ifny - Infinity Energy Resources, Inc.

Infinity Energy Resources, Inc.
INFINITY
ENERGY
RESOURCES,
INC.
NICARAGUA
EXPLORATION
PROJECT
Blocks Perlas and Tyra
December 2012
Forward-Looking Statement
This Presentation of Infinity Energy Resources, Inc. (the "Company") contains forwardlooking statements that may include the words "believes," "expects," "anticipates," "intends,"
"estimates," "plans," "projections" or other expressions that are predictions of or indicate future
events. These forward-looking statements inherently involve risks and uncertainties that could
cause actual results to differ materially from such statements. A wide variety of factors that may
cause the actual results to differ from these statements include, but are not limited to, the
following: the Company's ability to raise sufficient capital and/or obtain a partner on acceptable
terms, or at all, to pursue exploration and development activities regarding its Nicaraguan
Concessions; the success of its efforts to acquire and process seismic data relating to such
Concessions; the quantity of hydrocarbons beneath the Concession blocks; the costs of drilling
and completion of any wells; risks that drilling wells will not result in commercially viable oil and
national gas production; operating risks, delays and problems; the availability of services on
acceptable terms; changes in the prices of oil and gas; unexpected negative geological
variances; governmental uncertainties in Nicaragua; actions by creditors with respect to debt
obligations, liquidity and capital requirements; competition from larger, more established
companies with far greater economic and human resources; the effect of changing economic
conditions; changes in U.S. government regulations, tax rates and similar matters; and other
risks described in its Annual Report on Form 10-K and periodic reports filed with the Securities
and Exchange Commission. The Company does not undertake to publicly update or revise
forward-looking statements, whether as a result of new information, future events or otherwise.
This Presentation is neither an offer to sell or a solicitation of an offer to buy any securities
of the Company.
Company Overview
• Infinity Energy Resources, Inc. (IFNY: OTCQB)
• 20,668,575 Common Shares, 4,303,500 Options (WA $4.50)
and 2,657,249 Warrants @ $6.25 (exp 2-21) Outstanding.
• Approx. $45 million Market Cap
• The Company has divested itself from virtually all its domestic
leases to concentrate on the exploration and development of
its 1,400,000 acre oil and gas concessions in offshore
Nicaragua. Estimated reserves could exceed 10BBOE.
• Complete environmental assessments, initiate 3-D seismic
mapping of the concessions and attract Industry Partner
Infinity Energy Resources, Inc.
NICARAGUA EXPLORATION PROJECT
Blocks Perlas and Tyra
10 Billion Barrel Prospect
December 2012
Nicaraguan Concession
Highlights
•
We have conducted environmental studies, reprocessed 2-D seismic data
and developed geological mapping. Total expenditure to date $3.0 mil.
Awaiting government approval of our Environmental Impact Assessment.
•
4 large seismically defined closures on 120 mile long structure covering 547
square miles
•
Estimated Resource potential from Eocene only: P90 1.5 bn barrels
P50 4.6 bn barrels
P10 10+ bn Barrels
Potential cretaceous not quantified yet but could be larger than Eocene.
•
Great fiscal terms from Nicaraguan government.
•
Easily managed work commitment.
•
Shallow water.
•
Independent geologists who analyzed the data and mapped the concession
are Renato Bertani, Luciano Chas and Jeff Roberts.
Renato T Bertani - Geologist
• Renato T. Bertani holds a PH. D. in Sedimentary Geology and Geochemistry from
•
•
•
•
•
the University of Illinois, USA.
Over 33 years of international experience in exploration and production projects,
particularly in South America, West Africa, UK, and the USA Gulf of Mexico.
Served for 31 years in various technical and high level managerial positions with
Petrobras, the Brazilian state oil company, including:
• President of Petrobras America, Inc. (2001-2006)
• Managing Director of Petrobras UK (1998-2001)
• Director of International E&P activities for the Petrobras Group (1992-1997)
Involved in several major oil and gas discoveries, including:
• San Alberto and San Antonio gas fields of Bolivia
• Akpo and Agbami oil fields offshore Nigeria
• Cascade, Chinook and Saint Malo in the Gulf of Mexico’s Lower Tertiary play.
Vice President of the World Petroleum Council
Responsible for the technical program for the 2011 World Petroleum Congress in
Doha, Qatar.
Luciano Seixas Chagas - Geologist
• Mr. Chagas holds a Ms. Sci. Degree in Sedimentary Geology and Stratigraphy
•
•
•
•
•
•
from the Federal University of Rio Grande do Sul, Brazil
Over 35 years of experience in the exploration of sedimentary basins around
the world.
Considered an expert in sedimentary, stratigraphic and structural characteristics
and petroleum systems.
Served with Petrobras for over 30 years in several technical and managerial
positions.
In 2004, formed Brazilian-based Consultoria em Geologia Geofísica e
Informática do Petróleo LTDA (“CGGIP”) consulting various oil companies
operating in Brazil.
Published more than 50 papers and articles on the Petroleum Geology of
several Brazilian sedimentary basins, particularly the Recôncavo, SergipeAlagoas and Potiguar basins.
Lectures regularly on subjects such as Stratigraphy, Structural Geology,
Petroleum Geology, and Well Log Analysis at various Brazilian universities.
Jeff Roberts - Geologist
 B.A. Degree in Geology from the University of Tennessee at Chattanooga and Ms. Sci. Degree in










Geology from Memphis State University.
31 years of petroleum exploration experience with Amoco, Sun and Oryx.
Founding member of The Unconventionals, who build exploration projects in U.S. Shale Gas plays.
 Developed over 1.5 million acres of shale gas projects from 1999 to present.
 Interests in over 400 shale gas wells.
Exploration geologist (Amoco, Sun, Oryx)
Manager Operational Planning and Analysis (Oryx)
 Corporate planning and budget functions for $400 million in worldwide exploration and
production, global portfolio economic analysis, benchmarking and competitor analysis.
Exploration Manager Gulf of Mexico (Oryx)
Manager Special Exploration Projects (Oryx)
Manager of E&P Technology (Oryx)
Exploration experience in numerous U.S. and Canadian Basins.
Exploration geologist and manager in numerous basins including Offshore Nicaragua, eastern
Algeria, the Northwest Shelf of Australia, the Pre-Caspian Basin Kazakhstan, the Oriente Basin
Ecuador and the U.K. North Sea.
Founding member of Eldorado Resources, LLC focused on Unconventional Oil opportunities.
Geographic Location
TYRA
PERLAS
NOBLE
Energy
IFNY
IFNY
NBL
Concessions
Executive Summary
• Infinity blocks cover huge geological structure
(120 miles long).
• The region's best reservoirs have never been
tested on the structure.
• Regional analogs have produced billions of
barrels of oil.
• Only 26 wells have been drilled in the entire
offshore basin.
• 38% of the wells had shows of oil and/or gas in
the shallow section.
• Infinity’s concession terms are among the best in
the world.
Infinity Concessions
Infinity holds 100% interest in Blocks Perlas and
Tyra, located in shallow waters offshore Nicaragua
Fiscal Summary
• Work Commitment for each block broken into 4 SubPeriods.
• Tyra:
– Sub-Periods 1, 2, & 3 (4 years) Acquire, process and
interpret seismic data.
– Sub-Period 4 (2 years) Drill 1 well to 10,000’ or to test
the Cretaceous.
• Perlas:
– Sub-Periods 1 & 2 (3 Years) Acquire, process and
interpret seismic data.
– Sub-Periods 3 & 4 (3 Years) Drill 2 wells to 10,000’ or
to test the Cretaceous.
Minimum Work Program - Tyra
Minimum Work Program - Perlas
Contract and Fiscal Terms
Wells Drilled
Evidence for Positive
Petroleum System
•
•
•
26 wells drilled, 10 have
oil or gas shows, at least
two have tested
measurable
hydrocarbons.
Shell Perlas#1 well tested
350 bo/day
Shell Perlas#1 confirmed
Eocene source rock
Geologic and Geophysical
Interpretation
Seismic Mapping
Due to the unavailability of the well data (logs, litho and bio
stratigraphy) the stratigraphy was based on the horizons mapped by
Fugro-Geoteam AS
The main horizons mapped were
•Lower Eocene (approximate equivalent to limestone reservoir
that tested oil in Perlas-1
•Middle Eocene (top of Punta Gorda Formation)
•Middle Miocene (top of Mosquitia Formation)
•Unable to map top of Cretaceous with this data.
A special algorithm was applied to the seismic data in order to
enhance seismic-stratigraphic features
Geologic and Geophysical
Interpretation
Geologic and Geophysical interpretation and
mapping was based on the following data:
•Geophysical Data
•9,731km of. various seismic surveys
acquired during the 70’s and
reprocessed by Fugro in 2000
•3,096 km of new seismic acquired and
processed by Fugro in 1999
•3,096 km of magnetic and gravimetric
profiles acquired and processed by
Fugro in 1999
•Well Data
•Limited information on previous wells
obtained through an interpretation
report prepared by Fugro-Geoteam AS
in 2001
Depth Seismic Map
Lower Eocene
Seismic interpretation and
structural map indicate
•Intense thrusting and strike slip
faulting
•The Nica-Tinkham ridge is the
result of transpressional
deformation along a major strike
slip fault
•Tectonic blocks controlled the
sedimentation, particularly the
development of reef system
along the elevated parts of fault
blocks
•The most prominet tectonic
high of the area, the NicaTinkham ridge, traverses both
Tyra and Perlas blocks
Reserve Potential
• Identified 4 large structural closures along the
Nica-Tinkham Ridge at the top of the Eocene.
• Shell #1 Perlas tested 350 BOPD from the Eocene.
• Potential Eocene reserves assuming: 30 meters of
pay, porosity of 20%, oil saturation of 65%, recovery
factor of 35%. Based on variations in size of closure:
– P10: 10 Billion Barrels
– P50: 4 Billion Barrels
– P90: 1.5 Billion Barrels
• Potential Cretaceous reserves are not quantified but
could be even larger.
Potential Resources
Regional Cretaceous
Carbonate Fields
Mexico Reforma/Cantarell Area:
Over 15 Billion Barrels of Oil
Recoverable
Guatemala Rubelsanto Field:
50 Million Barrels of Oil Recoverable
Infinity
Concessions
Venezuela
Maracaibo Basin:
Over 1 Billion
Barrels of Oil
Recoverable
Early Cretaceous Tectonic
Reconstruction
Reforma/Cantar
ell
Rubelsanto
Nicaraguan
Caribbean Shelf
Lake
Maracaibo
Area
Cretaceous Carbonate
Outcrops
Nicaraguan Cretaceous
Analogs
•
•
•
•
•
La Paz Field – Venezuela
Lama Field – Venezuela
La Reforma Area – Mexico
Cantarell Complex - Mexico
Rubelsanto Field - Guatemala
Lake Maracaibo Area
Production
Size of Nica-Tinkham
Ridge Captured by
Infinity
La Paz Field - Venezuela
• Production from dense Cretaceous carbonates with low
matrix permeability and fractured basement.
• Structure related to complex wrench fault tectonics.
• Initial Cretaceous discovery well drilled in 1944 to 1,800’
produced at a rate of 1000 BOPD.
• Development well P-84 produced at a rate of 30,000
BOPD.
• Field production peaked at 160,000 BOPD in 1950.
• By 1992 field had produced 867 million barrels of oil with
572 million from the Cretaceous carbonates.
• Ultimate recovery is expected to be 1,041 million barrels
of oil with 63% from the Cretaceous carbonates.
La Paz Field X-Section
Onshore Nicaragua/Honduras
Cretaceous Outcrops
Onshore Nicaragua
Cretaceous Outcrops
Cretaceous
Carbonate
outcrops
Conclusions
• Infinity’s Nicaragua concessions have the
potential for billions of barrels of oil
reserves.
• Infinity’s Nicaragua concessions cover 1.4
million acres.
• The concessions capture an untested
geological structure over 120 miles long.
• Work commitments and fiscal terms are
very favorable and manageable.
3 Year Plan
Timing
•
Complete Environmental Impact Study in
order to shoot 3D seismic.
•
Finalize partnership with industry partner that
includes a drilling, work program, carried
interest and up front cash contribution.
3rd – 4th quarter 2013
•
Shoot 3D seismic and evaluate data.
1st quarter 2014
•
Begin Environmental Impact Study for drilling
sites identified by 3D seismic.
2014 - 2015
•
Begin drilling of a minimum of 3 wells.
1st quarter 2013
Infinity Energy Resources, Inc.
INFINITY
ENERGY
RESOURCES,
INC.
NICARAGUA
EXPLORATION
PROJECT
Blocks Perlas and Tyra
December 2012
10 Billion Barrels of Recoverable Resources
10 Billion Barrels of Recoverable Resources
1 Billion Barrels of Recoverable Resources
10 Billion Barrels of Recoverable Resources
1 Billion Barrels of Recoverable Resources
90% Given to Partner
100 Million Barrels of Recoverable Resources
10 Billion Barrels of Recoverable Resources
1 Billion Barrels of Recoverable Resources
90% Given to Partner = 100 Million Barrels of Recoverable Resources
Using Only $12.00/Barrel of In-The-Ground Value
$12 x 100mm = $1,200,000,000
10 Billion Barrels of Recoverable Resources
1 Billion Barrels of Recoverable Resources
90% Given to Partner = 100 Million Barrels of Recoverable Resources
Using Only $12/Barrel of In-The-Ground Value: $12 x 100mm =
$1,200,000,000
If INFINITY has 25mm Shares Outstanding
$1,200,000,000 ÷ 25mm Shares = $48 Per Share Valuation
10 Billion Barrels of Recoverable Resources
1 Billion Barrels of Recoverable Resources
90% Given to Partner = 100 Million Barrels of Recoverable Resources
Using Only $12/Barrel of In-The-Ground Value: $12 x 100mm = $1,200,000,000
$1,200,000,000 ÷ 20mm Shares Outstanding = $48 Per Share Valuation
So with only a 1% probability, using $12.00 per barrel,
should give us a $48 per share price value upon securing
the financial means to develop the concession.
Infinity Energy Resources, Inc.
INFINITY
ENERGY
RESOURCES,
INC.
NICARAGUA
EXPLORATION
PROJECT
Blocks Perlas and Tyra
“IFNY”
December 2012