CAMAC Energy Investor Presentation September NYSE MKT: CAK

Transcription

1 CAMAC Energy Investor Presentation September 2014 NYSE MKT: CAK

2 Cautionary Language Regarding Forward-Looking Statements and Other Matters NYSE MKT: CAK This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of These forward-looking statements are based on our current expectations about our company, our properties, our estimates of required capital expenditures and our industry. Words such as "expect, "will," "anticipate," "indicate," "estimate," "believes," "plans" and similar expressions are intended to identify such forward-looking statements. It is important to note that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties. Actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ materially from those projected in such forward-looking statements include: the preliminary nature of well data, including permeability and gas content, and commercial viability of the wells; risk and uncertainties associated with exploration, development and production of oil and gas; drilling and production risks; our lack of operating history; limited and potentially inadequate cash resources; expropriation and other risks associated with foreign operations; anticipated pipeline construction and transportation of gas; matters affecting the oil and gas industry generally; lack of oil and gas field goods and services; environmental risks; changes in laws or regulations affecting our operations, as well as other risks described in our Annual Report on Form 10-K, Quarterly Reports filed on Form 10-Q, and subsequent filings with the Securities and Exchange Commission ( SEC ). CAMAC Energy undertakes no obligation to publicly update or revise any forward-looking statements. Cautionary Note to Investors The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC s definitions for such terms. We may use terms in this presentation such as contingent resources, prospective resources, leads, oil in place and similar terms that the SEC s guidelines strictly prohibit us from including in filings with the SEC. U.S. investors are urged to consider closely the oil and gas disclosures in our Form 10- K for the year ended December 31, 2013, available from us at or by writing us at: CAMAC Energy Inc., 1330 Post Oak Blvd., Suite 2250, Houston, Texas Attn: Investor Relations; Telephone: (713) Also on our website at is a glossary of terms. You can also obtain our filings from the SEC by calling SEC- 0330, or via the internet at CAMAC ENERGY 2

3 Over 25 Years In The African Energy Sector Cameroon-American Company ( CAMAC ) founded as a privately-held agricultural commodities trading company CAMAC creates Allied Energy Plc ( Allied ) to focus on upstream E&P OPL 210 awarded to Allied, the first indigenous Nigerian oil company to be awarded and named operator of a deepwater license Oyo-1 (Allied/Statoil/BP) discovers oil in OPL 210, and the Oyo field becomes the first deepwater Nigeria oil discovery OPL 210 is converted to OMLs 120 and 121 Allied partners with ENI (40%) to develop the Oyo field Oyo field achieves first oil production with Oyo-5 and Oyo-6. Peak production from these two wells reaches over 25,000 bbls/d Transaction completed with Pacific Asia Petroleum, Inc. (PAP), and name changed to CAMAC Energy Inc. (CAK) Allied re-acquires 40% interest in OMLs 120 and 121 from ENI, and now owns 100% Awarded 4 Blocks in Kenya, and 2 Blocks in Gambia Oct. CAMAC Energy successfully drills Oyo-7 development well offshore Nigeria; to be completed horizontally 115 feet net oil pay, and 93 feet net gas pay in the Pliocene formation Also confirmed the presence of hydrocarbons in the deeper Miocene formation 2014 Feb. $270 million equity investment from the Public Investment Corporation (SOC) Limited Feb. CAMAC Energy acquires remaining economic interests in OMLs 120 and 121 from Allied; CAMAC Energy now owns 100% Mar. Awarded the Expanded Shallow Water Tano Block in Ghana Aug. CAMAC Energy successfully drills Oyo-8 development well offshore Nigeria; to be completed horizontally Encountered four new oil and gas reservoirs with 112 feet gross hydrocarbon thickness Sep. Closed $100 million credit facility CAMAC ENERGY 3

4 A Transformative Year for CAMAC Energy $270mm Private Equity Investment Allied Energy Plc Acquisition Oyo-7 Well Successfully Drilled Miocene Confirmed in OML 120 Multi-Year Rig Contract Multi-Year FPSO Contract Awarded the ESWT Block in Ghana Oyo-8 Well Successfully Drilled Provided acquisition funding and drilling capital Exponential increase in production, reserves and resources 115 feet net oil pay to generate high-impact production growth De-risks 1.4 billion boe of Miocene prospective resources Ability to execute the West Africa drilling program Long-term production facilities in place Low-risk, near-term development and reserves upside Encountered four new oil and gas reservoirs; 112 Feet Gross Hydrocarbon Thickness to generate major production growth NOTE: Northern Offshore Energy Searcher drillship has been secured for up to two years commencing 6/9/2014. Armada Perdana FPSO has been secured for up to seven years commencing 1/1/2014. CAMAC ENERGY 4

5 Uniquely Positioned to Deliver NYSE MKT: CAK Generating Predictable, Repeatable Oil Production Growth Delivering All Brent, High-Margin, Oil Mega Projects Advancing World-Class Frontier Exploration in West and East Africa Continuing To Obtain Attractive Exploration Assets Industry-Leading Drilling Success Strong, Conservative Balance Sheet CAMAC ENERGY 5

6 Leading Sub-Saharan Africa Portfolio NYSE MKT: CAK 9 Assets 4 Countries 10 Million Net Acres Full Operatorship GAMBIA Offshore Acres Interest Partner Operator Block A2 320, % - Block A5 343, % - Production Exploration GHANA Offshore Acres Interest Partners Operator Tano Block (1) 373,000 30% - 30% CAMAC Int'l 25% GNPC 15% Base Energy NIGERIA Offshore Acres Interest Partner Operator OML , % - OML , % - KENYA Onshore Acres Interest Partner Operator Block L1B 3,066, % - Block L16 900, % - Offshore Acres Interest Partner Operator Block L27 2,619, % - Block L28 2,577, % - (1) Expanded Shallow Water Tano Block. CAMAC ENERGY 6 6

7 SEPTEMBER 2014 CAMAC ENERGY NYSE MKT: CAK Nigeria: Cornerstone of the African Oil Industry September 2014

8 Nigeria Is The Largest Oil Producer in Africa Nigeria is the world s 6 th largest oil producer Q production of 2.26 million BOPD 1 Nigeria is the 4 th largest oil supplier to the U.S. Nigeria has proved reserves of 68 Bboe DESCRIPTION COMPANIES PRODUCTION / RESERVES Nigerian National Petroleum Corporation Operating subsidiary is the Nigerian Petroleum Development Company (NPDC), established in 1988 Production: 898,000 boepd Reserves: 20.5 bn boe International Oil Companies (IOCs) Includes six large international oil and gas companies that are internationally recognized as super-majors Most prominent in Nigeria is Shell Production: 1,174,000 boepd Reserves: 11.4 bn boe National Oil Companies (NOCs) The Nigerian upstream space is seeing increased participation by NOCs of other countries Chinese E&P companies hold ~2/3 of this group s total reserves Production: 260,000 boepd Reserves: 1.7 bn boe (1) Source: Nigerian Bureau of Statistics CAMAC ENERGY 8

9 Niger Delta Deepwater Seafloor Topography ERHA FIELD BONGA FIELD CAMAC ENERGY 9

10 Cross Section: Middle Miocene Regional Play 2,500m 4,500m CAMAC ENERGY 10

11 OML 120/121: Prolific Oil Producing Region 440,000 net acres ERHA NORTH 200 MMBbls of oil 0.2 Tcf of natural gas EWO NORTH OYO FAR EAST SONAM 1 Tcf of natural gas ERHA 495 MMBbls of oil 2.7 Tcf of natural gas 140,000 bopd PROSPECT O PROSPECT G EWO DEEP ERENG OYO OYO FIELD 46 mi offshore water depths of 330-3,300 ft PROSPECT R Oyo Field: 1,000 ft water depth 1P of 9.9 MMBbls of oil 2P of 18.3 MMBbls of oil 3P of 35.1 MMBbls of oil BOSI 400 MMBbls of oil 3.5 Tcf of natural gas PROSPECT P EBOLIBO 2007 Gas Discovery: 120 Bcf of 2C resources BONGA NORTHWEST 6.2 miles BONGA 1,600 MMBbls of oil 1.1 Tcf of natural gas 150,000 bopd Source: DeGolyer and MacNaughton. CAMAC ENERGY 11

12 OML 120/121: Seismically-Defined Prolific Hydrocarbon Province Extensive inventory of prospects and leads identified OML 120 PROSPECTS Erha Field (Exxon) OYO FIELD (CAMAC Energy) OML 120 and ,000 net acres 46 miles offshore Name Block Formation MMBoe P 121 Pl i ocene 230 G 120 Mi ocene 187 Q 120 Mi ocene 185 Ereng 120 Mi ocene 167 Ewo North 120 Mi ocene 138 Other 121 Mi ocene/pl i ocene 130 1,036 OML 121 EBOLIBO 2007 Gas Discovery 120 Bcf of 2C resources LEADS Name Block Formation MMBoe Ereng B 120 Miocene 203 Ewo Deep 120 mid-miocene 164 D 120 Miocene 109 Other 120 Miocene / Pliocene Source: Gaffney, Cline & Associates. Prospective resources are unrisked. Other Prospects total 5; Other Leads total 9. CAMAC ENERGY 12

13 Oyo Field: Pioneer Deepwater Nigeria Exploration In 1995, the Oyo Field Became the First Deepwater Nigeria Discovery 100% Drilling Success Rate (8 for 8) 4.5+ MMBOE EUR/Well Premium to Brent Pricing: Light, Sweet, 33 to 34 API, Low Sulphur Far East Area Oyo-3 Appraisal well, 2007 Oyo-4 Gas injection well, 2007 Oyo-1 Discovery well, 1995 OYO Field: 1P of 10.9 MMBbls of oil 2P of 14.1 MMBbls of oil Oyo-7 Completion 3P of stage 32.1 MMBbls of oil Oyo IP 9,500 bopd Peak 16,890 bopd Oyo-8 Completion stage West Area Oyo-2 Appraisal well, 2006 Oyo IP 6,300 bopd Peak 8,800 bopd Central Area CAMAC ENERGY 13

14 High-Impact, Early Cash Flow NYSE MKT: CAK Currently completing two significant development wells in the Oyo field OYO Feet Net Oil Pay + 93 Feet Net Gas Pay Reached Top of Pliocene pay at 5,564 ft SSTVD Reached Top of Miocene pay at 7,500 ft SSTVD OYO-8 Confirmed Hydrocarbons in the Miocene Most Prolific Producing Zone Offshore Nigeria De-Risks 1.4 Billion BOE of Miocene Prospective Resources Encountered four new oil and gas reservoirs 112 Feet Gross Hydrocarbon Thickness Reached TD at 6,059 ft CAMAC ENERGY 14

15 Demonstrable and Repeated Production Growth DRILLING RIG Secured for up to two years commencing June 9, 2014 FPSO Secured for up to seven years commencing January 1, 2014 Maximum Drilling Depth: 7,620 m (25,000 ft) Water Depth: 762 m (2,500 ft) Oyo: 40,000 BOPD FPSO 1.1 MM Bbls Storage Capacity Northern Offshore Energy Searcher drillship Armada Perdana FPSO (CAMAC 100%) CAMAC ENERGY 15

16 OML 120/121: Favorable Economics NYSE MKT: CAK Royalty to Nigeria $12.00 (12%) Revenue per Barrel $ Net Revenue after Royalty $88.00 (88%) Astro Sculptor oil tanker Cost Recovery 1 $70.40 (80%) Profit Oil $17.60 (20%) $78.85 net revenue per $100 bbl Profit Oil $8.45 (48%) Tax Oil $9.15 (52%) Petroleum Profits Tax: 50% Education Tax: 2% (1) Cost Recovery includes capital expenditures and operating expense. CAMAC Energy has approximately $900 million of recoverable costs as of June Note: Hypothetical $100/bbl used for illustrative purposes. Due to the high quality of Oyo Crude, CAMAC Energy receives a $1 to $2 premium to Brent pricing. CAMAC ENERGY 16

17 SEPTEMBER 2014 CAMAC ENERGY Expanded Shallow Water Tano Block NYSE MKT: CAK Ghana: Low Risk Development Upside September 2014

18 Ghana: Three Discovered Fields in the Tano Basin Expanded Shallow Water Tano Block GHANA EXPANDED SHALLOW WATER TANO BLOCK AWARDED IN MARCH 2014 combined surface area of 373,000 acres in water depths of feet Deepwater Tano Block (TEN Fields) West Cape Three Points Block (Jubilee Field and Teak-Akasa Discoveries) JUBILEE FIELD 104,000 bbls/d Q production CAMAC Energy named operator Three field discoveries located 9-21 miles offshore South Tano Field Discovered in 1978 by Phillips Petroleum North Tano Field Discovered in 1980 by Phillips Petroleum West Tano Field Discovered in 2000 by Dana Petroleum Source: Government of the Republic of Ghana WORK PROGRAM Initial exploration period of two years Determine, within 9 months, the economic viability of developing the three previously-discovered fields 30%, CAMAC International Ltd 30% % km/105 mi offshore 15% operator Evaluate existing 3D seismic, and geological and well data CAMAC ENERGY 18

19 SEPTEMBER 2014 CAMAC ENERGY Block L1B, onshore Kenya, Lamu Basin Garissa E 110 MMBO Hagarso NW 400 MMBO Garissa SE 115 MMBO Hagarso W 165 MMBO Hagarso MMBO NYSE MKT: CAK Lead 18 miles Kenya: Frontier Discoveries and Proven Basins September 2014

20 9 MM Acres in the Largest Sedimentary Basin in Kenya 4 Blocks in the Lamu Basin awarded in May 2012; effective August 2012 ETHIOPIA Oil Discovery Gas Discovery CAMAC Acreage AWARD DETAILS Named operator with 100% interest Government of Kenya has option to participate up to 20% upon development WORK PROGRAM UGANDA L1B/L16 Onshore Initial exploration period expires June 8, Completed a Gravity and Magnetic Survey KENYA 2014 Completed an Environmental Study Preparing to acquire and process 2D seismic 2016 Drill two exploration wells: one on each block L27/L28 Offshore Initial exploration period expires August 2015 TANZANIA 2014 Acquired 2D seismic in March Currently processing 2D seismic Conducting a regional Geophysical Study 105 miles offshore water depths of 7,200-14,700 feet 2016/2017 Drill one exploration well: Block L27 or L28 CAMAC ENERGY 20

21 SEPTEMBER 2014 CAMAC ENERGY BLOCK A2 BLOCK A5 West Lead 800 MMBO Gambia: Entering the West African Transform Margin September 2014

22 Gambia: Prime Deepwater Acreage in the West African Transform Margin April 17, 2014 FAN-1 exploration well (900 mmbbls) spudded by Cairn, Conoco, FAR, and Petrosen In 1979, Chevron drilled Jammah miles km/18 offshore mi offshore TWO BLOCKS AWARDED IN MAY 2012 combined surface area of 663,000 acres in water depths of 160 3,900 ft In 1979, Chevron drilled Jammah-1 in Block A2 based on 2D seismic Gas shows in thick section of high-quality reservoir confirmed hydrocarbons; only well drilled offshore Gambia CAMAC Energy named operator with 100% interest Gambia National Petroleum Company has option to participate up to 15% at commercial discovery Favorable royalty scheme of up to 25% WORK PROGRAM Initial exploration period of four years Two leads have a combined 1.3 billion barrels of oil West Lead 630 mmbo - Cenomanian reservoir 168 mmbo - Albian reservoir East Lead 480 mmbo Cenomanian reservoir 57 mmbo Albian reservoir Reprocess 2D seismic, and Conduct a Regional Geological Study Acquire 3D seismic Drill exploration well on each block CAMAC ENERGY 22

23 Drilling Program Focused on Near-Term Cash Flow Country Asset Well Nigeria 120 Oyo-8 100% Nigeria 120 Oyo-7 100% Q Q Successfully drilled; now completing horizontally Successfully drilled; now completing horizontally Nigeria 120 Miocene exploration well 100% Drill Nigeria 120 Oyo-9 100% Drill Nigeria 120 Oyo % Drill Nigeria 120 Oyo % Drill Kenya L1B exploration well 100% Kenya L16 exploration well 100% Kenya L27/L28 exploration well 100% Gambia A5 exploration well 100% Gambia A2 exploration well 100% Ghana ESWT (1) N/A 30% Acquire 2D seismic Acquire 2D seismic Process 2D seismic, and conduct a regional geophysical study Reprocess 2D seismic, and conduct a regional geological study Reprocess 2D seismic, and conduct a regional geological study Assess commerciality of three previously discovered fields (1) Expanded Shallow Water Tano block. CAMAC ENERGY 23

24 CAMAC Energy s Value Creation Model Production and Revenue Growth Reserves and Resources Growth High-Impact Exploration Success Substantial Farm-Down Opportunities Africa Asset Expansion Opportunistic Acquisitions CAMAC ENERGY 24

25 Experienced, Diverse International Management Team Kase Lawal Chairman & Chief Executive Officer Earl McNiel Senior Vice President & Chief Financial Officer Segun Omidele Senior Vice President, Exploration & Production Nicolas Evanoff Senior Vice President, General Counsel and Secretary Heidi Wong Senior Vice President, Chief Administrative Officer Chairman of CAMAC Energy since becoming public in 2010; appointed as Chief Executive Officer in 2011 Chairman of CAMAC International Corporation, a privately-owned diversified energy company Vice Chairman and shareholder of Unity National Bank in Texas Board Member of the National Urban League Board Member of the Cullen Engineering Research Foundation Former Member of the White House Advisory Committee for Trade Policy and Negotiation (Obama) Former Member of the Presidential Trade Advisory Committee on Africa (Bush and Clinton) Bachelor s degree in Chemistry, Texas Southern University; MBA in Finance and Marketing, Prairie View A&M University Joined CAMAC Energy in 2012 as Senior Vice President and Chief Financial Officer 10 years as CFO, VP of Corporate Development and Chief Accounting Officer at Pride International, Inc., an international provider of contract drilling and related services Former CFO of Transmeridian Exploration, an international independent oil & gas company Began career with a major international public accounting firm BBA, Baylor University Joined CAMAC Energy in 2011 as Senior Vice President, Business Development and New Ventures 28 years with Shell companies in Nigeria, the United Kingdom, and the United States Regional Resource Volume Manager (Africa) Team Lead - Deepwater Integrated Projects Bachelor s degree in Petroleum Engineering, University of Ibadan, Nigeria Masters degree in Petroleum Engineering, University of Houston Joined CAMAC Energy in 2011 as Senior Vice President, General Counsel and Secretary Former Senior Vice President, General Counsel and Secretary of Frontera Resources Corporation Former Vice President, General Counsel and Secretary of Transmeridian Exploration Held executive legal positions with international drilling contractors, Pride International and Transocean Juris Doctorate, University of Houston Joined CAMAC Energy in 2010 from Pacific Asia Petroleum, Inc. Former GM, Business Development, Government Relations and Commercial Affairs 19 year tenure with Texaco and ChevronTexaco General Manager of Texaco China Vice President of Business Development and External Affairs of ChevronTexaco China Energy Co. MBA, the Wuhan University of Technology in China CAMAC ENERGY 25

26 Distinguished Board of Directors NYSE MKT: CAK Kase L. Lawal Chairman of the Board Lee P. Brown William J. Campbell John D. Hofmeister Daniel M. Matjila I. Wayne McConnell Hazel R. O Leary Chairman of CAMAC Energy since becoming public in 2010; appointed as Chief Executive Officer in 2011 Chairman of CAMAC International Corporation, a privately-owned diversified energy company Vice Chairman and shareholder of Unity National Bank in Texas Board Member of the National Urban League Board Member of the Cullen Engineering Research Foundation Former Member of the White House Advisory Committee for Trade Policy and Negotiation (Obama) Former Member of the Presidential Trade Advisory Committee on Africa (Bush and Clinton) Bachelor s degree in Chemistry, Texas Southern University; MBA in Finance and Marketing, Prairie View A&M University Chairman of the Board of Unity National Bank Former Mayor of Houston Former Police Department Commissioner of New York, Atlanta, and Houston Principal and Managing Director of PPPCo-CB Energy, LLC, a private oil and gas exploration company Managing Director of CB Energy, LLC, a private oil and gas exploration company Former President of Shell Oil Company Member of the U.S. Department of Energy s Hydrogen and Fuel Cell Technical Advisory Committee Chairman of the National Urban League Founder of Citizens for Affordable Energy, a non-profit association which promotes U.S. energy security solutions Chief Investment Officer and Executive Director of the Public Investment Corporation (SOC) Limited Board member of Ecobank Transnational Incorporated Former Senior Manager of Quantitative Research Analysis for Stanlib Asset Management Limited, and Anglo American plc Managing Partner of McConnell & Jones LLP, Certified Public Accountants Former Chairman of the Audit Committee of the American Heart Association U.S. Secretary of Energy from 1993 to 1997 under President Clinton Appointed to the Federal Energy Administration under President Gerald Ford Appointed to the Department of Energy under President Jimmy Carter Former President of Fisk University in Nashville, Tennessee Former Assistant Attorney General and Assistant Prosecutor in New Jersey CAMAC ENERGY 26

27 For more information, please visit CAMAC Energy Inc. Corporate Headquarters 1330 Post Oak Blvd., Suite 2250 Houston, Texas Main: Investor Relations: