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DISCLAIMER The information in this document is in summary form and - - PowerPoint PPT Presentation

DISCLAIMER The information in this document is in summary form and should not be relied upon as a complete and accurate representation of any matters that a potential investor should consider in evaluating JK Tech Holdings Limited (the


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DISCLAIMER

The information in this document is in summary form and should not be relied upon as a complete and accurate representation of any matters that a potential investor should consider in evaluating JK Tech Holdings Limited (the “Company”). While management has taken every effort to ensure the accuracy of the material in the presentation, neither the Company nor its advisers has verified the accuracy or completeness of the information, or any statements and opinions contained in this presentation. This presentation is provided for information purposes only, and to the maximum extent permitted by law, the Company, its officers and management exclude and disclaim any liability in respect of the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission from, any information, statement or opinion contained in this presentation or anything done in reliance on the presentation. This presentation may contain forward looking statements. The words 'anticipate', 'believe', 'expect', 'project', 'forecast', 'estimate', 'likely', 'intend', 'should', 'could', 'may', 'target', 'plan‘ and other similar expressions are intended to identify forward-looking statements. Indications

  • f, and guidance on, future earnings and financial position and performance are also forward-looking statements. Forward-looking

statements are subject to risk factors associated with the Company’s business, many of which are beyond the control of the Company. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements. You should not place undue reliance on forward-looking statements and neither the Company nor any of its directors, employees, servants, advisers or agents assume any obligation to update such information. In addition to its technology business the Company is involved in exploration and development and must continue to fund its exploration, feasibility and possibly development programs through its cash reserves, equity capital or debt. Therefore the viability of the Company is dependent upon the Company’s access to further capital through debt, equity or otherwise. There can be no guarantee that the Company will be able to successfully raise such finance. This presentation should not be considered as an offer or invitation to subscribe or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation. You should not act and refrain from acting in reliance on this presentation material. Nothing contained in this presentation constitutes investment, legal, tax or other advice. This overview of the Company does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the Company’s

  • prospects. Before making an investment decision, you should conduct, with the assistance of your broker or other financial or professional

adviser, your own investigation in light of your particular investment needs, objectives and financial circumstances and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation and making any investment decision.

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WHO IS JK TECH

Acquirer of E & P projects  Leverage off relationships of our major shareholders  Currently single energy asset – Mustang  Focus on development & producing assets

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E & P TRANSFORMATION

 May 2014 Changed to energy focus  July 2014 Acquisition of Mustang  August 2014 S$60,000,000 in new equity @ $0.40  September 2014 Commenced engineering studies Q4 2014 / Q1 2015 Drill 3 x Mustang wells

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Capital Structure Share price $0.39 Shares outstanding 290,939,065 Market Capitalisation $113.0 million Available Cash 3 $21.0 million Debt Nil Enterprise Value $92.0 million Proven Reserves (1P)1,2 10.8 MMBOE Proven + Probable Reserves (2P)1,2 19.8 MMBOE

1 Net to 46.8% Working Interest 2 DeGolyer & MacNaughton Reserve report dated April 2012 3 Available for use on energy projects

Options

Total Options Outstanding 325,000,000 Ezion Holdings 260,000,000 SF Ventures 60,000,000 Company Directors 5,000,000 Exercise Price $0.09 Expiry May 2019

COMPANY SNAPSHOT @ 29 September 2014

Ang Yew Jin Eugene 18.4% Ezion Holdings 14.4% Ang Ai Nyuet 5.0% SF Ventures 4.5% Public 57.7%

Major Shareholders

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JK - PROJECT CRITERIA 

Focus on Proven Reserves (1P) – known reservoir characteristics  Generate cash within 12-24 months from acquisition  Hydrocarbon basins with existing core infrastructure  Mitigate risk by forming investment partnerships within jurisdictions  Convert major capex to opex through project partnering - returns  Cash flow diversification – multi projects / jurisdictions  Non-Operate to reduce overheads  Utilise reserve based lending (RBL) to maximise shareholder returns

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INVESTMENT HIGHLIGHTS MUSTANG - ADVANCED DEVELOPMENT PROJECT

  • Mustang # 1 well (Q2 2012) successfully targeted Kuparuk Sands
  • Kuparuk Sands have produced over 2.9 billion BO on the North Slope 1
  • First oil in Q2 2016
  • Targeting 15,000 BOPD (100%)
  • Material Working Interest – 46.8% WI – Cashflow impact
  • ANS crude pricing ~5% premium to WTI
  • 10.8 MMBO in Proven Reserves (1P) – Independently certified 2
  • 19.8 MMBO in Proven & Probable Reserves (2P) - Independently certified 2

1 Alaskan Oil and Gas Conservation Commission (AOGCC) 2 DeGolyer & MacNaughton reserve report dated April 2012

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North Slope Leaseholds 1

CRU - (CoP) Tofkat Unit KRU - CoP Oooguruk (Caelus) Mustang Prudhoe Bay (BP) Beechey Point Unit Badami (Savant) Badami Unit Expansion

Appaloosa Prospect Area

Adjacent to Mustang and Kuparuk River Unit (CoP)

27,415 non-unitized acres

Full 3D seismic coverage

60 MMBO resource in mapped field extensions and prospects Beechey Point Unit

10,757 acres plus 3,880 adjacent non-unitized

BRPC drilled 3 wells and flow tested North Shore #1 at 2,092 bopd

26 MMBO resource in discovered & mapped pools Badami Unit Expansion

2,240 unitized net acres outside of current producing area

East Mikkelsen Bay State 1 well – discovered 25’ Flaxman sand

16 MMBO net resource, needs further delineation Tofkat Unit

Adjacent to Colville River Unit (CoP) - 9,147 acres

Brooks Range Petroleum drilled 1 well with 2 sidetracks, discovered thin Kuparuk reservoir

40 MMBO of resource, needs further delineation

1 All resources Brook Range Petroleum Company estimates and are net to the 100% working interest

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Southern Miluveach Unit - Mustang

Mustang consists of 8,960 net developable acres with 27,000+ adjacent prospective acres

An all-weather gravel road, production pad and a State

  • f Alaska approved development plan is in place

USD$81m has been invested in an all-weather road, development pad, seismic and appraisal drilling by prior owners and acquired by the WIO

The Kuparuk River Unit, adjacent to the Mustang field, is the 2nd largest oil pool in North America and has produced 2.9 billion Bbls since 1982 1

In the last 35 years, 17 billion Bbls produced on Alaska’s North Slope 1

The Kuparuk-2M drillpad adjacent to Mustang and in the same field and reservoir has produced 77 million Bbls since 1992 1

Area of Interest

Kuparuk River Unit (ConocoPhillips) Kuparuk -2M Mustang

1 Source: Alaska Oil and Gas Conservation Commission (AOGCC)

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Infrastructure

4.3 miles all-weather road with access to the Mustang development pad

All-weather development pad covers 19 acres & 250 metres from Alpine common carrier pipeline

Infrastructure in place allows for year round

  • perations

Mustang field can be accomplished from the exisiting development pad

The Mustang production facility will be located on the development pad

Approximately USD$31m has been invested to complete the development pad and the all-weather road

Since November 2013, the pad has generated approximately USD$3.9m of lease income from other North Slope operators utilizing the pad

All-Weather Road and Development Pad

Alpine pipeline

N

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Drilling Plan

Phase 1 – delineation and testing

  • Nabors Rig 16E; planned mobilization mid-late

November, 2014

  • Mustang # 2 – 9,200 feet, 21 days, flow test
  • Mustang # 3 – 12,678 feet, 32 days, flow test
  • Mustang # 4 – 11,600 feet, 29 days
  • Estimated cost $56m with contingency
  • Planning working interest owners Phase 1 debt issue

Phase 2 – field drill out

  • 16 wells including 10 horizontal producers and 6

vertical water injectors

  • 475 days drilling
  • Planning working interest owners Phase 2 debt issue

Production Facility Plan

Three phase central processing facility:

 Oil, gas, and water separation  Water handling and gas compression modules

Two tank farms

 Crude and diesel and chemicals

Well tie-ins, pipe racks, headers and well test separator for production allocation

Operations camp, warehouse control room & communications tower

Planned milestones

 Long lead equipment ordered – Q1 2015  North Slope install – Q4 2015  First oil – Q2 2016

Engineering and vendor selection underway

The facility is constructed in moveable modules

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MUSTANG OPERATIONS CENTRE (“MOC”) CONVERTS MAJOR CAPEX TO OPEX

15,000 BOPD CAPACITY 10MW POWER PLANT 12 PRODUCTION WELLS & 20 INJECTORS YEAR ROUND CAMP

  • Total cost ~$225 million
  • Alaskan Industrial Development & Export

Authority (“AIDEA”) – EDB Equivalent - to invest $50 million

  • Remainder debt finance
  • Operated by Brooks Range Petroleum

Company (“BRPC”)

  • Lease payments by working interest owners
  • ver 7 years from production
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Gulf of Valdez Export Terminal

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North Slope - Alaska

  • US Geological Service (USGS) estimates that

Alaska’s North Slope has more oil than any other Arctic nation:

  • OIL:

Est. 40 billion barrels

  • f

conventional oil (USGS & BOEMRE)

  • GAS: Est. over 200 trillion cubic feet
  • f conventional natural gas (USGS)
  • Alaska

has world-class unconventional resources, including tens of billions of barrels of heavy oil, shale oil, and viscous oil, and hundreds of trillions of cubic feet of shale gas, tight gas, and gas hydrates Compared to most hydrocarbon basins, Alaska is relatively underexplored, with 500 exploration wells on the North Slope, compared to Wyoming’s 19,000 ! 1

1 Alaskan Oil and Gas Conservation Commission (AOGCC)

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Alpine Project – Colville River Unit

  • Commenced production in 2006
  • ConocoPhillips / Anadarko
  • 450 million BO produced
  • Annual production ~ 21 million BO

Kuparuk Project – Kuparuk River Unit

  • Commenced production in 1981
  • ConocoPhillips / BP / Chevron
  • 2.5 billion BO produced
  • Annual production ~ 36 million BO

Prudhoe Bay

  • Commenced production in 1977
  • BP / ConocoPhillips / Exxon
  • 13.2 billion BO produced
  • Annual production ~100 million BO

North Slope is Elephant Country 1, 2

1 Alaskan Oil and Gas Conservation Commission (AOGCC) 2 Individual company’s websites

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Working Interest Owners

35% working interest

Privately owned by Thyssen Family

Houston-based E & P company with operations on the US Gulf Coast

Working Interest Owners (WIO)

Mustang Operations Centre - Financing Providers

Magnum Energy Partners Charisma Energy Services 17

10% working interest

New York based energy investment manager

6.1% working interest

NYSE listed - large global rig contractor with operations on North Slope

Singapore-based energy investment holding company

Provides mechanical and electrical engineering services

Created by State of Alaska Legislature in 1967

Equivalent of Singapore EDB

AIDEA funded $20m to build existing all-weather road and production pad

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Brooks Range Petroleum Company (“BRPC”)

Project Operators

BRPC

  • Operator of the Mustang field and the other

leaseholds

Formed in 2005 & based in Anchorage, Alaska

Experienced management team, average 27 year’s experience in Alaska with BP, ConocoPhillips, ARCO, Union Texas and Amoco

Responsible for managing the planned development of Mustang including drilling and production facility construction

BRPC is responsible for accounting and submisission of all tax rebate applications on behalf of the WIO and the Mustang production facility financing providers

BPRC has in the past successfully applied for and received USD$90m of tax rebates from the State of Alaska

Bart Armfield - Chief Executive Officer

  • 30 years of hands-on field leadership
  • Experience includes exploration and development drilling

support, field development, processing, and fabrication and installation of facilities on Alaska North Slope (“NS”)

Larry Vendl – VIP Exploration

  • 33 years industry experience 25 years in Alaska
  • Geologist for BP, worked extensively throughout NS
  • In-depth understanding of NS geology, exploration, new

developments, field operations and drilling

Mark Wiggin – VP Engineering & Develop.

  • 30 years of oil and gas experience in the Alaska oil industry
  • Expertise includes facility planning, production, reservoir,

new ventures exploration engineering, and project engineering and management.

  • NS experience includes facility engineering, production

&operations engineering, field start-up and commissioning lead for multiple new North Slope oilfields.

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Alaska’s Clear and Equitable Shares (ACES)

  • Alaskan Government incentive program to stimulate exploration and development
  • Stabilise and reverse TAPS production decline currently @ ~25% capacity
  • 45% of drilling costs & 65% seismic costs rebated
  • Cash rebate - Not repayable
  • Not contingent on success
  • Reduces risk
  • Increases IRR
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Mustang Field – Development Plan

Mustang # 1 Well successfully drilled  Completed Q1 2012 Plan of Operations  Approved March 2013 Plan of Development  Approved November 2013 Mustang Road and Production Pad  Completed May 2014 Mustang Ops Centre (“MOC”) Engineering Design  Commenced Q3 2014 Drill 3 x Mustang Wells Commence Q4 2014 MOC Facility Construction Commence Q1 2015 Commissioning Commence Q4 2015 First Oil Q2 2016

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OVERVIEW 

Mustang is a significant development project  Located in a prolific oil basin targeting known reservoirs  Existing core infrastructure in place  Significant 1P & 2P Reserves  Generate cash within 18 months  No additional significant cash requirements  Experienced Operator - BRPC  Financially strong partners – Thyssen Family  AIDEA investment in MOC  Material government cash rebates

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CONTACT DEAN L GALLEGOS JK TECH HOLDINGS LIMITED CHIEF FINANCIAL OFFICER + 65 9108 2551 Dean.Gallegos@jkoilexp.com