TSX-V: ENG Frontier Plays in Congo and Offshore Namibia

Transcription

1 Frontier Plays in Congo and Offshore Namibia Spring 2012

2 Disclaimer Certain disclosure in this presentation, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to the Company s operation as an oil and gas exploration company that may cause future results to differ materially from those expressed or implied by those forward-looking statements. Readers are cautioned not to place undue reliance on these statements as they involve known and unknown risks, uncertainties and other factors that may cause a hinge in assumptions and the actual outcomes and estimates may be materially different from the estimated or anticipated future results, achievements or positions expressed or implied by those forward-looking statements. The Company disclaims any intentions or obligations to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this presentation. Furthermore, any resource estimate(s) contained in this document that have been prepared in-house by the Company (including any such references to resource estimate-potential) is not compliant with National Instrument Standards of Disclosure for Oil & Gas Activities. Such resource estimate(s) contained in this document is based on management s interpretation of available data and the assumptions stated herein. Accordingly, such estimate(s) should not be relied upon. The reader is advised to obtain independent advice regarding the available data and the assumptions, and the opinions, stated herein. 2

3 EnerGulf: At a glance Dallas based management team and West Africa based technical team have track record of successful projects in West Africa Lotshi Block Democratic Republic of Congo (DRC ) Mean resource estimate: Million BOE recoverable 1 P10 aggregate (high case): Million BOE recoverable 1 7 Prospects, 4 independent plays EnerGulf Operator 90% Working Interest 2012 estimated capex (net) - $16.5 to $24.5 mm (2 to 3 wells) Block 1711 Offshore Namibia Mean resource estimate: Billion BO recoverable 2 P10 aggregate (high case): Billion BO recoverable 2 15 prospects, 3 independent plays EnerGulf interim Operator- 15+% Working Interest 2012 estimated capex (net) - $1.8 mm ($12 mm seismic program gross) 1 DeGolyer & Mac Naughton, March Netherland Sewell February

4 Directors, Advisors and Management Jeffrey L. Greenblum: Director Chairman of the Board & CEO Served as senior official in President George H.W. Bush administration at the Department of Energy and Department of Commerce. Senior executive with Diamond Fields Resources, Inc (Sold to Inco for $4B). and KP Exploration (Kidder Peabody, oil & gas subsidiary). Extensive experience in West Africa Joe Soliz: Director J.D. degree from Harvard Law School and has practiced U.S. and International Oil, Gas and Mineral Law since 1979 Tom Fetters: Director Formerly Exxon, Exploration Planning Manager CEO Consolidated Natural Gas, President of Exploration Company of Louisiana Clive Brookes: Director & CFO B. Comm. UBC. 20 years experience as founder, director and officer with public junior resource companies. Founded and developed several start up companies in resource, service and medical sectors. 4

5 Directors, Advisors and Management Dr. Joe Davis: Exploration Manager Formerly, R&D at Arco, Sr. Advisor at Maxus Energy VP Exploration at Strategic Petroleum and Hyperion Resource EnerGulf since 2006 Dr. James Edwards: Exploration Advisor Formerly Triton Oil, Responsible for Cusiana field discovery, Colombia (2 nd largest W. Hemisphere) EnerGulf since 2006 Steven L. Getz: Exploration Advisor Petroleum Explorationist: 40 years experience Geologist/Geophysicist: Allen Hoffman Exploration Co., Santos, Cities Service Discoveries approximate 2 BBOE Joseph Canales: Geophysical Advisor 30 years experience geosciences/ geophysicist: Perenco, Ocean Energy, UMIC, Conoco Experience in On shore and extensive offshore West Africa exploration Developed EnerGulf projects since 2006 William Brumbaugh: Drilling Coordinator 34 years international experience: Conoco (Regional Coordinator for West Africa/Chief Geophysicist 17 years), Mobil (Angola country manager, 5 years), Amoco, Total, Tullow, Anadarko, ExxonMobil and consultant to various governments, universities and World Bank 5

6 Directors, Advisors and Management Prof. Albert Ongendangenda: Director General- EnerGulf Congo SARL Located in Kinshasa Former Energy Advisor to President of DRC The Hon. Andimba Toivo Ya Toivo: Senior Advisor for African Affairs Former minister of Mines and Energy, Namibia Chairman of SWAPO (ruling party), Namibia Israel Hernandez: Senior Advisor for deepwater drilling, engineering and operations Deep offshore drilling manager for Mobil, BHP, ARCO Dr. Yves Neuville: Special Advisor to the Chairman and CEO Former advisor to Minister of Budget and Finance, France Professor at Sorbonne 6

7 Technical Team Experience Worked as a team for 20 years West Africa Experience: Billion barrel discovery (Zafiro) in Equatorial Guinea Development experience at Zafiro and Alba (Equatorial Guinea) Successful bid in Nigeria License Round Development project in Ivory Coast E&P projects in Angola, Cameron, Gabon, Republic of South Africa Additional Experience: Siberia, Venezuela, Colombia, Indonesia, Malaysia, Iraq USA onshore and offshore Gulf of Mexico 7

8 Share Structure & Capitalization FSE: EKS CAPITALIZATION ENG Share Price (04/12/12): FD Shares Out: FD MCap: Working Cap (Jan/12) : O&W Proceeds (1) : FD EV: $ ,139,188 $47,117,945 $1991,152 $8,752,188 $36,374,605 NOTE: (1) Proceeds calculated using the average exercise price of the options and warrants from the Aug 31, 2011 financials Issued and outstanding: 68,623,438 Warrants: 7,730,750 Options: 7,765,000 Fully diluted: 84,139,188 * As at January 2012 Last Private Placement: 26/11/10 $0.40 (8,060,500 units) One purchase warrant for two $0.65 per unit 8

9 Regional Setting: Brazil- Africa Rift Pre-Salt or Syn-Rift Time: Non-marine + salt deposition north of the Walvis Ridge Post-Rift Time: Turbidite fan deposition 9

10 Democratic Republic of Congo Lotshi Block Fiscal Terms: % Royalty* 100% costs deduction (cost oil) Population 71.7 million 11 th largest country in the world Capital - Kinshasa GDP of billion USD (2010) Country is rich in natural resources including diamonds, gold, petroleum, copper and cobalt Large UN peace presence Profit Oil split 30%/70% or 45%/55% between Government and Contractor after Cost Oil recovered* No Income tax *slides per total production up to 8m/bbls 10

11 Lotshi Block: Democratic Republic of Congo Cabinda South Block Operator: PlusPetrol 45% Lacula Oil (ROC Oil) 10% Force Petroleum 20% Sonangol 20% Cuba Petroleum 5% carry 11

12 Lotshi Block: History PSA signed in 2005 Presidential decree in 2008 Airborne magnetics and gravity survey in 2008 Boundary survey in D seismic survey in 2010 Prospective resource report completed May 2011 Mean Estimate: Million BOE recoverable 2-3 well drill program set to commence: Q Location of 1 st well 12

13 Lotshi Block: Dallas Prospect Secondary targets Chela Dolomite Loeme Salt Bucomazi Lucula Primary target ~1200 ft of closure Main Rift Fault Proposed TD of well, 2300 m 13

14 Lotshi Block: Prospect Portfolio At least 7 prospects (defined by 2-D seismic), 3 independent play ideas 450 km criss-crossed 2-D seismic (250 km originally shot Fina and 202 km shot by EnerGulf) Lucula (target reservoir in all seven prospects): Forabola well drilled in 1970 s defined the Lucula Formation as the best potential reservoir on the block Lucula is stratigraphically equivalent to the reservoir at the giant M Boundi field Bucomazi is also a primary target in one prospect Good reservoir properties in adjacent block to north Fractured basement or basement wash is a primary target in two of the prospects Produced hydrocarbons in nearby Lindu well and in nearby Cabinda The Chela Formation is a secondary target in each prospect produces from the giant Rabi-Kounga field in Gabon and smaller fields in Gabon Tested at 2000 bbl/day in a recent discovery in nearby Cabinda. 14

15 Lotshi Block: 7 Individual Prospects Mean Aggregate million bbls over 7 prospects P10 Aggregate Million bbl recoverable P90 Aggregate Million bbl recoverable (Prospective Resources per DeGolyer & MacNaughton Report 2011) 15

16 2012 Work Program Dallas Prospect 2300 M total depth Other Prospects 1500 m total depth Approximately 30 days to drill each Current pro forma $8.5 million per well Planned Spud date Q2-Q Satellite Thematic Mapper Image 16

17 Fiscal Terms: 5.0% Royalty 100% capital costs available for deductions 35% Income Tax Namibia Block 1711 Stable Democracy since independence gained in 1990 Population of 2.1 million people Capital-Windhoek BBB Country Risk Profile (The Economist, 2010) GDP of billion USD (2010) Per Capita $6,900 Significant exploration and discoveries different natural resources low political risk jurisdiction 17

18 Block 1711 Northernmost offshore Block in Namibia EnerGulf Interim Operator 15+% working interest 2.2 million acre block Three independent plays, multiple prospects 15 prospects (turbidite, syn-rift and basement) Mean resource estimate: billion BO recoverable 1 1 Netherland Sewell February

19 Block 1711: Kunene #1 Well First well in Namibe Basin Working petroleum system proven by hydrocarbon shows in Kunene #1 well Water Depth 772 m Spud April 9, m, July 19, 2008 Rig released September 7, 2008 Well Status: suspended Deep Venture drilled the Kunene #1 Well Fall

20 Block 1711 Prospect Portfolio Prospects and leads: Multiple turbidite sand prospects, including 20,000 acre Hartmann prospect Five prospects > 2 Billion/bbl mean recoverable 1 Direct hydrocarbon indicators: Amplitude anomalies (bright spots), flat spots, frequency shadows. Gas Chimneys Similar geology to offshore Luanda, Angola and Deepwater Gulf of Mexico Several syn-rift Prospects Four prospects in grabens, four in horst blocks >1 billion/bbl mean recoverable 1 Similar geology to Pre-Salt in Campos Basin Brazil and M Boundi, Upper Congo Basin 1 Netherland Sewell February

21 Etanga: 688 million bbl mean recoverable 1 Hartman: 729 million bbl mean recoverable 1 Tertiary Paleozoic Syn-rift Paleozoic Syn-rift Prospect 174 million bbl mean 1 Basement Prospect 84 million bbl mean 1 21

22 2011 Work Program Results work program Kunene #1 tied to seismic Revised age determinations Revised lithology Revised play concepts Findings: Recognition of Tertiary contourite and turbidite facies Mapped coarse-grained turbidite deposits through out block Evidence of salt and mature source rock in Syn-Rift Section. Re-mapped Syn-Rift Current Co-Venturers: New Operator- 51 to 55% available- Data Room open NAKOR (Sintez) - 10% carry (through 2012 work program and one well) PetroSA 10% EnerGulf 15 to 19% (per Ministry notification) Namcor 7% (carried) HRT 2.7% Kunene Energy 0.3% (carried) (BEE) 22

23 Summary 23

24 Other Block 1711 Lotshi 2012 Proposed Timeline Q Q Q Q Data Room for Potential JV Partners Spud 1 st well Spud 3 rd well Spud additional discovery/ delineation wells Contract and mobilize rig Spud 2 nd well 3D Seismic Data Room for Potential JV Partners Tender, Begin, Process, Map and Review 3D seismic Spud well Resource report Contract and mobilize rig Pursue other opportunities NOTE: The proposed timeline is an approximation only and subject to change 24

25 World class lead asset Lotshi block On trend with major Oil field Investment Highlights Seven seismically defined prospects identified High potential for large resource- 90% owner and Operator World class JV asset Block 1711 Interim operator with minority stake Located in an emerging Oil and Gas hot spot- Offshore Namibia Mean Resources Estimate: billion BO recoverable 1 Early stage with exponential potential for growth Experienced and diversified management and advisors Excellent in-country relationships Work Programs set for 2012 Will develop increased and consistent news flow Two three wells to be drilled in 2012 on Lotshi Block targeting upwards of 132 mm bbls Mean Prospective Resources Excellent capital structure/ minimal dilution 1 Netherland Sewell February

26 Appendix 26

27 Block 1711: Kunene #1 Well First well in Namibe Basin - spud April 2008 Water Depth 772 m TD m Well Status -suspended Petroleum system proven by hydrocarbon shows in two zones (C1-C5) Shallow show is above the Oil Window, and is evidence of migration The deep show was associated with a mature source rock that was sampled in the well Clastics, Volcanic and Carbonate Debris Upper Reservoir Target Middle Reservoir Target Synrift Lower Reservoir Target 27

28 Regional Setting: Pre-Salt Play 28

29 Regional Setting: Post-Rift Turbidite Play 29

30 Pre-Salt and Tertiary Turbidite Plays 30

31 Block 1711: 3D Seismic Program Legend Existing 2D Proposed 3D Turbidite Prospect Syn-Rift Grabens Syn-Rift Horsts Gas Chimney ~ 925 km 2 Cost ~ $12 million Target 3 rd Quarter

32 Historical Timeline through : Enters Africa (Nigeria, Namibia, Tanzania and DRC), drills another well in Texas and completes $1.4mm financing at $0.70 per unit (w/ one warrant at $1.15) 2006: Closes $1.3mm financing at $3.50 per unit (w/ one warrant at $5.50), enters into JVs on Block 1711 and drilled well in Texas 2007: Closes $5.0mm financing at $0.70 per unit (w/ one warrant at $0.90) 2008: Spuds and completes well on Block 1711, closes $8.8mm financing at $1.10 per share unit ( w/ one warrant at $1.35) 2009: Closes $2.5mm financing at $0.35 per unit (w/ one warrant at $0.50) October 27, 2010: Seismic Operations Completed on Lotshi Block September 9, 2010: ENG appointed interim operator Block 1711 November, 2011: Closes financing for $3.2mm at $0.40 per unit (w/ one warrant at $0.65) April 5, 2011: ENG Commissions resource estimate for Lotshi Block and assembles drill team May 11, 2011: ENG receives Lotshi Block prospective resources report July 2011: 1711 work program completed: Revised age determinations, revised play concepts September 2011: 1711 work program results presented to Ministry of Mines and Energy February 2012: New Prospective Resources Estimates for 1711: Mean Estimate of Billion Barrels of Oil (NSA report) March 2012: Receives second 2 year renewal period on 1711 from Minister of Mines and Energy of Namibia 32