South Atlantic Petroleum

… Africa is our home

www.sapetro.com

South Atlantic Petroleum African Exploration and Production – Our Journey 10th African Independents’ Forum Cape Town, South Africa

November 2013

2

South Atlantic Petroleum: Overview

South Atlantic Petroleum (SAPETRO) is a privately held Nigerian oil & gas exploration and production company with a portfolio of high-quality assets in West, Central and East Africa in: • Benin • Central Africa Republic • Juan de Nova • Madagascar • Nigeria

We are focused on creating value for our stakeholders through the pursuit of rewarding exploration, development and appraisal opportunities in developed and under-explored territories in Africa

3

South Atlantic Petroleum: Our Strategy

• We have continued to expand our portfolio with 6 different assets across sub-Saharan Africa spanning across:

• Onshore, offshore • Exploration, Development & Production

• Our exploration strategy continues to focus

on high risk/high reward acreages in largely unexplored areas with relatively low entrance costs and large available ‘footprints’ which are

• primarily geology/petroleum system driven opportunities

• with the potential for major conventional resources in excess of a billion barrels, and are

• Out of bid round acquisitions

• We are focused on growing our production in Nigeria within our existing and yet to be acquired acreages

Net Acreage Position

0

2

4

6

8

10

12

14

16

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

MM

BB

LS

10 Year Production Profile on Existing Assets

551

13,280

1,940

47,690

12,390

05,000

10,00015,00020,00025,00030,00035,00040,00045,00050,000

Benin CAR Nigeria Juan DeNova

Madagascar

Km

²


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Nigeria

5

Nigeria: Asset Overview

Storage- 2MMbbl Processing- 185kbod

Jurisdiction Federal Republic of Nigeria

Licence Type

Production Sharing Agreement (PSA) & Production Sharing Contract (PSC)

Participating Interest

OML 130 - 10% PSA; 5% PSC OPL 246 – 60% in PSA

Acreage / Water Depth

Size: 2,590km2 Water Depth: 1,100 – 1,800 m

Operatorship Undertaken by Total under Technical Services Agreement

Permit Tenor Initial 20 year period from 2005

Source: Wood Mackenzie

OML -130

OPL-246

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OML 130 & OPL 246: Fields & Prospects

OML Area 1,295 km2


EGINA-MAIN (548MB)

AKPO FIELD (574 MB)

EGINA SOUTH (41 MB)

PREOWEI-1B DISCOVERY

(176 MB)

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Akpo

The outstanding Akpo condensate field is the block’s first development and has produced over 200 million barrels of condensate to date. • Discovered in: 2000 • 2P Reserves: 574 MMbbl • Planned wells: 44;

22 Producers, 20 Water Injectors 2 Gas Injectors

• Delivered Wells: 37; 22 Producers; 13 Water Injectors 2 Gas Injectors

• Peak Production: 180,000 bcpd • FPSO Capacity: 2 MMbbl storage • First Oil: March 2009

8

Egina


The Egina oil field is the block’s second multi-billion dollar deep-water project with Field Development Programme sanctioned in May 2013 • Discovered in: 2003 • 2P Reserves: 548 MMbbl • No. of wells: 39; 20 Producers,

19 Water Injectors • Peak Production: 200,000 bopd • FPSO Capacity: 2.3 MMbbl storage

208,000 bopd • First Oil (planned): 2017


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Benin

10

Benin: Asset Overview

Jurisdiction Republic of Benin

Licence Type Production Sharing Contract (PSC)

Participating Interest 100%

Acreage Size: 551km2; Water Depth: 0 – 750 m

Operatorship YES

Permit Tenor Sèmè Field expires 30 Nov 2030

Remaining Work Obligation

1 exploration well Rig currently drilling = Perle-C Exploration well spudded Nov. 4, 2013

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Sèmè Field Redevelopment Overview

Sèmè is a brownfield development with a long and proven production history stretching back 30 years.

• Minimum facilities offshore Conductor Supported Platform transporting crude to shore via a 14 km long pipeline

• 12,000 blpd capacity processing facility incorporating a two-stage separation process with treated produced water disposed of via an outfall pipeline

• Crude stored in two refurbished existing 250,000 bbl capacity tanks

• Crude export via a 7 km long pipeline to Pipeline End Manifold (PLEM) and Conventional Buoy Mooring (CBM) for tanker offloading

N

S

W E

H3 H4 H6 H6.5 H7 H8 H9

E W S N

1km 1km

1:10000

• Perle C prospect is a four way structural dip closure

• Primary objectives at H6 and H6.5

• Secondary objectives at H7 and H8

• Cumulative oil in place approximated at 100MMstb

Perle C Exploratory Drilling


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Juan de Nova & Belo Profond

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Mozambique Channel Assets: Overview

Licence Juan de Nova Belo Profond

Jurisdiction

France – Terres Australes et Antarctiques Françaises (TAAF)

Madagascar

Licence Type Exploration Permit PSC


90% SAPETRO 10% Marex

90% SAPETRO 10% Marex

Acreage Size: 52,990km2; Water Depth: 600 – 3,200m

Size: 13,770km2; Water Depth: 1,800 – 3,000m

Operatorship Yes Yes

Licence Tenor

5 years wef 30/12/08 Awaiting approval for Renewal through 30 Dec 2018

8 years (4 Phases) ending 29 July 2015 with two (2) year extension to 2017

Remaining Work

3D Seismic (Ongoing)

3D Seismic (Ongoing); 1 well $50m

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Why the Mozambique Channel?

Continental Crust A large sunken continental fragment (the size of the North Sea) with continuous sedimentation for more than 200 million years and which is up to 8,000 meters in thickness

Source Rocks Three proven, productive oil source rock intervals (USGS 2012 Assessment), including a massive Marine Type II Jurassic section present nearly everywhere in the acreage and mature for oil

Oil Seeps Multiple recovered C-25 peaked oil samples from a small number of oil slicks persistent over years

Many Structural & Stratigraphic Plays

A wide variety of both structural and stratigraphic plays; 4-way and fault closed anticlines, toe thrusts, basin slope and basin floor turbidite fans, extensive Paleogene channels, possible salt sheets

Excellent Tertiary Shale Seals

Thick, deep water Neogene shales are widely present, salt sheets are also believed to be present as seen on the new 2012 seismic

Geologic History The heart of the East African Transform Margin with mature source rocks, reservoirs, traps and seals, all on continental crust

Large Acreage Position

Over 80% of the entire continental fragment sub-province is contained on SAPETRO’s nearly 70,000 km2 acreage position

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Mozambique Channel Assets: Exploration Activities

Work 2D Seismic 3D Seismic

Date Dec 2011 – April 2012 Sept 2013 - Date

Volume 12,525 km >9,000km2

Contractor / Technology

PGS Geophysical using Nordic Explorer with broadband Geostreamer / GeoSource PGS Geophysical using Ramform Sterling

Interpretation Completed 2013 interpretation w/Robertson CGG and EMR. Identified >70 leads across the two acreages

N/A

Other Works

Historically recurrent slick sampling with +40 samples collected. Multiple, recovered C-25 peaked oil samples from a small number of oil slicks, were found in both Juan de Nova and Belo Profond. Results indicate the presence of oil with affinities to the Anadarko ‘Ironclad’ discovery more than 500km away.

Acquired two 30m cores and over eight 5m cores within identified slick areas. These showed evidence of thermogenic hydrocarbons associated in one case with a major 4-way dip closed structure

Remaining Work 3D Seismic (Ongoing) Seismic Acquisition and Processing to define drilling prospects; 1 exploration well in each asset

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Exploration Work Executed

PGS Nordic Explorer PGS Ramform Sterling

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Technical Progress in Identifying Petroleum System Elements & Exploration Leads

• Pseudo wells and source rock presence and maturity studies indicate a major oil-prone

petroleum system further supporting the conclusions of a 2012 USGS Assessment of Recoverable Resources

• Reservoirs, traps, seals, and migration pathways identified

• Meshach: a structural and seismic attribute supported lead near a persistent oil slick/seep area awaiting sea bed imaging and coring as well as 3-D seismic survey definition

• Resource calculations for the Area 3: 430+MM to >1000MMbbls STOOIP

• Numerous other leads, many larger than Area 3

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Eastern Flank of the Davie Fracture Zone: Pseudo Well

X ing Horizons Time Depth (m)

490-1160 Sea Bottom

2900 2185

Top Eocene

3300 2579

Turonian Volcanics

4200 3497

L.Jura/Triassic

4900 4810

Synrift Sequence

5800 6730

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Eastern Flank of the Davie Fracture Zone: Maturity

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Necessary Elements of Functioning Petroleum System

STRATIGRAPHIC PINCH-OUTS

TOP SEAL: THICK MARINE SHALE SECTIONS

TOE THRUST LEAD

ANALOG:ANADARKO/ENI DISCOVERIES IN BLOCKS 1 & 4, MOZAMBIQUE

W E

HYDROCARBON GENERATION WINDOW (HGW) WITHIN DEEP SEATED MARINE SOURCE SHALES

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Cretaceous ‘Area 3’ Lead Near Seep Area

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2D Leads Vs Planned 3D

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3D Seismic Acquisition / MBES and Seabed Coring

• More than 75 leads and plays were defined in the 2-D seismic interpretation studies, they representing a wide variety of both structural and stratigraphic plays including 4-way and fault closed anticlines, major stratigraphic pinch outs, hanging wall traps, toe thrusts, basin slope and basin floor turbidite fans, and extensive Paleogene channels. Thick, deep water Neogene shales are almost universally present to act as seals, and salt sheets may also be present.

• An extensive 3-D seismic acquisition program of more than 9000 km² with PGS Ramform Sterling is now underway (Q4, 2013 through Q1, 2014) in four areas to bring more than 97% of the defined leads and plays under 3-D coverage. Many of these leads and plays are expected to be elevated to drillable prospects as a result of these new, detailed 3-D seismic survey and coring /geochemical data.

• Three proven oil source rock intervals including a massive Jurassic section (with likely Marine Type-II Kerogen) are present nearly everywhere in the acreage and at various maturities centering on early mature to peak mature for oil. Multiple, recovered, C-25 peaked oil samples from a small number of oil slicks, persistent over many years, were found in both Juan de Nova and Belo Profond. Initial results from an October 2013 MBES and Seabed Coring campaign on the R/V Marion Dufresne suggests thermogenic hydrocarbons.


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Central African Republic

26

Permit C: Overview

Licence Belo Profond

Jurisdiction Central African Republic

Licence Type PSC


45% SAPETRO 35% DIGOil 20% State

Acreage Size: 29,000km2; Land

Operatorship Yes

Licence Tenor 8 years – 2 Phases of 4 years each wef 5 April 2012)

Remaining Work

Phase 1: 800km 2D Seismic ; Phase 2: 300km2 3D + 3 wells

27

Why Permit C?... A Newly Discovered CARS Graben

• This map depicts the depth to economic basement map of the central portion of CAR Permit-C based on a 2012 airborne gravity and magnetic survey.

• It reveals a thick sedimentary basin with up to 7,000 meters of sedimentary section in a series of narrow grabens covering nearly 10,000 km²

• The NW-SE orientation of the grabens suggests they may have formed like other Central African Rift System grabens in Sudan, Niger, and Chad in response to the breakup of Gondwana in the late Mesozoic.

• A number of intervening horst blocks or uplifts are evident in the data; these could be logical first choices for investigation of hydrocarbon bearing structural traps.

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The Journey So Far

Production

Our production growth will come from:

• Sèmè and Egina fields starting in 2014 and 2017 respectively

• Acquisition of proved and developed reserves through IOC divestments in Nigeria and farm in opportunities

• Development of discoveries from our exploration assets

$11m

$35m

$94m

Exploration Expenditure

2011

2012

2013

Key Statistics

2006 2011 2016 2021 # of Assets 3 5 7 10 WI Reserves 2P (mmboe) 216 176 300 600 WI Production (bpd) - 25,500 24,400 50,000 Operated Assets 1 3 3 5

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Our Other Side

We continue to incorporate social initiatives in our countries of operations putting smiles on several faces through

• Support for educational programs and infrastructure

• Water projects in Nigeria and Madagascar

• Health infrastructure support of worthy initiatives

• Economic empowerment projects in Benin

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Contact Details

Website: www.sapetro.com E Mail: [email protected]

Nigeria (Head Office) South Atlantic Petroleum Limited 2nd, 11th and 12th Floors South Atlantic Petroleum Towers 1, Adeola Odeku Street Victoria Island, Lagos Tel: +234 (0) 1 270 1906, +234 (0) 903 2750, +234 (0) 462 3100 Fax: +234 (0) 1 270 1907 Benin Republic South Atlantic Petroleum Benin SA Lot H27, Les Cocotiers, 01 B. P. 327, Cotonou, Republique du Benin Tel: +229 21 30 5039, +229 21 30 5055, +229 21 30 5090 Fax: +229 21 30 5044 France South Atlantic Petroleum JDN SAS 9 Rue du Faubourg Saint Honore, 75008 Paris Tel: +33 1 42 66 02 20 Madagascar South Atlantic Petroleum BP SAS 26 Avenue Général Ramanantsoa, Isoraka BP 3788, Antaninarenina, Antananarivo Tel: +261 20 22 5 4920

http://www.sapetro.com/

mailto:[email protected]

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South Atlantic Petroleum