Corporate Presentation
November 2010
2
Forward Looking Statements
This presentation contains forward looking statements and factual information that are curren...
• UNX is exploring the South Atlantic Margin
Basins offshore Namibia
• UNX has interests in over 51,000 gross km2 of
highl...
• Stable democracy: gained
independence from South Africa in
1990
• Area slightly smaller than the
province of British Col...
Offshore Leases – Namibia and South Africa
Namibia
Arcadia Petroleum
Chariot/Enigma
Chariot/Petrobras
Labrea
Namcor
UNX En...
6
90% WI Blocks: 2713A&B, 2815, 2816 & 2915
• Total area - 26,988 km2 (6,666,036 acres)
• UNX Operated - 90% working inter...
7
40% WI Blocks: 2813A, 2814B & 2914A
2813A 2814B
2914A
• Total area - 15,382 km2 (3,799,354 acres)
• UNX - 40% working in...
8
2.7% Carried Interest Blocks: 1711A&B
• Total gross area 8,903 km2 (2,199,041
acres)
• UNX - 2.7% non operated carried i...
Maximizing the Probability of Success
The Probability of Success (POS) on a well is a function of the following variables:...
Reservoir
RESERVOIR – Historical Exploration Results
Kudu 9A-1 (2814A) 167m Chevron 1973 Orange 4536 mbKB
Gas & Oil
shows
good
sands...
The Gas-Condensate Petroleum
System from Kudu Field
Kudu
Existing wells all drilled on
shelf, where there is no trap
New w...
Seal & Trap
14
TRAP & SEAL – Block 2713A,
Aptian/Barremian
• Aptian Structure Map
• Large potential area of closure
• Structure sealed...
Source
Rock
Mello (2000)
BRAZIL
AFRICA
Proterozoic/Paleozoic
Paleozoic
Proterozoic/Paleozoic
Paleozoic
Namibia
• All wells drilled off...
SOURCE ROCK – Oil Seeps, Satellite
Surveys in the Orange Basin
17
What is Our Probability of Success?
Reservoir sediment deposition moves from onshore to offshore
(east to west), and sedim...
Block 2713A – Prospective Resource
Summary
Description P90 (Low Est.) P50 (Best Est.) P10 (High Est.) Mean Est.
Unrisked R...
Of the Four Basins in Offshore Namibia, the
Orange Basin is of Great Interest and Potential
• Namibia’s only discovery to-...
UNX Strategy
Near-Term:
• Set-up data room for 2713A, 3D seismic acquisition
• Actively pursue farm out partners for both ...
Catalysts
• HRT IPO
• Globally respected company will be marketing the substantial oil potential of Namibia
• Data room pr...
Senior Management Team
Gabriel Ollivier, Director, President and CEO
• Former Managing Partner and Institutional Salesman ...
Non-Executive Directors
Duane Parnham, Chairman
• Founder of Forsys Metals Corp – Namibia-based resource company
• Extensi...
Non-Executive Directors
Donald Sharpe, Director
• Over 25 years experience as a professional geophysicist
• Started and de...
Summary
• Exploring for sizeable oil targets, appealing to majors looking for new projects
• Extensive land holdings – 51,...
Corporate Data
Symbol North America - TSXV: UNX
Europe - Frankfurt:3U2A
USA - OTC Pinksheets: UPWRF
Share Price $3.97 (Oct...
Contacts
Heidi Christensen Brown, Investor Relations
Telephone: (403) 218 2833
Email: hchristensenbrown@equicomgroup.com
D...
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Unx presentation nov 8 2010

  1. 1. Corporate Presentation November 2010
  2. 2. 2 Forward Looking Statements This presentation contains forward looking statements and factual information that are current as of the date the presentation was originally delivered. UNX Energy Corp. disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. Forward looking statements include, but are not limited to, statements with respect to the timing and amount of estimated future exploration, success of exploration activities, expenditures, permitting, and requirements for additional capital and access to data. Forward looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; the ability to enter into joint ventures or to acquire or dispose of properties; future prices of oil and gas; accidents, labor disputes and other risks of the oil and gas industry; ability to obtain financing; and delays in obtaining governmental approvals of financing.
  3. 3. • UNX is exploring the South Atlantic Margin Basins offshore Namibia • UNX has interests in over 51,000 gross km2 of highly prospective exploration rights Brazil and Namibia are on opposite margins of the South Atlantic • Common geological history and similar petroleum system • Four recent giant discoveries reported in deeper horizons within the Santos Basin, Brazil • Tupi (oil and natural gas) • Carioca (oil and natural gas) • Jupiter (natural gas and condensate) • Abare Oeste (oil and natural gas) • Combined, the above discoveries represent the world’s largest find since the 1970’s 3 Namibia – The Next Oil Frontier
  4. 4. • Stable democracy: gained independence from South Africa in 1990 • Area slightly smaller than the province of British Columbia, Canada and 1.5 times the area of France • Population: 2.1 million people, median age 21, 37% urban • Capital city is Windhoek 4 Country Details – Namibia • BBB Country Risk Profile (Source: The Economist, 2010) • Main Industries: tourism, mining, fishing and ranching • Inflation rate, roughly 8% (2009 est.) • GDP US$13.6 billion (2008) • Existing multinationals in country: Petrobras, Anglo-American, Areva, DeBeers, RioTinto, Paladin, Tullow, Gazprom, BHP Billiton, and PetroSA • Offshore petroleum fiscal regime: 35% federal tax and flat 5% royalty
  5. 5. Offshore Leases – Namibia and South Africa Namibia Arcadia Petroleum Chariot/Enigma Chariot/Petrobras Labrea Namcor UNX Energy South Africa BHP-Billiton Forest PetroSA Shell Namibia South Africa 5
  6. 6. 6 90% WI Blocks: 2713A&B, 2815, 2816 & 2915 • Total area - 26,988 km2 (6,666,036 acres) • UNX Operated - 90% working interest • Large features mapped on Blocks 2713A • NI 51-101 Prospective Resource - Block 2713A • 2.39 Billion BOE unrisked, • 567 Million BOE risked Robust risked economics, supported by sizeable resources, high probabilities of success • Adjacent to blocks currently being explored by majors • 2D seismic data purchased, 3D seismic survey planned, looking to secure farm-out partners 100 km
  7. 7. 7 40% WI Blocks: 2813A, 2814B & 2914A 2813A 2814B 2914A • Total area - 15,382 km2 (3,799,354 acres) • UNX - 40% working interest – partners are: • HRT Oil & Gas (operator) – 40% • Acarus Investments (Proprietary) Ltd. – 20% carried interest Blocks are key to UNX’s regional land position and strategic partnerships • Partnership with HRT O&G provides: • Access to the world’s leading geoscientists on the South Atlantic Margin • Accelerated data gathering, interpretation and mapping • Reduced net risk capital exposure • Proven techniques to optimize the quality of the data • Comprehensive technical interpretation • Adds data room flow from southern hemisphere’s majors
  8. 8. 8 2.7% Carried Interest Blocks: 1711A&B • Total gross area 8,903 km2 (2,199,041 acres) • UNX - 2.7% non operated carried interest • Kunene #1 well drilled and case to 5,050 metres UNX holds carried interest in possible gas discovery • PetroAlliance (Subsidiary of Schlumberger) has identified a potential gas zone of interest in the Kunene well. • License extended on April 5, 2010 for an additional 2 years 100 km
  9. 9. Maximizing the Probability of Success The Probability of Success (POS) on a well is a function of the following variables: Reservoir a proper porous rock with adequate permeability and porosity to allow for the accumulation and production of hydrocarbons Trap the hydrocarbons are buoyant and have to be trapped within a structural (anticline, fault block) or stratigraphic trap Source Rock a mature source and timing sequence of migration is also critical as the trap must predate the migration Seal Integrity an impermeable sealing zone, often a shale sequence, which must also predate hydrocarbon migration and retain integrity over time UNX also benefits from the depth of experience in the South Atlantic Margin from: HRT /IPEX significant and successful experience in the South Atlantic Margin using investigative techniques that have proven additive to the POS 9
  10. 10. Reservoir
  11. 11. RESERVOIR – Historical Exploration Results Kudu 9A-1 (2814A) 167m Chevron 1973 Orange 4536 mbKB Gas & Oil shows good sandstone good good Kudu 9A-2 Kudu 2 (2814A) 168m Swakor 1987 Orange 4505 mbKB Gas & Oil shows poor sandstone good stratigraphic poor Kudu 9A-3 Kudu 3 (2814A) 166m Swakor 1988 Orange 4522 mbKB Gas & Oil shows good sandstone good good Kudu - 4 2814A 176 m (MSL) Shell 1996 Orange 4719 mbKB Gas & Oil shows good sandstone good good 2814/11-4 Kudu - 5 2814A 162.9m (MSL) Shell 1998 Orange 4898 mbKB Gas & Oil shows good sandstone good good 2814/11-5 Kudu - 6 2814A 171m (MSL) Shell 2002 Orange 4725 Mahbdf Gas & Oil shows good sandstone good stratigraphic poor 2814/7-2 Kudu - 7 2814A 179 m (MSL) Shell 2002 Orange 5275 mbKB Gas & Oil shows good sandstone good stratigraphic poor Kudu - 8 Kudu Production 179 m Tullow 2007 Orange 4725m Gas & Oil shows good sandstone good stratigraphic poor 1911/15-1 1911 489 m (MSL) Norsk Hydro 1994 Walvis 4586 mbKB Oil shows in core 4 good carbonate fair poor 1911/10-1 1911 631m (MSL) Norsk Hydro 1996 Walvis 4185 mbKB Oil shows good sandstone fair poor * 2012/13-1 2012 650m (MSL) Sasol 1995 Walvis 3712 mbKB Oil shows good sandstone good poor * 2213/16-1 2213 240m (MSL) Ranger Oil 1995 Walvis 2627 mbKB Oil shows good sandstone poor poor 2313/?5-1 Shark 1 2313 ?? Shell 1998 Luderitz 2588 mbKB Oil shows good sandstone poor poor 2513/8-1 2513 243m Norsk Hydro 1998 Luderitz 2423 mbKB Oil shows in core 1 good sandstone poor poor 2815/15-1 2815 177m (MSL) Chevron 1996 Orange 4751 mbKB Gas & Oil shows tight sandstone fair stratigraphic poor Field & Lab 2010 11
  12. 12. The Gas-Condensate Petroleum System from Kudu Field Kudu Existing wells all drilled on shelf, where there is no trap New wells need to target syn-rift where proven source exists below Barremian shale seal. Turonian 12
  13. 13. Seal & Trap
  14. 14. 14 TRAP & SEAL – Block 2713A, Aptian/Barremian • Aptian Structure Map • Large potential area of closure • Structure sealed by Barremian (salt equivalent) shales
  15. 15. Source Rock
  16. 16. Mello (2000) BRAZIL AFRICA Proterozoic/Paleozoic Paleozoic Proterozoic/Paleozoic Paleozoic Namibia • All wells drilled offshore Namibia had oil shows, (confirmed by biomarker and diamondoid studies) • This analysis confirms identical age and rock type to Brazil SOURCE ROCK – Correlation: Brazil to Africa Marine Deltaic Tertiary Lacustrine Saline Oil Type Lacustrine Brackish/Saline Oil Type Sedimentary Basins Marine Anoxic Albian- Cenomanian Espírito Santo 16
  17. 17. SOURCE ROCK – Oil Seeps, Satellite Surveys in the Orange Basin 17
  18. 18. What is Our Probability of Success? Reservoir sediment deposition moves from onshore to offshore (east to west), and sediment quality volume is high suggesting reservoir characteristics in deeper water should be very good. Confirmed in well data and inferred in seismic Trap clear from seismic and petroleum model that trap preceded petroleum migration. Trap also evident on seismic Source Rock source rocks in the South Atlantic margin are prolific. Two source rocks confirmed in Namibia. Oil slicks, oil samples extracted from the nearby Kudu gas field, and oil stains in all offshore wells confirm presence of mature and active petroleum system Seal Integrity shale sequence is very thick in the deeper water (in excess of 200 metres) and does not appear breached 18
  19. 19. Block 2713A – Prospective Resource Summary Description P90 (Low Est.) P50 (Best Est.) P10 (High Est.) Mean Est. Unrisked Recoverable Oil (bbl - 1000’s) 1,444,765 2,104,579 3,065,903 2,197,245 Unrisked Recoverable Solution Gas (BCF) 370.0 911.3 2,244.5 1,167.0 Risked Recoverable Oil (bbl - 1000’s) 342,577 499,029 726,974 521,002 Risked Recoverable Solution Gas (BCF) 88.4 217.6 536.0 278.7 Gross Unrisked BOE (BOE - 1000’s, Gas to BOE at 6:1) 1,506,435 2,256,456 3,439,986 2,391,742 Gross Risked BOE (BOE - 1000’s, Gas to BOE at 6:1) 357,305 535,301 816,314 567,452 Note: the numbers in the table are the statistical aggregate calculations presented in the report. The full report should be reviewed and is available at www.sedar.com Source: DeGolyer & MacNaughton (NI 51-101 Compliant) D&M Estimate: 23.7% POS 19
  20. 20. Of the Four Basins in Offshore Namibia, the Orange Basin is of Great Interest and Potential • Namibia’s only discovery to-date (Kudu), confirms many of the geologic conditions required for success • Petrobras farm-in on Chariot, being immediately east of the UXN 2713A Block • Other oil and gas companies are active in the Orange Basin (Shell, Tullow, Forest, Gazprom, Petrobras, BHP Billiton, and PetroSA). • Kudu commercialization initiatives brings options to UNX (and potential promoting partners) if gas is discovered • On the shallow water margin, makes a gas discovery much more economic • Proximity to Orange River is mitigating to POS risk, especially in categories of seal and reservoir • Reasonable well control and technical data as the majority of wells drilled offshore Namibia are located in the Orange Basin offsetting UNX land holdings 20
  21. 21. UNX Strategy Near-Term: • Set-up data room for 2713A, 3D seismic acquisition • Actively pursue farm out partners for both seismic acquisition and the drilling of a well • Implement further work programs, detailing the mapped features and adding to prospect inventory •Acquire 3D seismic during the first half of 2011 Mid-Term: • Balance the Company’s risk profile • Look for undercapitalized development/exploitation assets • Continue to look for additional opportunities to add to prospect portfolio Long-Term: • Develop a company that delivers high level of economic growth through prudent capital allocation resulting in superior economic returns 21
  22. 22. Catalysts • HRT IPO • Globally respected company will be marketing the substantial oil potential of Namibia • Data room process for 2713A (prior to YE 2010) • Petrobras presence at 2714A (immediately east of 2713A) • Potential well in 2011 • Independent resource reports on other blocks, including an update on 2713A • Award of farmout of 2713A in 2011 • 3D seismic programs to be acquired on 2713A and PEL 2815 in 2011 • Further corporate hiring of strategic technical people • Finalization by Tollow Oil of commercialization plans for the Kudu gas project • Additional massive oil discoveries in the South Atlantic Margin offshore Africa and South America 22
  23. 23. Senior Management Team Gabriel Ollivier, Director, President and CEO • Former Managing Partner and Institutional Salesman at Paradigm Capital Inc., and former Partner and Institutional Equity Salesman at Cormark Securities Inc. • Over 10 years of senior management experience in the oil and gas industry with Canadian Hunter Exploration Ltd, Crestar Energy Inc. and Murphy Oil Company Ltd. Maria Elliott, Vice-President, Finance, & CFO • Over 17 years of finance and financial reporting expertise specific to oil and gas • Set up reporting systems, banking arrangements, internal controls, etc., in many international jurisdictions for activities specific to oil and gas exploration, development, and production • Former Chief Internal Auditor, and Controller of Sherritt International, a major producing company in Cuba Brad Holub, Chief Operating Officer • More than 15 years experience in the energy sector as a professional engineer • Most recently held a senior management position with Sherritt International, managing all aspects of operations including production, facilities, drilling, supply chain, IT and field work • Has developed and driven numerous key strategic initiatives as well as operational optimization and efficiency projects Curtis Evert, Vice President Exploration and New Ventures • 25 years of experience as a professional geologist in the energy sector • Extensive experience in international oil and gas exploration and development, and an in-depth understanding of offshore drilling and field development • Previous management roles with Marathon Canada, Sherritt International Corporation, and most recently managed several large offshore deepwater discoveries made by Husky Energy Corporation in the South China Sea Mark Monaghan, Director & Executive Director, Business Development • Over 17 years of institutional equities and public company experience • Experience in corporate finance, corporate development, merchant banking, executive management and board appointments • Most recently was President of Quest Securities, with previous senior roles at TD Securities, Deacon Capital, CT Securities, and has also been a strategic advisor to several publicly listed companies 23
  24. 24. Non-Executive Directors Duane Parnham, Chairman • Founder of Forsys Metals Corp – Namibia-based resource company • Extensive experience working in Namibia • Strong relationships and expertise earned over a 24-year career in the areas of: government relations, capital markets and corporate management Michael Black, Director • Partner at Fasken Martineau DuMoulin LLP • Extensive legal experience in the energy sector, ranging from negotiation and drafting of international joint operating and joint venture agreements, negotiation and execution of resource-based transactions, and other legal and commercial matters specific to international jurisdictions • In the past five years has led over 50 merger and acquisition deals Mark Frewin, Director • Partner at McCarthy Tetrault • Extensive legal and commercial expertise and a particularly strong background in dealing with international law • Experience in Africa, with specific knowledge of the legal environment in Namibia Knowledge Katti, Director & CEO of Kunene Energy (Pty) Ltd • Over 10 years of experience in national and international exploration and government activities • Strong resource to the company in terms of deal flow and strategic partnerships 24
  25. 25. Non-Executive Directors Donald Sharpe, Director • Over 25 years experience as a professional geophysicist • Started and developed his career at Suncor Energy prior to managing and serving as director of a number of successful start-up companies including Gemini Energy Inc. and Velvet Exploration Inc. Keith Turnbull, CA, Director • Retired from KPMG as part of the accounting firm’s 12-member executive management team • 38 year career in public practice including involvement in emerging international energy companies • Wide range of experience including financial reporting, taxation planning, corporate governance, internal controls, auditing, public disclosure and other assignments specific to oil and gas companies 25
  26. 26. Summary • Exploring for sizeable oil targets, appealing to majors looking for new projects • Extensive land holdings – 51,273 gross km2 (net 30,683) of exploration and carried interests • Mirror image to offshore Brazil (world’s biggest crude oil discoveries in past 30 years) • Angola (Namibia’s neighbour to the north) is Africa’s largest oil producer with offshore reserves totalling in excess of 9 billion barrels • Probabilities of success - higher than normal • Certifiable potential resource for Block 2713A • Strategic partnership with HRT Oil & Gas • Near-term intentions for data room process on Block 2713A • Strong management team and Board of Directors • Block 1711 – potential hydrocarbon system identified with 2.7% carried interest 26
  27. 27. Corporate Data Symbol North America - TSXV: UNX Europe - Frankfurt:3U2A USA - OTC Pinksheets: UPWRF Share Price $3.97 (October 28, 2010) Shares Issued & Outstanding 111,105,032 Fully Diluted 118,280,032 Cash on Hand $54 Million Head Office Calgary, Alberta Transfer Agent Computershare Trust of Canada Legal Counsel McCarthy Tetrault, Calgary, AB Auditor KPMG, Calgary, AB 27
  28. 28. Contacts Heidi Christensen Brown, Investor Relations Telephone: (403) 218 2833 Email: hchristensenbrown@equicomgroup.com David Feick, Investor Relations Telephone: (403) 218 2839 Email: dfeick@equicomgroup.com Maria Elliott, Vice President, Finance and CFO Telephone: (403) 984-6430 Email: maria.elliott@unxenergy.com 28

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