1. CGX ENERGY INC.
Waking the Sleeping Giants
OYL.U

2. USGS Predict 6 Giant Oilfields
USGS estimate billion barrels oil tcf gas
ranked 2nd as under explored basin
estimate 117 oil fields
24 elephants > 100 million barrels
of which 6 are giants > 500 million barrels
Guyana/Suriname Basin
USGS supports potential of many large reservoirs in this basin
Venezuela
Guyana
Suriname

3. Mean Undiscovered Conventional Oil
Source:
United States Geological Service World Petroleum Supply 2000

4. Regional Activity Trinidad 24 tcf reserves Deltana Platform
tcf potential
5 new concessions
$41 mm bonuses
Tambaredjo
OOIP 900 billion barrels
174 billion barrels recoverable
Replace with more up-to-date map.

5. Feb 2003 Visit to Suriname

6. Land Rig - Tambaredjo
14,000 bopd
625 wells
Drilling 75 wells per year

7. Our Concessions 6.6 mm acres gross 4.5 mm acres net
Corentyne Block (100%)
Offshore
Eagle
Wishbone
Annex
Onshore
Georgetown Block (25%)
Replace with more up-to-date map.

8. Area of Overlapping Border Claims
Guyana claims a border of N33E
Suriname claims a border of N10E
Inability to resolve differences has frozen exploration in the basin

9. Bilateral Negotiations not Progressing
Impediments to a Bilateral Solution
“strength of feeling by the respective populations
the firm and apparently intractable positions adopted by both sides
the history of past efforts”
“Easier for the people of both countries to accept settlement terms, which are arrived at by processes and procedures, regarded as independent and/or which employ a judicial approach” (Rashleigh Jackson)

10. A Logical Resolution For maritime space For land boundary
both countries are signatories to and have ratified the UN Law of the Sea Convention
Where complications such as islands do not exist, this process can be fairly expedient
For land boundary
the OAS has a mechanism for helping member states to solve border problems

11. Regional Benefit of Awakening Giant 1 Giant – Would Double Guyana’s GDP
Assumptions
500 million bbls
50 million bbls/year
US$ 20 per bbl
Source: Bank of Guyana to end 1999

12. 1 Giant – Would Double Gov’t Revenue
Year 1 of production gov’t revenue ~ US$ 100 million
Year 5 of production gov’t revenue ~ US$ 400 million
Does not include tax on workers and services

13. Guyana’s Fiscal Regime Promotes Exploration
Source:
Int’l Petroleum Encyclopedia 1998
Guyana: APEX Eng Sept 1998

14. Work Commitment from June 1998

15. Our Shareholders OYL.U on TSXV 52 week hi US$.40 low US$0..145
shares o/s 48.6 million, f/d 54.2 million
over 5000 shareholders
institutions in UK, USA, France, Germany, Canada
raised US $16 million
Sold Canadian properties for US $0.6 mm
current working capital US $1.1 million

17. Technical Risk– Exploring for Turbidite Giants
Source rock / timing – 95%
Seal – 75%
Reservoir – 50%
Structure – 75%
Oil vs gas – 75%
Overall Probability of Success – 20%

18. Source Rock & Timing – 95% Canje Formation 2-6% TOC
> 300 metres thick
mature – 95% in oil window
oil in Tambaredjo typed to Canje Source
equivalent age to La Luna source rock in Venezuela

19. Seal – 75% Abary #1 6000’ shale seal 23‘ turbidite sand
mud kick at 2000 bpd
34.5o API oil in mud
Shell drilled in 1974
Eagle and Wishbone
seismic tied to Abary
turbidite sand thickness greater than 600 feet
This slide shows the grid of data over the eagle and wishbone features that we are currently processing.

20. Reservoir – 50% main risk is sand quality
over 5000’ onshelf sand in Horseshoe #1;
Oligocene turbidite fans: Eagle and Wishbone;
Turonian source rock: mature Canje formation over 300’ thick
Miocene seal: over 6000’ of shale in Abary #1

21. Structure – 75%
Top of fan at Eagle and Wishbone marked by coincident amplitude and AVO anomalies;
Flat spot is interpreted as oil-water contact;
Draping in Miocene shales is observable
Eagle anomaly is about 13 km in width and Wishbone about 7 km;
Eagle defined on 8 other strike lines at 2 km intervals.
Eagle
Wishbone

22. Oil vs Gas – 75% Abary #1 tested oil
buoyancy considerations over 1700 feet of structure
Amplitude and AVO anomalies terminate simultaneously at interpreted oil-water contact and at updip pinchout on paleo-shelf;
Eagle anomaly is over 15 km in length.

23. Turbidite Fan Targets – 20% Probability of Success
Geological model equivalent to Campos Basin, Brazil
Similar age to turbidite reservoirs in East Venezuela Basin and Trinidad
“Giant” and “near-giant” size

24. Annex Lead Map Toe Thrust Line 31 Amplitude Lead with Flat event
Two types of Anomalies noted
toe thrust
amplitude anomaly age uncleaar due to different correlations
Lower Miocene to upper most Cretaceous??
Area is located along way from the mature area at center of basin
Existing wells tested heavy oil from upper Tertiary in Berbice# 2 on growth fault feature
Risk is high for reservoir maturity/ migration
Possible development of reservoir for faulted out section in both Essequibo #1 and Essequibo #2 due to normal growth faulting
Long distance migration required

25. Line 31 Toe Thrust Lead 6 km Deep water for toe thrust on CGX Annex
Down slope slumping evident
Reservoir and migration Chief risks
Good Seal
Maturity of nrarby source rockd=s not certain so long distance migration
Required
Other toe thrust possible as seismic coverage available

26. Annex Toe Thrust Detail
High amplitude package
On depth Flat Reflections
Annex Line 31 toe thrust with colour detail

27. Line 4 Amplitude Lead
Line 25 intersection
8 Km

28. Annex Corentyne Block Acquired 3800 Km of Deminex data
Reprocess and interpret
Wide line spacing
Identified Leads need definition
20 km
Oil show
Well Location

29. Dip Line 25 Amplitude Lead
Flat Reflection
Line 4 Intersection
10 km

30. Detail on Flat Reflection Line 25

31. Onshore Block

32. Onshore Block with Staatsolie Nickerie Geochemical survey
1 Km grid to isolate anomalies using Gore technology by Suriname
Currently the second phase has been surveyed and the results are being reviewed. Indications are that the anomalies contact a lighter crude signature than Tambaredjo.
Deeper Basin depths to the reservoir at Nickerie than at Paramaribo
Would support rhis conclusion (less degardation of the crude)
Did not survey near coast area eo additional anomalies may appear on the Nickerie block

33. Onshore Block Geochemical and Oil /Gas Shows
Map shows the CGX onshore Block with the anomalies from the published Suriname features. Two wells on the block has indicated oil and gas shows the Rosehall and the Skelton .
Propsed geocehmical survey could be done in October and November of for a cost of 100,000 to 300,000 dollars USD
Tactics use 3 man crews with supervision by local and contractor.
Set up headquarters at new amsterdam
Samples must be dried and stored each day down load GPS readings
Ship samples each week
Equipment shovel and GPS with digital storage
Purchase GPS
Contractor supplies sample bags and containers
Collect samples every 250 m along raodways and access
Analyse every second sample initially
Follow up with seismic and drilling
Onshore Oil Fairway

34. Geochemical Surveys GMT, Gore Micro seepage vs Seepage
Quantification and maturity of source
Aeromag, gravity
Phase 1 Capital 0.5 MM$ US explore using various structure
Mapping of geochemical will show seepages and microseepage
Microseepage is a result of the vertical migration of hydrocarbons associated
With hydrocarbons trapped at depth with a water drive. It is less effective when associated with heavy oils. The success that statts olie has achieved mitigates that risk
We will be searching for microbes tat live off the butane gas
If successful we will follow up with Sorbed gas samples which we intend to collect at the same time
Seeepages are associated with migrating hydrocarbons that breach to surface and are typically associated with tar sands and stressed vegetation. These have significant vlumes of ol and gas at surface and are found associated with many basins in the world

35. Seismic, then drilling
Use geochemical and potential fields to define seismic targets and and follow up with drilling
Reduce amount and costs for seismic
and focus on drill targets to reduce cycle

36. CGX Energy Inc. For more information Please visit our website