Emerging Lower Tertiary Play Trend Offshore Newfoundland

March 2016

NL has Numerous Large Offshore Basins

Total Offshore Sedimentary Basins Area (km2)

Data from Wood Mackenzie, 2010 and Nalcor 2012

657,929

910,046

545,169

Nalcor’s Exploration Role

Bidding/Lease Rounds

Development and Production Initial

Exploration

Upstream Exploration/Development Cycle

Early Stage Exploration

Exploration Drilling/Appraisal Initial

Exploration

Basin/Prospect Evaluations

Pre-Competitive Phase

Nalcor is the State Energy Company of Newfoundland and Labrador 1500 employees, 6 lines of business

Evaluating NL’s Frontier Basins

• Nalcor is systematically evaluating all NL basins to:

• Find new oil/gas resource

potential and evaluate prospectivity

• Identify and close key knowledge gaps that hold back new activity

Nalcor Energy Exploration Strategy System

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Nalcor – Airbus Satellite Seeps Project • In preparation for targeting a

large scale regional 2D seismic program, Nalcor partnered with Airbus to conduct a satellite oil slick mapping project covering all of offshore Newfoundland and Labrador

• Petroleum systems in area tend to be leaky so seeps data may help find new source rocks/basins

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NL Seismic Investment

• Nalcor invested in a TGS/PGS regional 2D seismic program (Nalcor-OGDP seed funded)

• Long offset, Geostreamer acquisition

• Survey covers over 110,000 line kms (2011-2015)

• Detailed 5x5 km grid in Flemish Pass Area and Labrador South

• 10x10 km grids in upcoming license round areas

• Survey is one of the largest data programs globally

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Size comparison to US Gulf of Mexico (US-BOEMRE)

Fairway from Orphan to West Greenland (Carter et.al, 2013)

Fairway from Orphan to West Greenland (Carter et.al, 2013)

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Near Angle Far Angle 10 5 0

km

Eocene/Oligocene Turbidites

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Near Angle Far Angle 10 5 0

km

Eocene/Oligocene Turbidites

Near Near Mid Mid Far Far

10 5 0

km

N

NM MF

F

Angle Stack Ranges

Near Near Mid Mid Far Far

10 5 0

km

N

NM MF

F

Angle Stack Ranges

Near Near Mid Mid Far Far

10 5 0

km

N

NM MF

F

Angle Stack Ranges

Near Near Mid Mid Far Far

N

NM MF

F

Angle Stack Ranges

10 5 0

km

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Offshore NL

Johann et al., 2009

Brazil Field Offshore NL

Top Unit

Base Unit

Prospect Example

Offshore NL

Same Scale

Nascimento et al., 2014

Top Unit

Base Unit

Top Unit

Base Unit

Offshore NL Marlim Field, Brazil

Prospect Example

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Time slice - 6000 ms

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Hibernia

Hebron

Terra Nova

White Rose

Scale of Jeanne d’Arc fields overlain on 3D survey outline

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Seabed Coring • Petroleum system is a key

unknown in our frontier basins – Need to reduce that

uncertainty

• Partnered with MG3 and AGI with input from – TDI-Brooks

– FIELAX

– Airbus Space & Defense

• Survey was designed to begin to address the issue

• Covers the upcoming 2016,2017 & 2019 License Rounds

Satellite Slicks

DHIs?

Turbidites

Satellite Slicks

DHIs?

Seabed Coring – Example

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Seabed Coring – Example

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Seabed Coring – Microseep Profile

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Seabed Coring - Results

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Summary

• New data has unveiled a newly defined lower Tertiary play trend with potential Mesozoic charge – early days in the analysis

• 2D and 3D seismic and seabed coring (mutliclient surveys) helping to define new play and prospects

• Seismic Inversion project underway

• Basin Modeling project underway

• Resource Assessment for 2016 license round area will be released in August 2016 (Beicip Franlab)

Thank you nalcorenergy.com/exploration