Democratic Republic of São Tomé and Principe AAPG Conference New Orleans

1. Luís Prazeres Executive Director ANP-STP Democratic Republic of São Tomé and Principe AAPG Conference New Orleans

2. Democratic Republic of São Tomé and Príncipe • Location:In the Gulf of Guinea, off the west-central coast of Africa, 300 kms (160 mi.) from Gabon • Capital: São Tomé • Land area: approximately 1001 Km2 • Maritime area: approximately 166,000 Km2 • Distance from Continent: 300 Km • Population: 160,000 (estimate 2007) • Climate: Tropical. Average temperature 26° C (78° F) on the coast; lower in the highland. Dry season June to August. Short periods of tropical rains during the rest of the year. • Official Language: Portuguese • Government: Semi-presidential Representative Democracy • Natural Resources: Cocoa, coconuts, bananas, coffee, palm oil, fishes, Petroleum (not yet exploited) • Export: cocoa, coffee, coconut, pepper • Currency: Dobras (STD) PRIME MINISTERS SPEECH STP São Tomé

3. THE COMPETENT AUTHORITIES The Government The Government of the Democratic Republic of São Tomé and Príncipe, at any time and from time to time, in accordance with Article 109 of the Constitution of Democratic Republic of São Tomé and Príncipe. Ministry of Natural Resources, Energy and Environment The Ministry establishes the policies for the petroleum sector. National Petroleum Agency The AgênciaNacional do Petróleo de São Tomé e Príncipe (“ANP-STP”) was established by Decree-Law No. 5/2004, of the 14th of June. It is the national regulatory body, reporting to the Ministry, with responsibility for enforcing the regulations, contracting with third parties and supervision of petroleum operations.

4. Organisational structure Petroleum law provides the legal foundation for the governance structure of petroleum activities clarifying roles and interests: Regulator Oil Companies Resource owner Commercial Interest

5. Agencia Nacional do Petróleo (ANP-STP) ANP-STP (National Petroleum Agency) • Is the regulatory authority for the petroleum operations (exploration, production and transport of hydrocarbons) • Participate in the proposal of legislation and its implementation • Promote the exploration within exclusive economic zone • Organize and conduct licensing including negotiations with applicants • Assess and recommend the approval of field development plans and tail-end production and abandonment • Co/ordinate all government supervisory functions related to petroleum operations

6. Overview of ANP organisation

7. Zones & Blocks JDZ

8. São Tomé and Príncipe Exploration History Pre 1970 Oil seeps on the islands have attracted interest 1970 Ball & Collins licensed onshore and shallow offshore – drilled two shallow wells near seeps 1990 Island Oil drilled two deep onshore wells near seeps, including Ubabudo-1 drilled to 1501m 1998 Mobil held 18 month Technical Assistance Agreement for whole STP offshore 2001-2005 PGS acquired 10,000 km of 2D seismic in EEZ and 3000 sq km of 3D in JDZ

9. JDZ Update • JDZ is a Zone established on 21 February 2001 by the Abuja Treaty, jointly controlled by the Federal Republic of Nigeria and Democratic Republic of São Tome and Principe for the purposes of the exploration for and exploitation of resources,aimed at achieving optimum commercial utilization for two countries. • 2003 and 2004 JDZ Licensing Round produced 4 active production sharing contracts,for Blocks1-4. The Blocks 5-6 are yet to be concluded. • The recent drilling operations for the JDZ Blocks 1-4 have encountered some very good reservoir sands, many of them charged with oil and natural gas. JDZ

10. STP 1st Licensing Round - Summary • License Round opened on the 2nd March 2010 • The License Round will close on the 15th September 2010 • The Licensing Round is based on open tender. • Applicants will be assessed based on evaluation criteria • The State reserves the right to participate in petroleum operations. The participation may be directly or through an entity wholly or partly owned and controlled by the State • No petroleum activity may be undertaken in the EEZ, except pursuant to and in accordance with the Petroleum Law n˚ 16/2009 • 3 Phase of exploration: 4+2+2 • The cost recovery ceiling shall be a maximum of 80% • International Oil companies commencing activities in the country for the first time are required to either be registered or incorporated upon award of acreage and prior to the commencing of any operations

11. 1st Licenses Round - blocks on offer

12. Seismic Coverage (Multi-Client) STP99 • 5,925km • Acquired 1999 for Mobil STP01 • 3,600km • Acquired 2001 - PGS STP02 • 1,500km • Acquired 2002 - PGS STP05 • 5,800km • Acquired 2005 - PGS

13. Geo-Technical Data The Geo-Technical Data package has been prepared from all the data available from within the ANP-STP archives and includes: • Technical Reports • Technical Presentations • Well Data • Petrographic Data • Seismic Data • Gravity & Magnetic Data • Field Work Data • Geochemical Data (seep analysis) • GIS Project (copy supplied to data room visitors • Workstation Project (SMT Kingdom)

14. Data Rooms Sao Tome Data Room Open now UK Data Room Open now • Key Technical Reports (Paper & pdf) • Technical Reports (pdf) • SMT Kingdom Project • Limited seismic displays Data Room Rules Apply

15. Technical Summary • 7 offshore blocks available in round • Located in deep water of hydrocarbon rich Gulf of Guinea • Traps identified in region are both structural and stratigraphic • Ubabudo-1 well onshore, offshore region undrilled • Potential reservoirs proven onshore, seeps on and offshore • Prospective acreage, currently unlicensed

16. Low relief structures, fracture zone drape and stratigraphic traps to south of toe thrust zone Major Tertiary fan systems Dominantly Cretaceous fan systems derived from Eq. Guinea margin Cretaceous structural traps and drapes over fracture zones with sediment derived from the Gabon and EG margin STP - Play Fairways Distal toe thrusts of the Niger Delta JDZ EEZ

17. Regional line (W-E Line) 5 km

18. Drape over tilted fault block Brightening on structure Brightening on structure 5 km

19. São Tomé and Príncipe Seeps • Cretaceous oil is currently seeping in to this concrete emplacement of an artesian well on São Tomé. • Natural oil seeps from both islands belong to separate oil families, although similar in appearance and viscosity. • São Tomé similar to Azile and Anguille Fm sourced oils in Gabon. • Seeps in Príncipe more mature. • Slicks observed offshore Príncipe Gas escaping at Ubabudo-1

20. Reservoir • Good quality sands have even been deposited as far south as Sao Tome. This slide shows some outcropping quartzose sands on the island together with a well drilled through several hundred metres of sands alternated with shales and volcanics, tentatively equivalent to the Agbada Formation.

21. Model PSC PRODUCTION SHARING CONTRACT Applicants should take due notice that the PSC is based on an administrative law in which a specific number of fiscal elements are non-negotiable. Exploration Period The Exploration and Appraisal period is 8 years, split in to three phases: • Phase 1 – four (4) years • Phase 2 – two (2) years • Phase 3 – two (2) years Production Period: • 20 years with possible 5 year extensions for economic depletion

22. www.stp-eez.com

23. Houston – Road Show Presentation • Houston Presentation Thursday April 15th • At PGS Houston Office • Invitations on the Sao Tome & PGS Stands • Houston Data room available

24. STP 1st Licensing Round • INTRODUCTION • THE COMPETENT AUTHORITIES • LEGAL & FISCAL DOCUMENTS • APPLICATION REQUIREMENTS & FEES • APPLICATION DOCUMENT • SUBMITTING AN APPLICATION • BID EVALUATION CRITERIA • PROCEDURE FOR ASSESSMENT • TECHNICAL DATA AVAILABILITY & ACCESS • FURTHER INFORMATION All information is available from www.stp-eez.com

25. We welcome you in São Tomé and PrincipeLicense Round closes on the 15th September 2010