New Exploration Opportunity

Five Exploration Blocks Farm-in opportunities in Chad

La Societe Global Petroleum (LSGP) is offering a farm-in data room exercise to identify a potential partner and the
opportunity to acquire part of its share (up to 50%) which is the 100% shareholding of Doba basin in Chad. The LSGP
portfolio comprises all assets in South & Northern Chad. A competitive farm-in process will start with a physical Data
Room in London opening 19th January 2015.
Schlumberger will host all of the services. Access to the physical Data Room will only be available to selected parties
who have executed Confidentiality Agreements (CA). A pre-qualification questionnaire is applicable. Separate data
rooms in Chad, each requiring a CA, will be available for all LSGP blocks, if required.
LSGP is a private exploration and development company focused on oil and gas activities in the Republic of Chad in
Africa, with its main office in NDjamena. LSGP has a balanced, technically established portfolio position, covering
highly prospective oil prospects.
The Company signed a production-sharing Agreement (PSA) with the Government of the Republic of Chad in November 2011.
The PSA provides exclusive rights to explore and develop resources in the DOE, DOF and DOG concessions in the Doba basin in Southern Chad,
covering a combined area of 3,800 square kilometres and the Largeau V and Djado III concessions in Northern Chad, covering a combined 20,000
square kilometres.
The DOE, DOF and DOG area does not include the Esso E&P Chad Concession area (facilities, producing the Kome, Bolobo, Miandoum, Miakeri,
Nya and Timbre fields).
The company believes that the concession areas acquired under the PSC has world class potential with significant resources. The Global Petroleum
management team has the expertise to unlock the resource base and plans on executing an exploration programme in 2013/2014.
The Doba blocks are under two exploration phases effective from 11th November 2011. The first phase is a 5 year term, $25 million work
commitment across 5 blocks, with no defined work requirements per block. Work programs, open to the Operators discretion, are subject to
standard Governmental approval and 50% relinquishment of the exploration area at the end of Exploration Phase.
The regional studies show that the future of exploration in Chad will be much different than the past. At present, 82% of the discovered reserves
are in the Upper Cretaceous (UK) play, with the UK having 1150 MOEB and the Lower Cretaceous (LK) 200 MOEB discovered. However, 80% of the
remaining undiscovered potential will be found in the Lower Cretaceous formation C and formation D&E plays, which have resource base
means of 800 MOEB.
LSGP blocks and Offsetting oil fields in Doba basin
Kome, Bolobo, Miandoum, Miakeri, Nya and Timbre fields are inside the LSGP Doba concessions. Wherein, LSGP blocks are surrounded by
Moundouli oil field (103 MMbbl), Belanga discovery (12 MMbbl) and MBiku (8 MMbbl). Among many other identified prospects are Mangara
discovery (47 MMbbl, test rates 1,600 bbl/d), Badilla discovery (test rates 3,100 bbl/d) and Damalla prospects (at the LSGP eastern border of DOG
block). CPC Taiwan (OPIC) fields found the Benoy discovery, the companys largest discovery.

For further information and copies of the confidentiality agreements please contact:

Khamis Farhoud
Exploration Manager

Mustapha Sheriff
Managing Director

Telephone: (235) 63636965 & (44) (0) 201065003047

Email: k.farhoud@lsgpchad.com

Telephone: (235) 22520028 & (44) (0) 20273230788

Email: m.sheriff@lsgpchad.com

LA SOCIETE GLOBAL PETROLEUM

TCHAD: Quartier Residentiel, BPN:6357, D'jamena LONDON: 46 Portland Place, W1B 1NF

New Exploration Opportunity

Doba Basin History
Republic of Chad, located in West Africa northeast of regional oil giant
Nigeria, will become the world's 76th producer of oil in the coming
years.
For Chad, it has been a long walk to becoming an oil producer. The
country's sedimentary terrain is part of the West and Central African
Rift System (WCAS), a stretch of geologic infill that runs from northern
Nigeria, Niger, and Chad to the Central African Republic, Libya, and
Algeria.
Accordingly, the beginning of oil exploration in Chad dates back to the
1950's and the first discoveries happened in the 1960's. With the
commencement of oil exploration in 1969, oil was discovered in both
the Lake Chad Basin and Doba Basin by 1975.
1955 & 1959, Shell and Exxon and Mobil arrived in Chad and started
to do few studies.
1962, the first hydrocarbon exploration permits in the region were
granted to Saphyr Petroleum and Petropar, but Chad was not Production history
interpreted as a rift system geology until Conoco showed up in 1969.
In 1979-1980 Chad produced 1500 bpd. Exploration had resumed by the
1970, Texaco and Amax Oil and Gas began exploring north-eastern 1990s. In 2012, the Doba basin in the southern part of the country
Niger, and Conoco and Shell began studying the Central African averaged approximately 104,500 bbl/d as reported by the US Energy
Republic in 1973.
Information Administration (US EIA). Chads oil production began with
1973, a group consortium comprised of Exxon, Shell, and Chevron 36000 bpd in 2003 and reached 177000 bpd by 2005.
whose work led to the launch of the first commercial reservoirs that In 2006 Chad produced approx. 0.21 percent of the world oil production,
with an approx. reserve estimation of 1.5 Bb (0.2 percent of the world).
will make Chad an oil producer.
In 2013, new production has come on-stream in the Doba Basin, with a
1974, it was Conoco that got a handle on the area's geology before discovery at Badila (Block DOI).
any other company, drilling the first oil well in the Termit Basin, near
Back to 1995 Chad signed an agreement with Cameroon for a pipeline
Lake Chad.
from Doba to the Cameroonian port of Kribi. The pipeline project was
1993, the focus became on the Doba Basin area by a consortium of proposed by a partnership involving the government of Cameroon and
operators in the area that had made significant oil discoveries. Chad; Esso Exploration and Production Chad (project operator); Societ
Delineation of the new fields continued for several years.
Shell Tchadianne de Recherches et d'Exploitation, Elf Hydrocarbures
2003, the production of oil in Chad resumed again when the Tchad, and the Cameroon Oil Transportation Company (Cotco).
Construction of the 1080 km pipeline began in 2000 and finished in
Miandoum field, part of the Doba basin, was brought on-stream.
2003, with a capacity of 225000 bpd.
2004, Miandoum field was followed by production in the Kom and
Bolobo fields, respectively. Production from the three fields has been
restricted by a high water cut, low reservoir pressure,
unconsolidated sands and complex reservoir geometry. A
combination of well enhancements and the start-up of four satellite
fields, Nya, Moundouli, Maikeri and Timbre, has helped to slow the
rate of decline.
2006, massive Chinese investment in Chad - first on the development
of various fields including Bongor and later on a joint venture on the
refinery project.
2008, the Chadian government created its own national oil company:
Socit des Hydrocarbures du Tchad - SHT.

New Exploration Opportunity

The DOE, DOF &DOG exploration identified prospects are located in the central Doba Basin, Chad, 14 km north-northwest of the ESSO fields.
The identified Prospects will test several Upper, Middle Cretaceous (MK) and Lower Cretaceous (LK) objectives which comprise a large
(approximately 30 sq.km) faulted closure between near major bounding faults. The stratigraphic objectives at the Miandoum Shale 1 & 2
prospects are fluvio-deltaic sandstones in the Upper & Middle Cretaceous Msh and A" intervals (similar to UK & MK sandstones penetrated
at 1974 Doba-1, drilled down to 4248 m). Secondary objectives include the predominantly deltaic sandstones of the Lower Cretaceous "C"
interval and below that the LK D interval characterized by a higher percentage of fluvial deposits.
The Upper & Middle Cretaceous targets have a potential closure area ranging from approximately 7 to 9 to 26 sq.km and a maximum closure
height of 165 meters. The 9 and 26 sq.km closure sizes are suggested by Petrel TWT & Depth occurrence of potential leak points at -885 m and
-1595 m TVDSS. The additional high-side acreage includes connection to the Msh-1 prospect feature at fluid fill depths to -950 m TVDSS. The
Top Lower Cretaceous closure at the C sand level encompasses up to 8 to 22 sq.km at a closure height of -2815 m TVDSS at the Doba area
east of Doungabo DOF & -2970 m TVDSS at the Eastern side area west of Doungabo DOE block.
The proposed total depth : shallow well is -2250 m TVDSS, which allows for penetration of multiple Upper & Middle Cretaceous objectives,
whilst the proposed total depth for the deep well is -3350 m TVDSS, which allows for penetration of multiple Lower Cretaceous objectives.
The Lower Cretaceous has yielded discoveries in the Western Doba Basin at Mangara and at the Badila-1, and is gas-saturated, along with light
crude accumulation in the Kome Field in the Eastern Doba Basin, Bolobo and Timbre ESSO Fields. Upper Cretaceous sands are the primary
reservoirs at the Three Field Development inside DOE, DOF & DOG Global blocks.
Lower Cretaceous tops are estimated to occur at -2800 m TVDSS & -3000 m TVDSS at Doba & Bebanga areas, respectively. The proposed drill
well locations are optimized to test both Upper, Middle and Lower Cretaceous objectives. As per the regional studies made recently, 150 MOEB
has been discovered and 800 MOEB remains to be found in Doba basin.
Hydrocarbon System
Oil shows all over the Upper and Middle Cretaceous objective
intervals and traces of oil in different types of tests in the ESSO / and
other fields well suggest a viable hydrocarbon system for the greater
Doba structure.
Regional source rocks show Lower Cretaceous algal-rich lacustrine
shales (type I source) and lacustrine shales with significant
terrigenous materials (mixed type III-I sources). The source rocks have
total organic carbon values ranging from 2% to 6% by weight. Lower
Cretaceous oil and gas produced in the Kome Field in the Doba Basin
(in the middle of LSGP blocks) was also generated from the same
source rock intervals. Regional stratigraphic mapping of the Lower
Cretaceous intervals in the Global area shows that the prospect is
most likely surrounded by thick source and seal rock intervals.
Hydrocarbon maturation in the Doba Basin generally peaked around
Santonian time and might have predated some of the final structuring
or inversion episodes.
Recent studies of source maturation and yield timing show that the
Lower Cretaceous source intervals in the Doba Basin area reached
peak maturation between 75 million years ago, with additional
generations occurring from 75-20 Ma. This suggests that there was
significant overlap between the trap-forming events and the peak
hydrocarbon yield / primary migration windows. Seismic Structural
mapping shows that closure may have existed prior to the peak
maturation. The structural closure are of Santonian (84 Ma) and
Eocene (40 Ma) inversion events. There is great probability that the
prospect has received HC charge for a considerable period of time.

New Exploration Opportunity

Exploration Program So Far

2014

Establishing drilling team

Draft the drilling well program & design
Road & well site construction
Base yard and inventory
Start drilling (one well)
Seismic depth migration for the new recovered SEGD from ESSO 2037 LKM

Late
2013

Acquiring 793 2D seismic

2D seismic data processing
2D seismic data interpretation
Play Fairway risk assessment
Prospect specific risk assessment
Overall chance of success
Understanding the performance of the reservoir
Understanding the components of Inflow performance
Understanding the components of vertical lift performance
Understanding combining inflow and vertical lift performance
Sand problem production
Predict production profile
Discounted cash flow/ NPV

Early
2013

Preliminary well design

Wellheads & X-tree bid and evaluation
Tabular & casing accessories bid and evaluation
Cementing & fluids bid and evaluation
Drilling bits bid and evaluation
Drilling tools & Fishing bid and evaluation
Liner hunger bid and evaluation
Logistic services bid and evaluation
Fuel & water supply bid and evaluation
LWD and wellbore surveying services bid and evaluation
Drilling rig bid and evaluation
Rig acceptance and inspection