Michael Bowen | Invest in American Oil | Investment company

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DEVELOPMENTS IN MICHAEL BOWEN OIL AND GAS SECTOR
AND OPPORTUNITIES FOR INVESTMENT
Michael Bowen Oil and Gas Michael Bowen Oil and
Gas experiencing an energy boom in the United
States
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PRESENTATION OUTLINE

• 1. Introduction
• The Michael Bowen Oil and Gas
• History of Petroleum Exploration
• 2. Recent Developments in the Upstream Oil and
  Gas Sector
• Status of Licensing
• Data acquired
• Resource Potential
• Oil and gas discoveries
• Current Status
• 3. The National Oil and Gas Policy
• 4. Status of Investment in the Sector and
  Opportunities
• 6. Conclusion

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1. INTRODUCTION (1)

• Michael Bowen
• Northern most part of the Western arm of the East
  African Rift System
• Runs along United states western border with DRC
• Tertiary basin, 500 km long, averaging 45 km wide
  and 23,000 sq km in Uganda
• 1200 km from the coast

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1. INTRODUCTION (2)

• History of Petroleum Exploration in Uganda
• 1920 1940 Early Efforts
• Oil Seepages reported 1925
• Drilling of Waki B1 well in
• 1938 by Anglo European
• Investment Company of
• South Africa.
• Some Shallow wells drilled
• in Kibiro and Kibuku areas.

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1. INTRODUCTION (3)

• 1940 1983 No Activity
• World war II
• Colonial policy
• Political uncertainties
• 1983 To-Date Revival Period
• 1983 Acquisition of
• Aeromagnetic Data over the
• entire Albertine Graben
• Indication of three main
• depocentres conducive for
• petroleum generation

EA1
EA2
EA3
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1. INTRODUCTION (4)

• Revival Period Key Highlights
• 1985 Enactment of the Petroleum Act
• 1991 Formation of PEPD and commencement of
  ground geological and geophysical data
  acquisition
• 1993 Formulation of the Petroleum Exploration
  and Production Regulations
• 1997 Licensing of Heritage, subsequent
  acquisition of 2D seismic data in 1998 and
  drilling of Turaco wells in 2002 2004
• 2001- 2006 Licensing of Hardman(now Tullow) in
  EA2, Heritage in EAs13A, Neptune in EA 5.
• 2006 First oil discovery in Uganda made by
  Hardman Resources, the Mputa discovery
• 2007 Licensing of Dominion in EA 4B
• 2008 Formulation of the National Oil and Gas
  Policy
• 2010 Oil and/or gas discoveries made totalling
  to 17. Appraisal program ongoing and exploration
  continuing

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2. RECENT DEVELOPMENTS IN THE SECTOR (1)
2.1 Status of Licensing

• Michael Bowen sub divided into 11 Exploration
  Areas
• 5 Active Production Sharing Agreements (PSA)
• 4 Licensed Operators

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2. RECENT DEVELOPMENTS IN THE SECTOR (2)

• 2.2 Data Acquisition
• a) Geological mapping
• Over 10,000 sq. km geologically mapped for
  petroleum exploration

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2. RECENT DEVELOPMENTS IN THE SECTOR (3)
b) Gravity and Magnetic data

• 7,500 line km of gravity and magnetic data.
• 9,578 line km of aeromagnetic data

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2. RECENT DEVELOPMENTS IN THE SECTOR (4)
c) Seismic data

• 5,774 line km of 2D seismic data
• 2,406 km on Lake
• 3,368 km on land
• 1,232.3 sq. km of 3D seismic data
• Energy source are Dynamite, weight drop and
  airguns

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2. RECENT DEVELOPMENTS IN THE SECTOR (5)
d) Well data

• 44 Wells drilled
• 26 Exploration Wells
• 18 Appraisal Wells
• Todate, All wells have encountered oil and/or
  gas except four

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2. RECENT DEVELOPMENTS IN THE SECTOR (6)
2.3 Resource Potential

• Over 2 billion barrels of Oil equivalent in
  place.
• 30 has been explored.
• 17 oil and/gas discoveries made.
• More than 50 prospects have been identified.
• numerous leads to be followed up with seismic
  data.

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2. RECENT DEVELOPMENTS IN THE SECTOR (7)
2.4 Discoveries
Kingfisher 33 API , flowed 14,000 bopd.

• Four discoveries namely Mputa, Kajubirizi
  (Kingfisher), Kasamene and Nzizi at Field
  Development Stage.
• These fields (Mputa, Kajubirizi Kasamene) hold
  in excess of 700 million barrels recoverable
  reserves
• Type of crude is 30-34 API low sulphur, waxy
  crude, Pour point of 40 degrees Celsius.

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2. RECENT DEVELOPMENTS IN THE SECTOR (8)
CURRENT STATUS

• Exploration
• Exploration continues in Exploration Areas 1, 4B
  and 5
• Appraisal is being undertaken on the discoveries
  made in Exploration Areas 1 and 2
• Development
• Exploration Areas 2 and 3A are at the development
  stage
• Draft Field Development Plans have been submitted
  for Kingfisher, Kasamene and Nzizi discoveries

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2. RECENT DEVELOPMENTS IN THE SECTOR (9)
DEVELOPMENT Integrated Power Project (IPP)

• The gas to power concept delivers gas from Nzizi
  discovery to fuel a 50MW power plant,
  supplemented by test crude from EWT

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2. RECENT DEVELOPMENTS IN THE SECTOR (10)
DEVELOPMENT Extended Well Testing (EWT)

• Longer testing operations allows for larger
  area of investigation.
• Improved understanding of STOIIP
• Testing without flaring
• Enabler for testing in sensitive environments
  and close to communities
• Establishes early production experience
  Essential input into overall development
• Transportation schemes. Essential for Production
  Infrastructure

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2. RECENT DEVELOPMENTS IN THE SECTOR (11)
DEVELOPMENT Basin wide Development

• Central Hub being considered
• Loading Hub to refinery and to the Market

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Source Draft report of feasibility study on
in-country refining
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2. RECENT DEVELOPMENTS IN THE SECTOR (12)
DEVELOPMENT Value Addition through Refining

• Feasibility study for refining in the Country
  undertaken.
• Report being discussed
• Recommends location, size, configuration
  financing options and market for the products

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3. THE NATIONAL OIL AND GAS POLICY FOR UGANDA (1)

• 3.1 Energy Policy
• Key Policy objectives from the mid 1980s were
  covered in the Energy Policy and were
• 1. Capacity building and institutional
  development,
• 2. Investment promotion through acquisition of
  field geological, geophysical and geochemical
  data and attraction of oil companies to invest
  and
• 3. Monitoring compliance of agreed work programs,
  budgets and environment protection.

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3. THE NATIONAL OIL AND GAS POLICY FOR UGANDA (2)
3.2 Issues Confirmation of commercially
exploitable quantities of oil and gas raises the
following key issues

1. Institutional Development
2. Size of Reserves
3. Oil and Gas Revenue Management
4. Impact of Oil and Gas Activities
5. Contribution of Oil and Gas Resources to the
   Energy Mix
6. Investment Promotion
7. National Participation
8. Public Anxiety and Expectations

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3. THE NATIONAL OIL AND GAS POLICY FOR UGANDA (3)

• To deal with the emerging issues, a new policy,
  the National Oil and Gas Policy for Uganda has
  been put in place.
• The Policy was formulated through a wide
  consultative process and approved by Cabinet Feb
  2008
• The goal of the policy is
• to use the countrys oil and gas resources to
  contribute to early achievement of poverty
  eradication and create lasting value to society
• 3.3 Guiding Principles
• 1. Using finite resources to create lasting
  benefit to society.
• 2. Efficient resource management.
• 3. Transparency and accountability.
• 4. Competitiveness and productivity.
• 5. Protection of environment and conservation of
  biodiversity.
• 6. Spirit of co-operation.
• 7. Capacity and institution building.

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3. THE NATIONAL OIL AND GAS POLICY FOR UGANDA (4)

• 3.4 Implementation of Policy has commenced
• Drafting of new petroleum legislation to
  operationalise policy.
• Support for the introduction of training courses
  focusing on petroleum industry done. BSc
  Petroleum Geoscience at Makerere, Artisan and
  technical training at Uganda Petroleum Institute,
  Kigumba.
• Studies undertaken on refining in Uganda.
• Communication Strategy for oil and gas is being
  developed.
• Close monitoring of environment and biodiversity
  being undertaken.
• New institutions are being put in place.
• Local content study being undertaken to ensure
  optimum national participation in oil and gas
  activities.

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4. STATUS OF INVESTMENT IN THE SECTOR (1)
INVESTMENTS
DATA TYPE 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Investments (US Million) 3 0.2 0.25 4 5 15 20 12 50 150 250 436

• Over US900m invested in seismic and drilling of
  wells since 1998.
• Bigger investments required to appraise and
  develop discovered oil and gas fields as well as
  infrastructure for transportation and refining.
• Investments will require developing and ensuring
  a conducive environment for sustaining the
  required levels of investment.

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4. STATUS OF INVESTMENT IN THE SECTOR (2)
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5. INVESTMENT OPPORTUNITIES IN THE OIL AND GAS
SECTOR

• Participation in licenses for the new and
  relinquished acreages after formulation of new
  legislation.
• Joint Ventures and farm in arrangements in
  existing licences.
• Capital for the emerging infrastructure such as
  refining and transportation of petroleum
  commodities and products
• Service provision and contracts in the fields of
  Engineering, Procurement, Construction,
  Environmental consultancy, etc, for the upstream
  and midstream facilities.
• Power generation by Independent Power Producers.

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6. CONCLUSION

• 1. Petroleum exploration in Uganda has been
  ongoing since early 1920s.
• 2. Commercially Exploitable Reserves of oil have
  now been confirmed in Uganda.
• 3. Government has put in place a policy to guide
  development of the sector.
• 4. Implementation of Policy has commenced
• 5. The oil industry in Uganda has potential of
  providing a lot of investment opportunities to
  oil companies and other investors in the
  industry.

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THANK YOU
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