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Information Memorandum

        Block XI Cambodia
        (Tonle Sap Basin)
        Participation Opportunity




CHplus R...
Information Memorandum                                                                             Confidential
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Information Memorandum                                                                             Confidential
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Information Memorandum                                                                             Confidential
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Information Memorandum                                                                             Confidential
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Information Memorandum                                                                             Confidential
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Information Memorandum                                                                                             Confide...
Information Memorandum                                                                                 Confidential
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Information Memorandum                                                                             Confidential
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Information Memorandum                                                                             Confidential
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Block XI Information Memorandum March 2010 C

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Block XI Cambodia Farm In Opportunity

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Block XI Information Memorandum March 2010 C

  1. 1. Information Memorandum Block XI Cambodia (Tonle Sap Basin) Participation Opportunity CHplus Resources (Cambodia) Limited March 2010
  2. 2. Information Memorandum Confidential ________________________________________________________________________________________________________________ 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. -2- Project: Tonle Sap Block XI Cambodia
  3. 3. Information Memorandum Confidential ________________________________________________________________________________________________________________ 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. -3- Project: Tonle Sap Block XI Cambodia
  4. 4. Information Memorandum Confidential ________________________________________________________________________________________________________________ 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. -4- Project: Tonle Sap Block XI Cambodia
  5. 5. Information Memorandum Confidential ________________________________________________________________________________________________________________ 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 -5- Project: Tonle Sap Block XI Cambodia
  6. 6. Information Memorandum Confidential ________________________________________________________________________________________________________________ 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 -6- Project: Tonle Sap Block XI Cambodia
  7. 7. Information Memorandum Confidential ________________________________________________________________________________________________________________ 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. -7- Project: Tonle Sap Block XI Cambodia
  8. 8. Information Memorandum Confidential ________________________________________________________________________________________________________________ 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 6 -8- Project: Tonle Sap Block XI Cambodia
  9. 9. Information Memorandum Confidential ________________________________________________________________________________________________________________ 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. -9- Project: Tonle Sap Block XI Cambodia
  10. 10. Information Memorandum Confidential ________________________________________________________________________________________________________________ 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 -10- Project: Tonle Sap Block XI Cambodia

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