Cgx Energy Inc. · TSXV:OYL
Cgx Energy — Investor Presentation (October 2020)
34 slides from Cgx Energy's investor presentation, October 2020
Slide 1: Corporate Presentation: Exploring for Oil & Gas in Guyana
Corporate Presentation Exploring for Oil & Gas in Guyana October 2020
Slide 2: Company Overview
Company Overview • CGX Energy Inc. (TSX-V|OYL) is an oil and gas exploration company focused solely on the Guyana Basin. Headquartered in Toronto, ON, Canada with operational offices in Houston, TX, USA and Georgetown, Guyana. • CGX, through its wholly owned subsidiary CGX Resources Inc. (CRI) holds
Slide 3: Company Overview
Company Overview CGX Energy Inc. (Ontario) 100% 100% 100% 62% CGX Energy CGX Resources GCIE Holdings Management ON Energy Inc. Inc. Ltd. Corp. (Guyana) (Bahamas) (Barbados) (Delaware) CGX Resources Inc. Grand Canal (Guyana Industrial Estates 100% Registered 100% Inc. (Guyana) Branch) Berbice Deep Co
Slide 4: Company Overview
Company Overview • Offshore and onshore acreage • 2.7 million (gross) • 3 blocks (1 onshore, 2 offshore) • 2 well drilling campaigns in 2012 • Eagle Tertiary-1 (operator, 100% WI) • Oil shows present • Jaguar-1 (25% WI) CGX Northern Corentyne 3D • Light oil recovered Seismic Survey • Upcoming 2 well
Slide 5: Atlantic Margin Exploration Landscape
Atlantic Margin Exploration Landscape Trans-marginal Exploration Play Proven Viable through Discoveries in the Offshore Guyana/Suriname • Guyana-Suriname Basin linked to proven Northwest Africa Basins • CGX prospects analogous to adjacent discoveries made on Stabroek Block, Kanuku Block, Orinduik Bl
Slide 6: Discoveries De-Risk the Guyana Basin
Discoveries De-Risk the Guyana Basin • Stabroek Block • Liza discovered in May 2015. • Over 8 billion barrels of recoverable oil equivalent has been found to date with billions of barrels of undrilled potential. • Eighteen major oil discoveries to date. • Multiple play types: Cretaceous and Tertiary
Slide 7: Basin Acreage Holders
Basin Acreage Holders 7 7 • CGX is the 6th largest acreage holder with the 2nd most Blocks in the Basin 6 6 Acreage (million acres) • Recent notable farm-ins and block signings 5 5 No. of Blocks include: 4 4 • Total farmed-in to 3 blocks in Guyana (Canje, Kanuku and Orinduik) 3 3 • Equinor (Statoil)
Slide 8: CGX Energy – Offshore Activity Map
CGX Energy – Offshore Activity Map Stabroek Liza Complex Demerara Uaru Joe Redtail Jethro Mako Yellowtail Tripletail Orinduik Hammerhead Longtail Tilapia Turbot Haimara Carapa Pluma Kwaskwasi Maka Central Kanuku Sapakara West Corentyne Berbice 25 miles 25 km www.cgxenergy.com 8
Slide 9: CGX Work Commitments on PPLs
CGX Work Commitments on PPLs • Restrictions due to COVID-19 have severely impaired the freedom to operate in Guyana for CGX and its Partner. • As a result, the Company is in discussions with the Government of Guyana on modifications to its Work Commitment Timelines. Corentyne Block Deadline Delivera
Slide 10: CGX Work Commitments on PPLs: Berbice Block
CGX Work Commitments on PPLs Berbice Block Deadline Deliverables 12 February 2020 Complete Geochemical survey of a minimum area of 120 km² and commence a seismic program defined by the aforementioned Geochemical survey 12 February 2021 Complete seismic program and complete all processing and interpr
Slide 11: Corentyne Block Summary and Highlights
Corentyne Block Summary and Highlights • The Guyana Basin is still in the early stages of exploration. Ranger • New, state of the art 3D seismic, acquired over the northern region of the Corentyne Block Stabroek provides a new look at the Corentyne Block’s Block Liza prospectivity in light of the di
Slide 12: Recent Discoveries: Positive Implications for CGX
Recent Discoveries: Positive Implications for CGX Multibillion barrels of additional exploration potential Stabroek remaining Liza Complex Demerara Uaru • The chance of finding hydrocarbons has Redtail Joe Jethro Mako Yellowtail increased on CGX’s prospects since the company Tripletail last drilled
Slide 13: Corentyne Area: Well Results
Corentyne Area: Well Results Stabroek Haimara Maka The recent success in the area points towards low risk exploration in Pluma Central the Corentyne block Carapa Corentyne Area Wells Kwaskwasi Kanuku Sapakara • Offset wells to the Corentyne Block encountered good quality sands in West the Cretaceous
Slide 14: Low Risk Prospect Inventory Created from New 3D Seismic Survey
Low Risk Prospect Inventory Created from New 3D Seismic Survey • CGX has acquired 3D seismic over the most prospective Northern Region of the Corentyne Block • The Northern Corentyne Region is adjacent to recent commercial discoveries providing for low risk exploration • Haimara and Pluma on the Sta
Slide 15: Northern Corentyne 3D Seismic Survey
Northern Corentyne 3D Seismic Survey • Two large deeper channel complexes identified • Eastern Prospect of interest due to: • Proximity to recent Block 58 (Suriname) oil discoveries (Santonian age also) • Large high amplitude area (~10,000 acres) • Prospect stands out from background on initial ampl
Slide 16: Kawa: Maps
Kawa: Maps Structure Map Attribute Map C.I. 50ms Root Mean Square (RMS) Corentyne Lease Boundary Corentyne Lease Boundary • Seismic Amplitude Analysis shows Attribute Map Extracted Value the remarkable potential of the (EV) 10,173 Acres Prospect Corentyne Lease Boundary • The Seismic attribute maps
Slide 17: Kawa: Seismic Section
Kawa: Seismic Section Kawa SSW Horizon 23 NE Attribute Map • Objective: Santonian RMS • Trap type: Stratigraphic NE SW • High amplitude seismic marker seen in yellow on the seismic SSW section indicative of hydrocarbon bearing sandstones • Amplitude stands out from background seismic www.cgxenergy.c
Slide 18: Kawa: Depth Seismic Section
Kawa: Depth Seismic Section SW NE • This Santonian sandstone ENE prospect is the same age LOW LOW and play type to the offsetting Block 58 SW Suriname discoveries of Kawa Maka Central, Kwaskwasi, and Sapakara West www.cgxenergy.com 18
Slide 19: Demerara Block – 3D Seismic Interpretation
Demerara Block – 3D Seismic Interpretation 3D Seismic interpretation indicates multiple play types and robust prospectivity • 3,100 km² of modern 3D seismic was acquired in 2014 • The seismic revealed a variety of play types as seen in the seismic section below • The diverse prospect inventory provi
Slide 20: Demerara Block – Prospects C, D, E & F Outlines
Demerara Block – Prospects C, D, E & F Outlines Demerara Block Outline 3D Seismic Survey Single Sand C Main Amplitude Outline F D Single Sand Thrust Main Block Amplitude 7 Sands Outline Combined E Total Area Outline Canyon Fill N 5 Sands Combined Total Area Outline www.cgxenergy.com 20
Slide 21: Demerara Block – F Prospect
Demerara Block – F Prospect Demerara Block Outline PROSPECT NAME: Demerara F WATER DEPTH: 1,719 feet (524m) 3D Seismic Survey OBJECTIVE: Albian/Aptian sediment fan TRAP TYPE: Stratigraphic: F Prospect DEPTH OF OBJECTIVE: 10,190 feet (3,106m) N 25,000m WELL DEPTH: 11,155 feet (3,400m) • The F Prospec
Slide 22: Demerara Block – F Prospect
Demerara Block – F Prospect A A’ F Prospect Amplitude Full Stack Depth Data EV Attribute Above Background With Structural Contours A A’ C.I. - 100m 25,000m www.cgxenergy.com 22
Slide 23: Berbice Block – Prospectivity & Workplan
Berbice Block – Prospectivity & Workplan Proximity of CGX’s Berbice Block to Tambaredjo/Calcutta producing oilfields onshore Suriname Tambaredjo, Tambaredjo NW, & Calcutta • Evidence that oil has migrated onshore Guyana and been trapped • Presence of Tambaredjo/Calcutta onshore heavy oilfields in co
Slide 24: Berbice Block – Exploration History
Berbice Block – Exploration History • CGX through ON Energy Inc. drilled 3 wells on the block • Albion-1 (2005): Found reservoir quality sands and has possible oil shows • Yakusari-1 (2005): Found reservoir quality sands and possible trace hydrocarbons. • Hermitage-1 (2006): Found reservoir quality
Slide 25: Potential Hydrocarbon Traps – Berbice Block
Potential Hydrocarbon Traps – Berbice Block 2D Seismic Cross-Section (NW/SE) – Berbice Block NW Rose Hall-1 Hermitage-1 Albion-1 Yakusari-1 SE Sands subcrop unconformity Sand drape over structures Sands pinch-out against basement high Larger structures than well drilled Large structures higher than
Slide 26: The Basin’s Unique Upside Potential
The Basin’s Unique Upside Potential • Guyana-Suriname Basin significantly de-risked with discoveries adjacent to the CGX offshore Blocks • The discoveries in 2020 of Maka Central, Sapakara West, and Kwaskwasi immediately adjacent provide a direct analog to low risk prospects on the Corentyne block •
Slide 27: GCIE – Company Details
GCIE – Company Details • Grand Canal Industrial Estates Inc. incorporated in Guyana on 30th June 2010 • Registered office at 234 Lance Gibbs and Irving Streets, Georgetown. Principal activity is to build and operate the Berbice Deep Water Port on the Berbice River in Guyana • GCIE acquired a Governm
Slide 28: GCIE Vision
GCIE Vision • Berbice Deep Water Port servicing: • Oil and Gas Exploration • Oil and Gas Production • Agricultural export • Phase 1 (Target: Oct 2020 to Dec 2021): • 91m x 30m wharf platform built out into the channel and accessed via a 49m long, 12m wide trestle. • Containerized • Facility targets
Slide 29: Factors Motivating Berbice Deep Water Port in Guyana
Factors Motivating Berbice Deep Water Port in Guyana • Currently, there are two functional Oil and Gas Ports in Guyana • Located South of the Georgetown Harbour. The Demerara River has a depth of 5.5 – 5.9m at low water. Georgetown Harbour is congested with little room for expansion • Stabroek Block
Slide 30: GCIE Near Term – Phase 1 Objectives
GCIE Near Term – Phase 1 Objectives: Targeted October 2020 – December 2021 Build and operationalize initial phase of the Berbice Deep Water Port to service the highly active offshore oil and gas exploration industry in the Guyana-Suriname Basin • 91m x 30m wharf platform and 49m x 12m approach trest
Slide 31: Berbice Deep Water Port Targeted Expansion
Berbice Deep Water Port Targeted Expansion: December 2021 – December 2025 This targeted expansion will support: • Oil and Gas operations and production support • Agricultural export • Containerized import/export • Cruise ship docking • Regional shipping www.cgxenergy.com 31
Slide 32: GCIE Site Advantages
GCIE Site Advantages • GCIE selected this site for its shore-base and port facility based on the following: • Berbice River is one of three major rivers in Guyana – 600 kilometres long, and 2.3 kilometres wide at the project location • Berbice River channel is currently dredged and maintained at a d
Slide 33: GCIE Site Advantages
GCIE Site Advantages • In 2010, Guyana Lands and Surveys Commission in its land use planning map for Region 6 list the area for the development of a deep sea port, new airport runway of 1.2km and an industrial park • The GCIE location can also service import/export of agricultural and other goods wh
Slide 34: Thank You
Corporate Office Houston Office Guyana Office 333 Bay Street, Suite 1100 810 Highway 6 South, Suite 240 234 Lance Gibbs and Irving Toronto, ON, Canada M5H 2R2 Houston, TX, USA 77079 Streets, Queenstown, +1 (416) 364-5569 +1 (832) 300-3200 Georgetown, Guyana +011 (592) 225-5038 www.cgxenergy.com Than