Light Oil Exploration Williston Basin
Light Oil Exploration Williston Basin Saskatchewan, Canada Corporate Presentation Winter 2014/2015 Forward Looking Statements! ! This presentation includes forward-looking statements as well as historical information. Forward-looking statements include, but are not limited to, Saturn Minerals Inc.’s continued advancement of its minerals exploration, development and production programs. When used in this presentation, the words “potential”, “anticipate”, “forecast”, “believe”, “estimate”, “expect”, “may”, “project”, “plan” and similar expressions are intended to be among the statements that identify forward-looking statements.! ! Saturn Minerals Inc. expressly warns readers not to rely on the information herein for investment or other related purposes. Accordingly, any use of this information is at their own risk and without the liability to Saturn Minerals Inc. The information contained herein is not, and under no circumstances is to be construed as either a public or a private offer or solicitation to purchase securities in the capital stock of Saturn Minerals Inc. The reader is referred to his/her professional investment advisor regarding investing or related decisions respecting the securities of Saturn Minerals Inc.! 2! The Williston Basin! The Williston Basin is a succession of sedimentary rocks which contain some of the world’s largest reserves of oil, gas and coal. Recoverable oil in the basin exceed 24 billion barrels of oil*. Thanks to the Williston, by 2011 Saskatchewan had passed Alberta in light oil production and in 2012 North Dakota passed Alaska in light oil production.! * Continental Resources **See next page! Current production is predominantly from the central and southern parts of the basin, and Benteck Energy has estimated that only 15% of the Williston has been adequately explored. Total basin production is currently near 1 million barrels a day, and projected to surpass 2 million barrels a day over the next several years**.! 3! Central & Southern Williston Basin! Light Oil Production & Projection: 2008 – 2025! Projected 2,000,000! Barrels per day*! ! * North Dakota Dept. of Mineral Resources! * North Dakota Pipeline Authority! * North Dakota Industrial Commission! * Continental Resources! Oil fields! Barrels per day! Only 15% of the basin! has been adequately! gas.! explored for oil & gas. 1,000,000! ! 800,000! ! 600,000! ! 400,000! ! 200,000! ! 0! Jan – 08 !Jan – 09 !Jan – 10 !Jan – 11 !Jan – 12 !Jan – 13 !2014 --------------------------- 2020! 4! Northern Williston Basin! Oil fields! • exploring the northern! Williston Basin! ! • 376,000 acres of oil & ! gas rights! ! • early evidence of total ! petroleum systems! ! • conventional oil ! prospects! The best wildcat opportunity in North America! 5! Management Team! Executive! President & CEO: Stan Szary, BA! ! Director: Stefan Szary, BA! ! Director: Will Elston! ! CFO: Scott Davis, CPA! ! Advisory Board: Marlene Lumberjack, LLB! Dedicated Consultants! Petroleum Geophysics: Chris Barton, P. Geo! ! Petroleum Geology: Craig Boland, P. Geo! ! Petroleum Landman: Curt Maxwell, P. Land! ! Exploration Consultant: Steve Noakes, BA! 170 years of combined experience in ! exploration, discovery, develop and projects sale/acquisition ! 6! Northern Williston Basin: Who is There! • Saturn lands are ! composed of two ! blocks! ! • lands were acquired in ! 2011 after establishing ! compelling evidence of ! a Petroleum System in ! place! ! • 376,000 total acres of ! oil & gas rights! Oil fields! 376,000 acres of Northern Williston Basin ! oil & gas rights! 7! Northern Williston Basin! A Petroleum System Established: 1935, 2008 – 2012! 2008 – 2012: Saturn Established a Petroleum System in the Northern Williston! • 1935: Anecdotal evidence of historical oil discovery in government records! ! • 2008: Saturn begins work in Northern Williston Basin! ! • 2008: Documented and photographed surface oil seeps! ! • 2009: Subsurface oil seeps encountered in shallow coal exploration drill holes ! ! • 2009 - 2011: Abundant reservoir rock encountered in coal exploration drill holes, porosity average of 28%! ! • 2011: Discovery of world class oil source rock (Type II-kerogen), up to TOC 14%, oil-prone! ! • 2012: Wide-scale aerial gravity survey confirms basement depth greater than 1000 m! ! • 2013 - 2014: Concerted 2D seismic exploration begins (following slides)! Petroleum System in Place: ! ! ! ! ! ! ! ! ! ! ! ! ! Source Rock! Migration! Reservoir Rock! Cap Rock! 8! Northern Williston Basin! A Petroleum System Established: 1935, 2008 – 2012! 1935, government record! of oil discovery! 2008: photographed surface! oil seeps! 2011, source rock, oil-prone, 14% TOC! Petroleum System in Place: 2009: subsurface oil seep in coal drill holes, confirmed by GasChromatography of the oil extract! 2012, aerial gravity shows basement exceeds 1,000 m! 2009-2011, wide scale reservoir rock, avg 28% porosity! ! Source Rock Migration Reservoir Rock Cap Rock! 9! Northern Williston Basin: A Smoking Gun! In late 2012, a wildcat well was drilled south of Saturn lands by a private group based on a single line of 2D seismic. The well penetrated the Red River (Yeoman) formation and was reported at 62 BOPD with a 44% water cut consisting of 33 API light oil.! Soon after completion the well watered out and was abandoned.! Petroleum System in Place: ! Source Rock The single 2D seismic line did have a structure but was obviously not a closed structure.! ! This is extremely promising for the presence of unknown oil pools in the northern basin, and validates the need to obtain sufficient seismic data in both strike and dip directions to confirm closure before drilling.! Migration Reservoir Rock Cap Rock! 10! Saturn: Exploration Blocks! SEPs are the largest oil & gas permits issued by the Saskatchewan government and are specifically designed to encourage oil exploration in undeveloped areas of the province! Permit Type: ! Title: ! ! ! Title Life: ! ! Current Title Year: ! Annual Rental: ! After Year 8: ! EP-72 “Bannock Creek”! 120,000 acres! !Special Exploration Permit, “SEP”! !All oil & gas discovered in any formation ! !from surface to basement! !5 years, extendable to 8! !Year 4! !$0.25 per hectare! EP-71 “Little Swan”! 250,000 acres! !Eligible for conversion to production lease ! !(can also be done at any time before)! 11! Exploration Blocks: Pay Zones! Shallowest Pay Zones! • Devonian reservoirs: Souris River and Winnipegosis Formations! • Ideal reservoir parameters! • All intervals containing reservoir quality rock contain oil stain! Middle Pay Zones! • Upper Ordovician reservoirs: Red River (Yeoman) Formation! • Excellent reservoir parameters: porosity up to 20%, thickness of 75 m! • Analogous to Red River oil pools at Tyvan, Saskatchewan (15 million barrels produced to date, 31 API)! Deepest Pay Zones! • Lower Ordovician & Cambrian reservoirs: Winnipeg and Deadwood Sandstones! • Excellent reservoir parameters: porosity up to 27%, thickness of 25 m! At least 7 known Williston Basin oil & gas reservoirs exist in the northern Williston. Each of these reservoirs are known to produce commercial quantities of oil & gas in the central and southern part of the basin. Well bores that have historically penetrated these reservoirs in the northern Williston show excellent reservoir characteristics, including oil stain in core samples.! ! Oil prospects in the northern Williston are “multi-stack” targets, offering potential oil production from multiple formations.! 12! Exploration Model! 13! Exploration Model: Migratory Traps! Migration Paths, Williston Basin! Unless otherwise discovered, oil generation in the Williston Basin occurs at the deepest parts of the basin and subsequently migrates northward until it becomes trapped. ! ! These migratory traps are Saturn’s primary target.! Saturn Lands! “Tyvan” oil pool! The exploration model for the Saturn lands is based on the “Tyvan”” Red River formations oil pool further south.! ! Initial seismic results completed by Saturn from 2012 through 2013 indicate a Tyvan oil pool-type target on Saturn lands! ! Tyvan Oil Pool! • 60 Million barrels in place! • 15 Million recoverable! • 31 API ! • 150 BOPD average rate per well ! ! Saskatchewan Phanerozoic Fluids and Petroleum Systems, Whittaker, Steve and S. Bend, B. Rostron, G. Jensen (2009), Williston Basin Petroleum Conference 2009! 14! Exploration Model: Migratory Traps! Unless otherwise discovered, oil generation in the Williston Basin occurs at the deepest parts of the basin and subsequently migrates northward until it becomes trapped. ! ! These migratory traps are Saturn’s primary target.! The exploration model for the Saturn lands is based on the “Tyvan”” Red River formations oil pool further south.! ! Initial seismic results completed by Saturn from 2012 through 2013 indicate a Tyvan oil pool-type target on Saturn lands! ! Tyvan Oil Pool! • 60 Million barrels in place! • 15 Million recoverable! • 31 API ! • 150 BOPD average rate per well ! ! Saturn Lands! “Tyvan” oil pool! 15! Bannock Creek: EP-72! 16! Bannock Creek: Partners, Profile! Partner: ! !Jaguar Resource Inc.! Ownership:! ! !Saturn: 50%! !Jaguar: 50%! Terms: ! !Working interest! Jaguar: ! ! ! ! !Murray Swanson ! !Chris Barton! !Craig Boland! !Don Wright! EP-72 “Bannock Creek”! 120,000 acres! ! • Former executive team of Reliable Energy! ! • Managed company from 0 to +1100 BPD ! production (Williston Basin) ! ! • Successful sale to Crescent Point Energy for $97 ! million (2012)! ! ! Access: ! !Year-round! 17! Bannock Creek: Seismic Completed To Date! Seismic survey on Bannock Creek has confirmed a defined fault bounded structure! Structural Highs Fault Bounded! 18! Bannock Creek: A “Tyvan” oil pool copycat! Template seismic lines through Tyvan Ordovician Red River and Winnipeg sandstones Oil Pools depict the stratigraphic and structural traps being explored by Saturn. The Yeoman Formation is trapped structurally over Basement highs with the Winnipeg sands. ! The Deadwood often times is trapped stratigraphically against the Basement highs along the flanks as pinch outs. The basement structure is controlled by deep seated faults which often reach to shallow depths up to the Prairie evaporite.! Tyvan Oil Pool! NOT SATURN LANDS! 19! Bannock Creek: A “Tyvan” oil pool copycat! Structures at Winnipeg Sandstone/Basement & Devonian Duperow/Souris River intervals with significant faulting resemble the Tyvan Oil Pool ! ! 20! Bannock Creek: A “Tyvan” oil pool copycat! Structural Features at Bannock Creek! ! Saturn 2013 Line #2 acquired on Bannock Creek Property shows Structures at Winnipeg Sandstone/ Basement and Devonian Duperow/ Souris River intervals with significant faulting which resemble the Tyvan Oil Pool.! l l 21! Bannock Creek: A “Tyvan” oil pool copycat! For illustrative purposes only! 22! Little Swan: EP-71! 23! Little Swan: Partners, Profile! Partners: ! ! !Jaguar Resource Inc.! !Bayhorse Silver Inc.! Ownership:! ! ! !Saturn: 25%! !Bayhorse: 25%! !Jaguar: 50%! Terms: !Jaguar: Working interest! !Bayhorse: Farm In! ! ! EP-71 “Little Swan”! 250,000 acres! Bayhorse Farm-In: ! !! ! • $50,000 non-refundable deposit (paid)! • 500,000 shares of Bayhorse (pending TSXV approval)! • $150,000 1st payment (pending TSXV approval)! • $200,000 2nd payment (90 days after TSXV approval)! • $200,000 3rd payment (180 days after TSXV approval)! ! • $230,000 in seismic survey cost (by Jan 30, 2015)! ! Following all above payments, Bayhorse’s 25% will be a working interest.! Access: ! !Winter only! 24! gOTgit e Little Swan: Seismic Completed To Date! a Te aer Wa 25! Economic Well Model! 26 ! Economic Well Model! * Royalty is 2.5% on first 100,600 barrels resulting in fast payback! 27! First Nations! 28! First Nations! Since 2009, Saturn has worked in tandem with the Saulteaux and Cree First Nations of eastern Saskatchewan and western Manitoba to establish a healthy working relationship and ongoing dialogue related to resource development in their Traditional Territories.! A direct result of this approach has been the co-founding of Inowending Exploration & Development Corp., a private company jointly-owned by Saturn and a consortium of First Nations bands from the project area to facilitate First Nation participation in any exploration success.! Inowending provides a platform through which success in exploration can be translated into an existing positive dialogue to ensure that First Nations interests are incorporated from the very beginning of each project.! 29! Additional Assets! Since 2011 Saturn has also made three significant coal discoveries in its project area, including an 89 metre thick continuous coal seam beginning at 12 metres depth! Coal quality ranges up to 10,300 BTU! and is approximately 8 km from active two separate rail lines! visit www.saturnminerals.com for more info! 30! Corporate Structure! Share Capital Structure! Market capitalization:! $19.1 million! Total shares outstanding:! 116.4 million! Total warrants outstanding:! 13.3 million! Total options outstanding:! 13.1 million! Debt:! nil! Basic! Fully! Diluted! Insiders & Management:! 8.0%! 15.4%! EU Institutional:! 17.0%! 23.0%! NA Institutional:! 3.0%! 6.0%! Retail (NA & EU) :! 72.0%! 55.6%! Ownership! SMI vs. TSX Venture (1 year)! Insiders & Management! NA Retail! EU Institutional! NA Institutional! Notes! Information as of Oct 31, 2014! Institutional & Regional Ownership based on internal estimates! EU Retail! 31! www.saturnminerals.com! ! Suite 312 – 744 West Hastings Street! Vancouver, BC V6K 1A5! ! +1 604 685 6989! 32!
© Copyright 2024