nicaragua exploration project blocks perlas and tyra infinity energy resources, inc

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NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc. INFINITY ENERGY RESOURCES, INC. "IFNY"

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Page 1: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

NICARAGUA EXPLORATION PROJECTBlocks Perlas and Tyra

NICARAGUA EXPLORATION PROJECTBlocks Perlas and Tyra

Infinity Energy Resources, Inc.Infinity Energy Resources, Inc.

INFINITY ENERGY RESOURCES, INC.

"IFNY"

Page 2: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

Forward-Looking Statement

This Presentation of Infinity Energy Resources, Inc. (the "Company") contains forward- looking statements that may include the words "believes," "expects," "anticipates," "intends," "estimates," "plans," "projections" or other expressions that are predictions of or indicate future events. These forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from such statements. A wide variety of factors that may cause the actual results to differ from these statements include, but are not limited to, the following: the Company's ability to raise sufficient capital and/or obtain a partner on acceptable terms, or at all, to pursue exploration and development activities regarding its Nicaraguan Concessions; the success of its efforts to acquire and process seismic data relating to such Concessions; the quantity of hydrocarbons beneath the Concession blocks; the costs of drilling and completion of any wells; risks that drilling wells will not result in commercially viable oil and national gas production; operating risks, delays and problems; the availability of services on acceptable terms; changes in the prices of oil and gas; unexpected negative geological variances; governmental uncertainties in Nicaragua; actions by creditors with respect to debt obligations, liquidity and capital requirements; competition from larger, more established companies with far greater economic and human resources; the effect of changing economic conditions; changes in U.S. government regulations, tax rates and similar matters; and other risks described in its Annual Report on Form 10-K and periodic reports filed with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise.

This Presentation is neither an offer to sell or a solicitation of an offer to buy any securities of the Company.

Page 3: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

NICARAGUA EXPLORATION PROJECTBlocks Perlas and Tyra

Multi-Billion Barrel Prospect

NICARAGUA EXPLORATION PROJECTBlocks Perlas and Tyra

Multi-Billion Barrel Prospect

Infinity Energy Resources, Inc.Infinity Energy Resources, Inc.

Page 4: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

Company Overview• Infinity Energy Resources, Inc. (IFNY: OTCQB) is a natural

resources exploration and development company with oil and gas concessions covering 1.4 million acres offshore Nicaragua in the Caribbean Sea.

• Initial studies have estimated reserves in multi-billion barrel range.• The Company’s concessions are located adjacent to Noble

Energy’s (NYSE: NBL) 1.8 million-acre offshore concessions. • 25,406,775 Common Shares, 3,399,500 Options (WA $4.14) and

2,277,710 Warrants @ weighted average of $2.06 Outstanding.• Fully diluted 31.0 million shares• Approx. $35 million Market Cap• Completed environmental assessments, initiating additional 2-D

and 3D seismic program and currently talking to potential financial and industry partners.

• Estimate 1st Company well to be drilled in late 2014 or early 2015.

Page 5: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

Nicaraguan Concession Highlights

• Completed environmental studies, reprocessed 2-D seismic data and developed geological mapping. Total expenditure to date $5.5 mil.

• A new 2D & 3D seismic program has begun and is estimated to be completed in 2nd Quarter.

• 4 large seismically defined closures on 120 mile long structure covering 547 square miles

• Estimated Resource potential from Eocene only: P50 4.6 bn barrels

Potential cretaceous not quantified yet but could be larger than Eocene.

• Great fiscal terms from Nicaraguan government.

• Easily managed work commitment.

• Shallow water.

• Independent geologists who analyzed the data and mapped the concession are Renato Bertani, Luciano Chas, Jeff Roberts and Bob Fleming.

Page 6: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

• Renato T. Bertani holds a PH. D. in Sedimentary Geology and Geochemistry from the University of Illinois, USA.

• Over 33 years of international experience in exploration and production projects, particularly in South America, West Africa, UK, and the USA Gulf of Mexico.

• Served for 31 years in various technical and high level managerial positions with Petrobras, the Brazilian state oil company, including:

• President of Petrobras America, Inc. (2001-2006)• Managing Director of Petrobras UK (1998-2001)• Director of International E&P activities for the Petrobras Group (1992-1997)

• Involved in several major oil and gas discoveries, including:• San Alberto and San Antonio gas fields of Bolivia• Akpo and Agbami oil fields offshore Nigeria• Cascade, Chinook and Saint Malo in the Gulf of Mexico’s Lower Tertiary

play.• Vice President of the World Petroleum Council• Responsible for the technical program for the 2011 World Petroleum Congress

in Doha, Qatar.

Renato T Bertani - GeologistRenato T Bertani - Geologist

Page 7: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

• Mr. Chagas holds a Ms. Sci. Degree in Sedimentary Geology and Stratigraphy from the Federal University of Rio Grande do Sul, Brazil.

• Over 35 years of experience in the exploration of sedimentary basins around the world.

• Considered an expert in sedimentary, stratigraphic and structural characteristics and petroleum systems.

• Served with Petrobras for over 30 years in several technical and managerial positions.

• In 2004, formed Brazilian-based Consultoria em Geologia Geofísica e Informática do Petróleo LTDA (“CGGIP”) consulting various oil companies operating in Brazil.

• Published more than 50 papers and articles on the Petroleum Geology of several Brazilian sedimentary basins, particularly the Recôncavo, Sergipe-Alagoas and Potiguar basins.

• Lectures regularly on subjects such as Stratigraphy, Structural Geology, Petroleum Geology, and Well Log Analysis at various Brazilian universities.

Luciano Seixas Chagas - GeologistLuciano Seixas Chagas - Geologist

Page 8: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

B.A. Degree in Geology from the University of Tennessee at Chattanooga and Ms. Sci. Degree in Geology from Memphis State University.

31 years of petroleum exploration experience with Amoco, Sun and Oryx. Founding member of The Unconventionals, who build exploration projects in U.S. Shale Gas plays.

Developed over 1.5 million acres of shale gas projects from 1999 to present. Interests in over 400 shale gas wells.

Exploration geologist (Amoco, Sun, Oryx) Manager Operational Planning and Analysis (Oryx)

Corporate planning and budget functions for $400 million in worldwide exploration and production, global portfolio economic analysis, benchmarking and competitor analysis.

Exploration Manager Gulf of Mexico (Oryx) Manager Special Exploration Projects (Oryx) Manager of E&P Technology (Oryx) Exploration experience in numerous U.S. and Canadian Basins. Exploration geologist and manager in numerous basins including Offshore Nicaragua, eastern

Algeria, the Northwest Shelf of Australia, the Pre-Caspian Basin Kazakhstan, the Oriente Basin Ecuador and the U.K. North Sea.

Founding member of Eldorado Resources, LLC focused on Unconventional Oil opportunities.

Jeff Roberts - GeologistJeff Roberts - Geologist

Page 9: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

Ba. Sci. and Ms. Sci. Degree in Geological Sciences from Lehigh University in Bethlehem, PA. Over 38 years of experience involving a wide variety of geoscience assignments. Sound understanding of geological and geophysical principles, including seismic processing,

modeling, potential fields and Amplitude Variation with Offset (AVO) analysis techniques, and how they can be effectively applied in the search for hydrocarbons.

Extensive experience in the generation and review of drilling prospects in many of the U.S. and overseas hydrocarbon basins.

Prospect identification and mapping, exploratory and water injection well site selection, seismic acquisition, processing QC, Vertical Seismic Profile survey design, AVO analysis, prospect review, and gravity/magnetic processing and interpretation for a number of Texas-based E&P companies.

Geophysicist for Kerr-McGee Oil and Gas Onshore, LLC and Anadarko providing geophysical support to E&P teams in plays along the Texas Gulf Coast, in Louisiana, West Texas and New Mexico; generated and reviewed prospects for international exploration programs in Brazil and Ecuador, including coordinating the acquisition, processing and interpretation of several 3D surveys on Kerr-McGee’s Brazil leasehold in the Santos Basin.

Positions with Oryx Energy Company, including Manager of: Subsurface Imaging (seismic processing, depth migration, seismic and gravity/magnetic modeling and interpretation projects); licensing & maintenance geoscience software contracts and sublicensing of proprietary geophysical software; participation in joint industry projects, university consortia and DoE technology transfer initiatives; Reservoir Characterization Services (reservoir characterizations and AVO analysis in the Gulf of Mexico and worldwide); Application Development and Exploitation; Geophysics, Southeast District; and Geophysics, Gulf of Mexico West District.

Robert Fleming - GeophysicistRobert Fleming - Geophysicist

Page 10: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

TYRA

PERLAS

NOBLEEnergy

Geographic Location

NBL Concessions

IFNY

IFNY

Page 11: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

Infinity holds 100% interest in Blocks Perlas and Tyra, located in shallow waters offshore Nicaragua

Infinity ConcessionsInfinity Concessions

Page 12: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

Fiscal Summary

• Work Commitment for each block broken into 4 Sub-Periods.

• Tyra:– Sub-Periods 1, 2, & 3 (4 years) Acquire, process and

interpret seismic data.– Sub-Period 4 (2 years) Drill 1 well to 10,000’ or to test

the Cretaceous.• Perlas:

– Sub-Periods 1 & 2 (3 Years) Acquire, process and interpret seismic data.

– Sub-Periods 3 & 4 (3 Years) Drill 2 wells to 10,000’ or to test the Cretaceous.

Page 13: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

Contract and Fiscal TermsContract and Fiscal Terms

Page 14: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

Evidence for Positive Petroleum System

• 26 wells drilled, 10 have oil or gas shows, at least two have tested measurable hydrocarbons.

• Shell Perlas#1 well tested 350 bo/day

• Shell Perlas#1 confirmed Eocene source rock

Wells DrilledWells Drilled

Page 15: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

Geologic and Geophysical Interpretation

Geologic and Geophysical Interpretation

Geologic and Geophysical interpretation and mapping was based on the following data:

• Geophysical Data

• 9,731km of. various seismic surveys acquired during the 70’s and reprocessed by Fugro in 2000

• 3,096 km of new seismic acquired and processed by Fugro in 1999

• 3,096 km of magnetic and gravimetric profiles acquired and processed by Fugro in 1999

• Well Data

• Limited information on previous wells obtained through an interpretation report prepared by Fugro-Geoteam AS in 2001

Page 16: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

Depth Seismic MapLower Eocene

Depth Seismic MapLower Eocene

Seismic interpretation and structural map indicate

• Intense thrusting and strike slip faulting

• The Nica-Tinkham ridge is the result of transpressional deformation along a major strike slip fault

• Tectonic blocks controlled the sedimentation, particularly the development of reef system along the elevated parts of fault blocks

• The most prominet tectonic high of the area, the Nica-Tinkham ridge, traverses both Tyra and Perlas blocks

Page 17: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

Reserve Potential

• Identified 4 large structural closures along the

Nica-Tinkham Ridge at the top of the Eocene.• Shell #1 Perlas tested 350 BOPD from the Eocene.• Potential Eocene reserves assuming: 30 meters of

pay, porosity of 20%, oil saturation of 65%, recovery factor of 35%. Based on variations in size of closure:– P50: 4.6 Billion Barrels

• Potential Cretaceous reserves are not quantified but could be even larger.

Page 18: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc
Page 19: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

Data provided by Nicaragua MEM

Page 20: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

Deepest Mappable Horizon – Early Eocene

Page 21: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

1999 Vintage Data: N72-2CS99-110

Approximate top of Cretacious

Page 22: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

1999 Vintage Data: N72-2CS99-111

Page 23: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

1999 Vintage Data: N72-2CS99-113

Approximate top of Cretacious

Page 24: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

Approximate Top of Cretaceous

Page 25: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

Gravity – 60 km Low Cut Filter

Warm colors = High Gravity,high density, shallower Cretaceous

Cool colors = Low Gravity,low density, deeper Cretaceous

Page 26: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

Bathymetry Coverage

Page 27: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

Mexico Reforma/Cantarell Area:Over 15 Billion Barrels of Oil Recoverable

Venezuela Maracaibo Basin:Over 1 Billion Barrels of Oil Recoverable

Regional Cretaceous Carbonate Fields

Regional Cretaceous Carbonate Fields

Infinity Concessions

Page 28: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

Early Cretaceous Tectonic Reconstruction

Early Cretaceous Tectonic Reconstruction

Nicaraguan Caribbean Shelf

Lake Maracaibo

Area

Reforma/Cantarell

Rubelsanto

Cretaceous Carbonate Outcrops

Page 29: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

La Paz Field X-SectionLa Paz Field X-Section

Page 30: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

La Paz Field - VenezuelaLa Paz Field - Venezuela

• Production from dense Cretaceous carbonates with low matrix permeability and fractured basement.

• Structure related to complex wrench fault tectonics.• Initial Cretaceous discovery well drilled in 1944 to 1,800’

produced at a rate of 1000 BOPD.• Development well P-84 produced at a rate of 30,000

BOPD.• Field production peaked at 160,000 BOPD in 1950.• By 1992 field had produced 867 million barrels of oil with

572 million from the Cretaceous carbonates.• Ultimate recovery is expected to be 1,041 million barrels

of oil with 63% from the Cretaceous carbonates.

Page 31: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

Size of Nica-Tinkham Ridge Captured by

Infinity

Lake Maracaibo Area Production

Page 32: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

Cretaceous Carbonate outcrops

Onshore Nicaragua Cretaceous OutcropsOnshore Nicaragua

Cretaceous Outcrops

Page 33: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc
Page 34: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

4.6 Billion Barrels of Recoverable Resources

Page 35: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

4.6 Billion Barrels of Recoverable Resources

1 Billion Barrels of Recoverable Resources

Page 36: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

4.6 Billion Barrels of Recoverable Resources

1 Billion Barrels of Recoverable Resources

90% Given to Partner100 Million Barrels of Recoverable Resources

Page 37: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

4.6 Billion Barrels of Recoverable Resources

1 Billion Barrels of Recoverable Resources

90% Given to Partner = 100 Million Barrels of Recoverable Resources

Using Only $12.00/Barrel of In-The-Ground Value$12 x 100mm = $1,200,000,000

Page 38: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

4.6 Billion Barrels of Recoverable Resources

1 Billion Barrels of Recoverable Resources

90% Given to Partner = 100 Million Barrels of Recoverable ResourcesUsing Only $12/Barrel of In-The-Ground Value: $12 x 100mm =

$1,200,000,000

If INFINITY has 30mm Shares Outstanding$1,200,000,000 ÷ 30mm Shares = $40 Per Share Valuation

Page 39: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc
Page 40: NICARAGUA EXPLORATION PROJECT Blocks Perlas and Tyra Infinity Energy Resources, Inc

NICARAGUA EXPLORATION PROJECTBlocks Perlas and Tyra

NICARAGUA EXPLORATION PROJECTBlocks Perlas and Tyra

Infinity Energy Resources, Inc.Infinity Energy Resources, Inc.

INFINITY ENERGY RESOURCES, INC.

“IFNY”