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Gallic Energy Ltd. (Public, GLC)
0.21 0.00
Why France?
France Assets
Geology
Ger Permit
Ledeuix Permit
Excellent Fiscal Terms
- No royalties until annual gas production >10.6 BCF, then 5% royalties
- Low sovereign risk
Supply/Demand Imbalance
- In 2009, France imported over 1.7 TCF of natural gas to support the country’s growing demand for energy
- Approximately 80% of France’s electricity production is generated from nuclear sources
Geographic Positioning
- Basin with prolific historical production, revitalization with new technology
- Premium gas prices in Europe vs. that of the U.S. and Canada
- Excellent infrastructure
Exploration Opportunities
- 2 permits acquired to date
- Opportunity to expand
France's Energy Profile
| Area | 640,053 km2 (land) |
| Comparative Area | Slightly less than Texas |
| '09 Population Est. | 64.7 million (rank 21st in world) |
| '09 GDP (US$ PPP) | $2.094 trillion (rank 9th in world) |
| Fitch Sovereign Risk Rating | AAA |
| '09 Proved Reserves | 101 MMBBLS / 250 BCF |
| '09 Daily Consumption | 1,875k BOPD / 4.75 BCF |
| '09 Daily Production | 18k BOPD / .085 BCF |
| '09 Gas Import Partners | Russia (30%), Norway (45%) |
| Royalty | No royalties until annual gas production >10.6 BCF, then 5% royalties |
Oil is sold at world market prices.
France Assets
| Award | Interest | Sq. Km | Acres | |
|---|---|---|---|---|
| Ger | Apr-08(1) | 100% | 514 | 127,012 |
Prospective Resources, Net(2)
| BCF | Low | Best | High | Avg.(3) |
|---|---|---|---|---|
| Conventional | 269 | 531 | 1,052 | 617 |
Conventional Resources Only
| CDN $ in mm | Low | Best | High | Avg.(3) |
|---|---|---|---|---|
| NPV-10, unrisked | $327 | $1,218 | $2,983 | $1,509 |
Source: Chapman Petroleum Engineering Ltd.’s Evaluation of prospective resources for the Company’s Ger permit as of 11/1/10
(1) Permit expires 5 years from award date
(2) Represent total of the Company's working interest before deduction for royalties
(3) Represents arithmetic average
Investment Highlights
- Two 100% operated blocks adjacent to Lacq and Meillon gas fields (11 TCF)
- Historical discoveries and production achieved on both blocks
- Excellent seismic and historical data
- Employing new exploration concepts
- Assets near major pipeline and infrastructure with capacity
- Resource evaluation only covers a small percentage of the prospective stratigraphic interval in one permit (Ger Permit - 531 BCF worth $1.2b(1)
(1)Represents best case prospective resources and NPV-10, net. Source: Chapman Petroleum Engineering Ltd.’s Evaluation of prospective resources for the Company’s Ger permit as of 11/1/10
Aquitaine Basin Geology
Introduction
- Triangular-shaped basin, representing ~13,500 square miles in size, located in Southwest France
- First gas discovery ’39, St. Marcet Gas Field
- Large fields Lacq and Meillon gas fields, representing 9 and 2 TCF ultimate reserves, respectively
- Majority of hydrocarbon pools are in carbonate reservoirs sourced by organic rich marine shales that range in age from Jurassic to Cretaceous
- Gallic is targeting bypassed gas in the Eocene to Lower Cretaceous conventional reservoirs
- Prior explorers ignored the lower-risk, shallow gas zones
Ger Permit
- 9 exploratory wells drilled (’66-’78)
- Ger 101 Eocene gas well
| Target depth | 3,790 meters |
| Date | ’75 |
| Tested (un-stimulated) | 9.6 mmcf/d |
| Cumulative production | 4 BCF |
| Gas composition | 98% methane |
| Remaining reserves | 1.1 BCF |
| Est. initial production rate | 1.1 mmcf/d |
Gallic's Approach
- Utilized existing area well reports, petrophysical well data, and 2D seismic to map a gas charged fairway within the silt and sand beds of the Eocene
- Obtained evaluation of prospective resources from Chapman Petroleum Engineering Ltd.
Ger 1 Re-entry
- In '68, Ger 1 was drilled to test the Jurassic (6,550 meters)
- Untested shallow Eocene produced gas shows:
- 3 meters of interpreted pay >20% porosity
- 32 meters of interpreted pay >10% porosity
Gallic's Approach
- Utilized existing area well reports, petrophysical well data, and 2D seismic to map a gas charged fairway within the silt and sand beds of the Eocene
- ‘11 Strategy: re-enter Ger 1 (CDN $4mm) for 5 BCF of prospective resources
- Contingent Strategy: acquire 100-150 sq km of 3D seismic (CDN $5.5mm-$8.3mm)
- Reprocessed 2D seismic and new 3D seismic will help differentiate between shale-only areas and sand-rich areas in the Eocene, significantly reducing development risk
Ledeuix Permit
| Award | Interest | Sq. Km | Acres | |
|---|---|---|---|---|
| Ledeuix | Aug-08(1) | 100% | 781 | 192,989 |
(1) Permit expires 5 years from award date
- Ledeuix-1 produced 4.1 BCF from the Lower Cretaceous
- Suacede-1 produced 1.8 BCF from the Jurassic Dolomite
Gallic's Approach
- Utilizing existing area well reports, petrophysical well data, and 2D and 3D seismic to map gas-charged section on fold and thrust belt structures
- Evaluating acquisition of Saucede well bore for potential re-entry
- Re-processed 180 sq km 3D seismic and interpreting data
- Purchasing and re-processing 2,100 km 2D seismic and additional 3D seismic
- ‘11 Contingent Strategy: acquire 60 km of high resolution, 2D seismic dip lines (CDN $3mm) and re-enter Saucede-1 well (CDN $2–4mm)
- Primary Targets: Cretaceous and Jurassic have multiple gas shows