Post on 20-Jan-2021
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© 2018 Pan Orient Energy Corp.
February 2019
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© 2018 Pan Orient Energy Corp.
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 Venture Exchange,
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.
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© 2018 Pan Orient Energy Corp.
Corporate Summary
Financial
Basic Common Shares Outstanding (TSXV:POE) Dec31-2018 54.9 million
Insider Holdings 7.3%
Total Long-term Debt nil
Market Capitalization @$1.40/Share $76.9 million
Total Corporate Funds Flow from operations 2018 Q3 (9 months) $2.5 million
Working Capital & Non-current Deposits – Pan Orient Sept30-2018 $33.0 million
Working Capital & Non-current Deposits – Thailand Joint Venture Sept30-2018 $ 6.6 million
Working Capital & Non-current Deposits (Pan Orient & Thailand JV) $39.6 million ($0.72/POE Share)
Reserves1 & Prospective Resources2 & Contingent Resources3
Thailand Proved + Probable Reserves (“2P”)1 (50% of POS) 1.366 million
NPV10 @ Tax $ 39.5 million
per Pan Orient share $0.72
East Jabung PSC Indonesia - Unrisked Mean Prospective Resources 2 122.9 million barrels recoverable
Sawn Lake Alberta - Risked Mean Contingent Bitumen Resources 3 (71.8% of Andora) 141 million bbls recoverable
Notes:
1. Thailand oil reserves at December 31, 2018 evaluated by Sproule International Limited for Pan Orient Energy (Siam) Ltd. (POS),
value shown here reflects POE’s 50% ownership in POS.
2. Indonesia Prospective Resources for the Anggun Prospect at the East Jabung Production Sharing Contract (PSC) as at June 15,
2015 evaluated by Gaffney, Cline & Associates (Consultants) Pte. Ltd. in barrels of oil equivalent.
3. Sawn Lake Contingent Bitumen Resources at June 30, 2016 evaluated by Sproule Unconventional Limited, volume shown here
reflects POE’s 71.8% ownership in Andora Energy Corporation (Andora)
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© 2018 Pan Orient Energy Corp.
Asian Assets
Thailand
• History of value creation onshore
– Concessions L44 & L33 purchased October 2007
and sold June 2012 to ECO Orient for net proceeds
of $174 million, before tax
• Concession L53:
– Five oil discoveries at L53A, L53-D, L53-G & L53B &
recently L53DD in November 2018
– A 50% working interest sold in 2015 for net proceeds
of $52 million
– Dec31- 2018 proved plus probable oil reserves
increased 150 per cent and proven reserves
increased 65%
– January 2019 gross (100%) oil sales of 40,773
barrels (658 BOPD net to POE’s 50%)
– A two well appraisal drilling program including well
L53-DD4 targeting the DD field 3P reserves
envelope and L53-DD3 targeting the 2P reserves
area is currently underway
– A three to four well exploration drilling program
planned for late Q3/Q4 2019
Indonesia
• High impact Anggun-1X exploration well planned for late
Q2 2019 at East Jabung PSC
Indonesia: East Jabung
POE 49% Non-Operator
Exploration
Exploration & Production
Thailand: L53
POE 50% Operator
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© 2018 Pan Orient Energy Corp.
Pan Orient Valuation
Capital Structure
Basic Common Shares Outstanding (TSXV:POE) Dec31-2018 54.9 million
Total Long-term Debt nil
Market Capitalization (Current Share Price) $76.9 million ($1.40/POE Share)
Estimated Market Valuation of Assets
Working Capital & Non-current Deposits – Pan Orient Sept30-2018 $33.0 million
Working Capital & Non-current Deposits – Thailand Joint Venture Sept30-2018 $ 6.6 million
(1) Working Capital & Non-current Deposits (Pan Orient & Thailand JV) $39.6 million ($0.72/POE Share)
(2) Thailand Proved & Probable Reserves NPV(10) Dec31-2018 Net to POE $39.5 million ($0.72/POE Share)
Working Capital, Non-Current deposits & Thailand Reserves (1+2) $78.1 million ($1.44/POE Share)
At a $1.40 Share Price, no implied value attributed to:
a) Thailand Exploration Upside,
b) East Jabung Prospective Resources, and
c) Sawn Lake Contingent Resources
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© 2018 Pan Orient Energy Corp.
Capital-Drilling Schedule 2019
Notes:
1. ANGGUN-1X drilling is anticipated to start in late Q2 2019 & take approximately 31 days to completion. Based on the
well cost estimate provided by the operator, it is estimated POE’s net cost on a dry hole basis will be US$7.5 million
plus an additional US$1.5 million for testing of two zones in the success case.
2. Thailand 2 well appraisal program drilling + completion cost
3. Thailand 4 well exploration program dry hole cost
DD 2 Well Appraisal
L53 Thailand
Capital Q4/2018 Q2/2019 Q4/2019 Q1/2019 Well/Area
Anggun-1X Testing
East Jabung Indonesia
4 Exploration Well Drilling Program
L53 Thailand
Q3/2019
Anggun-1X Exploration Well
East Jabung Indonesia
Range of timing of commencement of drilling – Firm Activity
Range of timing of commencement of drilling – Contingent Activity
$7.5MMusd1
$1.9MMusd2
$2.8MMusd3
Firm 2019: $12.2MMusd
Contingent 2019: $1.5MMusd
$1.5MMusd
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© 2018 Pan Orient Energy Corp.
East Jabung PSC Indonesia
East Jabung PSC
Repsol (Talisman) assets
Oil Pipeline
Gas Pipeline
ANGGUN-1X WELL
• Repsol (Talisman) 51% Operator & POE 49%
• East Jabung PSC possess the best fiscal terms of
any conventional PSC onshore Indonesia with net
contractor take after tax of 35% after cost recovery
for oil and 40% after cost recovery for gas.
• The region within which the PSC is located has
excellent pipeline infrastructure that feeds into
high gas demand markets with current gas pricing
of approximately US$6 to US$8 per mcf.
• AYU-1X, the first well drilled by the joint venture,
encountered a 10m oil column in the Batu Raja
limestone and highly elevated mud gas reading
with oil shows in the Gumai sandstones
confirming hydrocarbon charge into this region.
• Excellent, thick reservoirs were encountered at
both the Gumai sandstone and Batu Raja
limestone target levels in AYU-1X.
• The Anggun-1X exploration well will target the
Gumai sandstones (primary target) in a structural
closure up-dip of the AYU-1X drilling location and
the Batu Raja limestone (secondary target) that is
in a independent closure from the AYU-1X well.
• Drilling is planned to commence in late Q2 2019
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© 2018 Pan Orient Energy Corp.
Geological Summary
Oil Shows & High Mud
Gas C1-C5
Oil Shows & High Mud
Gas C1-C5 @AYU-1X
Gumai Sands
ANGGUN-1X
10m Oil Column
In Batu Raja Limestone
@AYU-1X
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© 2018 Pan Orient Energy Corp.
Top Gumai Sandstone Structure Map
Anggun-1X will test near the crest of a large (99 to 180 km2)
structural closure at the top Gumai sandstone level at a
location 4.6 kms north west and 80 meters structurally up dip
of the AYU-1X well that was completed drilling in August
2017 with high mud gas readings (C1 to C5’s) and oil shows
observed through the Gumai sandstones while drilling. AYU-1X
August 2017
Anggun-1X
Q4 2018
Maximum closure
Most Likely closure
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© 2018 Pan Orient Energy Corp.
• Anggun-1X will test an
independent (separate from
the Ayu-1X) structural closure
at the Batu Raja Limestone
level.
• A 10 meter of oil column was
encountered in the top of the
Batu Raja at Ayu-1X with
excellent porosity and
permeability.
AYU-1X
August 2017
10m oil column
Anggun-1X
Forestry Approved Drilling
Location
Protected Forest
Top Batu Raja Limestone Structure Map
Maximum closure
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© 2018 Pan Orient Energy Corp.
Anggun-1X Cost Estimate
Estimated Dry Hole Cost: US$7.5 million
Testing (if justified): US$1.5 million
(Net to POE’S 49% WI) Anggun-1X Well Pad Feb 09/19
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© 2018 Pan Orient Energy Corp.
Anggun-1X Road & Well Pad
Construction
Aerial view of the access road @
kilometer 1.9 Feb 09/19 Access road soil fill @ kilometer 2.4
Access road course pavement Jan 25/19 Access road Geotextile @ km 2.32
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© 2018 Pan Orient Energy Corp.
East Jabung – Anggun Summary
• Based on the Operator’s AFE cost estimate, POE’s
net cost of the Anggun-1X well is estimated at
US$7.5 million (dry hole) and US$1.5 million for
testing if justified by results.
• The Anggun-1X access road will be permanent,
unlike Ayu-1x which used temporary rig mats.
• Road and pad construction will take place mainly
during the dry season, decreasing construction time.
• The structural complex being targeted by the
Anggun-1X well was estimated by Gaffney Cline in
2015 to hold a Pmean potential of 122.9MMboe
(recoverable) net to POE’s interest within the Batu
Raja, Gumai and ABF formations. In the GCA report
the majority of resources were attributed to the
combined “Intra ABF” and “Gumai” reservoirs.
Subsequent AYU-1X drilling information indicated
the GCA “Intra ABF” to in fact be the Top Gumai and
the GCA “Gumai” to in fact be the intra Gumai.
• East Jabung PSC possess the best fiscal terms of
any conventional PSC in Indonesia with after tax net
contractor take of 35% after cost recovery for oil and
40% after cost recovery for gas. The region within
which the PSC is located has excellent pipeline
infrastructure that feeds into high gas demand
markets with gas pricing of between US$6 to US$8
per mcf.
• An NI51-101 compliant Prospective Resources
Report was completed for Pan Orient by
Gaffney Cline and Associates as at June 30,
2015. See Page 6 of Pan Orient’s December
31, 2015 MD&A.
• The report was completed prior to the drilling
of the AYU-1X and ELOK-1X exploration wells.
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© 2018 Pan Orient Energy Corp.
ONSHORE THAILAND
CONCESSION L53
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© 2018 Pan Orient Energy Corp.
Concession L53/48
• Pan Orient 50% interest with one local Thai partner
holding the remaining interest.
• Per barrel costs ($CAD) during the third quarter of 2018
were:
• Transportation expenses of $1.83
• Operating expenses of $15.37
• General and administrative expenses of $10.28
with substantial per barrel reduction expected in
2019 due to DD oil discovery
• A 5% royalty to the Government of Thailand
• December 31, 2018 Reserves (net POE)
2P: 1.3655 MMbbls (150% increase)
1P: 0.4505 MMbbls (65% increase),
2P NPV(10) after tax: Cdn$39.5 million (182% increase)
• 2018 Thailand oil sales averaged 92% of Brent price
• 2019 cash flow will be used to fund an expanded Thailand
exploration drilling program & a portion of the drilling of
Anggun-1X exploration well in Indonesia
100% (POE 50% WI)
Thailand Oil sales prices (% of Brent)
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© 2018 Pan Orient Energy Corp.
Fau
lt
AA OWC
AA (2P)
BB/CC (1P+2P)
DD/EE (1P+2P)
BB/CC OWC
DD/EE OWC
DD-2 DD-1
DD Field Summary
ZZ Sand
No Reserves
Test 1
489 BOPD
Test 2
756 BOPD
Test 1
645 BOPD
Test 2
409 BOPD
Major Fault
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© 2018 Pan Orient Energy Corp.
DD Field Drilling & Reserves
2P Cut Off
3P Limit
• 2 well appraisal drilling program commenced Feb11-2019
• DD4 well currently drilling ahead targeting the 3P fault compartment immediately
north of the 1P/2P main fault compartment targeting all 3 sands
• DD3 well will be targeting the thick BB/CC sand encountered at DD2 and the AA
sand encountered at DD1 in addition to the DD/EE
BB/CC Sand Depth Structure
1P
M BBL
2P
M BBL
3P
M BBL
AA - 257 586
BB/CC 271 988 2,650
DD/EE 144 544 1,323
Total 399 1,719 4,386
PAN ORIENT ENERGY (SIAM) LTD. (100% WORKING INTEREST IN CONCESSION
L53/48) (PAN ORIENT HAS 50% INTEREST IN PAN ORIENT (SIAM) LTD.)
SUMMARY OF THAILAND CRUDE OIL RESERVES AS OF DEC31-2018, BY ZONE
AS PROVIDED BY SPROULE - COMPANY GROSS (THOUSANDS OF BARRELS)
DD4
DD3
Possible (3P) reserves are those additional reserves that are less certain to be
recovered than probable reserves. There is a 10% probability that the quantities actually
recovered will equal or exceed the sum of proved plus probable plus possible reserves.
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© 2018 Pan Orient Energy Corp.
Prospect Closure (km2)
Reserves
YE 2018
AA 0.69 NA
AA North 0.27 NA
AA East 0.20 NA AA South 0.15 NA
BB (DD Ridge) 0.34 NA
BB West 0.22 NA
TOTAL 1.87 NA
DD Possible 0.27 2.770 DD Proven+Probable 0.64 1.804
AA
AA
North
BB
BB
West
AA
East
AA
South
1 KM
• The DD field 3P area will be tested by DD4 well
which is currently drilling
• BB & AA locations will require certain
Government of Thailand approvals and be ready
to drill in 6-9 months
AA
BB
DD Area Prospects
DD Pad
2019 Proposed Locations
DD4
Currently Drilling
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© 2018 Pan Orient Energy Corp.
AA
AA
North
BB
BB
West
AA
East
AA
South
1 KM
AA
BB
DD Area Prospects
Z ZZ
Z ZZ
Near Top
AA Sand
Near Top
CC Sand AA
Prospect
AA
South
Prospect
DD
Field
DD4
Currently Drilling
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© 2018 Pan Orient Energy Corp.
L53 Exploration
Prospects
Mature Source
Rocks
5 km.
L53G PA
PTTE
P
L53/48
West A1-A4
West A5-A7
Prospect
KS Basin
Closure
(km2)
WEST_A1-A4 2.01 WEST_A5 0.78 WEST_A6 1.20 WEST_A6A 0.50 WEST_A7 4.20 TOTAL 8.69
Prospect
Suphan Buri Basin
Closure
(km2)
AA 0.69 AA North 0.27
AA East 0.20
AA South 0.15
BB (DD Ridge) 0.34
BB West 0.22
TOTAL 1.87
DD Location
2019 Exploration Well
Future Exploration Well
• 3 to 4 well exploration program planned for late Q3/Q4 2019
• Expect government approval for the DD area locations in September 2019
• West A1-A4 exploration location approvals completed
• West A7 (2020 drilling) exploration well pad construction is completed
• Exploration Reserve Areas A&B will expire in January 2021, after which only the
production areas (A,B,D,G & DD) plus any new production areas will be retained
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© 2018 Pan Orient Energy Corp.
Sawn Lake, Alberta, Canada
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© 2018 Pan Orient Energy Corp.
Andora’s Sawn Lake SAGD Project
• Pan Orient Energy Corp. owns 71.8% of Andora
• Andora is focused on developing the bitumen resources at Sawn Lake using SAGD development.
• Currently interests in ~80 sections of oil sand leases
• 141.4 million barrels of risked “Best Estimate” contingent bitumen resources attributed to Pan Orient’s 71.8% ownership of Andora (Andora has 196.9 million barrels). Andora operates 99%.
• Demonstration project produced bitumen September 2014 to February 2016 and indicated that Sawn Lake is a top quartile SAGD asset.
• Intended development with Andora’s patented “Produced Water Boiler” (PWB) which enables use of “battery scale SAGD” to significantly reduce financial, reservoir and operating risk.
Sawn Lake
(Company Gross)
(15% development risk)
High
Estimate
Best
Estimate
Low
Estimate
Millions of barrels of
Bitumen - SAGD 166.1 141.4 128
Sawn Lake Risked Contingent Bitumen Resources at June 30, 2016 (net to Pan Orient’s 71.8%) Evaluated by Sproule Unconventional Limited. See NI51-101 Filing on SEDAR on April 28, 2017.
Red
Earth
T79
R1
W5
R24 T98
Husky
Baytex
5th
Meridia
n
Shell
Penn
West
Sawn Lake
Koch
Peace River Oil Sands Area
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© 2018 Pan Orient Energy Corp.
Andora’s Oil Sands Leases
Sawn Lake North
• 10% of 44 sections (non-operated) (note:
includes one four section lease whose primary
term ended in July 2018 and it is uncertain which
sections the operator is able to continue
indefinitely – no impact on contingent resources
assigned)
• 100% of 9 sections (Andora operated)
• 1 MMbbls risked “Best Estimate” contingent
resources net to Andora
Sawn Lake Central
• 50% of 11 sections (Andora is Operator)
• 128 MMbbls risked “Best Estimate” contingent
resources net to Andora
• SAGD Demonstration Project facility & wellpair at
7-30-91-12W5
Sawn Lake South
• 100% of 16 sections (Andora is Operator)
• 67 MMbbls risked “Best Estimate” contingent
resources net to Andora Andora holds varying interests in estimated 80 sections
(although four sections under review) Dec31-2018 with 197
MMbbls contingent bitumen resources assigned. Pan
Orient has a 71.8% ownership in Andora.
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© 2018 Pan Orient Energy Corp.
Progress at Sawn Lake
Demonstration Project 2014 - 2016
• Bitumen production in January and February 2016 averaged 615 barrels BOPD with an average
instantaneous steam-oil ratio (“ISOR”) of 2.1 from the one SAGD wellpair.
• Established viability of the SAGD process in the Bluesky formation at Sawn Lake.
Potential Expansion to 3200 BOPD
• Andora finalized detailed engineering for its patented PWB in 2017.
• Regulatory approval received Dec5-2017 for potential commercial expansion to 3200 BOPD (in
which Andora has a 50% working interest and is the operator) using Andora’s PWB.
• Potential expansion has estimated cost of approximately $50 - $60 million (on a 100% working
interest basis) and bitumen production would commence about 24 months after an investment
decision by Andora and its partners.
• Stable crude oil prices, and specifically higher Western Canada Select reference prices, will have a
significant impact on any decision regarding the timing and extent of future development.
• Expansion is dependent on completion of detailed engineering and a higher commodity price
environment to support project economics and financing.
Note: Production results to date are not necessarily indicative of long-term performance or of ultimate recovery and the Sawn Lake
demonstration project has not yet proven that it is commercially viable.
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© 2018 Pan Orient Energy Corp.
Sawn Lake Quality
Sawn Lake
Tier 1 Projects
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© 2018 Pan Orient Energy Corp.
Andora Summary
Andora Value Components
1. Sawn Lake Interests & Operations - “Tier 1” SAGD asset with significant potential value at
WCS US$40 – US$50 heavy oil prices
• 197 million barrels of Bluesky Risked “Best Estimate” Contingent Resources
• 50% ownership of $34 million SAGD facilities & SAGD wellpair
• Control of Sawn Lake development as Operator per the JOA
2. Andora proprietary technology for “Produced Water Boiler” to for intended use at Sawn Lake
and utilized at other projects
3. SAGD experience for drilling, installation of facilities & operations
4. Corporate entity with Dec31-2018 approximately $56 million of tax pools/losses
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© 2018 Pan Orient Energy Corp.
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