POSITIONING FOR GROWTH - listed companyrhpetrogas.listedcompany.com/misc/slides_010914.pdf · POSITIONING FOR GROWTH ... (CNPC, Pertamina, PetroChina, Petronas) Overview Market Statistics

POSITIONING FOR GROWTH We aspire to be a leading upstream oil and gas company in the Asia Pacific region

RH Petrogas Limited

Corporate Presentation

September 2014

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Disclaimer

The information set out in this presentation has been produced by RH Petrogas Limited as of 1 September 2014. This presentation and the information contained herein does not constitute an offer to sell or an invitation to purchase any securities in, or any underlying assets of RH Petrogas Ltd, nor is it intended to form any part of any investment decision.

For the avoidance of doubt, RH Petrogas Ltd, including its subsidiaries, associated companies, and their respective directors, employees, or advisers makes no express or implied representation or warranty and no responsibility or liability is accepted by any of them with respect to the accuracy or completeness of the information set forth in this presentation. Nothing contained herein is, or shall be relied upon as, a promise or a representation regarding the historic or current position or performance, or any future events or performance of RH Petrogas Ltd. Parties should make their own assessment, undertake such investigations as they see fit and obtain their own independent legal or other advice thereon.

This presentation may include certain forward-looking statements. All statements, other than statements of historical facts, that address activities, events or developments that RH Petrogas Ltd expects or anticipates will or may occur in the future are forward-looking statements. RH Petrogas Ltd’s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to price fluctuations, actual demand, exchange rate fluctuations, market shares, competition, environmental risks, changes in legal, financial and regulatory frameworks, international economic and financial market conditions, political risks, project delay, project approval, cost estimates and other risks and factors beyond the control of RH Petrogas Ltd. In addition, RH Petrogas Ltd makes the forward-looking statements referred to in this presentation as of today and undertakes no obligation to update these statements.

This presentation was prepared exclusively for the parties presently being invited for the purposes of discussion. Neither this presentation nor any of its content may be used without the prior written consent of RH Petrogas Ltd. This presentation contains proprietary and confidential information regarding RH Petrogas Ltd.

All rights reserved. No contents can be reproduced without prior written consent of RH Petrogas Ltd. 2


Investment Thesis


1) Balanced and diversified portfolio with exposure to the full E&P value chain

2) Near term development potential within current portfolio

3) Actively exploring value accretive acquisition opportunities

4) Committed management and senior executives with extensive industry experience

5) Strong support from major shareholder with extensive network

6) Established industry relationships and partnerships with major national oil companies (CNPC, Pertamina, PetroChina, Petronas)


Overview

Market

Statistics

Operational

Highlights

• 5 assets , located in China (1), Indonesia (3) and Malaysia (1)

• Net 2P reserves (1/1/2014): 11.9 MMBOE (78% oil, 22% gas)

• Net 2C resources (1/1/2014): 70 MMBOE (70% oil, 30% gas)

Asset

Summary

• Listed on SGX Mainboard

• Balanced and diversified portfolio of assets

• Strong organic growth potential

• Focus on high quality, low to medium risk conventional oil and gas assets

Investment

Highlights

4 All rights reserved. No contents can be reproduced without prior written consent of RH Petrogas Ltd.

29 Aug 2014 Share Price, S Cents Share Outstanding, MM Market Capitalization, S$ MM Enterprise Value, S$ MM (US$1= S$1.25)

734 620 639

84.5

Sales Revenue, US$ MM

EBITDAX, US$ MM

Average Net Production, BOEPD

Reserve Replacement

4,300

38.9

14.0

- 160%

28.9

86.4

1H2014 4,100

FY2013


Business Strategy


Commit to Sustainability

& CSR

Strengthen Operatorship

Attract and Retain Staff


Our Track Record


Demonstrated M&A capabilities with strong portfolio growth

Established partnerships with major national oil companies

Operatorship with good execution and safety record

Proactive capital management to optimize capital structure for growth

Jun 14 Commenced 2D seismic acquisition in SK331 PSC

Apr 14 Announced sale of 49% stake in RHP(Mukah), operator of SK331 PSC

Jan 14 Koi-2 successful appraisal

Oct 13 Completed placement of 116MM new shares

Aug 13 Completed acquisition of 12,414 line KM of FTG survey data in SK331 PSC

Mar 13 Oil discovery in South East Walio, Basin PSC

Dec 12 Signed SK331 PSC with Petronas Malaysia

Aug 12 Received ODP (“Overall Development Plan”) approval from CNPC

Aug 12 Converted US$61.5MM shareholder loan into equity

Oct 11 Gas & condensate discovery in North Klalin, Basin PSC

Dec 10 Completed acquisition of Basin PSC and Island PSC, Indonesia

Jun 10 Acquired Orchard Energy Pte Ltd, which holds the West Belida PSC, Indonesia from Temasek

Nov 09 Renamed as RH Petrogas Ltd to reflect transformation into oil and gas business

Aug 09 Acquired Kingworld Resources Ltd (“KRL”), operator of Fuyu-1 PSC, China

1993 Listed on SGX as Tri-M Technologies (S) Ltd


Balanced and Diversified Portfolio


China FUYU-1 PSC

W.I 100%*

Area 255 km2

Operator RHP

Expiry By 2038

Jilin, China

Malaysia SK 331 PSC

W.I 80% *

Area 11,600 km2

Operator RHP

Expiry 2039

Sarawak, Malaysia

W.I- working interest

* RHP disposed 49% of its interest in RHP(Mukah), operator of SK331 PSC in April 2014, currently pending completion of the sales

Indonesia West Belida PSC

W.I 94%

Area 1,046 km2

Operator RHP

Expiry 2039

Sumatra, Indonesia

Indonesia Basin PSC

W.I 60%

Area 872 km2

Operator PetroChina

Expiry 2020

Indonesia Island PSC

W.I 33%

Area 1,097 km2

Operator PetroChina and Pertamina

Expiry 2020

Asset Country Exploration Develoment Production

Basin Indonesia √ √ √

Island Indonesia √ √ √

Fuyu-1 China √ √

West Belida Indonesia √

SK331 Malaysia √

Portfolio of assets: • across full E&P life cycle • across multiple regulatory and

fiscal regimes

West Papua, Indonesia

*CNPC to back in at 51% once production commences


Reserve and Resource Overview


Asset Net 2P

(MMBOE) Net 2C

(MMBOE)

Basin(1) 10.3 13.7

Island(1) 1.6 21.9

Fuyu-1 - 34.1(2)

West Belida(3)

- -

SK331(3) - -

Total 11.9 69.7

(1) Net 2P and Net 2C as at 1 January 2014 were certified by independent qualified person

(2) 7.1MMBOE of Net 2C to be converted into 2P upon obtaining ODP approval

(3) Currently at exploration stage; active exploration work ongoing

As at 1 January 2014

Source: Thomson Reuters

• 160%* reserve replacement in 2013 • Portfolio highly skewed towards oil • Good upside potential for reserve growth • Focus on reserve replacement and growth

11%

60%

3%

26%

2P+2C (71% Oil, 29% Gas)

2P- Oil

2C- Oil

2P- Gas

2C- Gas

81.6 MMBOE

0

30

60

90

120

150

2001 2003 2005 2007 2009 2011 2013

Europe Brent Spot Price FOB US$/bbl

* Defined as (Ending Reserve- Beginning Reserve)/Production for the year


Executing Our Strategy in 2014


•Basin PSC, Indonesia

•Plan of development (“POD”) preparation on-going for the two new discoveries (Southeast Walio and North Klalin)

•Continue to seek opportunities for in-fill and exploration drillings to extend reserves and production

•Active development programme in place to add onto existing production

•Island PSC, Indonesia

•Pre-FEED studies of Koi and TBC field development on-going

•Continue to review and seek opportunities to monetize contingent gas resources

Producing Asset

•Fuyu-1 PSC, China

•Continue to work with CNPC to secure NDRC’s approval of ODP

•Procurement of long lead items on-going in preparation of field development

•Crude sales agreement has been signed

•Continue to explore deep gas potential

Development Asset

•SK331 PSC, Malaysia

•FTG conducted in 2013 shows the prolific Balingian Basin extends into the PSC acreage

•Seismic acquisition commenced in June 2014 and to be followed by drilling one exploration well in 2015

•Partial disposal of 49% stake in RHP (Mukah) as part of the Group’s risk and cost mitigation strategy

•West Belida PSC, indonesia

•Field geological mapping carried out in Q1

•Passive seismic programme planned for Q4

Exploration Asset

•Focus mainly on Asia Pacific region

•Prefer high quality, producing assets and exploration farm-in with low entry cost

•Continue to review funding options for new opportunities

Acquisition Growth


2014 Work Programme


Asset Q1 2014 Q2 2014 Q3 2014 Q4 2014

Basin PSC Well workover and maintenance

2 development wells

Island PSC Well workover and maintenance

West Belida PSC G&G, Passive seismic program

Fuyu-1 PSC Pre-development preparation & procurement ~40 development wells

3D seismic processing/interpretation

SK331 PSC 550 km 2D seismic acquisition

and processing

• Total net drilling Capex for 2014 currently estimated at US$17MM

• Active work programme in 2014 to: - Maintain and add onto existing production - Unlock value from potential discoveries


Financial Summary


Revenue EBITDAX 1

Debt Outstanding 40.4

Cash Balances 25.2

Net Debt 2 15.1

Net Gearing 3 8.5%

(US $MM)

(As at 30 June 2014)

1. Earnings before interest, taxation, depreciation, amortisation, exploration expenses and other non-recurring items 2. Defined as total debt and borrowings minus cash and short-term deposits 3. Defined as net debt divided by total equity * Include allowance for inventory obsolescence amounting to US$4.4 MM. Excluding such provision, EBITDAX for FY2013 would be US$33.3 MM.

US$ MM

89.4 86.4 86.4

38.5 38.9

0

50

100

2011 2012 2013 1H2013 1H2014

34.0 30.8

28.9

14.2 14.0

0

20

40

2011 2012 2013 1H2013 1H2014

US$ MM

*


Appendix


• Asset Overview • Major Shareholder

• Management and Executive • Sustainable Development

• PSC Regime Illustration

• Petroleum Resources Classification

• Contact Us


Basin PSC and Island PSC


Location : West Papua, Indonesia (onshore and offshore)

Area : 1,969 km2

Partnership : Operator: • Basin PSC: PetroChina (30%) • Island PSC: PetroChina (16.8%) & Pertamina (50%) Partners: • Basin PSC: RHP ( 60%), Pertamina (10%) • Island PSC: RHP( 33.2%)

PSC expiry date : 2020

Production : 4,100 BOEPD in 2013

Net 2P : 11.9 MMBOE

Net 2C : 35.6 MMBOE

Operational update:

: • Field development programmes currently being carried out for the following fields:

- Basin: North Klalin, SE Walio - Island: TBC, Koi

• Exploration activities ongoing


Basin PSC - Development


North Klalin field, Arar area • North Klalin-1 well was discovered in 2011 and put on production in

March 2012. North Klalin-2 and 3 appraisal wells were successfully completed and were put on production in 2014

• Plan of Development (“ POD”) currently being prepared • 4 development wells will be drilled upon POD approval

Southeast Walio field, Walio area • POP approved for 3 wells in late 2013 • POD for SE Walio field is currently being prepared • 2 development wells will be drilled upon POD approval

Walio area

Arar area


Basin PSC - Exploration


• Large inventory of prospects and leads identified in Walio and Arar areas

West Klagagi and Klaifi complex, Arar Area • West Klagagi discovered in 1989 and produced from Sept 1989 to July 1991 (natural

flow) with total cumulative production 110 MBOE • Klaifi was drilled on 1986 and tested 17-22% oil (light oil with 40.6 API, 3.53% wax) • 2D seismic re-procesing planned • Conducting rigless re-entry Klaifi-1 well to potentially bring back the well on

production. Success result of the test will determine future potential of the West Klagagi - Klaifi area.


Island PSC - Development


• Koi-1 was drilled in 2000. Well tested 980 BOPD and 2.7 MMSCFD

• Completed 3D program in 2010

• Koi-2 appraisal well successfully defined oil-water contact in 2014

• Begin Preliminary Front End Engineering Design (“pre-FEED”) study and preparation of Plan of Field Development (“POD”)

-4375

-4375

-4375

-4500

-4625

-4750

-4875

-400

0

-4000

-400

0

-4000

-4250

-4250

-4250

-4250

-4250

-4250

-4250-4125

-4125

-4125

-4125

-4125

-4125

-4875

-4375

-4500

KOI-1

KOI-2

KOI-3KOI-5

KOI-6

KOI-7

KOI-10

KOI-9

KOI-4

KOI-8

691600 692000 692400 692800 693200 693600 694000 694400 694800 695200

691600 692000 692400 692800 693200 693600 694000 694400 694800 695200

9827600

9828000

9828400

9828800

9829200

9829600

9830000

9830400

9827600

9828000

9828400

9828800

9829200

9829600

9830000

9830400

0 200 400 600 800 1000m

1:201430

30

60

90

120

150

180

210

Net v olume (map) [ft]


Island PSC - Exploration


SALAWATI ISLAND

WEST PAPUA

TBC

TBA

Koi

N Sele

• Large prospects and leads identified in offshore Koi Complex and Sele Strait

• TBA oil field re-activation expected in Q1 2015; tendering for FPSO (net 350 BOPD)

• TBC gas and condensate field revised POD in preparation


Fuyu- 1 PSC


Location : Southern extension of Songliao Basin ( Daqing Field) in North East China

Area : 255 km2

Partnership : • Operator: RHP Kingworld Resources Ltd (100%) • CNPC to back in at 51% once production

commences

PSC expiry date

: By 2038

Net 2C: : 34.1 MMBOE

Operational update:

: • ODP of Yongping Field • Deep gas exploration


Fuyu – 1 PSC - Development


Pilot Test Area • Overall Development Plan (ODP) for Phase 1 approved by CNPC in August 2012. Currently

awaiting final government approval

• Net recoverable 2P under ODP for Phase 1 is 7.1 MMBO

• Shallow heavy crude, requires steam injection

• Pilot program conducted with good results

• Development and production to start upon final ODP approval

• Long lead items for development procured

• Crude Sales Agreement signed


Fuyu – 1 PSC - Exploration


• Exploration well JF001 TD’d at 2,272m in July 2011

• Total net pay 30 M, tested tight gas sand

• 3D seismic reprocessing / interpretation

• Appraisal well planned for 2015


West Belida PSC - Exploration


Location: : Onshore Central Palembang sub basin, South Sumatra, Indonesia

Area : 1,046 km2

Partnership : • Operator: RHP Orchard Energy (West Belida) Ltd (94%) • Partner: PT Bayu Energy Lestari (6%)

PSC expiry date

: 2039

Operational update:

: • 240 km of 2D seismic completed in August 2011

• Gitar-1 well reached TD of 4,000 ft in November 2012 with traces of oil

• Surface geological mapping completed in south east area in early 2014

• Passive seismic survey planned for new prospects in end 2014

0 100km

Central Palembang

Sub basin

Jambi


SK 331 PSC - Exploration


Location: : Onshore extension of Balingian sub basin, Sarawak, Malaysia

Area : 11,600 km2

Partnership : • Operator: RHP RHP(Mukah) Pte Ltd* (80%) • Partner: Petronas Carigali (20%)

PSC expiry date

: 2039

Operational update:

: • Aerogravity / Aeromagnetic survey (FTG) completed in August 2013

• Seismic acquisition commenced in end June 2014 and to be followed by drilling one exploration well in 2015

* Sale of 49% shareholding in RHP(Mukah) Pte Ltd to Tumbuh Tiasa Enterprises Sdn Bhd in April 2014, pending completion

Sibu 0 100 KM

Mukah

Adong Kecil W-1 (440BOPD + 11MMCFD)

Mukah

Penian-1 Teres Bawan-1 Oya-1

Balingian

Rajang-1

SK331

Tatau


Major Shareholder


Board of Directors

Executive Chairman Tan Sri Datuk Sir Tiong Hiew King

Executive Director Dato’ Sri Dr Tiong Ik King

Group CEO and Executive Director Francis Chang Cheng-Hsing

Executive Director Peter Ng Choong Joo

Independent Director Abbasbhoy Haider Nakhoda

Independent Director Bernard Yeo Yun Seng

Independent Director Lee Hock Lye

Independent Director

Achmad Lukman Kartanegara

Tan Sri Datuk Sir Tiong Hiew King Chairman of RH Group, a multinational conglomerate in timber, palm oil, media, oil & gas and others - Chairman of RH Petrogas Ltd - Chairman of Rimbunan Sawit Bhd - Chairman of Media Chinese International Ltd - June 2009 – bestowed the Knight Commander of the Most Excellent Order of the British

Empire (K.B.E.) by Queen Elizabeth II of the United Kingdom - RH Petrogas is 64.5% owned by the Tiong family


Management and Executive


• Over 36 years’ experience with US based major and independent oil companies

• Worked in major producing basins around the world, particularly the Asia Pacific region

• Held management and executive positions for 12 years with GNT International Group, Texas American Resources, Kerr McGee/Anadarko Petroleum based in Beijing, China

Francis Chang

Group CEO & Executive Director

• Over 21 years of oil & gas experience involving both upstream and downstream sectors

• Spent 18 years with Singapore Petroleum Company Ltd (SPC), played a key role in many successful acquisitions and joint ventures

• Led SPC’s E&P asset team and responsible for managing the company’s entire portfolio of upstream exploration and production assets

Samuel Cheong

Vice President

Commercial

• Over 20 years of corporate law experience

• Previously legal counsel at SPC responsible for and managing a wide spectrum of projects and areas

• Admitted as an advocate and solicitor in Singapore

Edwin Tan

Vice President

Legal

• Joined the Group in 2006 as internal audit manager

• Previously Financial Controller and later as General Manager of a company in the RH Group in South America

• Fellow of the Association of Chartered Certified Accountants

GY Then

Vice President

Finance


Management and Executive


•Over 27 years of experience in the oil & gas industry and has won various awards for his contributions & achievements in both technical & managerial roles

•Has worked in various departments in Sinopec and MNC O&G upstream companies operating in China

•Holds a Master degree from China University of Geosciences and is a qualified senior engineer in Geology

Liu Qing Hai

GM of Kingworld Resources

•Over 33 years’ experience with Indonesia based major and independent oil companies, including Pertamina

•Worked mainly as a new venturer in Southeast Asia – Australia basins, particularly in Indonesia

•Management position for several years with Petrochina Jakarta for the Salawati Basin blocks, West Papua, Eastern Indonesia

Nana Djumhana

GM of RH Petrogas Indonesia

•Over 25 years of international E&P business experience with Japanese oil companies

•Working experience for E&P business in Saudi Arabia, Norway, Malaysia, Vietnam, China and Gulf of Mexico

•More than 10 years exploration manager/GM experience and 5 years’ management positions with Arabian Oil Company operating in ex-Neutral zone and JX Nippon Oil & Gas Exploration based in Tokyo

Hajime Kusaka

GM of RHP (Mukah)

•Over 37 years of experience in the petroleum E&P business, with focus on the major producing basins in Myanmar- both onshore and offshore

•Worked with Myanma Oil and Gas Enterprise (MOGE) under Ministry of Energy (State sector) for over 30 years. Last held position was Chief Geologist for Exploration and Development and acting Director(E&P)

Khin Maung Kyi

Senior Adviser for Myanmar

We have on-the-ground staff with strong local experience in each of the countries (Indonesia, China, Myanmar, Malaysia and Singapore) to manage current operation and explore new opportunities


Sustainable Development


Committing to build a better future

Respecting the environment Helping local communities to improve living conditions Fostering local developments through skill training workshops Promoting transparency and contributing to investors’ education in E&P industry Donating to charitable causes

Donating to charitable causes

Sponsoring for SGX Oil and Gas seminar


PSC Regime Illustration


* Excludes income tax payable by contractors on taxable income

Entitlement *

Co

ntr

acto

r en

titl

emen

t G

ove

rnm

ent

en

titl

emen

t

Profit Oil After

Gov levies

Other Gov levies

Profit Oil Cost Recovery

Co

st R

eco

very

Sh

arab

le P

rofi

t O

il

Royalty

Ro

yalt

y

Production

Contractor’s share

Government’s share

Go

vern

men

t’s

Pro

fit

Oil

C

on

trac

tor’

s P

rofi

t O

il


Petroleum Resources Classification


Resources Classification Framework Sub-classes based on Project Maturity

Source: Society of Petroleum Engineers website


Contact Us


Corporate Head Office

RH PETROGAS LIMITED

20 Harbour Drive

PSA Vista #06-03/03A

Singapore 117612

Corporate website:

http://www.rhpetrogas.com/

Tel no. :(65) 6216 3988

Fax no. :(65) 6896 2821

Email

Ms Susanne Chuang

Treasury and Investor Relations Manager

[email protected]

Mr. Francis Chang

Chief Executive Officer

[email protected]





THANK YOU

Documents

POSITIONING FOR GROWTH - listed companyrhpetrogas.listedcompany.com/misc/slides_010914.pdf · POSITIONING FOR GROWTH ... (CNPC, Pertamina, PetroChina, Petronas) Overview Market Statistics