#1Kina PETROLEUM LIMITED PNG Company Number 1-63551 UK/Papua New Guinea Trade & Investment Forum June 2015#2Kina PETROLEUM LIMITED Disclaimer and competent person Disclaimer The information contained in this Company Update Presentation has been prepared in good faith by Kina Petroleum Limited, and no representation or warranty, express or implied, is made as to the accuracy, correctness, completeness or adequacy of any statements, estimates, opinions or other information contained in this Investor Presentation. To the maximum extend permitted by law, Kina Petroleum Limited, its Directors, officers, employees, consultants and agents disclaim any and all liability for any loss or damage which may be suffered by any person through the use of or reliance on anything contained in or omitted from this Investor Presentation. This Investor Presentation does not constitute financial advice. In making an investment decision investors should rely on their own examination of the information and consult with their own legal, tax, business, financial and other professional advisers in making an investment decision. Certain information contained in this Company Update Presentation, including any information on Kina Petroleum Limited's plans for future financial or operating performance and other statements that express management's expectations or estimates of future performance, may constitute forward-looking statements. Such statements are based on a number of estimates and assumptions that involve significant elements of subjective judgment and analysis which may or may not be correct, and while considered reasonable by management at the time, are subject to significant business, economic and competitive uncertainties. Kina Petroleum Limited cautions that such statements involve known or unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of Kina Petroleum Limited to be materially different from Kina Petroleum Limited's estimated future results, performance or achievements expressed or implied by those statements. Resource estimates within this presentation represent the estimated quantities of hydrocarbons that may potentially be recoverable, with any recovery dependent on future development. Further evaluation is required to determine the existence of a significant quantity of moveable hydrocarbons. Competent Person Statement The technical information contained in this presentation is based on information compiled by Mr Richard Schroder (Managing Director). Mr Schroder has more than 30 years experience within the industry and consent to the information in the form and content in which it appears. Slide 2#3Kina PETROLEUM LIMITED Why PNG? World class oil and gas opportunities and potential Even with the recent decline in oil prices, PNG remains a sound investment. PNG is characterised by: • Proven pathways to development: • • • • • ➤ Exxon Mobil operates the recently completed $19bn PNG LNG project - a world class development and operation. ➤ Total recently appointed operator of PRL 15 and expected Elk/Antelope development. Low cost of labour - significantly lower than Australia and some other regional neighbours. Experienced workforce – Upstream Oil and Gas is an established industry. - Low transport costs - PNG is close to key Asian markets. Transparent Fiscal Regime - Tax and Royalty system. Government policies conducive to activity - operational aspects of industry as well as fiscal regime. Significant remaining exploration upside - close to recent discoveries and also in greenfield areas. Slide 3#4Slide 4 Kina PETROLEUM LIMITED Kina has 44,000 km² of licence interests in PNG close to existing and possible new infrastructure P'nyang Juha Stanley Hides F1 Deep Ketu PPL 437 Angore Kiunga Ang Hides Moran PRL 21 Elevala Kutubu Gobe Raintree -1 PPL 337 Ramu Nico Mine Kwila-1 Yandera Mine & Plant PPL 435 Puk Puk Douglas Koko SE Gobe Triceratops gas discovery G *Lake Murray-1 Kimu Elk/ Antelope possible pipeline PPL 338 Panakawa Oil Seep PPL 436 KEY Oil fields Gas fields Gas discovery Gas seeps Oil Pipeline Gas Pipeline Possible Gas Pipeline Possible Oil Pipeline Uramu Madang PPL 339 Pasca PPL 340 Daru Island PRL 38 Pandora 100km PNG/LNG Port Moresby#5Kina Operational achievements and track record PETROLEUM LIMITED Since its float in 2011, Kina has: • Participated in 4 wells, including 3 successful wells in PRL 21 that will underpin a proposed liquids development. Submitted a development licence application in PRL 21. Participated in 7 seismic surveys. Completed 2 aeromagnetic/gravity surveys. Built a strong Western Province acreage position to complement its interests in key licences close to the Elk/Antelope discovery, and also those in the north of PNG near Madang. Slide 5#6Kina PETROLEUM LIMITED Kina is a PNG focussed company with highly experienced Board and Management Mr Richard Robinson Non Executive Chairman, 35 years industry experience with Esso, Woodside, Santos, BP & Oil Search and over 25 years experience in PNG. Mr Richard Schroder Managing Director, 35 years industry experience, 28 years experience in PNG. Dr lla Temu Mr Barry Tan Mr David Vance Mr Alex Mitchell Mr John Chan Non Executive Director, resident PNG, numerous managerial and director roles in PNG resource companies. Non Executive Director, resident PNG, 35+ years commercial experience in PNG. Non Executive Director, senior corporate and project finance attorney and CFA with more than 25 years of experience in Asia and the US. CFO, Chartered accountant with over 20 years of experience in corporate and business unit roles. Country Manager, Resident PNG, 30 years commercial and management experience. Slide 6#7Kina PETROLEUM LIMITED Kina has attracted strong support from Phil Mulacek, a leader in PNG Oil and Gas Through PIE Holdings LP, Phil Mulacek, the founder, former Chairman and CEO of Interoil, is the largest investor in Kina. • PIE's investment of AUD$18.4 in Kina is the largest capital raise in its short history At InterOil, he drove exploration in Eastern Papuan Basin including giant discoveries at Elk-Antelope (9-12 TCFE Wet Gas) and Triceratops taking InterOil to a market capitalisation of over US$ 5billion. Elk-Antelope is PNG's largest gas discovery and Asia's lowest cost gas. PIE also invests in other high growth opportunities world-wide. • PIE investment provides enhanced certainty for pre-development and other funding. Slide 7#8Kina PETROLEUM LIMITED Nama-1 Malisa Proposed Wharf, Kiunga possible gas pipeline to east Kina's PNG development pathway PRL 21 and surrounding acreage Candlenut PPL 437 Kina 57.5% Fly River Mango PRL 21 Kina 15% Ketu Ketu-1 Elevala Ketu-2 Drimdenasak Tingu-1 * Elevala 2, 2A Ubuntu-1 Ubuntu Kandis Elevala to Kiunga 2014 Liquids Pipeline Tana Seismic Program Elevala Gas Plant Proposed road upgrade 30km possible gas pipeline to south Gas Fields Prospects/Leads Proposed Injection Line Proposed Production Line Proposed Production Well PRL 21 (Kina 15%): • 3 successful exploration wells: Elevala 2 (2011) Ketu 2 (2012) ➤Tingu 1 (2013) These have been tested and will underpin proposed liquids. development. • FEED and value engineering work continues. Joint Venture partners are Horizon Oil (Operator), Repsol, Mitsubishi and Osaka Gas. Wet gas upside in PPL 437, adjacent to PRL 21 discoveries. Slide 8#9Kina PETROLEUM LIMITED PRL 21 path to oil & gas commercialisation Liquids stripping proposed to commence ~2018 with barge export of liquids from Kiunga, down Fly River. Liquids stripping infrastructure is a pre-investment in potential future mid scale LNG Project. With LNG plant at coastal location to supply: City and mining project power demand as substitute for diesel or fuel oil. Singapore LNG and products hub. North Asian LNG markets. Courtesy: Adapted from Horizon Fly River Kiunga Drimdemasuk 30km PRL 21 CPF Well production stream Well injection gas Condensate Road Central Processing Plant KETU GAS FIELD Envisaged liquids offtake - Fly River PRL 21 FOCUS AREA ELEVALA GAS FIELD CPF Papua New Guinea gas pipeline possible Slide 9 PRL 21 Potential Field Development Schematic#10Kina PETROLEUM LIMITED Kina has material exploration portfolio in 3 petroleum provinces in PNG KEY Pliocene/Pleistocene & Late Miocene Sand Play Tertiary Limestone Play Late Cretaceous Sandstone Play/Elevala or Toro Elevala/Toro Play Mid Jurassic & Elevala/Toro Play Oil fields Gas fields Gas discovery Prospect and lead trends Gas seeps Ramu Sub Basin Candlenut PPL 437 Malisa Ketu Kandis Ting FLY PAPUAN FOLD BELT FRONTAL THRUST PRL 21 STRICKLAND DEPOCENTRE WET GAS PPL 435 Alambak North East LAKE MURRAY HIGH ake Murray-1 Lake Murray East Alambak North Alambak Fly Strickland BOSAVI LINEAN EAMENT WET GAS OIL DARAI PLATEAU OMATI TROUGH KOMEWU FAULT ZONE Panakawa Oil Seep Dalbert PPL 436 FLY PLATFORM OIL Alligator Serki MOREHEAD GRABEN Serki South East Sturt Oriomo proposed pipeline ORIOMO 100km WET GAS Slide 10 Banam * Kwila Sogeram Madang Papua New Guinea Ramu Nico Mine Yandera Mine 0 PPL 337 & Plant Triceratops North Triceratops Updip Brown Lory Waxbill Mangrove PPL 339 ODL North West Bobcat Bwato-1 PPL 338 Nipa ntelope DRY GAS Cassowary Kalangar TURAMA Bowerbir WET GAS TROUGH WET GAS WABUDA TROUGH Daru Island DRY GAS PASCA RIDGE PANDORA RIDGE AURA FOCUS AREA East Papuan Lizard Basin KPL Acreage covers: Western clastic play. • Eastern carbonate play. Wet gas upside in PPL 437, adjacent to PRL 21 discoveries. Miocene carbonate extends into PPL 338, 339, & south into PPL 340. FLINDERS TROUGH D Rorona North andora AURE Port Moresby PRL 38 PPL 340 TROUGH Port Moresby#1130km Kina PETROLEUM LIMITED Sogerum Prospect Raintree -1 Banam Prospect PPL 337 FOCUS AREA Papua New Guinea Ramu Nickel Mine PPL 337 - exploration drilling has commenced KINA-90% Heritage-10% 2 wells to be drilled which may be followed by appraisal seismic Kwila -1 access roads Yandera Mine & Plant PPL 337 30% Madang * Across multiple targets in the licence. Further evaluation is required to determine the existence of hydrocarbons, with recovery dependent on potential future development. - • Covers 5500 km² (1.36M acres) in Ramu Sub Basin. • Numerous gas seeps confirm active biogenic gas generation. Heritage to earn 70% by carrying Kina through 2 wells. Kwila & Raintree back to back wells. Raintree-1 spudded 30th April 2015. Intersected good gas shows in Plio- Pleistocene Sandstones. Kwila -1 expected to spud in June 2015, targeting Plio-Pleistocene sandstones. • Expressions of interest in gas from nearby mines; demand about 20mmscf/d. Target sizes* are sufficient to support large scale independent development. Access by road from Madang. • Deep water ports suitable for LNG within 90km of prospects. Slide 11#12Kina PETROLEUM LIMITED PPL 337 - proposed Kwila-1 location Kwila - A(1) -184-97-01 mig-nodmo- 0016 260.0 1290.0 13000 1320.0 1340.0 13000 13000 14000 14200 1440.0 14600 1490.0 15000 1520.0 15400 15000 15000 16000 1620.0 16400 1660016900 1707.01720074040.4 1780.01900 Slide 12 Flat Spot Possible unconformity Upper sand Kwila sand obj Deeper sand Josephstaal Urasiki#13Slide 13 Kina PETROLEUM LIMITED OVERSIZE PPL 337 - exploration drilling Raintree-1 At left is the small-bore rig used in PPL 337. Raintree-1 well drilled and Kwila-1 expected to spud before the end of June. Pioneering use of this non-heli supported technology has paved the way for lower cost and shorter duration drilling operations. Kina sees application elsewhere in its portfolio and throughout PNG.#14Kina PETROLEUM LIMITED PPL 337 - exploration drilling Raintree-1 Slide 14 Aerial View of Raintree-1 May 2015#15Kina PETROLEUM LIMITED PPL 337- EDA Rig 2 currently moving to Kwila-1 Slide 15 Kwila-1 Site Kwila-1 to follow Raintree-1, June 2015 location#16Kina PETROLEUM LIMITED Triceratops gas discovery PPL 338,339 & 340 Extension of Antelope play: Drilling targeted for 2016 Elk/Antelope PPL 338 100% PPL 339 30% Post Farmin Kalangar Prospect Uramu bo Pasca PRL 38 25% 'Pandora Slide 16 100km KEY Gas fields Prospects Gas Pipeline Oil Pipeline Proposed Gas Pipeline PPL 340 100% Port Moresby Oil Search has confirmed its participation in licence via a commitment to drill. Kalangar Prospect being assessed for drilling in 2016.#17Slide 17 Kina PETROLEUM LIMITED PPL 435 50% PPL 435 & 436 Southern margin play: drilling 2017 Kutubu Puk Puk Douglas Koko Lake Murray-1 Kimu KEY Gas fields Oil Fields Prospects/Leads Proposed Gas Pipeline Panakawa Oil Seep PPL 436 50% Fly River possible pipeline 100km Daru Island#18Kina PETROLEUM LIMITED PRL 38 - Part of gas accumulation activity TRICERATOPS ELK/ANTELOPE 2 gas discoveries (Pandora A & B) - 1,500m depth 110m water depth. • Potential development options include mid-scale/ floating LNG. Gas could be liquefied on location or piped to near shore facility. Exploration upside within PRL 38. Kumul Terminal URAMU PASCA Daru Island Slide 18 PANDORA PRL 38 LNG Plant Port Moresby Papua New Guinea 200km PRL 38 FOCUS AREA#19Kina PETROLEUM LIMITED • Strong and focused PNG Board & Management Team. Substantial value to be realised from clear growth path. • Well funded with strong investor base. • Strategy to pursue value add development of PRL 21 and PRL 38. • Large exploration position in the Antelope Fairway of Eastern Papuan Basin. Wrap up • Very large acreage position in the sandstone fairway of Western Papuan Basin with 6 identified reservoir plays and confirmed source. • Kwila-1 to spud in June 2015 and Kalangar-1 expected in 2016, providing good exploration upside. • Building the exploration inventory for follow-up programs to follow 2016-2017. • Restructuring over next 6 - 12 months to promote greater access to capital from North American and European investors. Slide 19#20Slide 20 Kina PETROLEUM LIMITED For more information please contact: Richard Schroder - CEO [email protected] +61 2 8247 2500 THANK YOU Questions?