Block XI Cambodia Farm In Opportunity

1. Information Memorandum
Block XI Cambodia
(Tonle Sap Basin)
Participation Opportunity
CHplus Resources (Cambodia) Limited
March 2010

2. Information Memorandum Confidential
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Disclaimer
This information memorandum has been prepared by CHplus Resources (Cambodia) Limited
(“CHplus”) for information purposes only. Although information contained in this presentation
has been obtained from sources which CHplus believe to be reliable, it has not been
independently verified and no representation or warranty, expressly or implied, is made and no
responsibility is or will be accepted by CHplus as to or in relation to the accuracy, reliability or
completeness of such information.
Opinions expressed herein reflect the judgement of CHplus as of the date of this presentation and
may be subject to change without notice if CHplus become aware on any information, whether
specific or general, which may have an impact on such opinions.
CHplus will not be responsible for any consequences resulting from the use of this presentation
as well as the reliance upon any statement contained herein or any omission.
This presentation is confidential and may not be reproduced (in whole or in part) nor summarized
or distributed without the prior written consent of CHplus.
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Project: Tonle Sap
Block XI Cambodia

3. Information Memorandum Confidential
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Investment Highlights
The proposed farm-down in Block XI, 100% controlled by Cambodian Resources Limited
(“CRL”), an indigenous Cambodian company based in Phnom Penh, offers prospective partners
the opportunity to acquire a working interest in the onshore Tonle Sap Basin, a highly prospective
basin which has generated substantial international investor interest over the two years. Several
companies are preparing to drill the Tonle Sap basin at this time.
The Block XI interest gained provides a strategic entry position to Cambodia or, alternatively,
affords an existing player the opportunity to enhance and/or diversify its position.
The key investment highlights include:
• Operatorship and large interest in the block available;
• Initial work obligation limited to a seismic program;
• Reasonable farm-in terms limited to a carry during the exploration phase and
reimbursement of sunk costs;
• Unexplored basin in a relatively accessible area;
• Recent seismic from PGS confirming existence of a deep basin;
• Past and recent structural deformation favorable to the creation of traps;
• Past deposition of source rocks in the oldest sections of the basin;
• Depositional environments favorable to the deposition of reservoir rocks;
• Analogous to nearby producing onshore basins in Thailand;
• Currently stable country with very favorable outlook for the future;
• Strong support for exploration from local government;
• Block is adjacent to rail and road systems which provide outlets to market & a major port;
• Strong support from an indigenous company with substantial interests in Cambodia; and
• Potential to extend the partnership to blocks surrounding Block XI.
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Project: Tonle Sap
Block XI Cambodia

4. Information Memorandum Confidential
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Block XI Overview
Located in the under-explored Tonle Sap Basin, Block XI lies immediately to the North West of
Phnom Penh and to the West of the Tonle Sap lake system and extends over an estimated area
of over 5100 sq km (Figure 1). Magnetic surveys conducted by PGS in 2009 have indicated that
the deepest part of the Tonle Sap Basin is likely to lie directly beneath the South West portion of
the block.
Block XI was conditionally awarded to CRL by the Cambodian National Petroleum Authority
Ministry of Petroleum Resources in 2009. CRL has the exclusive right to secure the PSC and is
currently seeking a suitable investor to participate in the go forward exploration activities of the
Block.
The PSC over Block XI will be governed by the Cambodian fiscal regime. Multiple leads have
been defined at different stratigraphic levels within the Tertiary and older sections (Figure 11).
Figure 1 – Block XI Location
Tonle Sap Basin Exploration Status
Tertiary Sedimentary Basin
This lacustrine basin runs parallel to the Mae-Ping / Three Pagoda strike-slip fault system (See
Figure 2 below). This suggests that it is a pull-apart sedimentary basins formed by lateral fault
movements during the Tertiary period.
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Project: Tonle Sap
Block XI Cambodia

5. Information Memorandum Confidential
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Figure 2 – Mae Ping Fault Zone
The Phitsanulok Basin to the North West is believed to have been formed by the same
mechanism that created the Tonle Sap basin. The Sirikit Oil Field (recoverable reserves 255
million barrels of liquids and 420 Bcf of gas) which lies within the Phitsanulok Basin is an analog
of what is potentially present in the Tonle Sap basin.
Figure 3 – Phitsanulok and Tonle Sap Basins
The thicknesses of Tertiary sediments varies depending on the geological models and parameters,
but are estimated not to exceed 3,000m in published reports. New seismic information acquired
by PGS has shed new light on this assumption, and the deepest parts of the basin are now
confirmed and being in excess of 6000 metres.
Figure 4 – Geologic Cross Section of the Tonle Sap Basin
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Project: Tonle Sap
Block XI Cambodia

6. Information Memorandum Confidential
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Furthermore, surface geology and magnetic data indicate that igneous rocks were intruded
sporadically in this area and it is possible that the activities of intrusive rock have accelerated
maturation of source rocks as seen in the Supanburi Oil Field in Thailand. As in the Thailand
Tertiary basins, it is expected that the main source rocks are lacustrine sediments deposited in
the deepest parts of the basin. Gravity depth modeling suggests depth to basement is between
1700 m- 6500 m.
Figures 5 & 6 – Basin Location and MOECO Gravity Study
Most of the PGS 2009 seismic lines have not been acquired over deepest part of basin. Gravity
was acquired along the seismic profiles obtained by PGS in 2009. The PGS gravity map below is
a result of remodeling of the airborne gravity, merged with newly acquired data.
Figure 7: PGS Gravity Mapping Along Seismic Lines / Bouguer Gravity 100km Residual
Large scale offset
post date NW
trending faults
NE-SW orientated
lineaments
Tonle Sap Lake
Mae Ping FZ
100 km Remodeling of late 90’s airborne gravity
Pre-Tertiary Sedimentary Basin
Information on the pre-Tertiary is limited to inferences from gravity, magnetic, seismic and outcrop
information (see figures 5 - 9). From that data it appears that a full sequence of pre-Tertiary rocks
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Project: Tonle Sap
Block XI Cambodia

7. Information Memorandum Confidential
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and reservoirs is present and can be correlated to the regional SE Asia pre-Tertiary geology in
general and to the Khorat Plateau basin in particular.
Figure 8 - Tonle Sap Cross Section & Outcrops
Cross bedded fluvial/
deltaic sandstones,
Jurassic/Cretaceous, as
well Triassic age.
Fractured and karstic
Permian carbonates
Modified from Vysotsky, 1994
This could be of importance as the Khorat Plateau basin is host to major gas fields such as the
Nam Phong and Phu Horm fields in NE Thailand and the potential of that basin is estimated to
exceed 4.5 TCF of gas.
Figures 6 and 8 show the out crop information as well as a stratigraphic chart based on that
information, seismic and regional geology data. Note that the karst topography which suggest
that limestones are porous and permeable and that this observation may also be applicable at
depth.
Figure 9 – Basin Cross Section
Early catagenic gas generation;
onset of oil generation
Main phase oil generation;
Mid-catagenic gas generation
End of oil generation;
Mid-catagenic gas generation
• Oil window occurs between 2.0 – 3.5 km.
• This interval includes possible Late Triassic lacustrine shales
• Acquired seismic data suggests that both potential Triassic &
Permian source are in oil &gas window, depending burial depth.
Thus our interpretation is that it is very likely that structures in the pre-Tertiary of the Tonle Sap
basin would be able to host fields similar to the ones in the Khorat Plateau basin.
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Project: Tonle Sap
Block XI Cambodia

8. Information Memorandum Confidential
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Oil and Gas Seeps Figure 10 – Oil & Gas Seeps
The CNPA has reported numerous oil and
gas seeps in and around the Tonle Sap
basin. At this time further research is
being pursued in order to revisit these
seeps and obtain quality samples for
geochemical analysis.
Seismic and Leads
PGS has kindly provided some examples of the lines they have shot, processed and interpreted in
the area. In the information provided on the seismic line shown on Figure 11 one can clearly see
the presence of pre-Tertiary sediments and the potential for structures at depth. Much work
remains to be done to confirm the existence of a petroleum system and reservoir rocks but, by
analogy to the Khorat Plateau basin and by the understanding of the outcrop data, probabilities
are high that such environment exists.
Figure 11 – PGS 2009 Block XI Seismic Cross Sections
Layered Rhyolite
Jur/Cretaceous
outcrop
Mid/Late
Cretaceous?
Rhyolite?
Intra
Jur/Cretaceous
L. Permian/
Indosinian I?
Mae Ping FZ
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Project: Tonle Sap
Block XI Cambodia

9. Information Memorandum Confidential
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Summary:
 Tertiary is present to substantial depths with likely lacustrine deposits present and that
have been buried sufficiently to generate hydrocarbons.
 The data indicates thick sequence of Jurassic/Cretaceous, as well as Triassic
sediments. Thickness of Paleozoic sediments is uncertain.
 Mae Ping Fault Zone active until Himalayan orogeny.
 Overall there seems to be at least three episodes of uplift and erosion in pre-Himalayan
orogeny time (Indosinian I, II and mid Cretaceous).
 Gravity and seismic data suggests at least 5-6 km deep basins.
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Project: Tonle Sap
Block XI Cambodia

10. Information Memorandum Confidential
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Proposed Transaction Overview
CRL, the holder of 100% of the rights to take up the Block XI concession in the Tonle Sap Basin
of Cambodia, is considering farming down its interest in return for certain expenditures being
carried by a suitable investor. This divestment will be conducted by inviting offers from a limited
number of potential assignees/ farm-in partners/investors.
In consideration of providing you with confidential information on the proposed transaction, you
will be requested to enter into an agreement of confidentiality with CRL. With a confidentiality
agreement complete copies of the draft PSC agreement, Deed of Participation, JOA and Farm-
Out Agreement will be provided. In the period set out below potential investors will have the
opportunity to bid and if successful participate with CRL in the Block XI PSC. The successful
(technically capable) investor will be selected by Chplus and CRL in the timeframe detailed below
on the basis of the highest carry proposed for CRL for Phase 1 of the exploration program as
described in the draft farm-out agreement.
All bids shall be made on the basis that CRL will carry the Signature and Goodwill bonus and the
investor shall carry all other concession exploration and administration costs for the full period and
to the extent of the obligations as defined under the PSC agreement for Phase 1 of the
exploration period.
The planned timetable for securing participation in Block XI together with CRL is as follows:
Information Memorandum March 2010
Farm In Agreement Execution June 2010
Contacts
Cambodia Resources Limited has retained CHplus to act as its exclusive advisor and facilitator in
connection with the proposed transaction as detailed in this information memorandum. Any
communication or inquiry relating to participation in Block XI together with CRL should be directed
to the members of the CHplus team indicated below. Under no circumstances should Cambodia
Resources Limited be directly contacted with respect to the proposed transaction, unless so
advised by CHplus.
The CHplus contact team is as follows:
Christopher Newport Simon Gorringe
Commercial Director - Energy & Infrastructure Project Director - Energy & Infrastructure
Tel: +66 83757 9977 Tel: +44 7767 472714
Email: chris.newport@chplusresources.com Email: simon.gorringe@chplusresources.com
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Project: Tonle Sap
Block XI Cambodia