NAMIBIA – CURRENT DEVELOPMENTS

1. NAMIBIA –CURRENT DEVELOPMENTS Roger Swart NAMCOR (Pty) Ltd Oil Africa 2006 Cape Town 23rd March 2006 www.namcor.com.na

2. Presentation outline • Kudu gas to power project • Other current exploration players - Hunt Oil - BHP Billiton - Neptune Petroleum - Greendale Universal Holdings - First African Oil Corporation/Circle Oil - INA Industrija Nafte - Block 1711 • Conclusion www.namcor.com.na

3. Kudu licence area • Water depth 170m • Reservoir depth 4400m • On Orange Banks • Reservoir – interbedded with volcanic rocks Kudu Production Licence 001 www.namcor.com.na

4. Kudu gas field history • Discovery 1974 (Chevron/Regent/Soekor) • Exploration License award: • 6 May 1993 (Shell, EA, <Texaco>) • Petroleum Field declared:21 July 1997 • Production License awarded on 31 August 2005 • Tullow Oil (90%), Namcor (10%) • 2 wells planned for 2007 Kudu www.namcor.com.na

5. Kudu – current concept www.namcor.com.na

6. Construction challenges • Weather • swell • offshore winds • Remote location • Dynamic surf zone • Coastal fog www.namcor.com.na

7. Swell • Typical conditions February-March 2006, the so-called “weather window” www.namcor.com.na

8. Winds • Effect - Onshore terminal and power plant • Seasonal – winter • But… • SW is the dominant wind direction www.namcor.com.na

9. Remote location • 170 km to Oranjemund • 800 km to Windhoek • 800 km to Cape Town • Diamond coast . Windhoek Kudu www.namcor.com.na

10. Dynamic surf zone • Problem for pipe laying www.namcor.com.na

11. Coastal fog • Satellite image of coastal fog • Corrosion an issue • High sulphur content www.namcor.com.na

12. Licensed acreage at end of 2005 www.namcor.com.na

13. Hunt Oil Company • Large sized US Independent • Converted reconnaissance licence to exploration licence on 23 August 2005 • 4 year licence in Lüderitz basin • Namcor holds a 10% carried interest www.namcor.com.na

14. BHP Billiton • Awarded 2 exploration licences on 23 August 2005 • South of Kudu licence (Southern block) and block west of Kudu licence (Northern block) • Parts of northern block overlapping with Kudu Production Area • First stratigraphic delineation of acreage in Namibia • Provides win-win solution • 3D seismic campaign underway www.namcor.com.na

15. Neptune Petroleum • 2 year exploration licence awarded 23 August 2005 • Currently interpreting seismic www.namcor.com.na

16. Greendale Universal Holdings • Received 2 exploration licences on 27 October 2005 (17 166 km²) • Blocks 1811 A&B, 2714B • Seismic interpretation phase www.namcor.com.na

17. Circle Oil • First post-independence onshore licence (Owambo basin) • Largest acreage ever (138 963 km²) • Full exploration license on 17 November 2005 • Namcor cosignatory with 10% stake • Well commitment www.namcor.com.na

18. INA Industrija Nafte • Croatian NOC • Exploration license on 23 November 2005 • Second onshore licence to be awarded www.namcor.com.na

19. Block 1711 • Block relinquished by Vanco • Acreage with highest potential so far • Received several applications for licence • Finalising negotiations • Local BEE participation included • Namcor to take up stake www.namcor.com.na

20. Conclusion • Kudu development imminent • Namibia set to join petroleum producers club • Other exciting developments www.namcor.com.na