Our Operations

OUR OPERATIONS

FrazOil is an upstream oil & gas company focused on Exploration & Production activities as well as Asset Acquisition and Management of diversified mineral, oil & gas assets in the Sub-Saharan Africa. Our mode of operation can be summed up with the following definitions and illustration:

Exploration & Production Initiatives (“The Drill Bit”)     
    -    Growing our E&P activities via continual production from proven oilfields
    -    Sustain growth via acquisition of additional low-risk properties for E&P operation
    -    Generate revenue via consistent de-risking of projects and strategic divestment of working interests to maintain upside

Asset Acquisition & Management Initiatives (“The Board Room”)     
    -    Acquire exceptional reserve assets at fair market prices
    -    Manage portfolios of royalties and non operational working interests
    -    Allocate cash flow intelligently for new investment or reinvestment
    -    Generate ongoing revenue through carried interests and fees

OPERATIONS – Nigeria

FrazOil is currently engaged in acquisitions of operational and non-operational mineral, oil & gas assets in Nigeria’s Niger-Delta region, while putting in place it’s E&P infrastructure in place to begin “drill-bit” activity by fourth quarter of 2015. Our participation in this high growth-rate economy is set to yield high returns to our stakeholders.

Nigeria boasts 37bboe and182 TCF in oil and gas reserves respectively; and with an estimated gas resource base of upwards of 600TCF. It remains the world’s 9th largest gas rich country.

FrazOil is set to leverage its network of mineral rights owners and best-in-industry E&P operators to build a profitable matrix of field operations and portfolio management.

Nigeria holds monumental growth potential due to its highly underserved populace in areas of power generation and “local-sourced” fuel delivery to the domestic market. These supply gaps will provide sustainable demand of FrazOil products and services.

Understanding the growth areas     
    -    Power Generation: Economic growth is constrained by lack of investment in infrastructure, chronic power shortages and a reliance on expensive diesel           for power generation. Nigeria holds a 36GW power deficit and has called on investors to help bridge this gap by the year 2020.
    -     Local Sourced Petroleum Products: Nigeria currently imports the vast majority of its consumed petroleum products at an estimated cost of $20.0 billion           annually. Replacement of these products with a cheaper and locally sourced fuel feedstock in the form natural gas derivatives is an economic no-brainer           for a Gas rich country.

OPERATIONS – Republic of Benin

THE GOVERNMENT OF BENIN REPUBLIC HAS GRANTED FRAZOIL the rights to explore and produce the hydrocarbon deposits in its offshore Oil Block 3. Our team of E&P experts are employing the latest technology to profitably assess, develop and produce the asset.

The Republic of Benin is situated to the west of Nigeria. Its offshore basins includes the Seme North and Seme South fields (80 mmboe) discovered in 1975, and the Hihon-1 and Fifa-1 discoveries. Onshore, a tar belt in the coastal region has been sourced from a lower cretaceous lacustrine kitchen located offshore.

These hydrocarbons prove the existence of working petroleum systems in the region and points to considerable remaining exploration potential in the offshore area. Benin also has a recorded 40 billion cubic feet of gas reserves as established in 2011.

The Oilserv Group has acquired Exploration and Production rights to explore Benin’s Oil Block 3, with operations set to begin early in the year 2015.

OPERATIONS – East Africa

FrazOil is currently developing its E&P and acquisition apparatus in oil & gas nations of East Africa. It has been estimated that $100B Oil & Gas investments will occur in these countries in the next 5-10 years. FrazOil will bring to bear its full set of capacities to create economic and human value.

SOUTH SUDAN          -    5 Billion Barrels in oil reserves     -    3 Trillion Cubic Feet in gas reserves     -    Sudan currently flared 11.8BCF in 2010 UGANDA          -    2.5 Billion Barrels in oil reserves     -    500 Trillion Cubic Feet in gas reserves     -    Uganda is corridor and sister country to land-locked Rwanda   TANZANIA          -    50 Trillion Cubic Feet in gas reserves     -    200 Trillion Cubic Feet in gas resources     -    $20B - $40B in investment required for gas development per World          Bank     -    3 Trillion Cubic Feet in gas reserves     -    Corridor to landlocked Rwanda, Burundi   MOZAMBIQUE          -    50 Trillion Cubic Feet in gas reserves     -    180 TCF proven reserves     -    $30B estimated for gas (LNG) development by 2018     -    Corridor to landlocked Zimbabwe, Zambia & Malawi