sailing ahead - listed...

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


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

1

2

3

4

5

Key Investment Highlights


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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)


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


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


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%


Corporate Update


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


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


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


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/

sailing ahead - listed...

Documents