Billion Barrel Resource Potential Offshore Guyana Positioned for Success in the Guyana Atlantic Basin Novem ber 2 0 1 1
Forw ard Looking Statem ents and Resource Disclosure Forw ard Looking Statem ents - This presentation contains certain forward-looking statements. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential exploration results, hydrocarbons, resources and reserves, drilling plans, and the future plans and objectives of CGX Energy Inc. ( “ CGX ” ) are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. With respect to forward-looking statements contained in this presentation, CGX has made assumptions regarding, among other things: commodity prices and royalty regimes; availability of skilled labour; timing and amount of capital expenditures; future exchange rates; the price of petroleum; the impact of increasing competition; conditions in general economic and financial markets; access to capital; availability of drilling and related equipment; effects of regulation by governmental agencies; royalty rates and future operating costs. Important factors that could cause actual results to differ materially from CGX's expectations are disclosed elsewhere in documents that are available to the public at www.sedar.com, including under “ Risk Factors ” in CGX ’ s prospectus with respect to the offering described herein. Resource Disclosure - The independent resource estimates with respect to CGX's Corentyne PPL have been prepared by Gustavson Associates LLC in accordance with NI 51-101 in a report dated March 3, 2010 with an effective date as of February 1, 2010. Prospective resources are those quantities of oil and gas estimated to be potentially recoverable from undiscovered accumulations. If discovered, there is no certainty that it will be commercially viable to produce any portion of the prospective resources. However, there is no certainty that the prospective resources will be discovered. For further information about the prospective resource estimates contained herein see CGX's annual information form dated May 7, 2010 which is available to the public at www.sedar.com. Certain information contained herein is considered "analogous information" as defined NI 51- 101 such as the estimate of original oil in place with respect to the Tambaredjo and Calcutta fields onshore in Suriname. Such analogous information has not been prepared in accordance with NI 51-101 and the Canadian Oil and Gas Evaluation Handbook and CGX is unable to confirm whether such estimates have been prepared by a qualified reserves evaluator. The information has been provided to show that the Guyana Suriname basin in which CGX has an interest has a proven hydrocarbon system. 2
Positioned for Guyana Atlantic Basin Success OYL on TSXV n 326 million shares currently outstanding • 341 million fully-diluted • Exploring for Oil in Guyana n Four Petroleum Agreements • 7.8 million acres gross • 6.2 million acres net • Equatorial Atlantic Margin Plays Analogous to W est Africa and Brazil n 16 leads and prospects in Turonian, Albian, Campanian, Maastrichtian and Eocene • Valuation of Just 6 Prospects 1 0 0 % CGX n P50 3.3 billion barrels recoverable Independent Resource Assessment • Probability of Success ~ 1: 5 • NPV20 risked $1.59 per barrel $5 billion • NPV10 risked $3.17 per barrel $10 billion • NPV10 unrisked $15.82 per barrel $50 billion • 3
Georgetow n and Corentyne W ells and Resources 4
W orld-Class Basin in Early-Stage Exploration N Oil Discovery ? ? ? ? Zaedyus Well ? ? 5
Net Acreage Positions in South Am erica’s Equatorial Margin 6
Equatorial Atlantic Margin Play Mirror I m age to Major Discoveries Atlantic Margin at Turonian/ Cam panian Cross-Section Offshore Guyana Tim e ( Mid Cretaceous) Venus - Campanian Campanian (Anadarko, Repsol, Turonian Eagle Woodside and Tullow) Jaguar Jubilee, Tweneboa - Cenomanian Turonian Albian (Kosmos, Anadarko, Aptian Tullow) Sierra Source: CGX Leone Guyana Cote Suriname d ’ Cross-Section Offshore Ghana Iv French oire Ghana Guiana Turonian, Campanian, and Eocene (CGX Prospects) Source : Anadarko 7
Proven Hydrocarbon System I npex currently drilling Albian target – secondary Murphy Caracara 2 0 1 0 Abary Shell 1 9 7 5 – Maastrichtian target oil show s – outside of loss of control – 3 7 o m ature source kitchen API crude at Eagle-1 Maastrichtian Location Demerara High Mature Source Kitchen Tullow Zaedyus Jaguar-1 2 0 1 1 w ell - 7 2 Location m etres of net pay; 3 9 m etres in Turonian Guyana Tam baredjo Surinam e French and Calcutta Guiana > 1 Billion bbl 8 OOI P
Corentyne I ncised Valley Funnels Sands on to Slope ( Turonian/ Cam panian) Crabw ood Location Eagle Location A B 9
Jaguar W ell to Test Turonian Trend Eagle W ell to Test Eocene Trend n Prim ary Prospects ( 3 D Mapping) Turonian Basin Floor Fan • Jubilee Analogy � Eocene Turbidites • n Leads Maastrichtian Sand • Abary Blowout � Campanian Turbidite • Venus Analogy � Albian/ Aptian Carbonate • OGX Analogy Brazil � Period Age 10
CGX License Area > Cam pos Basin I n Cam pos OGX 5 .7 Bbbls Resource Majority in Albian / Aptian Portion of Guyana Surinam e Basin Cam pos Basin I npex Albian Test Albian Prospects 11
Corentyne PPL 1 0 0 % CGX Five Prospects and Three Leads P5 0 Mean Area Gross Pay Target Resource Sq km m etres Billion bbl Eagle Eocene Prospect 0.3 (1) 97 79 Eagle Location Maastrichtian Lead - - - Campanian Lead - 77 609 1.2 (1) Upper Turonian Prospect 186 297 1.3 (1) Lower Turonian Prospect 129 368 Wishbone Eocene Lead - 61 79 0.1 (2) Kabukalli Albian Prospect 105 274 0.2 (2) Crabwood Albian Prospect 93 274 Total 3 .1 Source of Resource Estim ate: ( 1 ) Gustavson Associates April 2 0 1 1 ( 2 ) DeGolyer and MacNaughton June 2 0 1 1 12
Metrics of Success $ / bbl Wellhead Price $83.66 Operating Cost $5.37 Capital Cost $2.20 Government of Guyana Take $40.71 Netback $ 3 5 .3 8 NPV10 $15.82 NPV20 $7.94 Probability of Success ~ 1: 5 NPV10 Risked $3.17 NPV20 Risked $1.59 Floating Production Storage and Offloading Vessel Source: Gustavson Associates January 2 0 0 8 13
Prospect Valuation P5 0 Resource Estim ate – NPV2 0 NPV2 0 NPV2 0 CGX W I Share Target Risked Unrisked Billion bbl $ Billion $ Billion Jaguar Turonian 0.2 (3) 0.3 1.6 0.3 (1) Eagle Eocene 0.5 2.4 1.2 (1) Eagle Upper Turonian 1.9 9.5 1.3 (1) Eagle Lower Turonian 2.1 10.3 0.1 (2) Kabukalli Albian 0.1 0.8 Crabwood Albian 0.2 (2) 0.3 1.6 Total 3 .3 $ 5 .2 $ 2 6 .2 Source of Resource Estimate: (1) Gustavson Associates April 2011 (2) DeGolyer and MacNaughton June 2011 (3) Tullow website * CGX continues to pursue funding through joint venture which would reduce the current 25% interest in Georgetown Jaguar and 100% interest in Corentyne Eagle in this scoping valuation. 14
Executive Sum m ary CGX Drilling in Highly Prospective Basin w ith Proven Hydrocarbon System n Committed to two wells • CGX Testing Multi-Billion Barrel Potential n Corentyne/ Eagle – Independent P50 Resource Assessment • 2.8 billion barrels � Corentyne/ Albian – Independent P50 Resources Assessment � 0.3 billion barrels � Georgetown/ Jaguar – Tullow P10 resource estimate • 0.7 billion boe in Upper Turonian � CGX has 16 prospects and leads, including Albian • Exploration of Em erging Equatorial Atlantic Margin Play n West African – Turonian and Campanian discoveries from Ghana to Sierra Leone • Brazil – OGX’s shelf margin Albian/ Aptian carbonate discoveries • Guyana/ Suriname Basin – Tullow makes three zone discovery in French Guiana • CGX surrounded by major companies • Exxon, Total, Shell, Tullow, Repsol, Murphy, Noble, Inpex, YPF � 15
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