Positioned for Guyana Atlantic Basin Success October 2 0 1 2
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 and DeGolyer and MacNaughton in accordance with National Instrument 51-101 (“NI 51-101”) in reports dated effective May 17, 2012 and June 15, 2011, respectively. 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 July 13, 2012 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. 3
Positioned for Guyana Atlantic Basin Success Equatorial Atlantic Margin Plays Analogous to W est Africa and Brazil • West Africa – Turonian and Campanian discoveries from Ghana to Sierra Leone • Brazil – OGX’s shelf margin Albian/ Aptian carbonate discoveries • Guyana/ Suriname Basin – Tullow three zone discovery in French Guiana • CGX surrounded by major companies –Anadarko, Apache, Exxon, Inpex, Kosmos, Murphy, Repsol, Shell, Statoil, Total, Tullow, YPF Guyana Surinam e Basin • Proven hydrocarbon system with highly prospective deep water plays in shallow water – CGX drilled two wells in 2012 − Jaguar 1 w ell ( 2 5 % ) - samples of light oil recovered from two Late Cretaceous turbidite sands − Eagle-1 w ell ( 1 0 0 % ) – oil and gas shows confirmed existence of an active petroleum system Six w ells planned to test Turonian, Cam panian and Albian prospects Next Steps CGX License Renewals • Joint venture and capital market funding initiatives • Lead and prospect interpretation with Pacific Rubiales (35% strategic shareholder) • 4
Proven Hydrocarbon System in W orld- Class Basin in Early-Stage Exploration – 6 .2 m illion acres ( net) 5
Equatorial Atlantic Margin Play Mirror I m age to Major Discoveries Venus – Cam panian Anadarko, Repsol, W oodside, Tullow Narina - Turonian Africa Petroleum Sierra Leone CGX Drilling Paradise - Locations Turonian Liberia Turonian, Hess Ghana Cam panian, Albian Prospects Zaedyus - Jubilee, Tw eneboa Turonian – Turonian Tullow , Shell, Tullow , Kosm os Total Earth Reconstruction - Turonian ( 9 0 m ya) From Colorado Plateau Geosystem s 6
Deep W ater Targets in Present Day Shallow W ater 7
Georgetow n and Corentyne W ells and Resources 8
Georgetow n and Corentyne Prospects and Leads Prim ary Prospects Turonian Basin Floor Fans • Jubilee/ Zaedyus Analogies Secondary Prospects Campanian Turbidite • Venus Analogy Albian/ Aptian Carbonate • OGX Analogy Brazil Maastrichtian Sand • Abary Kick 9
CGX License Area Bigger Than Cam pos Basin OGX Discovers Multi-Billion Barrel Resource in Albian/ Aptian Carbonates Portion of Guyana Suriname Basin Outline Campos Inpex JAGUAR-1 Producing Albian Test Basin Outline Campos Producing Basin Albian Prospects 1 0
Favourable Econom ic Term s - Metrics For 3 0 0 m m bbl Case Petroleum Sharing Contract 75% Cost Oil /25% Profit Oil Netbacks on Full Profit Oil Basis $ / bbl Wellhead Price $83.66 Operating Cost $5.37 Capital Cost $2.20 Government of Guyana Take (54% ) $40.71 Netback ( 4 6 % ) $ 3 5 .3 8 NPV10 $15.82 Probability of Success ~ 1: 5 FPSO - Floating Production Storage and Offloading Vessel NPV10 Risked $3.17 Source: Gustavson Associates January 2 0 0 8 1 1
Prospect Valuation P5 0 Resource Estim ate – NPV1 0 NPV 1 0 NPV 1 0 CGX W I Share Target Risked Unrisked Billion bbl $ Billion $ Billion 1.2 (1) Eagle Upper Turonian 3.8 19.0 3D Seismic 1.3 (1) Eagle Lower Turonian 4.1 20.5 Kabukalli Albian 0.1 (2) - - 2D Seismic 0.2 (2) Crabwood Albian - - Total 2 .8 $ 7 .9 $ 3 9 .5 Source of Resource Estimate: (1) Gustavson Associates 2008 for approximate NPV10 of $15.82/ Bbl and COS of 20% (2) DeGolyer and MacNaughton June 2011 * Should CGX enter a joint venture agreement, the current interest of 100% on the Corentyne License could be reduced from the resource numbers above. 1 2
Executive Sum m ary CGX exploring in Guyana Surinam e Basin, a highly prospective basin w ith a proven hydrocarbon system Exploration of Equatorial Atlantic Margin Play Turonian and Campanian discoveries from Ghana to Sierra Leone in West Africa and • in French Guiana Brazil Albian/ Aptian carbonate discoveries by OGX in Campos Basin • CGX drilled tw o w ells in 2 0 1 2 confirm ing active petroleum system Jaguar-1 well sampled light oil in two zones – well abandoned for safety concerns • Eagle-1 well oil and gas shows • CGX has 14 prospects • Six additional w ells planned to test Turonian, Cam panian and Albian prospects w ith m ulti-billion barrel potential Next Steps CGX License Renewals • Joint venture and capital market funding initiatives • Lead and prospect interpretation with strategic shareholder • 1 3
Managem ent Overview • 40 years E&P experience Kerry Sully • Past President and CEO, CGX and former CEO and Director of President, Ranchmen ’ s Resources Chief Executive Officer • B.Sc. Chemical Engineering, University of Saskatchewan and Director • 35+ years of E&P drilling operations experience with Murphy Oil, Michael Stockinger Anadarko Petroleum, Kerr-McGee, Conoco - most recently, Project Chief Operating Officer Manager for Murphy Oil and Remora International • B. A. Civil Engineering, Stevens Institute of Technology, NJ • 15 years experience in international oil industry and public Tralisa Maraj Chief Financial Officer company accounting • Certified Public Accountant (CPA) licensed in Texas and UK Chartered Certified Accountant (FCCA) • 35 years experience - E&P with Texaco and Candax; O&G Analyst John Clarke with Deutsche Bank and Octagon Vice President, • B.Sc. Physics, Birmingham University, M.Sc. Imperial College, and Business Development B.A. English, University of Calgary • 15+ years experience in public company administration Charlotte May • 20+ years experience in the institutional brokerage industry Communications Manager and Corporate focused on junior oil and gas companies Secretary 1 4
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