October 2019 Cautionary Statement on Forward Looking Information - - PowerPoint PPT Presentation
October 2019 Cautionary Statement on Forward Looking Information - - PowerPoint PPT Presentation
October 2019 Cautionary Statement on Forward Looking Information Certain information contained in this document may include forward - looking information within the meaning of applicable Canadian securities legislation. Forward-looking
Certain information contained in this document may include “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information may include, among others, statements regarding the future plans, costs, objectives or performance of X-Terra Resources, or the assumptions underlying any of the foregoing. In this document, words such as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate” and similar words and the negative form thereof are used to identify forward-looking statements. Forward- looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur, including the development of X-Terra Resources’ properties, or if any of them do so, what benefits X-Terra Resources will derive. Forward-looking information is based
- n information available at the time and/or management's good-faith belief with respect to future
events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond X-Terra Resources’ control. These risks, uncertainties and assumptions include, but are not limited to, those described under “Financial Instruments” and “Risk and Uncertainties in X Terra Resources’ Annual Report for the fiscal year ended December 31, 2016, a copy of which is available on SEDAR at www.sedar.com, and could cause actual events or results to differ materially from those projected in any forward-looking
- statements. X-Terra Resources does not intend, nor does X Terra Resources undertake any
- bligation, to update or revise any forward-looking information contained in this document to reflect
subsequent information, events or circumstances or otherwise, except if required by applicable laws.
Cautionary Statement on Forward Looking Information
Southern Québec
QC Gas consumption
~ 290 Bcf/yr
QC Oil consumption
~ 127 mmBo/yr
Surrounded by numerous infrastructures :
LNG Project
Refinery
Pipelines
Close proximity to deep water
LNG: Energie Saguenay LNG Bear Head/ AG LNG Goldboro LNG Canaport/ Irving refinery Boston Gaspé Québec Refinery Montréal Refinery
Lower Gaspésie Project
3
1 - Review of current licences and historical exploration 2- Technical Geological overview
4
5 Hydrocarbon exploration licences :
Total :~230,480 Ac (93,272 ha)
Low population: mainly farm and forest, flat lands
Many paved and gravel roads:
perpendicular to geological strutures
Underexplored Territory
NO DECOMMISIONNING LIABILITY
2008PG996 18,802 Ha 2088PG997 21,427 Ha 2088PG402 16,560 Ha 2088PG401 20,477 Ha 2088PG400 16,006 Ha 5
2 high resolution mag surveys covering all licences
Few available seismic profils : Mainly regional gouvernmental acquisitions
2D seismic: regional coverage
Sources : http://sigpeg.mrn.gouv.qc.ca/gpg/hydrocarbures/hydrocarbures.htm
In red: seismic profils Approximative location
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Cleary highlights bedding trends
Highlights fracturation patterns
Adds value to a 2D seimic survey :
Better design
Filling gaps between lines.
Inversion work can be included in a follow up exploration program
7
Utica Resources acquired all of Cuda Oil and gas`s Québec assets for a total consideration of 10,6 MM$ (https://cudaoilandgas.com/wp-
content/uploads/2019/09/Press-Release-Sept-4-2019.pdf)
Cuda owned 1,8 M net acres on december 31, 2018 (sedar)
Questerre is acquiring approximately 753,000 net acres for a total consideration of ~ 11MM$ (https://www.questerre.com/news/2019/03/07/march-7-2019-
questerre-executes-agreement-to-acquire-quebec-assets/)
8
9
Gaspé Belt:
Massé extension
Humber zone :
Trend of existing discoveries
Sandstone conventional reservoir
High potential for shale gas discovery
Plateform zone:
Utica shale gaz potential
Dolomitized Carbonate (TBR)
St-Flavien : 4 BCF gas Storage Du Park Wells: Resevoir storage Massé Oil discovery Pockmarks Galt Oil discovery St-Simon : Test 400 mcf/d
X-Terra Licences
Joly, permiting well Port-O-Port Oil discovery 10
NW Charlevoix Saint-Lawrence river
SE Massé Discovery
Precambrian Ordovician Platefrom siliclastic
Ordovician Trusted Slope siliclastic Siluro-Devonian Carbonate
Pockmarks: Gas events Massé :oil
Humber Zone Platform and trusted carbonate Gaspé Belt
11
Gaspé Belt
Massé reservoir continuity
Humber Zone
Ordovician shale potential
Sandstone reservoirs
Plateform:
Utica shale equivalent
TBR dolomitization
Modified from Pinet et al, 2014
Source rocks Réservoir rocks
Massé reservoir Park reservoir 12
Thermogenic gas escaping from Paleozoic rocks just north of X-Terra’s licences, in the Saint-Lawrence river
Over 2,000 pockmarks have been identified by high resolution bathymetry survey
Source : Lavoie, D. Pinet, et al, 2010 Gas escaping from bedrock
Image X-Terra
13
Sources : Squatex and Petrolympic public presentations, 2015,2016,2017. Sproule evaluation, 2016
Ordovician source rocks continuing
- nto X-terra licences
Oil discovery Siluro-Devonian Gaspé Belt
Sproule, 2016: 61,1 MMBOE in place
X-Terra Licences :
Possible Siluro-Devonian play extension
Vertical stack of source rocks ?
NW SE
Neigette fault
High porosity created by carbonate dolomitisation Ordovician Rocks Gaspé Belt
Possible extension to X-Terra’s Licences
14
X-TERRA Licences S N
Ordovician reflector ? Sandstone Prospect ?
Contact
- rdovician / silurian
Silurian carbonate Massé extension
15
Good indicator for deeper oil and gas conservation
Ordovician formations highlighting high levels of TOC in the
- il generation
windows.
Excellent position for an unconventional discovery
Source : Bertrand et al , 2010
16
Source : Hu and Lavoie, OF 5485
Drilled in 1979
Extensive work to study storage potential
17
Marcil et al, 2013
Thériaut, MERN
Upper siliclastic interval Lower siliclastic and carbonate interval
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Humber zone Plateform and trusted carbonate
Gaspé belt
A A’
Humber zone Gaspe Belt
A A’
Modified from Pinet et al, 2014
19
Gaspé belt
B B’
Humber zone Gaspe Belt
B B’
Modified from Pinet et al, 2014
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X-Terra licences are surrounded by hydrocarbon
showings and discoveries
Licences highlight great potential for conventional
and non-conventional opportunites in three differents highly prospective geological settings.
Value creation could occur with social acceptibility
improvement and/or low cost exploration program
21 About the Author
- Mr. Jérémie Lavoie, P. Ing. MBA a consultant to X-Terra Resources, has been working for more than 13 years in the oil and gas exploration industry with
extensive experience in Québec, broader Canada and the United States. He has reviewed all available data and is the author of this presentation.