Slide 1: Joint CGX/Frontera Technical Webinar
Joint CGX/Frontera Technical Webinar May 9, 2022
Slide 2: Advisories
ADVISORIES Forward-Looking Information - This presentation contains forward-looking information within the meaning of Canadian securities laws. Forward-looking information relates to activities, events or developments that CGX Energy Inc. (“CGX”) and Frontera Energy Corporation (“Frontera”) believes
Slide 3: Advisories
ADVISORIES Oil and Gas Information Advisories - This presentation may include reference to terms such as "net pay", "gross pay", “oil pay”, “gas condensate pay”, “oil and gas condensate pay”, “hydrocarbon-bearing reservoir” and variations thereof. Such terms should not be interpreted to mean there i
Slide 4: About the Presenters
ABOUT THE PRESENTERS Dr. Mark Zoback Regan Palsgrove CGX Energy Board of Directors, Head Exploration for Senior Technical Advisor Frontera Energy Professor of Geophysics at Stanford University, Emeritus, 30+ years' experience in several North and South author of two books on reservoir geomechanics.
Slide 5: About the Joint Venture
ABOUT THE JOINT VENTURE CGX Energy Inc. (TSXV: OYL) ("CGX") and Frontera Energy Corporation (TSX: FEC) (“Frontera”), are joint venture partners (the “Joint Venture” or “JV”) in the Petroleum Prospecting Licenses for the Corentyne and Demerara blocks offshore Guyana. • CGX is a Canadian-based oil and
Slide 6: Integrated Kawa-1 Results
INTEGRATED KAWA-1 RESULTS Hydrocarbons were encountered in multiple zones extending from 15,216’ in 1 the Maastrichtian to 21,547’ in the Coniacian. Essentially every sand encountered over this interval indicated the presence of hydrocarbons. 228 feet of net pay is associated with five primary zones
Slide 7: Basin Activity & Regional Play Types
Basin Activity & Regional Play Types
Slide 8: Corentyne Geologic Setting & Cretaceous Reservoir Development
CORENTYNE GEOLOGIC SETTING & CRETACEOUS RESERVOIR DEVELOPMENT Schematic Fan Lobe Deposition in the North Corentyne Region North Corentyne depositional Turbot, environment Longtail, etc STABROEK Lau Lau BLOCK 58 BLOCK Lukana ni Pluma Haimara WEI-1 KANUKU BLOCK KAWA-1 • The northern portion of the Cor
Slide 9: Exploration Activity Adjacent to North Corentyne
EXPLORATION ACTIVITY ADJACENT TO NORTH CORENTYNE1 LAU LAU (January 2022): HAIMARA (February 2019): MAKA CENTRAL (January 2020) KWASKWASI (July 2020) • WD 4,792 ft • TD 18,286 ft (WD 4,589 ft) • TD 18,900 ft (WD 3,281 ft) • TD 21,804 ft (WD 3,281 ft) • North Corentyne on trend with • Maastrichtain/U.
Slide 10: North Corentyne Prospectivity
NORTH CORENTYNE PROSPECTIVITY Western Complex (targeted with Wei-1): Central Area (being evaluated): Eastern Complex (drilled): • Wei-1 well will target light oil in intervals • Similar prospects identified in • Kawa-1 reached TD January 27, 2022 similar to pay zones in Kawa discovery Maastrichtian
Slide 11: Deep-Water Exploration: Project Evolution / Drilling Objectives
DEEP-WATER EXPLORATION Project Evolution / Drilling Objectives
Slide 12: Typical Deep-Water Project Evolution
TYPICAL DEEP-WATER PROJECT EVOLUTION • The Joint Venture is in the exploration phase of a typical deep-water project evolution. • Deep-water developments, particularly in prolific basins with experienced operators can be accelerated to as little as ~4 years from discovery to first oil (ExxonMobil wi
Slide 13: Deepwater Drilling Objectives
DEEPWATER DRILLING OBJECTIVES Generic diagram illustrating types of drilling in a multi-zone exploration project • Typical first wells (like Kawa-1) in a new play trend are designed to hit as many targets as 1st subsequent appraisal appraisal exploration appraisal possible on the way down (as shown
Slide 14: Kawa-1 Results
KFRONTERA CgxO)
Slide 15: Kawa-1 Results
UPPER SANTONIAN KAWA-1 RESULTS 140 ft Channel complex with two packages of sands with combined 41 ft log pay, SW NE 12 - 19% effective porosity, and indications of light oil; analogous to 36” discoveries in Block 58 and deep An active hydrocarbon system has been proven to discoveries on Stabroek Blo
Slide 16: Kawa-1 Play Zone Fluid Estimation from Geochemical Data
KAWA-1 PLAY ZONE FLUID ESTIMATION FROM GEOCHEMICAL DATA Integrated Results1: Gross Pay Fluid from Mud Gas and Fluid from Annulus Mud Gross Pay Inferred fluid type Confidence Fluid from Cuttings Study Interval Isotube Gas sample Interval and characteristics Level Low temperature hydrous Compositional
Slide 17: Potential Upside Near Kawa
POTENTIAL UPSIDE NEAR KAWA Some of the sands penetrated in the Upper Santonian correlate to a bright sinuous channel-like feature on seismic, believed to be deposited in a slope channel complex. Kawa-1 penetrated the channel in a channel margin position and encountered thinly bedded sands. Seismic m
Slide 18: Wei-1 Exploration Well
Exploration Well f KFRONTERA CgxO)
Slide 19: Exploration Drilling: Wei-1
EXPLORATION DRILLING: WEI-1 WEI-1 prospect KAWA-1 discovery SE NW 14 km Wei-1 Kawa-1 • Stacked potential in Maastrichtian to • Well results have de-risked Santonian Wei-1 • Much thicker Santonian channel Maastrichtian • Proved charge of reservoirs complex exists in Wei area compared upslope from est
Slide 20: Wei-1 Exploration Well Target Zones
WEI-1 EXPLORATION WELL TARGET ZONES Avg P-Imp Top to Base Wei-1’s primary targets are stacked channels, like the one displayed, present in confined to weakly confined slope channel complexes in the Wei-1 Campanian and Santonian Example of a channel target in Wei-1 2 km Wei-1 will target light oil an
Slide 21: Additional North Corentyne Potential
ADDITIONAL North Corentyne Potential
Slide 22: Additional Prospectivity in Northern Corentyne
ADDITIONAL PROSPECTIVITY IN NORTHERN CORENTYNE Central Complex- Western Complex Eastern Complex Additional Potential Western Complex- Eastern Wei Location Complex-Kawa to be drilled 3Q Discovery 2022 Three Campanian- Santonian channel complexes identified on seismic map Approximate interval of ampli
Slide 23: Santonian Depositional Environment in Northern Corentyne
SANTONIAN DEPOSITIONAL ENVIRONMENT IN NORTHERN CORENTYNE Channel complexes can be identified on seismic in many intervals. This is one example of channeling evident within one interval in the Santonian. 3+ channel complexes are evident across the mapped area. Bright orange colors represent sands, an
Slide 24: Drilling Operations
DRILLING Operations
Slide 25: Drilling in Transition – Between the Shelf & Deep Water
DRILLING IN TRANSITION – BETWEEN THE SHELF & DEEP WATER Drilling “rank” exploration wells between the shelf and deep- water often presents challenges including uncertain lithologies and pressure profiles. The Joint Venture safely managed multiple changes in pressures and lithologies, unique in the b
Slide 26: Kawa-1 Drilling Days vs. Depth
KAWA-1 DRILLING DAYS VS. DEPTH – PROGRESS SLOWED SIGNIFICANTLY AFTER LATE OCTOBER 2021 • Base Case Casing Design - 36” conductor, 22”casing, 18”liner, 13&5/8” casing and 9&5/8” liner • 2 contingency liners remaining if needed to reach TD • Since spud have run / set and cemented 4 of 5 planned casing
Slide 27: Wei-1 Exploration Well Geologic Profile vs Subsurface Drilling Issues
WEI-1 EXPLORATION WELL GEOLOGIC PROFILE VS SUBSURFACE DRILLING ISSUES Basin pressure modeling for a first well in basin can be challenging. Kawa-1 was expected to have high pressures and temperatures at TD with a large range of potential pressures along the wellbore. The challenge at Kawa-1 was the
Slide 28: Wei-1 Well Design Improvements & Advantages from Kawa Experience
WEI-1 WELL DESIGN IMPROVEMENTS & ADVANTAGES FROM Kawa shallow sections went well – Wei-1 to maintain similar design & operational procedures. KAWA EXPERIENCE While Wei-1 pore pressure (PP) is uncertain with potential for PP ramps and regressions in the same hole section, the Joint Venture has: • Inc
Slide 29: Summary
SUMMARY 1 The Joint Venture has discovered light oil and gas condensate at the Kawa-1 exploration well, offshore Guyana. 2 A total of 228 feet of net pay was identified across 5 horizons with individual pay zones up to 35 feet thick with variable quality. Essentially every sand encountered over this
Slide 30: Q&A Section
KE FRONTERA cg xU