North Africa Summit THE ROLE OF INDEPENDENTS IN UNLOCKING. POTENTIAL» Fifth level IN FULL PARTNERSHIP WITH NOC S. Vienna

Transcription

1 THE ROLE OF INDEPENDENTS IN UNLOCKING POTENTIAL IN FULL PARTNERSHIP WITH NOC S North Africa Summit Nov 8th, 2012 Vienna

2 Our Global Portfolio Ireland - Atlantic Margin 8 Licences 1,008,436 acres Prospective Resource: 8+ TCF Celtic Sea Fourth France level Atlantic Ocean» 10 Applications Fifth level 2,399,884 acres Germany 1 License 15,888 acres Baltic Sea Poland 19 Concessions 2,835,169 acres Prospective Resource: 40+ TCF Spain 10 Licenses 1,973,875 acres Albania 1 Licence 1,039,818 acres Prospective Resource: 6+ TCF Mediterranean Sea Morocco 5 Licences 13,341,940 acres Prospective Resource: 20+ TCF Oil Shale: >10 billion barrels In Morocco since 2007 Note: Resources are Company s best estimate mean P50 unrisked Prospective Resources; areas are gross

3 Why Morocco? Domestic Market: 33 million population Click to edit Key energy Master users: Residential, text styles Click to edit Phosphate Master Mines, Infrastructure text styles Energy bill of US$10.7 billion in 2011 One of Africa s largest energy consumers Development, Auto, Textiles, Agriculture Fourth gas level Undersupplied: Africa s 2 nd largest importer Morocco imports 99% of oil, 91% of No stranded reserves Underexplored: Current well density of 0.04 wells/100km 2 vs. global average of 8 wells/100km 2 Growing interest: 9 exploration permits in 1997, 115 in 2011 Political Stability: Constitutional Monarchy Democratically elected government Only North African political regime unaffected by Arab Spring Low political & security risk forecast ** Rapid Growth: 4.4% CAGR GDP growth ( ) Foreign investment of US$45 billion in 2011, 4 times higher than in 2001 Energy demand +54% over last 10 years Fitch rating: BBB-, Outlook: Positive Morocco is one of the most fiscally favourable countries worldwide to explore Venezuela Indonesia Norway Egypt Libya UK Argentina Canada Morocco 80 Oil (MMboe) 60 0% 20% 40% 60% 80% 100% Government take (%) Morocco Oil and Gas Consumption Growth Annual Consumption 30 Natural Gas (bcf) 15 Sources: IEA, CIA, ONHYM, Wood Mackenzie **- Source: Control Risks

4 Acreage Evolution in Morocco since 2000

5 Morocco licence terms & fiscal regime Morocco is one of the last remaining underexplored regions of North Africa Proven Click petroleum to edit Master systems text with styles step-change resource potential Favorable fiscal terms: State Participation (ONHYM) upon production of up to 25% Onshore and less than 200m water depth 10% royalty on oil production (first 300,000 tons of production exempt) 5% royalty on gas production (first 300 million cubic meters exempt) Offshore; greater than 200m water depth 7% royalty on oil production (first 500,000 tons of production exempt) 3.5% royalty on gas production (first 500 million cubic meters exempt) License term: 8 years 30% corporation tax - after a 10 year production holiday

6 Number of wells Zag & Tindouf Basin: Drilling History Algeria gas Algeria gas shows Algeria oil shows Algeria dry Morocco gas Morocco gas shows Morocco dry Year

7 Morocco Seismic 2011 NovaSeis was established in 2011 by San Leon Energy to acquire its onshore seismic data at significantly reduced costs with the flexibility to optimize acquisition parameters in difficult data areas while reducing the surface footprint. The Crew has completed the acquisition of more than 2,280 km of 2D seismic across SLE s Tarfaya and Zag Licenses in Morocco

8 NovaSeis Acquired 2D at an average of 15km per Day The Crew is equipped with: Cableless OYO Geospace Seismic Recorder (GSR) Click system to edit Master text styles 4,200 GSR/battery units full 2D and 3D capability 5 Sercel NOMAD 65 vibrators sources (65,000 lbs) Full surveying Fourth capabilities level In-field processing QC with Vista software GSR Unit with Battery and Geophone string attached NovaSeis GSR Downloading Rack

9 Legacy Data Integration

10 First Modern Seismic Acquired in Area

11 New Prospects: Middle Devonian Reefs - Reefoid feature on seismic - Appears to be Devonian based on preliminary well to seismic tie - Middle Devonian reefs are outcroping further SW Click to edit Master text ~180m styles - Decent size (>200Km2) - Shallow depth (~2000m) - Silurian and Second Devonian source level rocks are in the HC generation window Third nearby level - Working analogues Third (Golden level Spike 213 Mmbbls recovered oil, Reinecke Fourth level 85 Mmbbls recovered oil) E-W cross section through Golden Spike analog

12 Middle Devonian Reef Generalized cross section of Givetian sequence (J. Wendt, 2006) extracted Reef amplitude drawn on top of Silurian isopach contour map Orange polygons are structural plays Outcroping Devonian reefs Givetian reefs on satelite image (J. Wendt, 2006)

13 2 Contiguous Licences Offshore Morocco Deepwater Play has only been tested by 3 wells Click to edit including Master Rak-1 text styles Foum Draa Untested Cretaceous Tertiary turbidite play trapped against/over salt diapir Structures Untested Cretaceous Tertiary stratigrapahic turbidite channel play Proven Jurassic shelf-edge carbonate stratigraphic/strucutural play Sidi Moussa Cap Juby Analogue 2,377 BOPD Mature Jurassic Kitchen charging overlying reservoirs

14 2012 Offshore Successful Farmouts Click to Click to edit 25% edit Master text styles Master text 42.5% styles 25% 7.5% Before Sidi Foum Moussa Draa & Sidi Moussa Foum Licences Draa - 60% Net equity interest* - 1 Exploration well carry up to $50 million - Contribution to Past Costs - Resulting in 80% Interest Dilution for Independents Extension October % Net equity interest* - 1 Exploration well carry up to $60 million - Contribution to Past Costs - Resulting in 66.7% Interest Dilution for Independents * Onhym interest remains at 25% San Leon Energy Serica Energy Longreach Oil & Gas

15 Oil Shale: San Leon EOT cooperation in Morocco Enefit 280 plant demonstrates advances achieved Higher capacity of 280 tons per hour Availability > 90% - Higher oil yields & retort gas Higher efficiency waste heat boiler & ash cooler High yields 103% against Fischer No external fuel need, energy self-sufficient Low emission (made to comply with EU regulations) A Shell lead oil shale retorting project established the technical suitability of the shale for retorting and estimated potential resources could be material based on the yield of 78 litres of oil per ton of rock. By products such as retort gas and electricity could further enhance economics.

16 Success Factors Role of a Junior Click Hire a to good edit Master geologist! text styles Move Second in Early level Tell a plausible story READ THE DATA Dedicate adequate resources, INVEST and Take RISK Create Drill Ready PROSPECTS Add Value to the Assets Be reasonable in your Farmout Expectations Role of Government Know your end goals Invest in the right tools Be a Welcoming PARTNER SHARE THE DATA Provide Good Fiscal terms Follow up the Execution of Work Programs Be Critical but Supportive Work toward your end goals Make Farmouts POSSIBLE

17 Thank You for your Attention!