CORPORATE PRESENTATION
14 MAY 2015
Disclaimer
This presentation is confidential and its content may not be copied, reproduced, redistributed, quoted, referred to or otherwise disclosed, in whole or in part, directly or indirectly, to any
third party, except with the prior written consent of Linc Energy Ltd (“the Company”).
This presentation is for informational purposes only, and does not constitute or form part of an offer, solicitation or invitation of any offer, to buy or subscribe for any securities, nor
should it or any part of it form the basis of, or be relied in any connection with, any contract or commitment whatsoever.
This presentation contains interpretations and forward-looking statements that are subject to risk factors associated with the oil and gas, and coal industries. You are cautioned not to
place reliance on these forward-looking statements, which are based on the current views of the Company on future events. The Company believes that the expectations reflected in the
presentation are reasonable but may be affected by a variety of variables and changes in underlying assumptions which could cause actual results to differ substantially from the
statements made. These include but are not limited to: production fluctuations, commodity price fluctuations, variations to drilling, well testing and production results, reservoir risks,
reserves estimates, loss of market, industry competition, environmental risk, physical risks, legislative fiscal and regulatory changes, changes to petroleum licences/regimes, economic and
financial market conditions, project delay or advancement, approvals and cost estimates.
The Company and its Directors, agents, officers or employees do not make any representation or warranty, express or implied, as to endorsement of, the fairness, accuracy or
completeness of any information, statement, representation or forecast contained in this presentation and they do not accept any liability for any statement made in, or omitted from,
this presentation.
The information contained in this presentation noted above are subject to change without notice. This presentation is intended only for the recipients thereof and may not be forwarded
or distributed to any other person and may not be copied or reproduced in any manner.
The initial public offering of the Company was sponsored by DBS Bank Ltd., Credit Suisse (Singapore) Limited and J.P. Morgan (S.E.A) Limited.
Strategic Plan
October 2014 Strategic Plan Approved by the Board
• Mission Statement
To become an industry leading Oil & Gas Company.
• Our Vision going forward is…
To create an oil and gas asset portfolio focused on extracting significant
value through resource development, application of advanced technology
and operational optimisation.
• Critical Success Factors – Next 3 Years





Divest non-core assets and deleverage the balance sheet
Reduce cash burn and increase revenue
Establish Heavy Oil business
Commercialise UCG
Explore and develop SAPEX assets
Sustainable
Capital
Structure
2
Setting the context…
Source: EIA
Strategic Plan
Approved
Source:
Consensus
Economics
Inc.
Forecast Weekly Cushing, OK WTI Spot Price (Dollars per Barrel)
90
80
70
60
50
40
30
2015
2016
2017
2018
2019
3
The Past 7 Months…

Successfully negotiated a 25% repayment of Convertible Notes and an
extension of the Redemption Put Date from April 2015 to April 2016

Completion of a Receivable Factoring Facility Agreement with a third party
Financial Institution in relation to the second tranche of the Adani
Receivable

Further initiatives to strengthen the liquidity of the group well progressed
(commercially sensitive)

US O&G operations switched from prioritising production to:
1. Low capital expenditure program: recompletions and new wells selected and drilled
based on risked NPV analysis
2. Low operating cost mindset: improved operational efficiencies allowed for a 22%
reduction in LOE’s and a total operating cost below USD 29/net bbl

Organisational restructure: 38% reduction in employee numbers and 76%
reduction in contractor numbers

Maintenance costs of all non-core business assets and facilities reduced by
37%
4
BUSINESS OVERVIEW
Operational Improvements
• Optimisation of the organisational structure and reporting lines
Reduction in Full Time Equivalent employee numbers by 56%, with total
savings of AUD 24.7M
• Operational efficiencies

Reduction in Gulf Coast Lease Operating Expenses (LOE) per bbl for the
last 2 quarters: Q1-Q2  29.3% and Q2-Q3  28.9%

Reduction in Gulf Coast Workover Expenses (WO) per bbl for the last 2
quarters: Q1-Q2  25.1% and Q2-Q3  32.6%

Linc Energy’s total cost per barrel of oil produced for April (incl LOE,
WO, taxes and G&A) within its Gulf Coast operations being below
USD 26/barrel(Net)
6
Oil & Gas
Oil and Gas
Total cost per barrel of oil produced (including LOE,
workovers, taxes and G&A) is below USD 29 per barrel
Conventional Oil & Gas reserve base(1)(2)(3)
Hedging: WTI swaps covering ~800 BOPD at a price of
USD 86.22 for the remainder of the calendar year, plus WTI
put option for ~250 BOPD for remainder of calendar year at
USD 55. Additional hedging being assessed.
Umiat P3
14.5%
Umiat P2
56.8%
272.7
mmboe
Continued operational efficiencies in the conventional oil and
gas division resulting in savings in Lease Operating Expenses
(LOE) per bbl costs for the third quarter for the Gulf Coast
operations.
Quarterly average gross daily U.S. O&G production sale rates
(boepd)
5,111
4,673
5,010 5,157
3,999 3,942
2,737
4,474
3,034
4,163 3,910
3,796 3,581
Wyoming P1
0.3%
Wyoming P3
24.6%
Gulf Coast P1
3.9%
Total reserves pre-tax PV-10(1)(2)(3)
Umiat
63.6%
US$4.5
billion
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Q1
2014
Quarters by calendar year
(1)
(2)
(3)
Haas Petroleum Engineering Services report dated 1 March 2014.
Ryder Scott Report Alaska dated 12 September 2013 .
Ryder Scott Report Wyoming dated 30 September 2013.
Q2
2014
Q3
2014
Q4
2014
Wyoming
25.5%
Q1
2015
Gulf Coast
10.9%
8
Last 6 Months Trends
LOE and WO Cost Trending - Gulf Coast
7.0
-28%
-30%
Cumulative
reduction on Q1
FY15 49.7%
6.0
Total Cost ($US M)
5.0
4.0
3.0
2.0
1.0
Q1 FY15
Q2 FY15
Total LOE Costs
Total WO Costs
Q3 FY15
Unit Rate
9
How do we sustain our results?
• Restructuring of the organisation – set foundations
• Implementation of scorecards & quarterly targets
• Implementation of an Operational Management System (OMS) – sustainability
− Strategic Planning sessions
− Financial compliance & cost control – ERP improvements/automation, PO systems,
accruals etc
− Daily & Weekly cost control processes – early intervention for the monthly budget
− Maintenance Management Systems
− Process maps
− Gap Analysis – offset decline
10
Oil and Gas – Projects overview
Project
Stage
Status
Next steps
Gulf Coast
Production
Total 1P Reserves(1)
Percent Oil:
PV-10:
Fields:
Working interest(2):
Average Net Revenue Int.:
Acreage:
Producing Wells:
9.9 mmboe
96%
USD 417m
14
~100%
~77.6%
13,617 acres
130
Increase oil prospect inventory – KT
analysis on current asset base
Optimise existing production base –
stimulation programs, corrosion
tracking programs
Field & well evaluation – Fit for Fifty financial evaluation for wells down – 60
day payback(currently 10 wells shut in)
Wyoming
Production
Total 3P reserves(3):
Percent Oil:
PV-10:
Fields:
Working interest:
Average Net Revenue Int.:
Acreage:
Producing Wells:
67.7 mmbbl
100%
USD 1,140m
3
97%
75%
26,954 acres
30
Maintain production volumes
Continue to engage with a number of
interested parties for the sale of
Wyoming oil assets
Total 3P Reserves(4):
Percent Oil:
PV-10:
Working interest:
Acreage:
194 mmbbl
100%
USD 2,845.5m
84.5%
19,348 acres
Continue with EIS and permitting
process
Continue to analyse development
scenarios
Continue with engineering studies for
the roads and pipelines routes
Continue to engage with a number of
interested parties for the sale of Umiat
oil assets
Umiat
(1)
(2)
(3)
(4)
Development
Haas Petroleum Engineering Services report dated 1 July 2014.
Linc Energy has an 87.5% working interest in four of its wells.
Ryder Scott Report Wyoming dated September 2013.
Ryder Scott Report Alaska dated 12 September 2013.
11
Shale Oil & Gas
Arckaringa Basin 2015 drilling program
5,052m of exploratory drilling completed:
Pata1 - hydrocarbon shows were recorded providing evidence of an oil
bearing formation
Eba1 - extensive suite of geological information has been collected which will
be used to re-interpret target formations within the regional seismic model
and improve understanding of the Basin’s structure in absence of
hydrocarbons in this well
Samples collected to date are currently undergoing geochemical, geo-mechanical
and routine core/cuttings analysis in Houston – results expected to be announced
late June 2015
Preliminary findings from Pata1 indicates the Stuart Range Formation has excellent
source rock generative potential for oil. This is evident by the Total Organic Carbon
(TOC) being reported as high at 11.60% and the Hydrogen Indices (HI) ranging
between 228 up to 594
Weatherford completed Vitrinite Reflectance on selected Pata 1 core. Results
indicate initial samples are within the oil window (0.55 – 0.66%).
13
Shale Oil & Gas - Comparison to U.S. Shale oil & gas plays
Technical data compares favorably to prolific US unconventional liquids plays
Shale Property
Eagle Ford
Bakken
Arckaringa Basin (Organic-rich Shale)
Age
Mesozoic
Paleozoic
paleozoic
Lithology
Shale
Carbonate
Shale & Carbonate
Depth (m)
2,100 to 4,300
2,600 to 3,200
600 to 2,000
Thickness (m)
45 to 90
3 to 45
70 to 300+
Porosity
6 to 14%
3 to 8%
5 to 17%
Permeability (nd)
1,100 to 1,300
4,000 to10,000
5,000 to 210,000
Kerogen type
II
I/II
I/II
TOC
2 to 6%
7 to 22%
4.5 to 10%
Vitrinite Reflectance (VR Ro)
0.5 to 1.4%
0.5 to 1.0%
0.5 to 1.35%
Tmax (o C)
445
(1)
(2)
1414
(3)
Typically the onset of oil generation is
correlated425
with a reflectance of 0.5-0.6%
and the termination of oil generation with
reflectance of 0.85-1.1%
Weatherford completed Vitrinite
Reflectance on selected Pata 1
core. Results indicate all samples
are within the oil window (0.55 –
0.66%).
440
Eagle Ford and Bakken estimates based on U.S. Energy Information Administration “Annual Energy Outlook 2012”, dated June 2012. Eagle Ford comprises 2.5 billion bbl liquids and 50.2
TCF gas. EIA area estimate for Eagle Ford includes dry gas acreage - liquids rich acreage amounts to 8,300 km2 / 2 million acres.
Arckaringa Basin prospective resources net to Linc Energy acreage only, adjusted for probability of geologic success, based on D&M report dated 21 January 2013 (3.5 billion boe at 51%
liquids). Area relates to c. 4 million acres within Linc Energy’s Arckaringa Basin acreage containing sweet spots where accumulations of organic rich shale are expected. Total Arckaringa
Basin area amounts to ~80,000 km2 (20 million acres).
Technical statistics (Porosity, Permeability, Kerogen Type, TOC, Vitrinite Reflectance and Tmax) relate to Stuart Range.
14
Underground Coal Gasification
UCG
• Shift the focus from exploration & engineering to a commercial focus and
partnering with entities who have well defined resources, removing exploration risk
and reducing time for future commercial project development
• New partnerships being sought in emerging jurisdictions such as Indonesia,
Tanzania and China along with Alaska. Roadmaps have been completed for all
potential projects.
• Developments in established projects currently taking place in four regions:
Alaska:
Term sheet for gas offtake
Convert existing Tyonek exploration license into a lease and commence
regulatory approval process.
Poland:
Continue to work with project partners, progressing the tendering process
and engage with government to overcome approval delays.
South Africa:
Further develop project plan for 10,000 bpd GTL facility with Exxaro
Tanzania:
Need to obtain regulatory approvals and establish Joint Venture
Arrangement & commence PPA negotiations
Complete exploration works for phase 1 of project
16
Heavy Oil Recovery
Heavy Oil Recovery – Moving Injection Gravity Drainage
Low cost early stage development work adaption of proprietary UCG downhole tools
and techniques for the extraction of heavy
crude oil in a known regulatory environment
Initial studies have been encouraging,
indicating this technology has the potential
to deliver cost and efficiency advantages
over existing industry processes
The Company has been focusing its initial
development activities in Canada
Key Differentiators of Invention
Functional
Requirement
Achieved By
Control rate of
oxidant injection
Inject oxidant to maintain
minimum air flux for
effective combustion
Control location of
oxidant injection
Move oxidant location
through the formation
(sweeping)
Produce oil via
gravity drainage
Locate production well
below injection well
Oil Production
Air Injection
Burned Zone
Combustion Zone
Production Well
Cracking Zone
Injection Well
Steam Zone
Hot Zone
Oil Drains To Production Well
18
Summary
High quality, global asset portfolio in all stages of development, from
exploration through to production.
1
2
Conventional oil & gas assets with significant reserve base and low cost
production.
3
4
5
6
A leader in UCG technology - strategically positioned and equipped to
capitalise on robust demand for oil and gas in Asia, and, in particular, the
switch from oil to gas in regional markets.
Low cost opportunity to apply UCG technology to the recovery of Heavy Oil.
Targeted capital expenditure program and low operating cost mindset to
reduce cash burn and increase revenue from existing assets.
Corporate focus on capital restructuring to achieve a sustainable capital
structure.
19