SUMATEC 10 th July 2013 Presentation to Fund Analysts By Chris - - PowerPoint PPT Presentation

THE Leading Malaysian Independent Oil & Gas Company

SUMATEC

SUMATEC

THE Leading Malaysian Independent Oil & Gas Company Sumatec Resources Berhad 10th July 2013 Presentation to Fund Analysts By Chris Dalton Chief Executive Officer

THE Leading Malaysian Independent Oil & Gas Company

SUMATEC

Key Messages

• Deliver Long Term Profitable Growth
• Proven Mature Asset Portfolio
• Creating Value for Share Holders

THE Leading Malaysian Independent Oil & Gas Company

SUMATEC

Production Sharing Contracts (PSC) Joint Investment Agreements (JIA)

Service

Service Companies Exploration Companies

E&P

Equity / Concession Risk Service Contracts

SUMATEC

Operator: E&P’s

Dialog Scomi UMW Uzma SapuraKencana Hibiscus Wah Seong

Why Sumatec is Different!

THE Leading Malaysian Independent Oil & Gas Company

SUMATEC

Why Kazakhstan

Developed economy and legal system Stable political environment Well established Oil & Gas legislation Established export routes for sale of hydrocarbons Concession contracts as opposed to PSC & RSC Geopolitical Advantages 30billion bbls of proven reserves (ranked 11th in the world, largest in central asia) 1.6mmbbl/day production, double by 2020 Low risk onshore mature assets High potential of increasing reserves in our asset Geological Advantages

Largest land locked country & 9th largest globally GDP Per Capita 13,892USD (2012 estimate)

THE Leading Malaysian Independent Oil & Gas Company

SUMATEC

Why Mature Assets

< 1 yr 1 yr 2 – 3 years

• Licensing Round
• Contract

Negotiation

• Work Program
• Fiscal Regime

3 - 5years

• Geological Study
• Seismic Survey
• Exploration Wells
• Reservoir

Mapping

• Construction of

surface facilities

• Drilling of

production wells

• Delineation wells
• Confirm Reserves
• Development

Concepts

• Upgrade surface facilities
• Expanded drilling

program

15 – 20 years Bidding/ Acquisition Exploration Appraisal Early Production Commercial Scale Production $5-10m $30-40m $15-20m $30-40m More than $50m

20 40 60 80 100 120 140

• High risk mainly on exploration
• Low certainty of oil/ gas content
• I f there is no oil and gas find,

the exploration costs will be totally lost

• No more exploration risk
• Oil reserves confirmed and

certified Current status of Rakushechnoye Risk Profile Cumulative Cost Profile USD million

• 70% of world production is from Mature Assets
• New Technology is increasing recovery factor (RF) from 20% to 40%
• Many Mature Assets today have only 15-20% RF, leaving un tapped potential
• Majority of Assets are too small for Super Majors to operate at a cost effective level
• Proven Reserves & Track Record Reduces Capital Risk

THE Leading Malaysian Independent Oil & Gas Company

SUMATEC

Rakushechnoye Investment

What will Sumatec pay:

• 10M USD Signature Bonus
• 85M USD Historical Costs
• 40M USD Performance Guarantee to be offset against Royalty @ USD5/BBL

What will Sumatec receive:

• 100% of Net Income for first 2M BBLS
• 50% of Net Income after 2M
• Concession period to 2025, can be extended with approval of RoK MOG
• All CAPEX & OPEX recovered as part of petroleum operations
• Sustainable growth in PROVEN Mature Asset
• Initial Investment recovered in first 3 years profits

THE Leading Malaysian Independent Oil & Gas Company

SUMATEC

Entry Price for Sumatec Compared to Peers

THE Leading Malaysian Independent Oil & Gas Company

SUMATEC

Rakushechnoye Field is a Mature Asset

• Concession area: 354km2 with subsurface user rights till 2025
• 1st Well Drilled in 1974
• 47 Wells Drilled
• 3D Seismic acquired 2008

THE Leading Malaysian Independent Oil & Gas Company

SUMATEC

10 Reservoir Zones:

8 gas / gas condensate, 2 oil saturated.

4.7 mmbbl of oil and 51BSCF of Gas has been produced which is less than 10% of the original oil and gas in place

Rakushechnoye Field Reserves

( m m b m m boe)

Oil Gas Total Oil and Gas Proved

5.2 17.2 22.4

Proved + Probable

32.8 89.3 122.1

Proved + Probable + Possible

74.7 257.0 331.7

6000SCF = 1BOE. Reserves Certified by SRK Consulting (Australia) Pty Ltd February 2013

Conservative RF: “20% RF for Oil & 25% RF for Gas”

Reserves from 9% of Concession Area

Identified Hydrocarbons in south with potential to double total reserves

THE Leading Malaysian Independent Oil & Gas Company

SUMATEC

Proved Reserves is Low Risk, High Potential of Additional Reserves

• Formations have more lateral extension compared to

north.

• Less faulting, natural closures
• Southern area yet to be tested for commercial potential.

Is not part of 2P reserve calculations

• Triassic reservoir: gas condensate and oil
• Normally pressured at reservoir
• Compartmentalized in the north , a lot of by passed oil
• Two main reservoir drainage areas – north – commercial

, South untested

THE Leading Malaysian Independent Oil & Gas Company

SUMATEC

Stimulation & Workovers 1000-2000bbl/day Sidetracks 4000-6000bbl/day New Wells >8000bb/day Oil Production Oil & Condensate Production with Gas Injection Oil & Gas Production Phase 1: 2013 Phase 2: 2014-2015 Phase 3: 2016>

Rakushechnoye Development Schedule

New Storage Facility New Processing & Injection Facilities Pipeline for Oil & Gas Export

THE Leading Malaysian Independent Oil & Gas Company

SUMATEC Stimulation & Workovers 1000-2000bbl/day Sidetracks 4000-6000bbl/day New Wells >8000bb/day

Well Count & CAPEX

Work Program 2013 2014 2015 2016 2017 Total Workovers & Stimulation Jobs 6 12 2 2 2 24 Sidetracks from existing wells 4 4 8 New Wells 2 2 2 6 Well Remedial work 5 5 5 15 Total 6 16 13 9 9 53

Phase 1: 2013 Phase 2: 2014-2015 Phase 3: 2016>

Summary Year 2013 2014 2015 2016 2017 Total Capex 3,806 $ 29,318 $ 43,215 $ 18,550 $ 19,470 $ 114,359 $ $ in 1000's Total 5 Year Budget

Workover & Stimulation: 200-400K USD Sidetracks: 1M-2M USD New Wells: 5-6M USD Field Upgrades: 25M USD: Processing facilities, Storages Planning : 2M USD

THE Leading Malaysian Independent Oil & Gas Company

SUMATEC

Risk Assessment

THE Leading Malaysian Independent Oil & Gas Company

SUMATEC

5 Year Business Targets

8000bbls/day (2.9M bbl/year) Large Independent Oil & Gas Company >200 million bbls Proved Reserves Rakushechnoye Operations 2 Million Bbls From Rakushechnoye

Revenue RM New Acquisitions Rakushechnoye

THE Leading Malaysian Independent Oil & Gas Company

SUMATEC

New Board of Directors & Top Level Management Safety Culture embedded in all out activities Minimizing Environmental Impact Focus on Innovation and Efficiency High Ethical Standards demanded from all employees Rebranding of the Company

New Management and Strategy

SUMATEC Oil & GAS

THE Leading Malaysian Independent Oil & Gas Company

SUMATEC

Redesigned www.sumatec.com Launched June 13

THE Leading Malaysian Independent Oil & Gas Company

SUMATEC

New Investor Relations Section

THE Leading Malaysian Independent Oil & Gas Company

SUMATEC

New Management

Chris Dalton Chief Executive Officer Zulkifly Mohamad Chief Operations Officer Based in Almaty Roshidah Abdullah Chief Financial Officer Joined Sumatec June 2012 17 Year Industry Experience with Halliburton To Be Appointed in August 2013 30+ Years Industry Experience with Schlumberger including 10 Years as Country Manager in Kazakhstan Joined Sumatec April 2013 24 Years Experience in Financial Management & Operations Executive Team Technical Leaders Chingis Nabiyev Technical Director Based in Almaty To Be Appointed in August 2013 13 Years Industry Experience with Schlumberger Samuel Elliot Harvey Operations Director Based in Aktau To Be Appointed in August 2013 15 Years Industry Experience with Schlumberger Bakhtiyar Jexenbiyev QHSE Director Based in Aktau To Be Appointed in August 2013 12 Years Industry Experience with Multi-National Corporations

THE Leading Malaysian Independent Oil & Gas Company

SUMATEC

Management KPIs

Staff & Talent Daily Production Increase Total Reserves Cost per bbl Company Values Shareholder Value

THE Leading Malaysian Independent Oil & Gas Company

SUMATEC

SUMATEC Oil & GAS

THE leading Malaysian Independent Oil & Gas Company

Deliver Long Term Profitable Growth

• Large Independent
• Sustainable growth from initial proven reserves
• Rakuschechnoye Low Risk / High Potential
• Acquire own Assets with 24 months
• Free Cash Flow from Oil Sales
• Attractive Profit Margin & Dividend

Proven Mature Asset Portfolio Creating Value for Share holders