EQUATORIAL GUINEA

EXPLORATION STATUS

Alan Soulsby,Director, ECL and Advisor to Ministry of Mines,

Industry & Energy

Kuala Lumpur, March 2005

Alba Relicensed

Alba Discovery

0

2

4

6

8

10

12

14

196719

68196

919

70197

119

72197

3197

419

75197

619

77197

819

7919

80198

119

82198319

84198

519

8619

87198

819

89199019

91199

2199319

94199

5199

6199719

98199

9200020

01200

2200

3200420

05

0

10

20

30

40

50

60

70

80

90

100

EXPLORATION DRILLING HISTORYEXPLORATION DRILLING HISTORY

0

2

4

6

8

10

12

14

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Years

Per

Yea

r

0

10

20

30

40

50

60

70

80

90

100

Cm

ula

tive

Zafiro

Ceiba

1,000m water

2,000m water

WELLS DRILLEDWELLS DRILLED

1992-99……..Exploration on Zafiro trend to the 1,000m isobath (33 wells).Ceiba Field discovered 1999.

1999-2004……Exploration extended westwards along the Niger Delta Deformation Front (3 wells) beyond 2,000m isobath and around Alba (10 wells) but mostly along and inboard of the Ceiba Trend (31 wells)

200m water

TO 1992…….Drilling from 1967 within the 200m isobathfound the Alba condensate discovery which was deemed non-commercial.

13 wells in Niger Delta6 wells in Rio Muni

Ocean FractureZones

Regional Regional Structural Structural & Basin & Basin FrameworkFramework

PETROLEUM SYSTEMSPETROLEUM SYSTEMS

SOURCE SOURCE QUALITYQUALITY

0 100 200 300 400 500 600 700 800 900 1000

HI (mg/gTOC)

400

410

420

430

440

450

460

470

480

490

500

T-m

ax (°

C)

Type III (gas-prone)Type II (oil-prone)

Type I (oil-prone)(Algal-Lacustrine)

Algal-Bacterial Marine)(Humic coals and shales) (Exinitic Land Plant, or

TOC by s ize

0.0 - 1.0

1.0 - 2.0

2.0 - 4.0

4.0 - 6.0

6.0 - 8.0

8.0 - 10.0

10.0 - 12.0

12.0 - 35.0

35.0 - 99.0

No dataNote: Lines based on Transformation Ratios from LLNL Kinetics, but data plot outside envelopes

TERTIARY

OIL & GAS PRONE SOURCE (NIGER

DELTA)

LATE CRETACEOUS

OIL PRONE SOURCE

Late Tertiary PlayLate Tertiary PlayOligo-Miocene source mature towards and under Niger Delta thrust front

Miocene fan and channel sands provide excellent reservoirs, derived from north-east

Pliocene canyon systems sourced from north and north-west

Around 2.5 billion boe discovered

2

4

6

PLIOCENECHANNELS

NIGER DELTAFRONT

ALBA

BASETERTIARY

MID MIOCENE CHANNEL

Data courtesy of GESeis and Atlas Petroleum

Cretaceous PlayCretaceous Play

Apto-Turonian source mature in basinalareas

Albo Aptian source mature in marginal areas

Campanian fan and channel sounds provide excellent reservoirs

Exploration to date only in upper channel systems – PROVEN OIL~ 500mmbbls

Lower channel and fan systems – HUGE POTENTIAL

5

2

BASETERT

BASECRET

CAMPANIAN CHANNEL

Early Tertiary PlayEarly Tertiary Play

Proven play in Cameroon (Coco Marine)

Late Eocene fan and channel sounds well imaged seismically

Apto-Turonian source mature in basinalareas

Deepwater play, untested in EG

OLIGO-MIOCENE FAN?

Data courtesy of GESeis and Atlas Petroleum

3D3DSEISMIC COVERAGESEISMIC COVERAGE

All areas coloured RED now covered by 3D seismic, around 20,000sq. kms..

The State acquires 3D seismic on unlicensed areas through GESeis,its JV seismic contractor.

GESeis promoting SBL surveys in deep water areas to reduce exploration risk.

Blocks EBlocks E--8/E8/E--9/F9/F--8/F8/F--9 Equatorial Guinea9 Equatorial Guinea

Prospect EProspect B Prospect A

Prospect C

Prospect D

NE

SW NW

SE

H3

H4

A

A’

Seismic line down Channel Feature

Characteristic down-cutting characterwith discontinuous high-amplitude

events

BLOCKS EBLOCKS E--8/E8/E--9/F9/F--8/F8/F--9 9 (Former Block E)(Former Block E)

DATA PACKAGEDATA PACKAGE

• Good quality recent vintage 3D seismic data

• SBL data suggests hydrocarbon bearing prospects

• Prospects ready to drill

• Time to first oil reduced

• Large element of work commitment covered

• Licence fee cost recoverable under PSC

2005 RELINQUISHMENTS2005 RELINQUISHMENTS

DATA AVAILABLEDATA AVAILABLE

• Historical seismic, various vintages

• Well data packages

• Basin studies and evaluation reports:

• 2005 Equatorial Guinea Seismic Mapping & Play Fairway

mapping project

• 2001 Rio Muni Basin Study

• 1998 Rio Muni Petroleum Potential

Exploration IssuesExploration Issues……………………

• Immature exploration province• Large sediment volume • Proven & mature source rocks – large volumes

generated – low source risk• Excellent channel and fan sands - low reservoir

risk• Many stratigraphic trap opportunities, some

structural• Large unlicensed area, extensive database

………….LARGE REMAINING POTENTIAL