October 2019 Cautionary Statement on Forward Looking Information - - PowerPoint PPT Presentation

october 2019 cautionary statement on forward looking
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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


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October 2019

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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

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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

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1 - Review of current licences and historical exploration 2- Technical Geological overview

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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

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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

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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/)

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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

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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

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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

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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

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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

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X-TERRA Licences S N

Ordovician reflector ? Sandstone Prospect ?

Contact

  • rdovician / silurian

Silurian carbonate Massé extension

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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

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Source : Hu and Lavoie, OF 5485 

Drilled in 1979

Extensive work to study storage potential

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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

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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.