October 2019 - X-Terra Resources Inc
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October 2019
Cautionary Statement on Forward Looking Information Certain information contained in this document may include “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information may include, among others, statements regarding the future plans, costs, objectives or performance of X-Terra Resources, or the assumptions underlying any of the foregoing. In this document, words such as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate” and similar words and the negative form thereof are used to identify forward-looking statements. Forward- looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur, including the development of X-Terra Resources’ properties, or if any of them do so, what benefits X-Terra Resources will derive. Forward-looking information is based on information available at the time and/or management's good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond X-Terra Resources’ control. These risks, uncertainties and assumptions include, but are not limited to, those described under “Financial Instruments” and “Risk and Uncertainties in X Terra Resources’ Annual Report for the fiscal year ended December 31, 2016, a copy of which is available on SEDAR at www.sedar.com, and could cause actual events or results to differ materially from those projected in any forward-looking statements. X-Terra Resources does not intend, nor does X Terra Resources undertake any obligation, to update or revise any forward-looking information contained in this document to reflect subsequent information, events or circumstances or otherwise, except if required by applicable laws.
Lower Gaspésie Project
Southern Québec
QC Gas consumption
~ 290 Bcf/yr LNG: Energie
Saguenay Gaspé
QC Oil consumption
~ 127 mmBo/yr
Surrounded by numerous Québec LNG Bear Head/ AG
Refinery
infrastructures : Montréal
Refinery
LNG Project LNG Canaport/ LNG Goldboro
Irving refinery
Refinery
Pipelines
Close proximity to deep water Boston
3
1 - Review of current licences and historical exploration
2- Technical Geological overview
4
2088PG402
5 Hydrocarbon exploration 16,560 Ha
2088PG401
licences : 20,477 Ha
Total :~230,480 Ac (93,272 ha) 2088PG400
16,006 Ha
Low population: mainly
farm and forest, flat lands
Many paved and gravel 2088PG997
21,427 Ha
roads:
perpendicular to geological 2008PG996
strutures 18,802 Ha
Underexplored Territory
NO DECOMMISIONNING
LIABILITY
5
2 high resolution mag
surveys covering all
licences
Few available seismic
profils : Mainly regional
gouvernmental acquisitions
2D seismic: regional
coverage In red: seismic profils
Approximative location
Sources : http://sigpeg.mrn.gouv.qc.ca/gpg/hydrocarbures/hydrocarbures.htm
6
Cleary highlights bedding
trends
Highlights fracturation
patterns
Adds value to a 2D seimic
survey :
Better design
Filling gaps between lines.
Inversion work can be
included in a follow up
exploration program
7
Utica Resources acquired all of Cuda Oil and gas`s Québec assets
for a total consideration of 10,6 MM$ (https://cudaoilandgas.com/wp-
content/uploads/2019/09/Press-Release-Sept-4-2019.pdf)
Cuda owned 1,8 M net acres on december 31, 2018 (sedar)
Questerre is acquiring approximately 753,000 net acres for a total
consideration of ~ 11MM$ (https://www.questerre.com/news/2019/03/07/march-7-2019-
questerre-executes-agreement-to-acquire-quebec-assets/)
8
9
Gaspé Belt:
Massé extension
Pockmarks
Humber zone : Port-O-Port
Oil discovery
Trend of existing X-Terra
discoveries Licences
Sandstone conventional Du Park Wells:
Resevoir storage Galt Oil
reservoir discovery
St-Flavien :
High potential for shale 4 BCF gas Storage Massé Oil
gas discovery discovery
Joly, permiting well
Plateform zone:
Utica shale gaz St-Simon :
Test 400 mcf/d
potential
Dolomitized Carbonate
(TBR)
10NW SE
Charlevoix Saint-Lawrence river Massé Discovery
Precambrian Pockmarks: Gas events
Gaspé Belt
Siluro-Devonian
Humber Zone Carbonate
Ordovician
Platefrom siliclastic
Ordovician
Trusted Slope siliclastic Massé :oil
Platform and trusted carbonate
11Source rocks
Gaspé Belt
Réservoir rocks
Massé reservoir continuity
Humber Zone
Ordovician shale potential
Sandstone reservoirs
Plateform:
Massé reservoir
Utica shale equivalent Park reservoir
TBR dolomitization
Modified from Pinet et al, 2014
12 Thermogenic gas escaping from
Paleozoic rocks just north of X-Terra’s
licences, in the Saint-Lawrence river
Over 2,000 pockmarks have been
identified by high resolution
bathymetry survey
X-Terra
Gas escaping from
bedrock
Image
Source : Lavoie, D. Pinet, et al, 2010 13 Sproule, 2016: 61,1 MMBOE in place
X-Terra Licences : High porosity created
by carbonate
Possible Siluro-Devonian play extension dolomitisation
Vertical stack of source rocks ?
SE NW
Ordovician Rocks
Siluro-Devonian
Neigette fault
Gaspé Belt
Gaspé Belt
Oil discovery
Ordovician source rocks continuing
onto X-terra licences
Possible extension
to X-Terra’s Licences
Sources : Squatex and Petrolympic public presentations, 2015,2016,2017. Sproule evaluation, 2016 14Silurian carbonate
Massé extension
Contact
ordovician / silurian
X-TERRA Licences
Ordovician reflector ?
Sandstone Prospect ?
N S
15 Good indicator for
deeper oil and gas
conservation
Ordovician formations
highlighting high
levels of TOC in the
oil generation
windows.
Excellent position for
an unconventional
discovery
Source : Bertrand et al , 2010
16 Drilled in 1979
Extensive work to study storage potential
Source : Hu and Lavoie, OF 5485
17Upper
siliclastic
interval
Lower siliclastic
and carbonate
interval
Marcil et al, 2013
Thériaut, MERN 18A A’
Humber zone
Plateform and trusted carbonate
A
A’
Modified from Pinet et al, 2014 Gaspe
Humber zone Gaspé belt Belt
19B’
B
Humber zone Gaspe
Gaspé belt Belt
B
B’
Modified from Pinet et al, 2014
20 X-Terra licences are surrounded by hydrocarbon
showings and discoveries
Licences highlight great potential for conventional
and non-conventional opportunites in three
differents highly prospective geological settings.
Value creation could occur with social acceptibility
improvement and/or low cost exploration program
About the Author
Mr. Jérémie Lavoie, P. Ing. MBA a consultant to X-Terra Resources, has been working for more than 13 years in the oil and gas exploration industry with
extensive experience in Québec, broader Canada and the United States. He has reviewed all available data and is the author of this presentation.
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