technical advisory committee - ane.na · pdf file27 february 2015 africa new energies limited...

Africa New Energies Limited Technical Advisory Committee Meeting Slide number 127 February 2015

Technical Advisory Committee

February 2015 update


TAC presentation summary

Introduction to ANE’s new hydrocarbons

methodology

Prospectivity Overview of the Nama Basin

Satellite report

Geochemical and radiometric methods

Financial overview

Training

Work program and budget for 2015/16


Three competitive advantages

Technology - Unique surface based

exploration method triples probability of

success at 1/10th of the cost

Community - Alignment with local

communities and host governments –

delivers fiscal terms and geological insight

Financial engineering using innovation tax

breaks, entrepreneurial support and grants


The founding shareholders

Stephen Larkin - CEO & Co-founder Chartere Accountant with a extensive experience technology innovation

Created the integrated exploration algorithm with Brendon Raw

UN advisor to African governments on energy self-sufficiency

Brendon Raw - CTO & Co-founder Leading Rapid Application Developer with BP and Trafigura

Invented the Prophecy Virtual Smart Grid Solar System with Stephen Larkin

Seed investor in Quirk, Africa’s largest digital marketing agency

Peter Hutchison – Director and Geologist

BP regional geologist for Africa at the age of 26 after Magnus Discovery

Senior executive at BP and VP of exploration for BP’s Canadian and Egypt operations

Made multiple discoveries as an entrepreneur using satellite technology

Richard Jones - Legal Director

Head of Legal Department in BP Exploration

First Russian country manager for BP

Advisor to top performing AIM stocks Quadrise and Nautical Petroleum


The surface exploration phenomenon


Measurably effects of hydrocarbon microseepage


Key layers of evidence


3X chance of success at 1/10th of cost

$20m

$40m

$60m

$80m

$100m

$120m

$140m

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Rig mobilisation$8m quoted

Exp

lora

tio

n E

xpen

dit

ure

Probability of Discovery (Px)

Traditional

Our method

Iterative process –radiometrics, ground

tellurics, geochemistry, slim

hole drilling

Drill 3 wells, expect 2 discoveries –

approach 80% probability once

multiple discoveries

Satellite and airborne survey

Drill 4 wells, expect 1 discovery at Px 20% -

25%

3D seismic

2D seismic


Cross referencing surface data


Surface Manifestations of Microseepage

Geochemical reading shows that

paraffin levels are >100 times the

expected background readings

Radiometric readings show a 50% drop-off

of Potassium40

coinciding with the satellite edge of the

field

Visual evidence of bleaching of red earths


Gore Sorber

1000 0 1000 2000 3000

metres

Scale 1:50000

GORE-SORBER Exploration SurveyR

W.L. GORE & ASSOCIATES, INC.100 CHESAPEAKE BOULEVARD

ELKTON,MD 21921

USA

(410) 392-7600

Petroproduccion Ecuador

Sansahuari-Cuyabeno Prospect, Ecuador

Plate 1: Singue-1 Oil-like Signature (Model 2)

DATE DRAWN: November 15, 2001

REV. DATE:

DRAWN BY: RF

REV. #:

ORIG. CAD:

PROJECT NUMBER:

SITE CODE:

GORE-SORBER

GORE-SORBER

GORE-SORBER

Exploration Survey

Module

IS REG. PAT. & T.M. OFF.

IS A REGISTERED SERVICE MARK OF W.L. GORE & ASSOCIATES

IS A REGISTERED TRADEMARK OF W.L. GORE & ASSOCIATES

2001 W.L. GORE & ASSOCIATESC

THIS DRAWING AND ANY ATTACHMENTS HAVE BEEN PRODUCED FOR THE SOLE USE OF THE RECIPIENT AND MUST NOT BE USED, REUSED, REPRODUCED, MODIFIED OR COPIED IN ANY MANNER WITHOUT THE PROPER WRITTEN APPROVAL OF W.L. GORE & ASSOCIATES. THIS DRAWING MAY CONTAIN CONFIDENTIAL AND PROPRIETARY INFORMATION OF W.L. GORE & ASSOCIATES. ANY UNAUTHORIZED USE OF THIS DRAWING IS STRICTLY PROHIBITED.

NOTES & DEFINITIONS

Geochemical Model: The geochemical difference in surface soil gas signature between

analogous production and background (dry) areas, as defined by groups of model set samples.

This model is used to classify membership of the survey grid samples based on the degree of

similarity to the geochemical signatures of 'production' and 'background'.

Probability Value: The percent probability that the surface geochemical character matches

that modeled over a producing reservoir(s); or in the case of a frontier survey, model set samples

which are selected as exhibiting petroleum-like character.

Anomalous Threshold: The modeled probability value at or above which the geochemical feature

is most likely indicative of petroliferous accumulations

Geochemical Feature: Any collection of contoured surface values which seem to exhibit a common

influence and which may include probability values above and below the anomalous threshold.

NOTE:

This map illustrates a computer-generated contour surface of probability values calculated for each

sample location. Probability values are most accurate AT THE SAMPLED LOCATIONS. The contour

surface developed between the data points is an estimate of the probability and is subject to

uncertainty, which increases with distance from each sample location. Further resolution

of the contoured surface may be appropriate through additional soil gas sampling depending on

the end-use of the data.

15.017.520.022.525.027.530.032.535.037.540.042.545.047.550.052.555.057.560.062.565.067.570.072.575.077.580.082.585.087.590.092.595.0

Threshold value=82

Probability%

0 100

0

30

60

10%

30%

50%

70%

90%

Frequency Distribution for Survey Samples

Probability Value

Fre

qu

en

cy

Thre

sho

ld v

alu

e

PROJECTION INFORMATION

Projection: PSAD56 / UTM zone 18N

Ellipsoid: PSAD56

Major axis: 6378388

Ellipticity: 0.08199188998

Prime meridian: 0

Projection Method: TransverseMercator

Coordinate Units: m (=1 meters)

Local Datum: PSAD56toWGS84(2)

dX, dY, dZ: -270, 188, -388

Rx, Ry, Rz: 0, 0, 0

Scale: 0

LEGEND

Probability ValueSample Number

Oil well

Dry well

10

005

00

01

00

100

00

100

150

00

10

02000

01

00

250

00

10

005

00

01

00

10

00

01

00

15

000

10

0200

00

10

0250

00

355000 360000

355000 360000

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

55.0

60.0

65.0

70.0

75.0

80.0

85.0

90.0

95.0

Probability%

OIL Well

DRY Well


Ground Tellurics


Stratigraphic drilling vs conventional

Metric Traditional Modified slim well

Time to mobilise rig 1- 4 years to onshore Africa 3-6 months

Cost of mobilisation and drilling, 2,600 meter well

Mob/Demob = $8,000k Modification = $0k

Drilling = $10,000k Total = $18,000k

Mob/Demob = $250kModification = $150k

Drilling =$2,850kTotal =$3,200k

Timelines Wait – 2-4 year yearsMobilisation – 6 months

Drilling 28 daysTotal – minimum 3 years

Wait – 3 monthsMobilisation 2 weeks

Drilling 150 daysTotal - maximum 1 year

Quality of data Mud log Core library

Completion options 8 inch diameter = completion for production on

discovery

3 inchesCan ream to 4.5 inch

Modest Production 1 7/8 inch casing


Key Milestones Achieved

Research and

Development

(UN study)

May 2011 toApril 2012

Feb 2012 toApril 2013

Applied forExclusive License

Fundraisingstarts

April 2013

June 2013 to April 2012

Exclusive License awarded22,000 sq. km

£1.0 million raisedSatellite indicates

potential giant province

Sept 2013

Oct 2013 to Dec 2014

Compiled 7 layers of pre-drilling evidence

Prospective resource >1.6 bnbarrels

Completed program commitments contracted to Namibian government – 33

months early


Prospectivity Overview of the Nama Basin

Roger Swart


Geology of eastern Namibia


NAMA

2219/2319

Geological Survey of

Namibia

Regional Setting


Geological Survey of

Namibia

Zaris

Witputs

Osis Ridge

Witvlei2219/2319


Kamtsas

BlaubekerTahiti

Gobabis

Constance

Simmenau

Bildah

La Fraque

Okambara

Weissberg

Zenana

Grunental

Za

ris

Da

bis

Bu

sch

ma

nsklip

pe

Co

urt

Na

ma

Witvle

i

100m

Witvlei Subbasin

From: Grotzinger,

2010From: Hegenberger, 1993


Kamtsas

Nama

22S22S

19E

20E

24S

24S19E

20E

20km

Karoo sub-crop

Stormberg

sub-crop

Nama Gp

Witvlei Gp

Kamtsas Fm

Nama/Witvlei/Kamtsas

sub-crop

Karoo Sub-crop

Kalkrand Sub-crop

Simplified geology

From Geological Survey

of Namibia maps


Kamtsas BlaubekerTahiti

GobabisConstance

Simmenau

Bildah

La Fraque

OkambaraWeissberg Zenana

Grunental

200m

10km

Line of section

After Hegenberger, 1993


KamtsasBlaubekerTahiti

Gobabis

Constance

Simmenau

Bildah

La Fraque

Okambara

Weissberg

Zenana

Grunental

Za

ris

Da

bis

Bu

sch

ma

nsklip

pe

Co

urt

Na

ma

Witvle

i

100m

Blaubeker:

Glacial unit c. 730Ma

(Sturtian), transgression

associated with deglaciation

produced potential source

rocks (Craig et al., 2013)

Stromatolitic units as source

rocks?

Potential reservoirs

throughout

~ 730Ma

~ 560Ma

Possible petroleum systems


The Karoo

Within block

Miller, 2008


Karoo petroleum systems

• Coals known in Namibia & Botswana

• Black shales? Whitehill not known in east

• Little maturity data available

• Currently not in oil window

• But…..


Nama Basin – depth to magnetic basement

From Corner, 2008, in Miller

Deep zone in similar location to “Carboniferous syncline” mapped by Kingsley, 1984


GRACE gravity data – free air


GRACE gravity data – free air & Karoo rifts


Nama Basin – depth to magnetic basement

From Corner, 2008, in Miller


GRACE gravity data – N-S gravity low?


Summary

• Known outcrop geology restricted

• Potential for deep (rifted?) sedimentary basins in south-eastern

portions


The Scotforth Satellite Report


Success rate of satellite analysis in hydrocarbon discovery

10%

Range of 62% to

80% success rate

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Off satellite anomalies Positive satellite anomalies

Perc

enta

ge o

f w

ells

resultin

g in c

om

merc

ial

dis

cove

ry


Atrush - Kurdistan

Where has the technology worked before?


Ekales - Kenya


The Giant

HQA with over 1 billion Boe

PRP

(gross unrisked)


The Giant vs the M25


Aminius


Prospective resources – Top 7


Geochemistry


Why use surface geochemistry

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Positive geochemical anomaly + 2nd cross referenced technology test

Single metric test - positive anomaly


Lognormal paraffin distributions

East Namibia Background

y = 0.1921e2.4784x

R² = 0.9674

0.0

0.1

1.0

10.0

100.0

1,000.0

0.0% 20.0% 40.0% 60.0% 80.0% 100.0%

n-P

araf

fins

C2-C

4

Cumulative probability by ascending order of n-Paraffin results

n-Paraffins C2-C4 concentration

Blocks 2219 and 2319

n-Paraffin C2-C4 (Background)

n-Paraffin C2-C4 (Significant)

Expon. (n-Paraffin C2-C4 (Background))

The breakout from the background trend, shows the cut-off between the background and the significant levels of n-paraffins in the soils.


Predicting the nature of hydrocarbons


The Halo Effect - Ochu Juan Field


Financial Overview


Finances raised and deployed

Founders

R&D -

04 - 11,

£704k,

27%

Founders

loans -

11 - 14,

£324k,

12%Equity - seed

capital round,

£105k, 4%

Equity -

second

capital

round,

£1,256k,

48%

Consultin

g sales,

£43k,

1%

3rd party

creditors,

£104k,

4%

Sharehol

der

loans,

£97k,

4%

Sources of funds

Research

and

development

written off,

£704k, 27%

License

commitm

ents,

£307k,

12%Exploration costs, local

office and program set

up costs, £1,173k, 44%

Corporate

finance,

legal and

professio

nal costs,

£164k,

6%

O&M,

£285k,

11%

Use of funds


Immediate plans

Raise estimated £8.5MFull tensor gravity gradiometryProspectivity synthesis

Jul 2015 to Mar 2016

Jan 2015 to Jun 2015

Raise £1.65MComplete geochemical analysisGround magnetotelluricsComplete and synthesis pre-drilling activitiesCompetent persons report

By 2017

Achieve share priceappreciation multi-foldCommercial development andmonetization options

Drill first three exploration wellsTarget early discovery/(ies)

April 2016 to March 2017


Target capital expenditure


Progression of resource classification

Current

prospectiveContingent

Proven

Undeveloped

Proven

producingUnrisked mean prospective

scenario0.011 2.83 4.04 8.85

0.011

2.83

4.04

8.85

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

Exp

ecte

d s

hare

price p

er barrel

Nam

ibia

n f

iscal te

rms a

nd local ext

raction c

osts

Value per barrelbased on progressive resource reclassification


Training


Working with the community

Collection,

$75, 37%

Lab analysis,

$75, 38%

Reporting,

$50, 25%

Traditional - $200 per sample

Collecti

on, 40,

53%

Lab

analysis

, 36, 47%

Reporting, 0,

0%

ANE - $62 per sample


Community Permaculture Project


The community’s biggest problem


What is permaculture?

A set of design principles that copies natural

systems and apply those principles to

produce food/energy in a sustainable way.


Why permacultuire

Natural systems are the most efficient and

simple way of creating fertility.

These systems are not reliant on modern

infrastructure and are therefore accessible to

isolated communities with a limited capital

resources

In the long term permaculture is the most

water-efficient form of agriculture known


Top 7 community benefits

Food security: Giving the community the skills to grow their own food -

reducing the need for food aid, improving their quality of life.

Water security: Designing the landscape to capture and store water. Using

Ferro-cement tanks to store rain water for use of drinking and crops.

Soil building: Using mulching techniques and planting of specific nitrogen

fixing trees and ground covers allows for nutrient recycling.

Carbon capturing: Propagation of trees and using no-tilling techniques.

Health benefits: Introducing the community to a varied nutritional diet.

Sanitation: Use and treatment of grey water in food producing systems as

well as composting of animal waste through worm farming to reduce

places where insects breed and spread disease.

Education: Permaculture gives people pattern literacy enabling them to read

the environment and land use patterns for long term sustainability.


Contour Swales capturing rain water


Low cost Ferro-cement water tanks


Mulch protecting soil & feeding microbial life


Earthworm processing animal and plant waste


Turning Deserts into Food Forests


ANE’s first project – near Aminius


Questions

technical advisory committee - ane.na · pdf file27 february 2015 africa new energies limited...

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