ADVANTAGES OF WORKING WITH BAYANPETROLEUM LLC

Key investment opportunities in the petroleum sector of Mongolia

  • The key to successful exploration in Mongolia is to identify deeper sub-basins within the major rift trends where lacustrine source rocks developed and were later buried deeply enough to achieve thermal maturation and petroleum expulsion.
  • Structures identified around these sub-basins with favorable reservoir and trapping conditions have produced oil in the Eastern Gobi (Zuunbayan and Tsagaan-els) and Tamsag basins (Toson-uul and Tamsag) Mongolia and within the Hailar and Erlian basins in China.

Security

  • Promote and protect investment in the oil industry under the Government of Mongolia.
  • Favorable legal and fiscal environment of the petroleum sector in Mongolia.

Prospectivity

  • Contains 2 potentially prospective subbasins
  • Contingent resources were discovered in exploration wells
  • 7 exploration wells in the block, 3 of them have oil shows and some of them proved mobile hydrocarbons via well tests.
  • High-quality light (waxy) crude oil with low sulfur is produced from the adjacent fields.
  • Fast-track step-out exploration appraisal with near-term development and early production.

Database

  • Bayanpetroleum is in possession of all the geological and geophysical data.

Diverse basin portfolio

  • Identified basins contain potentially highly prospective portfolios with multiple play types and leads.
  • Oil presence proven for 60 years.

The opportunities of PSC

  • Sole risk by Foreign Investment in the Exploration Period.
  • Joint development in the Development Period by the Mongolian Party and the foreign party in proportion to their participating interest.
  • Cost related to the Petroleum Operations can be recoverable from the production up to 39%.
  • Production allocation.