Tlou Energy Ltd · ASX:TOU
Tlou Energy — Investor Presentation (October 2019)
23 slides from Tlou Energy's investor presentation, Oct 30, 2019
Slide 1: Tlou Energy Limited Corporate Presentation
TLOU ENERGY LIMITED CORPORATE PRESENTATION GABORONE 30 OCTOBER 2019
Slide 2: Disclaimer
DISCLAIMER This presentation (Presentation) has been prepared by Tlou Energy Limited (Tlou). The Presentation and information contained in it is being provided to shareholders and investors for information purposes only. The information contained in this disclaimer does not constitute an offer, invi
Slide 3: Company Overview
COMPANY OVERVIEW • RAPID GROWTH GAS PRODUCTION AND ELECTRICITY GENERATION COMPANY • CLEAN NATURAL COAL BED METHANE (CBM) GAS • POTENTIAL FOR SECONDARY SOLAR PROJECTS • ~9,300 KM2 ACREAGE IN BOTSWANA • THREE PROJECT AREAS: 1. LESEDI PROJECT – DEVELOPMENT 2. MAMBA PROJECT – EXPLORATION 3. BOOMSLANG PR
Slide 4: Board
BOARD Martin McIver Gabaake Gabaake Chairman Executive Director • 20 years experience in finance and mining services • Geologist, former Botswana Permanent Secretary • Currently CFO of the WorkPac group at Ministry of Minerals Energy & Water • Former Director of Debswana, De Beers Anthony Gilby Lina
Slide 5: Management
MANAGEMENT Solomon Rowland Danny Horne General Manager Chief Operations Officer •Lawyer, over 18 years experience •30 years in the drilling industry including 18 years •Juris Doctor from the University of Queensland in the Oil & Gas/CBM Sector •Qualified in Diesel Engineering, Diploma of Drilling (O
Slide 6: Share Registry
SHARE REGISTRY • ORIGINAL LISTING: ASX:TOU • OTHER LISTINGS: AIM: TLOU BSE: TLOU • ISSUED SHARE CAPITAL 450,180,185 TOP 20 HOLDERS ~52% • LARGEST SHAREHOLDERS: BPOPF ~10.5% (BOTSWANA PUBLIC OFFICERS PENSION FUND) ANTHONY GILBY GROUP ~4.8% 6 Information Information correct correct as atas 14at August
Slide 7: Project Map
Francistown Letihakane ” 90MW Orapa Power Station Proposed Gas & Power Plant. Lesedi Development Pods Selemo Pilot Pod Tlou Field Camp 1 7 Mining Licence Morupule Tlou Laydown Yard ~™, p Area Power z ar 4 Station Mining Licence Area Lesedi Project Mamba Project : Le F454, b / Boomslang Project 7 \ a
Slide 8: Development Plan
DEVELOPMENT PLAN • DEVELOP INITIAL 10MW OF POWER: ❖ TARGETS FIRST REVENUE WHILE MINIMIZING INITIAL CAPEX REQUIREMENT ❖ SUFFICIENT GAS RESERVES ALREADY IN PLACE ❖ ACHIEVES GRID CONNECTION AND FACILITATES SIMPLE EXPANSION ❖ EASILY INTEGRATED (HIGH MARGIN, LOW RUNNING COST) SOLAR GENERATION 8
Slide 9: Lesedi Gas-to-Power Project
LESEDI GAS-TO-POWER PROJECT • KEY MILESTONES ALREADY ACHIEVED • INDEPENDENTLY CERTIFIED GAS RESERVES • MINING LICENCE GRANTED • INITIAL WELLS DRILLED AND PRODUCING GAS • CENTRAL PROCESSING FACILITY (CPF) DESIGN COMPLETE • ENVIRONMENTAL APPROVAL • LANDHOLDER AGREEMENTS • EXPERIENCED OPERATIONS TEAM •
Slide 10: CBM Extraction Method
CBM EXTRACTION METHOD • NATURAL GAS FROM COAL • HORIZONTAL DRILLING TECHNIQUES • PROVEN TECHNOLOGY • MINIMUM FOOTPRINT ALLOWING AGRICULTURAL USE OF LAND TO CONTINUE • NO FRACKING REQUIRED • CBM CAN REPLACE HIGH CARBON PRODUCING POWER GENERATION • ELECTRICITY TO BE FED INTO THE NATIONAL GRID 10
Slide 11: How Have We Got Here?
HOW HAVE WE GOT HERE? 2009 2012 2014 2016 2017 2018 2019 • Operations • First Contingent •First CBM Gas • First Gas • Mining Licence • Increased Gas • Downstream Commenced Gas Resources produced by Reserves granted Reserves and Environmental Contingent approval Tlou Resources • Upstream Environmenta
Slide 12: ... and Where Are We Going?
… AND WHERE ARE WE GOING? •Gas Flows from Lesedi 3 & 4 •Mamba Project Drilling 2020* •Finalise PPA •Generation Licence •Seismic Survey •Development Financing •Reserves Upgrade •Construct Transmission Lines •SAPP Membership •Construct Central Processing Facility •Boomslang Environmental approval •Boo
Slide 13: Generating electricity from CBM in Botswana
… generating electricity from CBM in Botswana 13 www.tlouenergy.com
Slide 14: Independent Gas Reserves Certification
INDEPENDENT GAS RESERVES CERTIFICATION(1) 0.35 BCF (1P) 40.8 BCF (2P) 426.6 BCF (3P) (1) (2) Gas Reserves Gas Contingent Resources 1P 2P 3P 1C 2C 3C Gas Prospective Location Project Tlou Interest (BCF) (BCF) (BCF) (BCF) (BCF) (BCF) Resource (BCF)3 Lesedi CBM Karoo Basin Botswana (Lower Morupule coal
Slide 15: Gas Reserves Explained
GAS RESERVES EXPLAINED ➢ CONTINGENT RESOURCES – ESTIMATED GAS IN THE GROUND ➢ GAS RESERVES – GAS THAT MAY POSSIBLY BE COMMERCIALLY EXTRACTED ➢ CONTINGENT RESOURCES MOVE TO RESERVES THROUGH SUCCESSFUL EXPLORATION 3C Contingent 3P Gas 2P Gas Resources: Reserves: Reserves: ~3,043 BCF ~427 BCF ~41 BCF B
Slide 16: Potential Expansion and Revenue
POTENTIAL EXPANSION AND REVENUE ➢CBM SUITABLE FOR RAPID EXPANSION ➢POTENTIAL FOR SIGNIFICANT REVENUE FROM EXPANDED PROJECTS 10 MW project for 25 years 100 MW project for 25 years 300 MW project for 25 years ~$10m annual revenue2 ~$100m annual revenue2 ~$300m annual revenue2 Gas Reserves required: Ga
Slide 17: Environmental, Social and Governance
ENVIRONMENTAL, SOCIAL AND GOVERNANCE TLOU ENERGY IS VERY COMMITTED TO SUPPORTING INDIVIDUALS AND ORGANISATIONS LOCALLY AND PROVIDES SUPPORT WHERE POSSIBLE. Shoshong Constituency Foundation Trust (SCFT) • SCFT aims to bring local investment and jobs to the region • Lesedi project located in Shoshong
Slide 18: Environmental, Social and Governance
ENVIRONMENTAL, SOCIAL AND GOVERNANCE OTHER INITIATIVES SUPPORTED BY TLOU ARE OUTLINED BELOW. Moralane Village Community Development Initiative • Consultation with local village and other stakeholders to identify: • Job Creation • Poverty Eradication • Youth Empowerment • Development of entrepreneuri
Slide 19: Environmental Impact Statement (EIS)
ENVIRONMENTAL IMPACT STATEMENT (EIS) TLOU ENERGY IS COMMITTED TO PROVIDING CONTINUOUS ENVIRONMENTAL AND SOCIAL MONITORING OF ITS OPERATIONS TO ASSURE STAKEHOLDERS OF ITS SUSTAINABLE OPERATIONS THAT AIM TO PRESERVE THE ENVIRONMENT. • APPROVED EIS IN PLACE FOR ALL STAGES OF PLANNED DEVELOPMENT: • EXPL
Slide 20: Regional Power Market
REGIONAL POWER MARKET 90,000 80,000 • US80BN IN NEW GENERATION 70,000 CAPACITY REQUIRED • INCREASING DEMAND FOR CLEAN 60,000 POWER 50,000 USD M • AGEING POWER STATIONS • POWER TARIFFS RISING ACROSS THE 40,000 REGION 30,000 • A SIGNIFICANT FUTURE OPPORTUNITY FOR TLOU’S GAS-TO-POWER PROJECTS 20,000 10
Slide 21: CBM – A Pathway to Energy Security
CBM – A PATHWAY TO ENERGY SECURITY SUCCESSFUL CBM DEVELOPMENT COULD FACILITATE ENERGY SECURITY FOR BOTSWANA USING CLEAN NATURAL CBM GAS ❖ EXISTING ISSUES IN BOTSWANA: ❖ BOTSWANA POWER STATIONS NOT OPERATING AT FULL CAPACITY ❖ DIESEL FIRED POWER COSTS UNSUSTAINABLE ❖ ORAPA 90MW POWER PLANT NEEDS TO B
Slide 22: Project Benefits
PROJECT BENEFITS • FOR INVESTORS ❖ THE LEADING CBM PROJECT IN THE REGION ❖ SIGNIFICANTLY DE-RISKED ❖ ENABLES BOTSWANA TO INVEST IN A PROJECT OF LOCAL SIGNIFICANCE ❖ POTENTIALLY SIGNIFICANT UPSIDE AS THE PROJECT MOVES INTO DEVELOPMENT AND GENERATES FIRST REVENUE ❖ MUCH LARGER PROJECTS PLANNED POST TH
Slide 23: Tlou Energy Limited
TLOU ENERGY LIMITED AUSTRALIA BOTSWANA 210 ALICE ST GROUND FLOOR, VICTORIA HOUSE BRISBANE 132 INDEPENDENCE AVENUE QLD 4000 GABORONE +61 7 3012 9793 +267 316 0857 INFO@TLOUENERGY.COM ASX: TOU AIM: TLOU BSE: TLOU