SIMON POTTER CHIEF EXECUTIVE OFFICER March/April Florida. Bahamas. Cuba

Transcription

1 SIMON POTTER CHIEF EXECUTIVE OFFICER March/April 2014 Florida Bahamas Cuba

2 Disclaimer This presentation ( Presentation ) has been prepared by Bahamas Petroleum Company plc (the Company ) solely for its use at informational meetings with its shareholders and is being delivered for information purposes only to a limited number of persons. This Presentation should not be considered as the giving of investment advice by the Company or any of its shareholders, officers or advisers. If you are in any doubt about the contents of this Presentation or the action you should take, you should consult an independent adviser authorised to render such advice. This Presentation has not been independently verified and is subject to material updating, revision and further amendments without notice. The Presentation does not purport to contain all information that a member of the Company may wish receive for purposes of assessment or valuation of his respective investment and is not intended to form the basis of any investment decision. 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3 Bahamas Foreland Basin Exploration Opportunity Southern License Area: Proven oil systems in region FLORIDA Multiple play-types, untested in offset wells Structural: robust 4-way dip closures Stratigraphic: regional analogues BAHAMAS Multiple billion barrel potential Licences over 3 million acres CUBA +3,000km 2 3D, modern and historic 2D Gravity and magnetics Calibrated well logs with cores, cuttings and thin sections Licences renewed 2013; Obligation to commence drilling April 2015 Excellent fiscal regime leverages commercial upside and economic field size 100% BPC Application 100% BPC Licence

4 Regional Prospectivity and History A west A east Proven petroleum systems in region (S. Florida & N. Cuban) No valid traps drilled at jack-up driven locations in Bahamas Evidence of hydrocarbons actively migrating in Bahamas CORE , CORE 17, , DST 17, CORE 13, , DST 16, Numerous live HC shows Shallow Bore Wells; thermogenic gases, black shales (high TOC), heavy HC content, evidence of deeper mature source 826 #1 (Florida - Sunniland) Cretaceous core live oil shows, DST recovered sweet gas & dark brown gassy oil Core DST

5 Petroleum System Elements Multiple potential sources within thick, extensive, deep-water hypersaline basin and mega-bank sequences. Within oil window generation from Late Cretaceous to Recent Facilitation of HC migration by faults and fractures associated with thrusted and riftfaulted structural terrain. Multiple, stacked, proven carbonate reservoirs. Upside fracture and flow potential with effective anhydrite, micrite and mudstone seals through whole section 4 Working Petroleum System Structural & stratigraphic traps with working analogues. Preserved at depth, open to large, simple fetch area 4

6 Total losses Depth above top Jurassic (ft) Depth above top Jurassic (ft) Depth above top Jurassic (ft) Depth above top Jurassic (ft) Source Rock - Quality * Hydrogen Index by stratigraphy Hydrogen Index by stratigraphy Cay Sal-1 core Great Isaac-1 core Great Isaac-1 cutting Hydrogen Index Hydrogen Index * The Chevron results are the only results based on a complete sample set Offset wells not optimally located to target source rock Potential source rock quality at base of wells (TOC). Bitumen, organic material and oil stains from depths of ~10,000 (Cay Sal-1, 13,000 ) either; possible source rock or evidence of oil migration Hydrogen Indices > 400, good to excellent kerogen quality, better than expected for relatively lean rocks, type II kerogen. Additional source rocks have been identified within shallow wells (Cretaceous) and Cuba (Early Jurassic) Hydrogen Index Hydrogen Index 5

7 Magnetic intensity maps outline presence of largest basins Great Isaac-1 Several large basins can be identified coincident with proven source kitchens. Presence of the large basin underlying the Santaren Channel is consistent with a thicker post Triassic section. Cay Sal-1 Cuba SR Doubloon Saxon-1 The Santaren basin extends into the Cuba basin to the south suggests access to a larger kitchen source Magnetic intensity maps outline presence of largest basins SR = Santaren Ridge 6

8 Cretaceous Reservoirs Hypersaline Basin & Platform Semi-restricted Platform Open Platform Leached rhombs and intercrystalline and intrarhomb voids. intraclast fossil fragment miliolid lime grainstone (left) and packstone (right). Well rounded, well sorted, high energy miliolid mollusc oolite lime grainstone, excellent intergranular and moldic (mesovuggy) Dolomite intercrystalline porosity with good permeability. Sucrosic & microsucrosic dolomite WS, ghost clasts are peloids, coated grains, &/or ooids. Fracture porosity in breccia dolomitized mudstone-wackestone Slightly anhydritic, calcitic dolomite. Solution-enhanced porosity development in fractured breccias) Algal bound stones with laminar and irregular fenestral fabrics. 7

9 Reservoirs/Seals Conceptual facies classifications from 3D seismic and AVO inversion Objectives Generate an approximate high-low porosity and seal distributions within pilot 3D seismic area using the Doubloon Saxton-1 well Fractured carbonate Shale Anhydrite More porous carbonate Less porous carbonate Badhole New ires LithoFacies from ND-xplot Original DF Lithofaces from Rhomcma Inverted to; AI, Absolute Density Vp/Vs ratio Results Similar facies (anhydrite/porous carbonates) tied at base of DS1 well. Higher density contrast suggest either carbonates are more porous or other fluids? Indications of anhydrite within Upper Aptian (shallow hypersaline facies?) Potential reservoir/seal facies appear laterally extensive Interpreted Late Albian mudstone seal, fractured carbonates immediately below. 8

10 Seismic Facies Albian Deep Water Seal Facies Trend A Fold B Deep water marine mudstone High amplitude continuous reflector Further water deepening break-up mega-platform Provides quality seal interval over structure Interval not present in previously drilled wells Cuban Border Trend A Fold B Fold C Nassau 270 kms 9

11 Structure Definition and Scale B structure extends from 2000 to 22,000 and covers greater than 100,000 acres Structure preserved at depth thru Aptian with significant roll-over Pronounced dip to the south-west; broad potential fetch area and migration pathway from beneath Cuban ramp Fold C 3D Seismic Fold B Fold B Trend A Top Vertical Closure Area Fold B 700m 750m 423 km 2 (104,526 acres) Bahamas foreland basin Top Vertical Closure Area Fold C 950m 350m 63 km 2 (15,814 acres) 10 Kms Competent Persons Report Multiple billion bbl potential Risking 35 23% Folds B/C Residual risk only reduced by drilling

12 Section: Folds B - Highlighting Facies Interpretation SW Upper Cretaceous Platform Upper Albian Platform Fold B Tertiary Pelagics Upper Cretaceous Pelagics Drowning Surface Mudstone NE Lower Albian Platform/Ramp Upper Aptian Platform Lower Aptian Platform LKUJr Anhydrite - Dolomite LK/Ujr Anhydrite? Callovian Extensive stacked hypersaline basin and platform carbonates reservoirs Anhydrites, Micrites and Mudstone Seals N 11

13 Top Albian Depth Aptian Megabank/reef edge

14 23 30'0"N 23 20'0"N 23 10'0"N 23 25'0"N 23 15'0"N 22 50'0"N 22 55'0"N 23 0'0"N 23 5'0"N Evidence of Vertical Anomalies 23 30'0"N 23 25'0"N 23 20'0"N 23 15'0"N 23 10'0"N 23 5'0"N 23 0'0"N 22 55'0"N 22 50'0"N Diameter: 500 m Depth: 55 m Diameter: 1,000 m Depth: 10 m 79 30'0"W 79 20'0"W 79 10'0"W 79 5'0"W 79 0'0"W 78 55'0"W 78 45'0"W 78 35'0"W 78 25'0"W Diameter: 1,600 m Diameter: 900 m 79 30'0"W 79 25'0"W 79 20'0"W 79 15'0"W 79 10'0"W 79 5'0"W 79 0'0"W 78 55'0"W 78 50'0"W 78 45'0"W 78 40'0"W 78 35'0"W 78 30'0"W 78 25'0"W Shallower anomalies Evidence of vertical anomalies (1314); seafloor pock marks and gas chimneys. Wide distribution of the anomalies suggest actively migration HC throughout the region. VA s concentrated between the Albian and MCU, most prominently on the Cenomanian back reef. Note lack of VA s above the late Albian to MCU thick peligic shale indicates effectively seals underlying stratigraphy. VA s not associated with structural crests of B or C VA s are rare at or below the Aptian due to the presence of effective seals at this level. 13

15 Prospect Locations and Extent B North Dolomite B North Pre-MCU Cenomanian Forereef B Central Albian Reef C Dolomite C Pre-MCU Fold C B South Dolomite Cenomanian Reef Trend A B South Pre-MCU 10 Kms Cenomanian Backreef B South Albian Reef Fold B Aptian Megabank sequence prospects extend essentially continually between defined lower Dolomite traps up to Pre-MCU. 14

16 Prospect Locations and Extent Trend A Cenomanian Forereef Fold B North Fold C Trend A - Cenomanian Reef MCU Albian Albian Reef Albian Megabank Aptian First Anhydrite Anhydrite/Dolomite Fold B South Trend A - Cenomanian Backreef Fold C Trend A 10 Kms Fold B 15

17 Potential Benefits, Development and Returns 1 year to plan, 120 days to drill ADTI FEED Study completed Anticipated well cost: $120 million 3D Seismic data to safely plan well Water depth at location: 1,500 feet Planned well depth: 22,500 feet Drilling rig advanced safety mechanisms No Government Participation No Corporation/Income Tax. No CGT 30 year Production Licence Royalty Rate %: 12½% - 25% No Financial risk/cost Long term source of revenues Diversification of the economy Training and Employment Local Supply contracts Costs of Fuel and Power 16

18 Environment Impact Assessment Regulations and Standards International best practices embodied in approved EIA No sensitive environments in immediate vicinity of first proposed drill site Equipment and Procedures Low pressure environment Performance based systems Learnings applied Spill Response Spill simulation completed Response Plan in-place Tier III Responder contracted Environmental Sensitivity Maps Agreed Safe Exploratory Drilling

19 Funding Sources and Uses Sources Uses (Estimated 1/1/11 to 31/12/13) Current sources US$m Cash as at 1/1/ Cash Raised TOTAL SOURCES in the 6 months to 30/6/11, net of raising costs 2 Additional sources expected from farm-in Operating expenditures US$m 2D Seismic 2011/ D Seismic 34.4 Other Technical Projects 2011/ Licence Related Costs 2011/ Other Technical Projects Drilling programme to be funded from new sources (Farm-in) Licence expenditure obligations met and exceeded Net cash balance end 2013 assuming all estimated uses ~ US$15 million before new sources Sub-Total 44.4 Corporate Costs 2011/ Corporate Costs TOTAL USES Including preparation for drilling 2 Personnel, BISX Listing and Legal costs Note: BPC is debt free 18

20 Value Realisation Government Exploration Moratorium/Referendum Removed Post GoM world Licence clarity Deal is a deal active support Renewed term/mandate Obligation to drill (2015) Licence Boundaries Enhanced & modernised regulations Welcomed by company Implementation and monitoring Company Normal process Engage communities Focused on benefits Regulations Condition precedent; EIA accommodates Critical path? Active farmout process Companies from all major exploration hotspots Active and ongoing Listing 19

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23 Regional Setting Anticipated BPC location Suspended May 2,000m Anticipated well locations Previously drilled wells Cuba drilled holes 22

24 Well Target Comparison: Cuba Evaporite Basin / Bahamas Large Gap 2,000m Shallower water but thicker, hard overburden Projected well Similar Projected well Target Zone