Frontier Plays in Congo and Offshore Namibia Spring 2012 TSX-V: - - PowerPoint PPT Presentation
Frontier Plays in Congo and Offshore Namibia Spring 2012 TSX-V: - - PowerPoint PPT Presentation
TSX-V: ENG | www.energulf.com Frontier Plays in Congo and Offshore Namibia Spring 2012 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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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
- pinions, stated herein.
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- Dallas based management team and West Africa based
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
- 2012 estimated capex (net) - $16.5 to $24.5 mm (2 to 3 wells)
- Block 1711 – Offshore Namibia
- Mean resource estimate: 3.166 Billion BO recoverable 2
– P10 aggregate (high case): 6.106 Billion BO recoverable 2
- 15 prospects, 3 independent plays
- EnerGulf interim Operator- 15+% Working Interest
- 2012 estimated capex (net) - $1.8 mm ($12 mm seismic program gross)
1 DeGolyer & Mac Naughton, March 2011 2 Netherland Sewell February 2012
EnerGulf: At a glance
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Directors, Advisors and Management
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- Jeffrey L. Greenblum: Director
- Chairman of the Board & CEO
- Served as senior official in President George
H.W. Bush administration at the Department
- f Energy and Department of Commerce.
- Senior executive with Diamond Fields
Resources, Inc (Sold to Inco for $4B). and KP Exploration (Kidder Peabody, oil & gas subsidiary).
- Holds strategic relationships with
government figures in West Africa
- Joe Soliz: Director
- J.D. degree from Harvard Law School and
has practiced U.S. and International Oil, Gas and Mineral Law since 1979
- Tom Fetters: Director
- Formerly Exxon, Exploration Planning
Manager
- CEO Consolidated Natural Gas,
- President of Exploration Company of
Louisiana
- Clive Brookes: Director & CFO
- 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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Directors, Advisors and Management
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- Dr. Joe Davis: Exploration Manager
- Formerly, R&D at Arco, Sr. Advisor at Maxus
Energy
- VP Exploration at Strategic Petroleum and
Hyperion Resource
- EnerGulf since 2006
- Dr. James Edwards:
- Exploration Advisor
- Formerly Triton Oil, Responsible for Cusiana
field discovery, Colombia (2nd largest W. Hemisphere)
- EnerGulf since 2006
- Steven L. Getz:
- Exploration Advisor
- Petroleum Explorationist: 40 years experience
- Geologist/Geophysicist: Allen Hoffman
Exploration Co., Santos, Cities Service
- Discoveries approximate 2 BBOE
- Joseph Canales:
- Geophysical Advisor
- 30 years experience geosciences/ geophysicist:
Perenco, Ocean Energy, UMIC, Conoco
- Experience in On shore and extensive off-
shore West Africa exploration
- Developed EnerGulf projects since 2006
- William Brumbaugh:
- Drilling Coordinator
- 34 years international experience: Conoco
(Regional Coordinator for West Africa/Chief Geophysicist 17 years), Mobil (Angola country manager, 5 years), Amoco, Total, Tullow, Anadarko, ExxonMobil and consultant to various governments, universities and World Bank
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Directors, Advisors and Management
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- Prof. Albert Ongendangenda:
- Director General- EnerGulf Congo SARL
- Located in Kinshasa
- Former Energy Advisor to President of DRC
- The Hon. Andimba Toivo Ya
Toivo:
- Senior Advisor for African Affairs
- Former minister of Mines and Energy,
Namibia
- Chairman of SWAPO (ruling party), Namibia
- Israel Hernandez:
- Senior Advisor for deepwater drilling,
engineering and operations
- Deep offshore drilling manager for Mobil,
BHP, ARCO
- Dr. Yves Neuville:
- Special Advisor to the Chairman and
CEO
- Former advisor to Minister of Budget and
Finance, France
- Professor at Sorbonne
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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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ENG Share Price (01/26/12): FD Shares Out: FD MCap: Working Cap (Jan/12) (1): O&W Proceeds (2): FD EV: $0.56 84,139,188 $47,117,945 $1,991,152 $8,752,188 $36,374,605
Share Structure & Capitalization
TSX-V: ENG | FSE: EKS Issued and outstanding: 68,623,438 Warrants: 7,730,750 Options: 7,765,000 Fully diluted: 84,139,188
* As at January 2012
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
CAPITALIZATION
NOTE: (1) Includes capital that may be in dispute with regards to legal claims by Veritas DGC (2) Proceeds calculated using the average exercise price of the options and warrants from the Aug 31, 2011 financials
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Regional Setting: Brazil- Africa Rift
Pre-Salt or Syn-Rift Time:
- Non-marine + salt deposition north of
the Walvis Ridge
Post-Rift Time:
- Turbidite fan deposition
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Democratic Republic of Congo Lotshi Block
- Population of 71.7 million people
- 11th largest country in the world
- Capital city is Kinshasa
- GDP of 23.12 billion USD (2010)
- Per Capita $300
- Country is rich in natural resources including
diamonds, gold, petroleum and copper
- The Congo is the largest producer of cobalt ore
in the world
- While the country has continual hardship in the
east, the DRC has successfully negotiated several peace treaties and has conducted two successful elections since 2006
- The UN continues to operate in the country in
an effort to allow peace to continue
- Fiscal Terms:
- 12.5% Royalty
- 100% capital costs available for
deductions, 75% in any given year
- Profit Oil split 45% / 55% between
Government and Contractor respectively
- No Income tax
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Lotshi Block: Democratic Republic of Congo
Cabinda South Block Operator: PlusPetrol 45% Lacula Oil (ROC Oil) 10% Force Petroleum 20% Sonangol 20% Cuba Petroleum 5% carry
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Location of 1st well
- 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
- Mean Estimate: 313.2 Million
BOE recoverable
- 2-3 well drill program set to
commence: Q2 2012
- First prospect to drill: Dallas
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Lotshi Block: History
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Lotshi Block: 1st Well
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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- At least 7 prospects (defined by 2-D seismic), 3 independent play ideas
– 450 km criss-crossed 2-D seismic (250 km originally shot Fina and 202 km shot by EnerGulf)
- Lucula (target reservoir in all seven 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 Formation is a secondary target in each prospect
- produces from the giant Rabi-Kounga field in Gabon and smaller fields in Gabon
- Tested at 2000 bbl/day in a recent discovery in nearby Cabinda.
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Lotshi Block: Prospect Portfolio
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Mean Aggregate – 313.2 million bbls over 7 prospects P10 Aggregate - 428.6 Million bbl recoverable P90 Aggregate – 207.7 Million bbl recoverable
(Prospective Resources per DeGolyer & MacNaughton Report 2011)
Lotshi Block: 7 Individual Prospects
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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 Mapper Image
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Namibia Block 1711
- Stable Democracy since independence gained in
1990
- Population of 2.1 million people
- 1.5 times the size of France
- Capital city is Windhoek
- BBB Country Risk Profile (The Economist,
2010)
- GDP of 14.64 billion USD (2010)
- Per Capita $6,900
- Encouraging international foreign investments
- Long history of resource tenure security
- Significant exploration and discoveries of
several different natural resources
- One of the lowest political risk jurisdictions in
Africa
- Fiscal Terms:
- 5.0% Royalty
- 100% capital costs available for
deductions
- 35% Income Tax
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- One of the first teams to secure block
in Namibia: EnerGulf
- Namibe Basin – No exploration drilling prior
to Kunene #1
- Northernmost offshore Block in
Namibia
- EnerGulf – Interim Operator
- 15+% working interest
- 2.2 million acre block
- Two Major Plays, multiple prospects
- 15 prospects (turbidite and syn-rift)
- Mean resource estimate:
- 3.166 billion BO recoverable
Block 1711
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- First well in Namibe
Basin - spud April 2008
- Water Depth – 772 m
- TD - 5050 m
- Well Status -suspended
- Petroleum system proven
by hydrocarbon shows in two zones (C1-C5)
- Shallow show is above the
Oil Window, and is evidence of migration
- The deep show was
associated with a mature source rock that was sampled in the well
Block 1711: Kunene #1 Well
Upper Reservoir Target Middle Reservoir Target
Clastics, Volcanic and Carbonate Debris
Lower Reservoir Target
Synrift
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- Prospects and leads:
- Multiple turbidite sand prospects, including 20,000 acre Hartmann prospect
– Five prospects – > 2 Billion/bbl mean recoverable 1 – 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 Prospects
– Four prospects in grabens, four in horst blocks – >1 billion/bbl mean recoverable 1 – Similar geology to Pre-Salt in Campos Basin Brazil and M’Boundi, Upper Congo Basin
Block 1711 Prospect Portfolio
1 Netherland Sewell February 2012
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2011 Work Program Results
- 2010-11 work program finished
mid-July
- Kunene #1 tied to seismic
- Revised age determinations
- Revised lithology
- Revised play concepts
- Current Co-Venturers:
- New Operator- 51 to 55% available-
Data Room open
- Sintez (now NAKOR) - 10% carry
(through 2012 and one well)
- PetroSA – 10%
- EnerGulf – 15 to 19%
- Namcor – 7% (carried)
- HRT – 2.7%
- Kunene Energy – 0.3% (carried) (BEE)
- Findings:
- Recognition of Tertiary contourite and
turbidite facies
- Mapped coarse-grained turbidite deposits
through out block
- Evidence of salt in Syn-Rift Section. Re-
mapped Syn-Rift
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Legend
Existing 2D Proposed 3D Turbidite Prospect Syn-Rift Grabens Syn-Rift Horsts Gas Chimney
- ~ 925 km2
- Cost ~ $12 million
- Target 2nd Quarter 2012
Block 1711: 3D Seismic Program
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Summary
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2012 Proposed Timeline
NOTE: The proposed timeline is an approximation only and subject to change
Data Room for Potential JV Partners Resource report Q1 2012
Block 1711
Q2 2012 Q3 2012 Q4 2012 2013
Lotshi Other
Data Room for Potential JV Partners Contract and mobilize rig Tender, Begin, Process, Map and Review 3D seismic Contract and mobilize rig Spud well Pursue other
- pportunities
Spud 1st well Spud 2nd well 24
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Investment Highlights
- World class lead asset – Lotshi block
- On trend with major Oil field
- Seven seismically defined prospects identified
- 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
- Two wells to be drilled in 2012 targeting upwards of 114 mm bbls Mean Prospective Reserves
- Excellent capital structure/ minimal dilution
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Appendix
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Regional Setting: Pre-Salt Play
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Regional Setting: Post-Rift Turbidite Play
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Pre-Salt and Tertiary Turbidite Plays
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- May, 2003: Company closes financing for $471,500 at $0.10 (w/ one warrant at $0.15) and commences activities in the US
and Canada
- Late 2003: Acquires 25% WI in the Alborada Block in Colombia and closes $948,526 financing at $0.45 (w/ one warrant at
$0.675)
- 2004: Participates in one well in Texas
- 2005: Enters Africa (Nigeria, Namibia, Tanzania and DRC), drills another well in Texas and completes $1.4mm financing
at $0.70 per unit (w/ one warrant at $1.15)
- 2006: Closes $1.3mm financing at $3.50 per share unit (w/ one warrant at $5.50), enters into JVs on Block 1711 and
drilled well in Texas
- 2007: Closes $5.0mm financing at $0.70 per share unit (w/ one warrant at $0.90)
- 2008: Spuds and completes well on Block 1711, closes $8.8mm financing at $1.10 per share unit ( w/ one warrant at $1.35)
- 2009: Closes $2.5mm financing at $0.35 per share unit (w/ one warrant at $0.50)
- October 27, 2010: Seismic Operations Completed on Lotshi Block
- September 9, 2010: ENG appointed interim operator Block 1711
- November, 2011: Closes financing for $3.2mm at $0.40 per share unit (w/ one warrant at $0.65)
- 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
Historical Timeline through 2012
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