Transcript - International Pavilion

Colombia Round 2008
Alberto Gamboa
Commercial Coordinator - ANH
London, March 6th, 2008
Contents
1.
Introduction
2.
The Colombia Round 2008
3.
Other rounds
4.
Conclusions
The ANH is the administrator of
the hydrocarbons resources
Ministry
Policy
ANH
Administration
ECOPETROL
National oil company
Colombia has a competitive E&P contract
Type
Tax and Royalty
Licensing body
ANH
Ecopetrol’s back-in
N/A
Working interest
100% Contractor
Duration of production
24 years + extension to economic life*
Royalties
Sliding Scale (8-25%)
* Subject to specific conditions
Sliding scale royalties
(Law 756/2002)
Before
Pre
2002
20%
Now
% production (by field)
20%
20%
10%
8%
0
5
125
400
Production
(1,000 boe/day)
600
Discount relative to light crude rates
Gas
- 20%
Heavy Crude
- 25%
Offshore gas (>1000 feet)
- 40%
Industry perceptions show strengths
2005
2007
Prospectivity
Prospectivity
Personal safety
5
5
4
4
3
Fiscal terms
Personal safety
2
2
1
1
0
0
Legal security
Legal security
Political stability
Political stability
Macroeconomic stability
Macroeconomic stability
Expected
Colombia
Source: Arthur D. Little 2005 and 2007
Fiscal terms
3
Expected
Colombia
Exploration activity has increased considerably
E&P Areas in 2003
12,5 million Ha.
February 2008
21,5 million Ha.
Licensing activity continues to increase…
No. contracts
Total 2007: 54
60
50
44 E&P
40
30
20
10
0
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006
Association (Ecopetrol)
Exploration & Production- E&P
Technical Evaluation Agreement (TEA)
…seismic data acquisition activity is high…
Kms. of 2D equivalent
seismics
25.000
20.000
15.000
Total: 9.970
10.000
5.000
0
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006
…the highest number of exploratory wells …
No. wildcats
80
Total 2007: 73
70
60
50
40
30
20
10
0
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006
…high success rates…
No. de pozos
No.
of wildcats
perforados
73
Success
%
100
75
56
80
60
37
45
35
28
30
21
16
11
10
12
0
20
13
15
2
1
8
2
2000
2001
2002
2
6
10
2003
2004
Producer
Productor
Under
En
pruebas
test
9
40
27
20
6
1
21
10
1
3
Total
19
60
29
15
2005
Dry
Seco
2006
% Success
2007
…reversal of the declining trend in oil production…
mbd
Annual average
800
687
700
604
600
578
541
528
525
529
531
2003
2004
2005
2006
2007
500
400
300
200
100
2000
Monthly average
2007
2001
2002
Año
600
522
516
ene
feb
519
525
mar
abr
522
522
523
527
536
may
jun
jul
Ago
Sep
551
557
Oct
Nov
558
Goal
516
500
400
300
200
Dic
…and continuous the positive
tendency in gas production…
Annual average
mmpcd
mmcfd
1.000
900
800
700
600
500
400
300
200
100
-
575
597
603
578
601
2000
2001
2002
2003
2004
mmcfd
648
680
2005
2006
730
2007
Año
1.000
Monthly average
2007
900
800
700
789
793
703
695
692
abr
may
724
716
jun
jul
750
731
762
687
716
600
500
400
300
200
100
0
ene
feb
mar
Ago
Sep
Oct
Nov
Dic
A record level of foreign investment
Petroleum sector
Net direct foreign investment flows:
MillIon US $
4.000
3.000
2.000
1.000
0
1996
1998
2000
2002
2004
2006
-1.000
Annual flows
Source: Banco de la República
3rd quarter
Projected
Contents
1.
Introduction
2.
The Colombia Round 2008
3.
Other rounds
4.
Conclusions
The Colombia Round 2008…

is the second competitive bidding round in Colombia

43 blocks on offer in four basins
- ~ 180,000 ha. on average

areas with established prospectivity close to markets
Areas offered in the Colombia Round 2008
43 blocks
7.681.047 ha
Sinú – San Jacinto basin
Blocks
SSJN 1
SSJN 2
SSJN 3
SSJN 4
SSJN 5
SSJN 6
SSJN 7
SSJN 8
SSJN 9
SSJN 10
TOTAL
AREA (Ha)
167.274
269.699
256.718
195.761
230.854
236.337
270.702
181.653
264.767
154.318
2.228.083
Seismic lines
Well
Number Length (Km) Number
648
7.928
122
Cesar Ranchería / Guajira basin
Blocks AREA (Ha)
CR 1
107.649
CR 2
162.524
CR 3
185.083
CR 4
168.327
CR 5
148.413
CR 6
102.656
GUA 1
106.265
GUA 2
125.832
GUA 3
89.764
GUA 4
50.321
TOTAL 1.246.833
Seismic lines
Well
Number Length (Km) Number
357
4.180
17
Eastern Cordillera basin
Blocks
COR 1
COR 2
COR 3
COR 4
COR 5
COR 6
TOTAL
AREA (Ha)
150.212
185.761
254.871
238.119
153.342
261.615
1.243.921
Seismic lines
Well
Number Length (Km) Number
120
964
4
Llanos basin / Heavy oil - West
Blocks AREA (Ha)
CPO 1
61.776
CPO 2
70.154
CPO 3
64.525
CPO 4
139.859
CPO 5
199.248
CPO 6
219.887
CPO 7
254.059
CPO 8
149.927
CPO 9
227.089
CPO 10
157.454
CPO 11
258.758
CPO 12
286.827
CPO 13
188.855
CPO 14
209.488
CPO 15
112.777
CPO 16
151.141
CPO 17
210.385
TOTAL 2.962.210
Seismic lines
Well
Number Length (Km) Number
1210
12.867
61
Pre – qualification criteria

Payment of participation fee

Legal

Technical

Operational

Financial
(Details for all of the above to be announced)
Criteria for operational qualification

Operational capacity waived for “top 100” companies in Petroleum

Other companies need to demonstrate:
Intelligence Weekly

5,000 boe/d in 2007

Experience in environmentally sensitive areas
Financial qualification
Financial statement requirements waived for companies:

With “investment-grade” credit rating agencies
- Moody’s (Baa), Standard & Poors (BBB) or Fitch (BBB)

“Top 100” companies in Petroleum Intelligence Weekly
Bidding criteria


Main criterion: Participation in production ( X% )
Secondary (tie – breaker): additional investment in
exploration ( in US$)
Key milestones (preliminary)
ACTIVITY
DATE
Announcement
February 4
Draft TDR
March 14
Roadshows
March 14 – April 8
Information data packages
April 15
Clarifications workshop
June 18-19
Final TDR
June 28
Bidding conference
September 16
Contract signatures
October - November
Road shows



Bogotá: Country Club
Houston: Westin Marriot Hotel
London: St. James’ Sofitel Hotel
14 March
26 March
2 April
Registration through website
Data rooms (*): Bogotá, Houston
Optional:
Calgary, London, Rio de Janeiro, Singapore
(*) Dates to be announced
More information on ….
Web page:


www.rondacolombia2008.com
www.colombiaround2008.com
All information pertinent to Round
To be regularly updated, containing:
 Initial and Definitive Terms of Reference
 Block maps
 Basic Round information / schedule
 Relevant legislation
 FAQs
 Links to ANH main web-site and information on E&P activity in Colombia
Contents
1.
Introduction
2.
The Colombia Round 2008
3.
Other rounds
4.
Conclusions
Heavy oil development project
8 frontier blocks are being offered
Blocks
CPE 1
CPE 2
CPE 3
CPE 4
CPE 5
CPE 6
CPE 7
CPE 8
TOTAL
AREA (Ha)
1.059.744
415.666
2.598.791
964.341
3.209.426
608.247
1.231.783
2.237.549
12.325.546
Seismic lines
Well
Number Length (Km) Number
405
7.267
37
2nd Ordinary bidding process
To be announced soon
Blocks
100
AREA (Ha)
4.830.629
Putumayo basin blocks
Blocks AREA (Ha)
PUT 1
46.489
PUT 2
39.119
PUT 3
59.890
PUT 4
51.334
PUT 5
62.419
PUT 6
11.324
PUT 7
50.399
PUT 8
30.965
PUT 9
43.522
TOTAL
395.461
Seismic lines
Well
Number Length (Km) Number
544
4.519
13
Llanos basin blocks
Blocks
LLA 1
LLA 2
LLA 3
LLA 4
LLA 5
LLA 6
LLA 7
LLA 8
LLA 9
LLA 10
LLA 11
LLA 12
LLA 13
LLA 14
LLA 15
LLA 16
LLA 17
LLA 18
LLA 19
AREA (Ha)
54.209
77.891
37.951
27.795
69.562
76.629
70.200
73.063
69.933
76.702
66.439
104.461
132.528
74.834
25.540
63.784
44.028
45.173
15.763
Blocks
LLA 20
LLA 21
LLA 22
LLA 23
LLA 24
LLA 25
LLA 26
LLA 27
LLA 28
LLA 29
LLA 30
LLA 31
LLA 32
LLA 33
LLA 34
LLA 35
LLA 36
LLA 37
LLA 38
TOTAL
Seismic lines
Number
Length (Km)
2416
15.348
AREA (Ha)
58.384
7.108
34.285
46.580
59.532
22.202
17.664
74.487
16.470
2.686
28.294
47.479
37.295
40.606
17.275
33.258
29.652
31.246
69.125
1.880.115
Well
Number
39
Middle Magdalena basin blocks
Blocks AREA (Ha)
VMM 1
52.087
VMM 2
34.043
VMM 3
36.584
VMM 4
58.346
VMM 5
53.659
VMM 6
64.194
VMM 7
7.074
VMM 8
38.699
VMM 9
63.579
VMM 10
26.758
VMM 11
26.327
Blocks AREA (Ha)
VMM 12
28.546
VMM 13
48.083
VMM 14
42.281
VMM 15
24.099
VMM 16
4.696
VMM 17
39.927
VMM 18
33.730
VMM 19
52.147
VMM 20
47.166
VMM 21
70.942
TOTAL
852.965
Seismic lines
Well
Number Length (Km) Number
726
4.418
82
Upper Magdalena basin blocks
Blocks
VSM 1
VSM 2
VSM 3
VSM 4
VSM 5
VSM 6
VSM 7
VSM 8
VSM 9
VSM 10
VSM 11
VSM 12
VSM 13
VSM 14
VSM 15
VSM 16
AREA (Ha)
58.794
34.456
76.719
86.754
33.565
6.922
25.941
32.151
63.515
40.357
50.316
73.476
75.274
67.693
71.901
12.750
Blocks
VSM 17
VSM 18
VSM 19
VSM 20
VSM 21
VSM 22
VSM 23
VSM 24
VSM 25
VSM 26
VSM 27
VSM 28
VSM 29
VSM 30
VSM 31
VSM 32
TOTAL
Seismic lines
Number Length (Km)
1320
7.280
AREA (Ha)
20.826
62.329
80.795
76.807
75.446
56.068
34.502
76.758
59.013
58.693
28.063
65.318
76.958
43.296
34.180
42.449
1.702.088
Well
Number
86
Sinú South and Chocó to be released in 2009
2008
2009
Contents
1.
Introduction
2.
The Colombia Round 2008
3.
Other rounds
4.
Conclusions
Conclusions

Attractive environment for Colombia Round 2008

Competitive contract terms

Diverse E&P opportunities with upside potential

Positive industry sentiment

Ready markets

Three competitive rounds in 2008
 Heavy Oil (East), 2nd Ordinary Round, Colombia Round
Thank you!
www.anh.gov.co
[email protected]
“Investment Opportunities in Hydrocarbons
and Production in Peru”
"PERU New Bidding Round 2008
- Opportunities in Frontier
Areas"
Ronald Egúsquiza
Manager for Promotion and Social Affairs
2008
Peru
Peru is located in
a strategic location in the
South American.
It is becoming a "regional
hub" in the South
American Pacific Area.
With more than
2,000 km shore in front
the Pacif Ocean
Peru
84 E&P Contracts
Coalbed
Methane
19 Exploitation
65 Exploration
06 TEA
Diesel from
Bitumen
Peru
Heavy Oil
84 E&P Contracts
19 Exploitation
Modernization
Talara Ref.
LNG Project
65 Exploration
Petrochemical
Industry
New Opportunities in E&P License Contracts
 Contract Stability
 Competitive Royalties
 Flexible work programs
 Huge Natural Gas Potential
 Heavy and Light Oil
discoveries
Perupetro S.A.:
In process
to launch 2008
Bidding Round in Peru
Open acreage for E&P
License Contract
Stability: Macroeconomics
Sustained economic growth with average annual
forecast greater than 7% for 2006 – 2010*
Peru
8,9
8
7,6
GDP Growth
(Annual variation %)
6,4
6
5,2
5,
2
3,9
4
Developed
2
World
0
80
82
84
86
88
90
92
94
96
98
00
02
04
06 07*
(*)Forecasted by Central Reserve Bank of Peru and the Ministry of Economy and Finance.
Source: International Monetary Fund and the Central Reserve Bank of Peru.
Sustained lower country risk compared with Latinamerica
average risk index
EMBI + Peru
600
Latinamerica
500
400
300
200
Updated October, 20th 2007
Source: Bloomberg
Oct-07
Aug-07
May-07
Mar-07
Jan-07
Oct-06
Aug-06
Jun-06
Apr-06
Feb-06
Dec-05
Oct-05
Aug-05
May-05
Mar-05
Jan-05
Nov-04
Sep-04
Jul-04
100
Dec 31, 2003:
27 (12 Ex, 15 Prod.)
Actions already taken to improve
exploration in Peru
Three lines of action:
•
Improved technical information
accessibility.
•
Enhanced economic incentives for
contracting. Let the market fix new
level of royalties for the State.
•
Improved contract model allowing
shorter period of negotiations.
PERUPETRO S.A.
STABILITY OF CONTRACTS IS BASED ON:
 Contract approved by Presidential Decree – same
level as a Congress Law - “Contract–Law”.


Contract signed by Peru-Petro S.A. as a
“Sociedad Anonima” follows corporate rules
So this Contract is signed
“Enterprise to enterprise”.
International Arbitration is part of the
Contract – there is a specific Clause for this.
 Present Government – Took Political Decision not
to modifiy the current Hydrocarbons Contract
Model.
PERUPETRO S.A.
DEC- 2007
Peru’s Signed Contracts
2000
1
2004
6
2001
4
2005
15
2002
2
2006
16
2003
2
2007
24
2008
?
Dec 31, 2004 31 (14 Ex, 17 Prod.)
August, 2007, 64 (45 Ex, 19 Prod)
PERUPETRO S.A.
DEC, 2007
2007 Bidding
Round in
Peru
August, 2007, 64 (45 Ex, 19 Prod)
From 19 Blocks offered,
14 Blocks were signed
PERUPETRO S.A.
DEC, 2007
Dec, 2007, 84 (65 Ex, 19 Prod)
Peru offers:
Open areas
Competitive Contract
Royalty scheme
Information Free of cost
Bidding Round
Recent discoveries of
Natural Gas and Heavy
and Light Oil
PERUPETRO S.A.
SEPT, 2007
HC PRODUCTION PERU
LIQUIDS
NEAR 120,000 BOPD
OIL
CONDENSATES
HC PRODUCTION PERU
GAS
255 MMCFD
Cuenca
Maranón
Cuenca Lima
Cuenca Pisco
Cuenca
Titicaca
Cuenca
Huallaga
Cuenca
Ucayali
Yellow Areas represent
OPEN ACREAGE in
Sedimentary Basins
• Open for License Contracts
• Perupetro is studying this
areas for a next process
Presentations
•
•
•
•
•
MARANON BASIN
HUALLAGA BASIN
UCAYALI
LIMA & PISCO BASINS
TITICACA BASIN
PROPOSAL EVALUATION
BIDDING ROUND
FINAL SCORE = TECHNICAL PROPOSAL SCORE + ECONOMIC PROPOSAL SCORE + GROSS REVENUES INDEX
Information about OPEN ACREAGE can be requested as from now.
Once Bidding started, Package of Specific Blocks will be produced and delivered to
applicants as a part of the Bidding Process.
PROPOSAL EVALUATION
FINAL SCORE = TECHNICAL PROPOSAL SCORE + ECONOMIC PROPOSAL SCORE + GROSS REVENUES INDEX
Application Letter
FAIL
PASS
Documents for
qualifications required by
law
FAIL
PROPOSAL
(Two sealed envelopes)
ENVELOPE N° 1
TECHNICAL PROPOSAL
PASS
Two sealed envelopes:
Technical proposal
(envelope N° 1) and
Economic Proposal
(envelope N° 2).
ENVELOPE N° 2
ECONOMIC PROPOSAL
You are welcomed to join us to
our Peruvian Session at
Canning House,
2 Belgrave Square, London SW1X 8PJ
Today at 06:30 pm
THANK YOU ALL VERY MUCH
Ronald Egúsquiza
[email protected]
PERUPETRO S.A.
Luis Aldana 320 – San Borja
Tlf. 6171800 – Fax. 6171801
APPEX London 2008
J R WESTON
Eromanga Hydrocarbons NL/Mercury do Brasil Oil &
Gas Ltda
6 th M a r c h , 2 0 0 8
History & Future Potential
in Brazilian E&P
Opportunities for the Independent
Eromanga/Mercury do Brasil
It’s all deepwater and deep pockets!
 The ill-fated P36
 Record
flexible riser
hook-up
 Record deepwater
production from
Roncador field ~
1850m WD
 Record insurance
claim!
Eromanga/Mercury do Brasil
Brazilian E&P Overview
Brazil E&P Big Picture

GDP to stereotypes
Licensing History & Trends

Pre-Round Zero to beyond Round 9
E&P Opportunity Mix

Mature to Frontier
Fiscal Summary

Bidding to Operating
Eromanga/Mercury do Brasil
Brazilian Economy Overview
 Brazil’s economy dominates Latin America
 Population
~ 183 Million, currently 10th on GDP basis
 GDP ~ US$1.5 Trillion, with real growth rate of 5%
 Current account balance: running at US$40 Billion p/a
 Today 54% of GDP under managed funds cf. 5% in 1985
 Tight fiscal policy, inflation targets (current 4%),
floating $R
Eromanga/Mercury do Brasil
Brazilian Economy Overview
 But, the negatives in E&P include
 Complex
indirect tax system
 Petrobras behemoth underpins rig shortage
 General lack of supply competition
 General adherence to bureaucratic structures
 Early IBAMA intransigence
 BDEP lacking teeth
Eromanga/Mercury do Brasil
Brazilian E&P Overview
 Geopolitical back-drop
One of the BRICs’ suppliers
 From oil importer to exporter – April 06
 Santos pre-salt impact – ongoing!

 Brazil’s E&P History – in brief
Petrobras monopoly – including Risk Contracts – 76-88
 New Petroleum Law and creation of ANP – 97-98
 Licence Rounds – mostly E (9) some P (2)

 Opportunities – Independents’ focus
Basins/plays – mature to frontier
 Rounds/farm-ins/corporate
 Trends – impact of new discoveries + regulatory push

Eromanga/Mercury do Brasil
Overview: The Brazilian E&P Sector
 Petrobras created in 1953 – “Nosso oleo”
 Risk Contracts 1976-88 – Merluza gas field
only commercial discovery
 New Petroleum Law 1997 & ANP* creation,
1998
 From Petrobras monopoly to >50 companies
investing now
*Agencia Nacional do Petroleo – Brazil’s up-,
mid- and down-stream regulator
Eromanga/Mercury do Brasil
Milestones
Oil and Gas Production
Sub Commercial Discoveries
New Frontier Areas
Eromanga/Mercury do Brasil
No.
Basin
ON/
OFF
Year
1
Recôncavo
ON
1941
2
Tucano
ON
1961
3
SergipeAlagoas
ON/
OFF
1963
1968
4
Espírito
Santo
ON/ 19691
OFF
971
5
Potiguar
ON/
OFF
1979
1973
6
Campos
OFF
1974
7
Ceará
OFF
1978
8
Solimões
ON
1978
9
Santos
OFF
1979
Overview: The Brazilian E&P Sector
 Brazil Rounds 1 to 9 from 1999 to 2007
 8th Round to be re-commenced this year
 Brazilian current production ~ 1.9MM stb/d
plus 1.8 bcfg/d; self-sufficient for first time,
April ‘06
 Brazil has potential to export 300-500M
stb/d by 2010
 Concession Contract – tax & royalty basis
Eromanga/Mercury do Brasil
Concession Contract
 Royalty
 Federal taxes (PIS/COFINS)
 Income tax
 Surface owner rental (onshore)
 Total*
10%
9.25%
34%
1%
54.25%
*excludes Signature Bonus
Royalty sliding scale 10-5%
 Special Participation Tax – fields > 10.5m, 21m & 31.5m boepd

Eromanga/Mercury do Brasil
Special Participation Tax
1o.5m boepd (onshore),
>21m boepd (offshore,
<400m), 31.5m bopd
(>400m)
 No SPT unless & until
threshold volumes achieved
& cumulative income +ve
 SPT amounts paid are
deductible against CIT
Eromanga/Mercury do Brasil
 E.g. Deepwater field
70
60
1000 boepd
 Applies only to production >
50
40
30
20
10
0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
year
The early feeding frenzy..
Eromanga/Mercury do Brasil
Independent Entry Routes
 Brazil Bidding Rounds





Effected annually – sealed bidding, complete transparency
Bidding based on Signature Bonus and MWP plus subsidiary % local
content – computation follows clear weighting
Licence periods – initial seismic option phase(1-4 years) followed by 1 or 2
phases with drilling commitments & mandatory relinquishments of 50%
3rd Marginal field round and resumed 8th Round slated this year
ANP website: www.anp.gov.br – statistics from all rounds, future plans
etc.
 Farm-ins

Secondary market now thriving
 M&A

‘None core’ nervousness…opportunities
Eromanga/Mercury do Brasil
Brazil’s Sedimentary Basins
Eromanga/Mercury do Brasil
Brazilian Licence Round Trends
 Round 0 – Petrobras ‘re-apply’ and offer JVs
 Round 1 – all majors/large independents, no small
independents
 Rounds 2-6 ~ 30-50% small independents
 Rounds 7-9 ~ 50-75% small independents
Deliberate policy to create a flourishing independent
sector
 Lowering of entry hurdles – Smaller Concession Areas,
Signature Bonuses & Minimum Work Programmes

Eromanga/Mercury do Brasil
Total Signature Bonuses Offered in Rounds 1 to 9 US$MM & US$/km Source: Wood Mackenzie/ANP
Eromanga/Mercury do Brasil
Top 10 Signature Bonus Expenditure (US$MM) in
Round 9 Source: Wood Mackenzie/ANP
Eromanga/Mercury do Brasil
Top 10 Net Acreage Winners in Round 9 (km2)
Source: Wood Mackenzie/ANP
Eromanga/Mercury do Brasil
Round 9 Summary
Eromanga/Mercury do Brasil
Brazil’s Sedimentary Basins
Eromanga/Mercury do Brasil
The sub-salt disappearing act…
potential impact for small independents
Eromanga/Mercury do Brasil
The Brazilian E&P Sector – Independents
on the rise
 Petrobras retain > 200 fields in production, of which
<20% account for >95% of Proved reserves
Increasing ANP pressure on Petrobras to use or lose
 Some offered as farm-outs pre-Round 1 = Round 0
 Some sold to small independents – Round 0
 Two ‘mature/marginal’ field rounds (2001 & 2006)
 3rd Marginal Round – 21st May 08: 15-17 blocks to be offered
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 Independent producers include:
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Aurizonia, Brazalta, Koch, PetroReconcavo, PetroSynergy and
WWashington – new IP Association formed 07
 Niche players in rapidly expanding GNV market
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Panergy (Morro do Barro field, Bahia)
Eromanga/Mercury do Brasil
Why onshore Brazil..
for the small independent?
 Mature producing basins
Well understood petroleum systems, but low drilling density
and opportunities for systematic use of 3D
 Existing infrastructure
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 Frontier basins
Extensive gas seeps & huge market – Sao Francisco
 Light oil presence & local analogue – Rio do Peixe
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 Local JV partners
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Relationships once established…
 Reliable regulatory structure & reasonable fiscal
terms
Eromanga/Mercury do Brasil
Eromanga Hydrocarbons NL/Mercury do
Brasil Oil & Gas Ltda
 Farmed into 5 blocks in Reconcavo Basin
Second exploration phase and drilling commitment on 2 blocks
 Extension of First exploration phase on 2 blocks
 1 block dropped
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 Farmed into 3 blocks in Sergipe-Alagoas Basin
Second exploration phase and drilling commitment on 2 blocks
 Extension of First exploration phase on 1 block
 Currently preparing to run DST on first well
 Second well on separate block next
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 Acquired 2 blocks in Rio do Peixe Basin in 9th Round
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Planning exploration campaign
Eromanga/Mercury do Brasil
Seismic Crew - Silver Marlin JV
Reconcavo Basin July 2007
Eromanga/Mercury do Brasil
Sao Francisco Basin Gas seeps along Paracatu river
Eromanga/Mercury do Brasil
Eromanga/Mercury do Brasil