CWC Group Kurdistan-Iraq Oil & Gas Conference December 2, 2013 Erbil, Kurdistan-Iraq Accelerating Oil & Gas Development Projects to Fuel the Economy

Transcription

1 CWC Group Kurdistan-Iraq Oil & Gas Conference December 2, 2013 Erbil, Kurdistan-Iraq Accelerating Oil & Gas Development Projects to Fuel the Economy Simon Hatfield, CEO

2 Highly Prospective Portfolio Large Scale, High Quality Resources 974 million BOE* of gross contingent resources already discovered 2.9 billion BOE** of gross prospective resources targeted in drilling program Current drilling program production potential up to 20,000 bbl/d+ * Independently audited by Sproule International Limited see Annual Information Form dated March 22, 2013 for data; estimates subject to revision following completion of Kurdamir-3 well testing ** Includes resource estimates for Kurdamir, Baram, Sarqala, Qulijan, Chwar and Alyan prospects. Qula Prospect resource estimate not included, assessment underway. 2

3 Positioned for Growth Qulijan Approval to drill granted with anticipated spud date in Q Follow-up exploration opportunity for Kurdamir Oligocene reservoirs. Qulijan site has been prepared and is drill ready Chwar Approval to drill granted with anticipated spud date in Q Gazprom Neft to fund the well cost at 100%. WZR has the ability to re-instate its full interest if a material discovery is made. Low risk exploration prospect for the Jeribe-Dhiban reservoir Alyan Moderate risk exploration opportunity within the Jeribe and Oligocene play fairways Qula Large upside prospect in same structural complex as Chia Surkh Discovery. Potential targets include Jeribe-Dhiban, Euphrates Oligocene reservoirs Garmian Seismic Acquisition Complete North Garmian 3D will further define Baram and Qulijan structures South Garmian 3D interpretation underway to support ultimate development of Sarqala oil discovery 3

4 Kurdistan Current Oil and Gas Demands Export Market: Current Production Capacity (Nov 2013): Genel Taq Taq 100, ,000 bbl/d DNO Tawke 100, ,000 bbl/d KAR Khurmala 80,000 bbl/d Sub Total 320,000 bbl/d Domestic Market: Current Production Capacity (Nov 2013): Bazian Refinery Tawke Refinery Erbil/Dohuk Refinery Sub Total Production Capacity: Tawke To Fish Khabur (Direct) Production Capacity: Remaining 35,000 bbl/d 5,000 bbl/d 100,000 bbl/d 140,000 bbl/d 100,000 bbl/d 80,000 bbl/d New Khurmala-Fish Khabur Oil Pipeline: Export Volumes: Initial Capacity 160,000 bbl/d ,000 bbl/d ,000,000 bbl/d ,000,000 bbl/d 4

5 Kurdistan Infrastructure Requirements Current Exports to Turkey Reported ~70,000 bbl/d trucked to Turkey 1 Existing oil pipelines capacity 2 Kirkuk Ceyhan pipeline: 2012 exports of 0.4 million bbl/d versus 1.6 million bbl/d capacity Tawke to Fish Khabur. 100,000 bbl/d capacity New oil pipelines: Kurdistan and Turkey 4 5 Taq Taq to Khurmala: 81 km. 20 Capacity ~150,000 bbl/d. Completed Khurmala to Fish Khabur: 24 opening to 36 ready for operations in Q Capacity ~300,000 bbl/d Existing gas pipelines: 6 Kormor to Chemchemal and to Erbil Power Plants. 173 km. 24 providing 350 MMSCF/d Under construction gas pipelines: Summail Field to Dohuk Power Plant: ~50 km 7 8 Planned oil and gas pipelines: 8 Oil and gas pipeline extension to the Garmian Block planned by KRG * * as published in The Oil & Gas Year 2013,Kurdistan Region of Iraq 5

6 Kurdamir Phased Development Concept Primary Reservoir: Oligocene Potential upside of additional adjacent prospects Potential for cooperative infrastructure development * *Development concept assumes water zone encountered in Kurdamir-3 does not extend across whole Kurdamir structure 6

7 Sarqala and Kurdamir Field Conceptual Development Phase 1 Early Well Test rental spreads for near term oil production Monetize oil sales via trucking to domestic or export markets Sarqala EWT capable of up to 15kbbl/d and expandable Phase 2 Replace EWT with permanent oil facilities Install gas facilities to deliver sales gas, condensate and LPG s Connect facilities to the Kurdistan pipeline network Phase 3 Additional development drilling Tie-in new exploration successes Expand oil and gas facilities in conjunction with production Phase 4 Pursue enhanced oil recovery utilizing water or gas re-injection 7

8 Sarqala-1: Production Capabilities Sarqala-1 Discovery well encountered gross interval of 2,335 meters with maximum flow rates tested in excess of 9,000 bbl/d (1) Pre-development production capacity at 5,000 bbl/d with workover planned to increase capacity up to 10,000 bbl/d subject to KRG approval Produced over 1 mmbbls (2), no gas cap or water leg encountered in Sarqala-1 Further Jeribe appraisal to be conducted through Hasira-1 well and seismic acquisition Joint Venture anticipate submitting declaration of commerciality and development plan for Sarqala discovery by end 2013 Shipping Pumps: Sarqala-1 Production Tanks: Sarqala -1 Shipping Pump Manifold: Sarqala-1 Oil Lines: Sarqala-1 New Separator: Sarqala-1 (Sept 2013) Tanker Loading: Sarqala -1 Loading Gantry: Sarqala-1 (1) Constrained by surface facilities (2) From Oct 2011 to Nov

9 Sarqala Field Conceptual Development * Primary Reservoir: Jeribe/Dhiban Potential upside of additional adjacent prospects Potential for cooperative infrastructure development South Garmian potential capacity: 125,000 bbl/d Hasira-1 Well *Development concept assumes Sarqala structure is full of oil to spill point 9

10 Overcoming Obstacles Continued tight market for rigs and facilities Acute shortage of trained personnel Embryonic, evolving service industry Restricted market access 10

11 WesternZagros Upcoming Catalysts High-impact exploration and appraisal program targeting gross contingent resources of 974 million BOE* and $2.9 billion BOE** in the drilling program. Kurdistan advancing direct oil pipeline to Turkey with first oil exports anticipated by the end of the year.*** WZR development plans aligned with the KRG s infrastructure development. Assets well suited for phased development High deliverability wells Appraisal drilling ongoing to define reserves Establishing gas utilization with KRG * Independently audited by Sproule International Limited see Annual Information Form dated March 22, 2013 for data; estimates subject to revision following completion of Kurdamir-3 well testing **Includes resource estimates for Kurdamir, Baram, Sarqala, Qulijan, Chwar and Alyan prospects. Qula Prospect resource estimate not included, assessment underway ***As mentioned by Dr. Ashti Hawrami, Minister of Natural Resources, KRG, at a November 21, 2013 Istanbul conference 11

12 Head Office 600, 440 2nd Avenue S.W. Calgary, Alberta, Canada T2P 5E9 Tel: Fax: investorrelations@westernzagros.com Hasira-1 Well Aug 2013