CGX ENERGY INC. Waking the Sleeping Giants OYL.U.
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Transcript of CGX ENERGY INC. Waking the Sleeping Giants OYL.U.
CGX ENERGY INC.
Waking theSleeping Giants
OYL.U
CGX
• 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
CGX
Source:
United States Geological ServiceWorld Petroleum Supply 2000
Mean Undiscovered Conventional Oil
CGX
Regional Activity
• Trinidad• 24 tcf reserves
• Deltana Platform• 38 - 80 tcf potential• 5 new concessions• $41 mm bonuses
• Tambaredjo • OOIP 900 billion barrels• 174 billion barrels recoverable
CGX
Feb 2003 Visit to Suriname
CGX
Land Rig - Tambaredjo
• 14,000 bopd• 625 wells• Drilling 75 wells per
year
CGX
Our Concessions• 6.6 mm acres gross
• 4.5 mm acres net
• Corentyne Block (100%)
• Offshore
• Eagle
• Wishbone
• Annex
•Onshore
• Georgetown Block (25%)
CGX
Area of Overlapping Border Claims
• Guyana claims a border of N33E
• Suriname claims a border of N10E
• Inability to resolve differences has frozen exploration in the basin
CGX
Bilateral Negotiations not Progressing• Impediments to a Bilateral Solution
– “strength of feeling by the respective populations– the firm and apparently intractable positions
adopted by both sides– the history of past efforts”
• “Easier for the people of both countries to accept settlement terms, which are arrived at by processes and procedures, regarded as independent and/or which employ a judicial approach” (Rashleigh Jackson)
CGX
A Logical Resolution
• For maritime space– both countries are signatories to and have ratified
the UN Law of the Sea Convention – Where complications such as islands do not exist,
this process can be fairly expedient
• For land boundary– the OAS has a mechanism for helping member
states to solve border problems
CGX
Regional Benefit of Awakening Giant 1 Giant – Would Double Guyana’s GDP
Source: Bank of Guyana to end 1999
Assumptions
• 500 million bbls
• 50 million bbls/year
• US$ 20 per bbl
CGX
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
CGXSource:
Int’l Petroleum Encyclopedia 1998
Guyana: APEX Eng Sept 1998
Guyana’s Fiscal Regime Promotes Exploration
CGX
Work Commitment from June 1998
CGX
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
CGX
CGX
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%
CGX
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%
CGX
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
CGX
• 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%
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
• 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%
CGX
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
CGX
Annex Lead Map
Toe Thrust Line 31
Amplitude Lead with Flat event
CGX
Line 31 Toe Thrust Lead
6 km
CGX
Annex Toe Thrust Detail
On depth Flat Reflections
High amplitude package
CGX
Line 4 Amplitude Lead
Line 25 intersection
8 Km
CGX
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
CGX
Dip Line 25 Amplitude Lead
Flat Reflection
10 km
Line 4 Intersection
CGX
Detail on Flat Reflection Line 25
CGX
Onshore Block
CGX
Onshore Block with Staatsolie Nickerie Geochemical survey
CGX
Onshore Block Geochemical and Oil /Gas Shows
Onshore Oil Fairway
CGX
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
CGX
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
CGX
For more information
Please visit our website
www.cgxenergy.com
CGX Energy Inc.