October 2013panorient.ca/images/stories/file/presentation.pdf · Gas Pipeline Oil Pipeline 2D...
Transcript of October 2013panorient.ca/images/stories/file/presentation.pdf · Gas Pipeline Oil Pipeline 2D...
Page 01
October 2013
Page 02
Cautionary Statement
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.
Page 03
Capital Structure
Shares Outstanding 56.7 million
Shares Fully Diluted 62.0 million
Working Capital
(1 Jul 2013)
$54 million CDN
Debt nil
Market Capitalization $117million CDN
Current Share Price $2.07
Corporate Snapshot
3
Oil Reserves-Thailand – Barrels Dec 31/12 (NPV@10% after tax)
Proven 0.40 million ($18 million)
Proven + Probable 1.1million ($42 million)
Production (September) 1,014 BOPD + 151 bopd
shut-in
Contingent Resources Heavy Oil – Canada – Barrels Dec 31/12
1C 140 million
2C 154 million
Production Planned for early 2014 from
pilot project
Share price performance over last 12 months
Page 04
Introduction
• History of value creation onshore Thailand:
– Concessions L44 & L33 purchased October
2007 for $7.5 million and sold June 2012 for
$172 million
– September 2012 Return of capital to POE
shareholders of $0.75/share
• Concession L53 & L45 - Success with drill bit:
– Concession L53 signed in 2007 for a 3 year
work program commitment of $1.7 million
– 1 developed oil discovery at L53A and 2
undeveloped that were made in 2013 at L53D
East (shallow) & L53-G
– September production of ~1,014 BOPD with
an additional 150 bopd shut-in
– Significant remaining exploration upside
• Large, high impact, high quality Indonesia
exploration portfolio
• End Q2/13 working capital & deposits of $54
million
L53
East Jabung
Batu Gajah
South CPP
Exploration
Exploration & Production
L45
Page 05
SE Asian Assets
L53: 100% POE Operated 1,014 BOPD
Batu Gajah PSC: 77% POE Operated
Status: 400 km2 of 3D seismic just completed
Currently seeking a 40% partner
East Jabung PSC: 100% POE Operated
Status: 2D seismic underway, currently
seeking a 50% partner
South CPP PSC: 77% POE Operated
Status: Relinquished pending
Citarum PSC: 97% POE Operated
Status: Currently seeking a 40% partner
Exploration
Exploration & Production
2013 Remaining Work Program
Thailand
- 4 workovers ($2MM)
Indonesia
- 2D seismic East Jabung ($5MM)
Canada
- SAGD Pilot ($2MM)
L45: POE Farmed-in to earn up to 60%
with seismic program and two wells
Page 06
L53 Thailand
• 3 fields discovered
• L45 concession farm-in 2012
• 1MM bbls 2P reserves December
31, 2012 in L53
• 3 new pool oil discoveries at L53-D
East (shallow) & 1 new oil field
discovery at L53-G since the Dec
31, 2012 reserves assessment
• 260 square kms of new 3D seismic
finished acquisition June 2013
• 5 new exploration location EIA’S
approved on September 27/13
New 3D
Old 3D
Prospects
L53-A Field
L53-G Field
L53-D East Field
L53 L45
Oil Kitchen A
Oil Kitchen B
Mature Source
Kitchen
A North Prospect
A Central Prospect
Page 07
L53 Block Production chart
0
500
1000
1500
2000
2500
Dec
-09
Jan-1
0
Feb
-10
Mar
-10
Ap
r-1
0
May
-10
Jun-1
0
Jul-
10
Aug-1
0
Sep
-10
Oct
-10
No
v-1
0
Dec
-10
Jan-1
1
Feb
-11
Mar
-11
Ap
r-1
1
May
-11
Jun-1
1
Jul-
11
Aug-1
1
Sep
-11
Oct
-11
No
v-1
1
Dec
-11
Jan-1
2
Feb
-12
Mar
-12
Ap
r-1
2
May
-12
Jun-1
2
Jul-
12
Aug-1
2
Sep
-12
Oct
-12
No
v-1
2
Dec
-12
Jan-1
3
Feb
-13
Mar
-13
Ap
r-1
3
May
-13
Jun-1
3
Jul-
13
Aug-1
3
Sep
-13
BO
PD
Month
Crude Oil Production Chart Field Plot 2009 Onwards
All Wells
Reserves as estimated by Sproule at year end 2012. Excludes
Discoveries made at L53-G and L53-D East in 2013 that will be assessed at
Year end 2013
Page 08
2013 Thailand Cash Flow Metrics
500 BOPD 1,000 BOPD 1,500 BOPD 2,000 BOPD 2,500 BOPD
US$70 8 17 27 37 44
US$80 9 20 32 40 47
US$90 11 24 35 43 51
US$100 12 27 38 47 55
-
10
20
30
40
50
60
Pan Orient Estimated Annualized Concession L53 2013 Cash Flow (Cdn$ millions) Based on US$ Brent & Oil Sales per Day
Page 09
L53-D East Shallow
• 4 fault compartments have been
proven oil bearing at the shallow
sand level comprising approx 1.41
km2 in maximum areal extent with
10-40 meters of net oil pay
• 4 fault compartments remain un
drilled comprising maximum
structural closures of 1.28 km2
• Heavy ~14 degree API oil at depth of
approximately 450-550 meters which
creates certain operational challenges
currently being addressed
0.44 km2
0.44km2
0.54 km2
0.28 km2
0.40 km2
0.16 km2
0.43 km2
Proven: 1.41 km2
Undrilled: 1.28km2
L53-DC3
L53-DCEXT
L53-DC4ST1
A1 Sand Structure
L53-DC1
Page 010
A
A’
A A’
A Central Prospect
• Large ~15km2 in maximum areal extent, dominant regional high located
between the Kamphaeng Saen and Suphanburi source kitchens
• Clearly imaged on the 3D acquired in 2013
• Amplitude supported
• 3 surface locations with 4 wells each covering the structural closure
received EIA (environmental) approval on September 27/13
• Drilling planned for end 2013 depending on rig availability
Kamphaeng Saen
Kitchen
Suphanburi
Kitchen
A Central
DHI’s
DHI’s
40 km
5.4 km
Page 011
A North Prospect
PTTEP
Pan Orient
L53 A North
Prospect
U Thong Field 4.5mm BBLS
Cumulative production
DHI’s
A North Prospect
A’
A’
A
A
Page 012
B
A B
A
A North
2.25km2
1.13km2
0.88 km2
DHI’s
A North Prospect
PTTEP
Pan Orient
L53
Page 013
256 Bcf
750 Bcf
CATAKA -1
Citarum PSC Gas Fields Oil Fields Prospects Leads Gas
Pipeline Oil
Pipeline 2D Seismic
LODAYA -1
CITARUM OPERATIONS
JATAYU -1
Citarum PSC West Java
• Citarum PSC West Java (POE 97% & Operator)
• Large resource potential
• Currently seeking 40% WI partner
• Strongest domestic gas market in Indonesia
• Nearby infrastructure
• 1 dry hole, 1 sub commercial gas discovery and 2 wells
targeting the largest structural closures failed to reach their
objectives due to drilling difficulties
• Drilling planned post farmout
Jakarta
Page 014
Batu Gajah PSC
Gas Fields
Oil Fields
Gas Condensate Fields
Prospects
Pan Orient 3D Seismic 2013
Wells Drilled (POE)
East Jabung PSC
POE 100%
Akitara East
Rafa
Kemala
Raka
Takar
Sogo Utara
• Batu Gajah PSC South Sumatra (POE 77% &
Operator)
• Large resource potential– 9 prospects
• Expiry Jan 2017
• Seeking 40% WI partner
• 85 GOI/15 POE profit split on oil
• Drilling planned post farmout
Batu Gajah PSC Sumatra
Page 015
Akitara Discovery Area
• Ramba Energy the operator of the
Lemang PSC directly adjacent to the
POE operated Batu Gajah PSC recently
announced the third successful well in
to the Akitara structural closure
(Akitara-2)
• While POE has no access to any
information regarding the three wells
drilled by Ramba other than through
their press releases, we do have the
well coordinates provided through
various scout organizations and 2D
seismic data coverage over the area
• Akitara-1 was drilled approximately 175
meters from the concession boundary
and Selong-1 was drilled approximately
500 meters from the concession
boundary. The deviated Akitara-2 well
had a location at total depth
approximately 3 km from the
concession boundary
• It appears that at any given likely
structural spill point, approx 15-20% of
the structural closure on Ramba
acreage exists on POE acreage
including a large portion of the crest of
the structural closure. Indonesian
regulations state “shared” discoveries
must be unitized
1.5 KM
Time Structure Upper Talang Akar
Interpreted Maximum
17.4 km2
Interpreted Most Likely
9.6 km2
Interpreted Minimum
5.1 km2
Interpreted Minimum
1.7 km2
Interpreted Minimum
2.5 km2
Interpreted Minimum
3.2 km2
Akitara-2 TD location
Selong-1
Akitara-1
POE RAMBA PETROCHINA
Page 016 EAST JABUNG OPERATIONS
East Jabung PSC
Gas Fields
Oil Fields
Gas Condensate Fields
Prospects
Leads
Anggun
Prospect
2D Seismic Q4/13
Completion
2D Seismic Q4/13
Completion
• Pan Orient 100% & Operator
• Best fiscal terms in Western Indonesia 65%
GOI /35% Contractor profit split for oil (after
tax & after cost recovery)
• $7.5MM of work program commitments over 3
years (2 wells + seismic)
• Directly adjacent to the POE (77%) operated
Batu Gajah PSC
• 2D seismic underway, seeking a 50% partner
East Jabung PSC Sumatra
• Pan Orient 100% & Operator
• Best fiscal terms in Western Indonesia 65% GOI /35%
Contractor profit split for oil (after tax & after cost
recovery)
• Directly adjacent to the POE (77%) operated Batu
Gajah PSC
• 2D seismic underway, seeking a 50% partner
• Very large (>100 km2) exploration target at Anggun
prospect at multiple stratigraphic levels
• Drilling planned post farmout
Anggun
Prospect
Batu Gajah PSC
Gas Fields
Oil Fields
Gas Condensate Fields
Prospects Batu Gajah
Batu Raja Limestone Closure
Air Benakat Sandstone Closure
East Jabung PSC
Page 017
Anggun Prospect
Batu Raja
Target
Ketaling
Kitchen A
A’ A A’
Ketaling
Kitchen
Top Main
Oil
Batu Raja Closure
110 km2 in areal extent
E Ketaling
Field
Air Benakat Sandstone
targets
• Large prospect with 105 km2 maximum closure at
the Batu Raja limestone reef level and 130 km2
maximum closure at the Air Benakat 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
35 km
Air Benakat Closure
130 km2 in areal extent
Page 018
Sawn Lake, Alberta, Canada
• 154 million barrels of 2C contingent resources attributed to Pan Orient’s 71.8% ownership of Andora
• Andora is fully funded for the pilot with $24MM cash
• Drilling of the SAG-D horizontal well pair to commence early October, first oil is anticipated in the first quarter of 2014
• Maurel & Prom recently purchased a 30% net interest from Andora’s partner at a metric of approximately $0.75/recoverable 2C barrel
Millions of
barrels of
Heavy Oil High Best Low
Sawn Lake 180.3 154.0 140.0
NPV (10%)
Before Tax
(MM) $476 $351 $308
Sawn Lake Contingent Resources at December 31, 2012 (Pan Orient’s 71.8%)
Red
Earth
T79
R1
W5
R24 T98
Husky
Baytex
5th
Meri
dia
n
Sh
ell Penn
West
Sawn Lake
Koch
Page 019
Sawn Lake - Land Sawn Lake North
• 10% of 51 sections (non-operated)
• 100% of 9 sections
• 1.5MMbbls “Best Case” contingent
resources net to Andora
Sawn Lake Central
• 50% of 12 sections
• Designated Operator
• 138.7MMbbls “Best Case” contingent
resources net to Andora
• Approved Commercial SAGD Site
Sawn Lake South
• 100% of 16 sections
• 74.1MMbbls “Best Case” contingent
resources net to Andora
Pilot Location
Andora holds varying interests in 88 sections of
oil sands leases. Pan Orient Energy Corp owns
72.1% of Andora. Contingent Resource estimates
by Sproule at year end 2012
Page 020
Established Local Infrastructure
Rainbow
Crude Oil
Pipeline
Keyera 9”
Crude Oil
Pipeline
Nova 13” HP
Nat. Gas
Pipeline
All Season
Road
Existing Infrastructure!
All season roads
Facility site
Gas supply
Water Source &
Disposal options
Oil sales terminals
Local
…Service Co’s
…Contractors
…Suppliers
→ Cost Control
55 km
to Red
Earth
Creek
130 km to the town of Peace River
Sawn Lake Lands
Pilot Site
Page 021
Contacts
Pan Orient Energy Corp
Suite 1505, 505 3rd St SW
Calgary, Canada
Telephone: +1 403 294-1770
Fax: +1 403 294-1780
www.panorient.ca