Gas‐to‐Power

Madagascar

Updated, April 2009

DisclaimerDisclaimerThi t ti h ld t b li d t ti f tt th t t ti l i t th iThis presentation should not be relied upon as a representation of any matter that a potential investor or theiradviser should consider in evaluating the Company. Potential investors must make their own independentassessment and investigation of the matters contained herein and should not rely on any statement or theadequacy or accuracy of the information provided. The Company and its related bodies corporate or any of itsdi t t ffi l d t k t ti t i li d tdirectors, agents, officers or employees do not make any representation or warranty, express or implied, as tothe accuracy or completeness of any information, statements or representations contained in thepresentation, and they do not accept any liability whatsoever (including in negligence) for anyinformation, representation or statement made in or omitted from this presentation.

This presentation may contain forward looking statements that are subject to risk factors associated with theoil and gas businesses. Based on currently available information, the Company believes that the expectationsreflected in these statements are reasonable but they may be affected by a variety of variables and changes inunderlying assumptions which could cause actual results or trends to differ materially, including but not limitedto: price fluctuations, actual demand, currency fluctuations, drilling and production results, reserveestimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal andregulatory developments, economic and financial market conditions in various countries and regions, interestand foreign exchange rates, availability of capital, political risks, project delay or advancement, approvals andcost estimates.

Investors should undertake their own analysis and obtain independent advice before investing in MocohInvestors should undertake their own analysis and obtain independent advice before investing in MocohResources.

2

Table of ContentTable of Content

1 E ti S1. Executive Summary2. Mocoh SA3 Mocoh Resources Ltd3. Mocoh Resources Ltd4. Manja Block 31085. Sikily Welly6. Gas to Power7. Economics8. Benefits for Madagascar9. Proposed deal structure10 C l i10. Conclusion11. Contact details

3

Executive SummaryExecutive SummaryThe opportunity exists to gain a significant, negotiable interest and operatorship in the Manja 3108License to develop a Gas‐to‐Power project for the regional supply of energy to Madagascar. This isthanks to the discovery of gas reserves at the Sikily‐1 well (southern part of the block).

The project requires:

t l ( f b l f l )– 1st milestone (pre‐feasibility finalization): USD2.5M

– 2nd milestone (full feasibility): USD10M

– 3rd milestone (construction and production) USD15M

The current costs simulation demonstrates a power production cost of between 15‐20 UScents/KWh, whereas the National electricity company Jirama is buying it from other producers at37‐67 US cents/KWh.

The key benefits of the project to Madagascar are:

1. Improved supply of energy2 Significant reduction in cost of energy2. Significant reduction in cost of energy3. Improved power distribution4. Environment friendly (natural gas vs. heavy fuels)5. Development of regional industriesp g6. Increase in local employment7. Reduced foreign exchange exposure

4

Mocoh SA Company ProfileMocoh SA Company Profile• Headquarters in Geneva

• African focused trading company

• Trading activities: 30 employees

• Madagascar activities: 35 employees, includingtwo geologists

• Has offices in Switzerland, United Kingdom,Madagascar, South Africa, Kenya, Nigeria,Tanzania, Turkey

• Turnover of just under USD 1billion in 2008

• Buys , Sells and Distributes Products and Crudeof just under 1MMT in 2008

O t d d li d t d d i• Operates and delivers product and crude inKenya, Sudan, Uganda, Tanzania, Malawi, Zambia,Zimbabwe, Mozambique, Madagascar, Comoros,South Africa, Namibia, DRC, Congo, Nigeria,, , , g , g ,Ghana, Morocco, Tunisia, Libya, Algeria and mostEuropean countries and the Middle East

• Is registered and trades with all the major oilcompanies and National Governments

• Has lines of credit with many of the large TradeFinance banks. 5

Company Structure

M h R Ltd

Company Structure

Mocoh Resources LtdOwns 100% of

Amicoh Resources LtdAmicoh Resources LtdOwns 100% of

Manja 3108 PSAj

d d f l

6

Expenditure  to date of approximately USD 8M

Board of DirectorsBoard of DirectorsMichael has more than 28 years experience in the oil industry and has been highly successful in establishingand managing new businesses in competitive markets. Prior to Mocoh, he was the Managing Director ofV l I i l L d i i l di d h bli h d E P l

Michael HackingDi t Vanol International Ltd, an international trading company and then established Engen Petroleum

International Ltd, the international division of the integrated downstream South African refining company.Michael holds a BA from Cape Town University and an MBA from IMD Business School in Switzerland.

Oli i h l i i th i i d il i d t i H i tl di t f M h R

Director

Olivier has a long experience in the mining and oil industries. He is currently a director of Mocoh Resources,a former Non Exec. Director of Anzon Energy Ltd, an Australian oil & gas company listed on the Australianstock exchange with a net worth of US$600myn and recently bought by ROC Oil. He is a former director ofthe Energy Derivatives group at Total Fina Elf and worked as a senior executive at Elf Trading and CreditLyonnais in SE Asia, Russia & CIS, and Central and Eastern Europe. He has served as a director in bio tech andhigh tech medical companies.

Olivier FricDirector

David has worked on several mining projects in North America and Latin America. Before Mocoh he workedfor Caterpillar first as a Marketing Consultant in North America, then as Allocation Manager to theEurope, Africa and Middle East (EAME) markets. David holds an MSc in Metallogeny at the University ofG P t d t d i Mi i d E i t l E i i t EPFL d P l t h i f

David TripodiDirector

Geneva, a Postgraduate degree in Mining and Environmental Engineering at EPFL and Polytechnic ofMontreal, and a certificate in Entrepreneurship at EPFL and HEC Geneva.

Willy has a very good knowledge of themining and hydrocarbon sectors in Madagascar with nearly 30 yearsof professional experience About 10 years working with Office des Mines Nationales et des Industries

Willy Ranjatoelinaof professional experience. About 10 years working with Office des Mines Nationales et des IndustriesStratégiques (OMNIS) including five years as a Director in charge of supervision of new ventures of jointventures companies and the promotion of oil exploration in Madagascar. Then, nine years as GeneralManager of the mining company KRAOMITA MALAGASY (KRAOMA) dealing withproduction, beneficiation, export and marketing of chrome ore. Followed by 10 years as an administrator ofcompanies in the private sector and local representation of several Anglo‐Saxon companies operating in thei i t (B iti h G l i l S F Ai b G h i t ) d i th fi ld f il l ti

Director

mining sector (British Geological Survey, Fugro Airborne Geophysics, etc…) and in the field of oil exploration(Amicoh Resources Ltd). Mr. Ranjatoelina holds a diploma in Political Sciences from the Institut d’EtudesPolitiques Paris, as well as a certificate in Petroleum Management from Massachusetts Education Institute –Arthur D. Little Inc. in Cambridge, USA. 7

Technical TeamTechnical TeamPeter Mikkelsen is a geologist with 32 years of upstream oil industry experience, including 15 years atPeter Mikkelsen g g y p y p g yexploration manager level or equivalent. He received a Bsc (Hons) degree in Geology from OxfordUniversity in 1976. He then joined Carless Exploration Ltd, working on its UK onshore and offshoreportfolio and was primarily responsible for onshore discoveries in the early 80s. He became VP ofExploration of Carless’ US subsidiary in 1986 and then returned to the UK to join Brabant in 1988. Asexploration director he was involved in a number of North Sea discoveries including Malory Hannayexploration director, he was involved in a number of North Sea discoveries, including Malory, Hannayand Goldeneye, together with an expansion of Brabant’s international portfolio into Europe and Tunisia.He is non‐executive Director of Rift Oil Plc, where he participated to the discovery of high quality gasreservoirs with the Puk‐Puk project in Papua New Guinea.

Alain was the senior exploration geophysicist and geologist for Elf Aquitane from 1987 to 1996, whenhe created his own company Radar Technologies France. He has been involved in Oil and Gasexploration in the Congo, Kurdistan, Kazakhstan, France and Madagascar. He was General Secretary forElf in Congo. During his career, Alain has made several discoveries of oil, gas and mines in Africa, Middle‐East and France. Alain has been involved in the Sikily project in 2008, when he undertook a

Alain Gachet

ast a d a ce a as bee o ed t e S y p oject 008, e e u de too athermographic field survey of the Sikily‐1 well area. He is an Ingénieur des Mines in Atomic and Nuclearphysics.

J i f i f H d Q éb d h M i Di D f Ji hJacques is a former executive from Hydro‐Québec and he wasManaging Director Deputy of Jirama, theNational electricity company in Madagascar. He has created his own company Zéphyr, working on thedevelopment of power projects in Madagascar and he is also the RSW country representative.

Jacques Paradis

8

Manja 3108Manja 3108

h’ d di d f h f i k b h l• Mocoh’s understanding and coverage of the African market brought severalinvestment opportunities. One such project is the very exciting upstream block onthe west coast Madagascar – Block 3108 Manja

• Large Oil companies present in Madagascar are Exxon Mobil, Total, Tullow, Essar,Niko Resources, ROC Oil

• Manja consists of 3 opportunities:

h ( l l d )– North East (Oil Exploration Leads)

– Central (Oil Exploration Leads)

– South (Gas Discovery at Sikily‐1 Well)

• Mocoh’s strategy is to focus on the Sikily gas discovery for Gas‐to‐Powerdevelopmentdevelopment

9

Permit LocationPermit Location

Permit area 10,725 km²

10

Manja 3108Manja 3108

h’ d di d f h f i k b h l• Mocoh’s understanding and coverage of the African market brought severalinvestment opportunities. One such project is the very exciting upstream block onthe west coast Madagascar – Block 3108 Manja

• Majors present in Madagascar are Exxon Mobil, Total, Tullow, Essar, NikoResources, ROC Oil

• Manja consists of 3 opportunities:

h ( l l d )– North East (Oil Exploration Leads)

– Central (Oil Exploration Leads)

– South (Gas Discovery at Sikily‐1 Well)

• Mocoh’s strategy is to focus on the Sikily gas discovery for Gas‐to‐Powerdevelopmentdevelopment

11

Existing Seismic and Well LocationsExisting Seismic and Well Locations

Sikily‐1Gas‐to‐Power 

5 exploration wells and 4,141 km of seismic data (the profiles in dark blue, 2,108 km, have been reprocessed by Amicoh)

Work CompletedWork Completed• Historical:

– Gravi/Mag data– 4,141 km of 2D Seismic data– 5 wells drilled

3 i th 1950 SPM (S iété d Pét l d M d )• 3 in the 1950s SPM (Société des Pétroles de Madagascar) • 2 in the 1970s/80s (Chevron and Amoco).• These wells were not drilled deep enough at that time to penetrate the main Isalo sand objective• Sikily‐1 (1954) discovered gas in a Mid/Lower Jurassic formation, testing at 2.65 mmcf/d

• Amicoh:– Satellite imagery (tectonics evaluation)

i i i i h i i– Gravity interpretation with existing AeroMag– Geochemical field study– Reprocessing of 2,108 km of 2D seismic (1980’s Amoco)– Acquisition of 218 km of new 2D seismic by BGP in Nov 07– Acquisition of 218 km of new 2D seismic by BGP in  Nov 07– Final migrated sections with Kelman in June 08– Thermographic survey of the Sikily‐1 well area– Pre‐feasibility study of Gas‐to‐Power project (in progress)y y p j ( p g )

13

Sikily 1 WellSikily‐1 Well

• Sikily‐1 well was drilled in 1954 by SPM (Société des Pétroles de Madagascar) on a mappable f f fi d l (1955 56) i i hi hsurface feature, confirmed later (1955‐56) on a gravimetric high

• This well tested gas in Mid‐Jurassic or Liassic from 1417 m to 1424 m and from 2609 to 2619 m with a cumulated potential pay zone of 11 5 mm with a cumulated potential pay‐zone of 11.5 m

• The well produced 75 000 m3/d of gas (2.65 MMscf/d) which was of reasonable quality, with 92 97% C1 with small quantities of N and CO92‐97% C1 with small quantities of N2 and CO2

• The gas decreased by 0.9 MMCFGPD after 23 hours. Nevertheless, this well was unable to reach the initial Isalo sandstones objectivereach the initial Isalo sandstones objective

14

Sikily Thermographic SurveySikily Thermographic Survey • Based on surface projections of  deep thermal anomalies;

• The elongated structural block hosting Sikilhy‐1 well (used for thermographic calibration), is characterized by a cold sub‐surface anomaly of 21 km² which corresponds most likely, to the size of the gas field itself;

• Discover of another cold anomaly covering 12 km²matching another antithetic structure;

• The boundaries of these cold anomalies are bordered by a hot rim (+4°C) matching the fracture patterns detected by radar;

• Traces of hydrothermal activities were detected 10 km on the South West of Sikily well, on the boundary of the Manja permit (hot springs and dolerites in Rano Mafana, along the Mangoky river);

• We can expect the presence of hydrocarbons over a compact area of 33 km² with possible connections between two main gas structures;

15

Recoverable gas reserves are 46 BCF with a potential of 1 TCF

Gas‐to‐Power Project

Mocoh will be using the gas discovered in the Sikily‐1 well (southern part ofthe Manja 3108 block) for the regional supply of energy through the

j

the Manja 3108 block) for the regional supply of energy through thedevelopment of the Sikily Gas‐to‐Power project.

1. Gas Extraction 2. Power Generation 3. Power Supply‐ Toliara Region (Jirama, AERP)‐ Total Heavy Oils Extraction‐Mining Companies‐ Development of new Industries

Natural Gas Power

Power stations fired by natural gas will be a major part of the future’s lower‐carbon economybecause natural gas is the cleanest fossil fuel available. When used in power generation, gas‐firedpower typically produces 50 percent less carbon dioxide than conventional coal‐fired plants.

Gas fired power plants run with the help of gas turbines, which are similar to airplane engines.Compressed air is forced into combustion chambers, where it mixes with natural gas fuel. Themixture is then burned, making combustion gas. This hot gas expands through the turbine, and itsheat energy drives a generator, producing cleaner electricity. Plant fitted with co‐generationtechnology has an added benefit as some of the steam can be used to supply nearby industry.S l i h t d t th lik thi i hi hl ffi i t tti ll f l

16

Supplying heat and power together like this is highly energy‐efficient, cutting overall fuelconsumption and carbon dioxide emissions.

(source, BP website: www.bp.com )

EconomicsEconomicsGas Price Power Price* Required Gas Max Plant Capacity

$/Mcf $/KWh BCF MW

Case 1 14.4 0.11 8.2 5 - 11

Case 2 9 1 0 07 32 6 27 - 37

* conversion factor of 1Mcf = 301KWh, power production efficiency hypothesis is 44%

Case 2 9.1 0.07 32.6 27 - 37

Case 3 8.3 0.06 47.8 44 - 54

INPUT 

• Capex:– Well Costs: US10M/well

OUTPUT

Gas Price (assuming NPV = 0):1. Case 1: 14.4 US$/MScf

– Production Facilities:1. Case 1 (2MMScf): US$12M

2. Case 2 (5MMScf): US$16M

3. Case 3 (8MMScf): US$20M

2. Case 2: 9.1 US$/MScf3. Case 3: 8.3 US$/MScf

Not integrated in the present model:• Opex:

1. Case 1 (2MMScf): US$2M/y2. Case 2 (5MMScf): US$3M/y3. Case 3 (8MMScf): US$4M/y

g p– Transportation Capex and Opex

17

( ) $ y

• Other Costs:– Royalty: 8%

Work Programme Until Production

1. Pre‐Feasibility Study (Year1)1. Pre Feasibility Study (Year1)– Acquisition of 50‐60 km of 2D seismic in the Sikily area (USD 2M 

for Year1)

2. Full Feasibility– Test well to properly assess size and production rates (USD 10M– Test well to properly assess size and production rates (USD 10M 

for Year2)

– Review overall projects economics (Year2)

3. Construction (Year3‐Year4)

4. Beginning of Production (Year5)

18

Work Program Year 1 – Time LineData compilation, ongoing evaluation, data acquisition

Budget Item Q1 Q2 Q3 Q4

Amicoh visit to OMNISAmicoh visit to OMNIS

Re-interpret additional information from BP

Overall Review of existing data

G&G work to reassess block

Sikily Pre-Feasibility Study

Thermal Imaging

Acquisition of 2D Seismic

Interpretation of new seismic

Well evaluation & planning

Basin modelling StudiesBasin modelling Studies

Supplementary data gathering trips to Manja

Ongoing analysis of the geology of the block

19

Budget Year 1

Q1 Q2 Q3 Q4 Total

USD USD USD USD USD

LICENCE COSTS

Administration Fee 100 000 100 000Administration Fee 100,000 100,000

Training Fee 50,000 50,000

Sub Total 150,000 150,000

WORK PROGRAM

Sikily Pre-Feasibility Study 90,000 90,000

Thermal Imaging 200,000 200,000 400,000

Manja 2D Seismic 1,000,000 1,000,000

Seismic Reprocessing 15,000 15,000

Well Planning 20,000 20,000

Sub Total 105,000 200,000 200,000 1,020,000 1,525,000

GEOLOGY & GEOPHYSICS

G&G interpretation of existing data 80,000 80,000 80,000 80,000 320,000

Sub Total 80,000 80,000 80,000 80,000 320,000

IN COUNTRY OFFICE COSTS

Antananarivo Office 9,000 9,000 9,000 9,000 36,000

Sub Total 9,000 9,000 9,000 9,000 36,000

TRAVEL

Management visits to Madagascar 16,000 16,000 16,000 16,000 64,000

Sub Total 16 000 16 000 16 000 16 000 64 000Sub Total 16,000 16,000 16,000 16,000 64,000

TOTAL COSTS 360,000 305,000 305,000 1,125,000 2,095,000

20

Benefits for MadagascarBenefits for Madagascar

• Improved supply of energy

• Significant reduction in cost of energy

• Improved power distribution

• Environment friendly (natural gas vs. heavy fuels)

• Development of regional industries

• Partnership with world class companies and key stakeholders( )(Jirama)

21

Improved Supply of EnergyImproved Supply of Energy

• Presently fuels are brought into Madagascar through private companies• Presently fuels are brought into Madagascar through private companieswho are also the distributors of gasoil and gasoline through their petrolstations

• These companies have no incentive to reduce cost

• Their margins are high and the cost of fuels are some of the highest inAfricaAfrica

• These products are imported from the AG by tanker into Tamatave

• On discharging, losses occur

• Storage losses, handling fees, forex fees, insurance and general financefees, are all loaded on to the cost of energy

• This product is then re‐loaded on to a vessel which does the circuit of theThis product is then re‐loaded on to a vessel which does the circuit of theisland to discharge to all the various ports around the island eventuallyarriving to Tulear on the South West side of the island.

h f h l h h f h• The cost of this product is extremely high for the end consumer

22

Significant Reduction in Cost of EnergySignificant Reduction in Cost of Energy

The cost of electricity produced from this gas project willb b i ll l h hbe substantially lower than the present cost.

Our current understanding is a production cost ofelectricity of 15‐20 US cents/kWh, whereas Jirama isbuying it from other producers at 37 67 US cents/kWhbuying it from other producers at 37‐67 US cents/kWh.

23

Improved Power DistributionImproved Power Distribution• Madagascar power mostly generated by external and cost intensive 

resources

• No interconnected transmission grid in Madagascar

JIRAMA t ll id d 3 j b t• JIRAMA operates small grids around 3 major urban centres:

• Antananarivo‐Antsirabe (70% of Madagascar electricity consumption),

• Toamasina,

• Fianarantsoa

Transmission Grids

Fianarantsoa

• Rest of the country served by stand‐alone systems (not all 24hr service)

• Installed grid capacity: 140MW, insufficient with load shedding of at least 10MW occurring at peak demand times

• Due to low demand levels and large distances between load centres local• Due to low demand levels and large distances between load centres, local stand‐alone supply systems still remain the least‐cost solution for supply in the majority of areas

The Sikily gas represents a clean alternative for a gas‐fired power

Manja 3108The Sikily gas represents a clean alternative for a gas‐fired power

plant to substitute high‐cost power generation24

3108

Environment FriendlyEnvironment Friendly (source: www.naturalgas.org) 

• Natural gas is an extremely important source of energy for reducingNatural gas is an extremely important source of energy for reducingpollution and maintaining a clean and healthy environment. In addition tobeing a domestically abundant and secure source of energy, the use ofnatural gas also offers a number of environmental benefits over othernatural gas also offers a number of environmental benefits over othersources of energy, particularly other fossil fuels.

• As well as providing an efficient competitively priced fuel for the generationAs well as providing an efficient, competitively priced fuel for the generationof electricity, the increased use of natural gas allows for the improvementin the emissions profile of the electric generation industry.

• Essentially, electric generation and industrial applications that requireenergy, particularly for heating, use the combustion of fossil fuels for thatenergy. Because of its clean burning nature, the use of natural gaswherever possible, either in conjunction with other fossil fuels, or instead ofthem, can help to reduce the emission of harmful pollutants.p p

25

Key PartnersKey Partners

• Jirama, Madagascar National Electricity Companyp y

• Caterpillar, Switzerland & Madagascar

• RSW Canada• RSW, Canada

• IPA Economics, Abu Dhabi

• Mada‐Hydro, Madagascar

26

Proposed Deal StructureProposed Deal Structure

• Mocoh Resources is prepared to offer 20% of its shares in Amicoh forUSD 2.5M

• During 2010‐2011, on the anticipation of a positive pre‐feasibility study,Mocoh Resources will raise a further USD 10M offering 30% of Amicoh,to drill one well

• Debt financing will be sought for the final investment in gas generators• Debt financing will be sought for the final investment in gas generators

27

CONCLUSIONThe Sikily Gas‐to‐Power project responds to many of the environmental and social investment criteria for NGO’s and commercial investors:

I d l f• Improved supply of energy

• Significant reduction in cost of energy

• Improved power distribution

• Environment friendly (natural gas vs. heavy fuels)

• Development of regional industries

• Increase in local employment• Increase in local employment

• Reduced foreign exchange exposure

• Madagascan gas for the people of Madagascar

The commercial upside for the investor is the opportunity of the substantial oil reserves in the north and central part of the block.  The work that has been done creates a world  class opportunity.pp y

Interested companies will be required to sign confidentiality agreement, and will then be invited for presentations, and to  view the technical information in detail on a Kingdom work‐station. 

We would be delighted to speak with interested parties at your  convenience 28

CONTACT DETAILS

David Tripodi Tel + 41 22 310 9401David Tripodi Tel: + 41 22 310 9401

14, Rue Etienne‐Dumont Fax: + 41 22 310 5245

1204 Geneva ‐ Switzerland email: david.tripodi@mocoh.ch

or

h l k lMichael Hacking Tel: + 41 22 310 5244

14, Rue Etienne‐Dumont Fax: + 41 22 310 5245

1204 Geneva ‐ Switzerland email: michael.hacking@mocoh.ch