Positioned for Guyana Atlantic Basin Success May 2 0 1 2 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 and DeGolyer and MacNaughton in accordance with National Instrument 51-101 (“NI 51-101”) in reports dated effective April 15, 2011 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 May 31, 2011 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 2
Positioned for Guyana Atlantic Basin Success n CGX drilling in the Guyana Surinam e Basin • Proven hydrocarbon system with highly prospective deep water plays in shallow water • Jaguar 1 w ell ( 2 5 % ) currently drilling -- with Repsol (15% and operator), Tullow (30% ) and YPF (30% ) -- Atwood Beacon Jack-up rig commenced drilling February 9 th – well planned for 180 days to a depth of 6,500 metres to test the Turonian geologic zone • Eagle-1 w ell ( 1 0 0 % ) drilled to 4 ,3 2 8 m etres - confirmed the existence of an active petroleum system however lack of seal at the Eocene and Maastrichtian zones resulted in a dry well n Additional w ells planned to test Turonian, Cam panian and Albian prospects n Equatorial Atlantic Margin Plays Analogous to W est Africa and Brazil • 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, Statoil, Inpex, YPF n Scoping Econom ics on Five Prospects 3 billion barrels recoverable external resource assessments • NPV10 risked / unrisked $3.17 / $15.82 per barrel - $10 / $49 billion • Probability of Success ~ 1: 5 • 3 3
Georgetow n and Corentyne W ells and Resources 4 4
Proven Hydrocarbon System in W orld- Class Basin in Early-Stage Exploration – 6 .2 m illion acres ( net) 5 5
Net Acreage Positions in South Am erica’s Equatorial Margin 6 6
Equatorial Atlantic Margin Play Mirror I m age to Major Discoveries Venus – Cam panian Anadarko, Repsol, W oodside, Tullow Narina - Turonian Africa Petroleum Sierra CGX Drilling Leone Paradise - Locations Turonian Turonian, Liberia Hess Cam panian, Ghana Maastrichtian 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 7 7
Deep W ater Targets in Present Day Shallow W ater 8 8
Multiple Prospects and Leads I dentified on Tw o Licenses n Prim ary Prospects Turonian Basin Floor Fan • Jubilee/ Zaedyus � Analogies n Secondary Prospects Maastrichtian Sand • Abary Kick � Campanian Turbidite • Venus Analogy � Albian/ Aptian Carbonate • OGX Analogy Brazil � 9 9
CGX License Area Bigger Than Cam pos Basin OGX Books > 5 B bbl Resource in Albian/ Aptian Carbonates Portion of Guyana Surinam e Basin Outline Campos I npex Producing Albian Basin Test Outline Campos Producing Basin Albian Prospects 10 1 0
Favourable Econom ic Term s - Scoping Metrics For 3 0 0 m m bbl Case Petroleum Sharing Contract 7 5 % Cost Oil / 2 5 % 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 11 1 1
Prospect Valuation P5 0 Resource Estim ate – NPV1 0 NPV1 0 ( 4) NPV1 0 ( 4) CGX W I Share Target Risked Unrisked Billion bbl $ Billion $ Billion 0.3 (3) Jaguar Turonian 0.9 4.7 3 D Seism ic 1.2 (1) Eagle Upper Turonian 3.8 19.0 1.3 (1) Eagle Lower Turonian 4.1 20.5 Kabukalli Albian 0.1 (2) 0.3 1.6 2 D Seism ic 0.2 (2) Crabwood Albian 0.6 3.2 Total 3 .0 $ 9 .7 $ 4 9 .0 Source of Resource Estimate: (1) Gustavson Associates 2011 (2) DeGolyer and MacNaughton June 2011 (3) Tullow website based on P10 of 1,180 MMbbls (4) NPV per barrel, CGX estimates based on Gustavson 2008 scoping economics * Should CGX enter a joint venture agreement, the current interests of 25% in Georgetown Jaguar and 100% Corentyne Eagle could be reduced from the resource numbers above 12 1 2
Executive Sum m ary CGX Drilling in Highly Prospective Basin w ith Proven Hydrocarbon System n Jaguar-1 well (25% ) testing the Turonian geologic zone - well being drilled by • Repsol , as operator, with partners Tullow and YPF Multi-Billion Barrel Potential n Georgetown/ Jaguar – Tullow P10 resource estimate • 1.2 billion boe in Upper Turonian � Corentyne/ Eagle Deep – Independent P50 Resource Assessment • 2.5 billion barrels in Turonian � • Corentyne/ Albian – Independent P50 Resources Assessment 0.3 billion barrels � CGX has more than 10 prospects and leads • 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, Statoil, Inpex, YPF � 13 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) • 25+ years of E&P technical and management experience in Latin Dew i Jones America - most recently, Exploration Manager, Caribbean, Repsol Executive Vice YPF President, Exploration • B.Sc. Geology, Louisiana State University, LA and General Manager • 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 • 25+ years of E&P technical experience with Hess Co., Remora Enrique Cuervo Exploration Manager International, El Paso Co., and Occidental Petroleum with extensive experience in South America • B.Sc. Geology, National University of Colombia 14 1 4
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