BRIDGING THE CONVENTIONAL / UNCONVENTIONAL DIVIDE, AN INDONESIAN PERSPECTIVE Kim Morrison CEO, Lion Energy Good Oil Conference 2 September 2015 A New Approach to Asian Energy A New Approach to Asian Energy www.lionenergy.com.au…
Lions Indonesian Focus Lion early mover in unconventionals with joint study applications made back in 2012 Targeting basinal areas with mature good quality source rocks in North & Central Sumatra Basins Two joint studies awarded…
Unconventional targets Continuum between conventional and unconventional. Indonesia defines unconventional as hydrocarbons from rocks requiring fracture stimulation Conventional Reservoirs: relatively small volumes that are generally…
Indonesias Prolific Onshore Basin 5 basins in top 15 in region by discovered onshore conventional HCs North & Central Sumatra highest hydrocarbon density (discovered HCs per km 2) Asia-Pacific top 15 onshore basins, ranked by discovered…
Indonesia Onshore Hydrocarbons 37 bboe discovered, gas dominates recent success Unconventionals (shale/tight gas and oil) expected to give next step change to resource additions however many challenges to overcome Gas Cond Impact…
Key Indonesian Onshore Basins Sumatra basins standout for unconventional focus in terms of discovered HCs, multiple plays, market access & infrastructure Sumatra 18.8 bbo, 41 tcfg, 1.2 bbc + Market, infrastructure + Accessible terrain…
Key Source Rock Intervals/Plays Similarity in stratigraphy across Sumatra and Java 1 Lacustrine/ restricted marine shales 2 Tight graben fill sandstone Max. Flooding Surface 3 Tight, platform carbonates 4 Condensed marine…
Sumatran Unconventional Targets Building core data and analysis will be critical to high-grade plays Unconventional Targets in Sumatra North Sumatra Central Sumatra South Sumatra Properties Belumai Brown Lehat/Lemat/ Lower Baong Bampo…
North Sumatra Unconventional Plays Uplifted section: mature source rocks at reasonable drill depths Challenges: Source quality, distribution ERODED SECTION Keutapang Section Top Baong Belumai shale and sst Bampo/Belumai…
North Sumatra Source Rocks Potential in mid Miocene Lwr Baong, early Miocene Belumai and late Oligocene Bampo Marine Middle Miocene Baong Formation includes oil-prone kerogen, mixed oil- and gas- prone kerogen, and gas-prone kerogen…
Central Sumatra Unconventional Plays Brown Shale source has high amplitude seismic signature within Pematang Fm, basinal intercepts limited. Contribution from interbedded sands likely.. Challenges: Fraccability of shales, waxy oil…
SOURCE IN THE CENTRAL SUMATRAN BASIN Lacustrine Brown Shale is a world class, oil prone source rock Deposited in localized N-S trending grabens. Type I source rock: Williams et al 1985 cite average TOC values of 2- 4% and locally up…
Defining Sweet Spots Key Important to delineate most productive part of unconventional plays Sumatra Tenure and relative low acreage outline acquisition costs means that Indonesian industry wont have same pressure to drill to…
Conventional/Unconventional Strategy Synergies: data, operations, potential early cash flow Use conventional exploration to de-risk unconventional potential Potential for Middle Baong sandstones TWT Lower Baong shales and…
Indonesias unconventional rationale A unique opportunity in SE Asia Worlds fourth-largest population (250mm) Projected Indonesian oil and gas supply/demand balance Mboe/d Fast-growing economy (GDP 6%pa) 6,000 Demand: High-case…
Unconventional Update Sumatra is most active area, new PSCs in Java and Kalimantan Separate conventional and unconventional (Migas Non- Conventional) MNK PSCs 5 MNK licences granted to date: MNK Sumbugat PSC - North Sumatra MNK…
THE CHALLENGE: DEVELOPING INDONESIAs UNCONVENTIONAL INDUSTRY Catalysts: Energy demand, prices Government support Improved terms Success Factors: Prolific basins Use of conventional E&P to build knowledge/data (ie cores, Issues:…
Thank you For more information please contact: Kim Morrison Chief Executive Officer kmorrisonlionenergy.com.au Office: +61 8 9211 1500 Mobile: +61 404 490 964 A New Approach to Asian Energy www.lionenergy.com.au September 2015 19