Annual General Meeting Presentation. Continental Hotel Oslo, Norway

Transcription

1 Annual General Meeting Presentation Continental Hotel Oslo, Norway September 17, 2010

2 Is now New Oslo Børs Trading Symbol WRL 2

3 Who We Are We are senior professionals from the upsteam, midstream, and downstream oil & gas industry; We are major shareholders in OUR company; We have proven experience monetising stranded gas in challenging parts of the world; We are committed to proving the true value of the Company s assets; We have a tangible plan to monetise the Company s gas and grow the value of the Company; and We have a vision for East Africa that looks a lot like Qatar in the early 1990 s. 3

4 Chairman & CEO, Robert Bob McBean Mechanical Engineer with +40 years experience in the oil & gas industry Founder, co-developer, and former Managing Director of Qatar Fuels Additives Company ( QAFAC ) Founder, co-developer, and former Managing Director of Dubai Gas Company ( DUGAS ) Non Executive Chairman of East Africa focused, Black Marlin Energy Limited 4

5 Deputy Chairman, John W.S. Bentley Holds a degree in Metallurgy from Brunel University +35 years of Upstream Oil & Gas Company executive and board management Co-founder & former CEO of Energy Africa Limited Non ex Chairman of Faroe Petroleum, CDS Oil & Gas Group plc and Scotgold Resources Ltd, and a non-executive director of Resaca Exploitation Inc. and Kea Petroleum plc 5

6 Non Executive Director, Neil Kelly MSc in Mechanical Engineering with +40 years experience in the oil & gas industry Former Managing Director of ExxonMobil and Qatargas Ras Laffan LNG Company ( RASGAS ) in Qatar Former Director of Mobil Oil s PT Arun LNG Company in Indonesia Former Director of Production of the giant Arun Gas Field in Indonesia 6

7 Non Executive Director, Issa Baluch MBA with +37 years experience in the African shipping & logistics industry Founder and former Chairman & CEO of Dubai based, Swift Freight International Developer of the multi modal sea/air combined transport freight business Author, speaker, philanthropist, and investor 7

8 Non Executive Director, Michael Jansa Managing Director and Founding Partner of Washington D.C.-based Emerging Capital Partners (ECP) ECP is a leading private equity manager with US$1.8 billion under management and focused exclusively on Africa Former Vice President of GE Capital s Structured Finance Group Also serves as Non-executive Director of Notore (Nigeria) and Ocean and Oil (Nigeria) 8

9 CFO & Director, Cameron Barton CMA with 31 years of accounting and finance experience Former CEO of Artumas Group Responsible for Artumas financial and operational restructuring Former Vice President of Centrica s Western Canadian Region Former Vice President of Alberta s largest electrical transmission owner, AltaLink L.P. 9

10 Reasons for Our Investment & Company Combination Ownership stake in a proven, producing gas field Ownership of 27km of gas pipeline, a gas processing plant, and an 18MW gas-toelectricity power plant Company invested over US$300 million to bring the gas field on line and to build the midstream and downstream infrastructure Company owns a net US$150 million in the Mnazi Bay cost recovery pool Company carried (paid for) and is owed US$30 million from the Tanzanian government Ownership in Mozambique exploration acreage operated by Anadarko Petroleum, one of the world s leading independent oil companies Royalty interest in the deepwater offshore Rovuma Block and the Windjammer gas discovery with no financial obligations Clean, dry gas on tidewater Proven ability to monetise gas with a world-scale petrochemicals project Government understands and agrees with our need to build the project inside the Production Sharing Agreement (PSA) 10

11 Overview of Downstream Development Project We are studying the optimal way to monetise the Mnazi Bay gas We have mandated ChemSystems in London to undertake a scoping review of the site, port, existing infrastructure, gas reservoir, and other variables as a first step of the pre-feasibility study Chemsystems report will be incorporated with a process engineering report to be provided by others Together these two reports will make the pre-feasibility study and that study will be analysed by the concession partners The partners will then agree to fund a full feasibility study, which includes mandating a financial advisor to arrange project financing 11

12 Project Scope Example Greenfield gas gathering and processing Greenfield methanol and ammonia/urea production facilities Production capacity of: a. 1,260,000 mt/year methanol b. 800,000 mt/year urea c. 305,000 mt/year ammonia Operating days 345 days/year Design Capacity a. Methanol 3,652 tonnes/day b. Urea 2,318 tonnes/day c. Ammonia 884 tonnes/day 12

13 Advantages of Gas Monetisation Project Time to production is relatively short, i.e. 40 months from project financing release Daily gas throughput for world-scale project is 140mm standard cubic feet per day Market prices for finished products yields an average of US$10/mscf for natural gas sales Building the project inside the PSA allows for cost recovery and duty free import of construction materials and services Generates carbon credits There is a large component of export credit financing, which helps lower the risk for traditional lenders Offtake of finished products is guaranteed by take or pay contracts Finished product sales are offshore and in U.S. dollar, euro, or pounds Aligns the interests of all project partners including the government Generates significant number s of construction jobs and high skilled permanent jobs 13

14 Building Investor Confidence US$12.75 million cash injection Investors are strategic: a. Board members and executives made large personal investments b. Personal investments from investment bankers and private equity fund managers c. Major investment from one of the world s largest energy trading and investment companies d. Numerous investors have businesses and key relationships in our core market Restructured the Board and Management with additional hires to be announced Moved headquarters to Dar es Salaam Realising value for existing Canadian tax pools Establishing relationships with industry analysts Commissioning of the downstream development pre-feasibility study 14

15 Appendix Asset Overview

16 Assets Tanzania Upstream Mnazi Bay PSA, Wentworth 25.4% - Partners; M&P (Operator), Cove, TPDC - Two field discoveries, one producing - Resources; P mean 759 BCF Tanzania Downstream Mtwara Energy Project, Wentworth (100% & Operator) - Integrated gas to power project - Power generation commissioned and operational - Distribution system lease pending financing Mozambique Upstream Offshore Area 1, Wentworth overriding royalty 0.42% - Partners: Anadarko (Operator), Mitsui, Bharat, Videocon, Cove, ENH - 4 deep water wells to be drilled (fourth underway, Windjammer discovery announced) Onshore Rovuma, Artumas 11.59% - Partners; Anadarko (Operator), M&P, ENH, Cove - First well drilled 2009, evaluation underway 16 16

17 Mtwara Energy Project (MEP) - Status Mtwara Energy Project (MEP) is an integrated gas to power project (Artumas 87%, FMO 13%) 15 year Licensing Exemption Granted by EWURA Generation Station (18MWs) 100% owned and operated by Artumas provides base load gas demand and facilitates rural electrification (currently consuming 2-3 MMscf per day) Tariff approval received will provide sufficient cash to recover costs and earn a profit Transmission and Distribution Facilities owned by TANESCO may be leased to Artumas for 20 years US$ $13.5 million investment in transmission and distribution assets by GOT will accelerate demand growth (may be leased) Tariff approval received will provide sufficient cash to recover costs and earn a profit but only if the Government also provides Tariff Equalisation Funds and Grant Funds Necessary bank financing will rely on such government support Continuing investment decision is required in Q

18 Upstream Tanzania Mnazi Bay PSA 756 km 2 Artumas 25.4% Reasonable seismic coverage Two proven gas discoveries Multiple play types identified Reinterpretation completed by M&P New prospects expected to be developed New resource estimates being verified by independent reservoir engineers 3D seismic acquisition and processing being planned for 2011 * New exploration well expected in 2011 * * Artumas carried Historical Interpretation 18 18

19 Reserves and Requirement Historic View Commercialization Option & Gas Demand Gross Cum. Gas Load *Disc. Available Resources (Bcf) + **Additional Expl. Upside (Bcf) MEP Demand 84 Bcf Larger Scale Generation 353 Bcf 84 Bcf 437 Bcf *P **P *Pmean 759 *P Methanol/ Fertilizer 700 Bcf 1,137 Bcf **Pmean 1,256 Sources: * RPS-APA (APA Petroleum Engineering Inc.) October 15, 2007 Commercially recoverable resource; just for Mnazi Bay & Msimbati fields only. ** Source: Rose & Associates 2008 Upside potential for rest of the Concession Excluding Mnazi bay & Msimbati Fields; Ultimate potential for the Mnazi Bay Concession could be greater than 4.0 Tcf. **P10 2,595 19

20 Upstream Tanzania Summary and Work Program M&P has recently re-interpretation of resource potential of the concession Wentworth has commissioned RPS/APA to update resource report Pre-feasibility study for gas commercialization proceeding No remaining commitments to government Partners commitment to carry Wentworth Acquire and process 200 km 2 3D seismic Drill one exploration well Option to be carried through two appraisal wells (5% transfer of interest for each) Mnazi Bay gas commercialisation plans Once prefeasibility plans are complete expect to continued development drilling MB3 tie in approved and will be completed in Q4 20

21 Upstream Opportunities Mozambique Offshore Offshore Rovuma EPPC 10,500 km 2 Artumas 0.42% ORRI 2D & 3D seismic data available Multiple play types identified 4 deep water exploration drilling programme commenced in late 2009 Windjammer-1 was the first location followed by Collier and Ironclad Windjammer gas discovery announced by Anadarko on 17 th February 480 ft gas pay Gross column >1,200 ft High quality reservoir sands 21 21

22 Offshore Mozambique Work Program Intensive drilling campaign (7 well commitment) now in progress First well spudded in December 2009 Fourth deep water well is now spudding Deepwater results will be evaluated before proceeding to 3 planned shallow water wells or extension with Deep Water program Wentworth has an overriding interest and no further cash calls 22 22

23 Onshore Mozambique Onshore Rovuma EPPC 15,000 km 2 Artumas 11.9% W.I. Moderate seismic grid Multiple play types identified Mecupa-1 well drilled in 2009 Not commercially successful Confirmed play elements Results being interpreted Remaining potential being reassessed Current phase of exploration ends in August 2010 licence renewal expected Further drilling anticipated in 2011/12 Mecupa

24 Onshore Mozambique - Work Program Mecupa-1 well evaluation and licence renewal Assessment of remaining prospectivity Identifying the optimum target for a further exploration well Relinquishment, renewal and commitment anticipated in December 2010 Anticipating 2 well exploration program in 2011 Wentworth projected share of drilling costs - USD $7.5m 24 24