EXPLORATION OPPORTUNITIES IN NAMIBIA - Unctad XI

Not an official UNCTAD recordEXPLORATION OPPORTUNITIESIN NAMIBIARoger SwartNAMCOR, Windhoekwww.namcor.com.nawww.mme.com.na

Talk outlineFourth Licensing RoundFiscal ChangesNew dataPetroleum SystemsThe Orange Basin and the KuduPetroleum SystemWalvis BasinOwambo BasinSummary

Fourth Licensing RoundRoyalty and PIT remain at previous levels(5% and 35%)Annual training fund contributionFiscal changesLevel of APT initiation modified to make marginalprojects more attractiveAPT1 now initiated at 20 % RRRAPT2 now initiated at 22.5% RRRAPT3 remains at 25% RRRAPT1 set at 25%; APT2 & 3 negotiable

Fourth Licensing RoundNew dataSeismic3300 km of new data acquired in Orange Basin in 20031016 km of new data acquired in Walvis Basin in 2003Surface geochemistry52 sites sampled January 2004Heat flow12 sites measured January 2004Condensate biomarkerNew analyses August 2003

OverviewThe Namibian margin is:• volcanic, but- proven petroleum systems at Kudu and Q1911- proven source rocks- Aptian- Turonian-Cenomanian- proven reservoir sequences- sands- carbonates- volcanic features provide sand trapping opportunities indeep water

Current activities4 current licenses:2814-A –Energy Africa, NAMCORBlock 1711 – Vanco, NAMCOR, PamueOwambo Basin - First Africa Oil Company,NAMCORNama Basin - INA Plc

Sedimentary Basins of NamibiaNamibeOwamboWalvis-LüderitzNamaOrange

Orange River

Kudu Petroleum SystemSignificant proven gas reserves – 1.45 tcfGas quality excellentDry, sweet gas (96% methane)Low H 2 S and CO 2Very small amounts of condensateHigh Pressure (7,800 psi)High Temperature (160 ºC)c. 4.5 km below sea levelFlow rates in the order of 40 MMscf/day

Petroleum system elementsSource rock – marine AptianCondensate biomarkers confirm mature,Cretaceous, marine source rockReservoir - interbedded sands and lavasLargely stratigraphic trapBarremian-Hauterivian?

Orange Basin SurveyOrange Basin SurveyAcquisition Survey size: 3,300km Source Volume: 100 barmetre Source depth: 6m Streamers: 8,000m Record Length: 9s Shot interval: 25m Acquisition fold: 160 Vessel positioning: DGPS Gravity and magneticsProcessing Includes: Free Surface/Radondemultiple, UTMOST, Kirchoffpre-stack time migration

Orange Basin SurveyDip Line across Kudu gas field

Orange Basin SurveyStrike Line to SW of Kudu showing rollover of Kudu interval

Surface Geochemistry1 of 3 sections2 of 3 sections3 of 3 sections"/"/ "/"/"/"/ "/"/"/"/"/"/"/ "/"/"/"/"/"/ "/"/"/"/"/"/"/"/"/"/NB-0201NB-0202"/"/ "/"/"/"/"/"/"/"/"/"/!.!.!.!.!.!.!."/"/ !. !."/"/"/"/"/"/"/"/ !.!.!.!. !.!."/"/!."/"/!.!."/"/ !. "/"/!.NB-0211NB-0212NB-0192NB-0191Namibia!.AngolaNB-0091NB-0092NPC001NPC002NPC006NB-0111NB-0112!NPC005! NPC007NPC003 !NPC004!NB-0692NB-0702NB-0691NB-0701NB-0242NB-0241NB-0681NB-0071NB-0682NB-0072!NB-0671/2NPC010!NB-0061/2NB-0751NB-0051NB-0752NPC009NB-0052NB-0762NB-0261NPC008 NB-0761NB-0262NB-0231NB-0232NB-0223NB-0233NB-0222NB-0221NB-0181NB-0182NB-0251NB-0252NB-0661NB-0662BotswanaSouth Africa2 block!!NB-0651NB-0652ZambiaNB-0102NB-0101NB-0082NB-0081NB-0171NB-0172ZimbabweLesothoNPC012!NB-0161NB-0162!!NPC011!NPC013SwazNB-0641NB-0642!NPC014NB-0031NB-0032NB-0131NB-0132NB-0622NB-0621!NPC019NB-0152NPC018 NPC016!NB-0151NPC017NPC015NB-0011NB-0012!NB-0022NB-0141NB-0142NPC020NB-0121NB-0122NB-0631NB-0632NB-0042NB-0041NB-0611NB-0612NPC035NPC029!NB-0501NB-0502NB-0741NB-0742NB-0731NB-0732NPC024NPC021NPC023NPC027! !NPC030NB-0471NB-0472NPC040NPC042NPC053NPC028NPC025NB-0482NB-0481NPC052NB-0431NB-0432NPC022NPC026NPC031NPC032NB-0461NB-0462NPC034NPC043NPC049NPC057NPC056NPC050NPC048NPC051NPC039NPC041NB-0451NB-0452NPC036NPC037NB-0421NB-0422NB-0491NB-0492NPC033NPC055NB-0441NB-0442NPC046NB-0711NB-0712NPC038NB-0411NB-0412NPC054NPC045NPC044NPC0471902 Pinon Rd, College Station, TX, 77845 | Ph: 979-693-3446 Fax: 979-693-6389 | Visit us on the web at: www.tdi-bi.com18°S10°E³ª ªªªªª ªªªªªªªªªª³³³ ³³12°E14°E16°E18°E18°Sªªª ª ª4-block20°Sª ª5-block³³ª³³³³20°S22°S³³ª ªªªªª ªªªªªª7-blockª³!.Windhoek22°S!.Walvis BayNamibia24°S24°Sª ªªª³9-blockª26°S10-block³³ªª ªªªªªªª ª ª26°S28°SThermogenic Gas Showsª 0 of 3 sections³³³ªªªª ªª ªª ªªª ª13-block12-blockªªªªª ª ªªª ªNB-0721ªNB-072215-blockª28°S32°S30°SStudy AreaF!.!.!. "/"/ !.!.!. !. !. "/"/ "/"/ !. !."/"/"/"/"/"/"/ "/"/ !. !. !.!. !.!.!.!. "/"/"/"/ "/"/ !. !."/"/10°E12°Eª14°EªINamcor Namibia SGE Data - 1995 / 2004Thermogenic Gas ShowsMap 1 of 1Ref#: J04365-AAPGDate: April 2004Scale: 1:2,250,000TDI-Brooks International, Inc.16°E25 0 50 100 150 200KmTDI-Brooks International does not guaranteethe accuracy of bathymetric contours,international boundaries, lease blocks, orshorelines.18°E30°S32°S

Surface GeochemistryGas hydrates found in core

Walvis BasinVolcanic characterUnderexploredArea 105,000 sq kmWater depths 150-3,000m5 wells have proven elements ofpetroleum systemProven source rockProven reservoir sequencesSandstonesCarbonates

LITHOLOGYAGEDEPTH (m)DEPTH (m)LITHOLOGYAGETOC%0 1 10CON33003400350036003700SANT CAMPTURON CENOM1911/10-1TOC%0 1 10330034003500CENOMANIAN CON-SANTSource rock1911/15-1

ReservoirsLATE ALB?LA APT-MIDALB3700 m3800 mMAASTRICHTIAN2700 m2800 m2900 m?BARREMIAN-LA APT3900 m4000 m4100 mCAMPANIAN3000 m3100 m3200 m1911/15-1 2012/13-1

Walvis Basin SurveyWalvis Basin SurveyAcquisition Survey size: 990km Source Volume: 100 barmetre Source depth: 6m Streamers: 8,000m Record Length: 9s Shot interval: 25m Acquisition fold: 160 Vessel positioning: DGPS Gravity and magneticsProcessing Includes: Free Surface/Radondemultiple, UTMOST, Kirchoffpre-stack time migration

Walvis Basin SurveyONDJOU:4-way dip closure700 sq kmLarge, maturekitchenConformableimpedance amplitudeanomaliesPotentially 5 Bbbl oil

Aerogravity and magnetic

SummaryNew opportunities availableSignificant amount of new dataAttractive fiscal termsPolitically stableExcellent infrastructure

For more information visit:www.namcor.com.nawww.mme.com.na