E QUATOR E XPLORATION L IMITED E QUATOR E XPLORATION L IMITED Exploring West African Waters Exploring West African Waters Investor Presentation - June 2005 Investor Presentation - June 2005
E QUATOR CORPORATE PROFILE E QUATOR CORPORATE PROFILE � A BVI corporation established in December 2000. � A BVI corporation established in December 2000. � Listed on AIM in December 2004. � Listed on AIM in December 2004. � Raised £30 million pre-IPO and £60 million at IPO. � Raised £30 million pre-IPO and £60 million at IPO. � Explores for and develops oil and gas projects in the � Explores for and develops oil and gas projects in the Gulf of Guinea. Gulf of Guinea. � Objective is to build a diversified portfolio of � Objective is to build a diversified portfolio of exploration, appraisal and production assets in West exploration, appraisal and production assets in West Africa. Africa.
E QUATOR CORPORATE PROFILE E QUATOR CORPORATE PROFILE � Equator initially plans to focus its efforts in West � Equator initially plans to focus its efforts in West Africa. Africa. � In particular, the territorial waters of São Tomé and � In particular, the territorial waters of São Tomé and Príncipe and the Joint Development Zone (JDZ). Príncipe and the Joint Development Zone (JDZ). � Equator has been active in this area since 2001. � Equator has been active in this area since 2001. � Evaluating additional opportunities in Nigeria, � Evaluating additional opportunities in Nigeria, Equatorial Guinea and Congo. Equatorial Guinea and Congo.
E QUATOR CORPORATE STRUCTURE E QUATOR CORPORATE STRUCTURE EQUATOR (listed on AIM) Aqua Exploration Equatorial Guinea Limited Nigeria Opportunities Opportunities (São Tomé and Príncipe) Option on 15% Equator Equator Option Option Participating Exploration Exploration Block 1 Block 2 Interest in Nigeria OML 122 Government Back-in Option Equator Exploration JDZ
E QUATOR REGIONAL OVERVIEW E QUATOR REGIONAL OVERVIEW São Tomé and São Tomé and Príncipe Príncipe Location Map Location Map
E QUATOR REGIONAL OVERVIEW E QUATOR REGIONAL OVERVIEW � In 2001, the governments of São Tomé and Príncipe � In 2001, the governments of São Tomé and Príncipe and Nigeria established the Joint Development Zone and Nigeria established the Joint Development Zone (JDZ). (JDZ). � The rest of the territorial waters of São Tomé and � The rest of the territorial waters of São Tomé and Príncipe is known as the Exclusive Economic Zone Príncipe is known as the Exclusive Economic Zone (EEZ). (EEZ). � Seismic data indicates widespread prospectivity. � Seismic data indicates widespread prospectivity. � Close proximity to the proven hydrocarbon systems in � Close proximity to the proven hydrocarbon systems in the adjacent countries of Nigeria, Cameroon, the adjacent countries of Nigeria, Cameroon, Equatorial Guinea and Gabon. Equatorial Guinea and Gabon.
E QUATOR REGIONAL OVERVIEW E QUATOR REGIONAL OVERVIEW E QUATOR CORPORATE PROFILE E QUATOR CORPORATE PROFILE
E QUATOR REGIONAL EXPLORATION E QUATOR REGIONAL EXPLORATION � West Africa is recognized as a world leader in � West Africa is recognized as a world leader in deepwater exploration and production activities. deepwater exploration and production activities. � According to PFC Energy, the reserve base of � According to PFC Energy, the reserve base of deepwater fields projected to come on-stream in West deepwater fields projected to come on-stream in West Africa over the next five years is seven times that of Africa over the next five years is seven times that of deepwater fields which came on-stream over the deepwater fields which came on-stream over the previous five years. previous five years. � Recent deepwater discoveries in Equatorial Guinea � Recent deepwater discoveries in Equatorial Guinea and Nigeria, coupled with hydrocarbon finds offshore and Nigeria, coupled with hydrocarbon finds offshore Gabon, suggest geological extensions into the JDZ and Gabon, suggest geological extensions into the JDZ and EEZ. EEZ.
E QUATOR REGIONAL EXPLORATION E QUATOR REGIONAL EXPLORATION
E QUATOR’S INTERESTS IN THE EEZ E QUATOR’S INTERESTS IN THE EEZ � Owns the right to acquire a 100% working interest in � Owns the right to acquire a 100% working interest in two blocks of its choice in the EEZ. two blocks of its choice in the EEZ. � Has the option to participate with the Government, up � Has the option to participate with the Government, up to 15%, in any Government participating interest to 15%, in any Government participating interest options in the EEZ. options in the EEZ. � Plans to select its two blocks and begin negotiations on � Plans to select its two blocks and begin negotiations on PSCs with the Government by year-end. PSCs with the Government by year-end. � Once the PSCs are finalised, a 3D seismic programme � Once the PSCs are finalised, a 3D seismic programme will be undertaken on each block prior to farm-out will be undertaken on each block prior to farm-out and drilling. and drilling.
S EISMIC DATA ON THE EEZ S EISMIC DATA ON THE EEZ � 5,100 km of seismic acquired with PGS Exploration � 5,100 km of seismic acquired with PGS Exploration (UK) Limited (PGS) in 2001 and 2002. (UK) Limited (PGS) in 2001 and 2002. � Equator and PGS have recently completed a 5,500 km � Equator and PGS have recently completed a 5,500 km infill 2D seismic acquisition programme. infill 2D seismic acquisition programme. � Seismic data shows widespread prospectivity and � Seismic data shows widespread prospectivity and hydrocarbon potential similar to deepwater blocks in hydrocarbon potential similar to deepwater blocks in Nigeria and Equatorial Guinea. Nigeria and Equatorial Guinea. � Four play types have been identified with the presence � Four play types have been identified with the presence of a number of leads and prospects. of a number of leads and prospects. � Oil seeps on São Tomé and Príncipe. � Oil seeps on São Tomé and Príncipe.
S EISMIC DATA ON THE EEZ MC2D S EISMIC DATA ON THE EEZ MC2D
SEISMIC EXAMPLE OF SEISMIC EXAMPLE OF MIOCENE TOE-THRUST MIOCENE TOE-THRUST
EXAMPLE OF LOWER TERTIARY EXAMPLE OF LOWER TERTIARY DRAPE OVER BASEMENT HIGH DRAPE OVER BASEMENT HIGH
EEZ - UPPER TERTIARY EEZ - UPPER TERTIARY TURBIDITE COMPLEXES TURBIDITE COMPLEXES
EQUATOR’ ’S INTEREST IN S INTEREST IN EQUATOR’S INTEREST IN EQUATOR SEISMIC DATA SEISMIC DATA SEISMIC DATA � Equator also generates revenue from the marketing � Equator also generates revenue from the marketing and sale of seismic data that it has acquired jointly and sale of seismic data that it has acquired jointly with PGS in the JDZ and EEZ. with PGS in the JDZ and EEZ. � Equator is entitled to a share of licensing fees from the � Equator is entitled to a share of licensing fees from the sale of seismic data funded by PGS and Equator. sale of seismic data funded by PGS and Equator. � It is expected that this revenue sharing arrangement � It is expected that this revenue sharing arrangement will continue for further seismic data acquired by will continue for further seismic data acquired by Equator and PGS in the EEZ. Equator and PGS in the EEZ.
E QUATOR’S INTERESTS IN THE JDZ E QUATOR’S INTERESTS IN THE JDZ � Equator jointly bid with ONGC Videsh Limited (OVL) � Equator jointly bid with ONGC Videsh Limited (OVL) in the 2004 JDZ Licensing Round. in the 2004 JDZ Licensing Round. � OVL is the international exploration arm of the Oil � OVL is the international exploration arm of the Oil and Natural Gas Corporation (ONGC) of India. and Natural Gas Corporation (ONGC) of India. � There were 5 blocks (Blocks 2, 3, 4, 5 and 6) on offer, � There were 5 blocks (Blocks 2, 3, 4, 5 and 6) on offer, with Block 1 having previously been allocated for a with Block 1 having previously been allocated for a signature bonus of $123 million. signature bonus of $123 million. � The OVL/Equator Venture submitted bids for Blocks � The OVL/Equator Venture submitted bids for Blocks 2 and 4. 2 and 4.
JDZ BLOCK 2 JDZ BLOCK 2 � In May 2005, a 15% interest in JDZ Block 2 was � In May 2005, a 15% interest in JDZ Block 2 was awarded to the OVL/Equator Venture. awarded to the OVL/Equator Venture. � JDZ Block 2 is adjacent to Nigerian Block OPL 246, � JDZ Block 2 is adjacent to Nigerian Block OPL 246, hosting the 800 million barrel Akpo field and another hosting the 800 million barrel Akpo field and another series of discoveries totalling some 600 million barrels. series of discoveries totalling some 600 million barrels. � A consortium was awarded a 65% interest in the block � A consortium was awarded a 65% interest in the block and will act as operator. and will act as operator. � Equator has a net 6% participation interest in JDZ � Equator has a net 6% participation interest in JDZ Block 2. Block 2.
JDZ BLOCK 2 JDZ BLOCK 2
D ISCOVERIES IN ADJOINING BLOCKS D ISCOVERIES IN ADJOINING BLOCKS
V ERY LOW RISK V ERY LOW RISK
B EST STRUCTURES B EST STRUCTURES
NORTHERN JDZ STRUCTURAL NORTHERN JDZ STRUCTURAL ZONES ZONES
D ISCOVERY VALUE D ISCOVERY VALUE
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