annual & special meeting july 4, 2019...dd 5&6 exploration wells l53 thailand well/area...

© 2019 Pan Orient Energy Corp.

Annual & Special Meeting July 4, 2019


Cautionary Statement

This presentation contains forward looking statements which involve subjective judgment and analysis and

are subject to significant uncertainties, risks and contingencies including those risk factors associated with

the oil and gas industry, many of which are outside the control of and may be unknown to Pan Orient. No

representation, warranty or assurance, express or implied, is given or made in relation to any forward looking

statement. In particular, no representation, warranty or assumption, express or implied, is given in relation to

any underlying assumption or that any forward looking statement will be achieved. Actual and future events

may vary materially from the forward looking statements and the assumptions on which the forward looking

statements were based.

Given these uncertainties, readers are cautioned not to place undue reliance on such forward looking

statements, and should rely on their own independent enquiries, investigations and advice regarding

information contained in this presentation. Any reliance by a reader on the information contained in this

presentation is wholly at the reader’s own risk.

Readers are cautioned that well test results are not necessarily indicative of long-term performance or of

ultimate recovery.

Pan Orient and its related bodies corporate and affiliates and their respective directors, partners, employees,

agents and advisors disclaim any liability for any direct, indirect or consequential loss or damages suffered by

a person or persons as a result of relying on any statement in, or omission from, this presentation. Subject to

any continuing obligations under applicable law or any relevant listing rules of the TSX Venture, Pan Orient

disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking

statements in this presentation to reflect any change in expectations in relation to any forward looking

statements or any such change in events, conditions or circumstances on which any such statements were

based.


Past Year Summary

Thailand

• Production up over 600%

• 2P reserves up 150%, 1P reserves up 65%

• L53-DD oilfield discovery and approved Production License

• Established first oil production in the Suphan Buri Basin in the northern portion of Concession

L53 with significant exploration follow-up opportunities

Indonesia

• Commencement of construction of the Anggun-1X exploration well access road and well pad in

December 2018

• After significant permit/weather related delays to the Anggun-1X construction, the access road

reached the well pad on June 4, 2019 & the rig contract was awarded later that month

Canada

• The Sawn Lake development plan was significantly revised to a staged, modular style

development that will result in a new resource report, based on these revisions, in Q3 2019

Highlights (2018 AGM to 2019 AGM):


Share Price Performance

Highlights (2018 AGM to 2019 AGM):

June 12, 2018 AGM

$1.16 POE Share Price


Corporate Summary

Financial

Basic Common Shares Outstanding (TSXV:POE) Mar31-2019 54.9 million1

Insider Holdings 7.5%

Total Long-term Debt nil

Market Capitalization @$2.20/Share $120.8 million2

Total Corporate Adjusted Funds Flow from operations 2019 Q1 (3 months) $1.6 million3

Working Capital & Non-current Deposits – Pan Orient Mar31-2019 $31.6 million4

Working Capital & Non-current Deposits – Thailand Joint Venture Mar31-2019 $ 6.4 million5

Equipment Inventory – Thailand Joint Venture Mar31-2019 $ 2.2 million6

Working Capital & Non-current Deposits & Inventory (Pan Orient & Thailand JV) $40.2 million ($0.73/POE Share)

Notes:

1. Shares outstanding does not reflect shares purchased for cancellation under the normal course issuer bid renewed May 16, 2019

2. Market Capitalization is calculated at the closing POE share price on July 2, 2019

3. Total Corporate Adjusted Funds Flow from Operations does not reflect full scale production from the L53-DD oil field that was

initiated after the Production License was approved April 22, 2019

4. Working capital and Non-current Deposits (Pan Orient) on Mar31-2019 reflects payment of $2.8MMUSD of the $7.5MMUSD

estimated POE share of the Anggun-1X exploration well dry hole cost

5. Working Capital and Non-current Deposits (Thailand) on Mar31-2019 does not reflect increased production from the L53-DD oil field

after the approval of the L53-DD production license on April 22, 2019

6. The Equipment inventory is comprised mainly of drilling & production tangibles such as pipe, pumps and explosives that will be

utilized in the upcoming planned 2019 Thailand exploration programs


Reserve & Resource Summary

Reserves1 & Prospective Resources2 & Contingent Resources3

Thailand Proved + Probable Reserves (“2P”)1 (50% of POS) 1.37 million barrels

NPV10 @ Tax $ 39.5 million

per Pan Orient share $0.72

Thailand Proved + Probable + Possible Reserves (“3P”)1 (50% of POS) 2.93 million barrels

NPV10 @ Tax $ 76.8 million

per Pan Orient share $1.40

East Jabung PSC Indonesia - Unrisked Mean Prospective Resources 2 122.9 million barrels recoverable

Sawn Lake Alberta - Risked Mean Contingent Bitumen Resources 3 (71.8% of Andora) 141 million barrels recoverable

Notes:

1. Thailand oil reserves at December 31, 2018 evaluated by Sproule International Limited for Pan Orient Energy (Siam) Ltd. (POS),

value shown here reflects POE’s 50% ownership in POS. See NI51-101 filing on SEDAR on April 30, 2019.

Possible (3P) reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10%

probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves.

2. Indonesia Prospective Resources for the Anggun Prospect at the East Jabung Production Sharing Contract (PSC) as at June 15,

2015 evaluated by Gaffney, Cline & Associates (Consultants) Pte. Ltd. in barrels of oil equivalent.

3. Sawn Lake Contingent Bitumen Resources at June 30, 2016 evaluated by Sproule Unconventional Limited, volume shown here

reflects POE’s 71.8% ownership in Andora Energy Corporation (Andora)


Value Summary

Capital Structure

Basic Common Shares Outstanding (TSXV:POE) Mar31-2019 54.9 million

Total Long-term Debt nil

Market Capitalization (Jul2-2019 Share Price) $120.8 million (@$2.20/POE Share)

Estimated Market Valuation of Assets

Working Capital & Non-current Deposits – Pan Orient Mar31-2019 $31.6 million

Working Capital & Non-current Deposits – Thailand Joint Venture Mar31-2019 $ 6.4 million

(1) Working Capital & Non-current Deposits (Pan Orient & Thailand JV) $38.0 million ($0.69/POE Share)

(2A) Thailand 2P Reserves NPV(10) Net to POE $39.5 million ($0.72/POE Share)

(2B) Thailand 3P Reserves NPV(10) Net to POE $76.8 million ($1.40/POE Share)

Working Capital, Non-Current deposits & Thailand Reserves (1+2A) $77.5 million ($1.41/POE Share)

Working Capital, Non-Current deposits & Thailand Reserves (1+2B) $114.8 million ($2.09/POE Share)

Contingent & Prospective Resource Future Value Drivers:

a) Thailand Exploration Upside

b) East Jabung Prospective Resources

c) Sawn Lake Contingent Resources


Asian 2019 Activity

Thailand

• A two well exploration program is expected to commence

from the existing DD field well pad in August 2019, followed

immediately by one appraisal well at L53-B1 and one

exploration well L53-B2 from the existing L53-B well pad.

• A second three well exploration drilling campaign is

expected to commence in the vicinity of the L53-DD field in

late 2019 to early 2020.

Indonesia

• The high impact Anggun-1X exploration well is expected to

commence drilling in Q3 2019 at East Jabung PSC

Indonesia: East Jabung

POE 49% Non-Operator

Exploration

Exploration & Production

Thailand: L53

POE 50% Operator


Capital-Drilling Schedule 2019

Notes:

1. Anggun-1X drilling is anticipated to start in Q3 2019 & take approximately 30 days to completion. Based on the

approved AFE, it is estimated POE’s net cost on a dry hole basis will be US$7.5 million plus an additional US$1.5

million for testing of two zones in the success case. US$2.8MM net to POE had been spent to March 31, 2019. An

updated AFE cost is anticipated from the Operator based on actual third party services bid results

2. Thailand two well exploration program (DD5 & D6) dry hole cost

3. Thailand B1 appraisal well (success) and B2 exploration well (dry hole) costs

$0.9MMusd2

Contingent 2019: $1.5MMusd

$1.0MMusd3

DD 5&6 Exploration Wells

L53 Thailand

Capital Q4/2018 Q2/2019 Q4/2019 Q1/2019 Well/Area

Anggun-1X Testing

East Jabung Indonesia

Q3/2019

Anggun-1X Exploration Well

East Jabung Indonesia

Range of timing of drilling – Firm Activity

Range of timing of commencement of activity – Contingent Activity

$7.5MMusd1

Firm 2019: $9.4MMusd

$1.5MMusd

L53-B1 Appraisal & B2 exploration Well

L53 Thailand

$0.9MMusd2

$1.0MMusd3


East Jabung PSC Indonesia

East Jabung PSC

Repsol (Talisman) assets

Oil Pipeline

Gas Pipeline

ANGGUN-1X WELL

• Repsol (Talisman) 51% Operator & POE 49%

• Best conventional fiscal terms of any onshore

Indonesian PSC: net contractor take after payout

of 35% for oil and 40% for gas.

• Excellent pipeline infrastructure

• AYU-1X & ELOK-1 (essentially a twin of AYU-1X)

were the first two wells drilled by the joint venture

in 2017 and encountered a 10m oil column in the

Batu Raja limestone and highly elevated mud gas

reading with oil shows in the Gumai sandstones

confirming hydrocarbon charge into this region.

• Excellent quality, thick reservoirs were

encountered at both the Gumai sandstone and

Batu Raja limestone target levels in AYU-1X.

• The Anggun-1X exploration well will target the

Gumai sandstones (primary target) in a structural

closure up-dip of the AYU-1X drilling location and

the Batu Raja limestone (secondary target) that is

in an independent closure from the AYU-1X well.

• Drilling is planned to commence in Q3 2019


Geological Summary

Oil Shows & High Mud

Gas C1-C5

Oil Shows & High Mud

Gas C1-C5 @AYU-1X

Gumai Sands

ANGGUN-1X

10m Oil Column

In Batu Raja Limestone

@AYU-1X


Top Gumai Sandstone Structure Map

Anggun-1X will test near the crest of a large (99 to 180 km2)

structural closure at the top Gumai sandstone level at a

location 4.6 kms north west and 80 meters structurally up dip

of the AYU-1X well that was completed drilling in August

2017 with high mud gas readings (C1 to C5’s) and oil shows

observed through the Gumai sandstones while drilling. AYU-1X

August 2017

Anggun-1X

Q3 2019

Maximum closure

Most Likely closure

Cantik-1

Success case appraisal


• Anggun-1X will test an

independent (separate from

the AYU-1X) structural closure

at the Batu Raja Limestone

level.

• A 10 meter of oil column was

encountered in the top of the

Batu Raja at AYU-1X with

excellent porosity and

permeability.

AYU-1X

August 2017

10m oil column

Anggun-1X

Q3 2019

Protected Forest

Top Batu Raja Limestone Structure Map

Maximum closure

Cantik-1

Success case appraisal


Anggun-1X Summary

Anggun-1X Time Lines (estimate)

• November 2018 - Quarry permit approved

• December 2018 - Construction of the 7.4km

access road commenced

• June 2019 - Access road reaches the

well pad

- Rig contract awarded

- Rig sub structure pilings

underway

• July 2019 (estimate) - Completion of pilings,

road surfacing and well pad

• August 2019 (estimate - Rig mobilization & well spud


Anggun-1X Road & Well Pad

Construction

Night shift Pilings for rig substructure

Mud pit reinforcement Second layer of fill


East Jabung – Anggun Summary

• The structural complex being targeted by the

Anggun-1X well was estimated by Gaffney Cline &

Associates (“GCA”) pre AYU-1X in 2015 to hold a

Pmean potential of 122.9MMboe (recoverable) net to

POE’s interest within the Batu Raja, Gumai and ABF

formations.

• In the GCA report the majority of resources were

attributed to the combined “Intra ABF” and “Gumai”

reservoirs. Subsequent AYU-1X drilling information

indicated the GCA “Intra ABF” to in fact be the Top

Gumai and the GCA “Gumai” to in fact be the intra

Gumai.

• The Operator’s post AYU-1X prospective resource

estimates are very similar to GCA’s pre AYU-1X

prospective resource estimates.

• An NI51-101 compliant Prospective Resources Report was

completed for Pan Orient by Gaffney Cline and Associates as at

June 30, 2015. See Page 6 of Pan Orient’s December 31, 2015

MD&A.

• The report was completed prior to the drilling of the AYU-1X and

ELOK-1X exploration wells.


ONSHORE THAILAND

CONCESSION L53


Concession L53/48

• Pan Orient 50% equity interest with one local Thai

partner holding the remaining equity interest (charts to

the right are shown on a 100% basis).

• June 2019 average oil sales of 3,079 BOPD, the highest

ever monthly sales for the concession.

• June 2019 operating costs of less than US$5 per barrel

• December 31, 2018 Reserves (net POE) - 2P:

1.366MMbbls (+150%) 1P: 0.451 MMbbls (+65%),

2PNPV(10) after tax: Cdn$39.5 million (+182%)

• Realized oil prices (non-volume weighted) during the

first five months of 2019 averaged $62.17 (U.S.) per

barrel, representing a 6.3-per-cent discount to the Brent

crude oil reference price and a 7.5-per-cent premium to

West Texas Intermediate crude oil reference price.

• 2019 cash flow will be used to fund an expanded

Thailand exploration drilling program & a portion of the

drilling of Anggun-1X exploration well in Indonesia.

100% (POE 50% WI)


DD Field Drilling & Reserves

2P Cut Off

3P Limit

• Two wells were drilled (L53-DD3 & L53-DD4) since the December 31, 2018

reserve report was completed by Sproule International Limited

• L53-DD4 was successful in proving oil in the northern fault compartment BB/CC

sand

• DD field 3P reserves (versus 2P) was comprised of:

• Additional areal extent in the northern fault compartment

• Increased recovery factors

• Increased average net oil pays

BB/CC Sand Depth Structure

1P

M BBL

2P

M BBL

3P

M BBL

AA - 257 586

BB/CC 271 988 2,650

DD/EE 144 544 1,323

Total 399 1,719 4,386

Possible (3P) reserves are those additional reserves that are less certain to be

recovered than probable reserves. There is a 10% probability that the quantities

actually recovered will equal or exceed the sum of proved plus probable plus

possible reserves

DD4

DD3

SUMMARY OF THAILAND CRUDE OIL RESERVES AS OF DEC. 31, 2018, BY

ZONE AS PROVIDED BY SPROULE – COMPANY GROSS (THOUSANDS OF

BARRELS) (PAN ORIENT ENERGY (SIAM) LTD. WITH A 100-PER-CENT

WORKING INTEREST IN CONCESSION L53/48)


Prospect Closure (km2)

Reserves

YE 2018

AA 0.69 NA

AA North 0.27 NA

AA East (DD6) 0.20 NA

AA South (DD5) 0.15 NA BB (DD Ridge) 0.34 NA

BB West 0.22 NA

TOTAL 1.87 NA

DD Possible 0.27 2.770

DD Proven+Probable 0.64 1.804

AA

AA

North

BB

BB

West

1 KM

• Phase 1 drilling is expected to commence in August

2019

• Phase 2 drilling is expected to commence in late 2019-

early 2020 or possibly sooner depending on the land

approval process

AA Well

Pad

DD Area Prospects

DD Pad

2019 Phase 1 Locations – 2 wells

DD4

Fault compartment

BB Well

Pad

AA

East

AA

South 2019 Phase 2 Locations – 3 wells


L53B Area Prospects

Prospect Closure (km2)

P50 Recoverable

(MMbbls)

L53-A4 0.29 NA

A4 North 0.44 NA

A4 East 0.48 NA L53-B Max 0.89 NA

A4 North 2 0.27 NA

Total 2.37 NA

L53-B K40 A 2P 0.50 0.050

• The L53-B1 appraisal well & one

exploration well (exact bottom hole

location yet to be finalized) are planned

to be drilled from the L53-B well pad.

L53-A

Field

L53-B

Well Pad

PTTEP

Land

Top K40A Sand Structure

Note: L53 B at December 31, 2018 was assigned 2P

reserves of 188,000 barrels in three zones, including the

K40A zone above.


Sawn Lake, Alberta, Canada


Andora’s Sawn Lake SAGD Project

• Pan Orient Energy Corp. owns 71.8% of Andora

• Andora is focused on developing the bitumen resources at Sawn Lake using SAGD development with interests in 78 sections of oil sand leases.

• June 30, 2016 evaluation by Sproule of 141.4 million barrels of risked “Best Estimate” contingent bitumen resources attributed to Pan Orient’s 71.8% ownership of Andora (Andora has 196.9 million barrels). Andora operates 99%. A revised development plan was completed in 2019 which will result in an updated resource report to be issued in Q3 2019.

• Sawn Lake demonstration project produced bitumen September 2014 to February 2016 & indicated top quartile SAGD asset (see next slide).

• Intended future development with Andora’s patented “Produced Water Boiler” (PWB™) which enables use of “battery scale SAGD” to significantly reduce financial, reservoir and operating risk.

Evaluated by Sproule

(Company Gross)

(15% development risk)

High

Estimate

Best

Estimate

Low

Estimate

Millions of barrels of

Bitumen - SAGD 166.1 141.4 128

Sawn Lake Risked Contingent Bitumen Resources at June 30,

2016 (net to Pan Orient’s 71.8%). See NI 51-101 Filing on SEDAR

on April 28, 2017.

Red

Earth

T79

R1

W5

R24 T98

Husky

Baytex

5th

Meridia

n

Shell

Penn

West

Sawn Lake

Koch

Peace River Oil Sands Area


Sawn Lake Quality

Sawn Lake

Tier 1 Projects


Andora Summary

Andora Value Components (of which Pan Orient has a 71.8% ownership interest in Andora)

1. Sawn Lake Interests & Operations - “Tier 1” SAGD asset with significant potential value at

WCS US$40 – US$45 oil prices

• 197 million barrels (141 million barrels net to POE’s Andora ownership) of Bluesky

Risked “Best Estimate” Contingent Resources

• 50% ownership of $34 million SAGD facilities & SAGD wellpair

• Control of Sawn Lake development as Operator per the JOA

2. Andora proprietary technology for “Produced Water Boiler” with intended use at Sawn Lake

and other projects

3. Ready for expansion of Sawn Lake 7-30 demonstration project site to 3200 BOPD (gross)

with AER regulatory approval in place

4. The timing for any future development decision will be driven by oil prices, particularly

heavy/light oil differentials

annual & special meeting july 4, 2019...dd 5&6 exploration wells l53 thailand well/area...

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