EXPLORATION OPPORTUNITIES IN NAMIBIA Obeth Mbui Kandjoze NAMCOR (Pty) Ltd AAPG International Pavilion Dallas April 2004 www.namcor.com.na www.mme.com.na

Talk outline Fourth Licensing Round Petroleum Systems Fiscal Changes New data Petroleum Systems The Orange Basin and the Kudu Petroleum System Walvis Basin Owambo Basin Summary

Fourth Licensing Round March 2004 Minister of Mines and Energy announced the Fourth Licensing Round September 1st-November 30th Selected blocks in Orange and Walvis Basins Promotion seminars London 9th September Houston 13th September

Fourth Licensing Round Fiscal changes Level of APT initiation modified to make marginal projects more attractive APT1 now initiated at 20 % RRR APT2 now initiated at 22.5% RRR Royalty and PIT remain at previous levels (5% and 35%)

Fourth Licensing Round New data Seismic 3300 km of new data acquired in Orange Basin in 2003 1016 km of new data acquired in Walvis Basin in 2003 Surface geochemistry 52 sites sampled January 2004 Heat flow 12 sites measured January 2004 Condensate biomarker New analyses August 2004

Overview The 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 in deep water

Current activities 4 current licenses: 2814-A –Energy Africa, NAMCOR Block 1711 – Vanco, NAMCOR, Pamue Owambo Basin - First Africa Oil Company, NAMCOR Nama Basin - INA Plc

Sedimentary Basins of Namibia Owambo Namibe Walvis-Lüderitz Nama Orange

Orange Basin Offshore of major river system Proven hydrocarbon system Significant deep water potential

Orange River

Kudu Petroleum System Significant proven gas reserves – 1.45 tcf Gas quality excellent Dry, sweet gas (96% methane) Low H2S and CO2 Very small amounts of condensate High Pressure (7,800 psi) High Temperature (160 ºC) c. 4.5 km below sea level Flow rates in the order of 40 MMscf/day

Petroleum system elements Source rock – marine Aptian Condensate biomarkers confirm mature, Cretaceous, marine source rock Reservoir - interbedded sands and lavas Largely stratigraphic trap Barremian-Hauterivian?

Orange Basin Survey Orange Basin Survey Acquisition Processing Survey size: 3,300km Source Volume: 100 bar metre Source depth: 6m Streamers: 8,000m Record Length: 9s Shot interval: 25m Acquisition fold: 160 Vessel positioning: DGPS Gravity and magnetics Processing Includes: Free Surface/Radon demultiple, UTMOST, Kirchoff pre-stack time migration

Orange Basin Survey Dip Line across Kudu gas field

Orange Basin Survey Strike Line to SW of Kudu showing rollover of Kudu interval

Surface Geochemistry

Surface Geochemistry

Surface Geochemistry Gas hydrates found in core

Walvis Basin Volcanic character Underexplored Area 105,000 sq km Water depths 150-3,000m 5 wells have proven elements of petroleum system Proven source rock Proven reservoir sequences Sandstones Carbonates

Source rock

Reservoirs 1911/15-1 2012/13-1 3700 m 3800 m 3900 m 4000 m 4100 m B T LATE ALB B T L 3700 m P A A D A I L M ? - 3800 m T P A 3900 m A L - N A I M 4000 m E R R A B ? 4100 m 1911/15-1 2012/13-1

Walvis Basin Survey Walvis Basin Survey Acquisition Processing Survey size: 990km Source Volume: 100 bar metre Source depth: 6m Streamers: 8,000m Record Length: 9s Shot interval: 25m Acquisition fold: 160 Vessel positioning: DGPS Gravity and magnetics Processing Includes: Free Surface/Radon demultiple, UTMOST, Kirchoff pre-stack time migration

Walvis Basin Survey ONDJOU: 4-way dip closure 700 sq km Large, mature kitchen Conformable impedance amplitude anomalies Potentially 5 Bbbl oil

Owambo Basin Large, underexplored Bitumen occurrences Analog – Athel in Oman Same age Similar carbonate reef facies as reservoirs Aerogravity/magnetic survey Commenced 7th April 2004 c. 7000km, 12 x 60 km c . 50,000 sq km

Aerogravity and magnetic

Summary New opportunities available Significant amount of new data Attractive fiscal terms Politically stable Excellent infrastructure

For more information visit: Booth #22/23, International Pavilion www.namcor.com.na www.mme.com.na