Billion Barrel
Resource Potential
Offshore Guyana
Positioned
for Success in the
Guyana Atlantic Basin
November 2011
Forward Looking Statements and
Resource Disclosure
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, drilling plans, and the future plans and
objectives of CGX Energy Inc. ( “ CGX ” ) 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. With respect to forward-looking
statements contained in this presentation, CGX has made assumptions regarding, among other things:
commodity prices and royalty regimes; availability of skilled labour; timing and amount of capital expenditures;
future exchange rates; the price of petroleum; the impact of increasing competition; conditions in general
economic and financial markets; access to capital; availability of drilling and related equipment; effects of
regulation by governmental agencies; royalty rates and future operating costs. 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 www.sedar.com, including under “Risk Factors” in CGX’s prospectus with respect to the
offering described herein.
Resource Disclosure - The independent resource estimates with respect to CGX's Corentyne PPL have been
prepared by Gustavson Associates LLC in accordance with NI 51-101 in a report dated March 3, 2010 with an
effective date as of February 1, 2010. Prospective resources are those quantities of oil and gas estimated to be
potentially recoverable from undiscovered accumulations. If discovered, there is no certainty that it will be
commercially viable to produce any portion of the prospective resources. However, there is no certainty that the
prospective resources will be discovered. For further information about the prospective resource estimates
contained herein see CGX's annual information form dated May 7, 2010 which is available to the public at
www.sedar.com. Certain information contained herein is considered "analogous information" as defined NI 51101 such as the estimate of original oil in place with respect to the Tambaredjo and Calcutta fields onshore in
Suriname. Such analogous information has not been prepared in accordance with NI 51-101 and the Canadian
Oil and Gas Evaluation Handbook and CGX is unable to confirm whether such estimates have been prepared by a
qualified reserves evaluator. The information has been provided to show that the Guyana Suriname basin in
which CGX has an interest has a proven hydrocarbon system.
2
Positioned for Guyana Atlantic Basin
Success
n
n
n
OYL on TSXV
•
326 million shares currently outstanding
•
341 million fully-diluted
Exploring for Oil in Guyana
•
Four Petroleum Agreements
•
7.8 million acres gross
•
6.2 million acres net
Equatorial Atlantic Margin Plays Analogous to West Africa and Brazil
•
n
16 leads and prospects in Turonian, Albian, Campanian, Maastrichtian and Eocene
Valuation of Just 6 Prospects 100% CGX
•
P50 3.3 billion barrels recoverable Independent Resource Assessment
•
Probability of Success ~ 1:5
•
NPV20 risked
$1.59 per barrel
$5 billion
•
NPV10 risked
$3.17 per barrel
$10 billion
•
NPV10 unrisked
$15.82 per barrel
$50 billion
3
Georgetown and Corentyne
Wells and Resources
4
World-Class Basin
in Early-Stage Exploration
N
Oil Discovery
?
?
?
?
Zaedyus
Well
?
?
5
Net Acreage Positions in South
America’s Equatorial Margin
6
Equatorial Atlantic Margin Play
Mirror Image to Major Discoveries
Atlantic Margin at Turonian/Campanian
Time (Mid Cretaceous)
Venus - Campanian
(Anadarko, Repsol,
Woodside and Tullow)
Jubilee, Tweneboa Turonian
(Kosmos, Anadarko,
Tullow)
Sierra
Leone
Guyana
Suriname
French
Guiana
Cross-Section Offshore Guyana
Eagle
Jaguar
Campanian
Turonian
Cenomanian
Albian
Aptian
Source: CGX
Cote
d’Iv
oire Ghana
Cross-Section Offshore Ghana
Turonian,
Campanian,
and Eocene
(CGX Prospects)
Source : Anadarko
7
Proven Hydrocarbon System
Abary Shell 1975 –
loss of control – 37o
API crude at
Maastrichtian
Inpex currently
drilling Albian target
– secondary
Maastrichtian target
Murphy Caracara 2010
oil shows – outside of
mature source kitchen
Eagle-1
Location
Demerara High
Mature Source Kitchen
Jaguar-1
Location
Guyana
Tambaredjo
and Calcutta
> 1 Billion bbl
OOIP
Suriname
Tullow Zaedyus
2011 well - 72
metres of net
pay; 39 metres
in Turonian
French
Guiana
8
Corentyne Incised Valley Funnels Sands
on to Slope (Turonian/Campanian)
A
Crabwood Location
Eagle Location
B
9
Jaguar Well to Test Turonian Trend
Eagle Well to Test Eocene Trend
n
Primary Prospects
(3D Mapping)
•
Turonian Basin Floor Fan
Ø
•
n
Jubilee Analogy
Eocene Turbidites
Leads
•
Maastrichtian Sand
Ø
•
Campanian Turbidite
Ø
•
Abary Blowout
Venus Analogy
Albian/Aptian Carbonate
Ø
OGX Analogy Brazil
Period Age
10
CGX License Area > Campos Basin
In Campos OGX 5.7 Bbbls Resource
Majority in Albian / Aptian
Portion of
Guyana Suriname
Basin
Campos Basin
Inpex
Albian
Test
Albian
Prospects
11
Corentyne PPL 100% CGX
Five Prospects and Three Leads
P50
Mean Area Gross Pay
Resource
Sq km
metres
Billion bbl
Eagle Location
Target
Eagle Eocene
Prospect
Maastrichtian
Lead
Campanian
Lead
0.3
97
79
-
-
-
-
77
609
(1)
Upper Turonian
Prospect
1.2
(1)
186
297
Lower Turonian
Prospect
1.3
(1)
129
368
61
79
Wishbone Eocene
Lead
-
Kabukalli Albian
Prospect
0.1
(2)
105
274
Crabwood Albian
Prospect
0.2
(2)
93
274
Total
Source of Resource Estimate:
(1) Gustavson Associates April 2011
(2) DeGolyer and MacNaughton June 2011
3.1
12
Metrics of Success
$/bbl
Wellhead Price
$83.66
Operating Cost
$5.37
Capital Cost
$2.20
Government of Guyana Take
Netback
$40.71
$35.38
NPV10
$15.82
NPV20
$7.94
Probability of Success ~1:5
NPV10 Risked
$3.17
NPV20 Risked
$1.59
Floating Production Storage
and Offloading Vessel
Source: Gustavson Associates January 2008
13
Prospect Valuation
P50 Resource Estimate – NPV20
Target
CGX WI Share
Billion bbl
NPV20
Risked
$ Billion
NPV20
Unrisked
$ Billion
Jaguar Turonian
0.2
(3)
0.3
1.6
Eagle Eocene
0.3
(1)
0.5
2.4
Eagle Upper Turonian
1.2
(1)
1.9
9.5
Eagle Lower Turonian
1.3
(1)
2.1
10.3
Kabukalli Albian
0.1
(2)
0.1
0.8
Crabwood Albian
0.2
(2)
0.3
1.6
$5.2
$26.2
Total
3.3
Source of Resource Estimate:
(1) Gustavson Associates April 2011
(2) DeGolyer and MacNaughton June 2011
(3) Tullow website
* CGX continues to pursue funding through joint venture which would reduce the current 25%
interest in Georgetown Jaguar and 100% interest in Corentyne Eagle in this scoping valuation.
14
Executive Summary
n
CGX Drilling in Highly Prospective Basin with Proven Hydrocarbon System
•
n
Committed to two wells
CGX Testing Multi-Billion Barrel Potential
•
Corentyne/Eagle – Independent P50 Resource Assessment
Ø
Ø
Corentyne/Albian – Independent P50 Resources Assessment
Ø
•
n
0.3 billion barrels
Georgetown/Jaguar – Tullow P10 resource estimate
Ø
•
2.8 billion barrels
0.7 billion boe in Upper Turonian
CGX has 16 prospects and leads, including Albian
Exploration of Emerging Equatorial Atlantic Margin Play
•
West African – Turonian and Campanian discoveries from Ghana to Sierra Leone
•
Brazil – OGX’s shelf margin Albian/Aptian carbonate discoveries
•
Guyana/Suriname Basin – Tullow makes three zone discovery in French Guiana
•
CGX surrounded by major companies
Ø
Exxon, Total, Shell, Tullow, Repsol, Murphy, Noble, Inpex, YPF
15
Key Management Overview
Stephen Hermeston
President ,
Chief Executive Officer
and Director
Michael Stockinger
Chief Operating Officer
•
•
•
•
•
•
Dewi Jones
Executive Vice President,
Exploration and General
Manager
John Clarke
Vice President, Business
Development
•
•
•
•
•
•
•
James Fairbairn, C.A.,
ICD.D
Chief Financial Officer
•
•
•
•
Over 30 years of E&P experience with Tenneco, Conoco,
Chieftain, Kerr-McGee, Repsol and Occidental
Most recently with Remora International
B. A. Geology, University of South Florida
Over 35 years of E&P drilling operations experience with
Murphy Oil, Anadarko Petroleum, Kerr-McGee, Conoco
Most recently, Project Manager for Murphy Oil and Remora
International
B. A. Civil Engineering, Stevens Institute of Technology, NJ
Over 25 years of E&P technical and management
experience in Latin America
Most recently, Exploration Manager, Caribbean, Repsol YPF
B.Sc. Geology, Louisiana State University, LA
35 years experience - E&P with Texaco and Candax; O&G
Analyst with Deutsche Bank and Octagon
B.Sc. Physics, Birmingham University
M.Sc. Imperial College
B.A. English, University of Calgary
20 years experience with publicly-traded companies
Officer of Claim Post Resources and Treasury Metals
Director Canada Lithium and Trelawney Mining
B.A. University of Western Ontario, Chartered Accountant
16
Other Directors and Officers
Kerry Sully
Executive
Chairman
•
•
David Christian
Director
•
Denis Clement
Director
•
John Cullen
Co-Founder
and Director
Edris K. Dookie
Co-Founder
•
Adrian Jackson
Director
•
Oliver Lennox-King
Director
•
Tralisa Maraj
Controller /
Chief
Accounting
Officer
Charlotte May
Communications
Manager
Warren Workman
Vice
President,
Exploration
•
•
•
•
•
•
•
40 years experience and past President and CEO, CGX and former
CEO and Director of Ranchmen’s Resources
B.Sc. Chemical Engineering, University of Saskatchewan
Lawyer with 30 year career in international E&P; former Vice
President, Land and Negotiations for Kerr-McGee
27+ years experience in corporate finance, law and management
27+ years experience in public markets including 15 years with Burns
Fry
Director and Executive Vice President, CGX Resources and President,
ON Energy
Equity Analyst with Investec Asset Management based in London, UK
Director of Teranga Gold Corp. and former Chairman of Fronteer
Development
15 years experience in international oil industry and public company
accounting
Certified Public Accountant (CPA) licensed in Texas and Chartered
Certified Accountant (FCCA) licensed in the UK
20+ years experience in the institutional brokerage industry focused
on junior oil and gas companies
35 years experience
Previously with Amoco, Unocal and Ranchmen’s
B.Sc. Geology, Queen’s University, Ontario
17
Billion Barrel
Resource Potential
Offshore Guyana
TSX V - OYL
Shares Outstanding September 2011
Basic
326,223,663
Fully-Diluted
341,673,663
www.cgxenergy.com
18