Tlou Energy Ltd · ASX:TOU
Tlou Energy — Investor Presentation (June 2015)
28 slides from Tlou Energy's investor presentation, Jun 29, 2015
Slide 1: Corporate presentation June 2015
For personal use only Corporate presentation June 2015
Slide 2: Disclaimer
Disclaimer For personal use only Disclaimer Future performance This presentation (Presentation) has been prepared by Tlou Energy Limited (Tlou). The Presentation and This Presentation contains certain “forward-looking statements”. Forward looking words such as, “expect”, information contained in it
Slide 3: About Tlou Energy
About Tlou Energy For personal use only ASX Listed (TOU.AX) Mkt Cap ~AUD $30m Most advanced gas company in Botswana Led by Tony Gilby; • Pioneer in Queensland’s CBM industry • Co-founded and led Sunshine Gas Limited (formerly ASX listed) • Proved +1,000PJ of CBM reserves • Sold to QGC/BG for
Slide 4: Key Information
Key Information For personal use only Botswana CBM Project • ~8,300km2 • 100% owned Certified Contingent Resources • 4.9 BCF (1C) • 239 BCF (2C) • 3,295 BCF (3C) Significant market opportunity • Botswana’s most advanced project • High energy demand, supply shortfall Location • Strategically located
Slide 5: Experienced Team
Experienced Team For personal use only Board of Directors Key In-Country Management Nathan Mitchell – Chairman Glen Smith – Chief Operating Officer • 18 years in resource exploration • Geologist with 26 years operational experience • International Operational Experience • Operational and geological
Slide 6: Coal Bed Methane (CBM)
Coal Bed Methane (CBM) For personal use only CBM is chemically identical to other sources of gas CBM is produced by drilling into and then but is produced by non-conventional methods along coal seams, initially releasing water and then natural gas. The gas is collected at CBM is extracted from
Slide 7: Market
Market For personal use only Botswana: An energy constrained economy in an energy constrained region. Supply Shortage Opportunity • Botswana – severe energy crisis • Commercialise the significant • Frequent power cuts indigenous resource • Demand expected to increase by • Provide business with clean
Slide 8: Market opportunity – Botswana
Market opportunity – Botswana For personal use only Botswana - Predicted Power Supply & Demand to 2019 1,000 900 800 700 600 ~MW 500 400 300 200 100 - 2016 2017 2018 2019 Gas (Tlou Opportunity) 110 170 290 400 Coal* 500 500 500 500 Expected demand** 610 670 790 900 Immediate opportunity to replace i
Slide 9: Market opportunity – Regional
Market opportunity – Regional For personal use only Projected regional energy demand by source 800 700 600 500 ~TW 400 300 200 100 - 2010 2030 2040 Gas 6 193 249 Coal 224 285 362 Other 73 91 143 Total 303 569 755 Regional demand is virtually unlimited. Gas requirements are estimated to increase from
Slide 10: Timeline – Commercial opportunities
Timeline – Commercial opportunities For personal use only • Supply industrial users (diamond mines) located close to project (1-5 MW, ~12 months) • Develop a gas to power project to feed additional power to the BPC grid to alleviate Botswana’s current power crisis (1-2 Years) Near Term • Replace exp
Slide 11: Gas Price – Diesel replacement
Gas Price – Diesel replacement For personal use only Diesel generation accounts of over 150 MW of current domestic supply Currently no viable alternative to generate power Landlocked country with no fuel pipelines. All fuel imported by truck at significant expense Government looking to repla
Slide 12: Path to First Gas
Path to First Gas For personal use only Pilot Project 1MW – 10MW project Connect to off-taker Uses otherwise flared gas Industrial users (Diamond mines) Gas compressed at well-site Replace diesel generation Transport CNG via truck Potential grid inter-connect Flared gas Transport CNG
Slide 13: Near Term Target Catalysts
Near Term Target Catalysts For personal use only First gas delivery in GSA’s for pilot 2016 projects 4Q 2015 Enhanced gas flow 3-4Q 2015 13
Slide 14: Lesedi CBM Project
14 For personal use only Lesedi CBM Project
Slide 15: Botswana CBM Project
Botswana CBM Project For personal use only 15
Slide 16: Lesedi Project
16 For personal use only Lesedi Project
Slide 17: Lesedi Operations
Lesedi Operations For personal use only Aerial view of Operations Selemo Pod Gas flare - Selemo Pod December 2014 17
Slide 18: Lesedi CBM Project Technical Fundamentals
Lesedi CBM Project For personal use only Technical Fundamentals Coal depth ~300-700m Cumulative net coal thickness ~25m (Average) Gas contents 4-6 m3/t (DAF) (Average) Unstimulated reservoir ~2-5mD permeability per DST Gas compositions Up to 90% methane 18
Slide 19: Horizontal Pilot Design
Horizontal Pilot Design For personal use only • Horizontal wells (~750m in-seam) with vertical pumping well • Lesedi pod completed as a dual lateral • Selemo pod completed as a single lateral • Target Reservoir: Basal Morupule coal seam (~6m) 19
Slide 20: Gas flows
Gas flows For personal use only Selemo Pilot - Short term test – December 2014* • Peak recorded gas flow of ~400,000 cfd • Average recorded gas flow of ~200,000 cfd • Results suggest a commercial development may be achievable. • First in Botswana to flow CBM gas at these rates *As detailed in Tlou’s
Slide 21: Commercialisation
Commercialisation For personal use only Proposed Sequence Pilot Project up to 10MW (scalable) Existing Orapa Power Station 90MW Proposed Power Station 300MW Export 21
Slide 22: Downstream Partners – CNG Holdings
Downstream Partners For personal use only CNG Holdings Limited • South African Compressed Natural Gas (CNG) group • Co-operation agreement signed to: supply CNG to industrial users replace imported diesel and LPG develop a virtual pipeline network 22
Slide 23: Downstream Partners – General Electric
Downstream Partners For personal use only General Electric • GE is a world-leader in compression and power generation facilities • Cooperation agreement for sharing of infrastructure and gas supply to: 90MW Orapa power station Proposed 300MW gas-fired power project 23
Slide 24: Forward Plan
Forward Plan For personal use only Expanded Reserve First gas Flow gas GSA’s program certification delivery • Achieved • CNG Holdings • Commenced • Target 2H15 • Target 2016 Pty Ltd June 2015 • Operations ongoing • GE & IKH • Enhance gas flow • Proof of concept 24
Slide 25: Cash Position / 2015 Work Program
Cash Position / 2015 Work Program For personal use only • Tlou closed a fully underwritten 4 for 15 Non-Renounceable Entitlement Cash position Offer to raise approximately A$5.5 million • Pro-forma 31 March 2015 cash balance A$9.6m • 2015 work program at the Lesedi CBM Project commenced: • Up to 2 s
Slide 26: Reserves and Contingent Resources
Reserves and Contingent Resources For personal use only Certified Resource Statement Unrisked Gross Unrisked Net OGIP(1) (100 Percent) (100 Percent) Certified Contingent Resource Category (BCF) (BCF) (BCF) Contingent Resources • 4.9 BCF (1C) Low Estimate (1C) 7.6 4.9 4.9 • 239 BCF (2C) Best Estimate
Slide 27: Investment opportunity
Investment opportunity For personal use only 27
Slide 28: Thank You
Thank You For personal use only 210 Alice St Brisbane QLD 4000 Australia Tel: +61 7 3012 9793 Ground Floor, Victoria House 132 Independence Avenue Gaborone Botswana Tel: +267 316 0857 www.tlouenery.com info@tlouenergy.com ASX: TOU