Billion Barrel Resource Potential Offshore Guyana The Rig is in the Basin February 2 0 1 1
Forw ard Looking Statem ents & 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 ( “ CGX ” objectives of CGX Energy Inc. ) 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
Executive Sum m ary CGX Drilling in Highly Prospective Basin w ith Proven Hydrocarbon System n Committed to two wells in 2011 • $44 million in working capital; pursuing joint venture partners • CGX Testing Multi-Billion Barrel Potential n Corentyne/ Eagle – Independent P50 Resource Assessment • 0.3 billion barrels in Eocene � 1.3 billion barrels in Upper Turonian � 1.2 billion barrels in Lower Turonian � 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 – six wells being drilled • CGX surrounded by major companies • Exxon, Total, Shell, Tullow, Repsol, Murphy, Noble, Inpex, YPF � 3
Equatorial Atlantic Margin Play Mirror I m age Depositional Setting 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 ’ Iv French Cross-Section Offshore Ghana oire Ghana Guiana Turonian, Campanian, and Eocene (CGX Prospects) Source : Anadarko 4
Proven Hydrocarbon System Light oil at Abary well typed to biodegraded oil onshore Suriname Murphy Outline of CGX Caracara 2010 Licences Oil shows Mature Source Kitchen Tambaredjo & Abary Shell 1975 Calcutta In-well loss > 1 Billion bbl control 37 ° API Crude in OOIP Mud Guyana Surinam e French Guiana 5
Six W ells Testing Basin 6
CGX Drilling Tw o W ells in 2 0 1 1 ( 7 .8 m m acres gross; 6 .2 m m net) Georgetow n Jaguar 2 5 % W I n (Repsol 15% , YPF 30% , Tullow 30% ) Turonian Prospect • Spud H1 2011 � TD 6,500 metres � 700 million barrel potential P10 � Corentyne Eagle 1 0 0 % W I n Eocene Prospect • Spud 2011 � TD 3,500 metres � Cost ~ US$35 million � 300 million barrel potential P50 � 7
Depositional Model for Turonian n Berbice Canyon 25 km across • 1.3 km deep • n Turonian Prospect Dim ensions Areal extent ~ 200 sq km • Thickness ~ 400 m • Richards, Bating, Bowman, 1998 8
Corentyne I ncised Valley Funnels Sands on to Slope ( Turonian/ Cam panian) A Eagle Location 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
Corentyne PPL 1 0 0 % CGX Three Prospects and Five Leads P5 0 Mean Area Gross Pay Target Resource Sq km m etres Billion bbl Eagle Eocene Prospect 0.3 97 79 Eagle Location Maastrichtian Lead - - - Campanian Lead - 77 609 Upper Turonian Prospect 1.2 186 297 Lower Turonian Prospect 1.3 129 368 Wishbone Eocene Lead - 61 79 Kabukalli Albian Lead - 105 274 Crabwood Albian Lead - 93 274 Total 2 .8 Source: Gustavson Associates March 2 0 1 0 11
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 12
Prospect Valuation P5 0 Resource Estim ate – NPV2 0 CGX W I NPV2 0 NPV2 0 Target Share Risked Unrisked Billion bbl $ Billion $ Billion Jaguar Turonian 0.2 0.3 1.6 Eagle Eocene 0.3 0.5 2.4 Eagle Upper Turonian 1.2 1.9 9.5 Eagle Lower Turonian 1.3 2.1 10.3 Total 3 .0 $ 4 .8 $ 2 3 .8 Note: 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. 13
Key Managem ent Overview Kerry Sully 40 years experience • Former CEO and Director of Ranchmen ’ President s Resources • CEO and Director Reserve assessments include Iran 1975 • Financial modeling Texaco Exploration 1970-73 • B.Sc. Chemical Eng, University of Saskatchewan • Jam es Fairbairn, 20 years experience with publicly-traded companies • C.A., I CD.D Officer of Claim Post Resources and Treasury Metals • CFO Director Canada Lithium and Trelawney Mining and • Exploration B.A. University of Western Ontario, Chartered • Accountant John Clarke 35 years experience - E&P with Texaco and Candax; • O&G Analyst with Deutsche Bank and Octagon VP, Business Developm ent B.Sc. Physics, Birmingham University • M.Sc. Imperial College • B.A. English, University of Calgary • 35 years experience W arren W orkm an • VP, Exploration Previously with Amoco, Unocal and Ranchmen’s • B.Sc. Geology, Queen’s University, Ontario • 14
Other Directors and Officers Denis Clem ent Director 27+ years experience in corporate finance, law and management Director of a number of public and private resource companies John Cullen Co-founder and Director 27+ years experience Co-founder and former director of Candax Energy Inc. and director of a number of public and private resource companies Edris K. Dookie Co-founder Executive VP of CGX Resources and President of ON Energy Adrian Jackson I ndependent Director Equity Analyst with Investec Asset Management based in London, UK Oliver Lennox-King I ndependent Director Chairman of the Board of Fronteer Development Charlotte May I nvestor Relations 20+ years experience in the institutional brokerage industry focused on junior oil and gas companies 15
Billion Barrel Resource Potential Offshore Guyana TSX V - OYL Shares Outstanding: Basic 193,428,663 Fully-Diluted 204,723,663 www.cgxenergy.com 16
Recommend
More recommend
