Caspian Energy Inc

Caspian Energy — Proactive Investors One2One Investor Forum 2012

34 slides from Caspian Energy's conference presentation, Jun 14, 2012

  1. Slide 1: Proactive Investors One2One Investor Forum

    Proactive Investors One2One Investor Forum 14 June 2012

  2. Slide 2: Caspian Energy is a TSX-listed O&G E&P company holding 40% of the Northern Block

    Caspian Energy is a TSX-listed O&G E&P company holding 40% of the Northern Block in the Caspian basin of Kazakhstan which contains fields of 500-1000 MmBBL recoverable A JV with Chinese investor Asia Sixth Energy has ensured funding of $80m and the Company aims to have 4 producing wells and 4 explor

  3. Slide 3: Disclaimer

    Disclaimer Cautionary Statement The information contained in this presentation has been prepared by Caspian Energy Inc. (the “Company”) and is subject to updating, revision and amendment. While this information has been prepared in good faith, no representation or warranty, express or implied, is ma

  4. Slide 4: Contents

    Contents Overview 1 Vast Commercial Region 2 Unlocking Value: Corporate 6 Asia Sixth Energy: A Key Partner 10 Exploration and Production Profile 11 De-risking the Barrels 12 Unlocking Value: The Assets 13 Investment Recap 22 Appendix 24

  5. Slide 5: Overview

    Overview  TSX-listed with 1,500km2 in the Northern Block of the Caspian Basin of Kazakhstan; immediate neighbours are CNPC and Lukoil producing circa 140,000 BoPD  Caspian reduced to a 40% interest in exchange for Chinese partner, Asia Sixth Energy funding them for $80m of expenditure spending by

  6. Slide 6: Vast Commercial Region

    ~— CAS IA PIAN»> TSX: CEK.TO _ ee al www.caspianenergyinc.com

  7. Slide 7: Where we are

    Where we are - In a country with reserves of 30 billion bbls and daily oil production 2011 of 1.67m bbls - Exactly on the main pipeline system (going East or West) - 1500 km² holding in the North Block - Dominated by majors; few opportunities to invest in juniors NORTH BLOCK 3 TSX: CEK.TO WWW.CASPIA

  8. Slide 8: Our North Block Neighbours

    Our North Block Neighbours Zhanazhol; Kenkiyak; E. Mortuk – CNPC Mortuk; Kumsay – SINOPEC S. Alibekmola - CASPINEFT Sakramabas Alibekmola - LUKOIL 4 Bozoba - MGK

  9. Slide 9: We All Seek The Same Geological Target

    We All Seek The Same Geological Target CNPC Caspian Energy Lukoil & KMG KENKIYAK – 350 Mmbbl ZHAGABULAK – 20 Mmbbl ALIBEKMOLA – 260 Mmbbl WEST EAST K 0 J T C 2 -3 C1 1 P2 P2 P2 P2 2 D 1-2 3 P1k 4 P1 -C 3 5 C2 C1 6 D3 7 km D 1-2 Legend Pre-Salt Limestones 5 TSX: CEK.TO WWW.CASPIANENERGYINC.COM

  10. Slide 10: Unlocking Value: Corporate

    ~— CAS IA PIAN»> TSX: CEK.TO _ ee al www.caspianenergyinc.com

  11. Slide 11: The Company

    The Company NAV East Zhagabulak (independent $0.77 consultants) East Zhagabulak forecast cash flow after tax $22m; $33m; $33m 2014 , 2015 and 2016 years Field netback/barrel (Net Brent@ $95.70) $54.89 Q2 realised price/ barrel US$105.5 Structure Principal % Number of shareholders holding shares Mark

  12. Slide 12: Strong Management Team

    Strong Management Team William Ramsay: Chief Executive Officer  Based in Almaty, Kazakhstan  15 years experience of working in Kazakhstan  Extensive deal structuring experience – instrumental in the Asia Sixth deal  Previously engaged in private equity investments, primarily in Kazakhstan, since

  13. Slide 13: Strong Management Team cont'd

    Strong Management Team cont’d Adil Mukhamedzhanov: Non-Executive Director  Based in Almaty, Kazakhstan  Served as Deputy General Director for Aral Petroleum Capital LLP since March 2004  Ex project manager at JSC KazTransOil; consulting & corporate finance at Deloitte & Touche Central Asia Gordon

  14. Slide 14: Strategic Chinese Partner

    Strategic Chinese Partner Asia Sixth Energy brings:  Invested US$20m to earn 60% shareholding, with up to further US$30m based on hurdles and additional US$80m to be invested by end 2012  Highly experienced operational management in oil exploration and production  Strong Asian industry connection

  15. Slide 15: Exploration and Production Profile

    Exploration and Production Profile Prospect Profile Producing Drilling activities Q1/2, Resources and Target wells 2012 Valuation East Producing 2 wells (301 and 308 flowtesting April (3 20MmBBL (8 MmBBL 3 wells in production by Zhagabulak 213) producing sections at 3 months each) attributable) in P

  16. Slide 16: De-Risking the Barrels - 2012

    De – Risking the Barrels - 2012 NAV= ? NAV= ? NAV= ? = NAV= $0.77 12

  17. Slide 17: Unlocking Value: The Assets

    ~— CAS IA PIAN»> TSX: CEK.TO _ ee al www.caspianenergyinc.com

  18. Slide 18: East Zhagabulak

    East Zhagabulak  Production licence until 2034  Target of 10 producing wells by 2015 EZ#213/ EZ#301 PRODUCING EZ#308  Turning two producing wells into injection TESTING wells in 2016-17 Q2,2012  Depth of wells drilled at East Zhagabulak are up to 5200m EZ#315 DRILLING  Two wells (EZ 301 and EZ

  19. Slide 19: East Zhagabulak - Operational

    East Zhagabulak - Operational Transformation APC 4th Qtr Actual “if” Av. Prod BoPD 451 1,000 1,500 Monthly 1.35 3.02 4.67 3-P Rev us$ ml 11.1 mbbl Field 62.53 72.47 75.04 netback/bbl us$ 2-P 8.6 mbbl G&A/bbl us$ 11.29 3.61 2.79 Monthly $80,000 $720,000 $1.24m Free Cash Flow #308, #306, #315 = $ 15 m

  20. Slide 20: West Zhagabulak

    West Zhagabulak  402 km² 3D seismic shot  Twice the size of East Zhagabulak  An extra 200m updip WZ#309 WZ#316 TESTING  Well WZ 316 flowtesting since May Q1, 2012 WZ#316  Wells WZ 307 & WZ 309 approved for drilling WZ#302 WZ#307/ WZ#309 WZ#307  Wells WZ 302 and WZ 303 will be tested concurrent

  21. Slide 21: Baktygaryn/Aransai

    Baktygaryn/Aransai  110 km² size of structure  4 Soviet wells previously drilled of which 2 wells flowed oil  225km² of 3D seismic shot and reprocessed 2D seismic  Project reports underway, drilling applications lodged and rigs mobilised Q3/2012 Company maker- a 229 MmBBL recoverable project- po

  22. Slide 22: Baktygaryn/Aransai Prospect

    Baktygaryn/ Aransai Prospect Baktygaryn Aransai 18

  23. Slide 23: Baktygaryn/Aransai Exploration Upside

    Baktygaryn/ Aransai Exploration Upside “Soviet” period wells #P1 and P2 #P2 #P1 Drilling applications lodged #APC – 10,11,12 Spud End 3rd Qtr, 2012 19 TSX: CEK.TO WWW.CASPIANENERGYINC.COM

  24. Slide 24: Baktygaryn/Aransai Exploration Upside

    Baktygaryn/ Aransai Exploration Upside New wells “Soviet” period 3rd Qtr 2012 wells drilled #APC – 10 #P1 #APC – 12 #P2 20 TSX: CEK.TO WWW.CASPIANENERGYINC.COM

  25. Slide 25: Drill Programme

    Drill Programme 21 WWW.CASPIANENERGYINC.COM

  26. Slide 26: Investment Recap

    a CASP ed TSX: CEK.TO - = ENERGY INC www.caspianenergyinc.com

  27. Slide 27: Final Thoughts

    Final Thoughts Partner Chinese JV with Asia Sixth Energy US$80m of Capex Production funds 6/7 wells programme 2 wells in production with 2 Kazakhstan Excellent address flowtesting- results from Access to pipeline NAV = $0.77 per share on August Low costs, royalties & 20MmBBL with a further Cash flow

  28. Slide 28: Appendix

    a CASP ed TSX: CEK.TO - = ENERGY INC www.caspianenergyinc.com

  29. Slide 29: East Zhagabulak: Forecast Oil Production to 2034

    East Zhagabulak: Forecast Oil Production to 2034 M ton 120 1400 110 100 1200 90 1000 80 Accumulated Oil 70 Production Annual Oil 800 Production 60 50 600 40 400 30 20 200 10 0 0 2012 2021 2013 2014 2015 2016 2017 2018 2019 2020 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 23 TSX:

  30. Slide 30: East Zhagabulak Forecast Cash Flows

    East Zhagabulak Forecast Cash Flows 180 160 Cumulative revenues to Caspian ($M) 140 Net cash flow after tax ($M) 120 100 $M 80 60 40 20 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 -20 Source: McDaniel & Associates Consultants Ltd. 24

  31. Slide 31: East Zhagabulak Field: Value Sensitivity to Brent Price

    East Zhagabulak Field “Value Sensitivity to Brent Price” NPV – After Tax (US$m) – 10% discount Rate Various Brent Scenarios $100 Brent Caspian’s $120 Brent Caspian’s 40% Share 40% Share Proved + Probable 167.8 67.1 196.8 76.7 Reserves Possible Reserves 165.8 66.3 193.2 73.3 Proved + Probable + 333.6

  32. Slide 32: Regional Infrastructure

    Regional Infrastructure Key players in the region: Mangistau Munai Gas  Recently acquired for $2bn by CNCP (China National Petroleum Company) and KazMunaiGas (Kazakhstan state owned producer) on 50/50 basis  Operated by CNPC  Owner of Zhetybai oil field (1BBO) and the small field adjoining Block

  33. Slide 33: = SS Awe AN Se

    > = SS Awe AN Se Sr

  34. Slide 34: Contacts

    Contacts Calgary office Auditors and Reporting Financial Public Relations Caspian Energy Inc. Accountants Tavistock Communications 410, 396 11th Avenue S.W., MNP 131 Finsbury Pavement Calgary, AB T2R 0C5 900-700 6th Ave SW London Tel: +1(403) 252 2462 Calgary, AB, EC2A 1NT www.caspianenergyinc.com C

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