1. OIL EXPLORATION AND PRODUCTION BLOCK – GURVANBAYAN XXX

GURVANBAYAN XXX

  • Ownership: BayanPetroleum LLC
  • Located in the eastern part of Mongolia
  • Covers: 5045 sq.km area

2. GEOLOGY AND PETROLEUM SYSTEM

  • Basin fill

    Up to 3km of lower cretaceous sedimentary rock

  • Source and seal rock

    Upper Tsagaantsav and Lower Zuunbayan formation

  • Oil window starts

    At depth of 1200-1400m

  • Traps

    Structural: rotated fault block, anticlinal, reverse faults and folding.

    Stratigraphic pinching out, subaqueous sand lenses.

3. GURVANBAYAN XXX – HIGHLY PROSPECTIVE EXPLORATION BLOCK

  • Prospective Mesozoic deep subbasins and neighboring oil production fields.

  • Includes Prospective Mesozoic deep basins proved by wells with oil shows and flow.
  • Contains 2 potentially prospective subbasins, Unegt and Zuunbayan. The basement depths of sedimentary subbasins reach 3000 meters.
    The Unegt sub-basin measures 180 kilometers long and 60 kilometers wide.
    The Zuunbayan sub-basin is 150 kilometers long and 15-25 kilometers wide.
  • Adjacent to the producing oil fields in Mongolia and China.

4. EXPLORATION WORKS – GURVANBAYAN XXX

The exploration process, generated this data cost USD20 million.

  • Gravity data covers 100% of the block.

  • 2150 km of 2D seismic survey was acquired.
  • 111.6 sq.km of the 3D seismic survey was acquired.

  • 7 exploration wells were drilled 3 of those with oil shows.

The available data allows a fast-track step-our exploration-appraisal with near term development and early production.

Main characteristics of Crude oil from Zuunbayan, Tamsag, Ulgii basins Mongolia

Crude oil °API Gravity Sulphur content Origin
Urals 31-32 0.8-1.3 Russia
Arab light 32.7 1.8 Saudi Arabia
Maya 21.8 3.3 Mexico
Kuwait 30.5 2.50 Kuwait
Basrah Blend 34.4 2.1 Iraq
WTI 38.7 0.45 USA
Brent Blend 37.9 0.45 Great Britain
Zuunbayan 28.7 0.16 Mongolia
Tamsag 37.4 0.11 Mongolia
Ulgii 26 0.13 Mongolia

Tamsag crude:

  • light (0.837 g/cm3)
  • low Sulphur (0.064%)
  • low acid number (TAN: 0.052 mg KOH/g)

Zuunbayan crude:

  • light (0.882 g/cm3)
  • low Sulphur (0.086%)
  • low acid number (TAN: 0.1 mg KOH/g)

Ulgii crude:

  • light (0.898 g/cm3)
  • low Sulphur (0.064%)
  • low acid number (TAN: 0.085 mg KOH/g)

5. MARKET AND INFRASTRUCTURE

  • There is a ready market in close proximity at competitive world prices in China.
  • The direct market for crude oil in the Mongolia, Refinery project is implementing.
  • Very competitive labor market and services in Mongolia.

WE WELCOME YOU TO COOPERATE WITH THE BAYAN PETROLEUM TEAM IN THE OIL EXPLORATION AND PRODUCTION ON THE BLOCK GURVANBAYAN XXX