A Major East Africa Explorer Developing World Class, Conventional Low Cost Oil & Gas Basins

Transcription

1 A Major East Africa Explorer Developing World Class, Conventional Low Cost Oil & Gas Basins Oyster Oil and Gas Ltd - Corporate Finance Presentation Q3 2017

2 DISCLAIMER This document has been prepared and issued by and is the sole responsibility of Oyster Oil and Gas Ltd (the Company ) and its subsidiaries. It comprises the written materials for a presentation to investors and/or industry professionals concerning the Company s business activities. By attending this presentation and/or accepting a copy of this document, you agree to be bound by the following conditions and will be taken to have represented, warranted and undertaken that you have agreed to the following conditions. This presentation may not be copied, published, distributed or transmitted. The document is being supplied to you solely for your information and for use at the Company s presentation to investors and/or industry professionals concerning the Company s business activities and the proposed admission of the entire issued share capital of the Company to trading on AIM, the market of the same name operated by London Stock Exchange plc (the Admission ). 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3 EXECUTIVE SUMMARY Corporate Overview Listed on TSX Venture Exchange (Ticker OY ), Market Cap ~$20 million (at C$0.50/ share) E&P Objectives Developing major new oil/gas basins, focused on significant, low cost, conventional, (not landlocked) resource plays PSC s are located in politically stable countries, with attractive full cycle economic terms Investor Objectives Shareholder Return: Developing major exploration prospects, farm-outs and drilling success Executive Team Highly experienced with successful industry track record in Africa & Middle East East Africa Portfolio Madagascar Overview Oyster holds rights to over 6 Million Acres with several highly prospective basins in located in East Africa: Block 1101: Oyster holds 100% and Operatorship Block Million Acres; ~10 Billion* Barrels of oil mapped in a number of basins/prospects Active exploration program & major drilling event scheduled in next 30 months Djibouti Overview Business Development Strategy Oyster 100% WI in 4 Blocks: - 3 Onshore & 1 Offshore; ~3.5 million gross acres High Potential Frontier Exploration, with favourable PSC terms Large onshore basin confirmed, mature oil source present,and good quality reservoir potential Oyster has a clear strategy to develop and monitise Portfolio Seeking an AIM IPO in Q2/Q Note: * Figures based on company calculated STOIIP un-risked ** Company calculated P50 Mean recoverable resource (un-risked) 3

4 MANAGEMENT TEAM Michael Wood, President & Chief Executive Officer, Director Mike is the founder of Oyster Oil and Gas and has over 30 years of experience in the international energy business. Mike has held various executive positions in a number of publicly listed companies. He started his career with Gulf Oil and Conoco and is a qualified accountant. Mike was formerly President, CEO and CFO of Heritage Oil Corporation and was responsible for the development of the company s portfolio in Africa and the Middle East as well as the listing of Heritage as a public company. In 2004 he was a founder of Candax Energy Inc. As President and CEO he was responsible for the acquisition of various producing oil and gas fields in Tunisia as well as other exploration activities; Candax was listed on the TSX in Mike has a long and successful track record in leadership, negotiating transactions, and raising significant capital; generating outstanding returns for shareholders. Dr Phil Roach, Head of Exploration Phil has over 35 years of experience as a geoscientist in the international energy sector. Phil worked with Shell for 13 years in various international roles; including three years in Nigeria. He then moved to head up the geophysics group at Energy Resource Consultants (ERC), a major UK consultancy group, transitioning with the management team to become Chief Geophysics at PGS Atlantis. Phil s experience is derived from his extensive leadership in a wide variety of international locations and geological settings, including the design, implementation and management of exploration programs and technical evaluations. Since 2004, Phil has undertaken numerous international exploration assignments as a consultant. Bruce McNaught, Chief Financial Officer, Director Bruce is a Fellow of the Institute of Chartered Accountants (FCA) in England, a Trust and Estate Practitioner (TEP) and holds a BA (Hons) degree in Accountancy. Having spent 30 years between London and the offshore fiduciary industry in Guernsey he has gained broad experience with international businesses in the hydrocarbon industry, financial services and other multinational operations. Shaji Ravindran, General Manager Shaji has more than 35 years of experience in Upstream Oil & Gas Exploration & Production in the Middle East and Africa. He started his career with Elf Petroleum in Oman and continued with Occidental Petroleum. Then he became Finance & Administrative Manager with International Petroleum Corporation in Oman and worked for Occidental Qatar. He worked as General Manager for both Triton Energy Inc. Atlantis Oman Ltd in Oman. He worked as the General Manager of Candax Energy in their operations in Madagascar prior to joining Oyster Oil. Shaji has a Masters degree in Commerce from an Indian University and various qualifications in Finance & Management. Executive Team: Highly experienced with successful track record in Africa 4

5 DIRECTORS & OFFICERS Greg Turnbull, Director Greg, QC is a partner with McCarthy Tétrault. During his career, he has dealt with all aspects of a public company's creation, growth, and value maximization. He has experience in corporate finance and securities transactions, including public and private share and debt financings, takeover bids, initial public offerings, business combinations and international stock exchange listings. He provides advice on various corporate finance transactions and has been actively involved in the initial public offerings of more than 40 companies. In particular Mr Turnbull has extensive experience in the international oil and gas sector. Don Sharpe, Director Don is a Professional Geophysicist with more than 30 years of experience in the oil and gas industry. Don received his Bachelor of Science degree in Geophysics from the University of British Columbia in 1981, a Certificate in Business Management from the University of Calgary in 1989 and graduated from the Banff School of Advanced Management in He is a member of the Professional Geoscientists of Alberta and the Canadian Society of Exploration Geophysicists. Don has started, run and sold a number of successful oil and gas companies in Canada, the United States and Africa. Most recently Don was a director of UNX Energy Corp., was chair of the Reserves Committee and was chair of the Special Committee that negotiated and closed the $760MM sale of the company to HRT Participações em Petróleo S.A. Don currently provides consulting services under D. Sharpe Management Inc. Emily Davis, Corporate Secretary, Emily is based in the Vancouver head office 5

6 CAPITAL STRUCTURE No of Shares in Issue: 43,296,659 No of Warrants in Issue: 1,575,127 (Av Price = c$0.45) No of Options in Issue: 3,175,000 (Av Price = C$0.29) Significant Shareholders: Michael Wood 14% Gunsynd plc 5% Polemos plc 4% Oyster Oil Closing Prices for last 12 Months 6

7 OYSTER PORTFOLIO Onshore Blocks Country Block No Oyster WI (%) Gross Acreage (Km²) Target Geology Djibouti 1 100% 3,400 Pre-rift sediments of Adigala- Guban Jurassic basin Djibouti 2 100% 3,200 Southern extension of Red Sea Basin & also regional Jurassic play Djibouti 4 100% 5,200 Pre-rift sediments of Adigala- Guban Jurassic basin Madagascar % 11,200 Jurassic & Triassic Djibouti Offshore Blocks Madagascar Djibouti 3 100% 2,300 Southern Extension of Red Sea Basin + Regional Jurassic play Oyster currently holds interests in ~25,300km² of concession rights Notes: All Oyster Operated 7

8 A World Class Oil Exploration Asset Onshore Madagascar Antsiranana Block

9 EASTERN AFRICA BASIN DEVELOPMENT Uganda Sudan Kenya Madagascar relative southward drift from Africa commenced in the Jurassic Period ~180Ma Shows the Plate reconstruction ~150Ma Widespread development of Jurassic & Triassic source prone shale deposits (green areas), overlaying Permo-Triassic (Karoo) sediments Tanzania Offshore Mozambique Offshore Block 1101 Tsimiroro & Bemolanga MADAGASCAR Ampasindava Development of Jurassic Source Shales & Current Day Major Oil & Gas Basins Jurassic shales: source rocks for huge oil reserves in Uganda, Kenya & thought to be the source of giant East African gas fields EAST AFRICA WORLD CLASS OIL & GAS Mozambique >180 TCF Tanzania >70 TCF Madagascar Tsimiroro/Bemolanga ~20 Billion BBL (Heavy Oil) Madagascar Ampasindava ~10 Billion BBL (Light Oil, potential) 9

10 MADAGASCAR - COUNTRY & TECHNICAL OVERVIEW Block 1101 Prospectivity: Source Rocks, 4 oil prone source rock intervals present across the Block Reservoir: Triassic Isalo & younger Jurassic sandstones. Multiple Trap types present Aeromagnetic confirms deep >8km sedimentary basin Work completed: Drilling & Coring 2 wells with Afren confirming evidence of a Light Oil Play (2014) 2D Seismic & Geological Field Work & Mapping Focus Areas: Ampasindava: The main area of focus, with prospects mapped of up to ~6 Billion BBL* Ambilobe: A separate basin with 2 prospects of ~4.5 Billion BBL*. Further data needed before drilling decision. Ankaramy: 2 wells drilled & cored in 2014, confirming light oil play at the site of the 1902 discovery. Block th Largest Island in the World Scale: Length 1,114km Width 444 km Area 587,000 km² Ankaramy: Seismic section & Wells No s 1 & 1A Well 1 Ampasindava Ankaramy BLOCK 1101 Note:* Figures based on operator/company calculated STOIIP un-risked 10 Ambilobe Exxon s: Sikafa Prospect ~1.2 Billion Block 1101 BBLS Well 1A

11 AMBILOBE PROSPECT & MAPPING Structural Closures at Ambilobe Mantaly Prospect: Structure closure measures ~ 65 km² STOIIP 2.9 Billion BBL Ambilobe Seismic coverage Antso Lead: Structure closure measures ~ km² STOIIP 1.6 Billion BBL Figures based on Operator est. STOIIP un-risked not RPS CPR ANTSO Top Isalo ANTSO LEAD MANTALY PROSPECT MANTALY 11

12 AMPASINDAVA PROSPECT & MAPPING Bandrany Oil migration from mature Lower Jurassic Shales Structural Closure Ampasindava Structure (~105 km²) Bandrany Maraindava High-case ~10 Billion BBL* Mid-case 5.8 Billion BBL* Bandrany (20Km²) Mid-case 800 Million BBL* Maraindava (40Km²) Mid-case 2.1 Billion BBL* Maraindava WEST Figures based on Operator est. STOIIP un-risked not RPS CPR EAST 0 - metres KM 12

13 AMPASINDAVA: STRUCTURAL X-SECTION & CORE ANALYSIS Geo-seismic Cartoon, Ampasindava is an onshore extension of offshore Jurassic/ Cretaceous plays Offshore Jurassic source extent Core Analysis,Wells 1a & 1 (Ankarmy): 4 locations drilled in late 2014 in Block 1101 Oil Shows in 2 wells (Well 1a TD 650m & Well 1 TD 500m) Both wells were testing the reported shows at Ankaramy in 1902 well BH1 Core X-section (shown) Yellow fluorescence observed in a number of zones between m, very bright in the lithology section shown. Well site reported presence of oil odour. Geochem - added organic solvent produced a brightening of fluorescence under UV, analysis suggests higher API (light oil/condensate). Additional bitumen shows present m BH1a also had shows at similar intervals Jurassic source outcrops Structure Mapping: 3D Model of top Isola structure & X section. FTG model response of structural map 13

14 AMPASINDAVA: DEVELOPMENT CONCEPT Project Economics Mid Case 5.8 Billion BBL (STOIIP) Recovery Factor : 30% Recoverable 1.7 Billion BBL* Oyster 100%WI** Gross NCF : $22 Billion NPV 10% : ~$10 Billion Oil Price $50/bbl. Gross Block Investment to date ~US$24 MM Oil Production Wells Production Pipeline To PLET Shuttle Tanker Offloads oil from FPSO Transports oil to market Production Tree Manifold Jumpers Gathering Manifold Oil from Production trees PLET PLET located on beach Pipelines run subsea to FPSO Production Pipeline To FPSO Ampasindava Peninsula Bandrany & Maraindava Area FPSO Floating Production, Storage & Offloading unit Moored close to shoreline Note: * Operator calculated volumetric recoverable resources un-risked ** Operator Economic Projections 14

15 Djibouti Located on Two Prolific Hydrocarbon Rift Systems Onshore Blocks 1, 2 & 4 and Offshore Block 3 15

16 REPUBLIC OF DJIBOUTI Strategic location in the Red Sea/Gulf of Aden, bounded to the north, west and south by Eritrea, Ethiopia and Somalia respectively A stable democratic republic with a presidential/parliamentary system Government has strong ties to Europe, USA, Middle East and Far East Governments Major shipping terminal acts as the main port for the East African highlands (Ethiopia & South Sudan etc) Large US, EU & Asian (Chinese/Japanese) military presence Politically stable Good internal & external security Free market economy 16

17 REGIONAL HYDROCARBON OVERVIEW Eritrea A number of undeveloped discoveries have been made offshore Oil seeps recorded around Dahlac Islands Ethiopia First seismic acquired in Adigala 1964 Oil seeps reported close to the Djibouti border at Ali Sabieh (A known oil source in Djibouti) Large gas/condensate discoveries in Ogaden basin ~5TCF (Upper Jurassic) Yemen Eritrea Djibouti Ali Sabieh Ethiopia Somalia Yemen A well developed oil /gas business with production since early 1980 s: Produced > 2 Bboe Oil reserves ~ 3 Bbbls Production: ~100,000bpd Gas reserves ~ 17Tcf* Production: 365 Bcf in 2013* Somalia Oil encountered in wells drilled in Northern Somalia in the 1960 s Djibouti: Oyster has a first mover advantage as it is the company undertaking a systematic exploration program in Djibouti. It should be noted that most of the African side of the Rift System has had little exploration when compared to Yemen & Saudi Arabia. 17

18 DJIBOUTI: EXPLORATION HOLDINGS Oyster holds most of prospective acreage in Djibouti under a PSC with favourable terms. Djibouti has the potential for significant, low cost oil basins Oyster s blocks located within two highly productive hydrocarbon rift systems Oyster s Blocks 1 & 4: Located in the Northern part of the East Africa Rift System World class proven oil plays being developed in Uganda & Kenya Oyster s Blocks 2 & 3: Southern extension of the Red Sea basins Red Sea has been hugely prolific oil and gas producing region in Egypt Also various offshore discoveries in Sudan & Eritrea Oyster s area of interest 14,100 km² Oyster negotiated a PSC covering most of Djibouti, with attractive fiscal and work programme terms 18

19 DJIBOUTI: TECHNICAL WORK Work Programme Overview Extensive geological fieldwork & geochem analysis conducted Offshore oil/gas seep survey & reprocessing of 1980 s seismic 2014 Conducted the largest onshore Magnetotelluric Survey in East Africa pluswith ground gravity 2016 Conducted high resolution airborne gravity and magnetic survey in Block 1 Technical Analysis Mesozoic Outcrop at Ali Sabieh, provides evidence of mature Jurassic oil source rocks, analysis shows good organic content & presence of migrated light oil Two good quality sandstone reservoir fairways identified, Lower Cretaceous Grès d Ali Sabieh & Upper Jurassic Grès et Calcaires Gréseux. Jurassic Adigrat Sandstone reservoir expected to be present but not exposed Seals: Jurassic tight limestone & (possibly) Cretaceous/Tertiary claystones 19 Key Seismic Lines Guban Basin Mesozoic Outcrop at Ali Sabieh Extent of the Regional Mesozoic sedimentary basin, subsequently affected by Tertiary rifting

20 EXPLORATION POTENTIAL IN THE MESOZOIC CONFIRMED Possible extent of Mesozoic sediments beneath volcanic cover SW NE Ali Sabiah Outcrop MT & ground gravity profiles recorded interpretation have further defined the extent of sediments (example profile 1a) D C The 2016 Airborne Survey (3,350Kms) Interpretation & Analysis of Bouguer Anomaly map indicates a large area located onshore to SW of Djibouti City with an estimated basement depth of ~4 Kilometres and an interpreted Mesozoic sediment section (potential reservoir & seal) thickness of 3 kilometres or more. 20

21 OYSTER SUMMARY Oyster Oil has a large, strategic portfolio located in East Africa in underexplored but potentially highly prolific basins which provides Oyster with the potential to define & develop major new oil & gas reserves. All the blocks are held under Production Sharing Contracts, with attractive fiscal terms and work programme commitments Located in countries that are pro-investment and politically stable Acreage is located primarily in onshore locations but with easy access to the coast and thus to world markets and logistical support All blocks are held 100% and Oyster is the Operator; thus under the control of Oyster and in conjunction with government bodies Potential farm-outs will be accessed, to leverage shareholder value 21

22 CONTACT Corporate Head Office: Tel: +1 (604) Suite West Georgia Street Vancouver, British Columbia, Canada V6E 2Y3 European Office: St Peter Port, Guernsey CI Operating Offices: Djibouti City, Republic of Djibouti Antananarivo, Republic of Madagascar 22