Can you describe your company and say what it does?
Mira Resources Corp. (TSX: V.MRP, Stock Forum) is a Canadian-based independent oil & gas company focused on West African proven energy plays in countries ranging from Ghana to Angola.
What distinguishes your company from others in your space?
Mira’s initial acquisition is the Tom Shot Bank Field-shallow offshore eastern Nigeria. Our focus will be on the discovered reserves and contingent resources, where new technology has suggested additional potential. Mira is also currently preparing and positioned for the 2011 Nigerian Marginal Field Bid Round.
Can you explain why you have chosen to work in Nigeria?
- Oil and gas sector represents 95% of total export earnings and 65% of government revenues.
- Largest oil producer in Africa and 15th largest in the world
- Over 1,000 discovered fields with only 30% producing.
- 2009 oil production of 2.2 mmbbl/d, exporting 1.8 mmbbl/d (~40% to U.S) and proved reserves of 37 billion barrels.
- 8th largest proved natural gas reserves in the world at 188 tcf with 2009 production of 1.2 bcf/d.
- Strong local partner- Equinox Group Ltd.
*Equinox Group Ltd. is a leading Nigerian private multi-million dollar conglomerate company managing diversified interests across three continents in a range of internationally operated sectors.
What is your flagship project?
First Targeted Acquisition- OML 14 Tom Shot Bank Field
-Tom Shot Bank Field is located in shallow water eastern Nigeria in OML 14, covers approximately 23 square km with two wells drilled on the field by Shell in 1980, 1989 and is now covered by a 3D seismic data, which was reprocessed in 2008 to a Pre-Stack Depth Migrated data set.
What is the past history and by-passed potential?
-The Tom Shot Bank field was originally discovered by Shell in 1980. Shell encountered 425 gross feet of hydrocarbon pay including 83 net feet of oil and 57 net feet of gas proven pay, plus another possible 111 net feet of oil and 29 net feet of gas pay. TSB-1 intersected five gas zones, but crossed a major fault and missed the underlying oil structure. The well was then plugged, and Shell relinquished the concession.
-Netherland Sewell & Associates (“NSAI”) has assigned gross contingent (P50) resources of 8.7 MMBL and 75 BcF of gas to the area around the TSB-1 well. Over and above the currently assigned contingent resources, Mira has exposure to over 110 MMBL (gross) of additional potential in and around the Tom Shot Bank Discovery. Mira has allocated $12.6 million for the re-entry and testing of the TSB-1.
What kind of interest does Mira own in the Tom Shot Bank?
In February 2011, Mira acquired a 48% working interest and 54% net profit interest in the Tom Shot Bank field, shallow offshore Nigeria.
What were the acquisition terms in the share purchase agreement between Mira and the Equinox Group Ltd.?
-Consideration included repayment of $1.8 million in past costs ($1.5 million of which is cost recoverable) and 8.33 million common shares of Mira, both now paid. Mira will fund 100% of all capital and operating costs and will receive cost recovery of 120% (100% of its own costs, plus 25% of its partner’s share of cost recovery). Mira will also receive a project management fee of 4% on the gross capital expenditures. Two bonuses of $2 million each are payable by Mira, one at first production, the second at cumulative production of one million barrels of oil. Half of each bonus is payable in cash or shares at Mira’s option, the other half at Equinox’s option.
What is your company’s initial work program?
-Mira has secured a drill rig with two drilling slots, one firm and one optional slot for later in 2011. In July of this year, Mira will re-enter TSB-1, run modern high resolution cased hole logs, and then complete production tests in the selected reservoirs. We anticipate testing two to five separate reservoirs and if successful will allow Mira to convert these resources into TSX compliant reserves. Mira has allocated US$12.6 million for the re-entry of TSB-1. The second optional drilling slot will not only give us the ability to optimize the completion design of TSB 1 to maximize production, but will also give the partnership the opportunity, if desired, to drill a second delineation or development well in Tom Shot Bank Field in 2011, thereby potentially significantly increasing the proven resources and the estimated initial production rates.
Can you describe the location of the Tom Shot Bank?
Tom Shot Bank- Schematic Location of Field
-Tom Shot Bank Field (TSB) is located in eastern Nigeria in the Oil Prospecting license (OPL) 276, previously known as Oil Mining Lease (OML) 14. It is approximately equidistant from Abana Field, which has an estimated ultimate recovery of 70 million barrels of oil and 2.5 trillion cubic feet of gas (IHSE GEPS 2010), Stubb Creek Field, 19 million barrels of oil and 700 BCF (IHSE GEPS Nov. 29 2010) and NDIBE Field in OML 67. It is due north of Addax Petroleum’s OML 123, which is currently producing approximately 50,000 BOPD.
How much cash do you have on hand and what is your estimated expenses for your re-entry?
-Mira closed a $20 million Bought Deal Equity Financing February 18, 2011.
-Total estimated costs of re-entry, evaluation and testing of TSB #1 well is $12.6mm
*Rig Expense 24.5 Days@$98000 $2.4mm
*Bundled Services 24.5 Days @189,000 $4.6mm
*Production Tests 2 Multi day Production Tests $5.6mm
Who are the key players on your management team and what experience do they bring to the table?
Johnathan More, Chairman/CEO
-Experienced in North American and European markets focused on natural resource industries. Previously VP and Senior Investment Advisor with Canaccord Capital.
Thomas Cavanagh,President/Director
-Mr Cavanagh is a senior executive E&P professional with over 30 years industry experience, having worked in all of the significant petroleum systems of South East Asia, Middle East and Africa. Extensive experience in Nigeria with Major IOC, NOC, independents such as Addax, Mart Resources, and Equator Exploration. Former Vice President for New Business Development Ocean Energy, a senior geologic advisor for Saudi Aramco, and over 15 years with Exxon Corporation.
David Urquhart,COO/Director
-Mr. Urquhart has 40 years of oil and gas drilling and production operations engineering experience in the international energy industry. Former COO of Mart Resources, and has lead over 300 well shallow gas programs in western Canada.
Cyrus Driver,CFO/Director
-Senior Partner and Chartered accountant with Davidson & Company LLP. Over 30 years experience in advising TSX Venture Exchange-listed companies.
Robert J. Dardi,Director
-Senior B.C. lawyer specializing in securities law, corporate governance, financing mergers and acquisitions. Previously with TELUS Corporation, McCarthy Tetrault, First City Financial and the Jim Pattison Group.
What is your company’s current share structure?
Basic Shares Outstanding: 125,000,000
Warrants Outstanding: 66,666,667@0.40
Options: 9,000,000@0.30
Fully Diluted Shares Outstanding: 201,000,000