COMPANY PROFILE.

Transcription

1 COMPANY PROFILE

2 Disclaimer The information contained herein is owned and maintained by Black Platinum Energy Ltd. ( BPE ). You agree to the following terms and conditions when utilizing this information and although BPE endeavors to provide accurate and current information, it does not warrant or make any representations or claims as to the validity, correctness, currency, timeliness, completeness or otherwise of the information provided. In addition, this information is not intended to provide specific legal, accounting, financial, tax or other advice to any user. Copyright and Trademark All material herein is protected by copyright. The material may be used and copied for non-commercial, personal or educational purposes, provided that all information used is not modified and that copyright or trademark notices are not deleted. Any other use of this material without BPE s written permission is prohibited. Except as otherwise noted, the trademarks and logos displayed herein belong to BPE and may not be used without BPE's prior written permission. Third-party trademarks displayed herein may not be used without BPE's prior written permission. Service Only This information is not intended to be used in a solicitation manner or for the offering of securities in any jurisdiction. The material herein is not intended to modify, qualify, supplement or update information disclosed under corporate and securities legislation of any jurisdiction related to BPE and should not be used for the purpose of making investment decisions concerning BPE shares. Exclusion of Liability BPE and its affiliates and related companies shall not be liable for any claims, expenses, loss of profits or damages (including direct, indirect, special or consequential damages) arising from: the use of or dependence on information contained herein any error or omission in such information or failure to update information in a timely manner; and all other related matters even if BPE is made aware of possible claims, expenses, damages or losses. Forward-Looking Statements Certain statements contained herein constitute forward-looking statements or information (collectively referred to as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, among others, statements regarding: the performance characteristics of BPE's oil, natural gas liquids ("NGL") and natural gas properties; oil, NGL and natural gas production levels; the size of the oil, NGL and natural gas reserves; projections of market prices and costs; supply and demand for oil and natural gas; expectations regarding the ability to raise capital and to continually add to reserves through acquisitions and development; future funds from operations; capital programs; commitments; debt levels; future royalty rates; future operating costs; future depletion, depreciation and accretion rates; treatment under Governmental regulatory regimes and tax laws; and capital expenditure programs. The forward-looking statements contained in this booklet are based on certain key expectations and assumptions made by BPE, including expectations and assumptions relating to prevailing commodity prices and exchange rates, applicable royalty rates and tax laws, future well production rates, the performance of existing wells, the success and timing of drilling new wells, the ability to obtain necessary Government approvals, the availability of capital to undertake planned activities and the availability and cost of labour and services. Although BPE believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general, such as operational risks in development, exploration and production, delays or changes in plans with respect to exploration or development projects or capital expenditures, the uncertainty of estimates and projections relating to production rates, costs and expenses, commodity price and exchange rate fluctuations, marketing and transportation, environmental risks, competition, the ability to access sufficient capital form internal and external sources and changes in tax, royalty and environmental legislation. Statements relating to "reserves" or "resources" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated, and can be profitably produced in the future. Readers are cautioned that the aforementioned list of factors and risks is not exhaustive. The forward-looking statements are made as of 1 July 2013 and, unless so required by applicable law, BPE undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained herein are expressly qualified by this cautionary statement. Disclosure Policies All references to dollars refer to United States dollars unless otherwise stated. Production data is presented on a before royalties basis unless otherwise stated. Certain crude oil and NGL volumes that have been converted to millions of cubic feet equivalent ("MMcfe") or thousands of cubic feet equivalent ("Mcfe") on the basis of one barrel ("bbl") to six thousand cubic feet ("Mcf"). In addition, certain natural gas volumes have been converted to barrels of oil equivalent ("boe") or thousands of boe ("Mboe") on the same basis. MMcfe, Mcfe, boe and Mboe may be misleading, particularly if used in isolation. A conversion ratio of 1 bbl to 6 Mcf is based on an energy equivalency conversion method primarily at the burner tip and does not necessarily represent the value equivalency at the well head. One million British thermal units ("MMBtu") is equivalent to 1 Mcfe plus or minus up to 20 percent, depending on the composition and heating value of the natural gas in question. GAAP Financial Measures The selected financial information presented herein has been prepared in accordance with Indonesian generally accepted accounting principles ("GAAP").

3 Black Platinum Energy Ltd. s Story a Catalyst for the Indonesian Upstream Sector Platinum is one of the rarest elements in the Earth's crust and is commonly used as a catalyst in chemical reactions. It was with this rarity and common use of platinum in mind that the Founding Shareholders chose the company name Black Platinum Energy. The initial purpose in starting the Company was to act as a catalyst for other small Indonesian upstream players; to boost their role in increasing the country s oil and gas reserves, which has been dominated by larger players. Historically, the Indonesian upstream sector has been dominated by the Super majors operating under Production Sharing Contracts, with most production and exploration currently carried out in the basins of Western Indonesia (the bulk of Indonesia s reserves are located onshore and offshore of central Sumatra and East Kalimantan). Indonesia s crude oil and gas production has declined over the last decade due to the maturation of producing fields and slower reserve replacement rates, caused by decreased levels of exploration and investment. Although Eastern Indonesia holds great exploration upside, the costs to operate are extremely high. Further, the Super majors have been reluctant to increase investment largely due to bureaucratic and legal uncertainties, as well as having other opportunities elsewhere which provide perceived greater return, thus creating a void in the Indonesia upstream sector. Despite these conditions, Indonesia (especially Western Indonesia), continues to be geologically attractive for small to intermediate size upstream players, like Black Platinum Energy who do not have abundant international opportunities, the need for elephant size fields and diverse risk portfolios or the technology available to the Super majors. Indonesia has a wide diversity of geological basins which continue to offer sizeable oil and gas potential to small and intermediate upstream players, with only 28 out of 128 basins extensively explored. Black Platinum Energy views the current situation in Indonesia to be similar with that which existed in the United States Lower 48 in the early 1980s where Super majors over time became less dominant and small to intermediate size upstream players began to achieve a reasonable share of the Lower 48 upstream market. Black Platinum Energy aims to be the catalyst and a leader in becoming one of these new intermediate upstream players in Indonesia, especially in the area of exploration.

4 Content About BPE Assets History Business Model and Strategies Corporate & Governance Structures Key Strengths Overview of Assets North Sokang PSC Sokang PSC North Makassar PSC North Ganal PSC Titan PSC North Madura PSC Corporate Responsibilities

5 History The Black Platinum Energy Ltd. (BPE) founders and executive directors began the process of developing the Company in 2008, with the acquisition of two Joint Study Agreements ( JSA s ) with a certain group of investors. BPE was subsequently awarded two Production Sharing Contracts ( PSCs ); the North Makassar and North Madura PSCs in 2009 and 2010 respectively. In the two years since the acquisition of those JSAs/PSCs, BPE management also acquired several other assets, including the North Sokang and Titan JSA which were subsequently awarded PSC s in November The ownership of all these related assets came under the sole control of the parent company, BPE, on 23 April Subsequently, the Company won a direct tender for the Sokang PSC in December 2010 and was awarded the North Ganal PSC in September of 2011.

6 Business Model and Strategies Value Creation Diagram Strategies To focus on creating value through exploration and appraisal activities, later transferring the operatorship of commercially discovered/appraised hydrocarbons before or after the Plan of Development stage to a well-established and proven industry player or existing joint venture partner (see the Value Creation Diagram); To focus on offshore western Indonesian exploration areas/activities near to existing infrastructure which significantly reduces transportation/marketing risks and also provides a balance between export and domestic hydrocarbon sales; To capitalize on existing export gas markets which include LNG shipments via FLNG or the Bontang LNG facility to Japan, Korea and Taiwan as well as piped gas to Singapore and Malaysia and the growing diversified lucrative domestic gas markets on Natuna Island or Kalimantan, and Java to monetize gas discoveries; To continue leveraging the management s extensive network of Indonesian contacts to identify new assets; To maximize asset value, reduce risks and minimize costs during the early stages of the Company s life by way of farmouts at the appropriate time and value. To build a sustainable portfolio of Indonesian exploration and/or non-operated development/producing assets which can be leveraged.

7 Corporate Structure Shareholders Investors Investors MK Platinum Ltd Dunearn Investments (Mauritius) Pte Ltd Stirling Heights Investment Ltd Black Platinum Energy LLC Founding Shareholders 100% Black Platinum Energy Ltd (Seychelles) Black Platinum Energy Ltd Representative Office 100% Baruna Nusantara Energy Ltd North Ganal Energy Ltd 100% 100% 100% 100% 100% Baruna Oil & Gas Ltd North Madura Energy Ltd North Sokang Energy Ltd Black Platinum Investments Ltd North Makassar PSC North Ganal PSC Titan PSC North Madura PSC North Sokang PSC Sokang PSC Statoil 40% Niko Resources (Operator) 30% Black Platinum Energy Ltd 30% ENI (Operator) 20% Statoil 19% GDF SUEZ 10% Niko Resources 31% Black Platinum Energy Ltd 20% AWE (Operator) 40 % Mitra Energy 25 % Black Platinum Energy Ltd 25% PT Sillo Maritime Persada 10% AWE (Operator) 50 % Mitra Energy 25% Black Platinum Energy Ltd 25% Black Platinum Energy Ltd (Operator) 100% Black Platinum Energy Ltd (Operator) 100%

8 Governance Structure Board of Directors W. Judiana Ardiwinata, Director Larry Luckey, Director David Jenkins, Non- Executive Director Malcolm Moller, Non- Executive Director Conrad Benoiton, Non- Executive Director Advisory Committee Charles Goodyear George Tahija

9 Board of Directors W. Judiana Ardiwinata (Director - Founding Shareholder) Mr. Ardiwinata has more than 34 years experience in the Indonesian oil and gas industry, which includes his tenure as President of Indonesia s largest oil producer, PT. Caltex Pacific Indonesia. A graduate of the Institute of Technology at Bandung (ITB), Judi has held numerous positions in engineering, project management, operations and human resources, as well as overseas postings in Dallas and Bakersfield in the USA. In 2006 Judi retired as a Commissioner of PT. Chevron Pacific Indonesia and co-founded PT. Ephindo, a successful national energy company with significant coal bed methane holdings. Judi is the Chairman and CEO of BPE, Chairman of PT. Ephindo and is also a co-founder of PT. Baruna Nusantara Energy, which was the predecessor of the BPE subsidiary that now operates the North Makassar PSC. Larry Luckey (Director - Founding Shareholder) Mr. Luckey has over 24 years of experience in strategic planning, budgeting, acquisitions, divestments, initial public offerings, financing arrangements, auditing, financial investigations, due diligence reviews, accounting advice, taxation, joint venture audits, Sarbanes Oxley readiness reviews, management efficiency audits, and internal controls, primarily in the oil and gas industry. Trained and qualified as a certified public accountant in the United States with oil and gas experience in Southeast Asia (18 years) and West Africa (2 years). Before joining the Company, Larry was previously the Director of Planning and Strategy at PT MedcoEnergi Internasional Tbk, Indonesia s largest publicly listed oil and gas company, responsible for Planning, Budgeting and Portfolio & Performance Management, Risk Management, and New Business Incubator. Larry was also the Partner Advisor and Leader of the Southeast Asia Energy, Utilities and Mining practice encompassing all assurance, tax and business advisory services at PricewaterhouseCoopers, for over 20 years prior to joining PT MedcoEnergi Internasional Tbk. David Jenkins (Non-Executive Director) Mr. Jenkins has over 50 years international experience in the oil and gas industry, including senior executive roles as Chief Executive Technology of BP Exploration and Director Technology of BP Group. David worked for British Petroleum from where he was a key person involved in BP exploration around the world. David previously held the positions of Chief Geologist - BP Exploration Worldwide, Senior V.P. Exploration - BP Canada, General Manager - BP Exploration Worldwide. He was also a Board member for BP Canada and BP Exploration Co. David holds or has held a number of board and advisory positions with BHP Billiton plc, Orion International Inc., Halliburton Co., Celerant Consulting and Cuadrilla Resources Ltd. David is a graduate of the Colorado School of Mines and has a Phd in geology from Cambridge University, England. David has received a number of industry service awards and has published several technical papers.

10 Board of Directors Malcolm Moller (Non-Executive Director) Mr. Moller is the Managing Partner of the Mauritius and Seychelles offices of Appleby and is a member of the Corporate & Commercial department and both the Insurance and Structured Finance teams. He specializes in advising financial institutions on financial regulation, regulatory capital issues, financial institution M&A, and insurance-related transactions. He advises on private equity funds, hedge funds, derivatives transactions and securities offerings, as well as a range of corporate and corporate finance transactions. Conrad Benoiton (Non-Executive Director) Mr. Benoiton is currently the Chief Executive Officer of Seychelles Petroleum Company Limited. Conrad previously served as Chairman of Air Seychelles Ltd. Nouvobanq and Seychelles International Business Authority and held directorship on several Boards including Seychelles Broadcasting Corporation, Seychelles Public Transport Corporation, Seychelles Hotels, the Manpower Training Development Board and is currently a director on the Board of Select Seychelles and the Seychelles Chamber of Commerce and Industry.

11 Advisory Committee George Tahija - Founding Investor and Advisor Mr Tahija is a major Shareholder and the Chief Executive Officer of PT Austindo Nusantara Jaya, a large Indonesian conglomerate involved in multi-finance, healthcare, agriculture, rental services, mining, power and tobacco trading businesses. George was the founding investor in PEARL Energy Ltd which was later sold to a large Middle Eastern entity. The Tahija family has been involved from the 1950s in the Indonesian oil and gas industry starting with Julius Tahija, the patriarch of the family being the first Indonesian to be President of a large multi-national oil company, PT Caltex Pacific Indonesia Inc. The Tahija family remains the local partner of choice for Chevron. George is a Trisakti graduate with a degree in mechanical engineering and an MBA from Darden School of the University of Virginia, USA. He also contributes to educational, economic, environmental and social development through his participation in various non-for-profit organizations in Indonesia. Charles Chip Goodyear - Founding Investor and Advisor Mr. Goodyear was previously Chief Executive Officer of BHP Billiton, the world s largest diversified resources company. He joined BHP as Chief Financial Officer ( ), served as Chief Development Officer ( ), appointed CEO (2003) and retired from company in Prior to BHP, Chip was President of Goodyear Capital Corporation and Executive Vice-President & CFO of Freeport-McMoran. He began his career as an investment banker at Wall Street brokerage, Kidder Peabody, advising companies on mergers, acquisitions and financing in the natural resources sector. He graduated from Yale University with a Bachelor of Science degree in geology & geophysics and an MBA from Wharton School of the University of Pennsylvania, USA. He has been a Member of the National Petroleum Council and International Council on Mining and Metals.

12 Key Strengths The Company has a number of key strengths and competitive advantages which benefit all investors: Asset Portfolio a well developed highly prospective Indonesian oil and gas exploration portfolio consisting of 6 PSC s with a large footprint of 5,534,000 acres of gross undeveloped acreage; exploration assets which can be easily monetized/ developed if successful, due to the proximity of existing infrastructure which provides ready access to export and domestic oil and gas markets (Bontang LNG plant, the West Natuna and East Java pipelines) or use of FLNG technology; a significant oil and gas exploration portfolio located in a stable environment - Indonesia, which has been active in the sector for over 125 years and provided a sustainable, secure and profitable environment for investors whilst being integrated into its economy; Shareholders, Investors and Management founding shareholders and an investor group with the pre-requisite experience, track record and leadership to successfully execute the Company s business plan; senior personnel, advisors and consultants with proven exploration success in deepwater and shallow water exploration portfolios (Northeast Kalimantan, East Java and East Natuna); a team comprising of employees, consultants and investors with an extensive knowledge of Indonesian petroleum systems and associated technologies needed to be applied; an executive management team with wide ranging expertise and a proven Indonesian track record in business development, exploration, gas marketing, Government relations, financing, accounting, tax, M&A and internal controls; an extensive network of Indonesian Government and industry contacts to be utilized in building the Company; Financial Position a largely fully funded exploration program (as a result of completing two private placements totaling $92 million in addition to founding shareholder contributions of $11 million); farm outs on a number of its existing assets generating carried interests and farm-out opportunities in the asset portfolio available to generate further value and/or cashflow whilst still retaining significant value and reducing risks; existing reputable joint venture partners to assist in funding and evaluating existing and new exploration opportunities ENI NIKO RESOURCES AWE MITRA ENERGY GDF SUEZ STATOIL

13 Overview of Assets The Company has a balanced portfolio of six Production Sharing Contracts (PSC's) comprising of 5.5 mm gross acres in proven basins near existing infrastructure which provides access to export and domestic gas markets.

14 North Sokang PSC / Sokang PSC Location: East Natuna Sea Combined Area: 2.441mm gross acres Water Depth: 110 meters BPE WI: 100% both blocks (operator) Drilled 2 successful gas discovery wells in North Sokang (Dara 3 & 4) Completed a 2D seismic program in both blocks North Sokang 3D seismic volume Play Concept: Proven by-passed Pliocene gas Shallow wells Large 4-way structures Multiple stacked reservoirs 1-10 meters each Dara field discovered gas resources BCF

15 East Natuna and an FLNG or Pipeline Infrastructure and Development Concept Dara field s P50 Discovered Resources can be developed and brought on-stream by 2019 via FLNG or pipeline to ready, lucrative export markets. Future discovered resources may also be similarly commercialised Possible Tie-in WNTS Pipeline (Belut Field) 420km from East Block Dara Field (main compression platform tie-in) 360 km from East Block Dara Field (Belut Field tie-in) Capacity available in pipeline Current Capacity of 700 MMscfd Current usage 465 MMscfd Can be increased to 1000 MMscfd with compression FLNG vessel moored in Dara gas field Asset on Natuna Island (yet to be built) 190 km from East Block Dara Field Possible pipeline to downstream asset yet to be built

16 North Makassar PSC / North Ganal PSC Location: Makassar Strait Combined Area: 931 mm gross acres Water Depth: 1,500-2,000 m BPE WI: 30% - North Makassar PSC and 20% - North Ganal PSC (both non-operated) Drilled 1 well (Lebah-1) in North Ganal PSC which was suspended as a gas discovery and is being further evaluated Drilled 1 well (Pananda-1) in North Makassar PSC which is being further evaluated 3D Volume Play Concepts: Multiple proven in basin (both PSCs) Deepwater Miocene Turbidites Pliocene Channel sands All plays defined by 3D seismic Kitchen, trap types, seal, reservoir all proven in basin

17 Bontang Infrastructure and Makassar Development Concept Bontang LNG Plant Under-utilized by 1 Bcf/d Long term use guaranteed by Chevron DW development New contracts indexed to Oil Robust domestic market $6/mcf Deepwater development concept utilizes FPU production hubs and tie-in to Bontang LNG plant Current Deepwater developments include Jangkrik, Gehem, Gandalo, Gandang, and Maha

18 Titan PSC / North Madura PSC Location: East Java Sea Combined Area: mm gross acres Water Depth: 60 m BPE WI: 25% both blocks (nonoperated) Drilled 1 well (Atlas 1) in Titan PSC which was plugged & abandoned as non-commercial 2013 Program: Seismic and G&G activity to be undertaken in Titan PSC 2015 Program: 1 well to be drilled in North Madura PSC Play Concepts: Kujung Reef On trend proven analogs Source, trap, seal, reservoir all proven in basin Titan Gas same province as Kepodang and Lengo North Madura oil/gas same province as West Madura

19 East Java Domestic Gas Market and Development Concept East Java Domestic Market Undersupplied by 400 mmscf/d Robust pricing $5-8/mcf Growth underpinned by fertilizer, power Development concepts: shallow water CPP & Wellhead platforms Tie-in to existing infrastructure at Gresik

20 Corporate Responsibilities The Black Platinum Energy Ltd. (BPE or the Company) along with its employees is committed to practice the highest standards of corporate governance. The manner in which Company and its employees are to conduct day to day business is defined by the Company s Code of Conduct, which serves to protect the Company, its employees and other stakeholders from unnecessary and unwanted financial, legal and reputational issues/exposures. Code of Conduct Anti Corruption Policy Communications Policy BPE is also committed to the safety and health of its staff, contractors, and other stakeholders affected by its operations. The Company strives to promote and ensure the highest standards of health, safety and environmental practices. Drug & Alcohol Policy Environmental Policy Health & Safety Policy - Available on website

21 Black Platinum Energy Ltd. Level 2B, Caravelle House, Manglier Street, Victoria, Mahé, Seychelles. Black Platinum Energy Ltd. Representative Office: Plaza City View, 2 nd floor, Jalan Kemang Timur No. 22 Jakarta Indonesia. Phone: (6221) Fax: (6221) Black Platinum Energy Ltd. Investor Relations Larry Luckey larry.luckey@blackplatinumenergy.com

22 Press Release The Dara 3 & 4 Exploration Wells Provide a Catalyst for Black Platinum Energy In November 2012, Black Platinum Energy s wholly owned subsidiary, North Sokang Energy Ltd., completed two exploration wells in its North Sokang PSC, located in the East Natuna Sea. Both wells Dara 3 & 4 targeted the Upper Pliocene sands and were plugged and abandoned as gas discoveries. The Dara 3 well was drilled to a depth of 970 meters and intersected net gas pay of 18 meters. Dara 3 was successfully flow tested at a rate of 9 mmscf/d with 1.9% CO2 and no water. The nearby Dara 4 well was drilled to a depth of 770 meters and intersected net gas pay of 5 meters. A gas sample of 1.3% CO2 was recovered from one of the Upper Pliocene sands. The Dara 4 well was not tested. Black Platinum Energy is the Operator and holds a 100% interest in the North Sokang PSC. Black Platinum Energy s COO Elliot Yearsley said that the objective of the drilling program was to confirm the viability of the Upper Pliocene sands as low CO2 producible reservoirs. Black Platinum Energy s CEO Judiana Ardiwinata added that the Dara 3 and Dara 4 wells opened up the Pliocene play in Black Platinum s two East Natuna blocks covering over 13,000 sq km for further appraisal and exploration. December 4, 2012 For further information, please contact: Larry Luckey, Chief Financial Officer and Head of Investor Relations at larry.luckey@blackplatinumenergy.com

23 Copyright Black Platinum Energy Ltd.