ENRG 2011 Results

7/31/2019 ENRG 2011 Results

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Creating Value Via Exploration & Acquisition

9 April 2012

PT Energi Mega Persada Tbk.


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Energi Mega Persada

This presentation has been prepared by PT Energi Mega Persada Tbk (the Company) and is only for the information of its investors.

None of the information appearing in this presentation may be distributed to the press or other media or reproduced or redistributedin the whole or in part in any form at any time. This presentation is not intended as or forms part of any offer to sell or subscription of

or solicitation or invitation of any offer to buy or subscribe for any securities, and neither this presentation nor anything contained

herein shall form the basis of or be relied on in connection with any contract or commitment whatsoever.

This presentation may contain forward-looking statements and estimates with respect to the future operations and performance of

the Company and its affiliates. Investors and security holders are cautioned that forward-looking statements are subject to various

assumptions, risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company.

Such assumptions, risks and uncertainties could cause actual results and developments to differ materially from those expressed in or

implied by the forward-looking statements.

Accordingly, no representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or

reliability of the information contained in this presentation, nor is it intended to be a complete statement or summary of the

resources markets or developments referred to in this presentation. It should not be regarded by recipients as a substitute for the

exercise of their own judgment.

Neither the Company or any other person assumes responsibility for the accuracy, reliability and completeness of the forward-looking

statements contained in this presentation. The forward-looking statements are made only as of the date of this presentation. TheCompany is under no duty to update any of the forward-looking statements after this date to conform such statements to actual

results or developments or to reflect the occurrence of anticipated results or otherwise.

Any opinions expressed in this presentation are subject to change without notice and may differ or be contrary to opinions expressed

by other business areas or groups of the Company as a result of using different assumptions and criterion.

Confidentiality Notice

2


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Energi Mega Persada

Stake : 10%

2P Reserves: 33 mmbbl(2), 1,846.8 bcf

LNG and Condensate production

expected to start in 2018

Operator: Inpex

Partner: Inpex (60%), Shell (30%)

INDONESIA

Medan

KALIMANTAN

JAKARTA

Banda Aceh

Java

Sea

Molucca Sea

South China Sea

Celebes Sea

Duri

Semberah TAC

Korinci Baru PSC

Sungai Gelam TACGebang JOB PSC Malacca Straits PSC

Banda Sea

Tabulako CBM

PSC

Bentu PSC

Singapore

Kangean PSC Masela PSC

Tonga PSC

Sangatta-2 CBM PSC

Assets Overview

4

Energi Mega Persada

Stake: 50%

2P Reserves: 19.2 bcf

2011 Prod: 19 bbl/day; 0.7 mmcf/day

Operator: JOB Pertamina Costa

Partner: Pertamina (50%)

Stake : 60.5%

2P Reserves: 22.7 mmbbl, 13.2 bcf

2011 Prod: 4,465 bbl/day; 8.7 mmcf/day

Operator: EMP

Partner: CNOOC (39.5%)

Stake : 100%

2P Reserves: 3.0 mmbbl


Operator: EMP

Stake : 100%



Operator: EMP

Stake : 100%


2011 Prod: 4.4 mmcf/day

Operator: EMP

Stake : 50%

2P Reserves: 4.8 mmbbl; 672.6 bcf

2011 Prod: 1,360 bbl/day, 15.5 mmcf/day

Operator: KEI

Partners: Mitsubishi (25%), Japex

(25%)

Stake : 100%



Operator: EMP

3

Arafura Sea

Note:

Bcf = billion cubic feet

Mmbbl = million barrels

bbl/day = barrel oil/day

mmcf/day = million cubic feet/day

Stake : 18.7%

2P Reserves: 22.7 mmbbl; 135.5 bcf


Operator: Pertamina

Partners: Pertamina (53.25%),

Talisman (5.03%), Risco (5%), Owen

Holding (17.91%)

ONWJ PSC

Net 1P Reserves 306 mmboe

Net 2P Reserves 576 mmboe

Net 2011 Production 7,200 bbl/day, 56.4 mio cf/day


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Energi Mega Persada4

Board of Directors

Imam P. Agustino, President Director - CEO

23 years of experience in upstream and downstream oil and gas industry. He spent his career from explorationto production, with special expertise in Project Management and Business Development.

In the last 10 years as top executive positions in local and international oil and gas companies, including few

years with Trafalgar House UK ( Kvaerner ), and other oil and gas companies.

Amir Balfas, Director - COO

A geologist by background and brings more than 28 years of upstream oil and gas experience to the Company.

Spent over 20 years at VICO Indonesia East Kalimantan Block, and joined EMP Malacca Straits in 2001.

Didit A. Ratam, Director - CFO

Has held finance positions within oil and gas upstream and services companies throughout his career.

Previous professional experience in such companies as Mobil Oil (Fairfax, VA), Gas Venture Advisers (Boston,

MA) and Federal JWR Pte.Ltd.

Over 10 years experience in the financial relateds sector, which includes merger & acquisition,

financial restructuring, and other capital market transactions.

Management positions with Capital Managers Asia and Bakrie Kalila Investments in the past 8 years.

Syailendra S. Bakrie, Director


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Energi Mega Persada

Improved 2011 Production & Financial Results

5

FYE 2010 FYE 2011 Growth

Net Sales (Rp 000) 1,249,710,407 2,122,862,753 +69%

EBITDA (Rp 000) 372,759,367 894,186,757 +140%

Net Profit (Loss) (Rp 000) (62,318,783) 68,562,714

Oil Price US$ 81.4/ bbl US$ 112.3/ bbl +38%

Gas Price US$ 2.9/ mcf US$ 4.0/ mcf +38%

Oil Production 6,370 barrel/ day 7,200 barrel/ day +13%

Gas Production 42 million cubic feet/ day 56.4 million cubic feet/ day +34%


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Energi Mega Persada

6.4 7.213.16.7

9.4

5.9

45.2

5.8

2010 2011 2012 peak

daily

production

Oil Gas

Source: Offering circular.

Note: Gas production is converted at 1,030 btu = 1 cf, 6 bcf = 1mmboe.

Visible plan to monetize existing reserves via established infrastructure and proximity to key markets

Net Oil / Gas Production Ramp Up

Kangean

Terang

Q2 2012

6

Near term ramp up to be dominated by gas production

Bentu

Seng,

Segat

PLN

Q4 2012

Production Growth Outlook

000 boe/day

27% production

increase in 2011

was due to

Kangeans oil andBentus gas

Peak production

rate toward the

end of 2012 is

58,000 boe/day

Average

production rate(Jan-Dec 2012) is

above40,000

boe/day

ONWJ

Acquisition

Q1 2012

13.116.6

58.3

11.7

25.0

5.0


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2011 Gas from Bentu PSCs Seng + Segat Fields @ $4.08/mcf

2012 Gas from Kangean PSCs TSB fields @ $6/mcf (including $0.84/mcf toll fee)

Gas from Malacca Strait PSC @ $4.94/mcf

Gas from ONWJ PSC @ $4.1/mcf (to PLN, Pupuk Kujang, PGN)

Source: EMP

ENRGs Gas Sales Agreements Pending Commencement

$2.90

$4.00

$5.00

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

2010 Realized Price 2011 Realized Price 2012

($/mcf)

Increasing Trend in Realized Gas Price

7



2009 2010 2011

gas

oil

576

237

66

ENRG Medco Salamander

Benchmarking ENRG with Independent Indonesian-focused O&G Companies(1) (2P millions boe)

(in millions boe)

Proved and Probable Reserves of 576 millions boe; plus additional 435 millions boe Possible Reserves and 97 millions boe of net

Contingent Resources (2) (2C)

Source: Medco Energi - 9M11 Investor Presentation, Salamander Energy - AGM Presentation (June 2011).

Gas converted at 6 billion cubic feet = 1 million boe.

(1) O&G interests in Indonesia only, net of working interest.

(2) As of 31 December 2010.

Opportunity to Monetize Attractive Assets

8

Reserve Growth (Proved & Probable Reserve)(in millions boe)

221

531576



Exploration history:

1999: 2D seismicsurvey

2000: Abadi-1

Exploratory well,

tested at 25 millions

cubic feet/day

2001: 3D seismic

survey

2002: Abadi-2 andAbadi 3 Appraisal

wells, tested around

15 millions cubic

feed/day/ well

2007: Abadi-

4/5/6/7 Appraisal

wells. All were

tested and

confirmed existence

of gas

Acquisition of 10% in Masela PSC Adds Value to ENRG

Approved Development Concept

Subsea production system + Floating LNG

Floating LNG consists of loading LNG

plant, LNG storage tank and loading

facility on conventional FPSO

Masela PSC was granted on Nov 16, 1998

on frontier fiscal terms

INPEX Masela Ltd. is the operator

PSC location in Arafura Sea, deep water in

Indonesian territorial waters

Plan of Development was approved in Dec

2010 for the Abadi Gas Field

Estimated production (100%): 2.5 Mn ton

LNG/ year (Flat for 30 years), starting in 1H2018

Reserves:

Abadi Gas Reserves were certified by DeGolyer & MacNaughton (D&M) in Dec 2008: P1 - 9.76 trillion cubic feet, P2 - 8.7 trillion cubic feet

The Company anticipates that gross condensate recovery associated with 1P reserves will be 176 million bbls, and associated with 2P

reserves will be 333 millions bbls

Sunrise = 9 TCF

(potential FLNG)

Masela/ Abadi = 9 TCF(1P, pre-FEED)

Evans Shoal = 6 TCF

(under appraisal)

Bayu Undan = 3 TCF

(in production to LNG)

9



ENRGs 10% Value in Masela PSC has Improved

ENRG acquired 10% stake in Masela PSC for US$ 100 Mn ($0.32/boe) in Q4 2010.

Value is estimated to have increased by 2.9x in Q4 2011, post Shells 30% acquisition

in Masela PSC.

JP Morgan (8 Dec 2011) and Mandiri Securities reports (12 Dec 2011) estimated

Maselas 100% value at $2.9 Bn.

Q4 2010 Q4 2011

US$ 100 Mn

US$ 291 Mn

ENRGs 10% Value in Masela PSC

2.9x

10


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Energi Mega Persada

In Q4 2011, ENRGs 51% owned subsidiary

(EMP Intl (BVI) Ltd) acquired 36.72% stakein ONWJ PSC.

ONWJs 1H 2011 production (100%) =

31,400 barrels/day + 186 Mn cubic ft/day.

Production sharing contract covers an area

of 8,300 km2 in Offshore North West Java

Contract expires in January 2017 with

opportunity for another 20 years

extension.

Proved & Probable Reserves of 240 Mn

BOE, with opportunity to develop 120 Mn

BOE Possible Reserves.

Acquisition of 18.72% in ONWJ PSC Adds Value to ENRG

11

Oil Reserves (Millions barrels) Gas Reserves (Billions cubic feet)

Proved Probable Possible Proved Probable Possible

89.7 31.4 63.7 541.5 182.2 339

ONWJs reserves (100%) as reported by the Operator:


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Energi Mega Persada

ONWJ Acquisition Improves ENRGs Reserves & Production

ENRGs Effective Stake of 18.72% in ONWJ Adds Value to the CompanysReserves and Production.

531

576

ENRG (2011) ENRG + ONWJ ENRG (2011) ENRG + ONWJ

2P Reserves increase in millions BOE Daily Production increase (in BOE/day)

16,200

27,900

1.1x

1.7x

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Energi Mega Persada

ONWJ Can Self-Repay Its Acquisition Cost

ENRGs 51% owned subsidiary (EMP Intl (BVI) Ltd) acquired 36.72%

stake in ONWJ for US$ 212 Mn (US$ 2.4/Boe based on effective 2Preserves).

The US$ 212 Mn asset acquisition was funded by offshore financing

which was arranged by a Strategic Partner who owns 49% of the

subsidiary (EMP Intl (BVI) Ltd).

The financing was arranged at the Subsidiary level (EMP Intl (BVI)

Ltd) and is Non Recourse to ENRG (a Project Financing, ring-fencedwithin the ONWJ project).

ONWJs 36% Stake(in Mn US$)

Annualized 2011 Sept 2011 Dec 2010

(12 months) (9 months) (12 months)

REVENUE 256 192 223

OPERATING PROFIT 132 99 104

NET PROFIT 68 51 56

ACQUISITION VALUE 212

ACQUISITION VALUE

NET PROFIT3x

13

36.72%

100%

ENRG

Owen Holding Limited.

EMP Intl(BVI) Ltd.

EMP ONWJ Ltd.

Blok ONWJ PSC

51% 49%


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Energi Mega Persada

Estimated FYE 2011 (US$ Mn) Without ONWJ(Estimated)

With ONWJ(Proforma)

Debt (Credit Suisse) 200 200

Debt (Mitsubishi/ Japex Kangean) 333 333

Debt (Owen Holding - ONWJ) - 117

Total Debt 533 650

Equity 658 658

EBITDA 83 169

Debt to Equity 0.8x 0.9x

Debt to EBITDA 6.4x 3.8x

ONWJ Acquisition Adds Value to ENRGs Financials

Improved Debt Repayment Capacity while maintaining manageable gearing position

14


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Energi Mega Persada

Indonesia in the World of Coal Bed Methane (CBM)

15

Indonesias CBM Potential (450 Trillion Cubic Feet) is World Class


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Energi Mega Persada

Key Indonesian CBM Basins

16

The key basins are in Sumatra (235 trillion cubic feet) and Kalimantan (180 trillion cubic feet)


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Energi Mega Persada

Resource and market is key

Bontangs expected gas shortfall is 1.7 billion cubic feet/day or US$8.4bn per year at LNG prices

East Kalimantan is a top 3 global CBM province andBontang means there is no market constraint

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Energi Mega Persada

Located just

north of Bontang

GIP potential

15 trillion cubic

feet, potential

recovery rates

30%

LNG prices for

gas now

US$14/mmbtu

vs ENRG average

US$2.5/mmbtu

ENRG/Bumi 60%

Pertamina 40%

Coal Bed Methane Prospects: (Sangatta-2 PSC CBM)

18


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Energi Mega Persada

Located on top of

Arutmin acreage

ENRG 70%

Bumi 30%

Coal Bed Methane Prospects: (Tabulako PSC CBM)

19


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EMP Malacca Strait

Blue

EMP Bentu & Korinci Baru

Blue

Safety, Health, and Environment Awards in 2011

Achievements in SHE, CSR, GCG

EMP Semberah

Green

EMP Gelam

Blue

CSR Award in 2011

Indonesian CSR Award 2011(Ministry of Social Welfare)

Malacca Strait PSC

Platinum Platinum

Gold

PROPER AwardCorporate Performance Rating Program in Environmental Management

(Ministry of Environment)


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Attachments


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Stable O&G Reserves Replacement(1)

Competitive Reserve Replacement Costs(2)

Asiapac Average: US$13.1

Source: Herold (Global Upstream Performance Review 2010), Moodys Investors Service.

(1) Addition has been calculated as the difference between production and the change in the reserve balance.

(2) 2007 to 2009 3-year average reserve replacement costs.

(3) Talismans Asian operations.

We continue assessing exploration acreages with a view to increase reserves

(3)

Strong Organic Reserve Replacement


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Energi Mega Persada

Reserves Table (in million barrels of oil equivalent)

23

Assets 1P 2P 3P 2C

Malacca Straits PSC

Oil 16 23 30 1

Gas 2 2 2 12

Kangean PSCOil 0.4 5 10 -

Gas 59 112 156 6

Bentu PSC

Oil - - - -

Gas 24 48 76 -

Korinci Baru PSC

Oil - - - -

Gas 1 10 15 -

Gelam TAC

Oil 1 3 42 -

Gas - - - 69

Semberah TAC

Oil 4 11 23 1

Gas 2 7 27 -

Gebang JOB PSC

Oil - - - -

Gas 2 3 13 7

Tonga PSC

Oil - - - 2

Gas - - - -

Masela PSCOil - - - -

Gas 163 308 549 -

ONWJ PSC

Oil 16 23 35 4

Gas 17 23 33 93

Total

Oil 38 64 140 4

Gas 268 513 871 93

Grand Total 306 577 1,011 97


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Energi Mega Persada

3.7

5.8

19.3

16.815.8

30.4

1.9

4.6

8.6

5.3

23.7

13.714.4

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

ENRG MEDC Santos PTTEP INPEX WOODSIDE SOCO Salamander

EV/1P Reserves

EV/2P Reserves

Competitive EV/ Reserves Value (As per 30 Sep 2011)

Source: Bloomberg, Annual Reports, Companys Presentations

(EV based on Sep 2011; Reserves based on Dec 2010)

USD/ Barrel

24


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Energi Mega Persada

The FPU Joko Tole arrived on Terang offshore site(Kangean PSC) on 6 April 2012


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Energi Mega Persada

The Floating Production UnitJoko Tole completed itsconstruction and left Sembawangshipyard (Singapore) at 7:50 am(Singapore time) on 30 March2012

The FPU arrived at the Kangean

PSC blocks Terang field at 2:00am (Indonesia time) on 6 April2012

The FPU tanker is expected tocommence first gas in late May/early June 2012

The Kangean PSC blocks

offshore Terang field is expectedto reach the peak production of300 Mn cubic feet gas/ day


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Energi Mega Persada

FPU JOKO TOLE, PROGRESS PICTURES - 11 Jan 2012


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Energi Mega Persada

FPU JOKO TOLE, PROGRESS PICTURES - 11 Jan 2012


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Gelam TAC Location Map

Energi Mega Persada

Stake : 100%

2P Reserves: 3.0 mmbbl


Operator: EMP

bcf = billion cubic feet

bbl/day = barrel oil/ day

mmcf/day = million cubic feet/ day


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Malacca Strait PSC Location Map

Energi Mega Persada

Stake : 60.5%



Operator: EMP

Partner: CNOOC (39.5%)


mmbbl = million barrels




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Semberah TAC Location Map

Energi Mega Persada

Stake : 100%



Operator: EMP






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Kangean PSC Location Map

Energi Mega Persada

(1) Effective interest.

Stake : 50%


2011 Prod: 1,360 bbl/day, 15.5 mmcf/day

Operator: KEI

Partners: Mitsubishi (25%)(1), Japex (25%)(1)bcf = billion cubic feet





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Gebang JOB PSC Location Map

Energi Mega Persada

Stake: 50%



Operator: JOB Pertamina Costa

Partner: Pertamina (50%)


bbl/day = barrel oil/ day



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Bentu & Korinci PSC Location Map

Stake : 100%



Operator: EMP

Stake : 100%



Operator: EMP



Documents

ENRG 2011 Results