Transcript Company Overview - Infinity Energy Resources | IFNY Oil

Infinity Energy Resources, Inc.
"IFNY"
INFINITY
ENERGY
RESOURCES,
INC.
NICARAGUA
EXPLORATION
PROJECT
Blocks Perlas and Tyra
Forward-Looking Statement
This Presentation of Infinity Energy Resources, Inc. (the "Company") contains forwardlooking statements that may include the words "believes," "expects," "anticipates," "intends,"
"estimates," "plans," "projections" or other expressions that are predictions of or indicate future
events. These forward-looking statements inherently involve risks and uncertainties that could
cause actual results to differ materially from such statements. A wide variety of factors that may
cause the actual results to differ from these statements include, but are not limited to, the
following: the Company's ability to raise sufficient capital and/or obtain a partner on acceptable
terms, or at all, to pursue exploration and development activities regarding its Nicaraguan
Concessions; the success of its efforts to acquire and process seismic data relating to such
Concessions; the quantity of hydrocarbons beneath the Concession blocks; the costs of drilling
and completion of any wells; risks that drilling wells will not result in commercially viable oil and
national gas production; operating risks, delays and problems; the availability of services on
acceptable terms; changes in the prices of oil and gas; unexpected negative geological
variances; governmental uncertainties in Nicaragua; actions by creditors with respect to debt
obligations, liquidity and capital requirements; competition from larger, more established
companies with far greater economic and human resources; the effect of changing economic
conditions; changes in U.S. government regulations, tax rates and similar matters; and other
risks described in its Annual Report on Form 10-K and periodic reports filed with the Securities
and Exchange Commission. The Company does not undertake to publicly update or revise
forward-looking statements, whether as a result of new information, future events or otherwise.
This Presentation is neither an offer to sell or a solicitation of an offer to buy any securities
of the Company.
Infinity Energy Resources, Inc.
NICARAGUA EXPLORATION PROJECT
Blocks Perlas and Tyra
Multi-Billion Barrel Prospect
Company Overview
• Infinity Energy Resources, Inc. (IFNY: OTCQB) is a natural
resources exploration and development company with oil and gas
concessions covering 1.4 million acres offshore Nicaragua in the
Caribbean Sea.
• Initial studies have estimated reserves in multi-billion barrel range.
• The Company’s concessions are located adjacent to Noble
Energy’s (NYSE: NBL) 1.8 million-acre offshore concessions.
• 25,406,775 Common Shares, 3,399,500 Options (WA $4.14) and
2,277,710 Warrants @ weighted average of $2.06 Outstanding.
• Fully diluted 31.0 million shares
• Approx. $35 million Market Cap
• Completed environmental assessments, initiating additional 2-D
and 3D seismic program and currently talking to potential financial
and industry partners.
• Estimate 1st Company well to be drilled in late 2014 or early 2015.
Nicaraguan Concession
Highlights
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Completed environmental studies, reprocessed 2-D seismic data and
developed geological mapping. Total expenditure to date $5.5 mil.
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A new 2D & 3D seismic program has begun and is estimated to be
completed in 2nd Quarter.
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4 large seismically defined closures on 120 mile long structure covering 547
square miles
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Estimated Resource potential from Eocene only: P50 4.6 bn barrels
Potential cretaceous not quantified yet but could be larger than Eocene.
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Great fiscal terms from Nicaraguan government.
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Easily managed work commitment.
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Shallow water.
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Independent geologists who analyzed the data and mapped the concession
are Renato Bertani, Luciano Chas, Jeff Roberts and Bob Fleming.
Renato T Bertani - Geologist
• Renato T. Bertani holds a PH. D. in Sedimentary Geology and Geochemistry
from the University of Illinois, USA.
• Over 33 years of international experience in exploration and production
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projects, particularly in South America, West Africa, UK, and the USA Gulf of
Mexico.
Served for 31 years in various technical and high level managerial positions
with Petrobras, the Brazilian state oil company, including:
• President of Petrobras America, Inc. (2001-2006)
• Managing Director of Petrobras UK (1998-2001)
• Director of International E&P activities for the Petrobras Group (1992-1997)
Involved in several major oil and gas discoveries, including:
• San Alberto and San Antonio gas fields of Bolivia
• Akpo and Agbami oil fields offshore Nigeria
• Cascade, Chinook and Saint Malo in the Gulf of Mexico’s Lower Tertiary
play.
Vice President of the World Petroleum Council
Responsible for the technical program for the 2011 World Petroleum Congress
in Doha, Qatar.
Luciano Seixas Chagas - Geologist
• Mr. Chagas holds a Ms. Sci. Degree in Sedimentary Geology and Stratigraphy
from the Federal University of Rio Grande do Sul, Brazil.
• Over 35 years of experience in the exploration of sedimentary basins around
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the world.
Considered an expert in sedimentary, stratigraphic and structural characteristics
and petroleum systems.
Served with Petrobras for over 30 years in several technical and managerial
positions.
In 2004, formed Brazilian-based Consultoria em Geologia Geofísica e
Informática do Petróleo LTDA (“CGGIP”) consulting various oil companies
operating in Brazil.
Published more than 50 papers and articles on the Petroleum Geology of
several Brazilian sedimentary basins, particularly the Recôncavo, SergipeAlagoas and Potiguar basins.
Lectures regularly on subjects such as Stratigraphy, Structural Geology,
Petroleum Geology, and Well Log Analysis at various Brazilian universities.
Jeff Roberts - Geologist
 B.A. Degree in Geology from the University of Tennessee at Chattanooga and Ms. Sci. Degree in
Geology from Memphis State University.
 31 years of petroleum exploration experience with Amoco, Sun and Oryx.
 Founding member of The Unconventionals, who build exploration projects in U.S. Shale Gas plays.
 Developed over 1.5 million acres of shale gas projects from 1999 to present.
 Interests in over 400 shale gas wells.
 Exploration geologist (Amoco, Sun, Oryx)
 Manager Operational Planning and Analysis (Oryx)
 Corporate planning and budget functions for $400 million in worldwide exploration and
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production, global portfolio economic analysis, benchmarking and competitor analysis.
Exploration Manager Gulf of Mexico (Oryx)
Manager Special Exploration Projects (Oryx)
Manager of E&P Technology (Oryx)
Exploration experience in numerous U.S. and Canadian Basins.
Exploration geologist and manager in numerous basins including Offshore Nicaragua, eastern
Algeria, the Northwest Shelf of Australia, the Pre-Caspian Basin Kazakhstan, the Oriente Basin
Ecuador and the U.K. North Sea.
Founding member of Eldorado Resources, LLC focused on Unconventional Oil opportunities.
Robert Fleming - Geophysicist
 Ba. Sci. and Ms. Sci. Degree in Geological Sciences from Lehigh University in Bethlehem, PA.
 Over 38 years of experience involving a wide variety of geoscience assignments.
 Sound understanding of geological and geophysical principles, including seismic processing,
modeling, potential fields and Amplitude Variation with Offset (AVO) analysis techniques, and
how they can be effectively applied in the search for hydrocarbons.
 Extensive experience in the generation and review of drilling prospects in many of the U.S. and
overseas hydrocarbon basins.
 Prospect identification and mapping, exploratory and water injection well site selection, seismic
acquisition, processing QC, Vertical Seismic Profile survey design, AVO analysis, prospect review,
and gravity/magnetic processing and interpretation for a number of Texas-based E&P companies.
 Geophysicist for Kerr-McGee Oil and Gas Onshore, LLC and Anadarko providing geophysical
support to E&P teams in plays along the Texas Gulf Coast, in Louisiana, West Texas and New
Mexico; generated and reviewed prospects for international exploration programs in Brazil and
Ecuador, including coordinating the acquisition, processing and interpretation of several 3D
surveys on Kerr-McGee’s Brazil leasehold in the Santos Basin.
 Positions with Oryx Energy Company, including Manager of: Subsurface Imaging (seismic
processing, depth migration, seismic and gravity/magnetic modeling and interpretation projects);
licensing & maintenance geoscience software contracts and sublicensing of proprietary
geophysical software; participation in joint industry projects, university consortia and DoE
technology transfer initiatives; Reservoir Characterization Services (reservoir characterizations
and AVO analysis in the Gulf of Mexico and worldwide); Application Development and
Exploitation; Geophysics, Southeast District; and Geophysics, Gulf of Mexico West District.
Geographic Location
TYRA
PERLAS
NOBLE
Energy
IFNY
IFNY
NBL
Concessions
Infinity Concessions
Infinity holds 100% interest in Blocks Perlas and
Tyra, located in shallow waters offshore Nicaragua
Fiscal Summary
• Work Commitment for each block broken into 4 SubPeriods.
• Tyra:
– Sub-Periods 1, 2, & 3 (4 years) Acquire, process and
interpret seismic data.
– Sub-Period 4 (2 years) Drill 1 well to 10,000’ or to test
the Cretaceous.
• Perlas:
– Sub-Periods 1 & 2 (3 Years) Acquire, process and
interpret seismic data.
– Sub-Periods 3 & 4 (3 Years) Drill 2 wells to 10,000’ or
to test the Cretaceous.
Contract and Fiscal Terms
Wells Drilled
Evidence for Positive
Petroleum System
• 26 wells drilled, 10 have
oil or gas shows, at least
two have tested
measurable
hydrocarbons.
• Shell Perlas#1 well tested
350 bo/day
• Shell Perlas#1 confirmed
Eocene source rock
Geologic and Geophysical
Interpretation
Geologic and Geophysical interpretation and
mapping was based on the following data:
•Geophysical Data
•9,731km of. various seismic surveys
acquired during the 70’s and
reprocessed by Fugro in 2000
•3,096 km of new seismic acquired and
processed by Fugro in 1999
•3,096 km of magnetic and gravimetric
profiles acquired and processed by
Fugro in 1999
•Well Data
•Limited information on previous wells
obtained through an interpretation
report prepared by Fugro-Geoteam AS
in 2001
Depth Seismic Map
Lower Eocene
Seismic interpretation and
structural map indicate
•Intense thrusting and strike slip
faulting
•The Nica-Tinkham ridge is the
result of transpressional
deformation along a major strike
slip fault
•Tectonic blocks controlled the
sedimentation, particularly the
development of reef system
along the elevated parts of fault
blocks
•The most prominet tectonic
high of the area, the NicaTinkham ridge, traverses both
Tyra and Perlas blocks
Reserve Potential
• Identified 4 large structural closures along the
Nica-Tinkham Ridge at the top of the Eocene.
• Shell #1 Perlas tested 350 BOPD from the Eocene.
• Potential Eocene reserves assuming: 30 meters of
pay, porosity of 20%, oil saturation of 65%, recovery
factor of 35%. Based on variations in size of closure:
– P50: 4.6 Billion Barrels
• Potential Cretaceous reserves are not quantified but
could be even larger.
Data provided by
Nicaragua MEM
Deepest Mappable Horizon – Early Eocene
1999 Vintage Data: N72-2CS99-110
Approximate top of Cretacious
1999 Vintage Data: N72-2CS99-111
1999 Vintage Data: N72-2CS99-113
Approximate top of Cretacious
Approximate Top of Cretaceous
Gravity – 60 km Low Cut Filter
Warm colors = High Gravity,
high density, shallower Cretaceous
Cool colors = Low Gravity,
low density, deeper Cretaceous
Bathymetry
Coverage
Regional Cretaceous
Carbonate Fields
Mexico Reforma/Cantarell Area:
Over 15 Billion Barrels of Oil
Recoverable
Infinity
Concessions
Venezuela
Maracaibo Basin:
Over 1 Billion
Barrels of Oil
Recoverable
Early Cretaceous Tectonic
Reconstruction
Reforma/Cantar
ell
Rubelsanto
Nicaraguan
Caribbean Shelf
Lake
Maracaibo
Area
Cretaceous Carbonate
Outcrops
La Paz Field X-Section
La Paz Field - Venezuela
• Production from dense Cretaceous carbonates with low
matrix permeability and fractured basement.
• Structure related to complex wrench fault tectonics.
• Initial Cretaceous discovery well drilled in 1944 to 1,800’
produced at a rate of 1000 BOPD.
• Development well P-84 produced at a rate of 30,000
BOPD.
• Field production peaked at 160,000 BOPD in 1950.
• By 1992 field had produced 867 million barrels of oil with
572 million from the Cretaceous carbonates.
• Ultimate recovery is expected to be 1,041 million barrels
of oil with 63% from the Cretaceous carbonates.
Lake Maracaibo Area
Production
Size of Nica-Tinkham
Ridge Captured by
Infinity
Onshore Nicaragua
Cretaceous Outcrops
Cretaceous
Carbonate
outcrops
4.6 Billion Barrels of Recoverable Resources
4.6 Billion Barrels of Recoverable Resources
1 Billion Barrels of Recoverable Resources
4.6 Billion Barrels of Recoverable Resources
1 Billion Barrels of Recoverable Resources
90% Given to Partner
100 Million Barrels of Recoverable Resources
4.6 Billion Barrels of Recoverable Resources
1 Billion Barrels of Recoverable Resources
90% Given to Partner = 100 Million Barrels of Recoverable Resources
Using Only $12.00/Barrel of In-The-Ground Value
$12 x 100mm = $1,200,000,000
4.6 Billion Barrels of Recoverable Resources
1 Billion Barrels of Recoverable Resources
90% Given to Partner = 100 Million Barrels of Recoverable Resources
Using Only $12/Barrel of In-The-Ground Value: $12 x 100mm =
$1,200,000,000
If INFINITY has 30mm Shares Outstanding
$1,200,000,000 ÷ 30mm Shares = $40 Per Share Valuation
Infinity Energy Resources, Inc.
INFINITY
ENERGY
RESOURCES,
INC.
NICARAGUA
EXPLORATION
PROJECT
Blocks Perlas and Tyra
“IFNY”