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Old Harry 8 Apr 2011
Old Harry 8 Apr 2011
Old Harry 8 Apr 2011
April 8, 2011
Disclaimer
Forward Looking Statements
This presentation contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements"). All statements other than statements of historical fact are forward-looking statements. Forward-looking information typically contains statements with words such as "anticipate", "believe", "plan", "continuous", "estimate", "expect", "may", "will", "project", "should", or similar words suggesting future outcomes. In particular, this presentation contains forward-looking statements pertaining to the following: characteristics and potential of Old Harry; next steps to be undertaken by Corridor, including holding public consultations, preparing and filing with C-NLOPB an environmental assessment, timing of the assessment; regulatory approval of the exploration program; and the proposed exploration program at Old Harry, including well location, well design, type of drilling rigs to be used, logistical support, timing of drilling, practices to be followed, and potential issues associated with the program and potential mitigation of such issues. Forward-looking statements are based on Corridor's current beliefs as well as assumptions made by, and information currently available to, Corridor concerning business prospects, strategies, regulatory developments, future natural gas and oil commodity prices, exchange rates, the ability to obtain equipment in a timely manner to carry out development activities, the impact of increasing competition, the ability to obtain financing on acceptable terms. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Undue reliance should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions, and are subject to known and unknown risks and uncertainties (both general and specific) that contribute to the possibility that the future events or circumstances contemplated by the forward-looking statements will not occur. There can be no assurance that the plans, intentions or expectations upon which forward-looking statements are based will in fact be realized. Actual results will differ, and the difference may be material and adverse to Corridor and its shareholders. These factors include, but are not limited to risks associated with oil and gas exploration, financial risks, substantial capital requirements, bank financing, government regulation, environmental, prices, risks may not be insurable and reserves estimates. Further information regarding these factors and additional factors may be found under the heading "Risk Factors" in Corridor's Annual Information Form for the year ended December 31, 2010 and its most recent management's discussion and analysis, copies of which is available at www.sedar.com. The forward-looking statements contained in this presentation are made as of the date hereof and Corridor does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.
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Presentation Outline
Overview of Corridor Resources. History of oil and gas exploration in the Gulf of St. Lawrence. Hydrocarbon potential of the Old Harry reservoir. Summary of Geohazard Survey results. Overview of Corridors proposed exploration well within EL1105 in the
Newfoundland and Labrador offshore area.
Potential for economic benefits from the oil and gas industry. Summary and conclusions.
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Eastern Canadian energy company. Main Project Areas: Natural gas production, New Brunswick; Petroleum exploration, New Brunswick; Old Harry exploration, Gulf of St. Lawrence; Oil exploration, Anticosti Island, Quebec; and Natural gas potential, Prince Edward Island.
Strong management and technical team with onshore and offshore experience.
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Quality, Health, Safety and Environment policies and procedures are in place to support this mandate. 5
Core Element
Commitment QHSE Policies Hazard Identification, Risk Assessment and Risk Control Legal and Other Requirements Objectives and Performance Targets Management Plans Resources Roles and Responsibilities Training, Awareness and Competency Communication and Consultation Operational Control Management of Change Contractor Management Emergency Preparedness and Response Documentation and Records Monitoring and Measurement Accidents, Incidents and Nonconformances Audits Review and Continual Improvement
Consistent internal standards that govern all our operations. Focus on continuous improvement. Based on ISO international standards for environmental management, occupational health and safety and quality.
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Plan
Implement
Check Review
Old Harry was first identified in the early 1970s. Corridor Old Harry activities:
1996 - acquired Old Harry exploration licences; 1998 / 2002 - new seismic; and 2010 - geohazard survey.
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Maritimes Basin:
Mid-Devonian to Permian age; About 280-390 million years old; Rock layers in the basin are mostly sandstone and shale; Mostly terrestrial (land derived) sediments; and One marine rock layer Windsor Group limestone, gypsum and salt.
Petroleum System
Basic Elements of a Petroleum System
Source: http://geoinfo.nmt.edu/faq/energy/petroleum/Petroleum_geology_intro.pdf
Trap place where oil and gas can accumulate. Seal shale that prevents the escape of oil and gas from the trap. Reservoir Rock porous rock (sandstone at Old Harry) that can hold hydrocarbons. Source Rock shale rich in organic material.
Maritimes Basin
Old Harry is located in a large sedimentary basin.
Covers most of the southern Gulf of St. Lawrence. Old Harry is in the NE part of the basin. Colours represent depths to the bottom of the basin. Historic well locations indicated by small black circles.
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Salt
Salt
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Use of the Brion Island Well to predict Old Harry Reservoir Rocks
The rocks in the Brion Island well were used because this well is closest to Old Harry.
DST
Zone
10 metres of sand tested with a bottom-hole drill stem test (DST). Filled 1500 metre well bore with salt water from reservoir in 45 minutes (= very good result). The results showed that these sands are capable of producing oil or gas, even though the zone was filled with water. These reservoir parameters were used to assess the hydrocarbon potential of Old Harry.
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Type I
Oil prone
Dead plants and animals (organic material) are converted to oil and gas when buried deep in the Earth. Shale containing abundant organic material are called source rocks. Geologists study the organic material in source rocks to assess whether oil or gas could be generated. The diagram at left can be used to classify source rocks:
Type II
Gas prone
Type III
Type I oil prone; Type II oil or gas prone; and Type III gas prone.
Most source rocks in the Maritimes Basin are Type III with minor Type II.
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Detailed geochemical studies were completed on the source rocks of the Brion Island well:
Newfoundland
Magdalen Islands
P.E.I.
These studies indicate that, at the immature stage, most source rocks in the Brion Island well belong to the oil and gas prone Type II-III organic material. These Type II-III organics could potentially produce oil and gas.
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A specialized computer model was used to simulate the burial history of the Brion Island Type II-III source rocks to assess the type of hydrocarbons at Old Harry. Results from Model: The model indicates that oil and natural gas could be trapped at Old Harry. The most likely oil is a very light oil with an API gravity of 45-55o API.
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Crude Oil
Light Crude > 28o API + Heavy Crude < 28o API
Bitumen
Hydrocarbon Indicators
Satellite Seepage Slicks Frequency Anomaly
Flat Spot
AVO Anomaly
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Seafloor Bathymetry
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Date
Side-scan Sonar
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10 m
PROXIMAL GLACIOMARINE
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10 m
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A decision was made to submit a Project Description to start the regulatory approval process for an exploration well.
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The well will be located within the Laurentian Channel about 80 km WNW
from Cape Anguille, NL.
The approximate water depth is 470m. The proposed well coordinates are in the vicinity of Latitude 480305.294 and Longitude 602339.385 (NAD83 datum, geographic coordinates). Drilling is anticipated to take place between mid-2012 and early 2014, depending on rig availability and regulatory approvals.
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Three possible options: Moored semisubmersible; Dynamically positioned semisubmersible; and Dynamically positioned drill ship.
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Diagram is not to scale. Similar well design to wells currently drilled on Grand Banks. Shallow vertical well with a total depth planned of up to 2200 m below sea floor.
476mmSubseaBOP
914mmHoleDrilledto90mBSF 762mmCasing
660mmHoleDrilledto(300600m)BSF 508mmCasing
444mmHoleDrilledto(8001200m)BSF 340mmCasing
311mmHoleDrilledto(20002200m)BSF 245mmCasing
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Note: C-NLOPB conducted a Strategic Environmental Assessment of the Western Newfoundland and Labrador Offshore Area (LGL, 2005) and its Amendment (LGL, 2007), prior to issuing EL 1105 to Corridor.
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Environmental Assessment Document Examples of key components (complete list to be defined in scoping document) Commercial fisheries Sensitive areas Species at risk Marine ecosystem * The C-NLOPB Final Scoping Marine fish and shellfish Document will outline the to be included and Marine mammals and sea turtles components how the Environmental Assessment is to be prepared. Marine and/or migratory birds Physical environment Accidental events Use of the marine environment 32 Cumulative effects
Design and implementation of an Environmental Protection Plan. Design and implementation of a Waste Management Plan. Adherence to the Offshore Waste Treatment Guidelines. Design and implementation of contingency plans. Use of environmental criteria (to minimize emissions) in the
selection of equipment.
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Acts
Canada-Newfoundland Atlantic Accord Implementation Act Canada-Newfoundland and Labrador Atlantic Accord Implementation Newfoundland and Labrador Act Canadian Environmental Assessment Act Oceans Act Fisheries Act Navigable Waters Protection Act Canada Shipping Act Species at Risk Act Migratory Birds Convention Act Canadian Environmental Protection Act
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Drilling and Production Regulations Certificate of Fitness Regulations Oil and Gas Debris and Spills Liability Regulations Petroleum Installation Regulations Safety Plan Guidelines Environmental Protection Plan Guidelines Drilling and Production Guidelines Physical Environmental Program Guidelines Offshore Waste Treatment Guidelines Incident Reporting and Investigation Guidelines Data Acquisition and Reporting Guidelines Compensation for Damages Guidelines Financial Responsibility Requirements Guidelines
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Letter of Compliance for the MODU and each Casing and Wellhead Pressure standby vessel Testing Evidence of Financial Responsibility Benefits Plan Operators Declaration of Fitness BOP Configuration BOP Pressure and Function Testing
(Refer to C-NLOPB website for details)
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At each stage, a decision is made on whether or not to progress to the next stage.
Seismic
Drilling
Delineation
Evaluation
Board Decision
Project Sanction
FEED
Development
Production
Benefits: Degree of economic spin-off increases with color depth, with the development and production phases generating the most local benefits.
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Benefits that the Oil and Gas Sector can bring to a Region
Opportunities for local businesses. Spending on research and development. Education enhancements. Training enhancements. Infrastructure development (e.g., construction, fabrication, supply
service, etc.).
Jobs/Employment. Royalties and taxes paid to government revenues support social and
other programs in a province (e.g., hospitals, schools, etc.).
Example of Benefits from the Offshore Oil and Natural Gas Industry for Eastern Canada
The Environmental Assessment will be available for review on the CNLOPB website.
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Questions or Comments
Thank You.
Toll Free: 1-888-429-4511 Email: info@corridor.ca
Website: www.corridor.ca
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