(TSX-V: OYL) March Update

Transcription

1 (TSX-V: OYL) March Update

2 Forward Looking Statements This presentation contains certain forward-looking statements. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential exploration results, hydrocarbons, resources and reserves, and the future plans and objectives of CGX Energy Inc. are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from CGX's expectations are disclosed elsewhere in documents that are available to the public at 2

3 Key Management Overview Kerry Sully President, CEO and Director James Fairbairn, C.A., ICD.D CFO John Clarke VP, Business Development 40 years experience Former CEO and Director of Ranchmen s Resources Reserve assessments include Iran 1975 Financial modeling Texaco Canada B.Sc. Chemical Engineering, University of Saskatchewan 20 years experience with publicly-traded companies Officer of Claim Post Resources and Treasury Metals Director Canada Lithium and Schyan Exploration B.A. University of Western Ontario, Chartered Accountant 35 years experience, E&P with Texaco and Candax; Oil and Gas Analyst with Deutsche Bank and Octagon B.Sc. Physics, Birmingham University M.Sc. Imperial College B.A. English, University of Calgary Warren Workman VP, Exploration 35 years experience Previously with Amoco, Unocal and Ranchmen s B.Sc. Geology, Queen s University, Ontario 3

4 Executive Summary Independent E&P focused on emerging Equatorial Atlantic Margin Play C$200mm/ 120mm market capitalization on TSX-V mm shares outstanding; fully diluted US$18.5 million cash balance as of September 30, 2009 Significant acreage position in a highly prospective basin 2.8 billion barrels P50 prospective resource for the Eagle well 8.6 million gross acres (7.0 million net acres) in Guyana Significant 2D/3D seismic undertaken to date Analogous to West African Ghana (Jubilee, Tweneboa) and Sierra Leone (Venus) Exxon, Total, Shell, Tullow, Repsol, Murphy, Noble and Inpex all active in the basin Material operational and corporate developments over the next four quarters April 2010 target to finalize JV partner May 2010 target to sign rig contract Q target to start two well exploration program 4

5 Equatorial Atlantic Margin Play The Atlantic Margin at Turonian - Campanian Time (Mid Cretaceous) Venus - Campanian (Anadarko, Repsol, Woodside and Tullow) Jubilee and Tweneboa - Turonian (Kosmos, Anadarko, Tullow) Guyana/Suriname Basin Mirror image depositional setting and geological timing to recent world class West African discoveries Guyana CENOMANIAN SOURCE ROCK SurinameFrench Guiana Sierra Leone Liberia Cote d Ivoi re Ghana Cross-section Offshore Ghana Turonian, Campanian, Eocene CGX Prospects Source : Anadarko 5

6 Proven Hydrocarbon System But Offshore Guyana Under-Explored 1958 to 2007 only 21,000 km 2D and 11 wells Abary Shell 1975 In-well blow out 37 API oil in mud Tambaredjo and Calcutta > 1.0 billion barrels OOIP Outline of CGX Licences 6

7 Guyana Suriname Basin Preparing to Drill Guyana CGX 3D Seismic done 1 well announced 9 months Repsol, YPF, Tullow, CGX 3D seismic done 1 well announced 15 months Esso, Shell 2D seismic done Suriname Inpex 3D seismic interpreting Murphy 3D seismic done 2 well announced 9 months French Guiana Tullow, Shell, Total 3D seismic processing 1 well announced 12 months 7

8 License Summary License Summary 8.6mm acres gross, 7.0mm acres net Focus on two key licenses: Corentyne 100% CGX Expires June sq km 3D done 1 well Q Georgetown 25% CGX Expires November 2012 Repsol 15%, YPF 30%, Tullow 30% 1,839 sq km 3D done 1 well H

9 World Class Joint Venture Opportunity Managed by Jefferies & Company Virtual Data Room 2,345 km 2 of new 3D seismic in physical data room Proposals requested by April 2010 Farmout consideration on 100% Corentyne PPL include combinations of: Contribution to US$47 mm sunk costs Promote on 6,200 m - $70 mm well - drilling expected Q Carry on appraisal well drilling Additional opportunity exists to participate in the Repsol/YPF/Tullow/CGX Georgetown PPL (25% WI) 9

10 CGX Prospect /Lead Map Primary Prospects Turonian Turbidite Secondary Prospect Eocene Sand Leads Maastrichtian Sand Campanian Turbidite Albian / Aptian Reef 10

11 Eagle Well to Turonian will also test Eocene Prospect and Maastrichtian and Campanian Leads Scale 5 km Scheduled for Q TD 21,000 feet Water depth 260 feet 18.1 km High Pressure/ High Temperature Cost ~ US$70 million High Estimate Prospect Footprints Overlap 12.6 km Eagle Well: : Assessed Target Area km2 Horizon Low Estimate Best Estimate High Estimate Eocene Upper Turonian Lower Turonian

12 Prospective Resource Summary Only Corentyne block assessed by third party reserve engineers Management has identified significant leads and resources in broader portfolio Source: Gustavson Associates March

13 3 Prospects and 5 Leads on Corentyne PPL Source: Gustavson Associates March

14 Depositional Model for Turonian Berbice Canyon - 25 km across km deep Richards, Bating, Bowman,

15 Corentyne Incised Valley Funnels Sands on to Slope Eagle Location Shelf Margin Carbonates Sand Rich Shelf Apron Cond uit fo Sand r san d int o bas Deposits in Co rentyne I ncised Va lley High Qua lity Sour ce Rock Albian Sh elf Margin Carbonat ± B!i MAH#2!i Jur ass ic MAH#1 JA G-1 ABARY#1!#!h EG-1!#!ª HOR SES HOE CO-1 A!h 25 km Syn es ~6,200m rift Se dim en ts Oli Ma goce ne Eocrl Ch e ne an ne San ls ds Ma ast rich tian San ds Eag le C am pan Eag ia le T uron n ian 15

16 Positive AVO in Turonian - (Indicative of Hydrocarbon Charge) A B Georgetown A Corentyne Georgetown Corentyne Eagle-1 Approx. outline of Eagle sea floor fan complex B Eagle Turonian Fan Complex ~250m Gross Thickness 10 km 10 km TopAMP-Eagle-Case2.35-TopAmp-Basal Sequence Hydrocarbon fluid indications from AVO and inversion work 16

17 Leading Edge Technologies Used 3D solid-state streamer acquisition by Fugro 2,344 sq km PSTM by CGGVeritas and PGS PSDM TTI by CGGVeritas AVO and Inversion using Rock Solid Images PSTM and Interval Velocity Using Data Modeling Inc. Attributes by ffa on Georgetown GMI pore pressure prediction / wellbore stability 17

18 Work Programme Two wells planned for late 2010 / early 2011 Rig tender to launch in March 2010 Tendering in consortium with other regional operators Well costs estimated at US$70mm per well Finalize JV Rig Tender Drill Corentyne Drill Georgetown Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 18

19 Other Directors and Officers Denis Clement John Cullen Edris K. Dookie Adrian Jackson Oliver Lennox-King Charlotte May Director 27+ years experience in corporate finance, law and management Director of a number of public and private resource companies Co-founder and Director 27+ years experience Co-founder and Director of Candax Energy Inc. and Southeast Asia Mining Corp. Co-founder CGX Energy Executive VP of CGX Resources and President of ON Energy Independent Director Equity Analyst with Investec Asset Management based in London, UK Independent Director Chairman of the Board of Fronteer Development and Aurora Energy Resources Investor Relations 20+ years experience in the institutional brokerage industry focused on junior oil and gas companies 19

20 (TSX-V: OYL) March 2010