Transcript Honduras - Black Star 231 Corp.

Honduras
An Introduction to
Potential Giant Oil
Fields in Honduras
Rose Dome Energy, S.A.
Overview
• Rose Dome Energy presents an exciting new
play in Honduras
• Large Cretaceous basin that has never been
drilled
– Tela Basin or the Western Honduras Basin
– Covers some 5700 square miles
• Exploration target is Cretaceous and Jurassic
sediments
• Field work shows 17,000 feet of measured
section in Mesozoic & early Tertiary basin
• Field work indicates some 9-10 anticlines
along geanticline trend
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Area of Interest
3
Geological Map of Honduras Map of Honduras
4
Background
• Field work on the area encompassed three to
four years
– Studies of area continued for several years
– Many academic studies and mapping of the area
• Three large anticlines have been mapped in
the field.
– Located on the west end of the anticlinorium
• This anticlinorium is referred to in this
presentation as the Mills Anticlinorium
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Anticlinorium
• Two anticlines surveyed near the town of
Atima contain 8,000 and 13,000 acres of
closure respectively
• Effective vertical thickness ranges from 1,000
to 2,000 feet
• Average dip on the flanks is 25 degrees
• The terrain is very mountainous but the
mapped anticlines are near a paved road
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Geology - Structure
• The anticlines are simple, large structures
– But, the detailed stratigraphy is complex
• The structures were formed in Late Oligocene
or early Miocene
• Collectively, the structures are big enough to
yield major oil fields i.e. hundreds of millions
or billions of barrels of oil
• With the current price of oil, the smaller
anticlines would be very profitable
• Most probably, other anticlines will map out
as targets for exploration
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Anticlinorium
• It is difficult to see the anticlines from landsat
pictures as the terrain is covered with
vegetation and severely dissected by erosion
• Field work is necessary for checking of data
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Anticline Trend
Unmapped
anticlines
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Geology
• No intrusive or extrusive rocks have been
seen in the Mesozoic of Honduras
• No sedimentary Paleozoic rocks in Honduras
• Paleontological control is fair to good
• In the Cretaceous section, rudistid and other
reef forming fossils have been documented
– Good porosity was noted in this part of the
Cretaceous sediments
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Jimilie
Structure
Naranjito
Structure
Atima
Structure
M
Mapped Structures over Digital Terrain Map
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LOWER
CRETACEOUS
UPPER
CRETACEOUS
TERTIARY
STRATIGRAPHIC COLUMN - HONDURAS
AGE
QUATERNARY
PLIOCENE
MIOCENE
HONDURAS AOI
SAND & GRAVEL
GRACIAS FM.
VOLCANIC
ROCKS
OLIGOCENE
EOCENE
MAESTRICIAN
CAMPANIAN
SANTONIAN
CONIACIAN
TURONIAN
COMMENTS
VALLE
DE ANGELES
GROUP
GUARE
FM.
VALLE DE ANGELES IS MADE UP OF SAND,
GRAVEL, EXTENSIVE RED BEDS WITH
LIMESTONE BEDS AT THE BASE OF
THE GROUP.
GUARE OUTCROPS ARE COMMON. VERY
STRONG PETROLEUM ODOR ON FRESH BREAK.
CENOMANIAN
ALBIAN
APTIAN
NEOCOMIAN
JURASSIC
PERMIAN
CARBON.
PALEOZOIC
META.
AFTER MILLS ET. AL.
ATIMA
FM.
ATIMA FM. IS GRAY LIMESTONE, LOCALLY
VERY FOSSILIFEROUS, VERY POROUS.
LOCALLY ALTERED TO DOLOMITE, KEROGEN
ILAMA GILSONITE, OIL STAINS.
FM.
CANTARRANAS
CANTARRANAS FM. CONSISTS OF BLACK
FM.
PETROLIFEROUS LIMESTONES, SHALES AND
POROUS SANDSTONE. GOOD RESERVOIR
TODOS
? ROCKS IN THIS FORMATION.
SANTOS FM.
EL PLAN
EL PLAN - 3000 FEET OF ALTERNATING
FM.
PETROLIFEROUS SANDSTONE, SHALES
METOMORPHIC
AND SILTSTONE.
INTRUSIVE
ROCKS
PETROLIFEROUS FORMATIONS, KEROGEN,
OIL STAINS, GILSONITE
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Jimilie
Cross-section
Naranjito
Cross-section
A
Atima
Cross-section
Line
of crossMap
Structure
Structure
Map
of of
three
Three
large
Anticlines
sections.
anticlines
Map is actual field Map
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Gilsonite Outcrop
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Plate tectonic elements
can be seen on
geographic map
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Tectonics - Chortis Sub-plate
• The Chortis sub-plate contains most of
Honduras and the northern part of Nicaragua
• Originally located on the Pacific side of
southwestern Mexico
• It rotated around the southern edge of Mexico
and became part of the Caribbean Plate
• The American Plate and the Caribbean Plate
came together in Oligocene time
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Tectonics - Structure
• The plate movements, with some strike slip
activity, formed the Mills Anticlinorium in
upper Oligocene or Miocene times
• In addition to the Mills Anticlinorium several
other anticlines to the northwest have been
noted but not mapped (see map of area)
• The Chortis Plate is shown as red on next
slide
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23
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American
Plate
Caribbean
Plate
Diagram showing American Plate and Caribbean Plate.
American Plate continues to move westwards.
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Area of interest
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Magnetic Data - Honduras
• The following two slides contain magnetic
data of Honduras
• The basic recorded digital data of the
magnetic survey is not available
• Nevertheless, the magnetic data show that
the Atima Block is on a Magnetic high trend,
with the highest reading on the Atima Block
• Thus, this data may indicate a basement high
with younger sedimentary draped over the
magnetic anomaly, which could result in large
deep seated structures
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Rose Dome
Area of
Interest
Aerial magnetic map of Honduras. Red line shows magnetic high
trend that extends across Area of Interest and on to the southeast.
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Source Rocks Atima Cross-Section
• The limestone on the surface is gray,
occasionally black
• Very fossiliferous - rudistids abundant with
other reefal fauna
• Black shale sections of the Atima limestone
contain modules of kerogen with very strong
petroleum odor when fractured
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Source Rocks Guare Formation
• Located above the Atima limestone in the
Lower Cretaceous (Kyg)
• Frequently stained with oil
• A brown grease is found within calcite veins
along bedding planes of black shale
• Very strong petroleum odor
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Source Rocks
• Distillation of oil seep samples from the
Cantarranas reveals typical heavy paraffinbase crude types
• Kerogen has been found in all the limestones
of the Cantarranas, Atima and Llama
formations
• Further reservoir rocks may be found in the
porous sandstones of the Plan Grande and
Victoria formations at depth
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Source Rocks
• Shows of oil are scattered throughout the
geological section
• Formations with oil shows are noted on the
cross sections
• Gilsonite (asphalt) was sampled in an outcrop
northeast of the Jimilie structure
– This location is noted on the cross section of the
Jimilie section
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Reservoir Rocks
• Good porosity is noted in the Upper
Cretaceous rocks that contain rudistids and
other reef forming fauna
• Other formations of the Cretaceous have
porosity
• Further reservoir rocks may be found in the
porous sandstones of the Plan Grande and
Victoria formations at depth
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Paleontological
• A map showing exact areas where fossils
were collected is available
• A list of fauna from each area is available
• The fauna suggests that reefs will be found in
the Cretaceous
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Reserve Potential
• Following are rough estimates of the potential
of the Atima Project.
• We have mapped the surface structures
which gives us the surface area of the
anticlines.
• We put in a thickness of the potential
reservoir rocks.
• We will complete the surface mapping on the
West Narranjito structure soon. This will take
only a day or so.
• These figures show vividly the excellent
potential of the Honduras project.
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Reserve Potential
• The following estimates are based on 18% porosity and 70% oil
saturation at a reservoir depth of 6500 feet. They also assume
45% recovery by water drive:
– Atima Structure (13,000 acres - 300’ pay):
• 3,812,000,000 bbls of oil in place
• 1,715,000,000 bbls of oil recoverable
– Narranjito Structure (9,000 acres - 400’ pay):
• 3,519,000,000 bbls of oil in place
• 1,583,000,000 bbls of oil recoverable
– Narranjito West Structure (8,000 acres - 250’ pay):
• 1,955,000,000 bbls of oil in place
• 880,000,000 bbls of oil recoverable
– Jimile Structure (5,000 acres - 300’ pay):
• 1,466,000,000 bbls of oil in place
• 660,000,000 bbls of oil recoverable
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Business Environment
• Honduras is friendly to America and would be
a good place for a foreign operation
• The Petroleum contract in Honduras is
negotiable
– Based on production or financial criteria, a sliding
scale of royalty might be attainable
– It is believed that the highest royalty would be
20%
– Income tax is 30%
– Acreage price is $.25 cents/acre
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General
• Good geological literature, and good
topographical maps are available
• The area of interest is extremely rugged with
rivers and streams dissecting the area
• The area is totally green and is covered by
trees, shrubs and grass
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Conclusions
• Large field-mapped anticlines are present
• The anticlines are big enough for world class
oil fields
• The geological section has structure, source
rocks, reservoir rocks
• A rank wildcat area with great potential
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Current Status/ Next Steps
• Local Honduras company, Rose Dome
Energy, S.A., was formed
– Local office established
• Application for the Atima block was submitted
– Application reserves the 741,000 acre Atima block
for Rose Dome Energy, S.A.
• Negotiations will take several months
• Commence field checking as soon as
possible
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Recommendations
• Start effort to locate seismic crew
– A portable crew appears best
• Start effort to locate suitable drilling rig
• Plan reconnaissance trip to scout drilling
locations
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Exploration Program
• Phase 1
– Acquire three 100,000 hectare blocks
(741,000 total acres, or 3,000 square
kilometers)
– Field checking of mapped structures and
possible additional mapping on west end of
Naranjito structure
– Field work on unmapped anticlines located
north of Atima structure
– Review of magnetic data
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Budget Phase 1
• Honduras Block (NW Honduras)
– Purchase acreage
– Field work
– General/Administrative
• Total Phase 1
$1.25 MM
$ .30 MM
$ .10 MM
$1.65 MM
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Exploration Program
• Phase 2
– Seismic work by portable seismic crews
– Seismic lines over Naranjito and Atima
structures
– Prepare first drilling site
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Budget Phase 2
• Honduras Block (NW Honduras)
– Seismic acquisition
$4.50 MM
• Acquisition, processing
and interpretation
– General/Admin
• Total Phase 2
$ .25 MM
$4.75 MM
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Exploration Program
• Phase 3
– Drill first well
– Prepare drilling location for second well
– Drill second well
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Budget Phase 3
• Honduras Block (NW Honduras)
– Drill Two Wells
$13.6 MM
• Drilling operations
• Road building & site prep
• Includes overhead & G&A
• Total Phase 3
$ 13.6 MM
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Total 12 Month Budget
• Honduras Block (NW Honduras)
– Phase 1
– Phase 2
– Phase 3
$ 1.65 MM
$ 4.75 MM
$13.60 MM
• Total Budget
$ 20.0 MM
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Tropical Wet
Area of interest
Tropical Wet and Dry
Map of climate in
Central America
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Honduras-General
• Petroleum infa-structure is non-existent
• But, road building and related equipment is
available and inexpensive
• Labor is plentiful and inexpensive
• Good hotels are available in San Pedro Sula
and Tegucigalpa
• Climate is both tropical and sub-tropical
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U.S. Investment & Relations
• U.S. nearly 2/3 of foreign investment in Honduras
• CAFTA Free Trade Agreement signed 2006,
eliminates tariffs and barriers to trade and investment
• 2005 signed Millennium Challenge with U.S.
• Approx. 100,000 U.S. citizens visit annually, and
15,000 U.S. residents
• Over 150 U.S. companies operate in Honduras
• No tourist visa required for U.S. citizens
• Work and resident visas are easily arranged
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Honduran Economy
• One of poorest and least developed Latin
American countries
– 2/3 living in poverty
– Per capita income less than $900
• Economy has diversified over past 20 years
with non-traditional exports and tourism
• 2006 GDP estimated at $9.3 billion
• 54% of exports to U.S., 37% imports from
U.S.
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Geography & People
•
•
•
•
•
•
Population:
Area:
Capital:
Terrain:
Climate:
People:
• Literacy:
• Language:
• Religion:
7.3 million
43,278 sq. miles
Tegucigalpa (1.15MM pop.)
Mountainous
Tropical/subtropical
90% Mesitzo (mixture of Indian
and European)
Over 76%
Spanish, English (2nd language)
Roman Catholic, Protestant minority
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Government
• Politically very stable
• Democratic Constitutional Republic
• Three branch government
– Executive, Legislative, Judicial
•
•
•
•
President elected to single 4 year term
Legislative - 4 year terms
Judicial - U.S. style with Supreme Court
Current President from Liberal Party, Manuel Zelaya,
elected in 2005
– Seventh democratically elected president
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History
• Originally Mayan civiliazation
• Christopher Columbus landed in 1502 and
named Honduras
– Spain colonized Honduras
• Gained independence from Spain in 1821
• Series of dictators and military coups, until
mid-1980s when began elections
• Devastated by Hurricane Mitch in 1998
– 5,000 dead and 1.5 million displaced
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