March 2011
PetroNova Inc. Growth Through Exploration Corporate Presentation - - PowerPoint PPT Presentation
PetroNova Inc. Growth Through Exploration Corporate Presentation - - PowerPoint PPT Presentation
March 2011 PetroNova Inc. Growth Through Exploration Corporate Presentation Cautionary Notes This Presentation includes and is based on forward-looking information and statements that are subject to risks and uncertainties that could cause
This Presentation includes and is based on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. Factors that might cause or contribute to such differences include, but are not limited to, economic conditions globally, the impact of competition, political and economic developments in the countries in which PetroNova operates, regulatory developments in Italy and internationally and changes in oil prices and in the margins for PetroNova products. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "anticipates", "targets", "goals", "projects", "intends", "plans", "believes", "seeks", "estimates", variations of such words, and similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for PetroNova‘s businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time. Although PetroNova believes that its expectations and the information in this Presentation were based
Cautionary Notes
time to time. Although PetroNova believes that its expectations and the information in this Presentation were based upon reasonable assumptions at the time when they were made, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in this Presentation. PetroNova is not making any representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the information in the Presentation, and neither PetroNova nor any of its directors, officers or employees will have any liability to the reader or any other persons resulting from the reader's use of the information in the Presentation. PetroNova undertakes no obligation to publicly update or revise any forward-looking information or statements in the
- Presentation. The reader should consult any further disclosures PetroNova may make in documents it files with the
applicable securities regulators. The Presentation is intended for educational and informational purposes only and do not replace independent professional judgment. Statements of fact and opinions expressed are those of the participants individually. The reader should consult with a lawyer, accountant and other professionals in respect of contents hereof.
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- Mitigate geological risk inherent to exploration, by
following fundamental guidelines established for participation in new areas:
- Presence of proven hydrocarbon systems in the area
- Existence and availability of sufficient technical
information to allow preliminary evaluation
Strategy
information to allow preliminary evaluation
- Proximity to infrastructure, existing or underdevelopment
- Attractive economics under conservative price forecasts
- Focus growth on high impact, moderate risk exploration
in Colombia through our existing 5 block portfolio
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Blocks in the most prolific Basins in Colombia
5
blocks onshore Colombia which PetroNova participates in
2
blocks which PetroNova operates
Well Rounded Exploration Portfolio
CPO 7
COLOMBIA VENEZUELA
Caguán - Putumayo Basin Tinigua Block Operator: PetroNova 90% W.I.
2
blocks which PetroNova operates
247
Million barrels of oil, Unrisked Prospective Resources (Best estimate) to PetroNova’s W.I.*
1.84
Million acres, area covered by the 5 blocks
High working interests
* Independent engineer report (Petrotech Engineering Ltd.) dated April 30, 2010
CPO 6 CPO 13 CPO 7 PUT 2 TINIGUA
ECUADOR
3 Llanos Basin CPO 6, CPO 7 & CPO 13 Blocks Operator: Tecpecol 20% W.I. Caguán - Putumayo Basin PUT 2 Block Operator: PetroNova 100% W.I.
Seasoned and Accomplished Team
- Seasoned team, with PDVSA experience, working
together since mid 90’s
- Successfully created and grew Inepetrol, an independent
- Successfully created and grew Inepetrol, an independent
E&P company in Venezuela, to 4,000 boe/d and over 76 mmboe of 2P reserves
- Extensive Colombian experience
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Management & Directors
Management Board of Directors
Antonio J. Vincentelli, President & CEO
Director Inepetrol, Formerly Inelectra
Stelvio Di Cecco, CFO
Director Inelectra, Inepetrol
José A. Paz, VP Operations
Formerly Inemaka, Inepetrol
Eugenio Ochoa, VP Exploration & Production Anthony Lambert
CEO Daylight Oil & Gas
Judy Stripling
CFO Pace Oil & Gas Ltd.
Ricardo Halfen
Director Inelectra, Inepetrol
Antonio J. Vincentelli, President & CEO Eugenio Ochoa, VP Exploration & Production
Formerly Texas, Shell, PDVSA, Inepetrol
Juan M. Szabo, Director of Corporate Development
Director Suroco Energy Inc. Formerly VP Exploration & Production and CFO PDVSA
Antonio J. Vincentelli, President & CEO Stelvio Di Cecco, CFO
Advisory Board
Ruben Halfen
Inelectra, Inepetrol
Luis E. Christiansen
Inelectra, Inepetrol 5
Llanos Basin
CPO 6, 7 & 13 Blocks
CPO-6 CPO-13 CPO-7
Llanos Basin
Blocks
CPO 6, 7 & 13 Blocks
- 20% W.I. on CPO 6, 7 and 13 blocks
- 1,638,038 combined gross acres
- Tecpecol S.A. is the operator and
strategic partner
- ANH contracts, X factor (ANH
participation) of 39%, 47% and 32%, for blocks 6, 7 and 13 respectively
- Llanos Basin is the most prolific
hydrocarbon basin in Colombia, numerous fields with substantial 2P reserves and commercial production nearby
Rubiales / Quifa fields Caracara Fields Ocelote field,
- Recently acquired 2,075 km of 2D
seismic over the 3 CPO blocks
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CPE 6 CPE 7
15 30 45 km
The Right Neighbourhood
Ocelote Field
- Commercial Production
- Gravity: 24° API
Sabanero Discovery
- Maurel & Prom
- 2 successful exploration wells
- Further extends Quifa / Rubiales
Caracara Block
- Commercial Production
- Substantial Reserves
- Gravity: 22 - 29° API
- Multiple fields
Mago-1 Discovery
- Ecopetrol / Shell
- Nov 2010 exploration well
8
Guairuro Discovery
- Pacific Rubiales / Talisman
- Successful exploration wells
- Extends Quifa / Rubiales
structural trends to the west
- Identifies Stratigraphic Trap
- Further extends Quifa / Rubiales
structural trend
15 30 45 km
Rubiales and Quifa Fields
- Largest Accumulation in
Colombia
- 11 – 13 ° API Heavy Oil
- Account for the biggest
production increase in the last years
- Nov 2010 exploration well
- Presence of crude oil in the
Carbonera formation, petrophysical parameters similar to Quifa
CPO 13 Resource Potential
- Prior to the Petrotech report:
- Minimal historic 2D seismic
- Identified 3 prospects & 5 leads
- P50 unrisked prospective resource: 38
mmbbl (7.6 mmbbl net to PetroNova)*
- Recent developments:
- 729 km of new 2D seismic, processing
completed, interpretation in progress.
- Pacific Rubiales new discoveries: Quifa &
Guairuro
- Multiple new leads based on preliminary
data from field stacks
- Prospective resource: ? Mmbbl
- Drilling expected end 2011 early 2012
* Petrotech Engineering Ltd. report dated April 30, 2010
Mago-1 Discovery
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15 30 45 km
Guairuro Discovery
- Pacific Rubiales / Talisman
- P50 prospective resource:
634 mmbbl Mago-1 Discovery
- Ecopetrol / Shell
- Nov 2010 successful
exploration well
CPO 6 & 7 Resource Potential
Prior to the Petrotech report:
- 3,127 km of historic 2D seismic
- Identified 6 prospects & 3 leads
- P50 unrisked prospective
resource 44.5 mmbbl (8.9 mmbbl net to PetroNova)*
* Petrotech Engineering Ltd. report dated April 30, 2010
LEADS
QUIFA
10 10
Recent developments:
- Quifa and Sabanero
- 1,329 km of new 2D seismic
acquired in CPO-6 and CPO-7, data processed, interpretation in progress.
- Historical and new seismic
integration yielding new prospective structures
- Drilling to commence Q2.
Advanced permitting process for two locations in 6 and one in 7
LEADS PROSPECTS HEAVY OIL BELT EXPLORATION AREA PRODUCTION AREA OILFIELDS PIPELINE HISTORIC 2D SEISMIC 2010 2D SEISMIC
15 30 45 km Sabanero Discovery
- Maurel & Prom
- 2 successful
exploration wells
Quifa North
- Numerous Successful
Outpost Wells
Caguán-Putumayo Basin
PUT 2 Block
Caguán- Putumayo Basin
PUT 2 Block
- Operated by PetroNova with
100% W.I.
- 96,666 gross acres
- ANH contract, X factor of 1%
- Putumayo Basin is the Northern
extension of the Oriente Basin
- f Ecuador and is one of
Colombia’s most prolific basins
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- Over 400 mmbbl of oil have
been discovered in more than 28 oil fields
- Large exploration and
development activities in neighbouring blocks by Gran Tierra, Vetra, Pacific Rubiales, Sinochem
- Recently shot 100 km of new
2D seismic
10 20 30 km
PUT 2 Prospects
“A “A-
- NW”
NW” Lead Lead
PUT 2 PUT 2
“Nogal A” “Nogal A” Lead Lead
Canelo Canelo Norte Norte Prospect Prospect
Nogal Nogal-
- 01
01
Canelo Canelo Sur Sur Prospect Prospect
CA CAN- CAN-2009-01 CAN-2009-03 CAN-2009-05 CAN-2009-07 CAN-2009-09 CAN-2009-11 CAN-2009-02 B-1990-114 B-1990-106 B-1987-01-EXT. B-1990-105 B-1990-110 CAN-2009-04Lead “A-NW” Canelo Sur Canelo Norte
1082000- 5 prospects identified, P50 prospective
resources: 53.4 mmbbl*
- Since Petrotech study:
- 100 km of new 2D seismic shot
- 2D seismic data exchange with
Alea-1947 C block
- Reprocessing original field data
- f Nogal area
- 2 new leads identified
Block Block
“B” Lead “B” Lead
Cedrillo Cedrillo Norte Norte Prospect Prospect Cedrillo Sur Cedrillo Sur Prospect Prospect
MAX M.L. Min
Nogal Nogal-
- 01
01 Prospect Prospect
PUT-2 BLOCK ALEA-1947-C BLOCK
MAX M.L. MinNogal-01 Prospect Nogal-A Lead
MAX M.L. Min 1082000Cedrillo Norte Cedrillo Sur
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- 2 new leads identified
- 3D campings in Canelo Sur and
Nogal in Q2, Q3 2011
- Drilling first well Q3 of 2011
* Independent engineer report (Petrotech Engineering Ltd.) dated April 30, 2010
PUT 2 – 2011 3D Program
Caguán-Putumayo Basin
Caguán- Putumayo Basin
Tinigua Block
Tinigua Block
- Operated by PetroNova with 90% W.I.
- 105,471 gross acres
- ANH contract, no X factor
- The Caguán-Putumayo Basin has seen
very little exploration since the 1970s due to socio-political problems
- On trend with Capella Field
discovered in 2008, 42 mmbbl of 2P discovered in 2008, 42 mmbbl of 2P reserves and 72 mmbbl of P50 contingent resource
- Tinigua block contains Uribe-1 pre-
existing exploration well with oil shows and 1,160 ft sand column
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15 30 45 km
Capella Field
- Sinochem and Canacol
- OOIP 2.2 billion bbl
Tinigua Prospect Uribe-1 Well Drilled in 1977
3 Km
Tinigua Block Prospect
- The Tinigua prospect was identified after reprocessing and interpreting the 294
km 2D Uribe 1970-1971 survey, tied to the Uribe-1 well stratigraphic markers
- Uribe-1 exploration well was drilled off structure, but penetrated a gross sand
column of 1,160 ft
- The Tinigua prospect is a four-way closure at the crest of a large fault
propagation fold
A B’ A A’
- Whole trap P50 prospective resource 197 mmbbl*
- 109 km2 3D seismic survey has been contracted
- ver Tinigua prospect
- Drill Tinigua prospect 2011 Q3
17 A’ B B’ B
11 Km
- Drill Tinigua prospect 2011 Q3
* Independent engineer report (Petrotech Engineering Ltd.) dated April 30, 2010
Porosity: 20%
Regional Geological Framework
- 1100
- 1
- 1
- 1200
- 1200
- 1
- 1200
- 1200
- 1200
- 1
- 1100
- 1
TOTAL GROSS SAND: 1,160 Feet
2
Seal rock Reservoir rock Source rock Oil Shows (Ditch Samples)
- URIBE-1 (TVD)
Mirador Sandstones Tertiary Objective Excellent Source Rock Macarena Gr. Shales Time Structural Map Top Mirador Fm.
HIGH (P10) LOW (P90) BEST (P50) 4192 2488 3491 Area (Acres)- 1
- 1
- 1400
- 1400
- 1300
- 1400
- 1
- 1300
- 1200
- 1200
Acres
18 1 2
Macarena Gr. Sandstones Cretaceous Objective Time Structural Map Top Macarena Gr.
Prospective Resource Summary
Petrotech Prospective Resources Estimates (April 30, 2010)
Unrisked Prospective Resources (mmbbl) Average COS** Risked Prospective Resources (mmbbl)*** Blocks Low Best High % Low Best High
CPO 6 (20% W.I.) 0.5
2.0
6.5 30.0 0.2
0.6
2.1 CPO 7 (20% W.I.) 0.8
6.9
30.4 29.0 0.2
2.0
9.1 CPO 7 (20% W.I.) 0.8
6.9
30.4 29.0 0.2
2.0
9.1 CPO 13 (20% W.I.) 3.0
7.6
17.4 21.0 0.6
1.6
3.7 Tinigua (90% W.I.) 49.6
177.1
349.4 36.2 17.2
64.1
125.7 PUT 2 (100% W.I.) 15.5
53.4
131.5 30.4 4.7
16.2
40.1 Total Net Resources 69.4
247.0
535.2 22.9
84.5
180.7
* PetroNova’s W.I. share before deduction of royalties ** Chance of success is the average Chance of Geological Success of all prospects and zones in block *** Risked prospective resources estimated by applying average chance of successes estimates 19
Status Report
Block Permits Seismic Program
Drilling
Social Environmental Acquisition Processing Interpretation
CPO 6
- In progress
- In progress
Q2 first well 3 wells in 2011
CPO 7
- In progress
- In progress
In progress Mid 2011 first well
CPO 7
- In progress
- In progress
In progress well 3 wells total
CPO 13
- In progress
- In progress
In progress End of 2011 3 wells total
PUT 2
- In progress
- In progress
In progress Q3 2011 Q1 2012
TINIGUA
In progress In progress Q2 2011 End of 2011 Q1 2012
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- Short term goals:
- Complete the seismic acquisition, processing and
interpretation process
- Continue the selection and construction of drilling
locations
- Start drilling program in the first half of 2011
Disciplined Path Towards Growth
- Start drilling program in the first half of 2011
- Implement growth strategies through:
- Organic Growth
- Drilling identified prospects
- Generate new exploratory opportunities in current
acreage
- Participation in New Rounds
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- Recent exploratory and outpost drilling in the Quifa block and Rubiales field
and a significant new discovery by Pacific Rubiales and Talisman in the CPE 6 block suggests a heavy oil trend extends over PetroNova’s bordering blocks
- PetroNova’s Caguán-Putumayo blocks are neighbouring Gran Tierra’s
Costayaco field and on trend with Sinochem and Canacol’s Capella field in the
- PetroNova operates and holds 100% and 90% W.I. in 2 blocks in the Caguán-
Putumayo Basin and a 20% W.I. in 3 blocks in the Eastern Llanos Basin
- PetroNova’s 5 blocks contain an estimated 247 mmbbl of P50 prospective
resources net to PetroNova’s W.I.*
The Opportunity
Outstanding portfolio of Colombian blocks with excellent growth potential All assets located on trend with major oil fields and new discoveries
- PetroNova’s 80% partner is a prominent Latin American Group, with
production of 50,000 boe/d and 300 million boe of reserves is committed to the exploration and development of its three Llanos Basin blocks in Colombia
- Seasoned management team that has delivered successful results working as
a team for more than 10 years in onshore and offshore projects in South America
- Plan to commence a 9 well exploratory drilling program in Llanos blocks in
Q1/Q2, drill an exploration well in the PUT 2 block in Q2 and spud in the Tinigua well in Q3 Costayaco field and on trend with Sinochem and Canacol’s Capella field in the Ombu block
new discoveries 11 well exploration program commencing in first half 2011 Strategic partnership with a world class operator Management team with proven operating experience
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* Independent engineer report (Petrotech Engineering Ltd.) dated April 30, 2010
Current Status
Financial
- Initial $ 20 million Funded by original Shareholders
- Raised $ 10 million through Private Placement
- Raised $ 65.4 million through an IPO priced at $ 1.25 / share
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- Raised $ 65.4 million through an IPO priced at $ 1.25 / share
- Current cash position – $ 60 million and $7.7 million
escrowed as collateral to letters of credit
- No third party debt
Trading on the TSX Venture Exchange under the symbol PNA since December 21, 2010
Common Share Structure
Common Shares Outstanding 165,301,302 Warrants (Private Placement) @ $ 1.5 expiry date June 29,2013 10,200,000 Options 5,130,000
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Options 5,130,000 Fully Diluted Common Shares Outstanding 180,631,302
PetroNova Colombia
Calle 99 N 9ª - 45, Piso 6 Bogotá D.C. Colombia Tel: +57 1 642 8677 Fax: +57 1 642 0639 www.petronova.com
Investor Relations: Equicom 403-218-2833
hchristensenbrown@equicomgroup.com