Title: Oilbarrel Conference
1- Oilbarrel Conference
- 1 April 2009
2The Turnaround
- Strong exploration base 1 Billion BOE resources
in FSU - New focus on Africa (acquisitions and options)
- Cameroon Logbaba project will be the significant
driver of the turnaround - Capacity to turn VOG into a profitable company
with first commercial deliveries expected by 1H
2010 - Net 2P of 65Bcf attributed to only a tiny portion
of the licence, with significant upside - All wells drilled penetrated multiple gas
reservoirs with high flow rates, some over
60Mmcf/d - Focus on production (revenue) in Africa
complements FSU long-term exploration/appraisal
potential
2
3Corporate Snapshot
Share Structure
Background
Noor Petroleum (18)
- Listed on AIM in July 2004
- Completed the acquisition of Logbaba gas field in
Cameroon in December 2008 - Two assets located in the FSU with combined
reserves of 40 Mmboe and resources of over
1.1Bnboe - Experienced Board and management with technical
assistance from Blackwatch Petroleum Services
Free Float (46)
Management (14)
Hydrocarbons Tech. (10)
Compass Asset Mgmt (6)
RSM (6)
Corporate Profile
Share price 0.04 Shares in issue 447.6
million Market Cap 17.9 million Advisers Nomad S
trand Partners Brokers Fox-Davies Capital
3
As at close 27 March 2009
4A Global Footprint
VOG is building a presence in highly prospective
hydrocarbon regions
4
5Operational Structure
Board of Directors
Executive Management Team London / Houston
Blackwatch Petroleum Services
Russian Operations
Kazakh Operations
African Operations
Development of Logbaba field to be run from
existing office in Douala
Technical office in Almaty, the commercial
centre of Kazakhstan
Main office to be moved to Orenburg to
facilitate pursuit of opportunities in the region
6Logbaba, Cameroon
- Bramlins key asset is a farm-in for 60 of the
Logbaba natural gas and condensate project in
Cameroon - Logbaba is located in the northern Douala Basin
within the eastern suburbs of Douala, the
economic capital of Cameroon - Four wells were drilled in the 1950s, all
encountering gas three were tested at between
12Mmcf/d and 62Mmcf/d
Logbaba Licence area
7Logbaba Reserves and Valuation
- RPS Energy undertook an evaluation of limited
section of the Logbaba field in July 2008 - Using the data provided, they determined 14Mmboe
of 2P reserves with an NPV10 valuation of 169Mm
RPS review area (6km2) 10 of block
8Logbaba Development Plan
- PHASE 1 Gas production to serve existing
contracts - Drill and test a twin to Well 104 down to 10,000
ft - Production expected to be min. 12Mmcf/d against
current local industrial demand of 8Mmcf/d - Install surface facilities
- 12Mmcf/d capacity gas processing facility
- 15 km, 10 pipeline to the industrial users
- Sell gas to industrial market in Douala
- Letters of intent already signed with potential
customers for a total of 8Mmcf/d at an indicative
price of 16/mcf - A study by Tradex in partnership with SNH
indicates initial demand increasing to over
25MMcf/d within 5 years - PHASE 2 Gas to additional clients and swing
production - Drill second well to increase production to meet
expected industrial demand of gt25Mmcf/d - Provide swing production for users and new
consumers
8
9Cameroon Gas Market
10-Yr Gas Demand Forecast
- Most fuels currently imported
- VOG has signed gas off-take agreements and
letters of intent for 8Mmcf/d - The indicative price is set at 16/MmBTU
(15/mcf) - A study by Tradex estimates demand to increase to
25Mmcf/d within 5 years - A gas-fired power station could initially
increase demand by up to 25Mmcf/d
Source Tradex, Company estimates
10Exploration Potential
- The Logbaba project is complemented by VOGs
portfolio of exploration options in Africa and
assets in the FSU offering significant upside
potential - West Medvezhye in Siberia has independently
assessed prospective resources of over 1.1Bnboe
of gas, condensate and light oil for the 1,220km2
licence area - First discovery well was completed in late 2007
- Field located in the largest gas producing region
on Earth - In September 2008, VOG acquired an option to
acquire Falcon Petroleum, an EP company with
PSAs over 45,000km2 in Ethiopia and Mali - Virgin exploration territory, but with good
geological leads and oil seeps
10
11West Medvezhye, Russia
- West Med lies adjacent to the super-giant
Medvezhye field and about 120km from Urengoy,
currently the worlds largest gas and gas
condensate field - VOG has successfully completed a passive seismic
survey over an area surrounding discovery Well
103 - The results of the survey will be correlated to
the existing subsurface interpretation to confirm
the location of the next well to be drilled in
2010/11
West Med
11
Source Merrill Lynch
12Kemerkol, Kazakhstan
- The Kemerkol project has State-classified oil
reserves and resources of - C1 8.7 Mmbbl
- C2 26.3 Mmbbl
- C3 25.1 Mmbbl
- Production from the field is temporarily
suspended following illegitimate ownership
dispute - In March 2009 Kazakh General Prosecutor has sent
a letter of protest to the highest court in
Atyrau supporting VOG - Judgement won against the former owner in High
Court - VOG preparing 30M damages claim
12
13Falcon Petroleum, Mali and Ethiopia
- VOG has signed a 12 month option to acquire the
assets of Falcon Petroleum - Falcon has a 50 interest in the PSA for Block 17
in Mali and 90 of PSA over Blocks Ab1, Ab4 and
Ab7 in the Blue Nile Basin in Ethiopia - Total acreage covers over 45,000km2
Logbaba
13
14In Summary
- Logbaba represents proven reserves and fast-track
cash flow generation from a captive market with
significant expansion potential - Positioning in Cameroon power generation market
can transform VOG into the premier energy
supplier in the region - Exposure to huge hydrocarbon potential of the FSU
still of primary importance - Technical management greatly enhanced through new
appointments and assumption of existing Bramlin
team - Continuing financial and strategic support of
Noor Petroleum adds significant advantage during
economic instability
15APPENDICES
16Directors and Management
- Kevin Foo, Chairman
- 36 year career in the resources sector including
16 years in the FSU former MD of Celtic
Resources Holdings - Grant Manheim, Deputy Chairman
- 37 years at N M Rothschild and Sons Limited, with
25 years as a board director - Robert Palmer, Finance Director
- Chartered accountant with extensive experience in
corporate finance - George Donne, Executive Director
- Former investment banker and General Manager of
VOG - Rashed Al Suwaidi, Non-Exec Director
- Petroleum engineer and former EP Director of
ADNOC. Director of some of the largest investment
companies in UAE - Philip Rand, Non-Exec Director
- 30 years financial experience and currently the
CEO of Equator Exploration - Mukhtar Tuyakbayev, Non-Exec Director
- Previously an executive director of Celtic
- Radwan Hadi
- COO of VOG Senior petroleum engineer with
Blackwatch with over 25 yrs experience in oil and
gas including in Nigeria, Ghana and Equatorial
Guinea - Sam Metcalfe
- Managing Director and Principal Reservoir
Engineer with Blackwatch, over 25 years oil
industry experience, worldwide - Jim Ford
- 30 years experience in the energy sector and
previously president of Daytona Energy - Ernie Miller
- 16 years of energy experience in both public and
private companies, including BPZ Energy, Calpine
Corporation and Pan Canadian - Eckhard Mueller
- 27 years experience in exploration and
production, including 4 years as chief geologist
for KazGerMunay
16
17Cameroon
- Cameroon's GDP of 21bn in 2007 one of the top
ten in sub-Saharan Africa - Majority of electricity from hydroelectric power
stations, susceptible to droughts - Electricity generating capacity of around 900MW
95 hydroelectric - Government wants to add a further 450MW capacity
- Other operators in region
- Addax Petroleum
- Amerada Hess
- Bowleven
- Perenco
- Noble Corporation
- Santa Oil Gas
Source EIA
17
18West Med Progress during 2008
- Confirmation of commercial discovery by Russian
Ministry of Natural Resources (MNR) - Confirmation of proven recoverable reserves
- Geochemical analysis of target location by
Exotrad Limited - Reassessment of subsurface data by local
institute, SibNats
Recoverable Reserves confirmed by MNR
Well 103
19West Med Programme for 2009
- During winter 2008/9, GeoDynamics (GDR) conducted
a passive seismic survey focused on new target
location - Drilling of next exploration well, Well 105,
expected in 2010 with a further two wells to be
drilled by the end of 2012
New target area identified by both Exotrad and
SibNats
SibNats Prognosis
Exotrad Prognosis
Well 103
Well 103
20Kemerkol Programme for 2009
- Production from the field is temporarily
suspended following a claim against VOGs
ownership during 2008 - The short-term development programme remains
- Shoot a passive seismic survey to determine next
drilling locations and analyse subsalt and salt
overhang potential - Initial drilling plan of two exploration wells to
target best locations and confirm correlation of
passive seismic - Full development drilling on confirmation of
further discoveries
21Falcon Petroleum Assets
Mali
Ethiopia
- Block 17 is located in the Nara Trough, the most
western of Mali's four sedimentary basins - According to aeromagnetic data, sediment
thickness may amount to over 14,000m similar to
the Precaspian Basin in Kazakhstan - The Cretaceous reservoir is thought to be similar
to that of Chad, but the Paleozoic is more
comparable with Algeria - Block 17s location in the narrow and relatively
elevated part of the Nara Trough
- Falcon has been involved in a study of the most
prospective sedimentary basin in Ethiopia Block
1 covering 150,000km2 including the Blue Nile
(Abay) Basin - Within this Block, Falcon has signed a PSA for
sub-Blocks Ab1, Ab4 and Ab7 - The Basin contains possible structural and
stratigraphic traps and oil seeps are present in
the northern section - The oil seeps occur in Were Ilu, inside Block Ab1
22Abbreviations
Bnboe Billion barrels of oil equivalent Mmboe Mi
llion barrels of oil equivalent Mmbbl Million
barrels of oil bbl/d Barrels per
day mcf Thousand cubic feet of natural
gas mcf/d Thousand cubic feet per
day Mmcf/d Million standard cubic feet of gas
per day Bcf Billion cubic feet of natural
gas Tcf Trillion cubic feet of natural
gas Bcm Billion cubic metres of natural
gas Mm Million US km2 Square
kilometres m Metres Mt Million
tonnes Mtpa Million tonnes per annum
23Resource Categorisations
Source IEA and Russian Ministry of Natural
Resources
24VICTORIA OIL GAS PLC HATFIELD HOUSE 52-54
STAMFORD STREET LONDON SE1 9LX Tel 44 (0)207
921 8820 Fax 44 (0)207 921 8821 www.victoriaoil
andgas.com info_at_victoriaoilandgas.com