Niko Resources Ltd. · OTC:NKRSF
Niko Resources — Investor Day (May 2012)
123 slides from Niko Resources's investor day presentation, May 3, 2012
Slide 1: Capital Markets Day
CAPITAL MARKETS DAY May 3rd, 2012
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation may contain "forward-looking statements" about our expectations, beliefs, plans, objectives, assumptions or future events or performance. These statements include, among others, statements regarding our future financial position, strategy, reserves, proje
Slide 3: Niko Resources Agenda
Niko Resources Agenda 1. Welcome Statement Ed Sampson 2. Introduction Bill Hornaday 3. Indonesia Update - Overview Gary Christenson - Lhokseumawe Keith Rawlinson - Kofiau/West Papua IV Phil Teas - Makassar John Decker 4. Trinidad Update Gerold Fong 5. Project Evaluations Doug Cole 6. F2013/F2014 Gui
Slide 4: Analyst Presentation 3 May 2012
The Start Analyst Presentation 3 May 2012
Slide 5: Agenda
Agenda Overview – Gary Christenson Lhokseumawe PSC – Keith Rawlinson Kofiau PSC – Dr. Phil Teas West Papua IV PSC – Dr. Phil Teas Kutai Basin PSCs – Dr. John Decker Dinosaurs, leaves, and oil
Slide 6: Experienced Team
Experienced Team Very experienced Indonesian Team Drilled over 125 DW wells in Indonesia 1997-2004 Discovered over 15TCF gas - Gendalo, Gehem, Gandang, Gada, Ranggas, Vorwata, West Seno, etc. Developed only DW field in Indonesia
Slide 7: Excellent Portfolio
Excellent Portfolio Targeting new trends in proven basins and highly prospective frontier basins Partnered in 21 PSCs Over 25,000,000 gross acres; high graded from 230,000,ooo acres of multibeam data and almost two decades in Indonesia Exploring over a dozen basins extending across Indones
Slide 8: Niko Indonesia
NIKO INDONESIA 21 PSCs 8 JSAs in progress 25MM gross acres Saskatoon 13 Calgary 3 Vancouver St Paul Toronto Chicago Denver
Slide 9: West Papua IV PSC size comparison to GOM blocks
• As comparison the West Papua IV PSC is equivalent to 270 GOM OCS blocks • Niko portfolio is equivalent to over 4,500 GOM OCS blocks
Slide 10: Innovative Technology
Innovative Technology Acquired over 950,000km2 of high resolution multibeam data to identify seeps on the sea floor Acquired* over 3,000 navigated piston cores to confirm seeps detected on the multibeam data Creates a technology advantage
Slide 11: Teknik Perdana
Teknik Perdana Multibeam Swath Bathymetry: 432 Soundings Data density sufficient to grid at 15 x 15m
Slide 12: Rylan T Coring Vessel Cendrawasih Bay
Rylan T Coring Vessel Cendrawasih Bay
Slide 13: Coring Technology
Slide 14: Excellent Partners
Excellent Partners Experienced Team, Excellent Portfolio, and Innovative Technology has led to excellent international partnerships Statoil, ExxonMobil, Hess, GdF, Eni, Repsol, etc.
Slide 15: Market Cap USD (B)
450 400 MARKET CAP USD (B) Niko 2.15 Hess 17.60 350 300 Repsol 23.77 Gaz de France 52.86 250 Eni 81.18 USD 200 Statoil 84.89 150 ExxonMobil 405.90 100 50 0 Niko Hess Repsol Gaz de France Eni Statoil ExxonMobil Approximate market cap
Slide 16: Drilling through Jan 2013
Drilling through Jan 2013 utilizes three rigs to drill 6-8 wells Hercules 208 rig (2) Discoverer Seven Seas rig (1-2) Ocean Monarch rig (3-4)
Slide 17: Hercules 208 rig
Hercules 208 rig Operated by Zaratex On location in the Lhokseumawe PSC Drilling Candralila-1 and Ratnadewi-1
Slide 18: Hercules 208
Hercules 208
Slide 19: Discoverer Seven Seas rig
Discoverer Seven Seas rig Operated by Eni Will drill in North Ganal PSC likely Q3 of 2012 Drilling Lebah #1, possible 2nd well as appraisal
Slide 20: Discoverer Seven Seas
Discoverer Seven Seas
Slide 21: Ocean Monarch rig
Ocean Monarch rig Operated by Niko Will mobilize in September for 5 year drilling campaign First wells in the queue: Jayarani #1, Ajek #1 and Cikal #1
Slide 22: Ocean Monarch
Ocean Monarch
Slide 23: Scene from what movie?
Scene from what movie?
Slide 24: Armageddon
Armageddon Bruce Willis golfing on Ocean Monarch’s heli-deck
Slide 25: Saskatoon Calgary Vancouver
Saskatoon Calgary Vancouver St Paul Toronto Chicago Denver
Slide 26: Agenda
Agenda Overview – Gary Christenson Lhokseumawe PSC – Keith Rawlinson Kofiau PSC – Dr. Phil Teas West Papua IV PSC – Dr. Phil Teas Kutai Basin PSCs – Dr. John Decker
Slide 27: Opening New Trends in Mature Areas
Opening New Trends in Mature Areas
Slide 28: Lhokseumawe
LHOKSEUMAWE Opening New Trends in Mature Areas
Slide 29: North Sumatra
North Sumatra Mature Exploration area Major Discoveries • 19 wells were drilled inside the Arun EUR = 13 TCFG block • 14 wildcat wells & 5 Rantau EUR = 2.5 TCFG appraisal wells Lhok Sukon EUR = 2.4 TCFG • 5 onshore wells, 12 offshore wells < 200 m NSO A EUR = 1.5 TCFG WD, 2 deepwater wells Kuala Lan
Slide 30: Proven Petroleum Systems and Play Types Extend into Lhokseumawe
Proven Petroleum Systems and Play Types Extend Offshore Proven Petroleum Systems and Play Types Extend into Lhokseumawe
Slide 31: Water Depths Restricted Drilling and Success
Water Depths Restricted Drilling and Success Proven Basins limited to shallower water depths Offshore still relatively immature in exploration • Much of the block in water depths which require deepwater drilling technology • Last well drilled in 90’s
Slide 32: Extensive 3D seismic has been acquired
Extensive 3D seismic has been acquired G a G s a s C h C i h m i n m e n y e y 3D Surveys Over 4000 km2 of 3D seismic has been acquired •Gas indications seen over entire block •New stratigraphic plays recognized Stratigraphic traps
Slide 33: Multiple play types recognized in relative low risk environment
Multiple play types recognized in ‘relative’ low risk environment TWT (ms) Keutapang Thrust Belt Play Top Keutapang Keutapang-Seurula Play (SE) Baong Play Top Baong Top Peutu Peutu (or older) Reef Play Top Parapat Parapat Inverted Syn-Rift Play ~10km SW E •5 different play types seen on 3D •4 proven
Slide 34: Hercules 208
Hercules 208
Slide 35: Initial shallow water drilling targeting Upper Miocene fan/channel complex
Initial 2 well shallow water drilling targeting amplitude driven Upper Miocene fan/channel complex Initial drilling program •2 shallow water wells •Faulted fan/channel complex
Slide 36: Shallow Water Drilling Program Candralila-1
Shallow Water Drilling Program Candralila-1 Arun LNG Candralila-1 ARUN Field
Slide 37: Shallow Water Drilling Program Candralila-1
Shallow Water Drilling Program Candralila-1 Candralila-1 •Amplitude recognized anomaly •13 meter water depth •TD 1875 meters •Currently drilling Note ONSF-1 drilled outside amplitudes
Slide 38: Candralila-1 strike and dip lines
Shallow Water Drilling Program Candralila-1 Candralila-1 •Strike and dip lines identify potential hydrocarbon charged reservoirs
Slide 39: Shallow Water Drilling Program Ratnadewi-1
Shallow Water Drilling Program Ratnadewi-1 Ratnadewi-1 2nd well to be drilled Part of same fan/channel complex 10 meter water depth TD 1875 meters Note ONSF-1 drilled outside amplitudes
Slide 40: Ratnadewi-1 unrisked resource estimates
Shallow Water Drilling Program Ratnadewi-1 Ratnadewi-1 Ratnadewi-1 •Unrisked resource estimates of complex •ML 130MMBOE •Max 400+MMBOE Ratnadewi-1 Ratnadewi-1 •2 well to be drilled nd •Part of same fan/channel complex •10 meter water depth •TD 1875 meters
Slide 41: Candralila Ratnadewi
Shallow Water Drilling Program Ratnadewi-1 Candralila Ratnadewi
Slide 42: Ocean Monarch
Ocean Monarch
Slide 43: Deep Water Drilling Program Jayarani-1
Deep Water Drilling Program Jayarani-1 Initial deepwater drilling will target deeper Miocene/Oligocene carbonate targets
Slide 44: Gas effects seen on seismic associated with carbonates
Deep Water Drilling Program Jayarani-1 Gas effects seen on seismic associated with carbonates
Slide 45: Preliminary unrisked resource estimates of carbonate complex
Deep Water Drilling Program •Preliminary unrisked resource estimates of carbonate complex •Mean Resource •3.7 TCF •113 MMBC Jayarani-1 •P10 Resource Miocene •7.7 TCF Carbonates •251 MMBC Oligocene Carbonates Two stages of reef growth are recognized – Miocene and Oligocene
Slide 46: Other play types are very prospective
Deep Water Drilling Program Barong Syn rift inversio n Keutapang Parapat Other play types are very prospective and work is ongoing to evaluate
Slide 47: Opening New Trends in Mature Areas
Opening New Trends in Mature Areas
Slide 48: Agenda
Agenda Overview – Gary Christenson Lhokseumawe PSC – Keith Rawlinson Kofiau PSC – Dr. Phil Teas West Papua IV PSC – Dr. Phil Teas Kutai Basin PSCs – Dr. John Decker
Slide 49: Opening New Trends
Opening New Trends
Slide 50: Kofiau PSC: Expanding on Success
KOFIAU PSC Expanding on Success
Slide 51: Salawati Analog
Salawati Analog
Slide 52: Seafloor Seepage
Slide 53: Klamono Klamumuk Asphalt
KLAMONO KLAMUMUK ASPHALT y KLAMOGUN waa reams “SPHAL ayamanus reer Sb 2500 5000 7800 10000 12500m y2rz100 MELE: FACIES, ct aa eek: FAUMAI_F' BASE er Mies cee (LOMETERS ° 0 EXAGGERATION: 8X
Slide 54: Dugong, Gajah, Calon, Ajek, Balig
DUGONG GAJAH CALON AJEK BALIG ELIT =
Slide 55: Dugong Calon Gajah
DUGONG CALON GAJA EM
Slide 56: Principle Prospects
Principle Prospects
Slide 57: Balig and Ajek seismic section
Slide 58: Ajek
AJEK am ‘400 |
Slide 59: Ajek Depth Structure
AJEK-1 Ajek NSAI Mean Resource: 209 MMBOE Depth Structure [shallowest reservoir target] ~450’ relief to structural spill point ~5000 acres 4-way closure
Slide 60: Sub-Unconformity Play Extension of Ajek
Sub-Unconformity Play Extension of Ajek ~4500 acres Amplitude in 3-way Unconformity Trap
Slide 61: Elit
ELIT BALIG AJEK es ‘ocd!
Slide 62: Elit faulted 4-way closure
~1000’ relief to structural spill point ~5000 acres Faulted 4-way closure
Slide 63: Calon
CALON | Nea | £ Ms , » S\ i
Slide 64: Calon Depth Structure
Depth Structure [shallowest reservoir target] ~300-600’ relief to spill point ~6000 acres 4-way ~16000 acres to fault Calon NSAI Mean Resource: 457 MMBOE
Slide 65: Calon Depth Structure (deep target)
Depth Structure [deep reservoir target] ~300’ relief to spill point Two Closures, Each: ~3500 acres 4-way
Slide 66: Seismic section
Slide 67: Seismic sections
Slide 68: Gajah and Dugong seismic section
Slide 69: Gajah seismic section
Slide 70: Dugong
DUGONG +2600
Slide 71: Dugong NSAI Mean Resource
Dugong NSAI Mean Resource: 250 MMBOE
Slide 72: Dugong seismic
Slide 73: Dugong depth map
Slide 74: Opening a New Trend in 2012
Opening a New Trend in 2012
Slide 75: Opening New Trends
Opening New Trends
Slide 76: West Papua IV PSC: Chasing the Kais
WEST PAPUA IV PSC Chasing the Kais
Slide 77: Kais Distribution
Slide 78: Kais Distribution
Slide 79: Stratigraphic Section Lengguru
Stratigraphic Section Lengguru Tertiary New Guinea i Limestone “oe f an : sees aS , ree Cretaceous eee a ee Kembelangan
Slide 80: Well Control
a re) 7 ee Well Contr MH ion
Slide 81: neal
ee neal
Slide 82: Cikal Prospect Seismic Section
Slide 83: Cikal-1: Ocean Monarch
CIKAL-1: Ocean Monarch
Slide 84: Depth Structure
Depth Structure [top reservoir] ~4300’ relief to structural spill point ~34000 acres 4-way closure
Slide 85: Omah Seismic Section
Slide 86: Depth Structure
Depth Structure [top reservoir] ~3600’ relief to structural spill point ~15000 acres 4-way closure
Slide 87: Denai Seismic Section
Slide 88: Depth Structure
Depth Structure [top reservoir] ~3600’ relief to structural spill point ~20000 acres Faulted 3-way
Slide 89: Seafloor Seepage
Seafloor Seepage
Slide 90: Pliocene Structure Plays
Slide 91: Pliocene Depth Structure
Slide 92: Depth Structure
Depth Structure [top reservoir] ~1500’ relief to structural spill point ~3500 acres 4-way Closure
Slide 93: Untung Seismic Section
Untung Seismic Section
Slide 94: West Papua IV PSC: Chasing the Kais
WEST PAPUA IV PSC Chasing the Kais
Slide 95: Agenda
Agenda Overview – Gary Christenson Lhokseumawe PSC – Keith Rawlinson Kofiau PSC – Dr. Phil Teas West Papua IV PSC – Dr. Phil Teas Kutai Basin PSCs – Dr. John Decker
Slide 96: Niko Indonesia Analyst Presentation 3 May 2012
Slide 97: Kalimantan
Kalimantan.
Slide 98: Where does oil come from?
Slide 99: Oil industry cartoon
Slide 100: Gas station 1965 slide
E WAR" OI: GAS STATION, SOMEWHERE, USA, 1965 CHARLES PHOENIX'S SLIDE OF (EE)
Slide 101: Chevron 60s dinosaur campaign
Chevron 60’s dinosaur campaign was a 4 time AAF, IBA, Clio, and Belding Award winner. Advertising Age called it the best oil company campaignin 20 years. fere was adinosaur a brontosaufs sony) ing.. & 4 \ ame of organic material. /a pool of which turne a irto —sIx anks of gas, three tankers, etc. 7
Slide 102: Algae and Marine Microplankton
Algae and Marine Microplankton
Slide 103: Land Plants and Leaves
Land Plants and Leaves Estuarine or Lacustrine Algal ae by ipieroearamees intricalatus Diet SeaerB: Botanical ¢ Gardens
Slide 104: Mahakam Delta
Mahakam Delta Mangrove and Nypa Swamp
Slide 105: Live Dicot Leaves
Live Dicot Leaves ay | /
Slide 106: Dicot Leaf in Recent River Sand
Dicot Leaf in Recent River Sand 02-JD-605: Mahakam Delta, distributary channel 3.5 m water depth Modern river bottom sample - gray mud with modern leaf
Slide 107: Dicot Leaf in Miocene Sand
Dicot Leaf in Miocene Sand 02-JD-601: Samarinda Road, East Kalimantan, channel splay Miocene Sand - parallel laminations are organic layers at top of channel splay, leaf fossil
Slide 108: Recent Distributed Organic Deposit
Recent Distributed Organic Deposit 02-JD-606: Mahakam Delta, Handil Peat Ridge Core
Slide 109: Handil Peat Ridge core; peat layer close up
2-JD-606: Maha Delta, Handil Peat Ridge core; peat layer close up
Slide 110: Leaf Concentration on Sand Bar
Leaf Concentration on Sand Bar mouth bar a: )) Distributary Mouth Bar, mre : Leaf Peat Under [® Lower Mahakam ag , é the Sand ‘ te DED i fad St G , Sandy Ripples on the Py ie 2 ae & y ‘ Distributary Mouth Bar |) Ke Coxcestraicd Leaf Peat oS 3 ic VO ee 02-JD-607: Mahakam Delta, Distribu outh Bar; Lea
Slide 111: Distributed Organics in Miocene Sand
Distributed Organics in Miocene Sand 02-JD-602: Samarinda Road, East Kalimantan, fluvial Miocene sandstone with distributed leafy organics
Slide 112: Distributed Organics in Miocene
Distributed Organics in Miocene Deep Water Sand Outcrop | 02-JD-601: Samarinda Road, East Kalimantan, Miocene turbidity current channel splay; parallel la ions are organic layers at top of channel splay
Slide 113: Distributed Organics in Miocene Deep Water Sand Cores
Distributed Organics in Miocene Deep Water Sand Cores Miocene Deep Water aS PN ’ Cathodoluminescence photomicrograph of Miocene fossil leaf in coaly laminae composed of oil-prone cutinite (yellow), _ disseminated resinite, and vitrinite (black); TOC = 9.7%, HI = _ 418 mg HC/g TOC Saller, A., R. Lin,
Slide 114: Deep Water Makassar: High TOCs in Sandy Turbidite Facies
Deep Water Makassar: High TOCs in Sandy Turbidite Facies 0.0 02 04 06 08 10 0 5 10 15 20 | 9,600 Saller, A., R. Lin, and J. Dunham, 2006. Leaves in turbidite sands: The main source of oil and gas in the deep-water Kutei Basin, Indonesia.
Slide 115: SE Asia Leaf Factory
SE Asia Leaf Factory Z Google earth PATIENT N 1849014 00" E eley -a88 Eye ot 28 09m O
Slide 116: North Makassar Deep Water Fields
North Makassar Deep Water Fields a * SS North Makassar Strait Surumarrar >125 Deep Water Wells >25 Deep Water Discoveries >14 BBOE Estimated Ultimate Recovery ==- | >8 BBOE Producedto Date High Degree of Exploration Knowledge Tectonics Paleogeography Reservoir Facies Source Facies Sai 2h Sa) Timing
Slide 117: Miocene-Recent Depositional Setting
Miocene-Recent Depositional Setting
Slide 118: Key North Makassar Deep Water Units
Key North Makassar Deep Water Units Pre- Mid Miocene Shale: No Sand = No Source EROS Be ie SS KR130 = ~ Top Oil Window in etl Sn aR RAE KR130-KR150 Source & Reservoir 3
Slide 119: RMS Max Amplitude of Mid-Miocene Turbidites
Slide 120: Coherency
on Coherency a P 27%, % a ~ > ee = ES ae os y x “ Unconfined Basin}. Dé Floor Fan
Slide 121: Mid-Miocene Prospects
—_ Mid-Miocene Prospec ~~ = een - = pak | @. North Ganal North Makassar Strait PSC Pananda Large broad 4-way closure WD: ~7400 ft. TD: below base KR150 sands TD: ~12,500’ below mud line SE Ganal 1 PSC Rajageri ) 38,000 acres strat with local 4-way Pogah t=) : - WD: ~7200 ft. eg ay fp SSul One of sev
Slide 122: Pliocene Prospects
Pliocene Prospects ee / a North Makossor strait \ North Ganal PSC Lebah Stacked slope sands; strat traps WD: ~33650 ft TD: Near base Pliocene TD: ~8,000' below mud line Niko p50 = 400 MMBOE Discoverer Seven Seas; likely Q3 ‘12 Maura Bakau PSC Jangkrik/NE Stacked slope sands; strat traps 6 successes
Slide 123: Niko Indonesia Analyst Presentation 3 May 2012