1. www.namcor.com.na NAMIBIA – CURRENT DEVELOPMENTS Roger Swart NAMCOR (Pty) Ltd Oil Africa 2006 Cape Town 23 rd March 2006

2. www.namcor.com.na Presentation outline Kudu gas to power project Other current exploration players - Hunt Oil - BHP Billiton - Neptune Petroleum - Greendale Universal Holdings - First African Oil Corporation/Circle Oil - INA Industrija Nafte - Block 1711 Conclusion

3. www.namcor.com.na Water depth 170m Reservoir depth 4400m On Orange Banks Reservoir – interbedded with volcanic rocks Kudu licence area Kudu Production Licence 001

4. www.namcor.com.na Kudu gas field history Discovery 1974 (Chevron/Regent/Soekor) Exploration License award: 6 May 1993 (Shell, EA, ) Petroleum Field declared: 21 July 1997 Production License awarded on 31 August 2005 Tullow Oil (90%), Namcor (10%) 2 wells planned for 2007 Kudu

5. www.namcor.com.na Kudu – current concept

6. www.namcor.com.na Construction challenges Weather swell offshore winds Remote location Dynamic surf zone Coastal fog

7. www.namcor.com.na Swell Typical conditions February-March 2006, the so-called “weather window”

8. www.namcor.com.na Winds Effect - Onshore terminal and power plant Seasonal – winter But… SW is the dominant wind direction

9. www.namcor.com.na Remote location Kudu Windhoek. 170 km to Oranjemund 800 km to Windhoek 800 km to Cape Town Diamond coast

10. www.namcor.com.na Dynamic surf zone Problem for pipe laying

11. www.namcor.com.na Coastal fog Satellite image of coastal fog Corrosion an issue High sulphur content

12. www.namcor.com.na Licensed acreage at end of 2005

13. www.namcor.com.na Hunt Oil Company Large sized US Independent Converted reconnaissance licence to exploration licence on 23 August 2005 4 year licence in Lüderitz basin Namcor holds a 10% carried interest

14. www.namcor.com.na BHP Billiton Awarded 2 exploration licences on 23 August 2005 South of Kudu licence (Southern block) and block west of Kudu licence (Northern block) Parts of northern block overlapping with Kudu Production Area First stratigraphic delineation of acreage in Namibia Provides win-win solution 3D seismic campaign underway

15. www.namcor.com.na Neptune Petroleum 2 year exploration licence awarded 23 August 2005 Currently interpreting seismic

16. www.namcor.com.na Greendale Universal Holdings Received 2 exploration licences on 27 October 2005 (17 166 km²) Blocks 1811 A&B, 2714B Seismic interpretation phase

17. www.namcor.com.na Circle Oil First post-independence onshore licence (Owambo basin) Largest acreage ever (138 963 km²) Full exploration license on 17 November 2005 Namcor cosignatory with 10% stake Well commitment

18. www.namcor.com.na INA Industrija Nafte Croatian NOC Exploration license on 23 November 2005 Second onshore licence to be awarded

19. www.namcor.com.na Block 1711 Block relinquished by Vanco Acreage with highest potential so far Received several applications for licence Finalising negotiations Local BEE participation included Namcor to take up stake

20. www.namcor.com.na Conclusion Kudu development imminent Namibia set to join petroleum producers club Other exciting developments