Democratic Republic of São Tomé and Principe AAPG Conference New Orleans Luís Prazeres Executive Director ANP-STP

Democratic Republic of São Tomé and Príncipe Location: In the Gulf of Guinea, off the west- central coast of Africa, 300 kms (160 mi.) from GabonLocation: In the Gulf of Guinea, off the west- central coast of Africa, 300 kms (160 mi.) from Gabon Capital: São ToméCapital: São Tomé Land area: approximately 1001 Km 2Land area: approximately 1001 Km 2 Maritime area: approximately 166,000 Km 2Maritime area: approximately 166,000 Km 2 Distance from Continent: 300 KmDistance from Continent: 300 Km Population: 160,000 (estimate 2007)Population: 160,000 (estimate 2007) Climate: Tropical. Average temperature 26° C (78° F) on the coast; lower in the highland. Dry season June to August. Short periods of tropical rains during the rest of the year.Climate: Tropical. Average temperature 26° C (78° F) on the coast; lower in the highland. Dry season June to August. Short periods of tropical rains during the rest of the year. Official Language: PortugueseOfficial Language: Portuguese Government: Semi-presidential Representative DemocracyGovernment: Semi-presidential Representative Democracy Natural Resources: Cocoa, coconuts, bananas, coffee, palm oil, fishes, Petroleum (not yet exploited)Natural Resources: Cocoa, coconuts, bananas, coffee, palm oil, fishes, Petroleum (not yet exploited) Export: cocoa, coffee, coconut, pepperExport: cocoa, coffee, coconut, pepper Currency: Dobras (STD)Currency: Dobras (STD) PRIME MINISTERS SPEECH PRIME MINISTERS SPEECH São Tomé STP

THE COMPETENT AUTHORITIES The Government The Government of the Democratic Republic of São Tomé and Príncipe, at any time and from time to time, in accordance with Article 109 of the Constitution of Democratic Republic of São Tomé and Príncipe. Ministry of Natural Resources, Energy and Environment The Ministry establishes the policies for the petroleum sector. National Petroleum Agency The Agência Nacional do Petróleo de São Tomé e Príncipe (“ANP-STP”) was established by Decree-Law No. 5/2004, of the 14th of June. It is the national regulatory body, reporting to the Ministry, with responsibility for enforcing the regulations, contracting with third parties and supervision of petroleum operations.

Organisational structure Petroleum law provides the legal foundation for the governance structure of petroleum activities clarifying roles and interests: Commercial InterestResource owner Oil Companies Regulator

ANP-STP (National Petroleum Agency) Is the regulatory authority for the petroleum operations (exploration, production and transport of hydrocarbons) Participate in the proposal of legislation and its implementation Promote the exploration within exclusive economic zone Organize and conduct licensing including negotiations with applicants Assess and recommend the approval of field development plans and tail-end production and abandonment Co/ordinate all government supervisory functions related to petroleum operations Agencia Nacional do Petróleo (ANP-STP)

Overview of ANP organisation

Zones & Blocks

São Tomé and Príncipe Exploration History Pre 1970 Oil seeps on the islands have attracted interest 1970 Ball & Collins licensed onshore and shallow offshore – drilled two shallow wells near seeps 1990 Island Oil drilled two deep onshore wells near seeps, including Ubabudo-1 drilled to 1501m 1998 Mobil held 18 month Technical Assistance Agreement for whole STP offshore PGS acquired 10,000 km of 2D seismic in EEZ and 3000 sq km of 3D in JDZ

JDZ Update JDZ is a Zone established on 21 February 2001 by the Abuja Treaty, jointly controlled by the Federal Republic of Nigeria and Democratic Republic of São Tome and Principe for the purposes of the exploration for and exploitation of resources,aimed at achieving optimum commercial utilization for two countries and 2004 JDZ Licensing Round produced 4 active production sharing contracts,for Blocks1-4. The Blocks 5-6 are yet to be concluded. The recent drilling operations for the JDZ Blocks 1-4 have encountered some very good reservoir sands, many of them charged with oil and natural gas.

STP 1 st Licensing Round - Summary License Round opened on the 2 nd March 2010 The License Round will close on the 15 th September 2010 The Licensing Round is based on open tender. Applicants will be assessed based on evaluation criteria The State reserves the right to participate in petroleum operations. The participation may be directly or through an entity wholly or partly owned and controlled by the State No petroleum activity may be undertaken in the EEZ, except pursuant to and in accordance with the Petroleum Law n˚ 16/ Phase of exploration: The cost recovery ceiling shall be a maximum of 80% International Oil companies commencing activities in the country for the first time are required to either be registered or incorporated upon award of acreage and prior to the commencing of any operations

1 st Licenses Round - blocks on offer

Seismic Coverage (Multi-Client) STP99 5,925km Acquired 1999 for Mobil STP01 3,600km Acquired PGS STP02 1,500km Acquired PGS STP05 5,800km Acquired PGS

Geo-Technical Data The Geo-Technical Data package has been prepared from all the data available from within the ANP-STP archives and includes: Technical Reports Technical Presentations Well Data Petrographic Data Seismic Data Gravity & Magnetic Data Field Work Data Geochemical Data (seep analysis) GIS Project (copy supplied to data room visitors Workstation Project (SMT Kingdom)

Data Rooms Sao Tome Data Room Open now UK Data Room Open now –Key Technical Reports (Paper & pdf) –Technical Reports (pdf) –SMT Kingdom Project –Limited seismic displays Data Room Rules Apply

Technical Summary 7 offshore blocks available in round Located in deep water of hydrocarbon rich Gulf of Guinea Traps identified in region are both structural and stratigraphic Ubabudo-1 well onshore, offshore region undrilled Potential reservoirs proven onshore, seeps on and offshore Prospective acreage, currently unlicensed

STP - Play Fairways Distal toe thrusts of the Niger Delta Low relief structures, fracture zone drape and stratigraphic traps to south of toe thrust zone Major Tertiary fan systems Dominantly Cretaceous fan systems derived from Eq. Guinea margin Cretaceous structural traps and drapes over fracture zones with sediment derived from the Gabon and EG margin JDZ EEZ

Regional line (W-E Line) 5 km

Drape over tilted fault block 5 km Brightening on structure

São Tomé and Príncipe Seeps Gas escaping at Ubabudo-1 Cretaceous oil is currently seeping in to this concrete emplacement of an artesian well on São Tomé. Natural oil seeps from both islands belong to separate oil families, although similar in appearance and viscosity. –São Tomé similar to Azile and Anguille Fm sourced oils in Gabon. –Seeps in Príncipe more mature. –Slicks observed offshore Príncipe

Reservoir Good quality sands have even been deposited as far south as Sao Tome. This slide shows some outcropping quartzose sands on the island together with a well drilled through several hundred metres of sands alternated with shales and volcanics, tentatively equivalent to the Agbada Formation.

Model PSC P RODUCTION S HARING C ONTRACT Applicants should take due notice that the PSC is based on an administrative law in which a specific number of fiscal elements are non- negotiable. Exploration Period The Exploration and Appraisal period is 8 years, split in to three phases: Phase 1 – four (4) years Phase 2 – two (2) years Phase 3 – two (2) years Production Period: 20 years with possible 5 year extensions for economic depletion

Houston – Road Show Presentation Houston Presentation Thursday April 15 th –At PGS Houston Office –Invitations on the Sao Tome & PGS Stands Houston Data room available

1.INTRODUCTION 2.THE COMPETENT AUTHORITIES 3.LEGAL & FISCAL DOCUMENTS 4.APPLICATION REQUIREMENTS & FEES 5.APPLICATION DOCUMENT 6.SUBMITTING AN APPLICATION 7.BID EVALUATION CRITERIA 8.PROCEDURE FOR ASSESSMENT 9.TECHNICAL DATA AVAILABILITY & ACCESS 10.FURTHER INFORMATION All information is available from STP 1 st Licensing Round

We welcome you in São Tomé and Principe License Round closes on the 15 th September 2010