Arenite Prospex

The Maxwell Gasfield

“A Giant Hiding in the Open”

Mike Cooper, CEO, Arenite Petroleum 10th December 2015

Cleveland Basin

Incorporated Mar 14

Privately-owned E&P Company

Aberdeen-based

Current focus - Cleveland Basin (“onshore & offshore” sic.)

Assets:

About Arenite…....

Gasfield Maxwell (Zechstein) Five wells tested gas at significant rates

Cloughton (Carboniferous) Tight gas discovery

41/24

NTS Pipeline

0 10 20km

Arenite Petroleum Limited Acreage Position

SE99a&

TA09,2 & 3

Three stacked petroleum systems

North South

S

R

TR

S

R

T

S R T

S R T

After Roc Oil 2005

Cloughton-1

Plattendolomit (Brotherton) Hauptdolomit (Kirkham Abbey)

LIAS

MIDDLE JURASSIC

T

R

S

R

T

A Brief History of the Cleveland Basin Simplified

Preservation <> HC Generation & Re-migration

“All maps stop at the coast” (sic) D

ATA

GAP

DATA G

AP

? ? ?

Discovered 1969 (Total) Appraised 1981 (Total) Horizontal 1992 (Conoco)

“Small gas discoveries”

Little activity for last 23 years

Plattendolomit & Hauptdolomit Discoveries

Planned 3000ft horizontal well (41/24-3, 1992) drilled in a fault zone

•  Only drilled 370ft AHL.

•  Losses & kicks. Well killed 6 (six) times.

•  “Gunk” – Diesel, bentonite & cement.

•  Perfed only ~10% TVT of Plattendolomit.

Despite drilling issues, flowed 34mmscfgd & 1280bcpd

•  Pressure decline was evident.

•  DST reports by John Underwood (SRE), ERC & RPS all concluded a ~9.5Bcf connected GIIP.

The licence was relinquished.... but let’s relook at the geology....

Arenite & Europa awarded the block in late 2015.

The Way Forward - Horizontal Appraisal

Plattendolomit TWT map showing 41/24-3 horizontal well

Area – 0.88 km2

Connected GIIP (from DST) = 9.5 Bcf Right well. Wrong location.

41/24a-1

41/24a-2

41/24-3

41/24-1,2 & 3 within “blue” fault zone

A

A’ A A’

C41/19-19

Plattendolomit TWT Map

Dinantian

Bowland Shale

Millstone Grit

Westphalian

Hauptdolomit

Plattendolomit

Bunter

Rheatic

An intriguing graph in the Underwood 2005 Report

Bunter in 41/24-3 is hydrostatic (RFT’s)

Carboniferous

reportedly hydrostatic.

A ~5800ftss FWL yields an “apparent

overpressure” gradient of 0.71psi/ft to surface at top of Maxwell gasfield.

Regional Zechstein Hydrocarbon Occurrences (Incomplete)

Cuttings gas <0.5scf/min at 10bbl mud/min. Minor condensate & mineral fluorescence

Large Regional High

DAT

A G

AP

DATA G

AP

? ? ?

“All maps stop at the coast” - again

TO OUTCROP

TO O

UTC

RO

P

A map that does not stop at the coast…...

22

15

10

34

1

3

6

39

11

9

2.3

18

Discovery – no rates

18

Ralph Cross-1 Produced – no rates

Lockton Gasfield

Ebberston Moor

Gasfield

Eskdale Gasfield

Fordon Gasfield

Wykeham-1 discovery

Pickering Gasfield

Malton Gasfield Marishes

Gasfield

Kirby Misperton Gasfield

8

Top Plattendolomit TWT Map

34 DST flow rate (mmscfgd)

39 Production rate (mmscfgd)

Basin Architecture & Gas Column beneath Spill Point

After DECC, 2009

Cloughton-Maxwell High

Dinantian & Older 10km

1,768mSS

Post-Alpine exposure. Gas lost to atmosphere

Updip strat seal in tight carbonates Unlikely hydrodynamics

Lockton Anticline

Butterknowle Fault

Seaton Carew Fault

2500

0

Dep

th (m

ss)

2500

0

Dep

th (m

ss)

Vale of Pickering (VOP) Fault

Stratigraphic Trap Plattendolomit facies change to anhydrite in west. Hauptdolomit – TBC. More complex, near Carboniferous aquifer/FWL. Fill & Spill??

Carboniferous Cloughton Gasfield & 41/24 Prospect

Cloughton-1 Results

Intra-Namurian TWT Structure Map Roc Oil, 2005

GIIP - Conventional (Bcf)

580 Bcf GIIP

Roc Oil, 2005

Field Development Plan & Production Profile

Top Dinantian TWT Map

41/24

41/24a-2

SNS Carboniferous Field Analogues

SNS Carboniferous Field Size

Bunter nitrogen-rich gas discovery

Live oil shows at 180ftMD in Cloughton-1

Jurassic Oil Play

Regional Mesozoic HC Shows

Arenite is sponsoring a geochemistry MSc at Newcastle University in 2016.

41/24

NTS Pipeline

SE99a&

TA09

Summary

Onshore Carboniferous 84 Bcf Plattendolomit TBC Bcf Hauptdolomit: WIP

Unconventionals: “Multi-Tcf” GIIP

Offshore Plattendolomit TBC Bcf Carboniferous WIP Hauptdolomit: WIP

Bunter Gas Discovery (Nitrogen-rich heavy gas)

Jurassic Live Oil Lead Well TD: 200ft. Live Oil? Also Rhaetic Oil Shows

Block 41/24 Licence P.2304 28th Round Promote Licence

50%

50%

Dataroom open Jan-Feb 2016

Seek Experienced Operator & Promote. 50% equity available.

James Clerk Maxwell

1831-1879

Electromagnetism & Kinetic Theory of Gases

Acknowledgements

Roc Oil - High quality regional studies

Jamie Vince, M.Sc. Graduate Geologist

Work experience at Arenite

For more information:

Europa Stand 67

[email protected]