eurogas international inc. annual general meeting june 15, 2009 cnsx: “ei”
TRANSCRIPT
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EUROGAS INTERNATIONAL INC.
ANNUAL GENERAL MEETING
June 15, 2009
CNSX: “EI”
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Assets of the Company
• 45% participating interest in the Sfax Permit comprising 1 million acres
• 45% ownership of an offshore production platform
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Eurogas International Inc.
• August 5, 2008: Eurogas International Inc. (EII) was launched as an independent company
• Each shareholder of Eurogas Corporation received one newly issued common share of EII for every five shares of the Eurogas Corporation shares held
• Eurogas Corporation holds Preferred Shares: face value $32.5MM
• EII was funded with $10 million in treasury
• On March 31, 2009, EII began trading on the Canadian National Stock Exchange (CNSX) under the symbol “EI”.
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Sfax Permit Area
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Ras El Besh 3 Exploration Wells
• REB3 drilled in 2008 as commitment well for the Sfax Exploration Permit
• Targeted the El Garia and Reineche carbonate formations down to 2300 m
• Drilling costs paid by farmin partner
• Results: El Garia oily but low permeability
Reineche tested 280 API oil Drilled sidetrack: tested oil Re-processing of seismic
required
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Farmin by Delta Hydrocarbons
• April 2008: Delta farmed in for a 50% participating interest in the Sfax permit area and the production platform
• Delta commitment: spend US$125 million
• EII participating interest from 45% to 22.5%
• EII received US$ 11.2 million cash
• May 22, 2009: Delta exits after spending US$ 110 million
- Delta exit terms: Eurogas participating interest returns to 45% - Delta responsible for 50% of abandonment costs at REB3- Agreement to monetize production platform- Delta can recover up to $20 million from sale of equipment or oil- Delta retains 50% participating interest in Seawolf arbitration
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Sfax Permit: a portfolio of prospects
• Reineche structures to follow up on REB3- Cercina: 12 MM bbl oil recovered, 2500 bopd- Chergui: 88 bcf gas, 50 MMcf/d
• Ashtart satellites- Ashtart field: 330 MM bbl oil produced, 8500 bopd
• Salloum prospect- flow tested 1,800 bopd
• Jawhara prospect- flow tested 1,200 bopd
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Exploration Program
• Geological studies
- 3D basin modeling study- Reineche carbonate study- Bireno carbonate study
• Geophysical activity
- Reprocess 2004 Sfax 3D survey- Reprocess 2007 Anadarko 3D survey- Reprocess 2007 Salloum 3D survey- Reprocess older 3D survey on Ashtart- Thin bed analysis on all seismic
• Reineche 2D seismic program depends on reprocessing results: likely 2010
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Offshore Production Platform
• EII ownership: 45% of Innovative Production Systems Inc.
• Sold 50% to Delta for US$ 16.5 MM (gross)
• Repairs / modifications paid by Delta totalling US$ 13.6 MM
• 2009 Budget of $6MM to be spent on further improvements and refurbishment to prepare for lease or sale
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2009 Budget Summary for Sfax Permit Area
• Sfax Permit Area US$ 5.4 MM
Delta spending in Q1 2009 ($ 1.8 MM)
Net to EII US$ 1.7 MM
• Production Platform
Repairs and upgrades US$ 6.0 MMDelta spending in Q1 2009 ($ 1.9 MM)
Net to EII US$ 1.8 MM
• TOTAL net to EII for 2009 US$ 3.5 MM