Giant Gas Opportunities within Block M-15 CFG s Offshore Capabilities and Strategy January, 2016
Myanmar Offshore Block Map M-15 is located in proven oil & gas enriched zone 1) Most of the Myanmar offshore blocks are taken by the supermajors and majors. 2) M-15 is located in proven oil & gas enriched zone with multiple possible gas fields and prospects. Myanmar discovered offshore gas fields M-15 CFG Proven oil & gas enriched zone 8
Myanmar Offshore Basins In this Region 9
Block M-15 - Oil and Gas Prospectivity MULTIPLE TARGETS Water depths on the block drop from 30 meters in the east to about 1600 meters in the west. Multiple play types are present across the block with multi-tcf prospect. Block MD5 -Shell Block M15 - CFG 10
The Kitchen: Large Volumes of Gas Have Been Generated on Block M15 Basin Modelling demonstrates that the rich Oligocene source rock kitchen on the western part of Block M-15 has generated 80 100 BCF per square. kilometer, more than sufficient to source the multi-tcf traps on Block M-15. Deep water prospects directly overlie source kitchen areas, in shelf areas, migration pathways lead directly to prospect locations. Volume of Gas Generated per Square Kilometer showing Prospect Outlines 21
Prospect 1 Deep Water Turbidite Fan Complex Estimated P50 prospective resources likely significantly higher than the discovered deep water turbidite fan gas field Shwe/Shwe Phyu gas field Block MD5 -Shell Block M15 -CFG Turbidite Fan Complexes are the Play of the Decade and have spurred the participation of majors and super-majors in Myanmar Offshore. Multi-TCF fields are likely. Block M-15 Turbidite Fan Complexes extend onto the adjacent block held by Shell. GCA Estimated P50 prospective resources is 6.7 TCF,nearly twice the Shwe/Shwe Phyu gas field. A Water Depth: ~1700m Prospect Depth: ~3500m Estimated Porosity:26~30% B 5KM 22
Regional Depth Structure Map indicates Prospect 1 likely sits in a Ponded System Top Lower Miocene Depth Structure Map M15-B1 Prospect 1 Strike slip Shan fault alone the shelf edge Galon-1 Inside use only 6
Selected three seismic lines show Propsect1 Basin Floor Fan A A A A B C B C B B C C Shwe BFF
Basin Floor Fan highlighted by high amplitude, variable continuity seismic characters A A A A B C B C B B C C Shwe BFF
Prospect 6 - Carbonate Buildup Analogous to the biggest carbonate gas field in Myanmar Yadana Field Large carbonate buildup is analogous to the biggest carbonate gas field in Myanmar - Yadana field, with very similar geological settings and seismic features. Cross cutting channels are apparent, separating the downdip areas characterized by flatzones from the updip portion tested by the well M15-B1. Very high porosity and permeability is expected with attendant high estimated P50 recoverable resources of 5.5 TCF. 26
Prospect 6 - Carbonate Buildup East to West Profile Flat Zone Inside use only 27
Prospect 6 is well defined in SN direction North Prospect 6 Time(s) Gas migration from the thick Oligocene sediments will enter the carbonate bank Top Carbonate Base Carbonate 10Km NS-50-2 Corrected to one way water travel time Inside use only 11
Gas chimney suggests gas charged prospect 6 Gas chimney West Time(s) Prospect 6 Gas migration from the thick Oligocene sediments will enter the carbonate bank Gas chimney Top Carbonate Base Carbonate 10Km Corrected to one way water travel time M1570R Inside use only 12
Prospect 6 - Carbonate Buildup South to North Profile Analogous to the biggest carbonate gas field in Myanmar Yadana Field Water depth: ~280m / Top carbonate depth: ~1080m / Estimated Porosity :25-30% Bright spots Seal: Mid-Miocene clay dominant shale Source: ample Oligocene source rock 10km Volcanic basement South North Inside use only 28
Yadana gas field Large carbonate buildup on Block M-15 is analogous to the biggest carbonate gas field in Myanmar - Yadana field in the same region, with very similar geological settings and seismic features. Water depth: 32-45M Top carbonate depth: ~1200M Recoverable reserves: ~6.5 TCF Porosity: 27-31% Permeability: ~50-300 MD Bright spots Seal: Mid-Miocene Clay dominant shale Source: ample Oligocene source rock Volcanic basement 29
Prospect 4 - Miocene Pinchout AVO supported AVO amplitudes showing interpreted gas-charged area with seismic profile A B Miocene sandstones are truncated adjacent to a large shelf-bounding fault. A prominent AVO (Amplitude vs Offset) anomaly suggests that the sandstone package is gas-charged. Estimated P50 gas resources of 1.5 TCF. Stacked sands may increase prospective resources significantly. A B 30
Prospect 4 Intra Mid-Miocene Depth and Amplitude Map Lead 4 Intra Mid-Miocene Depth and Amplitude Map 31
Prospect 4 Seismic Section 32
Block M-15 - Oil and Gas Prospectivity Numerous Multi-TCF Prospects on Block M-15 from internal CFG report Prospect Number Prospect Name P10 BCF P50 BCF P90 BCF 1 Deep Water Turbidite Basin Fan 17323 10055 5736 3 Oligocene Horst Block 1171 645 376 4 Miocene Sandstone Pinchout AVO supported 8300 3400 1100 5 Yetagun - Like Basement High 110 75 35 6 Carbonate Buildup 20406 9769 4490 The Leads: Lead # Name and Description 2 Deepwater Turbidite lacks seismic control 3a Oligocene Horst Block gravity defined, may be large in size 7 Potential Oligocene oil prone basins defined by satellite gravity 11
Gaffney, Cline & Associates* Evaluation Results Prospect/Lead Resources (BSCF) P90 P50 P10 1 1,650 6,678 14,633 6 2,916 5,540 10,089 4 457 1,491 4,241 *Gaffney, Cline & Associates is a very well respected international company that specializes in international reservoir appraisal, field development planning and exploration projects. 12
Budget for 2016-2017 February 2016 - Seismic Acquisition $20 M September 2016 Signature Bonus - $5.1 M October 2016 Bank Guarantee - $2 M EIA November 2016 - $250,000 February 2017 Drill First Well - $25 M (1) Calculated assuming maximum production rate in each tranche applicable 15
Company Value Milestones Production Platform Drill 3D Seismic Tender PSC Signed IEE Year 03, 2015 06, 2015 11, 2015 2016 2017 2019-2021 21 18
Directors and Management Songning Shen Chairman & Managing Director - Mr. Shen is a Canadian Professional Geologist residing in Calgary. Mr. Shen holds an M.Sc. from the Norwegian University of Science and Technology. Mr. Shen is recognized as being one of the discovers of China s biggest offshore oilfield, the SZ36-1 field. Mr. Shen was a Co-founder, Co-Chairman and Director of Sunshine Oilsands Ltd., a company listed on the Hong Kong Stock Exchange and the Toronto Stock Exchange, which under Mr. Shen s leadership grew to over 1.0 million acres of oilsands leases with a resource base of 4.2 billion barrels. Kevin Flaherty - Director - Mr. Flaherty holds a MBA, Finance and resides in Vietnam, where he is a managing director of Energy & Natural Resource Investments at Saigon Asset Management. He co-founded two natural resources firms in Vietnam: Tiberon Minerals and Keeper Resources; both of which were subsequently acquired by Asian-based investment firms. Raymond Fong Director - Mr. Fong is a Canadian Professional Engineer. Mr. Fong was a director of China Coal Corporation from 2007 to 2012. He held previous directorships with Abenteuer Resources Ltd., Stealth Ventures Ltd., Zapata Capital Inc., director and president of Ultra Capital Inc. and a former director of United Rayore Gas Ltd. Mr. Fong is currently serving as a Director for Sunshine Oilsands Ltd. and Palinda International Group. Greg Turnbull - Director - Mr. Turnbull is a lawyer, currently a senior partner at the Calgary office of McCarthy Tétrault LLP. He currently serves as a director of a large number of publicly listed oil and gas E&P companies, including Crescent Point Energy Corp., Storm Exploration Inc., Heritage Oil Corporation, and Marquee Energy Ltd. Wei (David) Wu - Director - Mr. Wu has over 30 years of experience as owner and operator of businesses in China. He is a Director of West Pacific Petroleum and Yunnan Tianli Trading Ltd. He has also been a Manager of Husky Energy Challenge Holdings since September 2005. Currently, Mr. Wu serves as the Chairman of the Board of Directors of Caiterra International Energy Corporation. 3
Directors and Management Perla Woo - Vice President of Corporate Operations - Ms. Woo is Canadian Professional Engineer, with a degree in Engineering from the University of Calgary. She was a Co-Founder of Sunshine Oilsands Ltd., and was Senior Vice President until September 2008 and has worked at Sunshine until 2014 in capital raising and investor relations. Ms. Woo has over 20 years experience working in the oil and gas industry in Canada in the fields of reservoir engineering, exploitation, and pressure transient analysis. Shan Li - Vice President of Finance - Ms. Li has been the Investment Manager of the Strategic Investment Division of the Bank of China Investment Group since 2010 and previously served as the Vice-President of BOCI Asia Limited. She has been involved in numerous IPOs and major M&As transactions. 4
Corporate Structure Canadian Foresight Group Limited and its wholly owned subsidiary CFG Energy Pte. Ltd. are Singapore private incorporated companies. Shares issued and outstanding: 148,591,655. Capital raising: Planning to raise US$100 million by 2016. CANADIAN FORESIGHT GROUP LIMITED 100% CFG ENERGY PTE. LTD. 100% CFG ENERGY PTE. LTD. (MYANMAR BRANCH) 19
Highlights Canadian Foresight Group Limited ( CFG ) was established to pursue international E&P opportunities in SE Asia and successfully participated in Myanmar s inaugural offshore bidding round. CFG holds an 80% interest in Myanmar s offshore Block M-15 and is the Operator Myanmar s offshore oil sector is dominated by the Super-majors and Majors. According to an independent third-party evaluator Gaffney, Cline & Association, the best estimate prospective resource is 13.7 TCF of gas with an NPV of over $20 Billion. Currently, CFG is the only pure Myanmar offshore investment opportunity available. CFG s directors and management team have extensive expertise in both onshore and offshore oil/gas exploration and development, particularly in Asia. Opportunity: Proposed US$100.0 million financing 2
Contact Information SONGNING SHEN Chairman of the Board and Managing Director Canadian Foresight Group Limited Mobile: +1 403 875 2129 Office: +1 587 353 3711 ext. 1120 Email: s.shen@canadianforesight.com PERLA WOO Vice President Canadian Foresight Group Limited Mobile: +1 403 827 6328 Office: +1 587 353 3711 ext. 1121 Email: p.woo@canadianforesight.com CANADIAN FORESIGHT GROUP LIMITED Calgary Office: Suite 800, 717 7th Avenue SW, Calgary, AB T2P 0Z3, Canada Office: +1 587 353 3711 Fax: +1 403 452 0907 Yangon Office: Rm. No.16, 3rd Fl., Build. No.C2, Shwe Hin Thar Condo, Corner of Pyay Road & Shwe Hin Thar Street, Hlaing Tsp., Yangon, Myanmar Office: +959 781 879 396 Fax: +959 781 879 396 www.canadianforesight.com 35