Congo and Offshore Namibia Frontier Plays in Fall 2011 TSX-V: ENG - - PDF document

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Congo and Offshore Namibia Frontier Plays in Fall 2011 TSX-V: ENG - - PDF document

TSX-V: ENG | www.energulf.com Congo and Offshore Namibia Frontier Plays in Fall 2011 TSX-V: ENG Disclaimer Certain disclosure in this presentation constitute forward-looking statements that are subject to numerous risks, uncertainties and


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Frontier Plays in Congo and Offshore Namibia

TSX-V: ENG | www.energulf.com Fall 2011

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Fall 2011

Disclaimer

Certain disclosure in this presentation constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to the Company’s operation as an oil and gas exploration company that may cause future results to differ materially from those expressed or implied by those forward-looking

  • statements. Readers are cautioned not to place undue reliance on these statements as they involve known and

unknown risks, uncertainties and other factors that may cause a hinge in assumptions and the actual outcomes and estimates may be materially different from the estimated or anticipated future results, achievements or positions expressed or implied by those forward-looking statements. The Company disclaims any intentions or

  • bligations to update or revise any forward-looking statements whether as a result of new information, future

events or otherwise. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this

  • presentation. Furthermore, any resource estimate(s) contained in this document that have been prepared in-

house by the Company (including any such references to resource estimate-potential) is not compliant with National Instrument 51-101 – Standards of Disclosure for Oil & Gas Activities. Such resource estimate(s) contained in this document is based on management’s interpretation of available data and the assumptions stated herein. Accordingly, such estimate(s) should not be relied upon. The reader is advised to obtain independent advice regarding the available data and the assumptions, and the opinions, stated herein.

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TSX-V: ENG

  • Management and technical team have track record of successful projects

in West Africa

  • Lotshi Block – Democratic Republic of Congo (DRC )
  • Mean resource estimate: 313.2 Million BOE recoverable 1
  • P10 aggregate (high case): 428.6 Million BOE recoverable 1
  • 7 Prospects, 4 independent plays
  • EnerGulf Operator – 90% Working Interest
  • Block 1711 - Offshore Namibia
  • Giant* field(s) potential
  • 15 prospects, 3 independent plays
  • EnerGulf interim Operator- 15+% Working Interest

1 DeGolyer & Mac Naughton, March 2011

* AAPG definition: >500 million bbl.

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Fall 2011

EnerGulf: At a glance

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Directors, Advisors and Management

  • Jeffrey L. Greenblum: Director
  • Chairman of the Board, CEO Served as senior
  • fficial in President George H.W. Bush

administration at the Department of Energy and Department of Commerce. Senior executive with Diamond Fields Resources, Inc (Sold to Inco for $4B). and KP Exploration (Kidder Peabody).

  • Clive Brookes: Director
  • CFO, B. Commerce from UBC. Served as a

Director, executive and financial consultant to companies listed on the TSX Venture Exchange. Founded and developed several start up companies in resource, service and medical sectors.

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Fall 2011

  • Tom Fetters: Director
  • Formerly Exxon, Exploration Planning Manager,

CEO Consolidated Natural Gas, President of Exploration Company of Louisiana

  • Joe Soliz: Director
  • J.D. degree from Harvard Law School and has

practiced U.S. and International Oil, Gas and Mineral Law since 1979

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Fall 2011

Directors, Advisors and Management

  • Dr. Joe Davis: Exploration advisor.
  • Formerly, R&D at Arco, Sr. Advisor at Maxus Energy
  • VP Exploration at Strategic Petroleum and Hyperion Resources
  • Dr. James Edwards: Explorations advisor, Exploration and Acquisitions.
  • Formerly Triton Oil, responsible for Cusiana field discovery, Colombia (2nd largest W. Hemisphere)
  • Israel Hernandez: Senior Advisor for deepwater drilling, engineering, and
  • perations.
  • Deep Offshore drilling manager for Mobil, BHP, ARCO
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Fall 2011

Directors, Advisors and Management

  • Prof. Albert Ongendangenda: Director General – EnerGulf Congo SARL -

Kinshasa office

  • Former Energy Advisor to President of DRC
  • The Honorable Andimba Toivo Ya Toivo : Senior Advisor for African Affairs
  • Former Minister of Mines and Energy, and Chairman of SWAPO (ruling party), Namibia.
  • Dr. Yves Neuville : Special Advisor to the Chairman and CEO
  • Past advisor to Minister of Budget and Finance, France. Professor at Sorbonne
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Fall 2011

Technical Team Experience

  • Worked as a team for 20 years
  • West Africa Experience:
  • Billion barrel discovery (Zafiro) in Equatorial

Guinea

  • Development experience at Zafiro and Alba

(Equatorial Guinea)

  • Successful bid in Nigeria License Round
  • Development project in Ivory Coast
  • E&P projects in Angola, Cameron, Gabon,

Republic of South Africa

  • Additional Experience:
  • Siberia, Venezuela, Colombia, Indonesia, Malaysia,

Iraq

  • USA onshore and offshore Gulf of Mexico.
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Fall 2011

West Africa: Regional Setting

  • The rift that opened the South

Atlantic is the key to understanding hydrocarbon deposits in Brazil and West Africa.

  • 1711 Block was juxtaposed to

the Santos Basin in Brazil during the early rifting of the Atlantic Ocean.

  • 1711 Block and Lotshi Block in

DRC are not only on-trend to producing fields in West Africa, but are also conjugate to key rift basins in Brazil.

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Fall 2011

Regional Setting: Brazil- Africa Rift

Pre-Salt or Syn-Rift Time: Non-marine + salt deposition north

  • f the Walvis Ridge.

Post-Rift Time: Turbidite fan deposition.

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Fall 2011

Regional Setting: Pre-Salt Play

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Regional Setting: Post-Rift Turbidite Play

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Fall 2011

Pre-Salt and Tertiary Turbidite Plays

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Fall 2011

Democratic Republic of Congo

Lotshi Block

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Lotshi Block: Democratic Republic of Congo

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Fall 2011

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Lotshi Block: History

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Fall 2011

Location for 1st well

  • Forabola #1 drilled in 1973
  • PSA signed in 2005
  • Presidential decree in 2008
  • Airborne magnetics and gravity

survey in 2008

  • Boundary survey in 2009
  • 2D seismic survey in 2010
  • Prospective resource report

completed May 2011

  • Drill program preparation

underway

  • Plan to Spud Q2 2012
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Fall 2011

Lotshi Block – Prospect Portfolio

  • At least 7 prospects, 3 independent play ideas.
  • Lucula (target reservoir in all 7 prospects):

– Forabola well drilled in 1970’s defined the Lucula Formation as the best potential reservoir on the block – Lucula is stratigraphically equivalent to the reservoir at the giant M’Boundi field.

  • Bucomazi is also a primary target in one prospect

– Good reservoir properties in adjacent block to north

  • Fractured basement or “basement wash” is a primary target in two of

the prospects.

– Produced hydrocarbons in nearby Lindu well and in nearby Cabinda.

  • The Chela Dolomite is a secondary target in each prospect.

– produces from the giant Rabi-Kounga field in Gabon and smaller fields in Gabon.

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Lotshi Block: 1st Well

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Fall 2011

Loeme Salt Main Rift Fault Proposed TD of well, 2300 m Chela Dolomite Bucomazi Lucula

Primary target ~1200 ft of closure Secondary targets

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Mean Estimate – 313.2 million bbl over 7 prospects

(Prospective Resources per DeGolyer & MacNaughton Report 2011)

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Fall 2011

Lotshi Block: 7 Individual Prospects

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P10 Aggregate 428.6 Million bbl recoverable

(Prospective Resources per DeGolyer & MacNaughton Report 2011)

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Fall 2011

Lotshi Block: Prospective Resources

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Fall 2011

2012 Work Program

  • Dallas Prospect
  • 2300 M total depth
  • Other Prospects
  • 1500 m total depth
  • Approximately 30 days

to drill each

  • Current pro forma
  • $8.5 million per well
  • Planned Spud date Q2-

Q3 2012

Satellite Thematic Mapped Image

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Fall 2011

Nambia

Block 1711

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  • Northernmost offshore B

Northernmost offshore Block in

  • ck in

Namibi Namibia

  • EnerGulf

EnerGulf - Interim nterim Operator Operator

  • 2.2 m

million a llion acre b cre block

  • ck
  • Two Ma
  • Major Plays, m

r Plays, multiple pros ltiple prospects pects

  • Namibe

Namibe Basin – Basin – No exploration

  • exploration

drilli drilling prior to Kunene #1 g prior to Kunene #1

  • 15% W

15% Worki rking Interest g Interest (possi (possibl ble 19%) e 19%)

  • Co-V

Co-Venturers: enturers:

  • 51-55% W.I. available
  • NAKOR - 10% (carried)
  • PetroSA – 10% W.I.
  • Namcor – 7% (carried)
  • HRT – 2.7%
  • Kunene Energy - 0.3% (carried) (BEE)

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Fall 2011

Block 1711: Namibia

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  • First well in Namibe

First well in Namibe Basin Basin

  • Working petroleum system proven by

rking petroleum system proven by hydrocarbon shows in Kunene #1 well hydrocarbon shows in Kunene #1 well

  • Water Depth –

ter Depth – 772 m 772 m

  • Spud –

Spud – Apri pril 9, 2008 9, 2008

  • TD @ 5050 m, Jul

TD @ 5050 m, July 19, 2008 19, 2008

  • Testi

sting -

  • August 7-25, 2008

ugust 7-25, 2008 (EnerGul (EnerGulf non-consented) non-consented)

  • Rig released Septemb

Rig released September 7, 2008 r 7, 2008

  • Well Status -suspended

ll Status -suspended

Deep Venture drilled the Kunene #1 Well

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Fall 2011

Block 1711: Kunene #1 Well

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Fall 2011

Block 1711: Kunene #1 Results

Upper Reservoir Target Middle Reservoir Target

Clastics, Volcanic and Carbonate Debris

Lower Reservoir Target

Synrift

  • Hydrocarbon shows (C1-C5)
  • Working petroleum

system

  • Evidence of migration
  • Evidence of mature

source rock

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Fall 2011

2011 Work Program Results

  • 2010-11 work program

finished mid-July

  • Kunene #1 tied to seismic
  • Revised age determinations
  • Revised lithology
  • Revised play concepts
  • Findings:
  • Hydrocarbon source potential in the Neo-Protezoic
  • Evidence of salt in Syn-Rift Section
  • Recognition of Tertiary contourite and turbidite facies
  • Recognition of variations in Basement tectonics from North to South
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Fall 2011

Block 1711: 3D Seismic Program

Existing 2D Proposed 3D Turbidite Prospect Syn-Rift Prospect Basement Prospect Gas Chimney

  • ~ 925 km2
  • Cost ~ $12 million
  • Target 2nd Quarter

2012

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  • Prospects and leads:
  • Multiple turbidite sand prospects, including 20,000 acre Hartmann prospect
  • 7 prospects
  • Giant* Fields potential
  • Direct hydrocarbon indicators: Amplitude anomalies (bright spots), flat spots, frequency shadows. Gas Chimneys
  • Similar geology to offshore Luanda, Angola and Deepwater Gulf of Mexico
  • Several syn-rift leads
  • 4 prospects
  • Giant* Fields potential
  • Similar geology to Pre-Salt in Campos Basin Brazil and M’Boundi, Upper Congo Basin
  • Several very large basement leads.
  • 4 Prospects
  • Giant* Fields potential

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Fall 2011

Block 1711 Prospect Portfolio

* AAPG definition > 500 million bbl

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Completed to date:

  • October 27, 2010: Seismic Operations Completed on Lotshi Block
  • September 9, 2010: ENG appointed interim operator Block 1711
  • April 5, 2011: ENG Commissions resource estimate for Lotshi Block and assembles drill team
  • May 11, 2011: ENG receives Lotshi Block prospective resources report
  • July 2011: 1711 work program completed: Revised age determinations, revised play concepts
  • September 2011: 1711 work program results presented to Ministry of Mines and Energy

Moving forward through 2012:

  • Lotshi Block drilling expected to commence Q2-Q3 2012
  • 3 Wells
  • Block 1711 work program expected to commence Q2 2012
  • Including 3D seismic
  • Discussions/ negotiations with potential JV partners

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Fall 2011

Projects progress through 2012

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Fall 2011

Projects progress through 2012

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Investment Highlights

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Fall 2011

  • World class lead asset- Lotshi block
  • On trend with major Oil field
  • High potential for large resource- 90% owner and Operator
  • World class JV asset- Block 1711
  • Interim operator with minority stake
  • Located in an emerging Oil and Gas hot spot- Offshore Namibia
  • Early stage with exponential potential for growth
  • Experienced and diversified management and advisors
  • Excellent in-country relationships
  • Work Programs set for 2012
  • Will develop increased and consistent news flow
  • Excellent capital structure/ minimal dilution
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Share Structure

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Fall 2011

Issued and outstanding: 68,363,438 Warrants: 7,730,750 Options: 6,355,000 Fully diluted: 82,449,188

* As at August 2011

TSX-V: ENG FSE: EKS

Last Private Placement: 26/11/10

  • $3,224,200 @ $0.40 (8,060,500 units)
  • one purchase warrant for two years @

$0.65 per unit