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Exploring World-Class Potential Offshore Guyana Canje Block Corporate Presentation | Second Quarter 2016
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Disclaimer >This presentation contains certain “forward looking statements” within the meaning of applicable securities legislation. All statements, other than statements of historical fact, included herein, including potential partnerships and the future plans of JHI Associates, Inc. (“JHI”) are forward looking statements that involve various risks and uncertainties. The
reader is cautioned not to place undue reliance on the forward looking information contained in this presentation. In making an investment decision, prospective investors must make their own determinations as to the reliability of this forward looking information. The forward looking statements and information contained in this presentation are made as of
the date listed on the title page hereof and JHI undertakes no obligation to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable laws.
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Corporate Profile History > Private, founded in 2014 > Focused exclusively on the Guyana-Suriname Basin > Farmed into Guyana-based Mid-Atlantic Oil & Gas, Inc. (25%) > Farmed in ExxonMobil (35%) as Block Operator
Majority Participating Interest in Canje Block (40%) > 35 km from ExxonMobil’s basin-opening Liza #1 discovery > 6,021km2 (>250 U.S. GoM blocks) > Multiple prospect leads identified
Experienced Team > Offshore development and regional expertise > Raised over $1 billion in natural resources development capital in the last 10 years
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Our Team John Cullen, CEO & Director >
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30 years experience in public company financing, corporate/capital structuring and management 20+ years corporate experience in Guyana petroleum exploration Founded a number of public international resource companies following 15 years in the Canadian investment industry
Richard Boyce, Executive Vice President & Director >
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More than 33 years in worldwide oil and gas development as geoscientist and engineer Former Chief Geophysicist for Hunt Oil with significant deepwater exploration expertise including: Nigeria, Sao Tome & Principe, Sierra Leone and Togo Led Hunt’s onshore Guyana exploration Proven oil finder: >300 MMBO in Yemen adding 50,000 bbl to daily production
Scott Young, Vice President, Corporate Development > >
Expertise in natural resources finance Extensive institutional finance networks in North and South America, Europe and Hong Kong
Frederick Cedoz, President & Director >
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Attorney specializing in energy industry mergers and acquisitions, structuring and financing international oil and gas projects Over 15 years advising institutional investors on the politics of energy Government clients have included: Nigeria, Sao Tome & Principe, Republic of Congo, Ecuador, the United States Department of Energy and the Canadian provinces of Alberta & Saskatchewan
Andres Tinajero, CFO >
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Over 20 years experience supporting a broad range of industries, including oil and gas, mining, manufacturing and technology Served as CFO and Vice President of Finance for several mid-sized public companies
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Our Strategy FIRST IN – directly negotiate block licenses using seismic options; avoid immediate well commitments; perform initial geo-technical analysis FARM-OUT – secure major company partners to undertake 3D seismic and drilling commitments TAKE ADVANTAGE of investment climate during low-price environment to discover and develop oil reserves economic in sub$45/bbl environment
IN THE MARKET – selling oil when prices recover
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Our Accomplishments 2014
2015
2016
START-UP STRATEGY
EXECUTING THE PLAN
ACCELERATING EXPLORATION
> Assisted Mid-Atlantic to negotiate the Canje exploration license and work program > Sought farmout opportunity with world-class exploration companies > Assembled a core team: > Over 150 years combined oil & gas experience > Raised >$1 billion in exploration capital over the past decade
> JHI controls the majority participating interest in the Canje Block > Farmed in ExxonMobil as Block Operator with a 35% Participating Interest in November 2015 > Licensed 3,000 km of 2D seismic to begin geotechnical review of the Canje Block
> 3D survey expected to begin Spring 2016 > Identify drillable prospects > Begin discussions with potential drilling partners
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Work Program Timeline
2015
2016
License Issued
3D Seismic Acquisition
EFFECTIVE DATE MARCH 4, 2015
SPRING – SUMMER
2017 Prospect Analysis & Well Planning
Farmout Process
JAN – JUNE
Obtain Government Approval of the Farminee
Processing & Interpretation Pre-Farmout of 3D Seismic Marketing FALL – WINTER
2018
JULY – DEC
2019 2020 2021 2022 2023 2024 2025 Well Commitment (optional) 2019 – 2022
JAN – SEPT
OCT – DEC
Well Commitment (optional) 2022 – 2025
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JHI’s Canje Block Bordering ExxonMobil’s Basin-Opening Discovery
Block Name Canje Working Interest 35% ExxonMobil, Operator 40% JHI 25% Mid-Atlantic Oil & Gas
Location ~180 – 300 km offshore Guyana Area ~1,487,800 acres/ 6,021 km2 Water Depth ~1700 – 3000 meters
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“Most Important Oil Discovery of 2015”* JHI’s Canje Block Offsets ExxonMobil’s Liza #1 Discovery Block Name Stabroek Participating Interest 45% ExxonMobil, Operator 30% Hess 25% Nexen/CNOOC Liza #1 >“Significant discovery” of more than 295 feet of oil-bearing sandstone reservoirs1 >35 km from Canje border 2016 Exploration Program >Liza #2 Spud February 2016 >Hess budgeting $250-320MM in drilling and pre-development spend in 20162 3D Seismic >17,000 km2 acquired post Liza discovery3
* “Energy Thoughts,” Tudor, Pickering, Holt, January 8, 2016
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Industry Comments on Liza Potential The Stabroek block “contains the Liza-1 oil discovery, the most important oil discovery of 2015 in our view (TPHe 500mmboe).” — “ENERGY THOUGHTS,” TUDOR, PICKERING, HOLT, JANUARY 8, 2016
“We hear it’s off the charts.” [When asked about the quality of the geology on Liza.] “…first of all the rock property is fantastic.” — HESS Q4 2015 ANALYST CONFERENCE CALL, HESS OIL PRESIDENT GREG HILL ON LIZA
“It’s a great time to be in exploration.” — STEVE GREENLEE, PRESIDENT, EXXONMOBIL EXPLORATION COMPANY, The Lamp (view article)
[t]he economic metrics are more favorable than the global averages due to the competitiveness of the Guyanese production sharing regime. ‘The Liza project will also be well-placed to benefit from any uplift in oil prices post-development,’ according to Matthew Jurecky, GlobalData’s head of oil and gas research. — WORLD OIL, OCTOBER 22, 2015
“ExxonMobil Corp.’s significant oil discovery offshore Guyana is the most exciting thing happening in terms of Latin America exploration right now,” analysts with WoodMackenzie told Rigzone in an interview. — RIGZONE, MAY 22, 2015
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Regional Activity JHI, and Guyana-based license holder Mid-Atlantic Oil & Gas, Inc., along with our operating partner ExxonMobil, are planning a proprietary 3D seismic shoot and will learn from the following deepwater wells scheduled to be drilled by 2017.
Over $1 billion in committed drilling activity over the next 2 years
(operator listed first)
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Catalysts Propelling JHI Forward
Activity Targeted on Canje and Stabroek Blocks in 2016
ExxonMobil Farms-In to Canje Block FEBRUARY 2016 ExxonMobil OPERATOR – 35% | JHI 40% | Mid-Atlantic 25%
3D Seismic Program BEGINS SPRING 2016
Stabroek Block Multiple Well Exploration Program BEGINS FEBRUARY 2016
Canje Block Prospect Identification BEGINS FALL 2016
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Canje Block Geological Overview Canje Block
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Summary
[ [
] ]
JHI controls the majority Participating Interest (40%) in the Canje Block offshore Guyana
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ExxonMobil has farmed-in as Canje Block Operator with a 35% Participating Interest
Canje Block is adjacent ExxonMobil’s Stabroek Block – 35km from the basin-opening Liza #1 discovery
]
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Summary
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ExxonMobil is planning Stabroek drilling program for 2016 which may extend prospectivity on the block
[ [
3-D seismic survey on Canje Block set to begin Spring2016
] ]
JHI will have over 2 years post-3D interpretation to find a drilling partner
]
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Notes Slide 10
* 1. 2. 3.
“Energy Thoughts,” Tudor, Pickering, Holt, January 8, 2016 http://news.exxonmobil.com/press-release/exxonmobil-announces-significant-oil-discovery-offshore-guyana http://www.businesswire.com/news/home/20160126005794/en/Hess-Announces-2016-EP-Capital-Exploratory-Budget http://www.offshore-mag.com/articles/2015/07/3d-seismic-survey-starts-offshore-guyana.html
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Scott Young, Vice President, Corporate Development scott@jhiassociates | 705.888.2756 Frederick Cedoz, President fred@jhiassociates | 202.596.8846
JHI Associates Inc 365 Bay Street | Suite 400 Toronto | Ontario | Canada M5H 2V1
