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South American Oil South American Oil Document Transcript

  • South American Oil & Gas Exploration and Production Exploration High-Impact Colombian Energy Exploration & Production NASDAQ OTC BB: PSEG
  • Profile PetroSouth Energy Corp. is a publicly traded oil and gas exploration and production company headquartered in Houston, Texas with an operations base in Bogotá, Colombia. PetroSouth’s mission is to provide new energy solutions for growing global demand through the strategic exploration and development of high-impact energy PetroSouth’s mission is projects in Colombia. to provide new energy Company Profile The Company currently owns participation stakes in solutions through the strategic exploration and development of two separate Colombian blocks representing over high-impact energy 133,000 total acres, combined potential reserves in excess of 220 million barrels of oil (MMBO), and projects in Colombia. Table of Contents established oil production. PetroSouth’s 20% stake in the 108,333-acre Talora Company Profile 2 Block represents five prospects with combined Colombia Today 4 potential reserves of 209 million barrels of oil (MMBO)1, while its 16% stake in the 25,000-acre Company Projects 6 Buenavista Block represents one producing field, one International Colombian Producers 8 prospect, and three leads with combined potential Leadership 10 reserves of over 13 million barrels of oil (MMBO). Contact Info 11 1 Petroleum Equipment International, 2005 PetroSouth Energy is among the wide range of oil and gas production companies already tapping Colombia’s proved resources: 1.5 billion barrels of oil and 4.5 trillion cubic feet of natural gas. 2 PETROSOUTH ENERGY CORP HIGH-IMPACT COLOMBIAN ENERGY EXPLORATION & PRODUCTION 3
  • Investment-Friendly Environment Colombia is currently one of the friendliest South American countries in terms of oil and gas regulations and royalties. In 2003, Colombia’s National Agency for Hydrocarbons (ANH) created a new energy policy, which requires Ecopetrol, the state-owned hydrocarbon company, to compete with other oil and gas companies for exploration and production contracts. Colombia Today The new policy also allows private companies such Tapping Colombia’s Reserves benefits as 100% ownership upon exploration The combination of Colombia’s investment- success, while incorporating a generous sliding friendly environment, national security, and royalty scale starting at 8% on production of 5,000 abundant hydrocarbon reserves has attracted barrels per day or less. In response, $367 million in small and medium-sized energy companies, oil investment contracts were established between such as PetroSouth Energy, as well as major the Colombian ANH and private investors in 20051. players, such as BP and Chevron. The New Colombia State and private energy companies in Colombia Unlike the 1980s, there is a new stability and are currently producing 580,000 barrels of oil security in Colombia, America’s closest Latin equivalent per day (BOED), of which 300,000 American neighbor. Twice-elected president Álvaro BOED is exported. In 2005, exploration efforts Uribe has created a safe country that attracted produced an additional 19 MMBO of new over 1.9 million tourists in 2006, a 48% increase reserves1, and Colombia’s total proved oil over 20052. reserves stood at 1.5 billion barrels. CNBC.com points out that Uribe’s policies have also Meanwhile, natural gas production in 2003 fostered profound economic gains that account amounted to 214 billion cubic feet (BCF), and for Colombia being called the “extreme emerging Colombia’s total proved gas reserves as of 2005 market”: lower interest rates, GDP growth of 6.8% amounted to 4.5 trillion cubic feet (TCF)4. in 2006, and the Colombia Stock Exchange Index (IGBC) surge of 1300% since 20013. By 2005, petroleum and petroleum products had grown to represent 26.2% of Colombia’s Adding to the positive foreign investment exports5. atmosphere is the nation’s stable economy, with estimated GDP per capita of $7,900 and $14.96 billion of foreign exchange and gold reserves 1 U.S Department of State in 20054, and the spirit of cooperation between 2 Colombian Ministry of Commerce, Industry and Tourism the governments of Colombia and the US, as 3 CNBC.com, Investing in Colombia, July 2007 indicated by 40.4% of the country’s exports going 4 Central Intelligence Agency’s World Factbook 5 The Economist (2005 numbers) to America5. 6 US Energy Information Administration (2005 numbers) Best of all, Colombia exports 196,000 barrels of oil Colombia to the US every day6. 4 PETROSOUTH ENERGY CORP HIGH-IMPACT COLOMBIAN ENERGY EXPLORATION & PRODUCTION 5
  • PetroSouth currently has participation stakes in two separate Colombian blocks representing 133,333 total acres, combined potential reserves Projects Buenavista Block Project PetroSouth has a 16% participation stake in the Buenavista Exploration and Production Contract. The operator and majority partner is UTO at 84%. of 222.01 million barrels of oil (MMBO), and established production on one block. The Buenavista Block lies just northeast of Bogotá, Colombia. The 25,000-acre contiguous Company Projects parcel of land contains the currently producing Bolivar field, the Bolivar prospect, and three leads, representing combined potential reserves of over 13 million barrels of oil (MMBO). The Bolivar Field represents potential reserves of 2.95 million barrels of oil. Included in the field is the Talora Block Project La Luna formation, covering an area of 700 acres. PetroSouth Energy has a 20% participation stake in the Talora Exploration and Exploitation PetroSouth’s Bolivar 1 well is currently in Contract. The operator and majority partner is production, tapping the La Luna Reservoir at Petroleum Equipment International at 60%. approximately 3,000 feet, while the Company plans to drill the Bolivar Une Prospect 3,000 feet The Talora Block lies just southwest of Bogotá. Talora Block Potential Reserves in MMBO deeper in the same zone in Q3 2007. The 108,333 acre contiguous parcel of land Lead/Prospect Potential Reserves* In USD** Buenavista Block Activity & Evaluation contains five prospects with combined potential Lead 1 - Piedras Deep 120.44 MMBO $7,226.4 M Buenavista Block Potential Reserves in MMBO Lead 2 52.61 MMBO $3,156.6 M reserves of 209 million barrels of oil (MMBO)1. Field (F) Potential Reserves In USD* Lead 3 21.44 MMBO $1,286.4 M Prospect (P) (P50) Lead 4 13.54 MMBO $812.4 M Lead (L) Lead 5 0.97 MMBO $58.2 M Nearby Production & Opportunities Bolivar LL (F) 2.95 MMBO $177.0 M Total 209.01 MMBO $12.54 B Several fields in close proximity to the Talora Bolivar Une (P) 4.21 MMBO $252.6 M Block are active oil producers. *Source: Petroleum Equipment International, 2005 West 1 (L) 2.79 MMBO $167.4 M **Assuming $60 per barrel West 2 (L) 2.23 MMBO $133.8 M East 1 (L) 0.95 MMBO $57.0 M For example, Brazil’s state-owned Petrobras Total 13.13 MMBO $787.8 M has operated the Guando field just southeast of the Talora Block since November 2002. By *Assuming $60 per barrel Analog Field: Guando at 33,000 BOPD December 2005, 70 producing wells had been drilled in the field2, which has total recoverable Operated by Petrobras [NYSE: PBR]. Nearby Fields & Production reserves of approximately 117 million barrels, The Buenavista Block is located 38 miles and is currently yielding 33,000 barrels of oil northwest of Colombia’s largest oil fields, per day (BOPD)3. the Cusiana/Cupiagua complex, operated by industry giant BP 4. Further south, one of PetroSouth’s Talora Block partners recently completed six successful BP discovered the Cusiana and Cupiagua fields drill stem tests, establishing the presence of in 1990. Oil from the fields, which reached peak a significant oil accumulation with combined production of 434,000 barrels per day in 1999, production flow rate of up to 5,906 barrels of oil is transported by the 500-mile Ocensa pipeline, per day (~$354,000 USD @ $60/barrel). and represents BP’s main activity in Colombia5. While the 2004 Talora contract has a 6-year Colombia’s second largest field, Caño Limón 4, exploration period and 24-year production lies to the northeast of the Buenavista Block. period, PetroSouth is also actively pursuing the In 2005-2006, existing 2D seismic was reprocessed Caño Limón was discovered by Occidental in acquisition of additional potential oil and gas and interpreted, allowing the existing Bolivar-1 Well 1983, reached peak production of 208,000 gross The nearby Guando Field has 70 producing wells, 117 million barrels opportunities within Colombia. to be evaluated and re-entered to establish Petro- barrels per day in 1990, and today represents of recoverable reserves, and produces 33,000 barrels of oil per day. South as both a Colombian explorer and producer. one-third of Colombia’s total production6. 1 Petroleum Equipment International, 2005 2 Society of Petroleum Engineers, 2006 3 Petrobras website 4 U.S. Energy Information Administration 5 BP website, May 2007 6 Occidental website, May 2007 6 PETROSOUTH ENERGY CORP HIGH-IMPACT COLOMBIAN ENERGY EXPLORATION & PRODUCTION 7
  • Exxon-Mobil Corp. NYSE: XOM Market Cap: $511.73 B ExxonMobil’s operations in the Americas accounted for roughly 33% of the company’s 2005 net oil and Total S.A. gas production, and about 39% of NYSE: TOT upstream earnings. The company Market Cap: $366.10 B owns a 40% interest in the 11 million acre Tayrona block off Colombia’s Total is an integrated oil and gas company with operations in over 130 British Petroleum (BP plc) north coast in the Caribbean NYSE: BP Sea. Activity in 2005 consisted of countries. The company has been active Market Cap: $232.45 B technical evaluation in preparation in Colombia over the years through for acquisition of 3D seismic data its subsidiary, TEMPA, which holds Chevron Corporation Petrobras LUKOIL ADR BP’s main Colombian activity is within NYSE: CVX NYSE: PBR London Stock Exchange: LKOD planned for 2006 2. interests in the Cusiana and Cupiagua a few hundred kilometers of Bogotá, Market Cap: $193.11 B Market Cap: $148.03 B Market Cap: $141.80 B fields. Oil from the fields is exported by at two major oil finds the company pipeline to the coast, while gas is sold made in the early 1990’s a few years Chevron’s energy activities in Colombia The Brazilian-owned Petrobras has LUKOIL Overseas, a fully affiliated domestically, mainly in Bogotá. The after arriving in the country. To date, BP began in the late 1920s, and include been active in Colombia since 1972, company of LUKOIL, signed a Colombian company acquired additional Colombian has drilled over 125 wells in Colombia, significant oil and gas discoveries with current production in the country exploration and production contract in exploration rights in Q3 2006 3. reaching peak production in 1999 of in the 1960s and 70s. Currently, the of 51,000 barrels of oil equivalent a April 2002 on the Condor contract block. 434,000 BOED. Today, the company company operates three gas fields in day (BOED). In 2000, the company LUKOIL holds 70% in the project with the employs 480 people in the country, and northern Colombia. The company’s was responsible for one of the largest remaining 30% held by the Colombian partners with Ecopetrol and TEMPA 4. total daily average production of Colombian discoveries in fifteen years: state oil company ECOPETROL. Situated International natural gas in 2005 was 465 million the Guando Field, 110 kilometers in the Llanos basin, the Condor block has cubic feet per day, or approximately southwest of Bogotá. Petrobras is estimated recoverable reserves of roughly 75% of Colombia’s total production 5. partners in the field with Colombian 2 billion barrels of oil equivalent.7 Colombian Producers Producers state-owned Ecopetrol, and Nexen, Inc.6 Colombia’s foreign investment- friendly environment and extensive production infrastructure has resulted in over 70 independent energy companies operating in the Occidental Petroleum Corporation Talisman Energy Inc. Nexen, Inc. Petrominerales Ltd. Pacific Stratus Energy Ltd. country, making oil the country’s NYSE: OXY NYSE: TLM NYSE: NXY TSX: PMG TSX: PSE Market Cap: $49.34 B Market Cap: $20.31 B Market Cap: $16.79 B Market Cap: $969.0 M Market Cap: $754.9 M leading export and source of foreign income1. Occidental discovered the billion-barrel Talisman Energy is active in over 16 Nexen is an independent Canadian- Petrominerales is a Bogotá, Colombia Pacific Stratus is a Canadian-based oil plus Caño Limón oil field in northeast countries with average production based global energy company with based hydrocarbon company, 80.7% and gas company focused on Colombia, Colombia’s Llanos Basin in 1983. of 470,000 BOED at year-end 2005. total proved reserves of 843 million owned by Petrobank Energy and with a total land base exceeding one The field reached peak production of Talisman’s subsidiary, Talisman barrels of oil equivalent (MMBOE) Resources Ltd. With a 2.5 million million acres, and proved producing 208,000 gross barrels per day in 1990, (Colombia) Oil & Gas Ltd., is participating as of year-end 2004. The company’s acre exploration land base in two of resources of 6.4 MMBOE. The company still accounts for a third of Colombia’s in an exploration program in a known 20% partnership with Petrobras in Colombia’s most prolific basins, the has interests in three producing total production, and transformed hydrocarbon basin, and holds interests Colombia’s Guando Field yielded 5,000 company’s oil production in Q3 2006 Colombian oil fields – Guaduas (90.6%), Colombia from an oil importer to oil in the Upper Magdalena Valley region; in BOED after royalties in 2005, or roughly averaged 2,420 BOED, a 126% increase Rio Ceibas (27.27%), and Puli-7 (50%) exporter. The Llanos Basin itself has the El Conchal and El Caucho Blocks; and 2% of the company’s approximately over the comparative 2005 period. – with cumulative production of 5,000 yielded almost 5 billion BOE to date 8. in the Llanos Foothills region of north- 250,000 BOED production rate 10. The company plans for significant BOED.11 central Colombia9. exploration expansion in Q1 2007.1 1 Petrominerales website, Dec. 2006 4 BP website, Dec. 2006 7 LUKOIL Overseas website, July 2007 2 Exxon-Mobil website, Dec. 2006 5 Chevron website, Dec. 2006 8 Occidental website, Dec. 2006 10 Nexen website, Dec. 2006 8 PETROSOUTH ENERGY CORP 3 Total website, Dec. 2006 6 Petrobras website, Dec. 2006 9 Talisman website, Dec. 2006 11 Pacific Stratus website, Dec. 2006 HIGH-IMPACT COLOMBIAN ENERGY EXPLORATION & PRODUCTION 9
  • PetroSouth Energy benefits from a seasoned leadership Juan Carlos Robles – Chief Executive Officer (CEO) Juan joined the PetroSouth leadership team in 2007, bringing with him a 20-year background as a proven oil executive and geologist in exploration, Leadership drilling, and production activities in Colombia. As team with extensive CEO, he will be responsible for the strategic and Colombian energy technical direction of the company. industry experience. Juan gained valuable major player experience first at BP and then Shell’s Hocol S.A. He then expanded his executive experience with the giant Gustavo Suárez Camacho Amoco Colombia Petroleum Company. Moving – Legal Counsel through roles such as Operations Geologist, Chief of Exploration Operations, and Exploration Gustavo Suárez Camacho has over 25 years legal Coordinator, he continued to explore the country’s experience and has represented the Colombian on-shore and off-shore basins. interests of some of the world’s largest oil and gas companies. In 1999, Juan became Hupecol’s Colombian representative. While in charge of the formation Currently a Partner in Bogotá, Colombia’s Zuleta of the company and the discovery of the Tambaqui & Partners Legal Group, Gustavo formerly acted and Jaguar oil fields, Juan also managed the as Legal Director of BP Exploration Company company’s E&P activities in the Llanos Basin (Colombia) Ltda. from 1992 to 2000. Other BP- Leadership Contact Info within budget and time schedule. related posts include Political Advisor to foreign affairs and communications in Latin-American By 2003, he was managing his own company issues of BP International in London, England, and promoting new Colombian E&P projects with Political Advisor to BP Gas Marketing Limited in 50 MMBO of potential reserves sold to various London, England. investors. Juan also played a key role in the For additional information on discovery of Colombia’s Ocumo, Carupana, As well as legally representing Chevron Texaco’s PetroSouth Energy, please contact: Toruno, Careto, and Arauco oil fields working as interests in Colombia, Gustavo was among the an independent geologist. group of attorneys that elaborated Colombia’s new hydrocarbon exploration and exploitation Juan earned his geologist title at the Universidad agreement, and has acted as external consultant PetroSouth Energy Corp. – USA HQ Nacional de Colombia, and a postgraduate to Colombia’s National Agency for Hydrocarbons 20333 State Highway 249 degree in digital image processing and pattern (ANH) since 2004 in affairs related with oil contracts Suite 200 - 113 recognition from the International Institute for and the administration of State reserves. Houston, TX Geo-Information Science and Earth Observation Gustavo received his law degree from Universidad 77070 (ITC) in The Netherlands. A certified geologist with the Professional Geological Board of Colegio Mayor de Nuestra Señora del Rosario, Fred B. Zaziski Colombia, he is also an active member of the Bogotá D.C., and an MBA for executives from Tel: +1-281-378-1563 – Chairman Colombian Association of Petroleum Geologists INSEAD, Fontainebleau, Francia. His additional Fax: +1-281-271-8600 and Geophysicists. studies include Political Science and Public Fred leverages 29 years of work experience to provide Administration as well as Arbitration. E-mail: info@petrosouthcorp.com PetroSouth Energy Corp. with the knowledgeable Web: www.petrosouthcorp.com leadership necessary for developing assets and Felipe Pimienta Barrios minimizing overhead. – Chief Financial Officer (CFO) Ernst & Young Fred’s energy industry background includes years Felipe Pimienta draws on his formal education – Auditors of international assignments in management and and range of experience in optimizing allocation executive positions for companies such as Falcon of resources and generating revenue growth. Ernst & Young is an international corporate services Colombian Operational Office Natural Gas Corp., Halliburton, National Petroleum leader active in 140 countries. The firm has been Torre Ultrabursatiles Technology Company, and ComOxy. Felipe formerly held senior analyst and executive established in Colombia since 1963, and currently Cra 7 No. 73 – 55 Piso 7 account manager positions at Bansuperior, where has over 300 professionals across four Colombian Bogotá During his years in the industry, Fred has been his responsibilities included, among other things, offices. Colombia involved in the majority of aspects of the oil and gas budget management and auditing. business including land acquisition, exploration, The firm’s Global Oil & Gas Center is a worldwide drilling, completion, production, remediation and Most recently at Citibank, Felipe acted as an network of energy professionals representing one Tel: +57-1-3138337 marketing. asset management executive, where he built and of the largest providers of professional services to Fax: +57-1-3138355 developed an exclusive portfolio of profitable the oil and gas sector, with 16% of the industry’s While having worked in West Africa, the Middle wealth management accounts while leveraging most important companies as clients, including East, Europe, and the United States, Fred is key leads and his local knowledge to further BP, ConocoPhillips, and Brazilian state-owned currently a resident of Houston, Texas. expand the bank’s business. Petrobras. A member of The Society of Petroleum Engineers Felipe studied business English at University of Ernst & Young provides a wide range of services, and The American Petroleum Institute, Fred holds a California, Los Angeles; Finance and International from accounting and auditing to tax reporting and Petroleum Engineering degree from the University Business at Universidad Sergio Arboleda, Bogotá, operations, tax advisory, business risk services, of Pennsylvania and an MBA obtained while on Colombia; and earned an MBA from San Pablo technology and security risk services, transaction assignment in Cairo. CEU, Madrid, Spain. advisory, and human capital services. 10 PETROSOUTH ENERGY CORP HIGH-IMPACT COLOMBIAN ENERGY EXPLORATION & PRODUCTION 11
  • PetroSouth Energy Corp. – USA HQ 20333 State Highway 249 Suite 200 - 113 Houston, TX 77070 Tel: +1-281-378-1563 Fax: +1-281-271-8600 E-mail: info@petrosouthcorp.com Web: www.petrosouthcorp.com INVESTOR RELATIONS: TOLL FREE: 1-888-977-6884 ir@petrosouthcorp.com NASDAQ OTC BB: PSEG Oil and Gas