April TMX Presentation. 18 Billion Barrels of Prospective Resources Significant Upside Potential 1

Transcription

1 April 2013 TMX Presentation 18 Billion Barrels of Prospective Resources Significant Upside Potential 1

2 Forward Looking Statements This presentation contains certain statements that may be deemed forward-looking statements. All statements in this presentation, other than statements of historical fact, that address events or developments that Eco (Atlantic) Oil & Gas Ltd. ( Eco Atlantic ) expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words expects, plans, anticipates, believes, intends, would, may, could or should occur. Although Eco Atlantic believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include, but are not limited to, market prices, exploration and drilling success, continued availability of capital and financing and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in these forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of Eco Atlantic s management on the date the statements are made. Eco Atlantic undertakes no obligation to update these forward-looking statements in the event that management s beliefs, estimates or opinions, or other factors, should change. 2

3 Eco Atlantic Investment Profile Emerging Oil and Gas Company Second largest acreage holding onshore and offshore Namibia Dual listed on the TSXV and NSX (Namibian Stock Exchange) under "EOG Excellent Growth Potential Three offshore licenses covering over 25,000km 2 (6,177,000 acres) located in Namibia s Oil Kitchen Walvis Basin Two onshore shale gas & CBM licenses covering over 30,000km 2 (7,413,000 acres) Advanced Exploration Program Gustavson Associates: NI Report, Guy Block 9.2 Bbbl (P50) Best Estimate, Prospective Resources (May 2012) NI Report, Sharon Block 7.8 Bbbl (P50) Best Estimate, Prospective Resources (March 2012) NI Report, Cooper Block 1.15 Bbbl (P50) Best Estimate, Prospective Resources (August 2011) Gross Prospective Resource 18 Bbbl (P50) Best Estimate Prospective Resources (Net 12.71Bbl) Frontier Oil Industry Attracting majors (BP, REPSOL, PETROBRAS, HRT, GALP) Highly Experienced Team Experience in capital markets, African oil & gas, with established local networks Deal team execution track record 3

4 The Team: Africa, Oil Experience Moshe Peterburg (Chairman, Co-Founder): Over 25 years of experience in Africa (Nigeria, Equatorial Guinea, Ghana, Namibia and others). Founder and Chairman of GP Minerals, a resource investment and development company. Gil Holzman (President & CEO, Director, Co-Founder): Significant experience in the mining and energy resource sectors throughout Africa. Managed a portfolio of private and publically listed resource and energy companies. Founder and CEO of GP Minerals. Colin B. Kinley (COO, Director, Co-Founder): CEO of Kinley Exploration LLC, providing professional, technical and oversight expertise to resource companies. 31 years of international expertise in energy project management and new energy company development. Director of Manx Energy Inc. and Excelsior Minerals (TSX-V:MIN). Alan Friedman (Executive Vice President, Director, Co- Founder) President of Rivonia Capital Inc. 12 years experience in acquisitions, financings and TSX public transactions Co-founder/Director and of Auryx Gold Ltd. (TSX-V: AYX) Namibian assets sold to B2Gold for over $140 million. Facilitated numerous TSX listings, financings and M&A Helmut Angula (Non-Executive Director): Over 20 years experience in the Namibian Government. Served as Deputy Minister of Mines & Energy Ex- Minister of Fisheries & Marine Resources; Finance; Agriculture; Water & Rural Development; Works and Transport Peter Nicol ( Non- Executive Director) 40 years experience in the banking industry, with 20 years specializing in the oil and gas sector. Headed the Oil and Gas Research team at GMP Securities Europe Initiated coverage and finance of over 36 international E&P Companies. 4

5 Namibia Economic Profile GDP: US$16.77 billion (2012) Annual Growth: approx 4.5% (2012) Population: 2.32 million (2012 estimate) Inflation: 6.5% (2012 average) Major trading partners: South Africa, Angola, UK, Spain, Japan, China and USA Taxation of oil production: 5% State Royalty / 35% corporation tax / no capital gains / IRR>15% - APT 1.5 times the size of France, Capital city is Windhoek Encouraging international foreign investments Long history of resource tenure security African jurisdiction with low political risk Rated top African emerging Market 2013 by Bloomberg 5

6 Gondwana Theory, Paleoceanographics Brazil ~ Namibia Relationship Mirrored Geological Structures Angola Eco Atlantic Targets Walvis Basin Brazil Espirito Santo Basin Campos Basin Namibia Santos Basin 30 Bbbls BOE Estimated Offshore Brazil Over 80 Bbbls BOE Recent Discoveries in South Atlantic Ocean 6

7 Offshore Licenses Namibe Basin Repsol/Tower/ Arcadia Repsol Farm in 44% WI Westbridge Energy ~ 22,400 km 2 exploration license, partner search Pan Africa Oil 1,750 km 2 of seismic completed Walvis Basin Eco Atlantic Oil & Gas 18 Billion Barrels of Prospective Oil HRT /GALP 4 Wells planned 2013, first in March 2013 Chariot Central Blocks farm out in 2013, drilling 2014 Luderitz Basin Serica Energy/BP BP Farm-in 30%, Fund $40m 3D Seismic NAMCOR Cowan pays N$50m signing bonus Orange Basin Chariot/ Petrobras/BP (45% WI) Drilled Nimrod Prospect oil shows & source rock 7

8 Walvis Basin Potential The Oil Kitchen Eco Atlantic 18 Bbbl Prospective Resources on three blocks offshore 3D seismic program commence 2013 Repsol/Tower/ Arcadia Repsol farm-in 44% working interest NAMIBIA HRT 3.68 Bbbl Prospective Resources on 2 targets in Walvis Basin Serica Energy/BP BP farm- in 30% working interest 4150Km 2 3D seismic program completed Chariot Oil & Gas 3D seismic complete over Central Blocks Oct/12 Update prospects and leads & open data room Q Five Wells Offshore Namibia in next 12 months: 3 wells HRT/GALP Blocks 2112B 2212A (2013) first well Q1 Chariot Blocks 2312A/B, 2412A Central Blocks (2014) Pancontinential 2012B/2112A Repsol/Tower Q

9 Corporate Snapshot Analyst Coverage Price Eco (Atlantic) Oil & Gas Ltd. Trading symbol: EOG Trading Platform: Toronto Stock Exchange (V) Namibian Stock Exchange Cormark Securities Clarus Securities $2.00 $3.00 M Partners $3.50 Share Structure Shares Issued and Outstanding 68,959,661 Warrants 5,290,756 Options 5,040,000 Fully Diluted 79,290,416 Share Price $ Week High / Low $1.17 / $0.28 Average Volume 56,820 Market Cap 35.86M Shareholders Management + Board 50% Institutional 30% Retail 20% Financials Cash ~ $6.5 Mil * Debt NIL * As at April 4,

10 The Opportunity, Undervalued & Low Cost Entry EOG: TSX.V Share Price: $

11 Liquidity Eco Atlantic average daily volume: 56,820 Small Cap Average daily volume: Taipan Energy: 88,217 Serica Energy: 4,250 Vanoil Energy: 31,625 Petro Viking: 33,222 Energulf: 22,965 11

12 Market Performance Comparables All peers underperform due to market conditions Eco maintains strong position among competitors Conservative spending, cashed up, tightly held, only 69M shares outstanding Opened at $0.60 November 29,

13 Increasing Activity Offshore NAMIBIA OFFSHORE Announcement Date Transaction License Westbridge Energy farms into Namib and Walvis Basin Feb 6, 2013 WEB entered into LOI with Ropat Petroleum majority interest, operator and 75% WI 1911A, 1912B, 1910A & 2011A GALP farms into HRT Blocks Nov 26, 2012 GALP farm-in 14% WI on blocks, pay past cost + carry Serica Energy Issues NAMCOR 6 million shares Cowan pays N$50m to explore NAMCOR blocks Repsol completes farm-in w. Tower/Arcadia Tower to convert its 15% carried interest to 30% WI PEL 23 (Walvis) 24, 28 (Orange) Nov, 2012 NAMCOR now hold s 3.28% in Serica 2512A, 2513A, 2513B and 2612A August, 2012 Cowan gives NAMCOR a N$50Mil bonus to explore blocks offshore 2613A and 2613B July, 2012 Repsol farm-in, operator 44% WI 2011A (right next to Eco s 2012A) July, 2012 TPR increase WI to 30% for ~US$5.3Mil (30% past expenses) pays 30% future costs 2011A (right next to Eco s 2012A) Pancontinental purchases additional 10% in license July 2012 PCL increases WI to 95% w. partner Paragon - US$4Mil Eco Atlantic reports 9.2Bbbl offshore May 2012 NI (P50) Best Estimate report 9.2 Bbbl Prospective Resources 2113B, 2112A, 2012B (surrounded by Eco blocks) Guy Block BP farm-in to Serica Energy, Luderitz Basin March, 2012 BP farm-in 30% Serica Blocks & funds $40M 3D seismic program Luderitz Basin Eco Atlantic reports 7.8Bbbl offshore March, 2012 NI (P50) Best Estimate report 7.8 Bbbl Prospective Resource BP farms in to Chariot Central Block August 2011 BP farm in 25% (increased further to 45%), carry Chariot s portion of first well and past costs Sharon Block 2714A, Orange Basin 13

14 Two Drilling Prospects Walvis Basin HRT Spudded Wingat prospect 25 th March 2013 First of two wells planned in Walvis Target 1: Wingat 775 MMbbl (HRT 86% GALP 14%) DHC: $78 million COS: 27% Target 2: Murombe 2.9 Bbbl (HRT 86% GALP 14%) DHC: $92 million Oil seeps confirm similar geological structure as EOG Sharon Block. Eco Blocks (COOPER, GUY, SHARON) surround HRT targets to East, West, and North Source: HRT 14

15 Fugro Slick Report 15

16 Slick Research 16

17 Peer Comparables Eco Atlantic Opportunity Company Ticker Market Cap $CAD (MM) Enterprise Value ($MM) Unrisked Net Resources (MMbl) EV/Unrisked Resources ($/bbl) Notes Chariot Oil & Gas Eco Atlantic CHAR.AIM ,639 $0.00 EOG.V ,702** $0.002 Drilling D seismic 2013/ Leads Identified Energulf Resources ENG.V $0.039 Drilling DRC & 3D Namibia in 2012 Serica Energy Tower Resources Westbridge Energy Pan African Oil SQZ.TSX ,176 $0.015 TRIP.AIM ,643 $0.017 WEB.V Na Nm PAO.V ,040 $0.002 Projects from Seism. To product (BP farm in) Drilling NAM H2/2012 Partner search, acquire seismic Interpret seismic, partner search * Not all NI Compliant Source: M Partners ** The full reports entitled Leads for Cooper Block (2012A) Offshore Namibia, Leads of Sharon Block (2213 A&B) and Leads for Guy Block (2211A/2111B) Prepared According To National Instrument are located on SEDAR 17

18 Company Milestones Operational Highlights August 2011 Cooper, NI Best Estimate (P50) 1.1 Bbbl Oil March 2012 Sharon, NI Best Estimate (P50) 7.8 Bbbl Oil Nov 29, 2011 Trading TSXV:EOG May 2012 Guy, NI Best Estimate (P50) 9.2 Bbbl Oil Jan 2012 Private Placement Raised $0.60/unit July 2012 Slick Data Acquired oil Slick Data Package August 2012 Guy 2D Acquired add l 615 Klms of 2D June 2012 Offshore Farm Out Farmed out 20% WI on Offshore Blocks to Azimuth April 2012 NSX Listing NSX:EOG Nov 2012 Private Placement Raised $0.40/unit Corporate Highlights 3D Survey Farmout Drilling April 2011 Private Placement Raised $0.40/unit 18

19 Why Eco Atlantic 18 Billion barrels of prospective oil resource offshore Namibia in the prolific Walvis Basin Oil Kitchen Low cost entry into region with significant upside potential, undervalued in comparison to peers Experienced management team with expertise in Africa, Oil & Gas industry & capital markets Stable jurisdiction with strong local presence and excellent relationships with host Governments Fully- funded, over $6.5 million in the treasury 19

20 Contact Information Eco (Atlantic) Oil & Gas Ltd. Corporate Office: Canada 120 Adelaide Street West, Suite 1204 Toronto, Ontario M5H 1T1 Namibia Office: 269 Independence avenue, 8th floor Windhoek Corporate Contact: Gil Holzman Chief Executive Officer Julia Maxwell Manager, Investor Relations

21 Appendices 21

22 Farm In Partners Azimuth Ltd. 20% Working Interest / 40% carry A well-funded company with the technical capabilities of a mid cap E&P firm. Backed by majority-owner Seacrest Capital Ltd, a Bermuda based energy investment group Petroleum Geo-Services ASA (PGS), access to world s largest multi-client seismic library Azimuth 20% Working interest. Will fund 40% of 3D offshore (Est.$10m) NAMCOR 10% Carried Interest National Oil and Gas Company. Ensures optimum exploitation of petroleum resources & participation in exploration activities. Acts as advisors to Ministry of Mines & Energy, monitoring the exploration activities of licensees Eco will benefit from access to NAMCOR s geological survey as well as an indirect opportunity to further cooperate on NAMCOR s own held blocks Carried interest until first production with production payback plus interest 22

23 Namibia Basins Onshore & Offshore 23

24 Cooper License Block 2012A Offshore Block Size: 5,000 km 2 (acres: 1,235,000) Access: License: Partners: Water: Target: Floater 70% working interest, 4 yrs + 2 renewal terms of 2 years Azimuth Ltd. 20% WI, NAMCOR 10% WI 200 m to 500 m Basal Tertiary Clastics and Turbidites (2,000m - 2,300 m), upper Cretaceous Clastics and Turbidites (2,400 m - 2,700 m), lower Cretaceous Carbonates (3,300 m - 3,600 m) Commitment: Year 1: Year 2-3: across Year 4: Initial desktop study to review all available seismic and current information (Completed) Complete a 500 km 2 3D seismic survey the block Drill an exploration well - estimated depth of 4,000 m 24

25 Sharon License Blocks 2213A & 2213B Offshore Block size: 10,000 km 2 (Acres: 2,471,000) Access: License: Partners: Water: Jack-up 70% Working Interest, 4 yrs + 2 renewal terms of 2 years Azimuth Ltd. 20% WI, NAMCOR 10%WI 0 m to 200 m Target: Basal Tertiary Clastics and Turbidites (1,800 m - 2,000 m), upper Cretaceous Clastics and Turbidites (2,200 m - 2,400 m), lower Cretaceous Carbonates (3,100 m - 3,300 m) Commitment: Year 1: Year 2-3: Year 4: Initial desktop study to review all available seismic and current information Complete a 1,000 km 2 3D seismic survey across the block Drill an exploration well - estimated Depth 3,700 m 25

26 Guy License Blocks 2111B & 2211A Offshore Block Size: 10,000 km 2 (Acres: 2,471,000) Access: License: Partners: Water: Semi/floater 70% working interest, 4 yrs + 2 renewal terms of 2 years Azimuth Ltd. 20% WI, NAMCOR 10%WI 2,000 m depth (east side targeted) Target: Basal Tertiary Clastics and Turbidites (3,100 m - 4,600 m), upper Cretaceous Clastics and Turbidites (3,500 m - 5,000 m), lower Cretaceous Carbonates (4,400 m - 5,900 m) Commitment: Year 1: Year 2-3: Year 4: Initial desktop study to review all available seismic and current information Complete 1,000 km 2 3D seismic survey across the block Drill an exploration well - estimated depth 6,000 m 26

27 Block 2013B, 2014B, 2114 & 2418 Onshore Block Size: 30,000 km 2 (Acres: 7,413,000) Access: License: Truck mounted mobile drilling rig 90% Working Interest, Eight years Partner: NAMCOR, 10% Target: Karoo Coal and Shale Sequence (estimated 800 m depth 60 m thick) CBM and tight shale Commitment: Year 2+3: Initial desktop study of the resource. Selection of initial drilling target, wireline coring and gas content/volume testing and Maceral evaluation. Estimated drill depth - 1,200 m End Year 4: Drilling of a five spot pilot well test program Onshore 27

28 Local Namibian Participation Eco Atlantic acquired Namibia local company, Eco Oil & Gas Namibia ltd., holding license applications, for consideration of 20% of Eco Atlantic Oil & Gas Only Namibian petroleum company to list on Namibian Stock Exchange Helmut Angula, ex Deputy Minister of Mines and Energy, Elected to Board Of Eco Atlantic Jose Bastos, Co founder of Welwitcshia & Indira Ghandi hospitals in Namibia, elected to Board of Eco Namibia Naeman Amalwa and Phillipine Angula appointed as Country Managers Local corporate office in Windhoek Strong Relationship with NAMCOR, National Oil and Gas Company NAMCOR has a carried 10% interest in the licenses to production 28