Annual & Special Meeting of Shareholders

Transcription

1 (TSX-V: OYL) Annual & Special Meeting of Shareholders Toronto Board of Trade June 17, 2010

2 Forward Looking Statements & Resource Disclosure Forward Looking Statements - 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 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 in accordance with NI in a report dated March 3, 2010 with an effective date as of February 1, 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 7, 2010 which is available to the public at Certain information contained herein is considered "analogous information" as defined NI 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 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

3 Executive Summary Independent E&P focused in a highly prospective basin Committed to two wells in next 12 months 100% Eagle well has prospective resource best estimate of 300 mmbbls net to CGX 25% Jaguar well partnered with Repsol, YPF and Tullow Success leads to multi-prospect potential 8.6 million gross acres (7.0 million net acres) in Guyana Part of the emerging Equatorial Atlantic Margin Play West African - Ghana (Jubilee, Tweneboa) to Sierra Leone (Venus) Brazil OGX s shelf margin stratigraphic discoveries Guyana/Suriname Basin surrounded by major companies (Exxon, Total, Shell, Tullow, Repsol, Murphy, Noble, Inpex, YPF) Capitalization C$155 million market capitalization on TSX-V (Symbol OYL) million shares outstanding, million fully diluted Insiders hold 4.5% directly 3

4 Financing Use of Proceeds CGX Capital Requirements (C$ Millions) Georgetown PPL (25% WI) Jaguar Well, Cretaceous Turonian Test Jaguar is targeting the Upper Turonian formation that is analogous to the Upper Turonian Prospect at Eagle, which has a prospective recoverable resource best estimate of 1.2 billion bbls Corentyne PPL (100% WI) Eagle Well, Tertiary Eocene Test Prospective recoverable resource best estimate 300 mmbbl Amount $21.0 $37.0 Contingency and Deal Costs $7.0 Total Use of Proceeds $65.0 Cash on Hand $13.5 G&A Through Drilling $3.5 4

5 Activity Timeline Q2 Q3 Q4 Q1 Q2 Q3 Q4 Financing Rig Tender Drill Jaguar Well on Georgetown Licence Drill Eagle Shallow Well on Corentyne Licence A drill rig tendering consortium is contracting a rig to drill five wells in the Guyana Suriname basin late 2010 / early 2011 CGX will participate in two of these wells CGX Commitments Drill one exploration well on the Georgetown PPL by May 2011 Drill one exploration well on the Corentyne PPL by November

6 Joint Venture Process Managed by Jefferies & Company Virtual Data Room Physical Data Room - 2,345 km 2 of new 3D seismic on work stations Summary of Process A number of companies contacted A significant number of companies signed CAs and entered physical data room As a result of the process and discussions with interested parties, CGX believes it has received external technical affirmation of the merits of its prospects Current Status Discussions are ongoing with potential partners Possibilities remain for transactions in future Proof of Concept $80 million Jaguar well committed to by Repsol, YPF, Tullow and CGX 6

7 Equatorial Atlantic Margin Play The Atlantic Margin at Turonian - Campanian Time (Mid Cretaceous) Venus - Campanian (Anadarko, Repsol, Woodside and Tullow) Jubilee, Tweneboa - Turonian (Kosmos, Anadarko, Tullow) Guyana CENOMANIAN SOURCE ROCK SurinameFrench Guiana Sierra Leone Liberia Cote d Ivoi re Ghana Guyana/Suriname Basin Mirror image depositional setting and geological timing to recent world class West African discoveries Cross-section Offshore Ghana Turonian, Campanian, and Eocene (CGX Prospects) Source : Anadarko 7

8 Proven Hydrocarbon System Offshore Guyana Under Explored Only 11 wells and 21,000 km 2D from 1958 to 2007 Abary Shell 1975 In-well blow out 37 API oil in mud Tambaredjo and Calcutta > 1.0 billion barrels OOIP Outline of CGX Licences 8

9 Guyana Suriname Basin Operators Preparing to Drill Potential drilling within 12 months 9

10 CGX Preparing to Drill Two Wells 100% WI % Drill Location Georgetown Jaguar 25% WI (Repsol 15%, YPF 30%, Tullow 30%) Turonian Prospect Spud H TD 6,500 metres Cost ~ US$80 million 1,839 sq km 3D seismic 100% 100% 25% Corentyne Eagle 100% WI Eocene Prospect Spud H TD 3,500 metres Cost ~ US$35 million 506 sq km 3D seismic 62% 10

11 Jaguar to Test Turonian Trend Eagle to Test Eocene Trend Success in Jaguar (JAG- 1) or Eagle (EG-1) leads to multiple opportunities Primary Prospects Turonian Basin Floor Fan Eocene Turbidites Leads Maastrichtian Sand Campanian Turbidite Albian / Aptian Reef 11

12 Depositional Model for Turonian Berbice Canyon 25 km across 1.3 km deep Richards, Bating, Bowman,

13 Corentyne Incised Valley Funnels Sands on to Slope Eagle Location A B Shelf Margin Carbonates Sand Rich Shelf Cond uit fo r Apro n San d D epos sand its into basin Corentyne Incised V alley High Qua lity Sourc e Rock B Albian Sh elf Margin Carbonat es ±!i MAH#2!i Jur MAH#1!#!h JAG-1 ABARY#1 EG-1!#!ª HORSESHOE A!h CO-1 25 km ass Se ic Sy dim n en rift ts ~6,200 m Oli g Ch ocen an ne e ls Eoc ene San ds Ma ast ri San chtian ds E Cam agle pan i Eag an T ur l e o ni an 13

14 Success in Jaguar De-risks Eagle Cretaceous Turonian 14

15 Success at Eagle De-Risks Tertiary Eocene Trend 15

16 Key Management Overview Kerry Sully President CEO and Director James Fairbairn, C.A., ICD.D CFO John Clarke VP, Business Development 40 years experience Former CEO and Director of Ranchmen s Resources Reserve assessments include Iran 1975 Financial modeling Texaco Exploration B.Sc. Chemical Eng, University of Saskatchewan 20 years experience with publicly-traded companies Officer of Claim Post Resources and Treasury Metals Director Canada Lithium and Trelawney Mining and Exploration B.A. University of Western Ontario, Chartered Accountant 35 years experience - E&P with Texaco and Candax; O&G Analyst with Deutsche Bank and Octagon B.Sc. Physics, Birmingham University M.Sc. Imperial College B.A. English, University of Calgary Warren Workman VP, Exploration 35 years experience Previously with Amoco, Unocal and Ranchmen s B.Sc. Geology, Queen s University, Ontario 16

17 Other Directors and Officers Denis Clement John Cullen Edris K. Dookie Adrian Jackson Oliver Lennox-King Charlotte May Director 27+ years experience in corporate finance, law and management Director of a number of public and private resource companies Co-founder and Director 27+ years experience Co-founder and former director of Candax Energy Inc. and director of Southeast Asia Mining Corp. Co-founder Executive VP of CGX Resources and President of ON Energy Independent Director Equity Analyst with Investec Asset Management based in London, UK Independent Director Chairman of the Board of Fronteer Development Investor Relations 20+ years experience in the institutional brokerage industry focused on junior oil and gas companies 17

18 Terms of the Offering Issuer: Offering Unit: Pricing: CGX Energy Inc. ( CGX ) Unit offering of $65 million Each Unit comprised of one Common Share and one full Warrant (each full Warrant is exercisable into one Common Share for 18 months following Closing) In the context of the market Over Allotment: Use of Proceeds: Co-Lead Agents: Up to 10% of the Offering To fund CGX s 25% share of the Jaguar well on the Georgetown license, its 100% share of the Eagle well on the Corentyne license, and for general corporate purposes Cormark Securities Inc. and RBC Capital Markets Pricing: On or about June 25, 2010 Closing: On or about July 7,

19 (TSX-V: OYL) June 2010