Transcript Republic of South Sudan

.
A division of Chang & Skalbania Exploration Ltd.
SOUTH SUDAN BUSINESS OPPORTUNITIES
Focusing on:
• Oil Exploration
• Mineral Exploration
• Fuel for South Sudan
Chang & Skalbania Exploration Ltd.
Prepared January 2013
Naath – means "people“ from the
language of the Nuer Nilotic nation
in South Sudan.
Overview
Republic of South Sudan, became an independent state on
9 July 2011. It is a landlocked country located in the Sahel
region of northeastern Africa. It is also part of the North
Africa UN sub-region. Its current capital is Juba, which is
also its largest city. South Sudan is bordered by Ethiopia to
the east, Kenya to the southeast, Uganda to the south, the
Democratic Republic of the Congo to the southwest, the
Central African Republic to the west, and Sudan to the
north.
The official language is English and Christianity
is the major religion. The economy is primarily
driven by the production and exportation of
oil. Oil revenues constitute 98% of the government’s
budget, according to the Ministry of Finance and Economic
Planning and this has amounted to more than $8 billion in
revenue since the signing of the peace agreement.
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Oil and Gas Overview
South Sudan’s oil reserve is currently estimated at 6.5 billion
barrels of recoverable crude oil, placing it in the top ten countries
with greatest proven petroleum reserves, above other sub-Sahara
African States in the world petroleum reserves ranking. Current
production is approximately 400,000 bpd.
The source rocks are the Lower Cretaceous lacustrine shales,
whereas reservoirs and seals are both Palaeogene and Upper
Cretaceous. Heavy to light crude oils and gas have been
discovered in the Palaeogene and only light crude oils and gas in
the Upper Cretaceous producing zones.
The dominant oil production is in the Melut basin in Unity State,
South Sudan and is in the Palaeogene zone.
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Oil and Gas Market
South Sudan’s oil industry is dominated by pacific rim
companies. Oil is exported via pipelines to a small refinery
in Khartoum and a larger one at Port Sudan with the
balance of crude exported from Port Sudan South Sudan is
an importer of refined petroleum products.
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OPPORTUNITY: Oil Concessions by Providing Power
C&S has entered into negotiations to provide a number of electricity
generating sets (diesel fueled) to certain cities in South Sudan.
The concept is to provide gen-sets (0.5 MW to 1.0 MW) to seven cities
provided:
a) power purchase agreements with the governments are obtained
b) some oil exploration concessions could be obtained, the size of the
concessions determined by the number of gen-sets that are provided.
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Opportunity: Oil Concessions by Providing Mini-refineries
Naath has entered into negotiations with the government to provide refinery
capacity for South Sudan.
The initial program is to acquire and install two mini-refineries that would only
process diesel fuel while returning the unused crude to the source. Further, the
plan is to develop a larger refinery (20,000 barrels/day) to be located at the
southern terminus of the existing pipeline that goes through North Sudan to a
refinery on the Red Sea. The negotiations with South Sudan are that we will build
refineries provided:
a) sufficient crude from existing production provided for the refineries and
b) Naath to have some oil concessions in BLK 7 or BLK B to develop its own crude.
Naath has retained Stefan Kmetovic, P.Eng., (Petro-Mont Technical Services Inc.) as
the refinery consultant.
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Opportunity – Mineral Concession
The Ministry of Mines has granted Naath exclusive rights to
explore/develop certain properties identified as prospective
by the government. We have identified the most promising
areas for initial exploration which are in the SW and SE of
South Sudan.
Naath is in the process of selecting a geologist and/or firm to
joint-venture and explore these mineral targets. Paul
Sarjeant, P.Geo. of Toronto has been retained as Naath’s
consulting geologist to supervise this program.
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Opportunity: Fuel Distribution
Naath is government licensed to deliver diesel/petrol/kerosene fuel
to South Sudan. Fuel is sold to government agencies, the United
Nations and to the private sector. To date, the fuel source is from
depost/suppliers in Kenya.
Naath has now delivered several diesel tankers of 31,000 litres each,
along with some kerosene.
The diesel program is to ultimately have one tanker per day delivering
fuel from Kenya to South Sudan. Naath has installed its own storage
tanks in Juba and is in the process of purchasing its own truck tankers.
The target is to bring in 2,000,000 litres per month.
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Management
Chairman
Simon Tut
Native South Sudanese with Canadian
citizenship, political /military
background with oil & gas experience
President
Nelson Skalbania B.Ap.Sc.,M.Sc.,P.Eng.
VP Operations
Rick Rockliffe
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Financial Plan
NAATH Resources is a wholly owned subsidiary of Chang and Skalbania Explorations Ltd,
a company incorporated in the Republic of South Sudan
Stock
Shares
$/Share
Capital
Founder/Acquisition
20,000,000
Private Placement
10,000,000
$0.20
$2,000,000
Warrants
10,000,000
$0.20
$2,000,000
Total
40,000,000
$4,000,000
The private placement to be in the form of a convertible debenture with the following terms: (Each $10,000.
debenture is convertible to shares at $0.20 and on each conversion, a warrant to acquire a further share at
$0.20.)
(1)
Three-year term
(2)
Bear interest at 6%; paid quarterly
(3) Secured pari passu by 100% of the assets and shares of C&S
(4) Converts into shares of C&S and/or new Pubco at the rate of $0.20/share. The Company, once it has secured
oil exploration agreements (by arranging gensets and/or mini-refineries) will finance the installation of the
gensets/mini-refineries by Joint-Venture agreements with major/junior oil companies.
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Use of Proceeds: Twelve-Month Budget
Item
Fuel Purchases
Marketing
Office overhead in Juba (supplies, phone, etc.)
Staff costs (2: Simon Tut and Rick Rockliffe)
Deposit on three mining properties
Exploration of mining properties
Deposits on two oil concessions
Consulting petroleum engineer/geologist
Consulting geologists, mining engineer
Office overhead in Vancouver
Entertainment/travel
Vehicle (4WD), gas
Legal/accounting/commissions
Deposits on Gensets/Mini-refineries
Total
$ CDN
650,000
200,000
45,000
95,000
20,000
100,000
80,000
110,000
90,000
30,000
60,000
70,000
200,000
250,000
$2,000,000
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EXIT STRATEGIES
A. GO PUBLIC STRATEGY:
CNSX, or equivalent, where Pubco acquires 100% of C&S in a taxeffective share exchange.
Proforma share structure, post acquisition of C&S and post-funding of
$4,000,000:
a. Existing Pubco shell with $100,000. cash
2,000,000
b. For C&S
20,000,000
c. For 2,000,000 shares
10,000,000
d. For 2,000,000 shares (warrants exercised) 10,000,000
42,000,000 shares
B. JOINT-VENTURES (OR SALES)
with oil companies and/or mining companies.
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Conclusion
WHY INVEST?:
1) Early stage investment not generally available to small
investors
2) First leader advantage in South Sudan which is
considered a highly desired natural resource market
3) Political connections provides strategic advantages
which will accelerate investment advantages
4) Robust return in early stage market
5) Diverse portfolio of opportunities
6) Security: First charge pari passu against assets and
shares of C&S
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CONTACT INFORMATION:
Nelson Skalbania 604.970.5560
Simon Tut
+211.955.615086
Mike Sullivan
403.650.8952
[email protected]
[email protected]
[email protected]
Chang & Skalbania Exploration Ltd.
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