TSX-V: ENG Frontier Plays in Congo and Offshore Namibia

Transcription

1 Frontier Plays in Congo and Offshore Namibia

2 Disclaimer Certain disclosure in this presentation, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to the Company s operation as an oil and gas exploration company that may cause future results to differ materially from those expressed or implied by those forward-looking statements. Readers are cautioned not to place undue reliance on these statements as they involve known and unknown risks, uncertainties and other factors that may cause a hinge in assumptions and the actual outcomes and estimates may be materially different from the estimated or anticipated future results, achievements or positions expressed or implied by those forward-looking statements. The Company disclaims any intentions or obligations to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this presentation. Furthermore, any resource estimate(s) contained in this document that have been prepared in-house by the Company (including any such references to resource estimate-potential) is not compliant with National Instrument Standards of Disclosure for Oil & Gas Activities. Such resource estimate(s) contained in this document is based on management s interpretation of available data and the assumptions stated herein. Accordingly, such estimate(s) should not be relied upon. The reader is advised to obtain independent advice regarding the available data and the assumptions, and the opinions, stated herein. 2

3 EnerGulf: At a glance Management and technical team have track record of successful projects in West Africa Lotshi Block Democratic Republic of Congo (DRC ) Mean resource estimate: Million BOE recoverable 1 P10 aggregate (high case): Million BOE recoverable 1 7 Prospects, 4 independent plays EnerGulf Operator 90% Working Interest Block Offshore Namibia Giant* field(s) potential 15 prospects, 3 independent plays EnerGulf interim Operator- 15+% Working Interest 1 DeGolyer & Mac Naughton, March 2011 * AAPG definition: >500 million bbl. 3

4 Directors, Advisors and Management Jeffrey L. Greenblum: Director Chairman of the Board, CEO Served as senior official in President George H.W. Bush administration at the Department of Energy and Department of Commerce. Senior executive with Diamond Fields Resources, Inc (Sold to Inco for $4B). and KP Exploration (Kidder Peabody). Tom Fetters: Director Formerly Exxon, Exploration Planning Manager, CEO Consolidated Natural Gas, President of Exploration Company of Louisiana Clive Brookes: Director CFO, B. Commerce from UBC. Served as a Director, executive and financial consultant to companies listed on the TSX Venture Exchange. Founded and developed several start up companies in resource, service and medical sectors. Joe Soliz: Director J.D. degree from Harvard Law School and has practiced U.S. and International Oil, Gas and Mineral Law since

5 Directors, Advisors and Management Dr. Joe Davis: Exploration advisor. Formerly, R&D at Arco, Sr. Advisor at Maxus Energy VP Exploration at Strategic Petroleum and Hyperion Resources Dr. James Edwards: Explorations advisor, Exploration and Acquisitions. Formerly Triton Oil, responsible for Cusiana field discovery, Colombia (2 nd largest W. Hemisphere) Israel Hernandez: Senior Advisor for deepwater drilling, engineering, and operations. Deep Offshore drilling manager for Mobil, BHP, ARCO 5

6 Directors, Advisors and Management Prof. Albert Ongendangenda: Director General EnerGulf Congo SARL - Kinshasa office Former Energy Advisor to President of DRC The Honorable Andimba Toivo Ya Toivo : Senior Advisor for African Affairs Former Minister of Mines and Energy, and Chairman of SWAPO (ruling party), Namibia. Dr. Yves Neuville : Special Advisor to the Chairman and CEO Past advisor to Minister of Budget and Finance, France. Professor at Sorbone 6

7 Technical Team Experience Worked as a team for 20 years West Africa Experience: Billion barrel discovery (Zafiro) in Equatorial Guinea Development experience at Zafiro and Alba (Equatorial Guinea) Successful bid in Nigeria License Round Development project in Ivory Coast E&P projects in Angola, Cameron, Gabon, Republic of South Africa Additional Experience: Siberia, Venezuela, Colombia, Indonesia, Malaysia, Iraq USA onshore and offshore Gulf of Mexico. 7

8 West Africa: Regional Setting The rift that opened the South Atlantic is the key to understanding hydrocarbon deposits in Brazil and West Africa Block was juxtaposed to the Santos Basin in Brazil during the early rifting of the Atlantic Ocean Block and Lotshi Block in DRC are not only on-trend to producing fields in West Africa, but are also conjugate to key rift basins in Brazil. 8

9 Regional Setting: Brazil- Africa Rift Pre-Salt or Syn-Rift Time: Non-marine + salt deposition north of the Walvis Ridge. Post-Rift Time: Turbidite fan deposition. 9

10 Regional Setting: Pre-Salt Play 10

11 Regional Setting: Post-Rift Turbidite Play 11

12 Pre-Salt and Tertiary Turbidite Plays 12

13 Democratic Republic of Congo Lotshi Block 13

14 Lotshi Block: Democratic Republic of Congo 14

15 Lotshi Block: History Forabola #1 drilled in 1973 PSA signed in 2005 Presidential decree in 2008 Airborne magnetics and gravity survey in 2008 Boundary survey in D seismic survey in 2010 Prospective resource report completed May 2011 Location for 1 st well Drill program preparation underway Plan to Spud Q

16 Lotshi Block Prospect Portfolio At least 7 prospects, 3 independent play ideas. Lucula (target reservoir in all 7 prospects): Forabola well drilled in 1970 s defined the Lucula Formation as the best potential reservoir on the block Lucula is stratigraphically equivalent to the reservoir at the giant M Boundi field. Bucomazi is also a primary target in one prospect Good reservoir properties in adjacent block to north Fractured basement or basement wash is a primary target in two of the prospects. Produced hydrocarbons in nearby Lindu well and in nearby Cabinda. The Chela Dolomite is a secondary target in each prospect. produces from the giant Rabi-Kounga field in Gabon and smaller fields in Gabon. 16

17 Lotshi Block: 1 st Well Secondary targets Chela Dolomite Loeme Salt Bucomazi Lucula Primary target ~1200 ft of closure Main Rift Fault Proposed TD of well, 2300 m 17

18 Lotshi Block: 7 Individual Prospects Mean Estimate million bbl over 7 prospects (Prospective Resources per DeGolyer & MacNaughton Report 2011) 18

19 Lotshi Block: Prospective Resources P10 Aggregate Million bbl recoverable (Prospective Resources per DeGolyer & MacNaughton Report 2011) 19

20 2012 Work Program Dallas Prospect 2300 M total depth Other Prospects 1500 m total depth Approximately 30 days to drill each Current pro forma $8.5 million per well Planned Spud date Q2-Q Satellite Thematic Mapped Image 20

21 Nambia Block

22 Block 1711: Namibia Northernmost offshore Block in Namibia EnerGulf - Interim Operator 2.2 million acre block Two Major Plays, multiple prospects Namibe Basin No exploration drilling prior to Kunene #1 15% Working Interest (possible 19%) Co-Venturers: 51-55% W.I. available NAKOR - 10% (carried) PetroSA 10% W.I. Namcor 7% (carried) HRT 2.7% Kunene Energy - 0.3% (carried) (BEE) 22

23 Block 1711: Kunene #1 Well First well in Namibe Basin Working petroleum system proven by hydrocarbon shows in Kunene #1 well Water Depth 772 m Spud April 9, m, July 19, 2008 Testing - August 7-25, 2008 (EnerGulf non-consented) Rig released September 7, 2008 Well Status -suspended Deep Venture drilled the Kunene #1 Well 23

24 Block 1711: Kunene #1 Results Hydrocarbon shows (C1-C5) Working petroleum system Evidence of migration Evidence of mature source rock Upper Reservoir Target Clastics, Volcanic and Carbonate Debris Middle Reservoir Target Synrift Lower Reservoir Target 24

25 2011 Work Program Results work program finished mid-july Kunene #1 tied to seismic Revised age determinations Revised lithology Revised play concepts Findings: Hydrocarbon source potential in the Neo-Protezoic Evidence of salt in Syn-Rift Section Recognition of Tertiary contourite and turbidite facies Recognition of variations in Basement tectonics from North to South 25

26 Block 1711: 3D Seismic Program Existing 2D Proposed 3D Turbidite Prospect Syn-Rift Prospect Basement Prospect Gas Chimney ~ 925 km 2 Cost ~ $12 million Target 2 nd Quarter

27 Block 1711 Prospect Portfolio Prospects and leads: Multiple turbidite sand prospects, including 20,000 acre Hartmann prospect 7 prospects Giant* Fields potential Direct hydrocarbon indicators: Amplitude anomalies (bright spots), flat spots, frequency shadows. Gas Chimneys Similar geology to offshore Luanda, Angola and Deepwater Gulf of Mexico Several syn-rift leads 4 prospects Giant* Fields potential Similar geology to Pre-Salt in Campos Basin Brazil and M Boundi, Upper Congo Basin Several very large basement leads. 4 Prospects Giant* Fields potential * AAPG definition > 500 million bbl 27

28 Completed to date: October 27, 2010: Seismic Operations Completed on Lotshi Block September 9, 2010: ENG appointed interim operator Block 1711 April 5, 2011: ENG Commissions resource estimate for Lotshi Block and assembles drill team May 11, 2011: ENG receives Lotshi Block prospective resources report July 2011: 1711 work program completed: Revised age determinations, revised play concepts September 2011: 1711 work program results presented to Ministry of Mines and Energy Moving forward through 2012: Lotshi Block drilling expected to commence Q2-Q Wells Projects progress through 2012 Block 1711 work program expected to commence Q Including 3D seismic Discussions/ negotiations with potential JV partners 28

29 Projects progress through 2012/

30 Investment Highlights World class lead asset- Lotshi block On trend with major Oil field High potential for large resource- 90% owner and Operator World class JV asset- Block 1711 Interim operator with minority stake Located in an emerging Oil and Gas hot spot- Offshore Namibia Early stage with exponential potential for growth Experienced and diversified management and advisors Excellent in-country relationships Work Programs set for 2012 Will develop increased and consistent news flow Excellent capital structure/ minimal dilution 30

31 Share Structure FSE: EKS Issued and outstanding: 68,363,438 Warrants: 7,730,750 Options: 6,355,000 Fully diluted: 82,449,188 * As at August 2011 Last Private Placement: 26/11/10 $0.40 (8,060,500 units) one purchase warrant for two $0.65 per unit 31