathalin Group About Nathalin Group Large private Thailand based conglomerate Leader in Thai crude oil & chemical tankers Leases and operates FPSO s Invested in pipelines, alternative energy & power plants E-01 Rig on L53-G1 Well Location
Concession L53A North Prospects Page 010 The L53A-North prospects are a group of structural closures (six) with a combined maximum areal extent of approximately 9.76 km 2 Full coverage by 3D seismic acquired in 2013 U Thong Field 4.5mm BBLS Cumulative production Located on trend and 4.5 km south of the 4.5 million barrel PTTEP operated U-Thong field Drilling of A North Central expected to commence 2015 Q1 upon Closing of the sale of 50% of subsidiary PTTEP Pan Orient L53 A North Prospects 2.0 km A North Central Well Pad Ready to Go
L53A-North Central Prospect Page 011 W A North Central A North East A North East 2 E Direct Hydrocarbon Indicators Stacked Multiple sands 4.5 km W E
Onshore South Sumatra, Indonesia Page 012 East Jabung PSC (POE 49% Non Operator after farmout) 2,948 km 2 (Gross) Batu Gajah PSC (POE 77% & Operator) 793 km 2 (Gross) North Jabung JSA (POE 20% Option/Non Operator) 4,106 km 2 (Gross) PetroChina Production Production dominated by Conoco Phillips, PetroChina, Talisman and Pertamina Significant existing gas infrastructure supplying Singapore, Java and Central Sumatra Pertamina Production Conoco/Talisman Production Pertamina/Talisman Production 2015 / 2016 Drilling planned in both Batu Gajah and East Jabung PSC s Gas Fields Oil Fields Gas Condensate Fields
East Jabung PSC Indonesia Page 013 East Jabung PSC (POE 49% Talisman 51% & Operator after farmout) 65%GOI/35% profit split on oil - best in Indonesia Anggun-1 prospect ~100km 2 in maximum closure POE carried for the first US$10million Anggun exploration well & first US$5million of any subsequent appraisal Drilling planned 2015/16
Batu Gajah PSC Indonesia Page 014 Batu Gajah PSC after last relinquishment Gas Fields Oil Fields Gas Condensate Fields Prospects 2D Seismic 3D Seismic Selong Extension Pan Orient 3D Seismic 2013 Wells Drilled (POE) Rafa Kemala Batu Gajah PSC (POE 77% Batu Gajah & Operator) PSC Gas Fields Large resource potential Oil Fields 6 Gas Condensate Fields Selong oil discovery Prospects in adjacent East Jabung PSC POE 100% prospects 4 drill ready acreage appears to extend into POE acreage based on 3D seismic data Drilling of Selong Extension planned for 2015 $50 million cost pool Sogo Utara Raka Takar
Selong-Akatara Extension Page 015 A Akatara-1 Proposed Well A A Akatara-1 Gas?? Selong-1 790 bopd Akatara-2 919 bopd Batu Gajah PSC Boundary L Gumai UTAF LTAF Lemang PSC Boundary SW Betara Field Proposed Well A Basement Lower Talang Akar Structure 3D Seismic
Citarum PSC Indonesia Page 016 256 Bcf 780 Bcf Cataka-1X POE: 97% and operator Seeking a farm-in partner 75/25 after tax profit split for oil (60/40 gas) $110 million cost pool Best pipeline infrastructure and domestic gas demand in all Indonesia Drilling of the potential high impact Cataka-1X well planned for 2015, subject to a farmout success Gas Field POE Land Prospects Leads Oil Field
Sawn Lake, Alberta, Canada Page 017 Sawn Lake Contingent Resources at December 31, 2013 (Pan Orient s 71.8%) Millions of barrels of Heavy Oil - SAGD High Best Low Sawn Lake 180 154 140 Andora Energy Corporation has interests in 88 sections of oil sand leases R24 T98 Sawn Lake R1 W5 5 th Meridian Pan Orient Energy Corp. owns 71.8% of Andora Koch Husky 154 million barrels of 2C contingent resources attributed to Pan Orient s 71.8% ownership of Andora (Andora has 214.4 million barrels) Demonstration project commenced in 2013; first stream injection in May 2014; bitumen production commenced September 2014 T79 Baytex Sh ell Penn West Red Earth
Sawn Lake Oil Sand Leases Page 018 Sawn Lake North 10% of 51 sections (non-operated) 100% of 9 sections 1.5 MMbbls Best Case contingent resources net to Andora for SAGD Sawn Lake Central 50% of 12 sections Designated Operator 138.7 MMbbls Best Case contingent resources net to Andora for SAGD Approved SAGD Demonstration Project underway at 7-30-91-12W5 Sawn Lake South 100% of 16 sections 74.1 MMbbls Best Case contingent resources net to Andora for SAGD Andora holds varying interests in 88 sections of oil sands leases. Pan Orient Energy Corp. owns 71.8% of Andora
Demonstration Project Phase 1 Page 019 Phase 1 First step in determining commercial viability of SAGD in this Bluesky formation reservoir Provide indication of productivity of reservoir & steam / oil ratio SAGD Production commenced September 2014 First SAGD pair initial production target of 345-370 barrels of bitumen per day expected to occur shortly after the steam chamber reaches the top of the reservoir in approximately March 2015 Sawn Lake Demonstration Project Facility at 7-30-91-12W5M
BOPD SOR SAGD Pair Performance Page 020 600 Sawn Lake Bluesky Fm vs Lower Grand Rapids Fm Analog Performance Comparison 14 500 Lower Grand Rapids SOR 12 400 Sawn Lake Blue Sky SOR Lower Grand Rapids Oil Production 10 8 300 Sawn Lake Blue Sky Oil Sales Period 1 -Sept 12 -Oct 11 2014 Period 2 -Oct 12 -Nov 11 2014 Period 3 -Nov 12 -Nov 24 2014 6 200 4 100 2 0 0 1 2 3 4 5 6 7 8 9 10 Month 0
Drilling Schedule 2015/16 Page 021 Well/Area 2 Appraisal Wells L53 Thailand L53A North Central Thailand L53 2 Appraisal +1 Exploration Thailand L53 Q1/2015 Q2/2015 Q3/2015 Q4/2015 Q1/2016 Contingent A North Central Appraisal Wells Contingent A North Central/East Appraisal Wells Q2/2016 Selong East-1 Batu Gajah PSC Indonesia Contingent Selong Offset Appraisal Well Anggun-1 East Jabung PSC Indonesia Cataka-1X Citarum PSC Indonesia Second SAGD Pair Sawn Lake Canada Range of timing of commencement of Drilling Firm Well Contingent Well Notes: 1. L53 Phase #1 exploration/appraisal drilling to commence end January upon Sea Oil sale Closing. 2. L53 Phase #2 drilling may incorporate additional appraisal drilling in the event of exploration success in either Phase #1 or Phase #2. Phase #2 will be contingent upon final partner approval. 3. Selong Offset well location currently awaiting Ministry of Forestry approval. There was a five week delay post Indonesia elections as the Forestry & Environment Ministries were merged. 4. Cataka-1X contingent upon successful farmout negotiation. 5. Anggun-1 timing impacted by the change of operator & corresponding change of Forestry approval for new operator. 6. Second Sawn Lake SAGD well pair contingent upon 1 st pair performance and final partner approval.
Contacts Page 022 Pan Orient Energy Corp Suite 1505, 505 3 rd St SW Calgary, Canada Telephone: +1 403 294-1770 Fax: +1 403 294-1780 www.panorient.ca