Tlou Energy Ltd · ASX:TOU
Tlou Energy — Investor Presentation (June 2018)
29 slides from Tlou Energy's investor presentation, Jun 7, 2018
Slide 1: Investor Presentation June 2018
0 Investor Presentation June 2018 For personal use only
Slide 2: Disclaimer
1 Disclaimer These presentation slides and the accompanying verbal presentation (together the “Presentation Materials”) are confidential and have been issued in connection with the proposed For personal use only placing of new ordinary shares (“Placing Shares”) in the capital of Tlou Energy Limited
Slide 3: Disclaimer
2 Disclaimer No recipient of these Presentation Materials should deal in or attempt to deal in or otherwise engage in any behaviour in relation to financial instruments (as defined in the Market Abuse For personal use only Regulation ("MAR")), which would or might amount to "market abuse" for the pu
Slide 4: Company Information
3 Company Information For personal use only Tlou Energy is an onshore gas exploration and power generation company with operations located in Botswana. The Company aims to produce gas-fired electricity for sale into the regional power market in Botswana and Southern Africa. STOCK MARKET ASX / AIM /
Slide 5: Board and Management
4 Board For personal use only Martin McIver • Over 17 years experience in finance Gabaake • Geologist, former Botswana Permanent Chairman and mining services Gabaake Secretary at Ministry of Minerals • Currently CFO of the WorkPac group Executive Energy & Water Director • Former Director of Debswana
Slide 6: Tlou Energy
5 Tlou Energy For personal use only Onshore Gas-to-power developer • Clean natural CBM gas • 8,300 km2 project acreage, 100% owned and operated, De-risked project Significant Gas Reserves and Contingent Resources • Large gas asset, independently certified • Sufficient gas in place for initial projec
Slide 7: What does Tlou Energy do?
6 What does Tlou Energy do? For personal use only The Company extracts CBM natural gas from coal, using horizontal drilling techniques. This CBM gas can then be used for electricity generation. ➢ Tlou’s CBM extraction method ✓ Dual Lateral Pods, each comprising one vertical and two horizontal wells
Slide 8: Generating power from CBM in Botswana
… generating power from CBM in Botswana For personal use only 7 www.tlouenergy.com
Slide 9: Where is the project?
8 Where is the project? For personal use only Botswana - The leading economy in Sub-Saharan Africa Ideal investment destination Stable, democratic government No foreign exchange controls One of the worlds largest diamond producers Growing economy No “BE” or ownership restrictions Excellent credit ra
Slide 10: How Have We Got Here?
9 How Have We Got Here? For personal use only 2012 2014 2016 2018 First Contingent First Gas Upstream Significant Increase in Gas Resources Environment Gas Reserves and approval Contingent Resources First Gas Reserves 2009 2013 2015 2017 Botswana ASX Listing Increased First gas fired power operation
Slide 11: Botswana Project Map
10 Botswana Project Map For personal use only www.tlouenergy.com
Slide 12: Initial Development Plan
11 Initial Development Plan For personal use only ➢ Develop up to 10 MW of power: ❖ Targets first revenue while minimising initial capex requirement ❖ Sufficient gas reserves already in place ❖ Achieves grid connection and facilitates simple expansion ❖ Easily integrate solar generation ➢ Strategy:
Slide 13: Project Benefits
12 Project Benefits Creating employment in ➢ For Investors For personal use only Botswana since 2009 ❖ Leading CBM project in the region ❖ Significantly de-risked ❖ Enormous potential upside as the project moves into development and generates first revenue ❖ Much larger projects planned post the ini
Slide 14: Reserves & Contingent Resources
13 Reserves & Contingent Resources For personal use only Independent Gas Reserves Certification Technical Fundamentals (1) 0.35 40.8 426.6 Coal Depth ~350-800m BCF BCF BCF Gas Contents (Average) ~6 m3/t (DAF) (1P) (2P) (3P) Gas compositions ~85% methane (1) (2) Gas Reserves Gas Contingent Resources
Slide 15: Gas Reserves Summary
14 Gas Reserves Summary For personal use only ✓ Sufficient Reserves already in place for initial project development ✓ Further Reserves and Resources in place for significant expansion 2P Gas Reserves in place: 3P Gas Reserves in place: 3C Contingent Resources ~41 BCF ~427 BCF ~3,043 BCF • a 10 MW p
Slide 16: Field operations: Lesedi CBM Project, Botswana
Field operations Lesedi CBM Project, Botswana For personal use only 15 www.tlouenergy.com
Slide 17: Ongoing Workstreams
16 Ongoing Workstreams For personal use only Direct discussions with Botswana Power Corporation for a small scale pilot project Power Purchase Government 100 MW re-tender proposal being considered, subject to terms Agreements (PPA) Regional 3rd party off-takers Inception report and local stakeholder
Slide 18: Proposed pilot well drilling program
17 Proposed pilot well drilling program For personal use only Drilling of development production wells has a number of advantages: Project Development will be progressed as Tlou continues discussions on Power Purchase Agreements and downstream Environmental and licencing approvals are finalised Exis
Slide 19: Use of Funds
18 Use of Funds Existing cash and proceeds raised to be used as follows: For personal use only Drilling Reserves Regulatory Working Capital Production Pods located in Additional wells can Progression of regulatory General, corporate and the proposed project potentially enhance the requirements admin
Slide 20: Equity Raising Overview
19 Equity Raising Overview For personal use only Placing and Entitlement Offer to raise up to circa A$8.0 million Offer Components Placing (A$2.5m) Entitlement Offer (up to A$5.5m) Taylor Collison – Underwriter Brokers Shore Capital (Underwritten Amount A$1.37m) 24.75m Placing shares 1 new share for
Slide 21: Investment Case
20 Investment Case For personal use only Independently Certified Gas Reserves & Contingent Resources Huge electricity Supportive Low cost Significant Mining licence market government drilling CBM experience granted Aiming to provide power for Botswana and Southern Africa www.tlouenergy.com
Slide 22: Appendix
For personal use only Appendix
Slide 23: Power Market with enormous demand
22 Power Market with enormous demand SAPP Electricity Shortfall For personal use only ➢ Southern African Power Pool (SAPP) South Africa ▪ 12 member countries ~5,994 MW ▪ Aimed at developing a competitive electricity market in the region ▪ Facilitates transmission of power across all member states Re
Slide 24: Environmental Impact Statement (EIS)
23 Environmental Impact Statement (EIS) For personal use only Field Development EIS approved Project to create Only CBM Gas local direct and EIS approved in indirect Botswana employment EIS involved Project will have extensive minimal impact engagement on agricultural with local land population Powe
Slide 25: Potential Synergies
24 Potential Synergies For personal use only Complement Solar Power Feedstock to CBM support new Industry Natural Rural electrification Gas Clean cooking to reduce illness from unclean fuels www.tlouenergy.com
Slide 26: Existing power distribution network in place
25 Existing power distribution network in place For personal use only World class power network in place and access to neighbouring countries www.tlouenergy.com
Slide 27: Aeromagnetic and Seismic Coverage
26 Aeromagnetic and Seismic Coverage For personal use only www.tlouenergy.com
Slide 28: Coal Cross-Section
27 Coal Cross-Section For personal use only Coal cross-section corresponds to line A-A’ on the Aeromagnetic Map on the previous slide. www.tlouenergy.com
Slide 29: Contact details
For personal use only Tlou Energy Limited 210 Alice St Brisbane QLD 4000 Australia +61 7 3012 9793 Ground Floor, Victoria House 132 Independence Avenue Gaborone Botswana +267 316 0857 www.tlouenery.com info@tlouenergy.com ASX: TOU AIM: TLOU BSE: TLOU