CGX ENERGY INC. Waking the Sleeping Giants OYL.U.

36
CGX ENERGY INC. Waking the Sleeping Giants OYL.U

Transcript of CGX ENERGY INC. Waking the Sleeping Giants OYL.U.

Page 1: CGX ENERGY INC. Waking the Sleeping Giants OYL.U.

CGX ENERGY INC.

Waking theSleeping Giants

OYL.U

Page 2: CGX ENERGY INC. Waking the Sleeping Giants OYL.U.

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• USGS estimate 15.3 billion barrels oil 42 tcf gas

• ranked 2nd as under explored basin

• estimate 117 oil fields

• 24 elephants > 100 million barrels

• of which 6 are giants > 500 million barrels

GuyanaSuriname

Venezuela

Guyana/Suriname Basin

USGS Predict 6 Giant Oilfields

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Source:

United States Geological ServiceWorld Petroleum Supply 2000

Mean Undiscovered Conventional Oil

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Regional Activity

• Trinidad• 24 tcf reserves

• Deltana Platform• 38 - 80 tcf potential• 5 new concessions• $41 mm bonuses

• Tambaredjo • OOIP 900 billion barrels• 174 billion barrels recoverable

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Feb 2003 Visit to Suriname

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Land Rig - Tambaredjo

• 14,000 bopd• 625 wells• Drilling 75 wells per

year

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Our Concessions• 6.6 mm acres gross

• 4.5 mm acres net

• Corentyne Block (100%)

• Offshore

• Eagle

• Wishbone

• Annex

•Onshore

• Georgetown Block (25%)

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Area of Overlapping Border Claims

• Guyana claims a border of N33E

• Suriname claims a border of N10E

• Inability to resolve differences has frozen exploration in the basin

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Bilateral Negotiations not Progressing• Impediments to a Bilateral Solution

– “strength of feeling by the respective populations– the firm and apparently intractable positions

adopted by both sides– the history of past efforts”

• “Easier for the people of both countries to accept settlement terms, which are arrived at by processes and procedures, regarded as independent and/or which employ a judicial approach” (Rashleigh Jackson)

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A Logical Resolution

• For maritime space– both countries are signatories to and have ratified

the UN Law of the Sea Convention – Where complications such as islands do not exist,

this process can be fairly expedient

• For land boundary– the OAS has a mechanism for helping member

states to solve border problems

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Regional Benefit of Awakening Giant 1 Giant – Would Double Guyana’s GDP

Source: Bank of Guyana to end 1999

Assumptions

• 500 million bbls

• 50 million bbls/year

• US$ 20 per bbl

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1 Giant – Would Double Gov’t Revenue

Year 1 of production gov’t revenue ~ US$ 100 million

Year 5 of production gov’t revenue ~ US$ 400 million

Does not include tax on workers and services

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CGXSource:

Int’l Petroleum Encyclopedia 1998

Guyana: APEX Eng Sept 1998

Guyana’s Fiscal Regime Promotes Exploration

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Work Commitment from June 1998

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Our Shareholders

• OYL.U on TSXV• 52 week hi US$.40 low US$0..145• shares o/s 48.6 million, f/d 54.2 million• over 5000 shareholders

– institutions in UK, USA, France, Germany, Canada

• raised US $16 million• Sold Canadian properties for US $0.6 mm• current working capital US $1.1 million

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Technical Risk– Exploring for Turbidite Giants

• Source rock / timing – 95%• Seal – 75%• Reservoir – 50%• Structure – 75%• Oil vs gas – 75%

• Overall Probability of Success – 20%

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Canje Formation

• 2-6% TOC

• > 300 metres thick

• mature – 95% in oil window

• oil in Tambaredjo typed to Canje Source

• equivalent age to La Luna source rock in Venezuela

Source Rock & Timing – 95%

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Seal – 75%

Abary #1

• 6000’ shale seal

• 23‘ turbidite sand

• mud kick at 2000 bpd

• 34.5o API oil in mud

• Shell drilled in 1974

Eagle and Wishbone

• seismic tied to Abary

• turbidite sand thickness greater than 600 feet

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• main risk is sand quality

• over 5000’ onshelf sand in Horseshoe #1;

• Oligocene turbidite fans: Eagle and Wishbone;

• Turonian source rock: mature Canje formation over 300’ thick

• Miocene seal: over 6000’ of shale in Abary #1

Reservoir – 50%

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Structure – 75%

• Top of fan at Eagle and Wishbone marked by coincident amplitude and AVO anomalies;

• Flat spot is interpreted as oil-water contact;

• Draping in Miocene shales is observable

• Eagle anomaly is about 13 km in width and Wishbone about 7 km;

• Eagle defined on 8 other strike lines at 2 km intervals.WishboneEagle

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• Abary #1 tested oil

• buoyancy considerations over 1700 feet of structure

• Amplitude and AVO anomalies terminate simultaneously at interpreted oil-water contact and at updip pinchout on paleo-shelf;

• Eagle anomaly is over 15 km in length.

Oil vs Gas – 75%

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Turbidite Fan Targets – 20% Probability of Success

• Geological model equivalent to Campos Basin, Brazil

• Similar age to turbidite reservoirs in East Venezuela Basin and Trinidad

• “Giant” and “near-giant” size

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Annex Lead Map

Toe Thrust Line 31

Amplitude Lead with Flat event

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Line 31 Toe Thrust Lead

6 km

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Annex Toe Thrust Detail

On depth Flat Reflections

High amplitude package

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Line 4 Amplitude Lead

Line 25 intersection

8 Km

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Annex Corentyne Block

• Acquired 3800 Km of Deminex data

• Reprocess and interpret

• Wide line spacing • Identified Leads

need definition

20 km

Oil show

Well Location

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Dip Line 25 Amplitude Lead

Flat Reflection

10 km

Line 4 Intersection

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Detail on Flat Reflection Line 25

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Onshore Block

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Onshore Block with Staatsolie Nickerie Geochemical survey

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Onshore Block Geochemical and Oil /Gas Shows

Onshore Oil Fairway

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Geochemical Surveys

• GMT, Gore

• Micro seepage vs Seepage

• Quantification and maturity of source

• Aeromag, gravity

• Phase 1 Capital 0.5 MM$ US explore using various structure

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Seismic, then drilling

• Use geochemical and potential fields to define seismic targets and and follow up with drilling

• Reduce amount and costs for seismic

and focus on drill targets to reduce cycle

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CGX

For more information

Please visit our website

www.cgxenergy.com

CGX Energy Inc.