Transcript Slide 1

Investor Presentation
November 2007
Disclaimer
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Please note that no formal resource nor reserve figures have yet been prepared under any of the accepted standards and that any
figures quoted are sourced from the field operator and have not generally been independently verified by Black Rock Oil & Gas Plc.
The information contained in this confidential document ("Presentation") has been prepared by Black Rock Oil & Gas Plc (the "Company"). It has
not been fully verified and is subject to material updating, revision and further amendment. This Presentation has not been approved by an
authorised person in accordance with Section 21 of the Financial Services and Markets Act 2000 and therefore it is being delivered for information
purposes only to a very limited number of persons and companies who are persons who have professional experience in matters relating to
investments and who fall within the category of person set out in Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion)
Order 2005 (the "Order") or are high net worth companies within the meaning set out in Article 49 of the Order or are otherwise permitted to receive
it. Any other person who receives this Presentation should not rely or act upon it. By accepting this Presentation and not immediately returning it,
the recipient represents and warrants that they are a person who falls within the above description of persons entitled to receive the Presentation.
This Presentation is not to be disclosed to any other person or used for any other purpose.
Hanson Westhouse Limited ("Hanson Westhouse") is acting for the Company and no-one else in connection with the proposals contained in this
presentation. Accordingly recipients should note that Hanson Westhouse is neither advising nor treating as a client any other person and will not be
responsible to anyone other than the Company for providing the protections afforded to customers of Hanson Westhouse nor for providing advice in
relation to the proposals contained in this presentation.
While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents,
employees or advisers give, have given or have authority to give, any representations or warranties (express or implied) as to, or in relation to, the
accuracy, reliability or completeness of the information in this Presentation, or any revision thereof, or of any other written or oral information made
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Black Rock Oil & Gas Plc
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AIM-quoted oil and gas exploration company
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Principal interests in Colombia and the UK Southern North Sea
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Recent heavy oil discovery in Colombia
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Near production opportunities with significant exploration potential in
Colombia
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Exploration potential in Southern North Sea
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Recent share capital reorganisation
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Competent Persons Report underway
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Directors
Tony Baldry MP, Non-Executive Chairman
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Member of Parliament for Banbury for over 20 years
Former Parliamentary Under Secretary of State, Department of Energy
Jointly oversaw the privatisation of the Electricity Industry
Wealth of experience providing corporate strategic and financial advice
Dr John Cubitt, Managing Director
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Chartered Geologist
27 years experience in international oil & gas exploration and production including Forest
Oil International, Shell and Force Petroleum
Specialises in Board level strategic and operational direction, project management and
asset evaluation
Peter Kitson, Finance Director
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Fellow of Association of Certified Accountants
15 years experience in Oil and Gas with BP and Elf
General management experience with, for example, Commonwealth
Development Corporation and BP
Chris Moore, Non-Executive Director
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Over 30 years experience in the international upstream petroleum industry
Exploration, finance and asset management positions in BP, Tricentrol and ARCO
Specialises in upstream project evaluation, negotiation and execution
Adviser on strategic new venture development
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Current Capital Structure
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Symbol & Exchange
Market capitalisation
Price as at 28 October 2007
High – Low Share Price in 2007
Shares issued*
Options/warrants outstanding
BLR – AIM
£6.6 million
20.5p
18 – 55p
32,160,407
577,018
(200,000 exercisable at 50p per share before 18/04/2009
377,018 exercisable at 25p per share before 8/8/2010)
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Fully diluted share capital
32,737,425
* The company undertook a 50 for 1 share consolidation exercise in July 2007
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Corporate Strategy
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Focus on generating near term cash flow
– previously non-commercial or undeveloped discoveries
– target bypassed pay and acreage adjacent to existing producing fields
– acquire production
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Balance low risk production with high quality exploration projects
– acquire exploration acreage in hydrocarbon provinces with proven
potential
– seek significant equity interests to materially impact the company and
maximise financial flexibility
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Progress on 2007 Targets
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Realise the potential of the Colombian acreage
– Acacia Este and Arce seeing activity in 2007
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Drill and test Acacia Este
– Discovered 16°API oil
– Tested at 101 bbls per day, 4 strokes per minute
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Complete Arce Field steam injection test
– Steam injection has commenced and we will be evaluating production
rates for remainder of 2007
– JV proceeding with appraisal on sole risk basis
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Have an active drilling programme
– Acacia Este drilled and 1 appraisal well on Acacia Este in Q4 2007
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Begin process to book net reserves of 2.5-10 million barrels of oil
equivalent*
– Competent Persons Report commissioned
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Diversify the portfolio of E&P assets in Europe and the Americas
– Continue to review opportunities to manage the portfolio
– Concluded that North American opportunities inappropriate at this time in
line with market sentiment
* see disclaimer
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Targets for 2008
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Build on the potential of the Colombian acreage
Acacia Este appraisal
– Conduct a rapid appraisal programme including long-term production
tests, additional appraisal well drilling and 2D/3D seismic acquisition
– Submit a commerciality application to Ecopetrol and move towards
development by year end
– Obtain debt financing for development
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Arce Field evaluation on going
– Possible acquisition of additional 2D seismic
– Possible appraisal well in 2H 2008
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Have an active exploration drilling programme
– On Las Quinchas, drill Acacia Este-3 appraisal plus possibly drill/test
Baul and 1-3 extra exploration targets
– On Alhucema, drill exploration wells Arriconada -1 in 1Q + possibly one
other
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Book net reserves of 2.5-10 million barrels of oil equivalent*
Diversify the portfolio of E&P assets in Europe and Latin America
– 1+ projects in Colombia or Peru
* see disclaimer
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Colombia
 Proven oil producing region – 1.9 billion barrels of discovered
reserves in the Middle Magdalena Valley region
 Colombia produces 556,800 bopd (2006)
 BP, Occidental, Petrobras and Lukoil are all active in the country
 Colombia is stable politically with President Uribe in his second 4
year term
 Colombia is economically buoyant
 Middle Magdalena Valley currently has limited criminal or terrorist
activity
 Excellent infrastructure close to our licences including pipelines,
refinery, trucking station, paved roads and a small airport
 Region consists primarily of rolling hills used for cattle rearing
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Colombia - Middle Magdalena Basin
50% joint venture with Kappa Resources Colombia
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2 licences
– Las Quinchas Association
Contract
– Alhucema E&P Contract
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Las Quinchas - Acacia Este
discovery and appraisal
– 50 -150 mmbbl potential*
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Las Quinchas – Arce Field
continuing appraisal and testing
Alhucema - drilling Arrinconada-1
and possibly 1 additional
exploration well in 2008
*see disclaimer
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Colombia fiscal models
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Association Contracts (e.g. Las Quinchas)
– Production sharing under shared risk terms
– R factor (additional share of production allocated to Ecopetrol related to
the ratio of revenue to costs but only applies to fields producing above 60
mmboe)
– Ecopetrol 50% back-in potential at declaration of commerciality, but pays
share of back costs out of production
– Sliding scale royalty based on rate prevailing at time of discovery and 35%
income tax
– Independent oil company take on small heavy oil fields 40-60%
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E&P Contracts (e.g. Alhucema)
– With ANH (Colombian Government Agency) since 2004. No back-in rights
for Ecopetrol
– Sliding scale royalty, fee of 30% of price exceeding benchmarks and 35%
income tax
– Independent oil company take ranges from 50-60%
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Colombia - Acacia Este
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Acacia Este oil discovery
– Drilled in July-August 2007
– Tested at 101 barrels of 16°API oil
per day
– Large structure
– Shallow depth
– Operator estimated target 50-150
mmbbls recoverable heavy oil*
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2+ appraisal wells may be drilled
in 2007/8
New 2D seismic to be acquired in
1H 2008
Long-term production tests to be
conducted in 2008
Commerciality submission in 2008
Development feasible in 2009
Acacia
Este
prospect
* see disclaimer
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Colombia - Acacia Este
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Colombia - Arce Oil Field
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Discovered 1984, heavy oil at depths
of around 3000 feet
4 wells drilled, 30 feet net pay. Arce 3
& 4 tested 30 bopd
Long term steam injection testing
started in Q2 2007. Ongoing
Operator estimated gross 10-20
mmbo recoverable*
Commerciality statement was
submitted in 2007 and JV allowed to
proceed on a sole risk basis
Peak production could reach 3,000
bopd after 5 years*. 30-60 wells may
be required
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Colombia - Arce Oil Field
Oil gathering station
Steam injection plant
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Colombia - Baul Oil Field
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Shallow heavy oil, 100’ net pay
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Baul 3 produced 16,610 barrels
of oil from a 14’ sand in 196061
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Testing in 1Q 2008
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Colombia – Exploration Opportunities
Las Quinchas Association Contract
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Large number of drillable
prospects, from shallow heavy oil
to light oil targets in the deep
Cretaceous
– La Linda (37 mmbo in 2
separate fault block targets*):
heavy oil prospect
– Rio Viejo/La Tolda (24 mmbo
target*): light oil, 12,000-18,000
ft target depth
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50% relinquishment required in
2008
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Colombia – Exploration Opportunities
Alhucema E&P Contract
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Heavy and light oil prospects
– Possible extension of Chicala / Arce
oilfield trend
– Juanes prospects
– N Morroa Cretaceous light oil lead
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50 km 2D seismic acquired in 2H
2006
Arrinconada-1 well (previously
known as Juanes SW) to be drilled
in 1Q 2008
Exploration well possibly to be
drilled in 2H 2008
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UK Southern North Sea
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15% interest in Block 49/8c operated by Wintershall
Carboniferous gas find,
discovered in 1989 and flowed at
5 mmcf/day
Drilled 49/8c-4 in 2006 to appraise
and test the Monterey gas field
Drilling was very successful but
technical difficulties during testing
meant that flow rates were
<1mmscfd
Gas was recognised from several
zones in the Carboniferous
Now moved into second 4 year
phase of licence
50% relinquishment completed
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UK Southern North Sea
Monterey Gas Field
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Operator estimated mean
recoverable reserves - 165 bcf*
Recent positive economics for
development based on horizontal
well and fracture stimulation
technology
Future studies include a seismic
facies evaluation of the
Carboniferous reservoirs, predevelopment studies and economic
screening.
Development possibly tied back to
Cutter or Markham
Production possibly by 2009
Stinson Gas Prospect
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Operator estimated mean
recoverable reserves - 147 bcf*
*see disclaimer
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Summary
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Black Rock has turned a corner
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Acacia Este potential “company maker” discovery in 2007
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50 -150 mmbbls recoverable*
Tested at 101 barrels of 16°API oil per day
1 appraisal well to be drilled in November 2007 and 1+ in 2008
Long-term production tests in 2008
Commerciality submission in 2008
Development considered feasible in 2009
Arce Field steam injection test still continuing
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Arce Field development allowed on a sole risk basis
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Additional exploration opportunities on existing licences in Colombia
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Economics for development of Monterey in UK improving
* see disclaimer
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Davidson House
Forbury Square
Reading
Berkshire
RG1 3EU
United Kingdom
Tel: +44 (0) 1189 001 350
Fax: +44 (0) 1189 001 351
www.blackrockoil.com
Email: [email protected]
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