Energy Caribbean Conference

energy
CARIBBEAN
2008
Offshore Exploration
Opportunities in
Guyana
Kerry Sully
President & CEO
Who is CGX?
•
•
•
•
•
Canadian listed company focused on Guyana
exploration (OYL on TSX-V)
Completed first solid state 2D seismic in basin in 1999
Forced off Eagle location in 2000, but drilled back-up
Horseshoe Well to 13,000 feet in 30 days
During Maritime Border resolution, completed
thorough re-interpretation of all Guyana well, seismic
and geological data
Currently shooting a 2400 sq km 3D seismic program
•
1000 sq km net to CGX
Guyana – Suriname Basin is a
Proven Hydrocarbon System
Abary – Shell 1975
• In-well blow out
• 37 API oil in mud
Tambaredjo
and
Calcutta have
> 1.0 billion
bbls OOIP
(but only 18 wells drilled beyond near-shore)
3
50 Years of Exploration Offshore Guyana
Company
Years
Wells
2D Seismic, km
California Oil
1958 - 60
3,000 stations
Continental / Tenneco et al
1965 - 71
2
Royal Dutch Shell
1965 - 75
7
Comoro / Tricentral
1970 - 74
Offshore Exploration Co
1972 - 75
Deminex
1972 - 76
3,962
Seagull / Denison
1978 - 84
2,564
Lasmo / BHP
1988 - 91
3,300
Guyana Expl / Total / Petrel
1988 - 92
Mobil
1991 - 94
3,577
YPF / CGX
1997 -
1,750
CGX
1998 -
Century / CGX
1997 -
Esso
1999 -
1
1
2,038
2,200
1,806
4
Oil – 14% of Undiscovered Potential of Latin America
(pre Tupi!)
15.2 Billion Barrel
Mean Undiscovered
Resource Potential in
Guyana Suriname Basin
5
Gas – 8% of Undiscovered Potential of Latin America
42 TCF of Gas
Mean Undiscovered
Resource Potential in
Guyana Suriname Basin
6
Guyana’s PPLs
• Corentyne
100% CGX
• Georgetown
15% Repsol*
30% YPF
30% Tullow*
25% CGX
• Annex
100% CGX
• Pomeroon
100% CGX
• Stabroek
100% Esso
• Berbice
100% ON
• Block X
100% Sadhna
• Takutu
45% Groundstar
55% Brazalta
Map Source: Wood Mackenzie
Upstream Insight; Nov 2008
* Government
Approval Pending
7
Current Exploration Guyana
Petroleum
Prospecting
Licence
Operator
Partners
Activity
CGX, Repsol, Tullow
3D - 1,851 sq km
OFFSHORE
Georgetown
YPF Guyana
Corentyne
CGX
3D – 536 sq km
Annex
CGX
Data review
Pomeroon
CGX
Data review
Stabroek
Esso
2D
Deepwater
PGS
Speculative shoot
2D ~ 4,500 km
Brazalta
2 wells pending
ONSHORE
Takatu
Groundstar
Berbice
ON
3 wells pending
Block X
Sadhna
1 well pending
8
3D Seismic
Seismic
Grid
• Fugro R/V GeoPacific
• 8 streamers
• 6,000 m solid-state
• Corentyne
• 536 sq km
• Georgetown
• 1,851 sq km
• CGX share
• net 1000 sq km
• $15.5 million
9
Potential
3,200 m
Lower Tertiary Turbidites
Stratigraphic Traps
Wishbone, Eagle, F1-F4
4,200 m
Shelf Margin Deltas
Structural Traps
5,400 m
Cretaceous Basin Floor Fan
Structural Traps
Eagle Deep, Abary Deep
6,300 m
7,000 m
Turonian
Canje Source Kitchen
Potoco Carbonates
Structural Traps
10
Resource Estimate of 2.7 Billion Barrels
For 4 Prospects on Corentyne PPL Only
Prospective Oil Resource
billions of barrels
Prospect
Low Estimate
P90
Best Estimate High Estimate
P50
P10
Eagle Shallow
0.1
0.5
2.0
Wishbone Shallow
0.2
0.4
1.0
Eagle Deep West
0.4
0.9
1.6
Eagle Deep East
0.4
0.9
1.6
Sum of Prospects
1.1
2.7
6.2
Independent Resource Assessment: Gustavson
Associates
11
Drilling Considerations
Water depth
~ 300 feet
Ultra HPHT Tier II
370 – 410 F
15 – 18 k psi
Expandable Casing Design
Gorilla Class Rig
Deep well to 19,500 ft
- to 22,000 ft
$85 mm
$90+ mm
Jefferies Randall & Dewey have been retained as
an advisor to market a joint venture farmout to drill
a Deep Well on the Corentyne PPL.
Jackup Drilling Rig
12
Guyana – A Good Business Environment
•
Democracy
•
English speaking
•
Production Sharing Petroleum
Prospecting Licence
•
Legal system based on English
common law
•
Company Act based on Canadian
Business Corporations Act
•
Strong associations with UK, USA
and Canada
13
Future Licensing
GGMC (Petroleum Division) Position
Areas to be evaluated and a preferred procedure for awards
determined that could include competitive bidding
Offshore Blocks
Sub Blocks which become
available through relinquishment
Nearshore Blocks
Under re-evaluation
Onshore Blocks
14
Guyana
On the Brink of Exploration Success?
15