Your SlideShare is downloading. ×
0
Investor Presentation    July 20121
Forward Looking StatementsIn the interest of providing potential investors with information regarding Shona Energy Company...
Forward Looking StatementsFor the purposes of the following, “Misrepresentation” means an untrue statement of a material f...
Corporate History & Overview•   Shona Energy Company, Inc. (“Shona”) – based in Houston, founded in January 2005, focused ...
Capitalization Structure & Financial Highlights     Common Shares                     232,675,283     Preferred Shares    ...
Value Creation & Growth StrategyEsperanza Block – Colombia    Existing firm gas sales of 14 mmcfd going to 15.5 mmcfd on J...
Overview of Assets                                                                                            Esperanza   ...
Esperanza Block - OverviewProven exploration concept with 3Dseismic and AVO anomaliesJanuary 1, 2012 Net Reserves*     P1 ...
Esperanza Block – Time Structure Map                                                                                      ...
Esperanza Block – Technical Details                                   Nelson-2 Seismic, Log, and Pressure Plot    Nelson-...
Esperanza Block – Reserve Potential(Post 2012 Seismic Program)11
Esperanza Block – Infrastructure & MarketingAlternatives                                                   Potential Sales...
Esperanza Block – Monetization     RESERVES, BCF                         PROJECT                                     ECONO...
Esperanza Block – Growth Profile                            Cumulative Capital Expenses                      100          ...
Prolific Andean Foreland BasinShona’s oil prospects are located within                                                    ...
Southern Colombian Heavy Oil Belt                                                                                         ...
Caguan Basin Assets – OverviewSerrania, Los Picachos & Macaya Blocks • Working Interests: Shona 37.5%, Hupecol (Operator) ...
Caguan Basin Assets – SeismicSerrania Fault Trap Prospect                Line Y-1973-08          Line S-2009-08           ...
Caguan Basin Assets – SeismicSerrania Four-Way Closure Prospect                                   Line S-2009-02          ...
Caguan Basin Assets - SummaryIf Successful, It Has Major Upside Potential     In management’s opinion, more than 250 MMBO ...
Prolific Andean Foreland BasinShona’s oil prospects are located within                                                    ...
Block 102 - Overview and TargetsWorking Interests: Shona 36.5%, Pluspetrol       g                      ,     p(Operator) ...
Shona Energy CompanySummary of Current SituationProducing gas asset in Colombian Lower Magdalena Basin     OpEx is low and...
Why Invest?24
Why Invest?      Value Creation25
Why Invest?Value Creation Through Exploration     Demonstrated success at Esperanza     D     t t d           tE     Signi...
Why Invest?Value Creation Through Exploration     Demonstrated success at Esperanza     D     t t d           tE     Signi...
Why Invest?Value Creation Through Exploration     Demonstrated success at Esperanza     D     t t d           tE     Signi...
Questions?29
Upcoming SlideShare
Loading in...5
×

July Investor Presentation

218

Published on

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
218
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
7
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Transcript of "July Investor Presentation"

  1. 1. Investor Presentation July 20121
  2. 2. Forward Looking StatementsIn the interest of providing potential investors with information regarding Shona Energy Company, Inc. (“Shona"), including managements assessment of the future plans and operations of Shona, certainstatements contained in this corporate presentation constitute forward-looking statements or information (collectively "forward-looking statements") within the meaning of applicable securities legislation.Forward-looking statements are typically identified by words such as "anticipate", "continue", "estimate", "expect", "forecast", "may", "will", "project", "could", "plan", "intend", "should", "believe", "outlook","potential", "target" and similar words suggesting future events or future performance In addition statements relating to "reserves" are deemed to be forward looking statements as they involve the implied potential target performance. addition, reserves forward-lookingassessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and can be profitably produced in the future. Forward looking statementsor information in this presentation include, but are not limited to, statements or information with respect to: the expected closing date and use of proceeds from the financing; potential reserves and futureproduction with respect to current assets business strategy and objectives; development plans; exploration and drilling plans; reserve quantities and the discounted present value of future net cash flows fromsuch reserves; future production levels; wells drilled (gross and net); capital expenditures; cash flow; debt levels; operating and other costs; royalty rates and taxes.With respect to forward-looking statements contained in this corporate presentation, Shona has made assumptions regarding, among other things: future capital expenditure levels; future oil and natural gasprices; future oil and natural gas production levels; future exchange rates and interest rates; ability to obtain equipment in a timely manner to carry out development activities; ability to market oil and naturalgas successfully to current and new customers; the impact of increasing competition; the ability to obtain financing on acceptable terms; and ability to add production and reserves through development andexploitation activities. Alth l it ti ti iti Although Sh h Shona b li believes th t th expectations reflected i th f that the t ti fl t d in the forward l ki statements contained i thi corporate presentation, and th assumptions on which such f d looking t t t t i d in this t t ti d the ti hi h h forward-looking d l kistatements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included inthis corporate presentation, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-lookingstatements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements willnot occur, which may cause Shonas actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied bysuch forward-looking statements. These risks and uncertainties include, among other things, the ability of management to execute its business plan; general economic and business conditions; the risk ofinstability affecting the jurisdictions in which Shona operates; the risks of the oil and natural gas industry, such as operational risks in exploring for, developing and producing crude oil and natural gas andmarket demand; the possibility that government policies or laws may change or governmental approvals may be delayed or withheld; risks and uncertainties involving geology of oil and natural gas deposits;the uncertainty of reserves estimates and reserves life; the ability of Shona to add production and reserves through acquisition, development and exploration activities; Shonas ability to enter into or renewleases; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of estimates and projections relating to production (including declinerates), costs and expenses; fluctuations in oil and natural gas prices, foreign currency exchange rates and interest rates; risks inherent in Shonas marketing operations, including credit risk; uncertainty inamounts and timing of royalty payments; health, safety and environmental risks; risks associated with existing and potential future law suits and regulatory actions against Shona; uncertainties as to theavailability and cost of financing; and financial risks affecting the value of Shona’s investments. Readers are cautioned that the foregoing list is not exhaustive of all possible risks and uncertainties.Any financial outlook or future oriented financial information in this corporate presentation, as defined by applicable securities legislation, has been approved by management of Shona. Such financial outlookor future oriented financial information is provided for the purpose of providing information about managements current expectations and plans relating to the future. Readers are cautioned that reliance onsuch information may not be appropriate for other purposes.The forward-looking statements contained in this corporate presentation speak only as of the date of this corporate presentation. Except as expressly required by applicable securities laws, Shona does notundertake any obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in thiscorporate presentation are expressly qualified by this cautionary statement.The information contained in this corporate presentation does not purport to be all-inclusive or to contain all information that a prospective investor may require. Prospective investors are encouraged toconduct their own analysis and reviews of Shona, and of the information contained in this corporate presentation. Without limitation, prospective investors should consider the advice of their financial, legal,accounting, tax and other advisors and such other factors they consider appropriate in investigating and analyzing Shona.2
  3. 3. Forward Looking StatementsFor the purposes of the following, “Misrepresentation” means an untrue statement of a material fact, or an omission to state a material fact that is required to be stated, or that is necessary to make astatement not misleading in light of the circumstances in which it was made. If this presentation contains a Misrepresentation, a purchaser in Ontario who purchases securities of Shona has, without regardto whether the purchaser relied on the Misrepresentation, a statutory right of action for rescission or, alternatively, for damages against Shona, provided that no action shall be commenced to enforce a rightof action more than (a) in the case of an action for rescission, 180 days after the date of the transaction that gave rise to the cause of action; or (b) in the case of any action, other than an action forrescission, the earlier of (i) 180 days after the purchaser first had knowledge of the facts giving rise to the cause of action, or (ii) three years after the date of the transaction that gave rise to the cause ofaction.actionShona will not be liable if it proves that the purchaser purchased the securities with knowledge of the Misrepresentation. In an action for damages, Shona will not be liable for all or any portion of thosedamages that it proves do not represent the depreciation in value of the securities as a result of the Misrepresentation. In no case will the amount recoverable exceed the price at which the securities weresold to the purchaser. Investors should refer to the applicable provisions of the securities legislation of their respective provinces or territories for the particulars of these rights or consult with a legal advisor.Forecast capital expenditures are based on Shona’s current budgets and development plans which are subject to change based on commodity prices, market conditions, drilling success, potential timingdelays and access to cash, cash flow, available credit and third party participation. Shona’s capital budget has been prepared based upon anticipated costs for equipment and services which are subject tofluctuation based upon market conditions, availability and potential changes or delays in capital expenditures.Additionally, forecast capital expenditures do not include capital required to pursue future acquisitions. Anticipated production growth has been estimated based on (i) the proposed drilling program with asuccess rate based upon historical drilling success and an evaluation of the particular wells to be drilled and has been risked, and (ii) current production and anticipated decline rates. Although the forward-looking information contained herein is based upon assumptions which Management believes to be reasonable, Shona cannot assure investors that actual results will be consistent with this forward-lookinginformation.“Best Estimate” is considered to be the best estimate of the quantity that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than the bestestimate. If probabilistic methods are used, there should be at least a 50 Percent probability (P50) that the quantities actually recovered will equal or exceed the best estimate.“High Estimate” is considered to be an optimistic estimate of the quantity that will actually be recovered. It is unlikely that the actual remaining quantities recovered will exceed the high estimate. Ifprobabilistic methods are used there should be at least a 10 percent probability (P10) that the quantities actually recovered will equal or exceed the high estimate used, estimate.“Low Estimate” is considered to be a conservative estimate of the quantity that will actually be recovered. It is likely that the actual remaining quantities recovered will exceed the low estimate. If probabilisticmethods are used, there should be at least a 90 percent probability (P90) that the quantities actually recovered will equal or exceed the low estimate.“Mean Estimate” is the statistical mean resource value for each exploration prospect. The statistical mean is dependent on the estimated probabilistic distribution of recoverable resources and is not thesame as the “best estimate” or P50 resource volume. These values can be arithmetically summed to obtain a total mean estimate for a group of prospects.“Management Estimates” means the evaluation conducted by qualified reserves evaluators of the Shona technical team, effective 01 January 2012.“Prospective Resources” are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects.Prospective resources have both an associated chance of discovery and a chance of development. Prospective Resources are further subdivided in accordance with the level of certainty associated withrecoverable estimates assuming their discovery and development and may be subclassified based on project maturity. Unless otherwise indicated herein, the Prospective Resources set out in thispresentation are unrisked, meaning that they are not risked for chance of development or chance of discovery.Estimates of unrisked Prospective Resources are pursuant to Management Estimates. There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it willbe commercially viable to produce any portion of the resources. If a discovery is made, there is no certainty that it will be developed or, if it is developed, there is no certainty as to the timing of suchdevelopment.Barrels of Oil EquivalentBarrels of oil equivalent (boe) is calculated using the conversion factor of 6 Mcf (thousand cubic feet) of natural gas being equivalent to one barrel of oil. Boes may be misleading, particularly if used inisolation. A boe conversion ratio of 6 Mcf:1 bbl (barrel) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at thewellhead.wellheadAnalogous InformationCertain noted drilling and completion data provided in this document may constitute "analogous information", such as mapping information obtained in geographical proximity to prospective exploratory landsto be held by Shona. Such information has been obtained from government sources, regulatory agencies or other industry participants. Management of Shona believes the information is relevant as it helpsto define the reservoir characteristics in which Shona may hold an interest. Shona is unable to confirm that the analogous information was prepared by a qualified reserves evaluator or auditor or inaccordance with the COGE Handbook and therefore, the reader is cautioned that the data relied upon by Shona may be in error and/or may not be analogous to such lands to be held by Shona.3
  4. 4. Corporate History & Overview• Shona Energy Company, Inc. (“Shona”) – based in Houston, founded in January 2005, focused on oil & gas exploration and development in Colombia and Peru Esperanza development and exploration block in Colombia with production, reserves and resource potential to support expanded gas marketing efforts in Colombia 3 exploration blocks in Colombia located in the country’s prolific heavy oil belt 1 exploration block in Peru located in the prolific Maranon Basin• Shona is a registered British Columbia company listed on the TSX Venture Exchange under the symbol “SHO” and on the OTCQX International under the symbol “SHOAF”• We have an experienced management team that has produced significant shareholder value throughout their careers and an independent B d i d d t Board of Di d f Directors with interests directly aligned with shareholders t ith i t t di tl li d ith h h ld• Our shareholder base is reasonably concentrated with several large shareholders January 1 2012 N t R J 1, Net Reserves* * EBITDA P1 64 BCF 2011 ($10.8 million) P2 31 BCF 2012 (proj.) $16 million P3 78 BCF Total 173 BCF *Per Collarini Associates January 01, 2012 Reserves Report4
  5. 5. Capitalization Structure & Financial Highlights Common Shares 232,675,283 Preferred Shares 190,796 Warrants 40,145,993 Stock Options 7,880,000 As of June 01, 2012: Share Price (CAD) $0.31 52 Week Range (CAD) $0.20 - $0.75 Market Capitalization (CAD) $72.1 million Cash at March 31 2012 (USD) 31, $16.9 $16 9 million5
  6. 6. Value Creation & Growth StrategyEsperanza Block – Colombia Existing firm gas sales of 14 mmcfd going to 15.5 mmcfd on January 01, 2014 Expanded marketing opportunities under evaluation supported by reserves and resource base − Additional 30 mmcfd available from existing wells, development and low-risk exploration projects − Supplementary reserves and deliverability from prospects identified in 3-D seismic programsStrategic Financial Planning Prudent and conservative expenditure program Common stock buyback program Potential restructuring of debtSerrania,Serrania Los Picachos and Macaya Blocks – Colombia Fault trap look-alike prospect to offsetting Capella Field (2.2 billion barrels OOIP) Very large, four-way closure Anticipated drilling in 2013Block 102 – Peru Focus exploration activity on trends having larger reserve potentialCorporate Development Merger and acquisitions New projects6
  7. 7. Overview of Assets Esperanza Block VENEZUELA SHONA GROSS NET PROPERTY OPERATOR Serrania COLOMBIA W.I. ACRES ACRES Block Los Pi L Picachos h Esperanza Block Shona Block 100% 60,002 60,002 (Colombia) (Geoproduction) Macaya Serrania Block ECUADOR Block Hupecol 37.5% 110,769 41,538 (Colombia) PERU Los Picachos Block Hupecol 37.5% 52,771 19,789 (Colombia) Block 102 BRAZIL Macaya Block Hupecol 37.5% 195,254 73,220 (Colombia) Block 102 Pluspetrol 36.5% 313,023 114,253 (Peru) TOTAL 731,819 308,803 BOLIVIA7
  8. 8. Esperanza Block - OverviewProven exploration concept with 3Dseismic and AVO anomaliesJanuary 1, 2012 Net Reserves* P1 64 BCF P2 31 BCF P3 78 BCF Total 173 BCFPotential 100 BCF (unrisked) on existingprospects that have AVO anomaliesCurrently evaluating five areas identified y gin the 2012 seismic program which haveAVO anomaliesWill make a gas marketing decision inQ3 2012 based on updated reservepotential8 *Gross reserves as per Collarini Associates NI 51-101 compliant reserves report effective January 1, 2012
  9. 9. Esperanza Block – Time Structure Map  3D seismic indicates that the Nelson structure has an Kite or Palmer Extension aerial extent of 1,600 1 600 (7 BCF)** acres Nelson-5 Development Well  Three wells capable Nelson-4 of 25 MMCFPD for Development Well five years y Nelson-2 Discovery Well  Five wells should allow for full field Nelson-3 development of 40 Confirmation Well MMCFPD, depending on additional gas dditi l Nelson-1 sales contracting Palmer Prospect Development Well (30 BCF)**  Palmer prospects AVO Outline show similar seismic Nelson Field characteristics as (163 BCF)* Nelson field*Gross reserves as per Collarini Associates NI 51-101 compliant reserves report effective January 1, 2012**Management estimates based upon area of AVO (seismic ) anomaly 9
  10. 10. Esperanza Block – Technical Details Nelson-2 Seismic, Log, and Pressure Plot Nelson-2 Discovery well • Tested 8 5 MMCFPD from two upper intervals (48 ft of pay) 36/64” choke FTP 2 520 psi 8.5 ft. pay), 36/64 choke, 2,520 • Calculated potential flow (“CAOF”) of 77 MMCFPD • 135’ net pay in 470’ gas column • 22-26% porosity, 600-700 millidarcies • Confirmed 3D seismic Type III gas AVO and flat spot, confirmed height of the gas column10
  11. 11. Esperanza Block – Reserve Potential(Post 2012 Seismic Program)11
  12. 12. Esperanza Block – Infrastructure & MarketingAlternatives Potential Sales Project Timeline Increase Additional Sales to Current 5 mmcfd 2012 Customers 18-24 Micro LNG Plant 17 mmcfd months th Proposed Promigas Pipeline 18-24 20 mmcfd Loop months Co-Gen or Power 18-24 26 mmcfd Generation months 18-24 End-User Pipeline TBD months 18-24 Export ?? months 18-24 Large End-Users ?? months12
  13. 13. Esperanza Block – Monetization RESERVES, BCF PROJECT ECONOMIC   IMPACT Existing Contracts E i ti C t t Producing Fields 14 mmcfd (52 BCF) $16 MM/year CF Add’l Contracts 70 BCF 5 mmcfd (18 BCF) $6 MM/year CF Micro LNG Plant (17 mmcfd) Producing Fields and/or Pipeline Loop (20 mmcfd) $32 MM/year CF 120 BCF or 30 mmcfd and/or End-User Pipeline (TBD mmcfd) Prospect Inventory Co-Gen (26 mmcfd) Palmer and/or Power Plant (TBD mmcfd) N. Tablon-11 and/or $22 MM/year CF Others Export (?? mmcfd) and/or 100 BCF or 20 mmcfd Large End-User (?? mmcfd) 2012 Seismic Program TBD TBD (TBD) BCF *Assumes future gas sales at $5.00/mcf and 10 year contracts13
  14. 14. Esperanza Block – Growth Profile Cumulative Capital Expenses 100 90 80 70 $MM USD 60 14mmcfd 50 5mmcfd 40 30mmcfd 30 fd $ 30 20 20mmcfd 10 0 Cumulative Cash Flow* 1000.0 800.0 14mmcfd Assumes f t A future gas sales at l t MM $USD 600.0 $5.00/mcf and 10 year contracts 5mmcfd 400.0 30mmcfd 200.0 20mmcfd TBD 0.0 00 *After Tax, Before Financing and Capital14
  15. 15. Prolific Andean Foreland BasinShona’s oil prospects are located within VENEZUELAthe Andean Foreland Basin – a region ofsignificant oil discovery Serrania, Serrania COLOMBIA − Efficient oil generation and migration Los Picachos, & Macaya Llanos Basin systems Blocks − Excellent quality reservoirs Putumayo Basin − L Low relief structures trap oil li f t t t il Oriente Basin − Over 3 billion barrels of recoverable oil have been found in these basins ECUADOR − All these basins continue to be actively explored Maranon Basin PERU BRAZIL Existing Oilfields15
  16. 16. Southern Colombian Heavy Oil Belt Llanos Basin Macaya Block Rubiales Field Serrania Block Heavy Oil Belt Los Picachos Block Caguan Basin Orito Field Capella Field > 230 MMBO 2.2 BBO OOIP produced Exploration Blocks Production Area Serrania Block Heavy Oil Belt Natural Reserves Putumayo Basin16
  17. 17. Caguan Basin Assets – OverviewSerrania, Los Picachos & Macaya Blocks • Working Interests: Shona 37.5%, Hupecol (Operator) 50.0%, Houston American Energy 12.5% • Large acreage position on trend with Capella Field 358,794 gross acres 134,547 net acres • Serrania Licensed in 2008 and Los Picachos and Macaya Licensed in 2011: 6 years exploration, 24 years production 8% royalty up to 5,000 BOPD up to 20% at 125,000 BOPD • Application pending for suspension of License terms due to security concerns • Exploratory well planned 2013 • Significant potential In management’s opinion, acreage contains one of largest management s opinion undrilled 4-way closure structures in northern South America with 150 MMBO potential Serrania targets Mirador formation; production potential should be similar to the Capella Field which has potential recoverable reserves of 200 MMBLS of 10°- 12°API oil Two fault trap prospects with 50 MMBO potential (each) on Serrania and Los Picachos Blocks17
  18. 18. Caguan Basin Assets – SeismicSerrania Fault Trap Prospect Line Y-1973-08 Line S-2009-08 Serrania Fault Trap Prospect Capella Field Mirador SS 18
  19. 19. Caguan Basin Assets – SeismicSerrania Four-Way Closure Prospect Line S-2009-02 Serrania Four-way Closure Prospect19
  20. 20. Caguan Basin Assets - SummaryIf Successful, It Has Major Upside Potential In management’s opinion, more than 250 MMBO gross recoverable potential Additional 300,000 gross acres with significant upside Low royalty with no X-factorLow “Ante” Approximately $5MM total (net to Shona) for two exploration wellsSynergy with Capella Field Development Larger reserve base helps justify construction of a pipeline to the area Reduced CapEx and OpEx through sharing of service companiesMajor Value Creator for Shona Significant long-life reserves Constant cash flow20
  21. 21. Prolific Andean Foreland BasinShona’s oil prospects are located within VENEZUELAthe Andean Foreland Basin – a region ofsignificant oil discovery COLOMBIA − Efficient oil generation and migration Llanos Basin systems − Excellent quality reservoirs Putumayo Basin − L Low relief structures trap oil li f t t t il Oriente Basin − Over 3 billion barrels of recoverable oil have been found in these basins ECUADOR − All these basins continue to be Block 102 actively explored Maranon Basin PERU BRAZIL Existing Oilfields21
  22. 22. Block 102 - Overview and TargetsWorking Interests: Shona 36.5%, Pluspetrol g , p(Operator) 51%, Andean Oil & Gas 12.5%Located in prolific Peruvian Maranon Basin 313,023 gross acres 114,253 114 253 net acresLicensed in 2006: 7 year explorationterm and 30 year oil production termRoyalties: 0 to 5,000 BOPD 5% 5,001 to 100,000 BOPD 5-20%Reevaluating potential for long-term test onBoa Oeste-1X well drilled in Dec 2011Future exploration Focus activity on Capahuari and Macusari trends with higher reserve potential22
  23. 23. Shona Energy CompanySummary of Current SituationProducing gas asset in Colombian Lower Magdalena Basin OpEx is low and will decrease dramatically on a unit basis with any new production Solid 7-10 year contracts for 14 mmcfd increasing to 15.5 mmcfd in two years Initiating aggressive gas marketing solution by the end of JulyThree blocks with oil potential in the Colombian Caguan Basin Minimal capital requirements to get to development phases If successful, development capital should be easily financedOne block with oil potential in the Peruvian Maranon Basin Exploration focus on geological trends with larger reserve potential Synergy with offsetting block having large infrastructure and oil pipeline23
  24. 24. Why Invest?24
  25. 25. Why Invest? Value Creation25
  26. 26. Why Invest?Value Creation Through Exploration Demonstrated success at Esperanza D t t d tE Significant exploration potential following 2012 3-D seismic on Esperanza Exposure to a potential major oil discovery at minimal capital cost Maranon Basin in Peru provides modest to large reserve potential26
  27. 27. Why Invest?Value Creation Through Exploration Demonstrated success at Esperanza D t t d tE Significant exploration potential following 2012 3-D seismic on Esperanza Exposure to a potential major oil discovery at minimal capital cost Maranon Basin in Peru provides modest to large reserve potentialValue Creation Through Marketing Current asset base capable of supporting 3x production levels with minimum capital investment Current asset base and prospect inventory capable of supporting 5x production levels with additional capital investment 2012 seismic survey can provide possible upside Capital used for increased gas sales are high ROR projects27
  28. 28. Why Invest?Value Creation Through Exploration Demonstrated success at Esperanza D t t d tE Significant exploration potential following 2012 3-D seismic on Esperanza Exposure to a potential major oil discovery at minimal capital cost Maranon Basin in Peru provides modest to large reserve potentialValue Creation Through Marketing Current asset base capable of supporting 3x production levels with minimum capital investment Current asset base and prospect inventory capable of supporting 5x production levels with additional capital investment 2012 seismic survey can provide possible upside Capital used for increased gas sales are high ROR projectsValue Creation Through Investment Consolidation of South American E&P companies With existing Cash Flow and Balance Sheet, able to do smaller M&A activity and/or new projects Reduce equity base through Corporate Buyback of Stock Potential for restructuring debt28
  29. 29. Questions?29
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×