steady growth - petrogasrhpetrogas.listedcompany.com/misc/slides_mar2013.pdf · basin nam conson ....

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

Steady Growth Corporate Presentation

March 2013

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


Cash flow from production to support future growth, with great upside.

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.

Strong major shareholder support and with extensive network and connections.

Proven management track record in exploration and production growth.

Largest Independent Exploration & Production company on SGX, with net production of 4300 boepd in 2012.

COMPANY OVERVIEW


KEY MILESTONES

1993 - “Tri-M Technologies (S) Ltd” engaged in the electronics manufacturing business, listed on SGX Electronic Factory

Oil

and

Gas

Com

pany

DEC 2012 – North Klalin-3 Indonesia discovery in Salawati Basin PSC

AUG 2012 - Received ODP approval on FUYU from CNPC

OCT 2011 - Gas & condensate discovery of North Klalin, Salawati Basin PSC

DEC 2010 - 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

JUNE 2010 - Acquired Orchard Energy Pte Ltd (“OE”) from Temasek, together with its Management Team

NOV 2009 - Renamed as RH Petrogas Ltd to reflect its new focus in the oil and gas business

AUG 2009 - Diversified into upstream oil & gas business by acquiring Kingworld Resources Ltd (“KRL”); operator of Fuyu-1 PSC in Jilin, onshore China

AUG 2010 – Completed Divestment of Electronics Business

2010 FEB 2011 – Results PBT FY2010 of US$6.8MM and EBITDAX OF US$13.1MM

2011

2009

AUG 2012 – EGM – Shareholders approved Debt Conversion to Equity and the proposed placement.

DEC 2012 – Signed SK331 PSC with Petronas Malaysia and Seismic Option Agreement for Block M-1 PSC in Myanmar

FEB 2013 – Results FY2012 PBT US$16.2 MM and EBITDAX of US$30.8MM 2012

2013

FEB 2012 - Results PBT FY2011 of US$18.8 MM EBITDAX US$34.0 MM


Largest listed independent E&P company on SGX by market capitalisation of S$338MM as of 31 January 2013, with focus on Asia

Net debt of US$13.7 MM as at 31 December 2012

Potential rapid growth in production from current portfolio

Significant exploration upside (945MMBOE of unrisked prospective resources)

2012 average net working interest production of 4,300 BOEPD

SGX-LISTED INDEPENDENT E&P OPERATOR WITH ASIAN FOCUS

Net Working Interest Reserves/Resources in MMBOE as at 1 Jan 2012

2P 3P Unrisked Contingent Resources

Unrisked Prospective Resources (*)

12.5 14.5

148

945

(*) Excludes SK331 Malaysia and M1 Myanmar


PORTFOLIO

West Belida PSC Jambi, Sumatra, Indonesia Exploration

Salawati Kepala Burung PSC (Island) West Papua, Indonesia Production

Kepala Burung PSC (Basin) West Papua, Indonesia Production

SK 331 PSC Sarawak, Malaysia Exploration Block M-1 PSC

Myanmar Exploration

Fuyu-1 Block Jilin, China Development


0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

2012 2013 2014 2015 2016 2017

B

O

E

P

D

NET PRODUCTION SCENARIO

Zircon & Koi Fields (Island PSC)

West Belida PSC

Acquisitions and further organic growth

Klalin & N. Klalin (Basin PSC)

(*) Excludes SK331 Malaysia and M1 Myanmar

Fuyu-1


STRATEGY

“To be a leading

independent oil & gas

company in Asia”

INCREASE RESERVES & PRODUCTION

ACQUIRE NEW OIL & GAS ASSETS

STRENGTHEN OPERATORSHIP

CAPABILITY


AREA OF FOCUS KEY FOCUS

• Leverage strong

relationships and technical knowledge of management and controlling shareholders

China

Indonesia Vietnam Malaysia Thailand Myanmar

Papua New Guinea

Songliao Basin

Song Hong Basin

Khorat Plateu Basin Myanmar

Basin

Pearl River Mouth Basin

Cu Long Basin

Nam Conson Basin

Palawan Basin

Tarakan Basin

Kutai Basin

Salawati / Bintuni Basin

Papuan Basin

Sarawak / Sabah Basin

Pattani Basin

Malay Basin

Natuna Basin

North Sumatra Basin

Central Sumatra Basin

South Sumatra Basin

West Java Basin

East Java Basin


BOARD OF DIRECTORS

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

BOARD OF DIRECTORS

Tan Sri Datuk Sir Tiong Hiew King : Executive Chairman

Dato’ Sri Dr Tiong Ik King : Executive Director

Dr Tony Tan : Group CEO and Executive Director

Peter Ng Choong Joo : Executive Director

Abbasbhoy Haider Nakhoda : Independent Director

Bernard Yeo Yun Seng : Independent Director

Lee Hock Lye : Independent Director


EXPERIENCED MANAGEMENT TEAM

SAMUEL CHEONG, VICE PRESIDENT ,COMMERCIAL 18 years with Singapore Petroleum. Key role in many successful acquisitions & joint ventures in both upstream & 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

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

DR TONY TAN Group CEO & Executive Director

Over 30 years of oil & gas experience Previously CEO of Orchard Energy Pte Ltd (subsidiary of Temasek) Was Senior VP, 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

FRANCIS CHANG, VICE PRESIDENT, EXPLORATION & PRODUCTION 34 years experience major and independent oil companies in both exploration and development Previously VP, International Operations for GNT International Group

EDWIN TAN, VICE PRESIDENT, LEGAL 18 years of corporate law experience Previously legal counsel at SPC

GY THEN, VICE PRESIDENT, FINANCE 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


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, with extension to 2030

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, with extension to 2030

Net working interest 2P reserves (1/1/2012): 12.5 MMBOE (~96% oil)

2012 average net working interest production : 4,300 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


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 Kais Limestone 94 MMBOE Pre Tertiary 338 MMBOE


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 Jan 2013 and tested gas 7.8 MMSCFPD and condensate at 233 BCPD. Currently drilling North Klalin-2 appraisal well. North Klalin pre-drill net prospective resources estimates is 76 BCF of gas and 2.4 MMBC of condensates (16.08 MMBOE). Klalin POD with potential additional reserves of 22 BCF Gas and 1.3 MMBO Condensate (5.17 MMBOE), expected Q1 2013.

Klalin-17

N Klalin-3

Klalin-15

Klalin-14

N Klalin-2

Klaimas-1

N Klalin-4

N Klalin-5


ISLAND PSC - PROSPECTS & LEADS

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

TBA oil field re-activate production is expected in Q1 2014; secured new FPSO

TBC gas and condensates revised POD to be submitted in Q2 2013

SALAWATI ISLAND

WEST PAPUA

Net Recoverable Reserves TBA * 0.20 MMBO TBC ** 7.2 MMBOE * Reserves ** Contingent Resources

Net Unrisked Recoverable Prospective Resources KOI Complex and Sele Strait 386 MMBOE

TBC

TBA


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. Completed 3D program in 2010. 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 Q2 2013. Water depth is around 10 m

Koi Complex

KOI

ZIRCON

GALENA

CORONDUM

ANDALUSITE

TOPAZ EMERALD

ONYX

ISLAND PSC - NEAR TERM FOCUS

3D Area

TBC

TBA


KOI DISCOVERY

Discovered in 2000 Well tested 980 BOPD and 2.72 MMscf/d Appraisal well planned for Q2 2013

ISLAND PSC - KOI DISCOVERY & ZIRCON PROSPECT

ZIRCON PROSPECT

Zircon is larger and structurally higher to Koi discovery Well planned for Q2 2013 Potential deep reservoir gas similar to Tangguh LNG Field

Net Recoverable Resources KOI 5 MMBO Zircon 14 MMBOE


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

Net Recoverable 2C Resources 35 MMBO

Songliao Basin

Fu

Fuyu 1 Block

FUYU-1 BLOCK, CHINA - DEVELOPMENT


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 Q2 2013 Production expected in Q3 2013 Crude Sales Agreement has been signed

FUYU-1 BLOCK, CHINA - YONGPING FIELD


JF1

Heavy Oil Pilot Test Area

Deep well JF001 reached TD @ 2,272m in July 2011 Total net pay 30m, tested tight gas sand Seismic reprocessing ongoing Planning 2nd deep well for 2013 Fracking planned for both wells in 2013

JF2

JF001

JF001

FUYU-1 BLOCK, CHINA DEEP TARGET (UPSIDE)

Net Recoverable Prospective Resources Deep well 162 BCF (30 MMBOE)


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

Net Recoverable Prospective Resources 5 MMBO

Feet

P-50(prospective recoverableResources = 3.47 MMBO)

2820 2490

2035

N

Gitar-1

WEST BELIDA PSC SOUTH SUMATRA - EXPLORATION

BLOCK SK331, ONSHORE SARAWAK, MALAYSIA – EXPLORATION

22

• 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 and Mukah-1 well produced gas around 1 mmcf/day from April 1938 to March 1939

• Very good potential for oil & gas

Exploration Work Commitment Year 1 Aerogravity/Aeromagnetic survey Year 2 500 km 2D seismic Year 3 1 well

Net Prospective Resources In Progress

Mukah Penian-1

Teres Bawan-1 Oya-1 Balingian Rajang-1

SK331

Tatau

Oya gas discovery

Bintulu

Recent Nippon Oil & Gas discovery

Mukah-1 gas production

23

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 Second Extension Year - Expires 7 June 2013 - One well commitment - 300 km of 2D seismic

M1A1

SPT1 M1B1 Block M1

9GC

6CC

OBC Survey

BLOCK M-1, MYANMAR - EXPLORATION


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 3 appraisal wells*

1 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 11 MMBOE and incremental net average production of 900 BOEPD Exploration wells – Targeting net unrisked recoverable resources of 112 MMBOE

* Contingent wells


FINANCIAL HIGHLIGHTS

Revenue (US$ MM)

Profit After Tax (US$ MM)

EBITDAX* (US$ MM)

Net Debt* (US$ MM)

* Defined as total debt and borrowings minus cash and short-term deposits

50.8

89.4 86.4

0

20

40

60

80

100

2010 2011 2012

+76% -3%

13.1

34.0 30.8

-

10.0

20.0

30.0

40.0

2010 2011 2012

+160% -9%

* Earnings before interest, taxation, depreciation, amortisation and exploration expenses (EBITDAX)

1.6

2.9

6.1

-

2.0

4.0

6.0

8.0

2010 2011 2012

+81%

+110% 47.3 56.4

13.7

0

20

40

60

80

2010 2011 2012

+19%

-76%


CORPORATE UPDATE


Net Gearing* of 8% as at 31 December 2012 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 fell to 8% Tiong Family shareholding rises in the short

term to approximately 77%

IMPROVING THE BALANCE SHEET - ENHANCING LIQUIDITY

* Defined as net debt (total debt and borrowings minus cash and short term-deposits) 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


Largest independent E&P company by market capitalisation listed on SGX focused on growing portfolio of exploration, development and producing assets in Asia Strong and experienced Management team with good track record

Near term operating cash flow and production growth Focused on increasing reserve and production through exploration and development activities and acquisition with an emphasis on low to medium sub-surface risk

Good access and relationship through Controlling Shareholder’s & Management’s extensive business network Strengthen balance sheet and improve gearing to reposition the Company to deliver growth and add shareholder value Undertaking new share placement to improve liquidity and to generate funding capital for growth and development

SUMMARY-DELIVERING GROWTH & SHAREHOLDER VALUE


CONTACT US Corporate Head Office

RH PETROGAS LIMITED 20 Harbour Drive PSA Vista #06-03/03A 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/

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