Marginal Oil Field Project Presentation - Nigeria

8/19/2019 Marginal Oil Field Project Presentation - Nigeria

http://slidepdf.com/reader/full/marginal-oil-field-project-presentation-nigeria 1/15



FORWARD-LOOKING STATEMENTS

• This document contains forward-looking statements thatinvolve a number of assumptions, risks and uncertainties

that could cause actual results to differ materially fromthose contained in the forward-looking statements. ProjectCompany cautions readers that any forward-lookinginformation is not a guarantee of future performance. Suchforward-looking statements include, but are not limited to,statements about the benefits of the recent acquisition of

oil & gas development contracts in Nigeria, including futurefinancial and operating results, the company’s plans,objectives, expectations and intentions and otherstatements that are not historical facts.

• Cont’d……



FORWARD-LOOKING STATEMENTS

CONT’D)

• Risks, assumptions and uncertainties that couldcause actual results to materially differ from theforward-looking statements include, but are notlimited to, those associated with general economicand business conditions; changes in commodityprice; inability to obtain capital needed foroperations; the level of indebtedness; changes ingovernment environmental and energy policies; taxconsequences of business transactions; and other

risks, assumptions and uncertainties. There can beno assurance that the transactions described in thisdocument will be consummated. Forward-lookingstatements speak only as of the date hereof, andProject Company assumes no obligation to update

such statements.



OVERVIEW

•Developing Marginal Oilfields in Nigeria.

• Nigeria:

• OPEC Country producing 2.7 million bopd world’s

12

th

largest)

•Most Major IOCs represented (Exxon, Shell, Chevron,

CNPC, Statoil, etc.)

• Marginal Field Initiative Implemented in 2003 to

assist Indigenous ownership

•

Sole Risk (No NNPC Participation)

• 2014 Second Marginal Field Bid Round offering 31

fields

• Contd……



OVERVIEW CONT’D)

• Target Marginal Field:

• On shore 65 km SW …..

• Three wells drilled (Well No. 1, 2 & 3)

• Target Wells - Net Oil Resources xx million bbls.

• Production expected

–

6 to 10K BBLs/day.



MANAGEMENT DIRECTORS

• D.P.B., Executive Chairman*

• 27 years of experience in natural resource related

companies

• Engineer H.H., Vice President, Director*

• Professional Engineer with 15 years experience in

technical development of oil and gas and

transportation projects in Nigeria and the Gulf of

Guinea

• Nigerian Citizen



• M.J.H., P. Eng., Chief Executive Officer, Director*

• Professional Petroleum Engineer with 30 years of

international experience

•Previously Chairman & CEO of a FSU oil and gas

company grew production to +6,000 bopd

• Former Head of International Operations for

Canada’s premier petroleum consulting firm

• Former Senior Reservoir Engineer at Canada’s

national oil company

• *Founders

MANAGEMENT DIRECTORS

CONT’D)



• Member of OPEC, 12th largest oil producer in the

world

• Producing 2.7 million bopd

• 1 million bopd to US (10% of imports)

• Brent oil price as benchmark

• Majors operating in Nigeria - Shell, ExxonMobil,

Chevron, Conoco, Total, ENI, KNOC, ONGC,

CNPC, CNOOC, Sinopec, Statoil

• Cont’d….

OIL IN NIGERIA



• Marginal Field Program –

• Development of the Major’s undeveloped oil

fields by indigenous companies

• Marginal Fields

• ‘Sole Risk’ –No Government (NNPC) participation

•

Profit tax 55%; Royalty 5%• Potential +500 such fields

OIL IN NIGERIA



• Promoter

– Project Company’s Joint Venture Partner:

• TC Limited

• Qualified under the Marginal Field Program with a proven

track record

• Known to the Department of Petroleum Resources DPR),

Petroleum Minister President’s office

JOINT VENTURE



SWOT ANALYSIS -

STRENGTHS

• Experienced Management Team

•

Local Partner Known

• PROVEN RELATIONSHIP WITH DPR

• Proven Oil reserves with short tie in

• Unitization Potential

•Time to Finance Development

• Swift Decision Making Process





SWOT ANALYSIS -

OPPORTUNITY

•

Bid is based on qualifications

• Quick to cash flow (< 2year)

• Fast Payout (< 2 year)

• High Yield Project NPV vs Bid Expense

•OPEC country with oil infrastructure



SWOT ANALYSIS -

THREAT

• Bid Competition

• Bid Submission April 2014



INVESTMENT OPTIONS

• Project Cost / Investment: 50 Million;

• Entry Level Investment: 5 Million;

•Preferred Funding: Debt Funding;

• Open for consideration: Debt to part Equity;

• Debt Payback: 4 Years;

Documents

Marginal Oil Field Project Presentation - Nigeria