Panoro Energy Asa · OSL:PEN
Panoro Energy Asa — Investor Presentation (November 2010)
15 slides from Panoro Energy Asa's investor presentation, Nov 26, 2010
Slide 1: MKB Republic of Congo (Congo Brazzaville)
MKB Republic of Congo (Congo Brazzaville)
Slide 2: Mark Scarbrough P.E.
Mark Scarbrough P. E. Manager Drilling and Operations – MKB Project • Registered Engineer with 29 years of upstream oil and gas experience • Experience in Drilling, Completion, Production, Reservoir, and Integrated Projects • Operating experience in USA, Latin America, and Western Africa Significant
Slide 3: Republic of Congo (Congo Brazzaville)
Republic of Congo (Congo Brazzaville) Oil production (’000 boe/day) • 4.1 million people 300 • GDP of USD 3,900 per capita, +7.6% in 2009 250 200 • Independence from France 1960 150 • Legal system based on French Law 100 • Petroleum fiscal regime: Production sharing 50 contract (PSC) 0 • National oi
Slide 4: Mengo-Kundji-Bindi (20%)
Mengo-Kundji-Bindi (20%) Pilot program commenced • 17 wells drilled to date within the MKB permit, MKB (Congo) including the latest 3 wellbores, KUN-4, KUN-4bis and MKB Operator SNPC - Congo National Oil Company (60%) KUN-5 drilled by SNPC Working Interest 20% Other Partners PetroCI (20%) • Seismic
Slide 5: Very encouraging test results
Very encouraging test results • Completed two wells, which were drilled in 2009 • Used hydraulic workover unit to perforate and run completion equipment (packers, nipples, etc) • Performed hydraulic fracture stimulation treatments • Cleaned out wells with coiled tubing and nitrogen • Test production
Slide 6: Kundji Completions Jul-Aug 2010
Kundji Completions Jul-Aug 2010 6
Slide 7: Hydraulic Fracturing Layout
Hydraulic Fracturing Layout KUN-4bis and KUN-5 Proppant Hopper Frac Fluids High Blender Control Pressure Low Pressure Center Pumps Lines Liquid Additives Relief Valve Total Horsepower 4,400 bhp Maximum Pressure 5,000 psi High Pressure Maximum Rate 20 bpm Line - to Well Operating Personnel 12 7
Slide 8: KUN-4bis fracture design and results
KUN-4bis fracture design and results 20" KUN-4bis 13.375” KUN-1 KUN-4bis KUN-5 9.625” 1397-1403 (Frac 30,000#) 2223 psi 1456-1462 (Frac 40,000#) 2314 psi 1489-1495 (Frac 72,000#) 2272 psi 7” 8
Slide 9: MKB production history
MKB production history When operated by Elf (1980-1992) • Cumulative prod. ca .1.5MMbbls • Kundji Produced 670,000 bbls from two wells producing for 12 yrs – Kundji-1 produced 516,000 bbls – Kundji-2 produced 154,000 bbls BINDI MENGO • Mengo Produced 700,000 bbls Three wells producing for 12 years –
Slide 10: KUN-1 (Elf) vs KUN-4bis
KUN-1 (Elf) vs KUN-4bis KUN-5 KUN-4bis KUN-1 1981 • KUN-1 Produced 516,000 bbls from 2009 2009 1980-1992, making it the largest cumulative producer in the entire concession area • KUN-4bis was drilled in 2009 to a reservoir location only 80 meters from the KUN-1, and was completed in mid- 2010 using
Slide 11: KUN-1 (Elf) vs KUN-4bis (con't)
KUN-1 (Elf) vs KUN-4bis (con’t) • The KUN-4bis was Lbs. of Maximum Production hydraulically fractured Well proppant proppant ppg bopd in three zones, which KUN-1 57,000 3 280 are correlative to the zones fractured in the KUN-4bis 142,000 6-8 600 KUN-1 • Production rates from KUN-4bis - 48 hour flow
Slide 12: Way Forward
Way Forward Overall • Goal is to reach economies of scale in a larger project • Proceeding cautiously, while defining optimum development plan Sub-surface • Additional seismic activity (acquisition and processing) • Integrated study to determine optimum well paths and completions • Integrated study
Slide 13: Way Forward (contn'd)
Way Forward (contn’d) Production • Installing temporary production equipment to allow early production • 5,000 bopd third-party production facility contract in final stages of FEED, for installation in 3Q 2011 - including operational procedures and training of personnel • Studies currently underway
Slide 14: MKB Project Organization
MKB Project Organization Managed by Project Team coordinated by Mr. Ciry Mikolo Panoro is represented by participation in key leadership roles, including mentoring and training of local staff Key staff: Mark Scarbrough Eric Allard Drilling and Opts. Mgr. • Drilling and Operations Manager Logistics M
Slide 15: Why MKB will be successful
Why MKB will be successful • Very large STOOIP • Confimed that modern frac technology is more effective than methods used in the 80’s, making it possible to achieve economic rates • Cost reduction opportunities • Simplified completion • Economies of scale • Operator open to expand project team with
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