CORO ENERGY PLC INVESTOR PRESENTATION Q1 Q1 2020 PLC ENERGY CORO Q1 PRESENTATION INVESTOR DISCLAIMER
The information contained in this document (“Presentation”) has been prepared by Coro Energy plc (the “Company”). While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers give, have given or have authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as “Information”) and liability therefore is expressly disclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of, the accuracy or completeness of the Information or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Presentation. CORO ENERGY PLC This Presentation may contain forward-looking statements that involve substantial risks and uncertainties, and actual results and developments may differ materially from those expressed or implied by these statements. These forward-looking statements are statements regarding the Company’s intentions, beliefs or current expectations concerning, among other things, the Company’s results of operations, financial condition, prospects, growth, strategies and the industry in which the Company operates. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These forward-looking statements speak only as of the date of this Presentation and the Company does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this Presentation. INVESTOR PRESENTATION Q1 Neither the issue of this Presentation nor any part of its contents is to be taken as any form of commitment on the part of the Company to proceed with any transaction and the right is reserved to terminate any discussions or negotiations with any prospective investors. In no circumstances will the Company be responsible for any costs, losses or expenses incurred in connection with any appraisal or investigation of the Company. In furnishing this Presentation, the Company does not undertake or agree to any obligation to provide the recipient with access to any additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation which may become apparent.
This Presentation should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisers. In particular, this Presentation does not constitute an offer or invitation to subscribe for or purchase any securities and neither this Presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever. Each party to whom this Presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. In particular, any estimates or projections or opinions contained herein necessarily involve significant elements of subjective judgment, analysis and assumptions and each recipient should satisfy itself in relation to such matters. The distribution of this document in or to persons subject to other jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of the laws of the relevant jurisdiction.
2 A FULL CYCLE SOUTH EAST ASIAN FOCUSSED E&P COMPANY
Regional gas & oil Focussed business SHAREHOLDERS CORO ENERGY PLC strategy backed by: development team 4% Supply/demand imbalance Positioned to benefit from rapidly changing environment Strong local gas markets in SE Asia 7% INVESTOR PRESENTATION Q1 Scarcity of credible small PSC in Indonesia with 19% cap operators discovered resource
Close to market for early monetisation 25% Experienced and Large exploration upside in successful founder West Natuna and Malaysia group 45% Directors with experience A FULL in mid-cap E&P CYCLE SOUTH Management with deep EAST ASIAN regional experience FOCUSSED E&P COMPANY RETAIL LOMBARD ODIER CONRAD CIP OTHER PETROLEUM LTD
3 BOARD OF DIRECTORS
James Parsons James Menzies Andrew Dennan
Non-Executive Chairman Chief Executive Officer Chief Financial Officer
Non- executive Chairman of Echo Energy Plc, Founder & CEO of Salamander Energy plc Over 10 years’ experience in capital markets CORO ENERGY PLC Executive Chairman Regency Mines Plc, Executive (sold in Feb 2015) Leading proprietary investment decisions, capital Chairman Ascent Resources Plc (proposed). Extensive experience of building & monetising raising, risk oversight and portfolio management Over 20 years’ experience in the fields of strategy, asset portfolio in Thailand, Indonesia & Malaysia BSc (Hons) degree in Actuarial Science from management, finance and corporate development BSc (Hons) Geology, MSc Geophysics City University, London Qualified accountant and has a BA Honours in & Planetary Physics INVESTOR PRESENTATION Q1 Business Economics
Fiona MacAulay Marco Fumagalli Nick Cooper Non-Executive Director Non-Executive Director Non-Executive Director
Chairperson at Independent Oil and Gas and Managing Partner at Continental Non-executive director at Siccar Point Energy Non- Executive director at Echo Energy Plc Investment Partners Formally CEO of Ophir Energy plc from 2011-18 Formerly CEO at Echo Energy Plc Non-Executive director at Merchant Capital Ltd and CFO and co-founder of Salamander Energy and COO at Rockhopper plc from 2005-2011. Qualified accountant with a degree in Business Chartered Geologist and European President of Administration from Bocconi University in Milan Began his career as a geophysicist with BG and BOARD OF the American Association of Petroleum Geologists Amoco. Goldman Sachs oil and gas team 1999-2005. DIRECTORS BSc and PhD in Geophysical Sciences and an MBA from INSEAD
4 WHY SOUTH EAST ASIA? INCREASING DEMAND
SOUTH EAST ASIA AND EUROPE IN COMPARISON CORO ENERGY PLC
SE Asia Europe
POPULATION 1.0% INVESTOR PRESENTATION Q1 GROWTH -0.3%
GDP 4-6% GROWTH* 1-2%
ENERGY 4.0% DEMAND GROWWTH** -0.3%
*AVERAGE ANNUAL GROWTH UNTIL 2025 WHY SOUTH **AVERAGE ANNUAL GROWTH UNTIL 2040 EAST ASIA?
5 SOURCE: WORLD BANK, OECD IEA WHY SOUTH EAST ASIA? WHILE SUPPLY IS FALLING
Indigenous supply in decline as demand grows; future output increasingly dominated by gas CORO ENERGY PLC
SUPPLY BY REGION SUPPLY BY HYDROCARBON
8 18 INVESTOR PRESENTATION Q1 7 16
14 6
12 5 10 GAS 4 8 MILLION BOE/D MILLION BOE/D MILLION 3 6
2 4 LIQUID 1 2
0 0 WHY SOUTH 2015 2020 2025 2030 2035 2040 2015 2020 2025 2030 2035 2040 EAST ASIA? AUSTRALASIA EASTERN ASIA SOUTH-EASTERN ASIA SOUTHERN ASIA
SOURCE: WOOD MACKENZIE, LENS 6 WHY SOUTH EAST ASIA? Asia Pacific holds 70 billion boe of discovered but undeveloped resource
WATER DEPTH RESOURCE THEME OPERATOR CORO ENERGY PLC INVESTOR PRESENTATION Q1
ONSHORE SHELF CONVENTIONAL DEEPWATER NOCS MAJORS DEEPWATER ULTRA- LNG UNCONVENTIONAL LARGE & OTHERS DEEPWATER MID CAPS ACID/SOUR GAS
WHY SOUTH ~75% onshore Close to half conventional More than 1/2 held by majors... EAST ASIA? and shallow water but this is changing
7 SOURCE: WOOD MACKENZIE, LENS INDEPENDENT E&P STRATEGY IN SE ASIA TRIED AND TESTED MODEL
HUB STRATEGY WELL SUITED TO SE ASIA LARGE OPERATED EQUITY PARTICIPATION CORO ENERGY PLC ENHANCED TECHNICAL INSIGHT INCREASED ACCESS TO OPPORTUNITIES OPERATIONAL FLEXIBILITY CONTROL TIMING/SPEND FINANCIAL SYNERGIES PARTIAL SELL DOWN FURTHER UP THE VALUE CURVE
CAPITAL RETURN INVESTOR PRESENTATION Q1 TO SHAREHOLDER PICK UP SURROUNDING SURROUNDING ACREAGE OPPORTUNITIES IN SAME BASIN PORTFOLIO OF HUB POSITIONS
STEP-OUT LOW RISK EXPLORATION EXPLORATION USING SUBSURFACE KNOWLEDGE
CAPITAL REDEPLOYMENT
BROWN/ ADD VALUE THROUGH DEVELOPMENT / HUB GREEN FIELD VALUE RESOURCE DISCOVERED DEVELOPMENT REDEVELOPMENT STRATEGY COMMERCIALISATION
8 DEVELOPMENT MATURITY FALLOW DISCOVERIES HAVE BEEN A SOURCE OF GREAT VALUE FOR INDEPENDENTS
WEST DESARU, 40MMbo HESS CORO ENERGY PLC MALAYSIA PETROFAC
85MMbo CENDOR, HESS MALAYSIA PETROFAC DISCOVERY INVESTOR PRESENTATION Q1 JASMINE, 55MMbo HARRODS ENERGY PRODUCTION THAILAND PEARL ENERGY START UP
BUALAUNG, SUN OIL 85MMbo LONG FALLOW THAILAND SALAMANDER PERIODS COMMON
BERTRAM, 25MMbo HESS MALAYSIA LUNDIN LOW COST, CONVENTIONAL
BUA BAN, 100MMbo SHALLOW WATER PREMIER OIL THAILAND COASTAL ONSHORE
KERENDAN, 600BCF UNOCAL INDONESIA SALAMANDER MIDCAP 25MMbo SUCCESS GALOC, CITIES SERVICES PHILIPPINES OTTO
1980 1985 1990 1995 2000 2005 2010 2015 9
MAKO GAS FIELD, DUYUNG PSC HIDING IN PLAIN SIGHT
TENGIRI-1
Biogenic gas accumulation located in
the prolific West Natuna basin CORO ENERGY PLC TAMBAK-1 Shallow, Pliocene-age Intra-Muda sandstone reservoir, with gas water contact at c. 391m TVDss MAKO SOUTH-1 INVESTOR PRESENTATION Q1
Six wells have penetrated the field to date CAKALANG-1
Reservoir cored & tested by the Mako MAKO-1 South-1X well (June 2017) 20%+ porosities, multi-Darcy permeability TAMBAK-2 Flowed 10.8 MMscf/d on test Dry gas, no H2S, minimal CO2, over 97% methane Two well’s DST completed - flowed 11.4 MMscf/d Independently certified by GCA (pre-drill) DUYUNG PSC: THE MAKO 1C 2C 3C THE MAKO ANTICLINE GAS FIELD Huge structure 47 km long, 16 km wide (BCF) 184 276 392 c. 350 sq km of areal closure above the GWC
CERTIFICATION BY GAFFNEY, CLINE & ASSOCIATES (NOV. 2018) 10 APPRAISAL CAMPAIGN SUCCESS CORO ENERGY PLC
Mako Field = Large, Single Gas Tank
Extensive High Quality Reservoir INVESTOR PRESENTATION Q1 Distributed Over Huge Areal Extent Excellent Porosity, Multidarcy Permeability Sweet, Dry Natural Gas, >97% Methane Multiple Successful DSTs 276Bcf (2C), 392Bcf (3C) prior to appraisal Management expect minimum 100bcf added through campaign Revision to CPR Underway APPRAISAL CAMPAIGN SUCCESS
11 MAKO: ARBITARY LINE ACROSS WELL LOCATIONS
13.5 KM TAMBAK -1 MAKO SOUTH-1 TAMBAK -2 CORO ENERGY PLC INVESTOR PRESENTATION Q1
AMPLITUDE SHUT OFF
GAS-WATER CONTACT MAKO: ARBITARY LINE ACROSS WELL LOCATIONS
12 MAKO APPRAISAL WELLS: ADDING c.100 BCF CONTINGENT RESOURCES
WELL LOGS FLATTENED ON INTRA-MUDA SANDSTONE RESERVOIR CORO ENERGY PLC INVESTOR PRESENTATION Q1
MAKO APPRAISAL WELLS
13 WNTS (WEST NATUNA TRANSPORT SYSTEM) GAS PIPELINE TO SINAGPORE ACCESS TO SINGAPORE GAS MARKET CORO ENERGY PLC 16 km from Kerisi platform (Medco-operated) Can hook into West Natuna Transportation System INVESTOR PRESENTATION Q1 (WNTS), delivers gas to MAKO FIELD LOCATION IN COMPARISON TO SINGAPORE AND WNTS GAS PIPELINE SYSTEM Singapore MAKO FIELD LOCATION WNTS operated by ConocoPhillips on behalf of the basin operator group: Medco, Premier, STAR Open Access (in theory) HoA signed with Singaporean Buyer
ACCESS TO SINGAPORE
14 MALAYSIA BLOCK 2A — MULTI TCF POTENTIAL
Joint Study agreement with Situated in Eastern Malaysia – High quality 3D seismic data and National Oil company (Petronas) block covers an area of regional well data to be used by 2,400km2 Coro to assess petroleum potential CORO ENERGY PLC
LEGEND
Central Luconia is one of 8 geological GAS OIL GAS PIPELINE regions in the Sarawak basin SHALLOW GAS INVESTOR PRESENTATION Q1 Four of these sub-basins, including Central Luconia, are highly prolific SK-2A Stable micro-plate surrounded by deep basins 100 – 250 km offshore, water depths > 250 m Main play is Miocene-age reefal carbonates Shell’s early gas discoveries led to the Bintulu LNG plant being established onshore in the 1980’s BRUNEI DARUSSALAM Sapura E&P has had recent success, finding over MALAYSIA 4.5 Tcf in a series of deep water discoveries BLOCK 2A – Good address MULTI TCF POTENTIAL Prolific basin MALAYSIA Gas into LNG Plant Good neighbours 15 M.Madonetal./JournalofAsianEarthSciences76(2013)312–333
NWNW NORTHERN LUCONIA PLATFORM SE 0
GIANT STRUCTURES 1 EARLY MIOCENE UNCONFORMITY
WITH MULTI 2
TCF RESOURCE 3
POTENTIAL WITHIN 4 THE STUDY AREA 5
6 CORO ENERGY PLC SECONDS TWT
Over 2,900 sq km of modern, 7 high quality 3D seismic data available (2016 vintage) 8
Significant leads identified in 9 10KM INVESTOR PRESENTATION Q1 proven petroleum systems in 10 our recent work NW BLOCK 2A STRUCTURAL TREND SE Large structural closures of 1.5 over 200 sq km mapped within EARLY MIOCENE Block 2A. Highly prospective 2.0 UNCONFORMITY trend identifying for eventual 2.5 drilling 2 Ma 3.0 5.5 Ma 3.5
4.0 SECONDS TWT 16 Ma 30 Ma STUDY AREA 4.5 21 Ma 43 Ma 5.0 25 Ma From ‘The Structure & Stratigraphy of Deepwater Sarawak, Malaysia.’ 5.5 Mazlan Madon et al, 2013 10KM 16 WELL DEVELOPED GAS INFRASTRUCTURE & MARKETS IN CLOSE PROXIMITY TO BLOCK 2A CORO ENERGY PLC
Bintulu LNG established in 1982
Bintulu train nine was INVESTOR PRESENTATION Q1 commissioned in 2016 Other than LNG, offshore BINTULU LNG PLANT gas is needed for:
fertilizer plants
a middle distillates plant and
power generation
WELL Extensive offshore pipeline network DEVELOPED GAS INFRASTRUCTURE Well established infrastructure & MARKETS for both oil & gas
17 2A STRATEGICALLY PLACED TO SUPPLY GAS INTO MALAYSIAN LNG CORO ENERGY PLC
THE SARAWAK COMMERCIAL GAS SUPPLY-DEMAND GAP SIGNIFICANT FEEDGAS 5.0
SHORTAGE INTO MLNG PLANT IN INVESTOR PRESENTATION Q1 BINTULU SARAWAK, MALAYSIA 4.5
4.0
3.5 PLANT CURRENTLY WORKING AT 85% CAPACITY 3.0
2.5 BCF/D 2.0 SIGNIFICANT SHORTFALL OF FEEDGAS FOR YEARS AHEAD DUE 1.5 TO NEW DISCOVERIES HAVING HIGH 1.0 CO2 OR H2S CONTAMINANTS. 2A STRATEGICALLY 0.5 0.0 PLACED AN EVENTUAL 2A MULTI TCF 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 DISCOVERY WOULD HAVE READY LEGACY PRODUCING FIELDS NEWSUPPLY UNDER DEVLOPMENT SK316 ACCESS TO MARKET AT BINTULU LNG SABAH GAS (KBB & SB1) DEMAND (MLNG + SARAWAK DOM) Q2 2017 VIEW
18 SOURCE: WOOD MACKENZIE CORO ENERGY’S PORTFOLIO GROWING MID TIER FUTURE PROSPECT PRODUCTION GAS PROXIMAL TO MARKETS INVENTORY PLATEAU
WEST NATUNA - SINGAPORE SARAWAK - BINTULU LNG CORO ENERGY PLC INVESTOR PRESENTATION Q1
ITALIAN POST DUYUNG PLATFORM ACQUISITIONS GAS PROXIMAL BCF BOE BCF BOE TO MARKETS NET 2P & 2C RESERVES/ 30.3 5.35MM 71.3 12.6MM RESOURCES
19 SABAH GREAT OPPORTUNITY FOR AN 19 INDEPENDENT E&P OPERATOR MALAYSIA HOLDS OVER 170 OPEN FIELDS 50
31 CORO ENERGY PLC
SABAH
PENINSULA INVESTOR PRESENTATION Q1 MALAYSIA
PENINSULA 22 MALAYSIA
SARAWAK SARAWAK 71 14 TOTAL 49 52 55 LEGEND DISCOVERED 38 MALAYSIA RESOURCES IN HOLDS OVER 170 GAS OPEN ACREAGE OPEN FIELDS OIL 173 REPRESENT A GREAT OPPORTUNITY FOR OIL&GAS INDEPENDENT Image courtesy of Petronas; 2019 AWARDED BLOCKS 118 OPERATORS. Malaysia Bidding Round prospectus 20 OPEN BLOCKS NUMBER OF FIELDS IN OPEN ACREAGE
MALAYSIAN DISCOVERED RESOURCES
GREEN AND BROWNFIELD OPPORTUNITIES LIMITED NUMBER OF OPERATORS WOULD SUIT INDEPENDENT E&P IN COUNTRY CORO ENERGY PLC ACTIVE E&P PLAYERS CURRENTLY IN MALAYSIA We believe that there is significant resource opportunity potentially available in Malaysia Need for more independent E&P’s in the INVESTOR PRESENTATION Q1 Malaysian sector Independents can often take a different view on project materiality and value creation Smaller greenfield and re-development projects can be very material to smaller companies Some very notable success stories in Malaysia such as IPC’s Bertam field and Enquest’s Seligi PM8 MALAYSIAN DISCOVERED RESOURCES
21 UPSTREAM RESTRUCTURING IN MALAYSIA & SE ASIAN REGION
NEW CORO ENERGY PLC ENTRANTS? INVESTOR PRESENTATION Q1
SCDM ENERGY
UPSTREAM RESTRUCTURE
22 UPCOMING NEWSFLOW
YEARLY 2020 2021... Q1 Q2 Q3 Q4 Q1 Q2 CORO ENERGY PLC
DUYUNG PSC INDONESIA CPR GSA FIELD DEVELOPMENT INVESTOR PRESENTATION Q1
BLOCK 2A PSC NEGOTIATIONS PSC AWARD MALAYSIA
MALAYSIA BUSINESS DISCOVERED RESOURCE ROUND DEVELOPMENT
REGIONAL M&A SCREENING AND NEGOTIATION, CAPTURE UPCOMING ASSET NEWSFLOW
23 APPENDIX CORO ENERGY PLC INVESTOR PRESENTATION Q1
APPENDIX
24 SE ASIA HEADLINES 1 NEW DISCOVERIES & GROWING ACREAGE POSITION CORO ENERGY PLC
Conoco Phillips & Repsol granted West Ganal PSC in East Corridor PSC extension in Sumatra Kalimantan award in for 20 years Indonesia to ENI as Operator INVESTOR PRESENTATION Q1 Corridor currently doing 830 mmscf/d Award contains the 600 bcf Maha gas field Estimated 2.5 Tcf of gas reserves remaining Discovery will be tied back to the
ENI Jankrik gas hub in Kutai basin REPOSL KBD DISCOVERY February 2019 - Repsol & PETRONAS 2 TCF discovery Merakes First Gas planned for onshore Sumatra, Indonesia 2021 through Jankrik gas hub Kali Berau Dalam encountered fractured basement pay and tested at 45 mmscf/d New discovery in well established basin REPSOL SE ASIA and in known play BLOCKS Discovery only 25km away from HEADLINES 1 OPERATED infrastructure NON-OPERATED Discovery to be developed through BASEMENT adjacent Corridor PSC 0 50 100KM 25 SE ASIA HEADLINES 2 NEW DISCOVERIES & GROWING ACREAGE POSITION
MARCH 2019 JUNE 2019 JULY 2019 PTTEP ACQUIRES PTTEP, KUFPEC & PETRONAS ENI 2-3 TCF DISCOVERY MURPHY MALAYSIA 2-3 TCF DISCOVERY SARAWAK, OFFSHORE VIETNAM MALAYSIA CORO ENERGY PLC $2.12 Bn acquisition, assets in Sabah, SK410B discovery with Lang Lebeh Very important discovery in Block 114, Sarawak & Peninsula Malaysia exploration well; critically for PTTEP discovery Song Hong Basin made three years after block award 274 MMboe 2P reserves, 48 Mboepd 100 metre pay zone discovered in production Tested at 41 mmscf/d and encountered Ken Bau-1X exploration well
252m of net gas pay INVESTOR PRESENTATION Q1 PTT has a ‘Coming Home’ strategy Three years from licence award to discovery
MALAYSIA SARAWAK GAS DISCOVERY MAP BLOCK 114 AND KENBAU GAS DISCOVERY MAP
LEGEND SK-2A GAS
OIL PTTEP RECENT MALAYSIA SARAWAK BASIN DISCOVERY ENI RECENT GAS PIPELINE VIETNAM DISCOVERY PLANNED BRUNEI DARUSSALAM CHINA 10 DASH LINE SE ASIA LEGEND HEADLINES 2 GAS
OIL MALAYSIA GAS PIPELINE 26 SOURCE: WOOD MACKENZIE; ESRI ASIA PACIFIC TOP DISCOVERIES OF 2019
Gas Liquid
LANG LEBAH, MALAYSIA CORO ENERGY PLC
KEN BAU, VIETNAM INVESTOR PRESENTATION Q1
KALI BERAU DALAM, INDONESIA
YONGLE 8-3, CHINA
BRATWURST AUSTRALIA TOP DISCOVERIES 0 100 200 300 400 500 600 MMBOE
27 SOURCE: WOOD MACKENZIE CORO ENERGY PLC INVESTOR PRESENTATION Q1
28