page 01 pan orient energy corp. corporate … east jabung psc’s petrochina production pertamina...

© 2011 Pan Orient Energy Corp.

Sawn Lake Canada

SAGD Demonstration

Project

L53 Thailand

Production &

Exploration

Batu Gajah & East Jabung PSC’s

South Sumatra, Indonesia

Exploration

Producing

Exploration

Citarum PSC

West java, Indonesia

Exploration

Pan Orient Energy Corp.

Corporate Presentation December 2014


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.


Summary

• 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

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


MATURITY

Pro

sp

ec

tive

Re

so

urc

es

Co

nti

ng

en

t R

es

ou

rce

Re

se

rve

s

L53 THAILAND

Sawn Lake Canada

Batu Gajah PSC Indonesia

East Jabung PSC Indonesia

Citarum PSC Indonesia

L44/L33THAILAND

CAPITAL

REDEPLOYED

Sold entire 60% WI in Concessions

L44 & L33 Thailand for $158 million

net proceeds (2012)

A

A

Redeployed $25 million capital by

rights offering into Andora Energy to

complete a one SAGD well pair

demonstration project

Redeployed $5million capital to

complete minimum work program

commitment 2D seismic in East

Jabung PSC

A1

A2

A3

A4

A2

A3

Redeployed $53million capital to


commitment of two wells in Citarum

PSC

A4

Capital Allocation 2012-2013

A5

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

A5

Redeployed $25 million capital to


commitment of 2D & 3D seismic &

two wells in Batu Gajah PSC

$0.75/share

dividend to POE

shareholders


MATURITY

Pro

sp

ec

tive

Re

so

urc

es

Co

nti

ng

en

t R

es

ou

rce

Re

se

rve

s

L53 THAILAND

Sawn Lake Canada




New PSC Indonesia

CAPITAL

REDEPLOYED

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

B

C

B Selling 50% of subsidiary holding

Thailand Concession L53 for $48

million net (announced 2014) in 2015

Q1– retained 50% & Operatorship

Contingent capital may be required

for appraisal drilling in the event of

exploration success

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

B1 B2

B1

B2

Capital Allocation 2014-2015

C

B3

B3

Approximately $5.6 million will be

spent to appraise the Selong field

extension into the Batu Gajah PSC.


Asset Portfolio

Project Capture

Su

ccess C

ase

Rela

tive V

alu

e

L53 Reserves

Sawn Lake SAGD

L53 Exploration Takar Prospect

Anggun Prospect

East Jabung PSC

(farming out 51%)

L53 Appraisal

Raka Prospect

Seismic Drill Ready Prospects Drilling/Pilot Reserves

$29.5MM 2D/3D Seismic

Selong Extension

Batu Gajah PSC

Sale

2015/16 Work Program

Cataka-1X

Citarum PSC

(pending farmout)


Concession L53 Thailand

• 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

2013 3D

2008 3D

Prospects

L53-A Field

L53-G Field

L53-D East Field

L53

Oil Kitchen A

Oil Kitchen B

A North Prospects

U-Thong Oilfield

L53-A Production Site


Concession L53 Transaction

• 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

A North

Prospects

U Thong Field 4.5mm BBLS

Cumulative production

PTTEP

Pan Orient

L53

• The L53A-North prospects are a group of

structural closures (six) with a combined

maximum areal extent of approximately 9.76 km2

• Full coverage by 3D seismic acquired in 2013

• 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

2.0 km

A North Central Well Pad Ready to Go……


L53A-North Central Prospect

4.5 km

A North Central

Stacked

Multiple sands

W E

W

E

A North East A North East 2

Direct Hydrocarbon

Indicators


Onshore South Sumatra, Indonesia

East Jabung PSC (POE 49% Non Operator after

farmout)

– 2,948 km2 (Gross)

Batu Gajah PSC (POE 77% & Operator)

– 793 km2 (Gross)

North Jabung JSA (POE 20% Option/Non Operator)

– 4,106 km2 (Gross)

Gas Fields

Oil Fields

Gas Condensate Fields

• Production dominated by Conoco Phillips,

PetroChina, Talisman and Pertamina

• Significant existing gas infrastructure supplying

Singapore, Java and Central Sumatra

• 2015 / 2016 Drilling planned in both Batu Gajah

and East Jabung PSC’s

PetroChina

Production

Pertamina

Production

Conoco/Talisman

Production Pertamina/Talisman

Production



• East Jabung PSC (POE 49% Talisman 51% &

Operator after farmout)

• 65%GOI/35% profit split on oil - best in

Indonesia

• Anggun-1 prospect ~100km2 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

Gas Fields

Oil Fields


Prospects

Pan Orient 3D Seismic 2013

Wells Drilled (POE)

East Jabung PSC

POE 100%

Selong Extension

Rafa

Kemala

Raka

Takar

Sogo Utara


Batu Gajah PSC after

last relinquishment

Gas Fields

Oil Fields


Prospects

2D Seismic

3D Seismic

• Batu Gajah PSC (POE 77% & Operator)

• Large resource potential – 6

prospects – 4 drill ready

• Selong oil discovery in adjacent

acreage appears to extend into

POE acreage based on 3D

seismic data

• Drilling of Selong Extension

planned for 2015

• $50 million cost pool


SW Betara Field

Selong-1

790 bopd

Akatara-1

Gas??

Akatara-2

919 bopd

Lemang PSC

Boundary

Lower Talang Akar Structure

Selong-Akatara Extension

A A’

A

A’ Basement

L Gumai

LTAF

UTAF

3D Seismic

Batu Gajah PSC

Boundary

Proposed Well

Proposed Well

Akatara-1


• 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


POE Land Prospects Leads Gas Field Oil Field

Cataka-1X

256 Bcf

780 Bcf


Sawn Lake, Alberta, Canada

• 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 214.4 million barrels)

• Demonstration project commenced in 2013; first stream injection in May 2014; bitumen production commenced September 2014

Millions of barrels of

Heavy Oil - SAGD High Best Low

Sawn Lake 180 154 140

Sawn Lake Contingent Resources at December 31, 2013 (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


Sawn Lake – Oil Sand Leases

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


• Designated Operator



• Approved SAGD Demonstration

Project underway at 7-30-91-12W5

Sawn Lake South




Andora holds varying interests in 88 sections of oil sands

leases. Pan Orient Energy Corp. owns 71.8% of Andora


Demonstration Project – Phase 1

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


SAGD Pair Performance

0

2

4

6

8

10

12

14

0

100

200

300

400

500

600

0 1 2 3 4 5 6 7 8 9 10

Month

SO

R

BO

PD

Sawn Lake Bluesky Fm vs Lower Grand Rapids Fm Analog Performance Comparison

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

Lower Grand Rapids Oil Production

Sawn Lake Blue Sky SOR

Lower Grand Rapids SOR


Drilling Schedule 2015/16

Q1/2015 Q3/2015 Q1/2016 Q2/2015 Q4/2015 Well/Area

L53A North Central

Thailand L53

Cataka-1X


Selong East-1


Anggun-1


Q2/2016

2 Appraisal Wells

L53 Thailand

Second SAGD Pair

Sawn Lake Canada

2 Appraisal +1 Exploration

Thailand L53

Range of timing of commencement of Drilling

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 1st pair performance and final partner approval.

Firm Well Contingent Well

Contingent Selong Offset

Appraisal Well

Contingent A North Central/East

Appraisal Wells

Contingent A North Central

Appraisal Wells


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

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