Hibiscus Petroleum Berhad Building Greater Valueir.chartnexus.com/hibiscuspetroleum/download/pdf/media/news/HPB… · B. GENERAL PRESENTATION ON HIBISCUS PETROLEUM GROUP - CURRENT

1 Private & Confidential Creating Value Through Our Knowledge And Experience

Hibiscus Petroleum Berhad Building Greater Value Company Presentation 5 September 2012


Market Data Summary

US$ 218 mil

Market: Main Market of Bursa Malaysia Securities Sector Category: Industrial Products Stock Code: 5199 HIBISCS Market Capitalization (5 September 2012) Shares: 438 248 422 units x RM 1.66 = RM 718.7 mil Warrants – A (Traded): 314 236 022 units x RM 1.08 = RM 339.4 mil Warrants – B (Untraded) 83 611 200 units x RM 1.08 = RM 90.3 mil

Website: www.hibiscuspetroleum.com

Hibiscus Petroleum is South-East Asia’s 1st SPAC and Malaysia’s 1st listed, independent oil and gas exploration and production (E & P) player.

http://www.hibiscuspetroleum.com/


Agenda

A. COMPANY GROWTH AND STRATEGY GOING FORWARD

1. Business Approach

B. GENERAL PRESENTATION ON HIBISCUS PETROLEUM GROUP - CURRENT

1. Introduction to Hibiscus Petroleum Berhad

2. Qualifying Acquisition Transaction

3. 3D Oil Transaction


Agenda








Business Approach & Investment Focus Going Forward

LicenseAward

Seismic + other surveys

Drilling

Prospective resources

Discovery

Dry well

POD

Contingentresources

Cost overrundelays?

Firstoil

Increased recovery?

Overstated reserves?

Production

Reserves$/boe, risked

Time

Exploration Appraisal and define development

ProductionDevelopment Decommissioning

Prospective

Resources Contingent

Resources

Reserves

Discovery

Seismic and

Other Surveys

Dry Well

Drilling Plan of Development License

Award

Production First

Oil

Cost

overrun

delays

Overstated

reserves

Increased recovery

Time

$/ boe, Risked

Qualifying Acquisition • High Impact Advanced

Exploration to Build Value

Lime Transaction

Ris

k P

rofi

le

Time

IP

O -

SPA

C

High

Low

July 2011 Oct 2011 April 2012 Q2 / 2013

Development Assets • Proven Resources to

Build Balance Sheet Resilience and Mitigate Risk Production Assets

• Cashflow for Profitability and Sustainability

Plan for Success Strategy for Exploration Assets


Hibiscus Petroleum: Company & Strategy Evolution

Development / Production Focus

• Portfolio Balancing

Opportunistic Exploration • Based on Rex Technologies • Packaged with Development

or Production

Orient Hibiscus / Oceania Hibiscus

• Asia Pacific / Oceania

Hibiscus Oilfield

Services

Project Manager

Early Production A Key Driver

Hibiscus Petroleum Berhad

Exploration Focus • Based on Rex Technologies

Lime Petroleum • Middle East / North

Africa / Europe

Qualifying Acquisition


Agenda








Hibiscus Petroleum: Our First 14 Months

Date Major Events

25 July 2011

Listed on the Main Market of the Malaysian Stock Exchange under Special Purpose Acquisition Company (SPAC) listing rules - South-East Asia’s 1st SPAC and Malaysia’s 1st listed, independent oil and gas exploration and production (E & P) player.

25 Oct 2011

Lime QA signed.

12 Apr 2012

Lime awarded onshore block in RAK.

18 Apr 2012

Lime QA completed.

4 May 2012

Norwegian blocks added to Lime portfolio

14 Aug 2012

3D Oil transaction announced

Value creation based on exploration-based opportunities

Mkt Cap: US$ 218 mil 5 Sept 2012

Additional Concessions in Norway and RAK

Shareholders Approve Lime

Deal

SC Approve

Lime Deal

Lime Transaction

3D Oil and VIC/P57

Transaction

-100%

-50%

0%

50%

100%

150%

200%

250%

300%

350%

400%

Brent (%) KLSE (%) Mother Share + Warrant (%) Mother Share (%)


Hibiscus’ Promise

Creating Value Through Our Knowledge And Experience


Capital Structure & Shareholder Profile

Total shares :

418,047,922

Total warrants :

418,047,722*

Exercise price of warrants of 50 sen Expiry date : July 2014

• Non-Independent Directors and Management hold largest block (20%)

• Diversified shareholder base: largest shareholders holds less than 10%

• Most large shareholders are involved in or familiar with the oil and gas industry.

• Several substantial IPO shareholders have increased equity position.

Sources of Funds at IPO: July 2011

Shareholder % Shares IPO / Current

Shareholder Profile

1 20.00% / 19.08%

Management Team

2 9.57% / 9.13% Shareholder in public listed oilfield services provider

3 0.48% / 8.88%

Investor in technology companies

4 6.46% / 6.08% Shareholder in public listed oilfield services provider

5 6.38% / 6.38% Shareholder in privately owned oilfield services provider



Shareholding Structure: Aug 2012


Current Capital Structure On 5 Sept 2012

Total Number of Warrants

Funds Received / To Be Received From The

Exercise of Warrants RM’000

Total Warrants – A exercised as at 29 May 2012 20,200,500 10,100

Balance of Warrants-A yet to be exercised 314,236,022 157,118

Warrants – B yet to be exercised 83,611,200 8,361

Total 418,047,722 175,579

As of 5 Sept 2012 Total number of shares in issue: 438,248,422


Board Members …. 1

Zainul Rahim bin Mohd Zain (Malaysian) Qualifications:: B.Sc. in Engineering (Mechanical), University of Western Australia. Experience: More than 30 years’ experience in the oil and gas exploration and production industry. Currently: Board member of Petronas Carigali Sdn Bhd and Petronas Carigali Overseas Sdn Bhd. Previously: Deputy Chairman of Shell Malaysia and Chairman and Managing Director of Shell Companies in Egypt.

Dr. Kenneth Pereira (Malaysian) Qualifications: B.Sc. (Hons) in Engineering, Bath University, United Kingdom, Masters in Business Administration, Cranfield University, United Kingdom and Doctorate in Business Administration, University of South Australia. Experience: 22 years’ experience in the oil and gas industry (both services and exploration and production). Worked for Schlumberger (9 years as a Field Engineer in North Africa and Europe), SapuraCrest Petroleum Berhad (from founding of the company as Sapura Energy in 1997 until 2008) as Chief Operating Officer. In 2009, became Managing Director of Interlink Petroleum Ltd, an oil and gas exploration & production company listed on the Mumbai Stock Exchange (2009 to 2011)

Zainol Izzet bin Mohamed Ishak (Malaysian) Qualifications: B.A. in Actuarial Studies, Macquarie University, Sydney, Australia and Masters in Business Administration, Cranfield University, United Kingdom. Experience: Previously: Sapura Holdings in various position, Sapura Digital Sdn Bhd and SapuraCrest Petroleum Berhad (from founding of the company as Sapura Energy in 1997 to 2010) as Chief Executive Officer. Currently: Managing Director of Perisai Petroleum Teknologi Behad (oil & gas services company quoted on Bursa Malaysia).

Chairman

(Non-Executive)

Managing Director

Independent

(Non-Executive)

Director



Independent

(Non-Executive)

Director

Roushan Arumugam (Malaysian) Qualifications: M.A. in English Language and Literature, St. Catherine’s College, Oxford University, Masters in Business Administration from Imperial College Business School and M.A. in Legal Studies, University of Bristol, (all in the United Kingdom). Experience: Previously: Consultant at Price Waterhouse, London, Analyst with Caspian Securities Ltd, Investment Banker at Deutsche Bank, London and Nomura Advisory Services, Malaysia. Currently: Director of various companies, notably, Sri Inderajaya Holdings Sdn Bhd, Makhota Technologies Sdn Bhd, Pneumacare Ltd and South Pickenham Estate Company Ltd.

Independent

(Non-Executive)

Director &

Audit Committee

Chairperson

Datin Sunita Rajakumar (Malaysian) Qualifications: LLB (Hons), University of Bristol, United Kingdom, Chartered Accountant (Institute of Chartered Accountants, England & Wales) Experience: Previously: Ernst & Young and RHB Sakura Merchant Bankers Berhad, Currently: Independent Director and Audit Committee Chairman of Hai-O Enterprise and Director of Artisan Encipta Ltd (Venture Manager and Consultant on national innovation ecosystems).

Non-Executive

Director

Dr. Rabi Bastia Padmashree (Indian) Qualifications: D.Sc. in Petroleum Geology (joint award by ISM Dhanbad (India), Alberta University (Canada) & Oklahoma University (USA)), Ph.D. in Petroleum / Structural Geology (joint award by Indian Institute of Technology and the Royal Geological Society (U.K.)), B.Sc. in Petroleum Exploration and Reservoir Management (NTU, Norway) and Bachelor of Science in Applied Geology (Indian Institute of Technology). Experience: 32 years oil and gas Exploration & Production experience. Previously: With Oil and Natural Gas Corporation of India in various positions and one of the founders of the Reliance oil and gas E & P business. Currently: Head of Exploration Management of Reliance Industries Ltd, the largest Indian Independent Oil Company.



Independent

(Non-Executive)

Director

Tay Chin Kwang (Singaporean) Qualifications: Bachelor of Accountancy from the National University of Singapore. Certified Public Accountant and fellow member of the Institute of Certified Public Accountants of Singapore. Experience: Over 22 years of experience in various accounting, finance management and business advisory functions across a broad spectrum of industries. Previously: Ernst & Young in Singapore. Currently: Finance Director of Ezra Holdings Limited, and serves as director of various companies in countries such as Singapore, Thailand, Norway and Nigeria.


Key Management …. 1

Chief Financial

Officer

Joyce Vasudevan (Malaysian) Qualifications: B. Economics . (La Trobe University, Australia) and Certified Practicing Accountant (Australia). Experience: More than 20 years finance and operations experience. Previously: Ernst & Young, RHB Sakura Merchant Bankers Berhad, Carlsberg Brewery Malaysia (Head of Business Analysis and Planning) and SapuraCrest Petroleum Berhad (Head of Strategic & Operations Planning) . Expertise: Corporate finance, audit, controls, business and operations planning, strategy development and implementation.

Head of Petroleum

Engineering

Dr. Pascal Hos (Dutch) Qualifications: Ph.D. in Mechanical Engineering and B.Sc. in Mechanical Engineering (both from Rice University, Houston, USA). Experience: Previous positions at Schlumberger (USA), NASA (Johnson Space Center, USA), Shell International (Netherlands) and Sarawak Shell (Malaysia). Expertise: Reservoir engineering and secondary recovery techniques.

Head of New

Ventures

Ir. Mohd Iwan Jefry Abdul Majid (Malaysian) Qualifications: B.Sc. in Petroleum Engineering, Pennsylvania State University, USA, M.Sc. in Petroleum Engineering (imperial College, London, United Kingdom). Experience: 19 years’ experience in the oil and gas industry (both services and Exploration & Production) Previously: With Petronas Carigali and Talisman (1992 – 2002), with Petroleum Development Oman (Shell JV : 2002 – 2005) and Schlumberger (2005 – 2009). Expertise: Petroleum sub-surface geology, petroleum economics and reservoir engineering .



Head

Geoscientist

David Richards (Malaysian) Qualifications: B.Sc. (Hons) in Earth Science (UKM, Malaysia). Experience: 22 years of subsurface E & P experience. Previously: Geologist with Sun Oil, ExxonMobil, Carigali-Hess Operating Company and Newfield Malaysia. Expertise: Exploration, development and operations geology, planning, budget and economics co-ordination, mature field assessment and geo-modeling.

Head of

Projects

Christopher Dyas (British) Qualifications: M.Sc. in Thermal Power and M.B.A. (both from Cranfield University, United Kingdom). Experience: 28 years oil and gas experience in E&P engineering and projects. Previous employers include Marathon Oil , Cooper Energy Services , Atlantic Power and Gas and Wood Group (all in the UK) followed by Wood Group and SapuraCrest Petroleum Berhad (based in Malaysia) Expertise: Contracting, international projects management and business development.

Drilling

Operations

Manager

Elike Mawuli (Australian) Qualifications: B.Eng. and Masters in Engineering Management (both from Queensland University of Technology, Australia). Experience: 10 years oil and gas well drilling field experience with Santos Oil , Interoil Corporation, OilSearch Ltd, Eni Australia and Talisman Energy. Expertise: Onshore and offshore well planning, well drilling, contracting and cost management



General Manager,

Corporate Finance

Azleen Rosemy Ahmad (Malaysian) Qualifications: B.Sc. in Actuarial Science and Finance (Wharton Business School, University of Pennsylvania, USA) and Masters in Business Administration (University of Nottingham, United Kingdom). Experience: 20 years experience in financial consulting, corporate finance, finance and operations. Previously : Price WaterhouseCoopers, RHB Sakura Merchant Bankers Berhad, SapuraCrest Petroleum Berhad Expertise: Corporate finance, merger & acquisition, reorganisation, monitoring & evaluation


Agenda








Qualifying Acquisition Transaction

• On 25 October 2011, Hibiscus Petroleum Berhad announced that its wholly owned subsidiaries Gulf Hibiscus Ltd and Hibiscus Oilfield Services Ltd had signed several agreements on 24 October with the shareholders of Lime Petroleum PLC.

• These transactions constituted a Qualifying Acquisition (QA) for the company.

• Completion of a QA converts Hibiscus Petroleum from a SPAC to an operating, main market PLC. Completion took place on 18 April 2012.


• Investment is for:

a 35 % equity stake in Lime Petroleum (IoM) Ltd. • Assets are in Oman, RAK,

Sharjah and (prior to completion) Fujairah or equivalent

• Assets selection are based on Rex technology and are in an exploration stage

• Comes with a management contract to run the activities

• License enabling access to certain proprietary technologies for 5 years in the Middle East area

• Additional assets secured by Rex in Middle East area to be injected into Lime Petroleum at no additional costs

Initial Concessions

Ras Al-Khaimah

Oman

Sharjah

Technology License

Rex Gravity©

Rex Seepage©

Rex Virtual Drilling©

Funds

US$ 30 (+7) mil in various companies within the group

Additional Concessions

Deal At The Time Of Signing


Deal Evolution

Signing Deal Package

Lime QA Transaction

Announcement

25 October 2011

• 3 Concessions in Middle East • Oman Block 50 (74 -> 35 %) • RAK North Offshore (59 %) • Sharjah (100 %)

• Rex Technology for 15 Countries in Middle East • Project Management Contract to Hibiscus • Total Consideration: US$ 55 mil for 35 % • US$ 5 mil Discovery Bonus

Approvals & Conditions Precedent

Fulfillment

Securities Commission

Approval 16 February

2012

Shareholders EGM

Approval 21 March

2012

Completion Deal Package

• Additional Concession in Middle East • RAK Onshore (100 %)

• Letter of Intent for 4 Additional Concessions in Norway

• PL 503 (12.5 %) • PL 518 (15 %) • PL 526 (20 %) • PL 530 (10 %)

• Use of Rex Technology for Norway Concessions • No Change in Purchase Consideration

Deal Closing

18 April

2012

On 2 May 2012, Norway LOI translated to Definitive Agreements. On 28 May 2012, Lime’s stake in Masirah Oil was finalized at 64 %.


Lime: Legal Structure

100.0 %

59 % Rex Oil & Gas Ltd

Schroder & Co

Banque S.A.

Gulf Hibiscus

Ltd

Lime Petroleum Ltd

Dahan Petroleum

Ltd

Masirah Oil Ltd

Zubara Petroleum

Ltd 56.40 % 35.0 %

100 %

64 %

100.0 %

Lime Petroleum PLC

8.60 %

RAK

Offshore

Sharjah

Offshore

Oman

Block 50

Hibiscus Oilfield Services

Ltd

Hibiscus Petroleum Berhad

Lime Norway Ltd * 12.5% 15 % 20 % 10 %

PL 503

PL 526

PL 530

PL 518 * Currently being established

Exposure to 8 concessions in the Middle East and Europe

Baqal Petroleum

Ltd

100 % RAK

Onshore

Lime Group:

Listable as

Pure Exploration

Company

100 %

Subject to completion


Lime: Middle East Exploration Portfolio

RAK OFFSHORE RAK

ONSHORE

SHARJAH OFFSHORE

OMAN BLOCK - 50 RAK OFFSHORE

Dahan Petroleum Right Ally – 16 % Schroder – 25 % Lime – 59 %

SHARJAH OFFSHORE Zubara Petroleum Lime – 100 %

OMAN BLOCK 50 Masirah Oil Lime – 64 % Petroci – 26 %

RAK ONSHORE Baqal Petroleum Lime – 100 %


PL 526 Vågar/Karl

PL 503 Valberget

PL 518 Zapffe

PL 530 Heilo

PL 518 Dong – 40% (OP) North Energy – 15% Sagex – 10% Discover -20 % Lime – 15 %

PL 503 Lotos EP – 25% (OP) Edison -25% North Energy – 12% Skagen – 25% Lime – 13 %

PL 530 GDF – 40% (OP) North Energy – 10% Discover -20% Rocksource – 20% Lime – 10 %

PL 526 North Energy – 20% (OP) Noreco – 20% Dana -20% E.ON Ruhrgas – 20% Lime – 20 %

Lime: Norway Exploration Portfolio


Lime Group: Estimated Resources

Net Unrisked Best Estimate Recoverable Resources

(mmboe)

Net Risked Best Estimate Recoverable Resources

(mmboe)

RAK North Concession 60.9 13.4

Sharjah Concession 426.0 55.0

Block 50 Concession 1,420.0 248.0

RAK Onshore Concession TBA TBA Total (Excludes RAK Onshore) 1,907.8 315.6

Net Unrisked Best Estimate Recoverable Resources

(mmboe)

Net Risked Best Estimate Recoverable Resources

(mmboe)

PL 503 123 16.5 – 58.9 PL 518 17.6 1.2 – 4.3

PL 526 75.4 7.1 – 27.7 PL 530 10.1 3.2 – 7.1

Total 226.1 28.0 – 98.0

Middle East Source: Aker Geo

Norway Source: Company Internal Estimates

Note: Middle East estimates are post 28 May 2012 Masirah Oil Revised Agreements. Previous Agreements reduce Block 50 Net Risked Best Estimate Recoverable Resources to 156 mmboe.


Rex Proprietary Technologies

Rex Oil & Gas, major shareholders of Lime Petroleum PLC, has developed three new unique technologies which seeks to reduce the: early risks associated with discovery of oil and gas (and its commercial impact) time to commercialize viable fields The technologies are: Rex Gravity© - to detect possible hydrocarbon accumulations through use of satellite

information. Rex Seepage© - to verify hydrocarbon presence through the use of satellite information. Rex Virtual Drilling© - to verify content of accumulation (fluid identification) through a

complex seismic evaluation scheme based on resonance. This tool reduces the chance of commercial failure when drilling a well.

Lime Petroleum has 3 years exclusive access to these proprietary state-of the art technologies for the assessment and selection of oil and gas blocks located in the Middle East region Other areas are on a project basis


Technology License: Geographical Coverage

• 15 countries covering the most prolific petroleum basins which contain more than half of global proven oil reserves for a minimum of 3 years:

+ Bahrain + Egypt + Iran + Iraq + Jordan + Kuwait + Lebanon + Oman + Palestine (Gaza Strip and West Bank) + Qatar + Saudi Arabia + Syria + Turkey + United Arab Emirates + Yemen

• Offshore areas associated with above countries • Norway on a project basis


Benefits of Rex Technologies

Relative Cost

Activity Time (mths)

Low Secure Concession 12 – 18

Moderate High

Exploration Commitment • 2D / 3D Seismic • Drilling

36 – 60

Moderate High

Optional Appraisal • 2D / 3D Seismic • Drilling

24 – 36

Relinquish or Final Investment Decision

High Develop & Produce

Relative Cost

Activity Time (mths)

Rex Technology

Low Secure Concession 9-12 • Gravity • Seepage

Low Moderate

Exploration Commitment • 2D Seismic • 3D Seismic (optional)

12-24 • Virtual Drilling

Drill or Relinquish Decision

Moderate High

Appraisal & Early Production • 3D Seismic • Drilling

24 • Virtual Drilling

Relinquish or Final Investment Decision

High Develop & Produce

Conventional Work Program Rex / Lime Work Program

Rex proprietary technologies allow an early, informed decision to be made when investment levels are still moderate

Hibiscus Entry


Merits Of The Lime Transaction…..1

Large acreage position in known petroleum provinces which are diversified from geopolitical and geophysical standpoints. Middle East Norway

Large position of net resources with more upside.

US$ 50 mil of the purchase consideration will be infused into Lime for the conduct of

operations. Targeting mega findings in Oman and Sharjah, medium-sized discoveries in Norway and

low risk exploration targets in Ras Al – Khaimah (offshore). No drilling commitment under any of the EPSAs. Access to Rex technology for Middle East region and Norway on a project basis. Lime Group has no debt and approximately US$ 80 mil in cash for execution of work

program.


Merits Of The Lime Transaction …..2

Opportunity to learn and work with established operators. North Energy (Norwegian), Dong (Denmark), Gaz de France (France), Lotos(Polish)

Due to the Norwegian tax regime Lime`s exploration expenses will be competitive going

forward as 78% of the costs are reimbursed by the Norwegian State.

Possibility to participate in several high-impact wells at low comparable cost. Effectively operator in all concessions in the Middle East – opportunity to build Hibiscus

Probability of more concessions to be included.

Opportunity to list Lime independently so future fund raising will not dilute Hibiscus

shareholders.

Geographical focus with opportunity diversity reduces risk of failure.

Rex technology applied on all concessions with positive results.


Lime Group: Fully Funded Work Program

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Seismic

Acquisition

Reprocessing of existing data

Processing, Interpretation & VD

Drilling

Well Engineering

Drilling & Testing 3 wells Opt Well

Seismic

Acquisition


Drilling

Well Engineering

Drilling & Testing 1 well

Seismic

Acquisition

Processing, Interpretation & VD Drill or Drop

Drilling

Well Engineering


Seismic

Acquisition

Processing, Interpretation & VDPL 526 Drill or Drop Well

PL 503 Drill or Drop Well

PL 518 Drill or Drop Well

Pl 530 Drill or Drop Well

Well

2012 2013

Well Well

No

rwa

yO

ma

n B

lock

50

RA

K O

ffsh

ore

Sh

arj

ah

Ea

st C

oa

st

Off

sho

re

RA

K

On

sho

re

VD

VD

VD

VD

Seismic

Acquisition

Reprocessing of existing data


Drilling

Well Engineering

Drilling & Testing 3 wells

Seismic

Acquisition


Drilling

Well Engineering


Seismic

Acquisition


Drilling

Well Engineering


Seismic

Acquisition


PL 526

PL 503

PL 518

PL 530


Agenda








3D Oil Transaction

On 14 August 2012, Hibiscus Petroleum and 3D Oil , an ASX Independent E&P company, entered into a conditional Subscription Agreement for 30,963,000 new, fully paid ordinary shares in the capital of 3D Oil representing approximately 13.04% of the enlarged total issued share capital of 3D Oil for a subscription amount of AUD2,043,558. On the same day, Hibiscus Petroleum (through wholly – owned subsidiaries Oceania Hibiscus Sdn Bhd and Carnarvon Hibiscus Pty Ltd) and 3D Oil, also entered into a conditional farm-in agreement for the acquisition of a 50.1% interest in VIC/P57 (a permit located in the Gippsland Basin of Australia’s Bass Strait) for a purchase consideration of AUD13,473,000 and a contribution of AUD13,527,000 towards the joint operating activities .


Summary of the Proposed Transaction

Hibiscus Petroleum Berhad (Hibiscus)

Oceania Hibiscus Sdn Bhd (OHSB)

Carnarvon Hibiscus Pty Ltd (Operator) 3D Oil Ltd (ASX Listed)

Direct Investment in VIC/P57

[Unincorporated JV]

AUD 27 MM – Farm-in Agreement for a 50.1 % stake in

VIC/P57

AUD 2 MM – Subscription Agreement for placement of

new shares in PLC

100%

13% 100%

49.9% 50.1%

Regulated by a Joint Operating Agreement to be entered into by both parties

Malaysia Australia

• As part of its portfolio balancing strategy, Hibiscus Petroleum, through Oceania Hibiscus and Carnarvon Hibiscus is proposing to: o subscribe 14.99% of the current share capital i.e. 30,963,000 shares at approximately AUD0.065 per share (based on 30-day

VWAMP from the date of the Subscription Agreement). This will result in an equity interest of 13% of the enlarged share capital, for approximately AUD2 million o acquire a 50.1% farm-in interest in VIC/P57 for AUD13.5 million and an additional contribution to project expenditure of AUD 13.5

MM (collectively referred to as the “Proposed Transaction”).

o Total Hibiscus Petroleum commitment is AUD 29 MM


Introduction to 3D Oil Limited

• Incorporated in July 2003 in Australia. Listed on the ASX on 22 May 2007 (raised AUD 44 million).

• Principal continuing activities : Exploration and development of upstream oil and gas assets.

• Owns an undeveloped proven oil field and exploration interests in the Gippsland Basin, South East Australia. Acquired 100% interest in VIC/P57 in 2004.

o VIC/P57 covers a 483 km2 located on the Northern Margin of the Gippsland Basin. o Granted renewal of VIC/-57 for a 5-year term in August 2011. o Tested by four wells, one of which resulted in the West Seahorse oil discovery. o Only one of these wells has been drilled within the last 25 years.

• Capital Structure (as at 30 September 2011): Issued shares: 206,560,000 Current share price: AUD0.065 Current Market Cap is AUD13 mm (RM43 mm) as of 8 August 2012.


• Australia’s most prolific oil & gas basin, close to major existing infrastructure, including established oil & gas refineries

• Operations are made up of 18 platforms and several subsea tiebacks

• Over 30 fields including 3D Oil’s West Seahorse field make up the Bass Strait grouping

• Oil production peaked in 1985 from initial production in 1970 and has been in decline since

• Gas production increases in importance

Australia : Gippsland Basin Background

VIC/P57

VIC/P57


Background Information on VIC/P57

• The VIC/P57 Exploration License is located in the northwest of the Gippsland Basin with the northern boundary some 10 kms offshore of the south-east Victorian coast and infrastructure.

• The key assets within the permit are the (proven) West Seahorse Field, and two Exploration Prospects, Sea Lion and Felix .

• West Seahorse is a small offshore oilfield estimated at 7.3 MMbbls EUR (GCA 9.2 MMbbls EUR) of light oil. It was discovered in 1981 and lies approximately 10-14 km from the coast and in 35m of water.

• Sea Lion is a robust Exploration Prospect on trend with similar reservoir and depths, close to West Seahorse and some 4 km from shore.

• Felix is a less robust Exploration Prospect. The reservoirs are deeper (at some 2500mss), the structure is more subtle.

• Additional Exploration Leads have also been identified within the acreage and may mature into drill targets with additional work

– Salsa, Kangafish, Dexter, Lucifer, Flinders

West Seahorse Field • Estimate of 7.3 MMbbls was done by Hibiscus • Certification of 9.2 MMbbls was

done by Gaffney Cline and Associates (engaged by 3D Oil)


Merits of the Proposed Transaction … 1

Proposed Subscription Favourable terms as Hibiscus Petroleum was able to negotiate a payment in exchange for 3D Oil Shares, instead of the generally accepted practice of a deposit upon execution of an acquisition agreement as a commitment fee

Capitalise on the potential upside of shares in 3D Oil which are currently undervalued (AUD 0.066), being

significantly lower than its latest net asset per share of AUD 0.14 as at 30 June 2011.

Proposed Farm-In In line with the portfolio balancing strategy of Hibiscus Petroleum Group of investing in development and / or

producing assets P50 Resources of 7.3 MMbbls (P50 Contingent 5.5 MMbbls) with significant exploration upside especially for the Sea Lion Prospect Acquisition of a controlling interest in the VIC/P57 (50.1%) with role of Operator (subject to approval of relevant authorities)

Access to subsurface staff with expert knowledge on the Gippsland Basin


Utilisation of Farm-In Sum (AUD 27 MM) for initial work programme including drilling of up to 2 production

wells within the West Seahorse Prospect. As the West Seahorse prospect is a discovered asset with proven reserves, drilling activities under the initial work programme may be partially funded by bank borrowings.

Favourable terms for recovery of Farm-In Consideration i.e. Hibiscus Petroleum is to receive 74.9% of petroleum produced until the Farm-In Consideration is fully settled. After full settlement, distribution of petroleum produced in proportion to the parties’ participating interest (Hibiscus Petroleum (through CHPL) : 50.1%, 3D Oil : 49.9%). Such preferential recovery terms not only accelerates the repayment of the Group’s Farm-In Investment, but this also means that such investment is essentially an advance to the project as it is to be repaid in preference, and over and above CHPL’s participating share of 50.1%.

Further geopolitical diversification of assets.



S

Qualifying Acquisition • High Impact Advanced

Exploration to Build Value

Lime Transaction

Ris

k P

rofi

le

Time

IP

O -

SPA

C

High

Low

July 2011 Oct 2011 April 2012 Q2 / 2013

Development Assets • Proven Resources to

Build Balance Sheet Resilience and Mitigate Risk

Production Assets • Cashflow for

Profitability and Sustainability

Plan for Success Strategy for Exploration Assets

Lime Assets VIC/P57


Strategy fit


Thank You

Documents

Hibiscus Petroleum Berhad Building Greater Valueir.chartnexus.com/hibiscuspetroleum/download/pdf/media/news/HPB… · B. GENERAL PRESENTATION ON HIBISCUS PETROLEUM GROUP - CURRENT