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All rights reserved. No contents can be reproduced without prior written consent of RH Petrogas Ltd.
Sailing Ahead
Corporate Presentation December 2012
All rights reserved. No contents can be reproduced without prior written consent of RH Petrogas Ltd. 2
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.
Disclaimer
All rights reserved. No contents can be reproduced without prior written consent of RH Petrogas Ltd. 3
Largest independent E&P on SGX with 2011 average net working interest production of 4,600 BOEPD
Proven management track record in exploration and production, M&A
Strong sponsorship support and extensive network and connections by Controlling Shareholder
Diversified portfolio of 6 exploration, development and production assets with net working interest 2P reserves of 12.5 MMBOE and contingent resources of 148 MMBOE
Cash flow from production to support future growth
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2
3
4
5
Key Investment Highlights
All rights reserved. No contents can be reproduced without prior written consent of RH Petrogas Ltd. 4
Key Milestones
PRIOR YEARS Listed on the Main Board of SGX since June 1993
Formerly “Tri-M Technologies (S) Ltd” engaged in the electronics manufacturing business
2009 August Diversified into upstream oil & gas business by aquiring Kingworld Resources Ltd (“KRL”) for S$110 MM; operator of Fuyu-1 PSC in Jilin, onshore China. September Raised S$41.6 MM through new share placement to fund acquisition of KRL and working capital requirements.
November Renamed as RH Petrogas Ltd to reflect its new focus in the oil and gas business
2010 June Acquired Orchard Energy Pte Ltd (“OE”) from Temasek with an experienced management team. OE owns 94% working interest (W.I.) in West Belida PSC in South Sumatra, Indonesia
August Completed divestment of electronics business
December Completed acquisition of Lundin’s and PearlOil’s interests in the Basin PSC (60% W.I.) and Island PSC (33.2142% W.I.) in West Papua, Indonesia at a purchase consideration of approximately US$74 MM with an effective date of 1 Jan 2010 (US$5/BOE)
2011 February Full-year results for FY2010, PBT of US$6.8 MM, with EBITDA of US$13.1 MM
October Announced gas & condensate discovery of North Klalin, Salawati Basin PSC
2012 February 2011 Full year results PBT US$18.8 MM EBITDA US$34.0 MM August EGM – Shareholders approved The Proposed Debt Conversion and The Proposed Placement Received ODP Approval from CNPC November 3Q2012 and 9 months results PBT US$11.8 MM EBITDA US$21.5 MM December Signed SK331 PSC with Petronas, Malaysia. Signed Seismic Option Agreement for Block M-1 PSC in Myanmar
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Largest listed independent E&P company on SGX by market capitalisation of S$307 MM as of 7 November 2012
Net debt of US$83.0 MM as at 30 September 2012
Focused on Asia Pacific region
Potential rapid growth in production from current portfolio
Significant exploration and appraisal upside
2011 average net working interest production of 4,600 BOEPD
SGX-listed Independent E&P Operator with Asian Focus
2P 3P Unrisked Contingent Resources
Unrisked Prospective Resources
Net Working Interest Reserves/Resources as at 1 Jan 2012
Indonesia
China
China
Indonesia
Indonesia
China
12.5 14.5
148
945
6 All rights reserved. No contents can be reproduced without prior written consent of RH Petrogas Ltd.
UPDATES • Obtained ODP approval
from CNPC in August 2012 • Waiting for final approval
from NDRC – Q1 2013
UPDATES • Gitar-1 well drilled in November 2012 with
800’ gross column of hydrocarbon shows • Planning drilling of 2nd well – Q2 2013
UPDATES • North Klalin-1 discovery put on
production in March 2012 • North Klalin-3 appraisal being
tested • Net contingent resource add of 76
BCF + 2.4 MMBC • Development drilling and
production optimization in progress
UPDATES • Drilling of Offshore Koi
complex in 1Q 2013
Fuyu-1 Block Jilin, China Development
West Belida PSC Jambi, Sumatra, Indonesia Exploration
Salawati Kepala Burung PSC (Island) West Papua, Indonesia Production
Kepala Burung PSC (Basin) West Papua, Indonesia Production
2011 Production 4,600 BOEPD
Portfolio
SK 331 PSC Sarawak, Malaysia Exploration
UPDATES • Signed PSC on Dec 6, 2012 • 3-year exploration program
Block M-1 PSC Myanmar Exploration
UPDATES • 2D seismic planned in early 2013
All rights reserved. No contents can be reproduced without prior written consent of RH Petrogas Ltd. 7
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
2011 2012 2013 2014 2015 2016
BO
EPD
Net Production Scenario
All rights reserved. No contents can be reproduced without prior written consent of RH Petrogas Ltd. 8
Vision
“To be a leading independent oil and gas company in Asia” focusing on low to medium risk production and reserves growth Increase reserves and production through development of existing discoveries
Adding incremental reserves in the producing Basin & Island PSCs and Fuyu through an active infill drilling programme Increase resources through low risk ‘in-fill’ exploration
Carry out further exploration activities within the existing portfolio of assets to add to its reserve and resource base
Acquisition of new oil and gas assets
Seek new acquisitions of oil and gas assets with good medium to long term production lifespan, low to medium sub-surface risk, and exploration upside Strengthen Operatorship capability
Focus on organic growth of capability and efficiency through direct exploration activity (seismic, drilling, & production operations) and reducing costs
Strategy
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Area of Focus
North Sumatra Basin
Central Sumatra Basin
South Sumatra Basin
West Java Basin
East Java Basin
Papuan Basin
Salawati / Bintuni Basin
Kutai Basin
Tarakan Basin
Palawan Basin
Natuna Basin
Malay Basin
Pattani Basin
Myanmar Basin
Nam Conson Basin
Cu Long Basin
Sarawak / Sabah Basin
Songliao Basin
Pearl River Mouth Basin Khorat Plateu Basin
Song Hong Basin
Key Focus: • Leverage strong
relationships and market knowledge of management and controlling shareholders
• China • Indonesia • Vietnam • Malaysia • Thailand • Myanmar • Papua New Guinea • Selected niche areas
where RH Petrogas has special relationship
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Strong Sponsorship & Commitment from Controlling Shareholder
Tan Sri Datuk Sir Tiong Hiew King Chairman of RH Group, a multinational diversified 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 March 2012– ranked Malaysia’s 9th richest person by Forbes RH Petrogas is 77.07% owned by the Tiong family who also controls the RH Group, a Malaysian-based multinational diversified conglomerate
Forestry
Timber Reforestation
Oil Palm
Plantation Mill
Media
Newspaper Magazine
Technology
Hardware Software Fiber Optic Network
Consumer
Food Hotel Leisure
Others
Property Trading Manufacturing Education and Human
Capital Development
77% Ownership
Tiong Family
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Dr Tony Tan, Group CEO and Executive Director Over 30 years of international petroleum exploration, & production, merger & acquisition experience, especially in Asia-
Pacific Joined as Group CEO in June 2010 Previously CEO of Orchard Energy Pte Ltd (subsidiary of Temasek) Senior Vice President, Exploration & Production, of Singapore Petroleum Company Ltd (SPC) from 2000-2008 Previously head of Gaffney Cline’s Asia-Pacific operations. 16 years of international E&P management with major oil and gas company – USA/Canada.
Patrick Lam, Advisor to Chairman Over 20 years of experience in corporate development, corporate finance, financial management and investor relations Assisting Chairman Tan Sri Datuk Sir Tiong in media, oil/gas and other private investments Associate of The Hong Kong Institute of Chartered Secretaries and The Institute of Chartered Secretaries and
Administrators. Francis Chang, Vice President Exploration and Production 34 years experience with US based major and independent oil companies in both exploration and development Previously Vice President, International Operations for GNT International Group
Samuel Cheong, Vice President Commercial 18 years with SPC and played a key role in many successful acquisitions and joint ventures in both the upstream and
downstream sectors of the oil and gas industry Headed SPC’s asset team responsible for managing the company’s entire portfolio of upstream exploration and production
assets Edwin Tan, Vice President Legal 18 years of corporate law experience Previously legal counsel at SPC
GY Then, Group Financial Controller Joined the Group in 2006 as internal audit manager Previously 6 years as 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
Experienced Management Team
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Basin & Island PSC West Papua - Production
KEPALA BURUNG PSC (“BASIN ”)
RH Petrogas (60%) PetroChina (30%, Operator)
Pertamina (10%)
872 km2 (onshore)
PSC Expiry: 15 Oct 2020
SALAWATI KEPALA BURUNG PSC (“ISLAND ”)
RH Petrogas (33.2 %) Petrochina (16.8%, Joint Operator)
Pertamina (50%, Joint Operator)
1,097 km2 (onshore and offshore)
PSC Expiry: 22 April 2020
Net working interest 2P reserves (1/1/2012): 12.5 MMBOE (~96% oil)
2011 average net working interest production : 4,600 BOEPD (~95% oil)
West Papua
Basin
Island
Over the last decade, production in the Basin and Island PSCs has sustained at a relatively stable level through exploration discoveries, in-fill development drillings and production optimization initiatives
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Walio Block Arar Block North Klalin Recreation Park
Basin PSC - Prospects & Leads
Large inventory of prospects and leads identified in Walio and Arar blocks
Net unrisked recoverable prospective resources estimated at 94 MMBOE
At least 5 pre-Tertiary leads identified with additional net unrisked recoverable prospective resources of 164 to 338 MMBOE
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Basin PSC - Near Term Focus
KLALIN AND NORTH KLALIN COMPLEX
North Klalin-1 well has been put on production in late March 2012. N Klalin-3 appraisal was successfully completed in November 2012 and tested gas and condensate. Klalin POFD with potential additional reserves of 22 BCF Gas and 1.3 MMBO Condensate (5.17 MMBOE)
N Klalin-3 N Klalin-2
Klalin-17
Klalin-15
Klalin-14
Klalin-16
Klaimas-1
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Island PSC - Prospects & Leads
Large prospects and leads identified in offshore Koi Complex and Sele Strait
Net unrisked recoverable prospective resources estimated at 386 MMBOE
There remains significant short term appraisal and development opportunities in the offshore area
SALAWATI ISLAND
WEST PAPUA
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KOI COMPLEX POTENTIAL
Koi-1 discovery well drilled in 2000 flowed 980 barrels of oil per day and 2.7 million standard cubic feet of gas per day on test 400 km2 3D seismic completed over offshore Koi Complex in 2011 Currently planning a multi-well drilling program to appraise the Koi discovery and to explore Zircon, a much larger prospect structurally updip and adjacent to Koi. Drilling is targeted to commence in the first quarter of 2013.
Koi Complex
KOI
ZIRCON
GALENA
CORONDUM
ANDALUSITE
TOPAZ EMERALD
ONYX
Island PSC - Near Term Focus
3D Area
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KOI DISCOVERY
Discovered in 2000 Well tested 978 BOPD and 2.72 MMscf/d Net contingent resources: 5 MMBbls Appraisal well planned for Q1 2013
Island PSC - Koi Discovery
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ZIRCON PROSPECT
Zircon is larger and structurally higher to Koi discovery Net unrisked recoverable resources: 14 MMBbls Well planned for Q1 2013 Potential deep reservoir gas similar to Tangguh LNG Field
Island PSC - Zircon Prospect
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Jilin Oilfields
Fuyu 1
Area: 255 km2
Onshore NE China at southern extension of prolific Songliao Basin
Acquired in August 2009
RH Petrogas operates with 100% working interest
CNPC back-in in production phase at 51%
Net 2C Recoverable Resources: 35 MMBbls
PSC terms: Effective Date: Feb 1, 2008 Evaluation Phase: 3 yrs Production Phase: 20 yrs KRL bears 100% costs during evaluation and
production phases 65% cost recovery, remainder is shared oil at
49% to RH Petrogas
FUYU-1 Block, China - Development
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Pilot Test Area Shallow heavy crude, requires steam injection Pilot program conducted with good results Overall Development Plan (ODP) was approved by CNPC in August 2012, with final government approval expected in Q1 2013 Production expected in Q1 2013
FUYU-1 Block, China - Yongping Field
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JF1
Heavy Oil Pilot Test Area
Deep well JF001 reached TD @ 2,272m in July 2011 Total net pay 30m, tested tight Seismic reprocessing ongoing Planning 2nd deep well for 2013
JF2
JF001
JF001
FUYU-1 Block, China - Deep Target (Upside)
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West Belida PSC, South Sumatra - Exploration
0 100km
Central Palembang Sub basin
Jambi
1,402 km2 awarded in May 2009 Operate with 94% W.I. (6% owned by PT Bayu Energy Lestari) Located in the prolific South Sumatra Basin next to known producing trend of Piano, Gambang, and Kenong fields Proximity to existing infrastructure 240 km of 2D seismic completed in August 2011 Gitar-1 well reached TD of 4,000’ in November 2012 with 800’ gross column of hydrocarbon shows Further studies and planning 2nd well in 2013
Block SK331, Onshore Sarawak, Malaysia – Exploration
23
• Large onshore concession - 11,600 km2
• PSC signed Dec 6, 2012 • RH Petrogas 80%, Petronas Carigali
20% • Onshore extension of Balingian basin
which contains oil & gas fields offshore • Active petroleum system, with Oya gas
discovery which tested 7.3 mmcf/day in 1993
Exploration Work Commitment
Year 1 Aerogravity/Aeromagnetic survey Year 2 500 km 2D seismic Year 3 1 well
Mukah Penian-1
Teres Bawan-1 Oya-1 Balingian Rajang-1
SK331
Tatau
Oya gas discovery
Bintulu
Block M-1, Myanmar - Exploration
24
M1A1
SPT1 M1B1 Block M1
Lead #1 9GC
6CC
RH Petrogas acquired option to farm-in for a net 46.5% working interest in Block M-1 PSC Block Location Block M-1 is located south of Yangon in the Gulf of Moattama in water depths of up to 50 metres. Initial Exploration Period - Completed 2,000 km of 2D
seismic - Drilled one exploration well First Extension Year - Expires 7 June 2013 - 300 km of 2D seismic Second Extension Year One well commitment
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2013 Work Programme
Q1 2013 Q2 2013 Q3 2013 Q4 2013
Basin PSC, Indonesia 1 development well 2 development wells 1 exploration well
1 development well 1 development well
Island PSC, Indonesia
1 exploration well 1 appraisal well
3 appraisal wells*
West Belida PSC, Indonesia 1 exploration well
Fuyu-1 PSC, China 20 development wells
30 development wells 1 exploration well
SK331 PSC, Malaysia
Aerogravity / Aeromagnetic survey
Block M-1 PSC, Myanmar 2D Seismic
Total 2013 net drilling Capex currently estimated at US$40 MM Development wells – Targeting net working interest 2P reserves of 3.5 MMBOE and incremental net average production of 800 BOEPD Exploration wells – Targeting net unrisked recoverable resources of 112 MMBOE
* Contingent wells
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Financial Highlights
Revenue (US$ MM)
Capex (US$ MM)
EBITDA (US$ MM)
Net Debt* (US$ MM)
+56%
• Defined as total debt plus trade payables and other liabilities, and minus cash and short term deposits
13.1
34.0
22.3 21.5
0
10
20
30
40
2010 2011 9M 2011 9M 2012
+160%
-4%
18.2
28.4
20.2
16.1
0
10
20
30
2010 2011 9M 2011 9M 2012
-20% 131.1
114.6 118.1
82.7
0
50
100
150
2010 2011 9M 2011 9M 2012
-30% -13%
50.8
89.4
63.1 60.4
0
20
40
60
80
100
2010 2011 9M 2011 9M 2012
-4% +76%
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Corporate Update
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Net Gearing* of 47% as at 30 September 12 Net debt taken on to acquire Island and
Basin Refinancing to continue growth of RH
Petrogas
Capitalise Shareholders Loans Completed capitalisation of US$61.5 MM
shareholder loans at S$0.492 per share on 13 August 2012
Net gearing to fall to 47% Tiong Family shareholding rises in the short
term to approximately 77%
Improving the Balance Sheet - Enhancing Liquidity
* Defined as net debt divided by total equity
Raise New Equity Equity fund raising of placement of new shares
with warrants Target to raise up to approximately S$94 MM
initially with up to a further S$38 MM assuming full warrants exercise within one year
Net cash expected following completion of equity fund raising and assuming full warrants exercise
Free float increases significantly following completion of equity fund raising and assuming full warrant exercise
Low Liquidity of RH Petrogas Shares In 2011, RH Petrogas only traded on 167
of the 250 market trading days Average daily trading of just S$76,000
per day
Approved on EGM 07 August 2012
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Loan Capitalisation
Shareholder loans US$61.5 MM owed to RHCL, SIL and SPL, investment vehicles of Controlling Shareholders (Tan Sri Datuk Sir Tiong Hiew King and family)
Loan Capitalisation RH Petrogas has issued an aggregate of 157,455,957 new shares to RHCL, SIL and SPL as settlement of an aggregate sum of US$61.5 MM, at a conversion price of S$0.492 per share on 13 August 2012
Tiong Family shareholding post Capitalisation
473,425,443 shares, approximately 77% of the post-capitalisation issued share capital
Equity Fund Raising: Shares and Warrants
Shares Up to 262,292,000 new ordinary shares in the capital of RH Petrogas
Warrants Up to 87,431,000 warrants
Pricing No less than S$0.36 per share + warrant package
Warrant Exercise Terms 1 year, American style. Exercise price expected to be at a premium of up to 20% to the package price
Details of the Corporate Actions
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Largest independent E&P company by market capitalisation listed on SGX focused on growing portfolio of exploration, development and producing assets with an Asia-Pacific focus Strong and experienced Management team with good track record
Near term operating cash flow and production growth Focused on increasing reserve and resource base through exploration and development activities and M&A activities with an emphasis on low to medium sub-surface risk
Niche access to M&A opportunities through Controlling Shareholder’s & Management’s extensive business network Strengthen balance sheet and improve gearing to reposition the Company for delivering growth and adding shareholder value Undertaking new share placement to improve liquidity and trading levels of shares and to generate funding capital for growth
Summary-Delivering Growth & Shareholder Value
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Contact Us
Corporate Head Office
RH PETROGAS LIMITED 20 Harbour Drive PSA Vista #06-03 Singapore 117612 Tel no. : (65) 6216 3988 Fax no. : (65) 6896 2821 Email : [email protected] (Legal) [email protected] (Exploration & Production) Corporate website: http://www.rhpetrogas.com/