Download - UNX Energy 2011 Corporate Presentation
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Corporate PresentationNovember 2010
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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 inproject 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.
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UNX is exploring the South Atlantic MarginBasins offshore Namibia
UNX has interests in over 51,000 gross km2 ofhighly prospective exploration rights
Brazil and Namibia are on oppositemargins of the South Atlantic
Common geological history and similarpetroleum system
Four recent giant discoveries reported indeeper 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 representthe worlds largest find since the 1970s
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Namibia The Next Oil Frontier
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Stable democracy: gainedindependence from South Africa in1990
Area slightly smaller than theprovince of British Columbia, Canadaand 1.5 times the area of France
Population: 2.1 million people,median age 21, 37% urban
Capital city is Windhoek
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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
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Offshore Leases Namibia and South Africa
UNX Energy Interests
AlphaPetro
Enigma/Chariot
Arcadia/Tower
Namcor
Pancontinental Oil & Gas NLLabrea/HRT
Maurel n Prom - Recon
Enigma/Chariot/Petrobras
Namibia Offshore Land Holdings
NW South Africa Offshore Land Holdings
PetroSA
Shell
Forest
BHP
Kudu Production Licence Gazprom/Tullow
Namibia
Angola
South Africa
Botswana
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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 - Block2713A
2.39 Billion BOE unrisked,
567 Million BOE risked
Robust risked economics, supported bysizeable resources, high probabilities of
success Adjacent to blocks currently being
explored by majors
2D seismic data purchased, 3D seismicsurvey planned, looking to secure farm-outpartners
100 km
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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 UNXs regional landposition and strategic partnerships
Partnership with HRT O&G provides:
Access to the worlds 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
hemispheres majors
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2.7% Carried Interest Blocks: 1711A&B
Total gross area 8,903 km2 (2,199,041acres)
UNX - 2.7% non-operated carried interest
Kunene #1 well drilled and cased to 5,050metres
PetroAlliance (Subsidiary of Schlumberger)has identified a potential gas zone ofinterest in the Kunene well.
Licence extended on April 5, 2010 for anadditional 2 years
100 km
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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 andporosity to allow for the accumulation and production ofhydrocarbons
Trap the hydrocarbons are buoyant and have to be trapped withina structural (anticline, fault block) or stratigraphic trap
Source Rock a mature source and timing sequence of migration is alsocritical as the trap must predate the migration
Seal Integrity an impermeable sealing zone, often a shale sequence,
which must also predate hydrocarbon migration and retainintegrity 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 AtlanticMargin using investigative techniques that have proven
additive to the POS9
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Reservoir
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RESERVOIR Historical Exploration Results
Kudu 9A-1 (2814A) 167m Chevron 1973 Orange 4536 mbKBGas & Oil
shows
good
sandstonegood good
Kudu 9A-2
Kudu 2(2814A) 168m Swakor 1987 Orange 4505 mbKB
Gas & Oil
shows
poor
sandstonegood
stratigraphic
poor
Kudu 9A-3
Kudu 3(2814A) 166m Swakor 1988 Orange 4522 mbKB
Gas & Oil
shows
good
sandstonegood good
Kudu - 4 2814A 176 m (MSL) Shell 1996 Orange 4719 mbKBGas & Oil
shows
good
sandstonegood good
2814/11-4
Kudu - 52814A 162.9m (MSL) Shell 1998 Orange 4898 mbKB
Gas & Oil
shows
good
sandstonegood good
2814/11-5
Kudu - 6
2814A 171m (MSL) Shell 2002 Orange4725
Mahbdf
Gas & Oil
shows
good
sandstone
goodstratigraphic
poor2814/7-2
Kudu - 72814A 179 m (MSL) Shell 2002 Orange 5275 mbKB
Gas & Oil
shows
good
sandstonegood
stratigraphic
poor
Kudu - 8Kudu
Production179 m Tullow 2007 Orange 4725m
Gas & Oil
shows
good
sandstonegood
stratigraphic
poor
1911/15-1 1911 489 m (MSL) Norsk Hydro 1994 Walvis 4586 mbKBOil shows in
core 4
good
carbonatefair poor
1911/10-1 1911 631m (MSL) Norsk Hydro 1996 Walvis 4185 mbKB Oil showsgood
sandstonefair poor
* 2012/13-1 2012 650m (MSL) Sasol 1995 Walvis 3712 mbKB Oil showsgood
sandstonegood poor
* 2213/ 16-1 2213 240m (MSL) Ranger Oil 1995 Walvis 2627 mbKB Oil showsgood
sandstone
poor poor
2313/?5-1
Shark 12313 ?? Shell 1998 Luderitz 2588 mbKB Oil shows
good
sandstonepoor poor
2513/8-1 2513 243m Norsk Hydro 1998 Luderitz 2423 mbKBOil shows in
core 1
good
sandstonepoor poor
2815/15-1 2815 177m (MSL) Chevron 1996 Orange 4751 mbKBGas & Oil
shows
tight
sandstonefair
stratigraphic
poor
Field & Lab 2010
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The Gas-Condensate PetroleumSystem from Kudu Field
Kudu
Existing wells all drilled onshelf, where there is no trap
New wells need to target syn-riftwhere proven source existsbelow Barremian shale seal.
Turonian
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SourceRock
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Mello (2000)
BRAZIL
AFRICA
Proterozoic/Paleozoic
Paleozoic
Proterozoic/Paleozoic
Paleozoic
Namibia
All wells drilled offshoreNamibia had oil shows,(confirmed by biomarkerand diamondoid studies)
This analysis confirmsidentical age and rock typeto Brazil
SOURCE ROCK Correlation:Brazil to Africa
Marine Deltaic Tertiary
Lacustrine Saline Oil Type
LacustrineBrackish/Saline Oil Type
Sedimentary Basins
Marine Anoxic Albian-Cenomanian
Esprito Santo
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SOURCE ROCK Oil Seeps, SatelliteSurveys in the Orange Basin
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What is Our Probability of Success?
Reservoir sediment deposition moves from onshore to offshore(east to west), and sediment quality volume is highsuggesting reservoir characteristics in deeper watershould be very good. Confirmed in well data andinferred in seismic
Trap clear from seismic and petroleum model that trappreceded petroleum migration. Trap also evident onseismic
Source Rock source rocks in the South Atlantic margin are prolific.Two source rocks confirmed in Namibia. Oil slicks, oilsamples extracted from the nearby Kudu gas field,and oil stains in all offshore wells confirm presence ofmature and active petroleum system
Seal Integrity shale sequence is very thick in the deeper water (inexcess of 200 metres) and does not appear breached
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Block 2713A Prospective ResourceSummary
Description P90 (Low Est.) P50 (Best Est.) P10 (High Est.) Mean Est.
Unrisked Recoverable Oil (bbl - 1000s) 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 - 1000s) 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 - 1000s, Gas to BOE at 6:1)
1,506,435 2,256,456 3,439,986 2,391,742
Gross Risked BOE(BOE - 1000s, 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 thereport. 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% POS17
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Of the Four Basins in Offshore Namibia, theOrange Basin is of Great Interest and Potential
Namibias only discovery to-date (Kudu), confirms many of thegeologic conditions required for success
Petrobras farm-in on Chariot, being immediately east of the UNX2713A Block
Other oil and gas companies are active in the Orange Basin (Shell,Tullow, Forest, Gazprom, Petrobras, BHP Billiton, and PetroSA).
Kudu commercialization initiatives bring options to UNX (andpotential 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 incategories of seal and reservoir
Reasonable well control and technical data as the majority ofwells drilled offshore Namibia are located in the Orange Basinoffsetting UNX land holdings
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UNX Strategy
Near-Term:
Set-up data room for 2713A, 3D seismic acquisition
Actively pursue farm out partners for both seismic acquisition and the drillingof a well
Implement further work programs, detailing the mapped features and addingto prospect inventory
Acquire 3D seismic during the first half of 2011
Mid-Term:
Balance the Companys 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 throughprudent capital allocation resulting in superior economic returns
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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 atCormark Securities Inc.
Over 10 years of senior management experience in the oil and gas industry with Canadian Hunter Exploration Ltd, Crestar Energy Inc. andMurphy 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 fielddevelopment
Previous management roles with Marathon Canada, Sherritt International Corporation, and most recently managed several large offshoredeepwater 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
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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 operatingand joint venture agreements, negotiation and execution of resource-based transactions, and other legal andcommercial 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
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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 firms 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
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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 carriedinterests
Mirror image to offshore Brazil (worlds biggest crude oil discoveries in past 30
years)
Angola (Namibias neighbour to the north) is Africas largest oil producer with
offshore reserves estimated in excess of 16 billion barrels
Probabilities of success - higher than normal
Certifiable potential resource for Block 2713A Strategic partnership with HRT Oil & Gas
Intentions for a 2011 data room Block 2713A
Strong management team and Board of Directors
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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
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Contacts
Heidi Christensen Brown, Investor Relations
Telephone: (403) 218 2833
Email: [email protected]
David Feick, Investor RelationsTelephone: (403) 218 2839
Email: [email protected]
Maria Elliott, Vice President, Finance and CFO
Telephone: (403) 984-6430
Email: [email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]