the pre salt play of paraguay

Latam Oil & Gas Summit – September 2013

The Pre Salt Play of Paraguay

August 2013 Yacoraite Formation

This communication is directed only at (i) persons having professional experience in matters relating to investments who fall within the definition of “investment professionals” in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001; or (ii) high net worth bodies corporate, unincorporated associations and partnerships and trustees of high value trusts as described in Article 49(2) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001. Persons within the United Kingdom and Ireland, who receive this communication (other than those falling within (i) and (ii) above) should not rely on or act upon the contents of this communication.

This presentation has been furnished to you solely for information and may not be reproduced, redistributed or passed on to any other person, nor may it be published in a whole or in part, for any other purpose. This presentation does not constitute or form part of, and should not be constructed as, an offer for sale of, or subscription to, or solicitation of any offer to buy or subscribe for, any securities of President Energy plc (“President”) in any jurisdiction nor should it or any part of it form the basis of, or be relied on in connection with, any contact or commitment whatsoever. This presentation does not constitute a recommendation regarding the securities of President. Without limitation to the foregoing, these materials are not an offer of securities for sale in the United States. Securities may not be offered or sold into the United States absent registration under the US Securities Act of 1933 or an exemption therefrom. President has not verified any of the information set out in this presentation. Without prejudice to the foregoing, neither President nor its associates nor any officer, director, employee or representative of any of them accepts any liability whatsoever for any loss however arising, directly or indirectly, from any reliance on this presentation or its contents. This presentation is not being issued, and is not for distribution in, the United States (with certain limited exceptions in accordance with the US Securities Act of 1933) or in any jurisdiction where such distribution is unlawful and is not for distribution to publications with a general circulation in the United States. By attending or reading person, this presentation you agree to be bound by the foregoing limitations. Images Disclaimer Some images within may have been captured from SCHLUMBERGER DATA AND CONSULTING SERVICES, PHASE 1 FINAL REPORT DATED MARCH 10, 2009 PREPARED FOR PETRO-VICTORY. For actual context of image use please reference this report(1). Any interpretation, research, analysis, data, results, estimates, or recommendation furnished with the services or otherwise communicated by Schlumberger to customer at any time in connection with the services are opinions based on inferences from measurements, empirical relationships and/or assumptions, which inferences, empirical relationships and/or assumptions are not infallible, and with respect to which professionals in the industry may differ. Accordingly, Schlumberger cannot and does not warrant the accuracy, correctness or completeness of any such interpretation, research, analysis, data, results, estimates or recommendation. Customer acknowledges that it is accepting the services “as is", that Schlumberger makes no representation or warranty, express or implied, of any kind or description in respect thereto. Specifically, customer acknowledges that Schlumberger does not warrant that any interpretation, research, analysis, data, results, estimates, or recommendation is fit for a particular purpose, including but not limited to compliance with any Government request or regulatory requirement. Customer further acknowledges that such services are delivered with the explicit understanding and agreement that any action taken based on the services received shall be at its own risk and responsibility and no claim shall be made against Schlumberger as a consequence thereof.

Disclaimer

2 © 2013 President Energy PLC

The Pre Salt Play of Paraguay September 2013

Notes: (1) Investors are not entitled to receive or request a copy of the report from Schlumberger or the Company

Brazil

Argentina

Uruguay Chile

Peru Bolivia Paraguay

Paraguay – open for business



Constitutional Republic, population 6.5 million President Cartes inaugurated August 2013

Strong, business friendly, Colorado Party government

Pro USA/European political climate with UK and USA Embassies in Asuncion

Strong 2013 economic growth

IMF forecast a robust growth of 10.5% in 2013

Paraguay issued inaugural $500 million in 10-year international bonds

Moody’s upgraded government bond rating to Ba3 from B1, citing stable currency

Very attractive Hydrocarbon Law

Tax – Royalty Law 779, enacted December 1995

Sliding scale Royalty, 10% <5,000 bopd, 14% >50,000 bopd

Flat 10% tax on all business profits

International oil pricing at well head (Brent index)

Petropar off-take rights at well head up to 27,000 bopd

Dormant domestic downstream sector will be fed by new domestic production

E & P Sector Opening Up

Only 2 wells drilled in Paraguay during the past 25 years

New emphasis on unconventional resources + conventional oil in Chaco

8 Concessions now granted (including Pirity / Demattei oil plays)

5 further Concessions currently under negotiation

10 Prospecting Permits and Contracts being processed



Paraguay concession map

Source: SSME Geoprocessing Department VMME-San Lorenzo Last updated: 30 April 2013

Proven petroleum system – inaccessible in Paraguay for past 25 years



60w 63w

24s

N

Caimancito 59 mmb

Puesto Guardian Area 18 Fields

Total 30 mmb

Palmar Largo 50+ mmb

Olmeda Sub Basin 155 NFWs

152 mmboe cum. prod.

Pirity Sub Basin 8 NFWs (pre-1987)

DEMATTEI

PIRITY

Los Naranjos Jurumi

Carmen East

North Flank play Giant Palaeozoic

gas fields

Kilometres

0 100 200

Cretaceous Rift Basin

Proven Oil Field

Untested Prospect

Rift Basin crossing country border

150+ mmbboe produced in Argentine sector

No seismic or drilling in Paraguay sector since 1987

Untested prospects in Paraguay sector on trend with Palmar Largo Field

Structures get larger and reservoirs improve to the east

Pirity Pre Salt petroleum system



REGIONAL TOP SEAL

and source rock

SOURCE ROCK,

reservoirs and

top seal

RESERVOIR

Olmedo shales + anhydrites

Halite evaporite

Olmedo shales + anhydrites

Yacoraite, interbedded lime mudstones, lime grainstones, thin sandstones and dolomitic mud stones

Lower Puesto Guardian Member Source Rock & Top Seal in Palmar Largo

Lecho Sandstone*

Basal transgressive marine/aeolian reservoir

* Lecho Sandstone replaced by porous volcanics in Palmar Largo

Proven source rock – identified by well logs and seismic



6,000 km2 area / 78m average gross thickness – Yacoraite Formation, Lower Puesto Guardian Member

TOC up to 12%, Type II / III amorphous / algal kerogen – Lacustrine to restricted marine black shales

Image Source: Please refer to slide 2

Distribution of the Yacoraite source unit in the Pirity Sub-basin

N

Migration

Demattei

Pirity

0 25 Kilometers

High value prospect inventory – multiple play types



9 prospects in Pirity

7 prospects in Demattei

Numerous additional leads

Seismic program to further de-risk

DEMATTEI BLOCK

Carmen East Play

PIRITY BLOCK

Jurumi Play

Los Naranjos Play

Palmer Largo Analog

Balbuena Este Analog

Selva Maria Analog

Northwest Flank Play North Flank Play

N

0 Km 100

Image Source: Please refer to slide 2 (1) Resource estimate by Crescent Global Oil LLC / Petro Victory LLC

Prospect Structure Seal Reservoir

Source Score Recoverable Resources(1)

(mmb)

Jurumi 1 5 4 5 4 64% 144

Jurumi 2 5 3 5 4 48% 207

Los Naranjos 5 5 2 5 40% 135

Carmen East 1 2 5 5 5 40% 13

Carmen East 2 2 5 5 5 40% TBD

Jurumi 3 3 4 5 4 38% TBD

North Flank D1 4 2 5 4 26% TBD

NW Flank 4 2 3 5 19% TBD

Jurumi 4 2 3 5 4 19% TBD



Demattei Basin 2 3 3 2.5 4 14% 41

Demattei Basin 1 2 4 2.5 4 13% 28

Confianza 3 2 2.5 5 12% TBD

Demattei Basin 3 1 4 2.5 4 6% 21

Demattei Bain 4 1 4 2.5 4 6% TBD

Total 589

Rank prospect inventory

Low risk Moderate risk High risk

2008 2D interpretation of old data



May 10 2013, Day 1, First 3D survey in Paraguay



Hacienda San Marcos Base Camp – April 2013

Jurumi 3D Area – five large structural closures



16 Tapir 33 km2

17 Jurumi 35 km2

17A NW Jurumi

14 km2

17B NE Jurumi

4.5 km2

18 Pecari 14 km2

Tapir Jurumi

NE Jurumi NW

Jurumi

Pecari

100 km2 total

closed Lecho area

Pirity Basin – 20 Structural Prospects and Leads



2013 interpretation of new 3D + 2D data

1

2

3

4 5 6

7

8 9

10 11 12

13

14 15

16

17

18 19

20

DEMATTEI

PIRITY

Palmar Largo 2013 Seismic 3D 793 km² 2D 800+ km

NW FLANK

3D Los Naranjos

3D Jurumi

Argentina Paraguay

Palmar Largo – Los Naranjos – Jurumi Trend



Palmar Largo

Los Naranjos 3D

Yacare Prospect

Jurumi 3D

Tapir Prospect

Double Play System – Cretaceous + Paleozoic potential - 1979 CPC Gloria #1



Untested Paleozoic and

Cretaceous High

Pirgua

Top Yacoraite

New 2D data shows well missed structure at both Cretaceous AND Paleozoic levels

Well encountered minor shows in Late Cretaceous Yacoraite and Lecho overlying red beds in the Early Cretacoeus syn-rift (Pirgua)

Cretaceous closure and very large subcropping Paleozoic fault block untested and offset just 1 km to north

Palo Santo #1 well, located 20km south, penetrated Paleozoic source rock

N S

Two hydrocarbon charge systems



SO

UR

CE

RO

CK

RE

SE

RV

OIR

SE

AL

SO

UR

CE

RO

CK

RE

SE

RV

OIR

SE

AL

Paleozoic Devonian + Silurian

Source Rocks

Cretaceous Olmedo

+ Yacoraite Source Rocks

Cretaceous Paleozoic

Paraguay Chaco Devonian Resources* – 67 tcf gas + 3.2 bbbls oil



The Devonian Los Monos black shale is the main source rock for world-class conventional gas fields in the Tarija Basin foothills of SE Bolivia

In the Paraguay portion of the Chaco Basin, risked, technically recoverable shale gas and shale oil resources from the Devonian are estimated at 67 Tcf of shale gas and 3.2 billion barrels of shale oil and condensate

* EIA/ARI World Shale Gas and Shale Oil Resource Assessment 2013

Schematic Regional Cross Section Across Fold Belt & Foreland Play Areas of Bolivia & Paraguay

Don Quixote



Company making potential

Concession economics

Very attractive economic and fiscal regime

– Sliding scale royalty of 10% to 14%

– Corporate tax rate of 10%

Transport & Marketing

Petropar expressed written interest in off-take right up to 27,000 bopd

– Hydrocarbons to be purchased at well head at international pricing (Brent index)

Export options to Argentina (approx. 250km)

Success case - management estimate

>150 mmb gross risked recoverable resource potential(1)

> $25 / bbl (NPV 10)

Analogue field size 50 mmbo based on Palmar Largo

50 mmbo field discovery

15 wells with IP 2,000 bopd

Brent: $100 / bbl

Capex: $9 / bbl

Opex: $15 / bbl

ORRI: 5%

President estimates > $25 / bbl (NPV 10)

Notes: (1) Estimate by President management, based on technical reports and field analogs and economic data and assumptions



SEISMIC DEFINITION

OF DRILLING LOCATIONS

DRILL KEY WELLS AND

PRODUCE ANY

DISCOVERY

CONTINUE DEVELOPMENT

OF ANY DISCOVERY



John Hamilton

Ben Wilkinson

Richard Hubbard

Contact address

11 Hill Street

London W1J 5LF

United Kingdom

Tel: +44 (0) 20 7811 0140

Contact us

the pre salt play of paraguay

Documents