SLIDE 1
The Rig is in the Basin February 2 0 1 1 Billion Barrel Resource Potential Offshore Guyana
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Forw ard Looking Statem ents & Resource Disclosure
Forw ard Looking Statem ents - This presentation contains certain forward-looking statements. All statements,
- ther 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
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
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
- ffering 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 51- 101 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.
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Executive Sum m ary
n
CGX Drilling in Highly Prospective Basin w ith Proven Hydrocarbon System
- Committed to two wells in 2011
- $44 million in working capital; pursuing joint venture partners
n
CGX Testing Multi-Billion Barrel Potential
- Corentyne/ Eagle – Independent P50 Resource Assessment
- 0.3 billion barrels in Eocene
- 1.3 billion barrels in Upper Turonian
- 1.2 billion barrels in Lower Turonian
- Georgetown/ Jaguar – Tullow P10 resource estimate
- 0.7 billion boe in Upper Turonian
- CGX has 16 prospects and leads, including Albian
n
Exploration of Em erging 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 – six wells being drilled
- CGX surrounded by major companies
- Exxon, Total, Shell, Tullow, Repsol, Murphy, Noble, Inpex, YPF
SLIDE 4 4
Equatorial Atlantic Margin Play Mirror I m age Depositional Setting
Atlantic Margin at Turonian/ Cam panian Tim e ( Mid Cretaceous)
Source : Anadarko Cross-Section Offshore Ghana
Guyana Suriname French Guiana Sierra Leone Cote d’ Iv
Venus - Campanian (Anadarko, Repsol, Woodside and Tullow) Jubilee, Tweneboa - Turonian (Kosmos, Anadarko, Tullow) Turonian, Campanian, and Eocene (CGX Prospects) Cross-Section Offshore Guyana Source: CGX Jaguar Eagle
Campanian Turonian Cenomanian Albian Aptian
SLIDE 5
5 Light oil at Abary well typed to biodegraded oil onshore Suriname
Proven Hydrocarbon System
Abary Shell 1975 In-well loss control 37° API Crude in Mud Mature Source Kitchen Outline of CGX Licences Murphy Caracara 2010 Oil shows Tambaredjo & Calcutta > 1 Billion bbl OOIP
Guyana Surinam e French Guiana
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6
Six W ells Testing Basin
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CGX Drilling Tw o W ells in 2 0 1 1 ( 7 .8 m m acres gross; 6 .2 m m net)
n
Georgetow n Jaguar 2 5 % W I (Repsol 15% , YPF 30% , Tullow 30% )
- Turonian Prospect
- Spud H1 2011
- TD 6,500 metres
- 700 million barrel potential P10
n
Corentyne Eagle 1 0 0 % W I
- Eocene Prospect
- Spud 2011
- TD 3,500 metres
- Cost ~ US$35 million
- 300 million barrel potential P50
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Depositional Model for Turonian
n Berbice Canyon
n Turonian Prospect
Dim ensions
- Areal extent ~ 200 sq km
- Thickness ~ 400 m
Richards, Bating, Bowman, 1998
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Corentyne I ncised Valley Funnels Sands
- n to Slope ( Turonian/ Cam panian)
Eagle Location
A B
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Jaguar W ell to Test Turonian Trend Eagle W ell to Test Eocene Trend
n Prim ary Prospects
( 3 D Mapping)
- Turonian Basin Floor Fan
- Jubilee Analogy
- Eocene Turbidites
n Leads
- Maastrichtian Sand
- Abary Blowout
- Campanian Turbidite
- Venus Analogy
- Albian/ Aptian Carbonate
- OGX Analogy Brazil
Period Age
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Target P5 0 Resource Billion bbl Mean Area Sq km Gross Pay m etres Eagle Eocene Prospect 0.3 97 79 Maastrichtian Lead
Lead
609 Upper Turonian Prospect 1.2 186 297 Lower Turonian Prospect 1.3 129 368 Wishbone Eocene Lead
79 Kabukalli Albian Lead
274 Crabwood Albian Lead
274 Total 2 .8
Source: Gustavson Associates March 2 0 1 0
Eagle Location
Corentyne PPL 1 0 0 % CGX Three Prospects and Five Leads
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12
$ / bbl Wellhead Price $83.66 Operating Cost $5.37 Capital Cost $2.20 Government of Guyana Take $40.71 Netback $ 3 5 .3 8 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 2 0 0 8
Metrics of Success
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13
Note: 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.
Prospect Valuation P5 0 Resource Estim ate – NPV2 0
Target CGX W I Share Billion bbl NPV2 0 Risked $ Billion NPV2 0 Unrisked $ Billion Jaguar Turonian 0.2 0.3 1.6 Eagle Eocene 0.3 0.5 2.4 Eagle Upper Turonian 1.2 1.9 9.5 Eagle Lower Turonian 1.3 2.1 10.3 Total 3 .0 $ 4 .8 $ 2 3 .8
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Key Managem ent Overview
Kerry Sully President CEO and Director
- 40 years experience
- Former CEO and Director of Ranchmen’
s Resources
- Reserve assessments include Iran 1975
- Financial modeling Texaco Exploration 1970-73
- B.Sc. Chemical Eng, University of Saskatchewan
Jam es Fairbairn, C.A., I CD.D CFO
- 20 years experience with publicly-traded companies
- Officer of Claim Post Resources and Treasury Metals
- Director Canada Lithium and Trelawney Mining and
Exploration
- B.A. University of Western Ontario, Chartered
Accountant John Clarke VP, Business Developm ent
- 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
W arren W orkm an VP, Exploration
- 35 years experience
- Previously with Amoco, Unocal and Ranchmen’s
- B.Sc. Geology, Queen’s University, Ontario
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Denis Clem ent Director 27+ years experience in corporate finance, law and management Director of a number of public and private resource companies John Cullen Co-founder and Director 27+ years experience Co-founder and former director of Candax Energy Inc. and director of a number of public and private resource companies Edris K. Dookie Co-founder Executive VP of CGX Resources and President of ON Energy Adrian Jackson I ndependent Director Equity Analyst with Investec Asset Management based in London, UK Oliver Lennox-King I ndependent Director Chairman of the Board of Fronteer Development Charlotte May I nvestor Relations 20+ years experience in the institutional brokerage industry focused on junior
Other Directors and Officers
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16
Billion Barrel Resource Potential Offshore Guyana
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