Annual & Special Meeting June 15, 2016 - panorient.ca & Special Meeting June 15, 2016 . ......

© 2011 Pan Orient Energy Corp.

Annual & Special Meeting

June 15, 2016


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-V, 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.


Corporate Summary

Financial

Common Shares Outstanding (TSX:POE) @ Jun15-2016 54.9 million

Insider Holdings 7.0%

Total Long-term Debt nil

Enterprise Value @$1.40/Share $76.9 million

Q1/16 Funds Flow used in operations (including share of Thailand) $2.1 million

Q1/16 Return of Capital to Shareholders of $0.40/share $22.0 million

March 31, 2016 Working Capital & Non-current Deposits $53.2 million ($0.97/share)

Reserves1 & Values PV10 and Prospective Resources2 (Excluding Sawn Lake SAGD)

Thailand Concession L53 Proved + Probable (“2P”) December 31, 2015 0.6 million barrels

NPV10 @ Tax $13.1 million ($0.24/share)

Indonesia East Jabung PSC Unrisked Mean Prospective Resources 123 million barrels recoverable

Indonesia Batu Gajah PSC Akeh-1 discovery to be evaluated

Notes:

1. Thailand oil reserves of Pan Orient Energy (Siam) Ltd. (“POS”) at December 31, 2015 evaluated by Sproule International Limited.

Value shown here reflects POE’s 50.01% ownership in POS.

2. Indonesia East Jabung Prospective Resources as at June 30, 2015 evaluated by Gaffney, Cline & Associates (Consultants) Pte.

Ltd. from three reservoir horizons. Refer additional information in the presentation.


Asset Summary

Batu Gajah PSC Indonesia (POE 77% & Operator)

Three existing hydrocarbon discoveries at Batu Gajah PSC in Indonesia

– Akeh-1 drilled & tested by POE in 2015 @ an average of 6.8MMcfg/d + 269 barrels condensate per day

– North Tuba Obi-1 drilled by POE in 2011 encountered 3m of net gas pay with possible underlying oil leg

– Manismata-1 (Takar prospect) drilled by Shell in 1988 encountered approximately 35 meters of gas pay in

shallow ABF sands in addition to deeper gas pay in the LTAF zone

East Jabung PSC Indonesia (POE 49% Repsol Operator)

Carried for at least one key exploration well at East Jabung PSC in Indonesia in Q4/16:

– The best fiscal terms in Indonesia with a 65%/35% for oil and 60%/40% for natural gas (after tax & cost

recovery) split in favor of the Government of Indonesia after POE recovers its costs

– Carried on a second well to cost cap of US$5 million if success in the first well

– Onshore with low drilling & development costs

– Very experienced operator in the region with nearby existing infrastructure (Talisman – “Repsol”)

L53 Thailand (POE 50% & Operator)

235 BOPD of low cost oil production onshore Thailand that will be used to fund material exploration upside at the A

North Central (East) Prospect, with drilling anticipated in Q4/16

Sawn Lake Canada (Andora Operator - owned 72.1% by POE)

A SAGD bitumen pilot at Sawn Lake that performed at tier 1 SAGD production rates & ISOR metrics that was

substantially above the third party engineering well performance estimate for the “best case” contingent resources.

Note: Production results to date are not necessarily indicative of long-term performance or of ultimate recovery. The Sawn Lake demonstration

project in Alberta and the Akeh prospect in Indonesia have not yet proven that it is commercially viable.


Focus 2016-2017

Continue to De-Risk

Portfolio & Maintain

Strong Balance Sheet

Establish Production in

Indonesia

Add Material Value

Through the Drill Bit

Define Sawn Lake Value

Manage SE Asian Portfolio

• Seeking partner for Indonesia Batu Gajah PSC

(with the Akeh discovery)

• 51% of Indonesia East Jabung PSC exploration

well cost will be carried by partner up to a cap of

US$10 million

• CDN $53.2 million estimated current working

capital & non-current deposits March 31, 2016

• Akeh appraisal – Indonesia Batu Gajah PSC

drilling Q4/2016

• Indonesia East Jabung PSC exploration drilling

Q4/2016

•Thailand Concession L53 exploration drilling Q3/16

– Q1/17 with up to two exploration wells

• SAGD pilot completed & updated reservoir model

& resource report utilizing these results underway

•Application for potential expansion to six wellpair

/3200 BOPD development submitted April 29, 2016

• Stable Asian M&A environment despite low oil

prices

•The company seeks at all times to extract the

maximum value from any asset at the most

opportune time as market conditions allow


INDONESIA

Akeh-1 tested at an estimated

6.8MMcfg per day & 269 barrels

of condensate per day

(“BCPD”)


East Jabung PSC, Indonesia

Gas Fields

Oil Fields

Gas Condensate Fields

Prospects

Leads

• East Jabung PSC (POE 49% & Non Operator)

• Large resource potential

• Repsol (Talisman) Operator

• 65% GOI /35% POE profit split on oil

best in Indonesia

• 60% GOI /40% POE profit split on gas

• Anggun-1 prospect drilling Q4 2016

East Jabung

Prospect

Sumatra


East Jabung Summary

LTAF Max: 188 kms2

BRF A Max: 86.5 kms2

BRF B Max 27 kms2

Gumai Max: 121 kms2

Reservoir Prospective Resources

(MMbbls POE Net )

GCos

Low Best High Pmean

Intra ABF 6.6 28.6 141.3 43.6 0.20

Gumai 4.0 17.5 104.1 28.3 0.11

Batu Raja 5.6 28.9 171.4 51.0 0.26

Total

Unrisked

16.2 73 416.8 122.9

• NI51-101 compliant Prospective

Resource estimates completed by GCA

as at June 30 2015 (see also page 6 of

Pan Orient’s December 31, 2015 MD&A)

• No resources were estimated for the

LTAF at the time of the GCA resource

report as the target was poorly imaged

at that time

• Recent 2D reprocessing indicates a

thick LTAF sand and shale sequence

overlying basement with a maximum

structural closure of 188 km2 in areal

extent

Basement Depth Structure


East Jabung Geo-Section

EAST KETALING

Field

CANTIK-1

• Cantik-1 is the first exploration drilling location

selected

• Location and road construction is planned to

commence in September with drilling planned to

commence in December 2016

• A combination of gas + liquids is possible at all

target levels

East Jabung PSC POE 49% WI

ABF

Gumai

BRF

LTAF

Basement Source

Kitchen

A A’

A

A’

Basement Depth Structure

CANTIK-1

10 km


Batu Gajah PSC

Gas Fields

Oil Fields


Prospects

Pan Orient 3D Seismic 2013

Wells Drilled (POE)

East Jabung PSC

POE 100%

Akeh-1

Rafa

Kemala

Raka

Takar

Sogo Utara

Batu Gajah PSC, Indonesia

Batu Gajah PSC after

last relinquishment

Gas Fields

Oil Fields


Prospects

2D Seismic

3D Seismic

Batu Gajah PSC (POE 77% & Operator)

• Three hydrocarbon discoveries:

• Akeh-1 (gas over oil)

• NTO-1 (gas over possible oil)

• Takar (gas)

• Four additional prospects

• 85% GOI / 15% POE profit split on oil

after 100% cost recovery

• 70% GOI /30% POE profit split on

gas after 100% cost recovery

NTO


Akeh Discovery - Batu Gajah PSC

• Akeh Discovery:

– Akeh-1 tested an average of

6.8MMcfg/d + 269 BCPD from the

LTAF A sand

– Adjacent to existing PetroChina

operated production & recent oil,

gas & condensate discovery

(Selong-1) in adjacent Lemang

PSC

– PSC expires January 2017,

seeking a two year extension to

prove the commerciality and

approve the development of the

Akeh discovery

– Akeh-2 appraisal well planned for

Q4/2016

– Currently seeking a partner

Marmo Field

4MMbbls1

2.2km2

North Betara Field

11MMbbls1

3.2km2

Akeh LTAF

A1 Oil

Batu Gajah

PSC Outline

Notes:

1. Source Wood Mackenzie

790 bopd

LTAF A Oil

4.6 km2

LTAF A & A1 Sand Summary

LTAF A1 Oil

1.7 km2

LTAF A Gas

2.2 km2

Akeh LTAF

A1 Gas

Akeh LTAF

A2 Oil

AKEH-1

1 Source: Wood Mackenzie

Research


Proposed Akeh-2

• Akeh-2 will be drilled directionally from one

of three cellars on the existing Akeh-1 well

pad

• The well will be targeting gas + condensate

in the UTAF & LTAF A and oil in the LTAF

A1

• Estimated cost of $7CDN million to drill

and test

• Drilling anticipated to commence in

Q4/2016

North Akeh-2

Surface

South

Well Path

UTAF

LTAF A

LTAF A1

Estimated oil/water

contact


THAILAND


Jan2015

Feb2015

Mar2015

Apr2015

May2015

June2015

Jul2015

Aug2015

Sep2015

Oct2015

Nov2015

Dec2015

Jan2016

Feb2016

Mar2016

Apr2016

OIL sale per day (BBL/day) 467 440 469 481 460 634 473 545 782 910 919 700 577 539 496 490

Operating Cost (per BOE)$USD/BBL

11.0 11.2 9.5 13.6 10.1 8.5 10.0 9.2 6.5 5.5 6.2 7.8 8.2 7.3 7.6 7.9

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

0

100

200

300

400

500

600

700

800

900

1,000

Aver

age

oil sale

per

day (

BB

L/d

ay)

Average gross oil sales (POE 50% & Operator) per day (BBL/day) vs Operating cost per barrel ($USD/bbl)

Opex per bbl

($USD/bbl)

Opex costs exclude:

• Oil trucking.

• Government royalty

• BKK G&A.

L53 Production and OPEX


$15 $20 $25 $30 $35 $40 $45 $50 $55 $60 $65 $70

AVG oil sale (BOPD) Break event point inApr

1,195 696 491 379 309 260 225 198 177 160 146 134

1,195

696

491

379

309 260

225 198 177 160 146 134

0

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

Oil sale

bbl/day

AVG gross oil sales (BOPD) Break event point

Note: Using latest POS price discount to Brent of ~24% as per Apr-16 oil sale report.

Breakeven Point Chart

Brent oil price $/bbl

We are here.

Currently oil sale 470 BOPD

Brent oil price USD $50/bbl.


L53 Prospective Resources

Prospects

Prospects (drilled)

Oil window

Dry Hole

5 km.

L53D PA

L53A PA

L53G PA

PTTE

P

New 3D

L53/48

West A-A4

A1 (“ANC”)

West A5-A7

South B1-B4A

Prospect Most likely closure (km2)

WEST_A1-A4 2.01

WEST_A5 0.78

WEST_A6 1.20

WEST_A6A 0.50

WEST_A7 4.20

SOUTH_B1 2.01

SOUTH_B2 0.77 SOUTH_B3 0.55

SOUTH_B4 0.89

SOUTH_B4A 2.79

A1_AAA (inclusive of AA+BB) tested by ANC-E1

1.7

A1_CC 0.31

A1_DD 0.86

A1_EE 0.63

A1_FF 0.62

2016 Drilling Candidates (up to

2 of the 3 highlighted

prospects)


A North East Prospect

ANE (New Well) Max closure: 4.9km2

• ANC-1 encountered thick immature sands with oil

shows at the basin margin.

• ANC-E1 is a larger closure in a more basinal

position which is anticipated to encounter better

quality reservoir & access to oil charge

ANC-E1

Exploration Well

ANC-1

Dry Hole A’

A A’

A

U-Thong Field

4.5MMbbls

1.5km2

ANC E Prospect

4.9km2 Max

POE

PTTEP ANC-E1

Barrier to oil

migration??

Oil Migration


Capital-Drilling Schedule 2016

Notes:

1. Akeh-2 appraisal well costs include testing of three zones and coring. POE is currently seeking a

partner for Batu Gajah PSC

2. The cost of the first East Jabung PSC exploration well Cantik-1 will be borne entirely by POE’s

partner up to a cap of US$10 million.

3. Thailand Concession L53 A North East exploration planned for late 2016 with location

construction to commence in July 2016

4. Location construction for a second Concession L53 exploration well is planned to commence in

Q3 2016 with drilling possible prior to year end 2016

A North East Exploration

Well L53 Thailand

Capital Q3/2016 Q1/17 Q3/2017 Q4/2016 Well/Area

East Jabung Exploration well

1 additional exploration

Well L53 Thailand

Q2/17

Akeh-2 Appraisal Well

Batu Gajah Indonesia

Range of timing of commencement of drilling – Firm Wells

Range of timing of commencement of drilling – Contingent Wells

$7MMcdn1

$02

$1.2MMcdn3

$1.2MMcdn4

Firm 2016: $8.2MMcdn

Contingent 2016: $1.2MMcdn


Sawn Lake, Alberta, Canada

• Andora Energy Corporation has interests in 88 sections of oil sand leases

• Pan Orient Energy Corp. owns 71.8% of Andora

• 154 million barrels of 2C contingent resources attributed to Pan Orient’s 71.8% ownership of Andora (Andora has 214 million barrels)

• Demonstration project commenced with drilling in 2013, first stream injection in May 2014 and bitumen production September 2014 to February 2016.

Sawn Lake High Best Low

Millions of barrels of

Bitumen - SAGD 180 154 140

NPV (10) before Tax

CDN$ millions 445 337 259

Sawn Lake Contingent Resources at December 31, 2014 (Pan Orient’s 71.8%)

Red

Earth

T79

R1

W5

R24 T98

Husky

Baytex

5th

Meridia

n

Shell

Penn

West

Sawn Lake

Koch


Andora’s Oil Sands Leases

Sawn Lake North

• 10% of 51 sections (non-operated)

• 100% of 9 sections

• 1.5 MMbbls “Best Case” contingent

resources net to Andora Dec31-2014

Sawn Lake Central


• Designated Operator



• SAGD Demonstration Project at 7-30-

91-12W5

Sawn Lake South




Andora holds varying interests in 88 sections of oil sands

leases. Pan Orient Energy Corp. owns 71.8% of Andora


Sawn Lake SAGD Pilot


Sawn Lake Pilot Summary

• Steady state bitumen production in January and February 2016 averaged of 615 barrels BOPD

(307 BOPD net to Andora) with an average instantaneous steam-oil ratio (“ISOR”) of 2.1 from the

one SAGD wellpair.

• Substantially exceeded expectations from the December 31, 2014 contingent resources report

which assigned gross averages of:

• Low Case of 242 BOPD with an ISOR of 5.7;

• Best Case of 345 BOPD with an ISOR of 4:

• High Case of 449 BOPD with an ISOR of 3.1

• Demonstrated the SAGD process works in the Blue Sky reservoir and provided key data for future

well and facility design.

• Since production commenced in September 2014, the Western Canada Select reference price per

barrel declined from $81.87 to $22.49 in February 2016; as a result the project suspended March 1,

2016.

Note: Production results to date are not necessarily indicative of long-term performance or of ultimate recovery and the Sawn Lake

demonstration project has not yet proven that it is commercially viable.


Sawn Lake Pilot Project


Sawn Lake Performance

Tier 1

Projects

Sawn Lake

Sources: Peters and Co. Limited and GeoScout, McDaniel and Associates (Current SOR Q4 2014)

Instantaneous Steam Oil Ratio (iSOR)

Avera

ge W

ellp

air

Pro

du

cti

vit

y (

bb

l/d

)


Sawn Lake Next Steps

• During the next 12 months Andora will move forward with steps which allow for potential future

development at Sawn Lake including:

Complete Sawn Lake reservoir modeling and an updated contingent resource report that

incorporates the results of the demonstration project.

Advance the proprietary technology for the Thermal System and Process for Producing Steam

from Oilfield Produced Water (Canadian patent granted June 16, 2015). The Company

believes that this technology could achieve significant benefits in SAGD field development.

• An application for a potential expansion to 3,200 BOPD submitted April 29, 2016. Reactivation of

demonstration project facility and wellpair would be considered as part of a potential commercial

expansion.

• The timing of an expansion will be dependent upon regulatory approval, completion of detailed

engineering and a higher commodity price environment to support project economics and financing.


Contacts

Pan Orient Energy Corp

Suite 1505, 505 3rd St SW

Calgary, Canada

Telephone: +1 403 294-1770

Fax: +1 403 294-1780

www.panorient.ca

Annual & Special Meeting June 15, 2016 - panorient.ca & Special Meeting June 15, 2016 . ......

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