SouthWest Energy (HK) Ltd.

Transcription

1 SouthWest Energy (HK) Ltd. Investor Presentation Cape Town October 2012

2 Why Are We Searching Oil in SWE Blocks? Similar geological g setting with Yemen s producing fields Oil seeps and oil show in the surrounding area Gas field Oil field Oil seep /show African and Arabian plate: Pre-Miocene 3.5 TCF of gas and condensate discovered in Ogden basin Deep basin observed from geophysical data in SWE blocks Available data show there is active petroleum system in SWE blocks HC Discoveries, seeps and shows in Ogden African and Arabian plate: Present day 1

3 The Ogaden Basin Location Map of Ogaden Basin Geological Map of Ogaden and SWE blocks Covers over 350,000 km 2 Contains over 6,000m of Permian to Tertiary sediments Out of total 48 wells, only 18 wildcat wells have been drilled Calub Gas field contains an estimated 2.7 TCF and 38 MMbbl of condensate The basin has been subdivided into 22 blocks by the Ministry of Mines for exploration 2

4 SWE Gravity Data Quality Leap Successfully re-processed vintage Maxus seismic lines with ZPEB processing center 792 soil samples from Block 9 analyzed for hydrocarbon and encouraging results obtained 1,064 soil samples from Block 9A collected, analyzed and resulting in excellent results Maxus Gravity Map 19,000 km of FTG data acquired A series of geological and structural field trip conducted 1,487 km of full fold 2D seismic acquired, processed and integrated geological l and geophysical interpretation i completed Community development work conducted Successfully integration of all available data Number of potential prospects identified FTG Gravity Map Preparation is underway to drill 3 wells 3

5 Smoothed Microbial Oil Sampling Survey ( MOST ) Results for Blocks 9A & 9 High microbial readings observed (world class) Groupings of high values indicate structural control of compartmented reservoirs A real coverage of the large anomaly is 54km 2 4

6 SSG: Soil Sorbed Gas Analysis SSG C1/C2 cross plot indicating possible hydrocarbon source is oil probably associated with gas. If it were a 100 % biogenic source most of the samples would be within the C1/C2 ratio of >100 Gas isotopes and presence and abundance of ethane and higher light hydrocarbons indicate the most common composition of the SSG samples is of thermogenic gases originating from a light oil reservoir source Block 9A Results Hydrocarbon Composition C1/C2 C1/C3 C1/C4 C1/Σ(C1 C4) C2/C3 Oil O/G, Cond Thermal Gas Biogenic Gas >100 >>100 >> >6.0 Sorbed Soil Gas Average Block 9A Samples C1/C2 C1/C3 C1/C4 C1/Σ(C1 C4) C2/C3 Block 9 Results Hydrocarbon Composition C1/C2 C1/C3 C1/C4 C1/Σ(C1 C4) C2/C3 Oil O/G, Cond Thermal Gas Biogenic Gas >100 >>100 >> >6.0 Sorbed Soil Gas Average Block Samples C1/C2 C1/C3 C1/C4 C1/Σ(C1 C4) C2/C3 5

7 Dark Shale Source Rock Identified in SWE Block Location of the Gokti Shale (source rock) The source rock identified in Block 9A belongs to the Upper Jurassic (Urandab shale) TOC : 2.39 % Kerogen type II (oil prone) Urandab shale is proven source rock in Ogaden basin SWE believes the mid-jurassic shales are also additional potential source rocks in the basin Gokti Shale (source rock) out crop 6

8 Seismic 1,100 km 2D vintage Maxus Energy data SWE s total seismic program: 1,487 km of full fold 2D Seismic lines are 50, SWE (27) and Maxus (23), among these Dip lines (31) and Strike lines (19) 100% acquisition and processing completed Interpretation completed by one of the two independent companies 1992 Maxus Lines 2011 SWE Program Current Seismic Coverage Density SouthWest Energy Main Seismic Camp Vibrators at work Uphole Operation 7

9 Interpreted Seismic Sections SWE_03_2011 SWE_01_2011 Interpretation of all seismic lines completed Thrust due to compression observed on all dip lines Structures similar to these are proven to hold billions of barrels of oil in Brazil, Nigeria and Angola SWE_01_2011 8

10 Prospect Maps Traps in Jurassic Mid-Hamanlei limestone Traps in Triassic Adigrat Sandstone 3 Structural Types Observed Fault Nose Fault Trap 9 Fault Anticline

11 Identified Prospect - Debele Trap This prospect is identified at intersection of dip line 03 and strike lines 25 Near line : SWE_25_2011 Target layer : Adigrate, Triassic Closure area : 234.5km 2 Closure amplitude: 1,030m Drill depth : 1,940m Proposed Well Location High Geochem reading over some portion of prospect Proposed Well Location SWE03 SWE25 10

12 Identified Prospect - Dibber Trap This prospect is identified at intersection of dip line 09 and strike lines 22 Prospect Near line : SWE_09_2011 Target layer : Adigrate, Triassic) Closure area : 33.5km 2 Closure amplitude : 220m Drill depth : 3,901m Proposed well location High Geochem reading over prospect Proposed well location SWE09 SWE22 11

13 SWE 1 st Community Development Program Basic farm equipment Veterinary medicine Meeting clan leaders under a tree The hand over ceremony 12

14 SWE 2 nd Community Program: Qaho Primary School Rehabilitation School condition before rehabilitation A section of the rehabilitated t school The hand over ceremony 13

15 Future Plan Carry out further geological field work Aggressive community development work in project areas Continuing analyzing and refining all available data Three well drilling program design underway Mobilization and construction of drilling camp Commence drilling Conduct different wireline logging and testing operations 14

16 Summary Paleo-Geographic reconstruction of Africa-Arabia plate shows similar basin formation history between Yemen s producing fields and SWE s blocks Available data show there is active petroleum system in SWE s blocks Discovery of dark shale/marl in SWE block (TOC 2.39%) increase success chance and is proof that source rock exists deep structural traps and 7 shallow stratrigraphic traps are identified Active community development work underway 15

17 Gambella Basin

18 Gambella Basin Gambella basin Located in Western Ethiopia PSA Signed on January 9 th, year exploration period 2 successive extension (4years) Covers an area of 17,000 km 2 Enough sedimentary thickness from gravity 20,000ft (6km) Extension of the Melut Basin of Sudan Mltb Melut basin has several proved oil and gas discoveries Geological and geophysical operations are done by previous operator 16

19 Some of the Available Data in Gambella Basin PETRONAS Seismic coverage: 1500km of 2D High Pass Isostatic Gravity Map overlain by seismic lines NW-SE tending graben observed from gravity map Good seismic coverage over lows and highs NW-SE oriented fault bounded half grabens 17

20 Spectral Analysis Melut Basin Gambella Basin Anomalies with similar il spectral characteristic ti Microbial Anomaly map shows gas content with producing fields in Melut Presence of ethane in the soil gases suggests that gas is not entirely of a biogenic origin and a thermogenic component is present Relative wetness of gas may indicate it is oil associated Melut basin oils tend to be low gas 18

21 Reasons Why PETRONAS Did Not Succeed Could not better image reflectors beneath the basalt Wells abandoned at a depth of about 3,500m but source rock is deeper PETRONAS didn t exploit the power of FTG The location of the well is close to a vertical fault plane and this should have been avoided for drilling 19

22 Future Plan Seismic re-processing and re-interpretation Re-evaluation of existing data FTG (16k points) will be acquired Seismic inversion to predict sand distribution Seismic attributes study for hydrocarbon detection Geological study of traps, facies and oil potential evaluation 20

23 Conclusion Presence of low concentration of gaseous hydrocarbons is indicated Data suggests gases may be liquid associated Muglad and Melut basins are generally low in gas. Therefore, indication of low gas in the surface is promising 21