www.blackmarlinener

Finding Hydrocarbons

in East Africa & the Western

Indian Ocean

Finding Petroleum Conference,

London, January 21-22, 2010

Chris Matchette-Downes

Part of the Black Marlin Energy group of

companies

PA Area

A

PA Area C

Block 1101

L1

8

L1

7

10A

0

1

07

08

0

6 0

2

1+ BBO

Lake Albert Oil Fields

6 BBO

Sudan Oil Fields

6 BBO

Yemen Oil Fields

24 BBOIP

Madagascar Heavy Oil Fields

6 BBO

Bombay High Oil Fields

4 TCF

Ethiopia Gas Fields

1 TCF

Tanzania Gas Fields

2 TCF

Mozambique Gas

Fields

EAX ‘s portfolio at the centre of an

underexplored oil & gas play

surrounded by oil and gas fields and

significant discoveries

PA Area B

Ref Lawver &

Scotese 1987

128,887 Km2

gross exploration acreage

11 blocks, 4 countries

Participated in 2 wells & one discovery

Active programme going forth

January 2010 Area in square kilometers Area in square acres

Country Blocks Equity Gross Net Gross Net

Seychelles A*, B* & C* 75% 14,946 11,249 3.7 million 2.8 million

Ethiopia 2, 6, 7 & 8 30% 47,582 14,209 > 11.8 million 3.5 million

Kenya 10A 20% 14,747 2950 3.6 million 0.7 million

Kenya 1* 50% 31,850 15,891 7.9 million 3.9 million

Kenya L17* & L18* 66% 4,844 3,250 1.2 million 0.8 million

Madagascar 1101 40% 14,900 5,960 3.7 million 1.5 million

Gross Area Net Area Gross Area Net Area

128,887 53,481 31.8 million 13.2 million

* Operated by Black Marlin

Regional Overview

Corporate Structure

Black Marlin Energy Holdings Limited ( )BVI

East African

Exploration

(Madagascar) Limited

( )BVI

Black Marlin DMCC

( I)DUBA

Black Marlin

Exploration Limited

UPS Tanzania

Limited ( )Tanzania

East African

Exploration (Kenya)

Limited ( )Kenya

East African

Exploration

(Ethiopia) Limited

East African

Exploration

(Seychelles) Limited

Black Marlin Energy Limited ( )BVI

East African

Exploration Limited

Upstream Petroleum

Services Limited

( )BVI

( )BVI

( )BVI

( )BVI

( )BVI

The business model has delivered

BMEL Incorporated 1st

Seismic Operation 1st

Exploration Well

drilled

1st

Consolidated Profit

1st Discovery

Operatorship

2005 2009200820072006

Kristina RTO

53,481 km2

net

Award of 1101 in Madagascar

Farm-in to Africa Oil (Ethiopia and 10A in Kenya)

Award of the Seychelles acreage

Award of L17/L18 in Kenya

Farm-in to Tanzania

Share value

Notional early

Mesozoic, restricted

marine source rock

setting over a vast

area, in part

underlain by older

pre-break up

sources

Why East Africa & the

Western Indian Ocean?

rine

East vs. West Africa: The differences

• Source rock, timing – Early vs. late

• Style - Passive margin vs. Spreading Ridge

• Complexity - 3 vs. 1 phase

• Data - Less vs. more wells

• Result - ‘Harder’ oil vs. ‘easier’ oil

Since AMINEX drilled Nyuni #1 in 2004, the first well for 14

years, there have been 7 further wells drilled in Tanzania, 5

of which were significant gas discoveries with further

evidence for liquid hydrocarbons, 1 dry well in Kenya, a well

predicated on the fabled Cretaceous source, 4 failures in

Mozambique largely associated with Cretaceous source

fixation and further gas/condensate discoveries associated

with Inhassoro. On Madagascar early work by MOG is paying

off with further mobile oil finds in the Tsimiroro area. To the

south Sunpec discovered light oil in 3113. Drilling has clearly

paid off in Uganda and Seychelles is yet to see an optimally

placed well.

Going forward we have the ExxonMobil Ambilobe; CNOOC

Block 9 Bogal #1,Kenya; Petronas’ Ethiopia; Ophir’s Tanzania,

Tullow’s Likondi #1, Ruvuma; Anadarko’s Rovuma,

Mozambique continued on/offshore programme and EAX’s

drilling programs to look forward too.

Ref GeoExpro

2007

Kutch, Cambay & Bombay regions are a primary

analogues for Seychelles - Conjugate margin

• The Bombay Geologic Province,

northwest coastal India, is a

complex of highly hydrocarbon

productive Mesozoic-Tertiary

basins, including the Kutch Basin

and the Bombay Platform

• Basins within the province

provide strong and direct

stratigraphic, palaeogeographic and

depositional-setting analogues for

the Seychelles

• The Kutch Basin was the Late

Cretaceous pre-rift counterpart to

the Seychelles and contains an

analogous Jurassic-Cretaceous

mixed clastic succession

• The Bombay Platform has a

comparable Tertiary developmental

Bombay Geological Province

After : C.J Wandrey, U.S. Geological Survey Bulletin 2208-F, 2004

There appears to be at least

two source rock families as

evidenced in the biomarker

assemblages extracted from

the tars. On the left the older

Liassic/Upper Triassic family

as seen in Coevity tars and

AMOCO well source rocks an

Upper Cretaceous / Tertiary

source shares some affinities

to the oils from Bombay High

accumulation (Ref O.I.L.S.

database).

Lower

Jurassic/Upper

Triassic Upper Cretaceous/Tertiary

Bombay High analogue

The two

Seychelles oil

families

Waxy Algal

Two very different sterane (M/z 217

distributions (nb scale differences)

1

2

NB high C29

, C35

doublet and

Gammacerane

1. Lower C29

norHopane and

significant, 2.

Oleanane

NE Seychelles / Area B is

undrilled

Gravity low trend

Potential deep failed rifts

filled with Karoo sediments /

Younger sediments as in NW India?

Seychelles Plateau ABC

15,000Km2

EAX Operator 75%

Avana 25%

PA commenced 28_11_08

Seychelles – EAX PA Areas

emerging lead inventory

200000 300000 400000

9500000

9600000

200000 300000 400000X/Y:

Meters

9500000

9600000

Galate Lead

Espadon nwar

Lead

Tazard Lead

PA Area B

PA Area A

PA Area A

NW Deep Water Basin

Sedimentary Sequences in

Deep Rifts

Bonit Lead

Terez Lead

Marto Lead

PA Area B

Central Plateau

Failed Rift Grabens

50km

Mahé

Island

Praslin

Island

200000

9500000

200000X/Y:

Meters

9500000

PA Area A

Southwestern

Plateau

Bekin Lead

Libin Lead

Lasker Lead

Zekler Lead

Dorad Lead

Banane Lead

Seychelles Primary Play

Undrilled Karoo StructuresSeagull Shoals No 1

(drilled off structure)

Owen Bank No. A1

(did not reach objective)Reith Bank No. 1

(breached & no fault seal)

Espadon nwar Lead – Top Karoo PlayT

WT

(Seco

nd

s)

5km

Top Karoo

AB

Seagull Shoals #1 (projected and downdip)

1.0

2.0

Bonit Lead

Constant Bank No. 1

Espadon nwar Lead

Galate Lead

Maro Lead

Owen Bank No. 1

Reith Bank No. 1

Seagull-Shoals No. 1

Tazard lead

Terez Lead

190000 200000

9330000

9340000

9350000

190000 200000X/Y:

Meters

9330000

9340000

9350000

Espadon

nwar Lead

EAX 2007 & 2009

seismic surveys

Espadon nwar Lead: Top Karoo

TWT Structure Map

P10 closure 1420msec TWT

P50 closure 1350msec TWT

10 Km

0.000

1.000

2.000

3.000

4.000

1.000

2.000

3.000

40000 50000 60000 70000 80000Offset:

Praslin Lead

0.000

1.000

2.000

3.000

4.000

EAX07-009-SEQ-018, 8202.87EAX07-105, 5275.99 EAX07-010, 6877.23A B

10kmMapped Horizon

TW

T (Seconds)

1.0

2.0

3.0

Tazard Lead – Faulted Plunging Regional High

Basement Footwall

Up-dip Seal??

000.2

005.1

000.2

25kmPA Area A

F

E

D

C

B

A

EAX07-009-S

EQ-008

EAX07-009-S

EQ-008

EAX07-011

EAX07-012

EA

X07-1

85

EA

X07-1

85

EAX07-009-S

EQ-018

EAX07-009-S

EQ-018

EA

X07-0

18

EAX07-105

EAX07-105

EA

X07-0

17

EAX07-010

EA

X07-0

19

EA

X07-0

16

EAX07-115

EAX07-115

EA

X07-1

75

EA

X07-1

75

400000

9600000

400000X/Y:

Meters

9600000

Tazard Lead, PA Area B

(3 way dip closure with up-dip basement

footwall seal)

B

Ref: Tullow Oil plc – Uganda Analyst Visit – October 2007

Kingfisher Discovery, Lake Albert Rift

(3 way dip closure with up-dip

basement footwall seal)

Basement Footwall

Up-dip Seal

Karoo

2km

TW

T (

Seconds)

AB

Block 1101 / Antsiranana

14,000 Km2

EAX 40%

To the west of the Antsiranana permit

ExxonMobil & operator Sterling are to

drill a deep well to test a vast structure

Northern Madagascar

1903 Coal bore hole had to be abandoned

as the drilling apparatus became clogged

with bitumen

Block 1101

14,000 sq km

1st

exploration period

extended to 30th

July 2010

Northern

Madagascar

A series of previously

unknown structures

revealed by new

seismic, seeps and

shows in basin break

up margin / hinge

line setting – data

acquired by UPSL’s

accelerated weight

drop crew in 2009

EW

50 km

Top J

? mid-K markerTop TJ1

Base

Miocene u/c

Base Quaternary

u/c

Top PT

Top

Cretaceous

= Lead

Kenya

Blocks L17 & L18

1,267 & 3,577 sq km

EAX, Operator 75%

SOMKEN 25%

770 line km of new 2D

interpreted

Completed seabed coring

programme

Currently acquiring 300 km of TZ

seismic with UPSL’s Faraday

Base

Pliocene u/c

Interior Kenya

10A

Only 31 wells drilled in

Kenya – 19 had shows

Block 1, Kenya – Korrof Lead

Mansa Guda

Permo-Triassic

5km

Play Elements

Trap : Roll-over anticline on fault hanging wall

Reservoir : Karoo (Triassic-Lower Jurassic) Mansa Guda

sandstones

Seal : Lower Jurassic anhydrites/shales

Source / : Lower Jurassic and Permo-Triassic shales

Maturity : Proven generation from basin centre, evidenced

by seeps at Tarbaj

Area : Minimum 5km², Maximum 185km2

Estimated Prospective Resource

Un-risked Most Likely STOIIP : 305MMBBLS

Recoverable : 61MMBBLS

CNOOC currently drilling Bogal

#1 in the Anza basin to SW

Prospectivity Ranking, Block 10A

From AO Brochure (Operator)

Nyuni Permit & Kiliwani

North discovery

EAX participated in 2 wells & farmed out its10% in 2009

Kiliwani North #1 flowed @40 million SCF dry gas day-1

EAX is targeting a major half graben system –

Regional Bouguer residual map, Ogden basin

EAX Blocks 2, 6, 7 & 8

1

2

3

0

TWT

1 Km

Stop Press: Jan 7th

BMEL’s UPSL completed the

acquisition of 350 km of shallow marine seismic for

RAK gas in the East Pande Block, Tanzania

Faraday 480-800 cu sleeve gun array

24 bit SERCEL Seal towed cable – 1st

of its kind in the

region (marinised land crew)

Very shallow tidal waters, considerable tidal range,

creeks, inlets and channels to the south west of the

Songo Song gas field

Lower cost than conventional transition zone (TZ)

operations

Faraday has moved to the north to survey EAX’s L17 &

L18 blocks

Upstream Petroleum Services Limited

1

2

3

0

UPSL January 2010 towed

streamer acquisition

Raw acquisition data, East

Pande, coastal Tanzania 1

2

3

0

TWT

1 Km

Other advances in exploration technology

include: Gradiometry (Falcon in Kenya &

ARKex in Gabon), Seepfinder in Seychelles,

GORES geochemical screening, petroleum

geochemistry

Anticipated Work Commitments (2010)

GEOCHEMISTRY SEISMIC SURVEYINGEXPLORATION

DRILLING

2010

QUARTER 1 QUARTER 2 QUARTER 3 QUARTER 4

Madagascar

Block

1101 40% 800m

Kenya

L17 &

L18*65% 300km

Block 1* 50% 600km 600km

Block 10A 20% 750km

Seychelles

A, B & C* 75% 200 cores 3,500km

Ethiopia

Blocks

2&6 30%

Blocks

7&830% 3,500m

* OPERATED BY BMEL

East Africa: The key finds – thus far

Somalia

Mandura Basin oil seeps/shows

Ethiopia

Hilala #3

Calub field

Kenya

Mandura Basin oil seeps and shows

Tarbaj Hill Oil seep

Pandangua #1: Oil shows

Ria Kalui #1: Tarry bitumens (Triassic Maji-ya-Chumvi

fish beds)

Cities Services wells offshore Kenya: Oil shows

Uganda “The Great Lakes”

Albertine graben Tullow/Heritage 1+ billion bbls

Turaco, Paraa, Kibuku, Kibiro oil seeps & Kaiso-Tonya

oil & gas seeps

Tanzania

Kiliwani North #1 40million SCF day-1

Makarawe: Tarry bitumens - Karroo age / Jurassic

Tundaua: Oil seep - Jurassic (not Campanian)

Pemba # 5: Oil shows – Jurassic (same as Pemba # 5)

Kiwangwa: Tarry bitumens – Jurassic?

Zanzibar #1: Gas shows

Mkuranga #1 Maurel et Prom 19.2 MSCFD –

thermogenic gas – 5tcf

Kimbiji East #1: Gas shows

Tancan: Gas shows

Mafia Island: Oil & gas shows

Songo Songo: ca. 1+ tcf, Condensate in wells #

1,3,7,9 & SS10

Okuza island: Oil shows - Jurassic

Nyuni Island & well: Oil & gas shows - Jurassic

Lipwapwatawre: Oil seep

Mikandani: Oil seep

Kisangire: Oil shows - Jurassic

Wingayongo: Oil seep – Jurassic

Wingayongo #1 & #2 - 30m & 40m of tar sand

Ruhoi River (5km from Wingayongo) - Oil seep

Lukuliro: Gas shows - tars, sands in wells

Mita Gamma: Oil shows

Mandawa: Oil shows

Mbuo: Oil shows

Pindiro #1: Wet gas

Lindi #1: Shallow gas blow out

Manzi Bay #1,2 & 3. Gas reservoir,

~1 tcf+, Msimbati-1x (67MB equivalent)

28MMscfday-1

Mtwara # 1 Wet gas blowout

Misimbati: Oil and gas seeps

Mozambique

Mocimboa # 1: Oil & gas shows

Ponta Unifundo and Pemba seeps

Inhaminga oil shows

Buzi gas shows

Pande & Termane, 1+ tcf Pipeline being

expanded Inhassoro 2,000bbl

condensate

Sunray wells: Oil shows

Seychelles

Reith Bank #1 oil shows & tar balls

Seagull shoals #1 & Owen Bank #1

shows

Madagascar

Ankaramy #1 Oil shows & coastal bitumens

Bemolanga Tar Sands 23B bbl in place

Tsimiroro 2.2B bbl in place

Manandaza #1 light oil discovery

Block 3112 light oil discovery

NW India

Bombay High 3 Bbbls, multiple tcf

Cambay basin 2.1 Bbbls, multiple tcf