Block XXXI-36 Oil Exploration Project -South Central Kazakhstan
Gentech International Kazakhstan LLP is Operator of Block XXXI-36 ("Block 36") located in Kyzylorda Oblast, Republic of Kazakhstan. Block 36 lies on the Zhosaly Arch and is approximately 50 kilometers southwest of the southern margin of the prolific South Turgay basin. The block comprises an area of 1,313 sq. kilometers (324,460 acres or 500 sq. miles) and is considered a wildcat exploration venture. No deep wells have been drilled within the block however oil and gas shows are reported in shallow wells drilled by a regional Russian geological mapping expedition during the 1960’s. A modern soil gas geochemical survey has been completed that illustrates the overall distribution of surface hydrocarbon seepage.
Gentech acquired an 836 kilometer 2D seismic program on the project during 2008. This represents the first 2D seismic program ever acquired over Block 36. Seismic mapping has identified a total of seven (7) prospects within the block. During 2009, three (3) wildcat exploration wells are proposed to test several independent structural prospects and trap styles. The primary objective of each prospect is the Carboniferous platform carbonate sequence observed at depths ranging between 550 meters and 750 meters below the surface. Deeper secondary objectives residing in the older Devonian sandstones will also be tested as each well will be drilled to a total depth of 1,500 meters in order to penetrate the entire geologic column to basement as indicated by seismic data. The Carboniferous platform carbonates represent prolific production in Western Kazakhstan as demonstrated by the giant Tengiz and Kashagan fields.
A technical resource assessment recently completed by the independent consulting firm, RPS Scotia outlines an unrisked P50 project potential exceeding 575 million barrels of oil.
Gentech is seeking a partner to drill the initial test wells and to develop the block. Participation terms are available on request. Operations are available.
The block is open flat steppe offering an easy year round operational environment with no known environmental or logistical limitation which might impact drilling or production operations. Kyzylorda, approximately 60 km southeast of the block, will serve as base of drilling operations due to the fact that all necessary drilling and production support services are already in place there to support the ongoing activity at Kumkol, Aryskum, Akshabulak and many other fields operated by Petro Kazakhstan and others. Current well cost estimates indicate exploration wells can be drilled and completed for under $2.5 million USD.
A major rail line traverses the southwest corner of the block and runs parallel to the main highway from Kyzylorda to Dzhusaly. Two oil terminals are located at the railhead in the town of Dzhusaly allowing shipment of oil via rail to the refinery at Shymkent or to other export markets. Additionally oil is trucked from Dzhusaly to other markets in Kazakhstan. An oil pipeline traverses the northwestern quadrant of the block within 5-10 km of the proposed drilling locations. This pipeline is currently operated by Petro Kazakhstan and connects Aryskum field (110 km northeast) and the entire Turgay Basin pipeline network to the oil terminal in Dzhusaly.
Investment Climate
Kazakhstan was the first former Soviet Republic to repay all of its debt to the International Monetary Fund, in 2000, 7 years ahead of schedule. In March 2002, the U.S. Department of Commerce graduated Kazakhstan to market economy status under U.S. trade law in recognition of substantive market economy reforms in the area of currency convertibility, wage rate determination, openness to foreign investment, and government control over the means of production and allocation of resources.
In September 2002, Kazakhstan became the first country of the former Soviet Union to receive an investment-grade credit rating from a major international credit rating agency. Currently, the Republic of Kazakhstan is rated as investment grade by Standard & Poors (BBB-), Moody’s (Baa2) and Fitch (BBB).
In the 2009 "Doing Business" indicators published by the World Bank Group, Kazakhstan jumped 10 places, to 70th out of 181 countries. Kazakhstan ranked particularly well in categories relevant to hydrocarbon exploration and production, including registering property (25th), employing workers (29th), and enforcing contracts (28th).
Kazakhstan has stable relationships with all of its neighbors. Kazakhstan has signed Bilateral Investment Treaties with 36 countries. Kazakhstan accepts international arbitration and has signed the Convention on the Recognition and Enforcement of Foreign Arbitral Awards ("New York Convention"); the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention), and various commercial dispute resolution organizations.
A technical data room located at the RPS Scotia offices in Dallas, Texas USA is available for qualified companies to review the seismic and other supporting geotechnical data. A more detailed prospect brochure (subject to Confidentiality Agreement) can be reviewed by registering with Gentech online (www.gentechintl.com).
For additional information regarding participation please contact:
PMD International
Mr. Rex Pingle
410 Severn Avenue, Suite 310
Annapolis, Maryland 21403
USA
Office: 410-280-8873
Fax: 410-280-8874
pmd@pmdintl.com
Mr. Jenangir Masud
24-25 Nutford Place
London W1H5YN
United Kingdom
Office: 44-20-7792-2373
Fax: 44-20-7792-9920
pmd@pmdintl.com
DISCLAIMER
This presentation is not a solicitation of investment or an offer to sell securities. An Offering Memorandum is available upon request to Qualified Investors.
All information, maps, data, design, evaluation, estimation of resources or other analysis provided herein are interpretive. Gentech International Kazakhstan, LLP does not warrant the accuracy, suitability, quality, completeness or usefulness of any information, maps, data, design, evaluation, estimation of resources or other analysis provided herein for any particular purpose. The recipient hereby indemnifies and holds harmless Gentech International Kazakhstan, LLP, Gentech Resource Inc., their respective Directors, Officers, Shareholders and their consultants and advisors, for any use or reliance by recipient on all information, maps, data, design, evaluation, estimation of resources or other financial or technical analysis provided herein. The opportunity identified by this presentation is subject to prior placement, withdrawal or change without notice.