Canadian Foresight Group PTE. LTD.
April 2015
M15
1
Reader Advisories
The information in this presentation contains certain forward-looking statements. All statements other than statements of historical fact may be forwardlooking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", “plan", "continue",
"estimate", "demonstrate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "would" and
similar expressions and include statements relating to, among other things, the anticipated ongoing strategy of Canadian Foresight Group Pte. Ltd. (CFG)
and CFG Energy Pte. Ltd. and development, drilling and acquisition opportunities and plans for CFG and the anticipated performance of CFG’s properties.
Such forward-looking statements or information is provided for the purpose of providing information about the current expectations and plans relating to
CFG and its current and future oil and gas assets (the “CFG Assets"). Readers are cautioned that such information may not be appropriate for other
purposes, including making investment decisions. In particular, this document contains forward looking statements pertaining to: CFG’s corporate areas of
focus; CFG’s capital raising plans; CFG’s operational and development plans and the timing thereof; the quality and characteristics of the CFG’ Assets;
expected performance in 2014 and beyond; the anticipated performance of the properties to be explored and developed and the timing of certain matters
related thereto; CFG’s capital budget requirements; the proposed fundraising, the price per share, the use of proceeds for such offering, the levels of
participation of insiders in such offering and the timing of certain matters related thereto; the expected operational plans, including preparation,
exploration, drilling and optimization activities, and the anticipated results therefrom; expected capital cost reductions; and matters ancillary or related to
the foregoing list. In addition, please note that information relating to estimated reserves and resources are deemed to be forward-looking information, as
it involves the implied assessment, based on certain estimates and assumptions that the reserves described can be economically produced in the future. The
forward looking statements in this presentation are based on certain assumptions, including, without limitation: the quantity of reserves and resources
associated with the CFG Assets; the oil and natural gas production levels of the CFG Assets; the quality and characteristics of the CFG Assets; the source of
funding for CFG’s activities including development costs; development and drilling plans for those CFG Assets and the timing of results thereof; projections
of commodity prices and costs; supply and demand for oil; potential reserves and future production with respect to the CFG Assets, business strategy and
objectives; exploration and drilling plans; the costs associated with and the timing in relation to drilling wells; the costs of leases; capital expenditures;
operating and other costs; the timing of implementing certain operating techniques; royalty rates and taxes; expectations regarding the ability to raise
capital and continually add to reserves through acquisition and development; the sources of and the uses of cash generated from the business of CFG ; and
the treatment under governmental regulatory regimes, including with its quasi-governmental partner, MOGE. Readers are cautioned such assumptions,
although considered reasonable at the time of preparation of the information in this presentation, may prove to be imprecise and, as such, undue reliance
should not be placed on forward-looking statements.
Reader Advisories (Continued)
CFG’s actual results, performance or achievement could differ materially from those expressed in or implied by, these forward-looking statements and,
accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so,
what benefits CFG will derive therefrom. These statements involve substantial known and unknown risks and uncertainties, certain of which are beyond
CFG’s control, including: the impact of general economic conditions; industry conditions; changes in laws and regulations including the adoption of new
environmental laws and regulations and changes in how they are interpreted and enforced; fluctuations in commodity prices and foreign exchange and
interest rates; stock market volatility and market valuations; liabilities inherent in oil and natural gas operations; uncertainties associated with estimating oil
and natural gas reserves; competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel; incorrect
assessments of the value of acquisitions; changes in income tax laws or changes in tax laws and incentive programs relating to the oil and gas industry;
geological, technical, drilling and processing problems and other difficulties in producing petroleum reserves; ability to secure drilling and service
equipment; and obtaining required approvals of regulatory authorities. CFG’s actual decisions, activities, results, performance or achievement could differ
materially from those expressed in, or implied by, such forward-looking statements and, accordingly, no assurances can be given that any of the events
anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits that CFG will derive from them. Readers should be
cautioned that the foregoing list is not exhaustive of all possible risks and uncertainties. These risk factors should not be construed as exhaustive. Any
financial outlook or future oriented financial information in this presentation, as defined by applicable securities legislation, has been approved by
management of CFG. Such financial outlook or future oriented financial information is provided for the purpose of providing information about
management's reasonable expectations as to the anticipated results of its proposed business activities. Management of CFG believe that the expectations
reflected in the forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such
forward-looking statements included herein should not be unduly relied upon. These statements speak as of the date hereof. Except as required by law,
CFG undertakes no obligation to publicly update or revise any forward-looking statements.
The information contained in this presentation does not purport to be all inclusive or to contain all information that prospective investors may require.
Prospective investors are encouraged to conduct their own analysis and reviews of CFG and the information contained in this presentation. Information in
relation to the previous experience of CFG’s management is not indicative of the future performance characteristics of CFG. Without limitation, prospective
investors should consider the advice of their financial, legal, accounting, tax and other advisors and such other factors they consider in investigating and
analyzing CFG.
Highlights
• Canadian Foresight Group PTE. LTD. (“CFG”) was established to pursue
international E&P opportunities in SE Asia and successfully participated in
Myanmar’s inaugural offshore bidding round.
• CFG’s directors and management team have extensive expertise in both
onshore and offshore oil/gas exploration and development, particularly in Asia.
• CFG holds an 80% interest in Myanmar’s offshore Block M15 and is the
Operator.
• Myanmar’s offshore oil sector is dominated by the Super-majors and Majors.
• CFG is the only pure Myanmar offshore investment opportunity
Board of Directors
•
Songning Shen- Chairman of the Board. Mr. Shen is a professional geologist registered in Alberta, Canada. Mr.
Shen is currently the CEO and director of CaiTerra International Energy Corporation which is listed in the Toronto
Stock Exchange – Venture Exchange. He was a Co-founder, Co-Chairman and Director of Sunshine Oilsands Ltd., a
company listed on the Hong Kong Stock Exchange and the Toronto Stock Exchange. Sunshine holds over 1.0
million acres of oilsands leases and has a resource base of 4.2 billion barrels. Mr. Shen is one of the pioneers who
discovered the biggest offshore oilfield SZ36-1 in China. He obtained a M.Sc. from the Norwegian University of
Science and Technology.
•
Kevin Flaherty- Executive Director. Mr. Flaherty holds a MBA, Finance and resides in Vietnam, where he is a
Managing Director of Energy & Natural Resource Investments at Saigon Asset Management. He co-founded two
natural resources firms in Vietnam: Tiberon Minerals and Keeper Resources; both of which were subsequently
acquired by Asian-based investment firms.
•
Greg Turnbull- Director. Mr. Mr. Turnbull is a lawyer, currently a senior partner at the Calgary office of McCarthy
Tétrault LLP. He currently serves as a director of a large number of publicly listed oil and gas E&P companies,
including Crescent Point Energy Corp., Storm Exploration Inc., Heritage Oil Corporation, and Marquee Energy Ltd.
•
Raymond Fong - Director. Mr. Fong is a Canadian Professional Engineer. Mr. Fong was a director of China Coal
Corporation from 2007 to 2012. He held previous directorships with Abenteuer Resources Ltd., Stealth Ventures
Ltd., Zapata Capital Inc., director and president of Ultra Capital Inc. and a former director of United Rayore Gas Ltd.
Mr. Fong is currently serving as a Director for Sunshine Oilsands Ltd. and Palinda International Group.
•
Wei (David) Wu - Director. Mr. Wu has over 30 years of experience as owner and operator of businesses in China.
He is a Director of West Pacific Petroleum and Yunnan Tianli Trading Ltd. He has also been a Manager of Husky
Energy Challenge Holdings since September 2005. Currently, Mr. Wu serves as the Chairman of the Board of
Directors of CaiTerra International Energy Corporation.
Management
•
Songning Shen - Managing Director of CFG. Mr. Shen is a professional geologist registered in Alberta, Canada. Mr.
Shen is currently the CEO and director of CaiTerra International Energy Corporation which is listed in the Toronto
Stock Exchange – Venture Exchange. He was a Co-founder, Co-Chairman and Director of Sunshine Oilsands Ltd., a
company listed on the Hong Kong Stock Exchange and the Toronto Stock Exchange. Sunshine holds over 1.0 million
acres of oilsands leases and has a resource base of 4.2 billion barrels. Mr. Shen is one of the pioneers who discovered
the biggest offshore oilfield SZ36-1 in China. He obtained a M.Sc. from the Norwegian University of Science and
Technology.
•
Perla Woo – Vice-President of Corporate Operations. Ms. Woo is Canadian Professional Engineer, with a Master’s
degree in Petroleum Engineering from the University of Calgary. She was a Co-Founder of Sunshine Oilsands Ltd.,
and was Senior Vice President until September 2008. Ms. Woo has over 20 years experience working in the oil and
gas industry in Canada in the fields of reservoir engineering, exploitation, and pressure transient analysis.
•
Shan Li – Vice-President of Finance. Ms. Li has been the Investment Manager of the Strategic Investment Division of
the Bank of China Investment Group since 2010 and previously served as the Vice-President of BOCI Asia Limited. In
both companies, she identified, developed, and maintained client relationships. She has been involved in numerous
IPOs and major M&As transactions.
•
Robert Maxwell - Country Manager and Exploration Advisor. Mr. Maxwell is a Canadian Professional Geologist with an
M.Sc in Structural Geology from the University of British Columbia. Currently residing in Myanmar, Mr. Maxwell has
extensive in-country international management experience including in-country assignments in Malaysia, Egypt and
Qatar. From 2002 - 2006 Mr. Maxwell was co-founder and CEO of CEP International Petroleum Ltd. , an oil and gas
exploration company, publically traded on the TSXV with oil and gas exploration projects in Russia.
Management (Continued)
•
Kyaw Moe – Myanmar Special Representative. Mr. Kyaw Moe is Founder and CEO of Asia Network Service Inc., a
company providing business consulting service and trading with South East Asia Countries including China. Mr. Kyaw
Moe has about 15 years of media and communication working experience in both corporate and public sector.
•
Richard W. Pawluk - Corporate Secretary. Mr. Pawluk has been a partner of the law firm of McCarthy Tétrault LLP
since 2003. He has worked for the law firms Donahue LLP and Code Hunter LLP. He has acted for a number of private
and publicly traded oil and gas exploration and production companies with assets in Canada, the United States of
America, Egypt, Pakistan, Albania, Portugal, Columbia and Turkey, advising on all types of domestic and international
financing and acquisition. Mr. Pawluk currently serves as director of CaiTerra International Energy Corporation.
CFG’s Myanmar Activities
• CFG participated in Myanmar’s Nov. 2013 offshore bidding round along
with Transcontinental Resource Group (TRG) and Myanmar’s KMA Group.
• CFG and TRG were awarded Shallow Offshore Block M-15 on March 2014.
Under the terms of joint bid, CFG will undertake a seismic program and
drill two wells.
• On March 30, 2015 the Production Sharing Contract was executed.
• Currently conducting initial environmental impact assessment.
Company Assets in Myanmar
•
Owns the operation right of block M-15 covers 13,480 sq. km.
•
Block M-15 is located in the Andaman Sea, within the Tanintharyi Offshore basin, which is off
Myanmar’s southern Tanintharyi coast.
•
One of the biggest offshore gas fields in Myanmar, Yetagun gas field, is located 60 km to the
north of M-15. The Yetagun field contains an estimated 4.2 TCF of recoverable gas. Daily
production is about 400 MMSCFD with 12,000 bbl/day condensate.
•
According to regional magnetic information, M-15 is located at the Transgression/regression
channel area from Eocene to Miocene age in the fault offset region adjacent to a deep Oligocene
sedimentary basin. Both Clastic and Carbonate reservoirs are prospective targets within this
block.
•
Approximately 1,753 km of 2D-seismic has been acquired.
Previous geophysical and
geological work had identified several prospects with potential from 4 TCF to 10 TCF gas and
indicate significant structural and stratigraphic traps. Additional 3D seismic work is required to
identify the most promising closures.
•
Significant Prospects with an estimated P50 Resources of 24 TCF.
Myanmar 2013 Offshore Bid Round
Offshore Bid Round Results
Blocks
Selected Candidates
Shallow Water Blocks
A-4
Woodside & BG Group
A-5
Chevron
A-7
Woodside & BG Group
M-4
Oil India & Mercator Petroleum & Oilmax Energy
M-7
Fosun & Tap Oil
M-8
Berlanga Holding
M-15
CFG
M-17
Reliance Industries
M-18
Reliance Industries
YEB
Oil India & Mercator Petroleum & Oilmax Energy
Deep Water Blocks
AD-2
Woodside & BG Group
AD-3
Ophir Energy
AD-5
Woodside & BG Group
AD-9
Shell
AD-10 Statoil & ConocoPhillips
AD-11 Shell
MD-2
ENI
MD-4
ENI
MD-5
Shell
YWB
Total
DOMINATED BY
SUPER-MAJORS
&
MAJORS
• Bids Closed : November 2013
• Results Announced: March 2014
• CFG Contract Signed: March 2015
The Prospects:
Numerous Multi-TCF Prospects on Block M15
Prospect
Number
Name
P10
P50
P90
BCF
BCF
BCF
17323
10055
5736
1
Deep Water Turbidite Basin Fan
3
Oligocene Horst Block
1171
645
376
4
Miocene Sandstone Pinchout –
AVO supported
8300
3400
1100
5
Yetagun - Like Basement High
110
75
35
6
Carbonate Buildup
20406
9769
4490
The Leads:
Lead
Number
Name and Description
2
Deepwater Turbidite lacks seismic
control
3a
Oligocene Horst Block – gravity defined,
may be large in size
7
Potential Oligocene oil-prone basins
defined by satellite gravity
CFG Work Programme
• Production Sharing Contract (PSC) executed on March 30, 2015
• Prepare Environmental and Social Impact Studies – 1st Q 2015 to
2nd Q 2015
• Reprocess previously acquired seismic – 2nd Q 2015 to 3rd Q 2015
• 3D Seismic program – 4th Q 2015 to 1st Q 2016
• Process new 3D Seismic data, refine previously identified drill targets and
plan drill program – 2nd Q 2016 to 3rd Q 2016
• Drill first well – 4th Q 2016
Company Structure
• Singapore incorporated private company
• Shares issued and outstanding : 147,993,555.
• Capital raising: Planning to raise US$30-50 million by 2Q 2015
GAS RESERVES
SHWE – 4.5 TCF
YADANA – 6.5 TCF
ZAWTIKA – 1.8 TCF
YETAGUN – 4.2 TCF
Major Offshore Gas Projects (1)
SHWE GAS PROJECT
•
Gas reserves of 4.5 TCF with production of
500 MMSCFD.*
•
Located in blocks A1 and A3, in the Rakhine
offshore. It has 11 wells on the platform and
4 wells in the subsea wellhead.
•
Operated by Daewoo and partnered with
ONG, GAIL, KOGAS, and MOGE
•
Export of gas to China started in 2013
*
PSC in Myanmar Upstream Oil & Gas Industry.
Presented by Mr. Htin Aung of Energy Planning
Department on March 28, 2012
Major Offshore Gas Projects (2)
YADANA GAS PROJECT
•
Proved gas reserves of 6.5 TCF.* Started
operating in 1998. Average gas
production is 653 MMSCFD for 2014
Q1.** 17 wells in total are connected to 3
platforms.
•
Located in blocks M5 and M6 with an area
of 26,140 sq. km.
•
Operated by Total and partnered with
PTTEP, Myanmar Unocal, and MOGE
•
Gas exported from gas field to Thailand
•
There are a number of discovered gas
fields being developed in these blocks
that are prospective.
*
**
Myanma Oil and Gas Enterprise, a Ministry of Oil
and Gas Enterprise slide, July 2011
www.pttep.com/en
Major Offshore Gas Projects (3)
ZAWTIKA GAS PROJECT
•
Gas reserves of 1.8 TCF with targeted
production of 300 - 400 MMSCFD.* First
gas production was in February 2014. 35
wells in total are connected to 3 platforms.
•
Located in block M9 and small NE part of
M11 with an area of 11,746 sq. km.
Zawtika, Gawthaka, and Kakonna gas fields
were discovered in 2007.
•
Operated by PTTEP (80%) and partnered
with MOGE (20%).
*
PSC in Myanmar Upstream Oil and Gas Industry.
Presentation by Mr. Htin Aung of Energy Planning
Department on March 28, 2012
Major Offshore Gas Projects (4)
YETAGUN GAS PROJECT
•
Proved gas reserves of 4.16 TCF* with 2014
Q1 production of 313 MMSCFD and liquids
condensate of 7251 bbl./d.** One platform
with 10 wells.
•
Located in blocks M12, M13, and M14 within
an area of 24,130 sq. km.
•
Operated by Petronas and partnered with
PTTEP, Nippon, Mitshubishi, MOGE (10 wells).
•
Production started in April 2000.
*
Myanma Oil and Gas Enterprise, a Ministry of Oil
and Gas Enterprise slide, July 2011
**
www.pttep.com/en
Major Pipelines - Myanmar to China
•
The gas pipeline from Myanmar to
China carries the gas extracted from
Shwe gas project located offshore of the
Bay of Bengal.
•
The crude oil pipeline is designed to
carry approximately 22 million tonnes of
oil per year.
•
The design capacity of the natural gas
pipeline is 13 Bm³. It is expected to
deliver 12 Bm³ of gas to China every
year, while reserving1Bm³ of gas for
Myanmar's domestic use.*
*
Myanmar-China Pipelines, China
www.hydrocarbons- technology.com
Major Pipelines - Myanmar to Thailand
•
Gas extracted from the Yetagun
project started flowing to
Thailand in 2000 at about 200
mmcfd. In August 2004, this
figure doubled after four new
wells went online. With the new
wells, overall production climbed
to 500 MMSCFD, with 400
MMSCFD exported to Thailand.
•
The offshore Yadana gas project,
where Total is the operator of the
project, exports 600 MMSCFD to
Thailand. About 200 MMSCFD are
used to meet Myanmar’s domestic
needs.
Contact Information
SONGNING SHEN
CANADIAN FORESIGHT GROUP PTE. LTD.
Chairman of the Board and Managing Director
Canadian Foresight Group Pte. Ltd.
Mobile: 1-403-875-2129
Office: 1-587-353-3711 ext. 1120
Email: s.shen@canadianforesight.com
Calgary Office:
Suite 800, 717 7th Avenue SW, Calgary, AB T2P 0Z3, Canada
Office: 1-587-353-3711
Fax: 1-403-452-0907
PERLA WOO
Yangon Office:
Unit 8, 3rd Floor, Cooperative Business Center, Corner of
Sayarsan Road & New University Road, Bahan Township,
Yangon, Myanmar
Vice President
Canadian Foresight Group Pte. Ltd.
Mobile: 1-403-827-6328
Office: 1-587-353-3711 ext. 1121
Email: p.woo@canadianforesight.com
KEVIN FLAHERTY
Executive Director
Canadian Foresight Group Pte. Ltd.
Mobile: +84 978 706 255
Email: k.flaherty@canadianforesight.com
www.canadianforesight.com