Erhc anp stp-2014-v2


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Erhc anp stp-2014-v2

  1. 1. The Quest for Oil in Sao Tome & Principe 1
  2. 2. 2 Peter Ntephe, PhD • President and CEO of ERHC Energy Inc. • Career spanning 25 years, in the public and private sectors. • Involved in ERHC’s executive management since 2001. • Key roles in the negotiation, securing and maintenance of ERHC’s oil and gas interests in sub-Saharan Africa • Member of the Association of International Petroleum Negotiators (AIPN) and the Committee on Oil and Gas Law of the International Bar Association.
  3. 3. Introducing ERHC • U.S. Public Company – Regulated by U.S. SEC; based in Houston – Shares trade on the OTCQB marketplace (OTCQB:ERHE) – Market Capitalization: $49m (June 2014) – Issued Shares: 764.8m 3
  4. 4. ERHC Exploration Assets • Sao Tome & Principe EEZ • Blocks 4 and 11 • Nigeria-Sao Tome & Principe JDZ • Blocks 2, 3, 4, 5, 6 and 9 (working interests) • Kenya • Block 11A • Chad • Blocks BDS 2008 • Small Equity Stake • In Toronto-listed Oando Energy Resources (TSX: OER) 4
  5. 5. 5 Offshore Exploration
  6. 6. Historical Milestones • 1997: Exclusive Agreement with STP – 25 year term – Over 50% of net revenues from all STP oil production in return for • Mapping STP maritime boundaries and delineating Exclusive Economic Zone • Developing STP oil industry, including establishing national oil company and licensing oil rights • One-time payment of $5million • 1997-1999: ERHC does the following: – Pays $5 million – Maps maritime boundaries and delineates EEZ – Establishes national oil company (JV with government) – Contracts for seismic acquisition • 1999-2003: ERHC and STP renegotiate Agreement until: – ERHC gives up all previous rights and entitlements in return for preferential minority rights in • 6 offshore blocks in the Nigeria-STP Joint Development Zone (JDZ) • 4 offshore blocks in the STP EEZ • 2004: ERHC exercises preferential minority rights in the JDZ • 2005-2006: ERHC teams up with International Operators to acquire additional rights (by competitive bidding) in JDZ Blocks 2, 3 and 4 6
  7. 7. Historical Milestones • 2006 -2009: Pre-drilling Activities – Geological and Geophysical Work – Preparation for drilling and contracting of drillship and rig • 2009-2010: Drilling 7 Well Block Total Depth Kina-1 JDZ Block 4 3,750m Bomu-1 JDZ Block 2 3,580m Lemba–1 JDZ Block 3 3,758m Malanza-1 JDZ Block 4 4,196m Oki East-1 JDZ Block 4 3,873m
  8. 8. 8 São Tomé and Príncipe Exclusive Economic Zone • Virtually surrounded by proven hydrocarbon systems • ERHC has a 100 percent working interest in Blocks 4 and 11 • Free of signature bonuses • Additional rights to acquire up to a 15 percent paid working interest in two additional blocks • Cretaceous Turbidite fan deposits from offshore Gabon may have formed traps in Blocks 4 and 11 • Similar fan plays led to the Jubilee Field discovery
  9. 9. EEZ Block 11 Prospectivity Outcomes of ERHC’s Analyses 9
  10. 10. 10 EEZ Hydrocarbon Resource Potential • Evidence of a working hydrocarbon system – ExxonMobil: Extension of the North Gabon petroleum system – Oil seeps on the island of São Tomé – Satellite-derived data : seeps in the offshore area – A Lower Cretaceous succession increases the likelihood that viable source rocks equivalent to those in Gabon extend into the EEZ • Prospective targets: – Tilted block highs associated with the half-graben development – Draping of sandstone reservoirs over the underlying tilted block of the distal equivalent of turbidite fans that extend into the EEZ from Gabon and Equatorial Guinea
  11. 11. 11 EEZ Hydrocarbon Resource Potential • Main reservoir horizons: – Deep water Paleogene and Cretaceous submarine fan sands derived from the east – Potential pre-rift and syn-rift reservoirs in Cretaceous tilted fault blocks and associated graben • Large structural closures within the Cretaceous section apparently resulted from the presence of large faults associated with the major NE- trending fracture zones
  12. 12. Block 11 2D Seismic Coverage 12 BIK 11
  13. 13. EEZ Seismic Prospects Example (Courtesy of British Geological Survey) 13 Example of deep water fans and drape anticline over Cretaceous fault closure
  14. 14. EEZ Block 11 14
  15. 15. EEZ Block 11 ERHC Interpretation 15 SENW BIK 11 BASEMENT Basement Irregularity U-Cret. ? L-Tertiary. ? Deep water turbidite fans ?
  16. 16. EEZ Block 11 16
  17. 17. EEZ Block 11 ERHC Interpretation 17 SENW BASEMENT Basement Irregularity U-Cret. ? L-Tertiary. ?Deep water turbidite fans ? BIK 11 U-Sediments pounding against basement fault
  18. 18. EEZ Block 11 18
  19. 19. EEZ Block 11 ERHC Interpretation 19 SENW BASEMENT BIK 11 Basement Irregularity U-Cret. ? L-Tertiary. ? Deep water turbidite fans ?
  20. 20. EEZ Block 11
  21. 21. EEZ Block 11 ERHC Interpretation 21 SENW BASEMENT BIK 11 SAO TOME VOLCANO Basemen t Irregularity U-Cret. ? L-Tertiary. ? Deep water turbidite fans ? Basement fault trend merging into the volcanic uplift
  22. 22. EEZ Block 11 22
  23. 23. EEZ Block 11 ERHC Interpretation 23 BIK 11 SW NE BASEMENT Basement Irregularity U-Cret. ? L-Tertiary. ? Deep water turbidite fans ?
  25. 25. 25 Conclusions • There is evidence of a high quantity of hydrocarbon resources in EEZ Block 11 – A linear fault trend extends from the NE corner of the block toward SW, possibly merging into the São Tomé volcanic uplift • This feature coincides with the Kirby Fracture Trend that runs exactly at the same trend and direction • This basin irregularity seems to have the largest displacement in the center of Block 11, creating a mini-basin formation • This allowed the accumulation of the oncoming sediments into the Block more than the surrounding area – The paleo-topography of Block 11 provided a favorable setting for deposition of deep water turbidite fans during the late Cretaceous to Early Tertiary period – The fan system could be identified on the seismic on either side of the basement fault trend (an area of approximately 3,500 sq km)
  26. 26. Summary • Small Independent • Sao Tome & Principe is important part of ERHC’s heritage • Formed JDZ exploration team that drilled in JDZ Blocks 2, 3 and 4 • A positive force in building interest in STP’s oil zones 26
  27. 27. 27 Cautionary Statement This presentation contains statements concerning ERHC Energy Inc.’s future operating milestones, future drilling operations, the planned exploration and appraisal program, future prospects, future investment opportunities and financing plans, future stockholders’ meetings as well as other matters that are not historical facts or information. Such statements are inherently subject to a variety of risks, assumptions and uncertainties that could cause actual results to differ materially from those anticipated, projected, expressed or implied. A discussion of the risk factors that could impact these areas and the Company’s overall business and financial performance can be found in the Company’s reports and other filings with the Securities and Exchange Commission. These factors include, among others, those relating to the Company’s ability to exploit its commercial interests in Kenya, Chad, the JDZ and the Exclusive Economic Zone of São Tomé and Príncipe, general economic and business conditions, changes in foreign and domestic oil and gas exploration and production activity, competition, changes in foreign, political, social and economic conditions, regulatory initiatives and compliance with governmental regulations and various other matters, many of which are beyond the Company’s control. Given these concerns, investors and analysts should not place undue reliance on these statements. Each of the above statements speaks only as of the date of this presentation. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any of the above statements is based.
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