Frontier Plays in Congo and Offshore Namibia · • First well in Namibe Basin • Working...

Frontier Plays in

Congo and Offshore Namibia

TSX-V: ENG | www.energulf.com

Summer 2013

TSX-V: ENG

2 www.energulf.com Summer 2013

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 51-101 – 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.

TSX-V: ENG

Summer 2013 www.energulf.com 3

EnerGulf Overview

Democratic Republic of

Congo

•Onshore – Lotshi Block

Namibia

•Offshore - Block 1711

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• Dallas based technical team with track record of successful projects in West Africa

• Lotshi Block – Democratic Republic of Congo (DRC )

• Mean resource estimate: 313.2 Million BOE recoverable 1

- P10 aggregate (high case): 428.6 Million BOE recoverable 1

• 7 drill ready prospects, 4 independent plays

• EnerGulf Operator – 90% Working Interest

• 20 miles by road to Perinco oil terminal on coast

• Block 1711 - Offshore Namibia

• Mean resource estimate: 3.166 Billion BO recoverable 2

- P10 aggregate (high case): 6.106 Billion BO recoverable 2

• 15 prospects, 3 independent plays

• EnerGulf: 15% interest

1 DeGolyer & Mac Naughton, March 2011

2 Netherland, Sewell Feb. 2012


EnerGulf: At a Glance

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Directors, Advisors and Management

• Jeffrey L. Greenblum

Director & CEO

• Chairman of the Board

• 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).

• Extensive Experience in West Africa

• Peter Gianulis

Director

• President and Managing director of Carrelton

Asset Management.

• Formerly a Partner of Saranac Capital Management, NYC-based hedge fund.

• Director of Columbus Gold Corporation.


• Ms. Anu Dhir

Director

• Managing Director of Miniqs Limited, a private group primarily focused on developing resource projects.

• Formerly Vice President, Corporate Development and Corporate Secretary at Katanga Mining Limited.

• Non-executive director of Atlatsa Resources Corp. and Frontier Rare Earths.

• Clive Brookes

Director & CFO

• B. Comm. UBC

• 20 years experience as founder, director and

officer with public junior resource companies

• Founded and developed start up companies in

resource, service and medical sectors.

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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 Resources

• EnerGulf 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

• Joseph Canales

Geophysical Advisor

• 30 years experience

geosciences/geophysicist: Perenco,

Ocean Energy, UMIC, Conoco

• Experience in on-shore and extensive

off-shore West Africa exploration

• Developed EnerGulf Projects since 2006

• Dr. James Edwards

Explorations Advisor

• Formerly Triton Oil, responsible for

Cusiana field discovery, Colombia (2nd

largest W. Hemisphere)

• EnerGulf since 2006

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• 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 Industry,

Budget and Finance, Education, France

• Professor of Economics and Technology

at Paris Sorbonne University

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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

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Share Structure & Capitalization


Issued and outstanding: 68,698,438

Options: 7,285,000

Fully diluted: 75,983,438 * As at Sept. 7, 2013

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FSE: EKS

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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

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Democratic Republic of Congo Lotshi Block

• Population of 75.5 million (2013 est.)

• 11th largest country in the world

• Capital – Kinshasa

• GDP of $27.575 billion (2013 est.)

• Country is rich in natural resources,

including diamonds, gold, petroleum,

copper, and cobalt

• Large UN peace presence

Fiscal Terms:

• 9-12.5% Royalty *

• 100% costs deduction (cost oil)

• 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

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Lotshi Block: Democratic Republic of Congo


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Lotshi Block: History


Location of1st well

• PSA signed in 2005

• Presidential decree in 2008

• Airborne magnetics and gravity

survey in 2008

• Boundary survey in 2009

• 2D seismic survey in 2010

• Prospective resource report

completed May 2011

• Mean estimate: 313.2 Million

Barrels recoverable

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Lotshi Block: Dallas Prospect


Loeme Salt

Main Rift

Fault

Proposed TD of well, 2300 m

Chela Dolomite

Bucomazi

Lucula

Primary target ~1200 ft of

closure

Secondary targets

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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 7 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 Dolomite 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 discovery in nearby Cabinda

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Mean Aggregate – 313.2 Million bbls over 7 prospects

P10 Aggregate – 428.6 Million bbl recoverable

P90 Aggregate – 207.7 Million bbl recoverable

(Prospective Resources per DeGolyer & MacNaughton Report 2011)


Lotshi Block: Prospective Resources

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Lotshi Work Program • Dallas Prospect

• 2300 M total depth

• Other Prospects

• 1500 m total depth

• Approximately 30

days to drill each

• Current pro forma

• $6-$8.5 million per

well

Satellite Thematic Mapped Image

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Namibia Block 1711

• Stable democracy since independence

gained in 1990

• Population of 2.1 million people (2011)

• Capital – Windhoek

• BBB Country Risk Profile

• GDP of 17.7 billion USD (2013 est.)

• Significant exploration and discoveries

different natural resources

• Low political risk jurisdiction

Fiscal Terms:

• 5% Royalty

• 100% capital costs available for

deductions

• 35% income tax

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• Northernmost offshore Block in Namibia

• EnerGulf - 15% Interest in 2013 PA

• 2.2 million acre block

• Three independent plays, multiple

prospects

• 15 prospects (turbidite, syn-rift,

basement)

• Mean resource estimate: 3.166 billion

BO recoverable (Netherland Sewell,

2012)


Block 1711: Namibia

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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, 2008

• TD @ 5050 m, July 19 2008

• Rig released September 7,

2008

• Well status: suspended

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• Prospects and leads:

• Multiple turbidite sand prospects, including 20,000 acre Hartmann

prospect

• 5 prospects

• > 2 Billion/bbl mean recoverable

• 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

• 4 prospects in grabens, four in horst blocks

• >1 billion/bbl mean recoverable

• Similar geology to Pre-Salt in Campos Basin Brazil and M’Boundi, Upper Congo Basin


Block 1711 Prospect Portfolio

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2011 Work Program Results • 2010-11 work program

• Kunene #1 tied to seismic

• Revised age

determinations

• Revised lithology

• Revised play concepts

• Findings:

• Evidence of salt and mature source rock in Syn-Rift Section, remapped Syn-Rift

• Recognition of Tertiary contourite and turbidite facies

• Mapped coarse-grained turbidite deposits throughout block

• Recognition of variations in Basement tectonics from North to South

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Appendix


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• First well in Namibe Basin –

spud April 2008

• Water Depth – 772 m

• Spud – April 9, 2008

• TD - 5050 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


Block 1711: Kunene #1 Well

Upper Reservoir Target

Middle Reservoir Target Clastics, Volcanic and Carbonate Debris

Lower Reservoir Target Synrift

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Regional Setting: Pre-Salt Play


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Regional Setting: Post-Rift Turbidite Play


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Pre-Salt and Tertiary Turbidite Plays

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Block 1711: 3D Seismic Program

Existing 2D

Proposed 3D

Turbidite Prospect

Syn-Rift Prospect

Syn-Rift Horsts

Gas Chimney

• ~ 925 km2

• Cost ~ $12 million

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• 2005: 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 3.166 Billion Barrels

of Oil (NSA report)

• March 2012: Receives second 2 year renewal period on 1711 from Minister of Mines and Energy of

Namibia

• June 28, 2013: Granted 15% interest in Block 1711 under new Petroleum Agreement


Timeline Through 2013

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Investment Highlights


• World class lead asset – Lotshi Block

• On trend with major Oil field

• Seven seismically defined prospects identified

• High potential for large resource – 90% interest and Operator

• World class JV asset – Block 1711

• 15% working interest

• Located in an emerging Oil and Gas hotspot, in offshore Namibia

• Mean resource estimate of 3.166 billion BO recoverable

• Early stage with exponential growth potential

• Experienced and diversified management and advisors

• Excellent in-country relationships

• Work program

• Will develop increased and consistent news flow

• 2-3 wells to be drilled on Lotshi Block targeting upwards of 132 mm

bbls mean prospective resources

• Excellent capital structure/minimal dilution

Frontier Plays in Congo and Offshore Namibia · • First well in Namibe Basin • Working...

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