Black Platinum Energy Ltd ( BPE or the Company ) Announces a Material Increase in the Discovered Dara East Gas Field Resources and Upside Potential Resources in Nearby Features Dara East Assessed Gas Resource BPE recently updated its Third Party resource assessment for the discovered Dara East Gas Field. Third Party, LR Senergy, assessed the P50 GIIP volume for the Dara East Gas Field at 1,495 Bscf. This fifty-percent increase from the previous 2015 LR Senergy analysis is based on an in depth review of the data from the Dara-1 and Dara-3 wells to investigate additional gas bearing reservoirs, a reevaluation of existing 3D seismic, including reprocessing and re-interpretation of select seismic lines and detailed review of all well data associated with the offshore East Natuna basin. The gas encountered in the Dara East Gas Field is found in fine grained Pliocene sands deposited in a shallow marine environment at between 800-1800 mmd. In 2000, Total drilled the Dara-1 well, which encountered gas bearing sands in the Upper and Lower Pliocene. In 2012, BPE drilled the successful Dara-3 well, which confirmed low CO 2 gas in the Upper Pliocene and established commercial flow rates. The Dara-1 and -3 wells encountered a fine grained clastic reservoir containing gas at the primary Upper Pliocene (UP) 1A sand level. The UP-1A sands contain a significant proportion of the Gas Initially-In-Place (GIIP) and are essentially a coarsening upwards section, consistent with an offshore bar or dune. The GIIPs for the individual Dara East Gas Field reservoirs, reported in Billions of standard cubic feet of gas (Bscf), are presented below. Reservoir Gas Initially-In-Place (Bscf) Low Best High UP-1A 397 635 943 UP-1B 30 65 140 UP-3 69 107 160 UP-4 63 103 157 UP-6A 66 110 179 UP-9 135 225 349 LP-6 130 251 446 Total 890 1,495 2,374 LR Senergy re-assessed the recoverable portion of the GIIP volumes based on conceptual development plans, reservoir rock and fluid characteristics and deliverability of the reservoirs to the planned wellbores. The ranges of Technical Recoverable Volumes (TRV) are presented below. Dara East Gas Field Estimated Gas TRV Range Phased Development Reservoir GIIP Recovery Factor Raw TRV Net TRV (Bscf) (%) (Bscf) (Bscf) 3) Low Best High Low Best High Low Best High Low Best High UP-1A 397 635 943 70 80 85 278 508 802 UP-1B 30 65 140 70 80 85 21 52 119 UP-3 69 107 160 40 50 60 28 54 96 UP-4 63 103 157 40 50 60 25 52 94 UP-6A 66 110 179 25 30 40 17 33 72 LP-6 130 251 446 75 85 90 98 213 401 TOTAL 890 1,495 2,374 52 61 67 466 911 1,584 364 809 1,482 Note: that recovery factors in the above table are based on a preliminary field development plan and may not represent the geologic recovery factors of individual reservoirs. The inert content of the gas to be developed varies between sands from 1-12% CO 2 and 0-9% N 2. The Dara East gas resource is a dry gas and contains no known liquids based on testing. The average www
produced gas composition is reasonably constant with approximately 5% CO 2 and 5% N 2. The above resources do not include the potential of any undrilled or untested reservoirs in the existing Dara East Gas Field or potential resources in the adjoining Dara North/Northeast and Dara West features. Dara East Assessed Upside Potential The Dara East Gas Field area contains additional exploration potential in undrilled reservoirs. LR Senergy has assessed the upside potential of these Pleistocene (PL), Upper Pliocene (UP) and Lower Pliocene (LP) objectives and have determined the GIIP volumes for them. Volumes have been assessed probabilistically; applying the observed ranges in area and estimations regarding the pay thickness, porosity, gas saturation and gas expansion factor. Presently, as these objectives have not been drilled, the volumes would include the unknown proportions of any nonhydrocarbon gas (i.e. CO 2, N 2 ). Dara East Upside The results from the LR Senergy assessment are presented in the table below. DARA EAST ADDITIONAL PROSPECTIVITY Upside Upper Pliocene, Lower Pliocene & Pleistocene PL-20 12 26 57 31 PL-23 11 24 54 29 PL-38 5 11 24 13 UP-1B Area 2 18 37 79 44 UP-2 9 23 64 32 UP-8 Area 1 15 33 74 40 UP-8 Area 2 127 281 624 341 UP-10 133 298 659 360 LP-1A 187 272 394 284 LP-2 to -6 107 165 254 175 TOTAL 623 1,171 2,284 1,349 Dara North/Northeast and Dara West Assessed Upside Potential Additional exploration potential has been assessed for Dara North/Northeast and Dara West areas by LR Senergy. Volumes have been assessed probabilistically; applying the observed ranges in area and estimations regarding the pay thickness, porosity, gas saturation and gas expansion factor. Presently, as these objectives have not been drilled, the volumes would include the unknown proportions of any nonhydrocarbon gas (i.e. CO 2, N 2 ).
Dara North/Northeast Upside The results from the LR Senergy assessment are presented in the below table. DARA NORTH/NORTHEAST PROSPECTIVITY Upside Lower Pliocene LP-1A N 255 369 536 385 LP-1A NE 51 74 107 77 LP-1B N 286 415 598 431 LP-1B NE 176 255 370 266 LP-1C N 104 224 481 267 LP-1C NE 28 61 132 73 LP-1D N 72 155 332 185 LP-1E N 85 183 393 219 LP-1F N 59 128 278 153 TOTAL 1,115 1,863 3,228 2,057 Dara West Upside The results from the LR Senergy assessment are presented in the below table. DARA WEST PROSPECTIVITY Upside Upper Miocene & Lower Pliocene LP 477 1,024 2,174 1,216 UM-1 to UM-9 2,896 6,156 13,320 7,397 UM-10 to UM-12 424 903 1,955 1,085 TOTAL 3,798 8,083 17,448 9,698 Forward Plans BPE is finalizing the work with LR Senergy to update its previous issued Preliminary Plan of Development for the Dara East gas field to reflect the above resource results and other designs/changes, including a pipeline commercial solution or FLNG. This study is available for review with future Partners/Investors and the Indonesian Government. Larry Luckey, Acting CEO of BPE commented: The updated resource numbers continue to confirm that the discovered Dara East Gas Field and surrounding reservoirs and acreage is a major resource for the Company, and is of significant importance to the Government of Indonesia. BPE intends to identify potential Partners/Investors who can jointly exploit the Dara East Gas Field and work with the Government of Indonesia on an optimal plan to begin development & production which will hopefully initiate further activity by other Companies in the greater East Natuna basin to replace declining production in the West Natuna basin.
Gary Christenson, Non-Executive Director of BPE commented: The results of the thorough technical work on the Dara East Gas Field (and surrounding reservoirs and acreage) clearly demonstrate the low CO2 gas resource potential in the Pleistocene and Pliocene reservoirs and the commercial viability of the greater East Natuna area. The strategic location to S.E. Asian gas markets combined with the shallow water and reservoir depths will facilitate an aggressive low cost development scenario. The Dara East Gas Field and surrounding features have been significantly de-risked by BPE and offer a great opportunity for future Partners and Investors to participate in potentially the next biggest gas producing basin in S.E. Asia. Facts Dara East Gas Field is located in the North Sokang PSC BPE signed the North Sokang PSC in 2010. The PSC has a 30 - year term which will expire on 25 th November 2040 and a 40% after-tax contractor take. Shallow water depths of around 110 meters with benign metocean conditions; Large 4-way structures with minimal trap and structure risks; Pliocene clastics of 500-1,800 meters depth; Multiple stacked sandstone reservoirs of 3 to 25 meters each and 20-30% porosity; Massive gas kitchen and proven migration into structures; Gas in the Upper Pliocene and younger reservoirs has <2% CO2 while gas in the older reservoirs varies from <5% to >80% CO2; Extensive 3D and 2D seismic fully processed and interpreted; Full regional geology study completed; Full petrophysics interpretation (saturation height, fluid contacts, etc.); Full geophysics interpretation (structural, depth, seismic inversion, rock property, model-based post-stack elastic inversion); Static reservoir modelling has been completed on Dara East Gas Field (facies modelling, porosity thresholds, reservoir & fluid characteristics, well deliverability, material balance, recovery factors, and production profiles).
12 March 2018 For further information, please contact: Larry Luckey, Chief Financial Officer and Head of Investor Relations at larry.luckey@blackplatinumenergy.com Disclaimer: Certain statements in this press release are forward-looking statements. Specifically, this press release may contain forwardlooking statements relating to management s approach to operations, estimates of future sales, production and deliveries, business plans for drilling and development, estimated amounts and timing of capital expenditures, anticipated operating costs, royalty rates, cash flows, financing, transportation plans and capacity, anticipated access to infrastructure or other expectations, beliefs, plans, goals, objectives, assumptions and statements about future events or performance. The reader is cautioned that the assumptions used in the preparation of such information, although considered reasonable by BPE at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Such factors include, but are not limited to: general economic, market and business conditions; industry capacity; competitive action by other companies; fluctuations in oil and gas prices; the results of exploration and development drilling and related activities; the uncertainty of estimates and projections relating to productions, costs and expenses; uncertainties as to the availability and costs of financing; fluctuations in currency exchange rates; the imprecision in reserve estimates; risks associated with oil and gas operations; such as operational risks in exploring for, developing and producing crude oil and natural gas, risks and uncertainties involving geology of oil and gas deposits; the weather in the Company s area of operations; the ability of suppliers to meet commitments; changes in environmental and other regulations; actions by governmental authorities including changes in laws and increases in taxes; decisions or approvals of administrative bodies; risks in conducting foreign operations (for example, political and fiscal instability or the possibility of civil unrest or military action in countries); the effect of acts of, or actions against international terrorism, and other factors, many of which are beyond the control of BPE. There is no representation by BPE that the actual results achieved during the forecast period will be the same in whole or in part as those forecast.