Tlou Energy Ltd · ASX:TOU
Tlou Energy — Investor Presentation (December 2015)
27 slides from Tlou Energy's investor presentation, December 2015
Slide 1: Gas to Power in Botswana
“Gas to Power in Botswana” ASX ticker: TOU AIM ticker: TLOU December 2015
Slide 2: Disclaimer
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
Slide 3: Disclaimer continued
Disclaimer continued Future performance This Presentation contains certain “forward-looking statements”. Forward looking words such as, “expect”, “should”, “could”, “may”, “plan”, “will”, “forecast”, “estimate”, “target” and other similar expressions are intended to identify forward-looking statemen
Slide 4: Company Snapshot
Company Snapshot ASX Listed (Ticker: TOU); ASX Trading – last 6 months AIM Listed (Ticker: TLOU) 8,300km² CBM permits in Botswana Energy deficit in Botswana and wider Southern Africa region Focused on commercialising gas in 2016 CEO (8.66%) and Chairman (8.11%) are the largest shareholders
Slide 5: Botswana CBM Project
Botswana CBM Project ~ Letihakane . LEGEND =—1 Proposed Gas Pipeline CNG Route Substation Power Plant Gas Plant Pilot Pod Camp & Laydown Yard Transmission Network oe 33 KV oe BB KV ae 132 KV 220 kV ~~ 400 KV CNG Road Transport _Lesedi CBM Project Permit {il Mamba Project Permit {7 Administration Bor
Slide 6: Board of Directors
Board of Directors Anthony (Tony) Gilby – MD & CEO • Geologist with >30 years industry experience • Co-founder of a number of CBM companies including Sunshine Gas • Previous technical roles for ESSO & Exxon • Took Sunshine Gas from small CBM explorer to certified 3P gas reserves >1,000PJ’s • Led tak
Slide 7: Strong Track Record
Strong Track Record The founders of Tlou were pioneers of the CBM industry in Queensland Tony Gilby developed ASX-listed Sunshine Gas from a small exploration company to its eventual takeover by QGC (BG) in 2008 Nathan Mitchell, CEO of Mitchell Drilling, pioneered Surface to In-Seam drilling a
Slide 8: Listed Peer Group
Listed Peer Group 2P + 2C EV to Company Country Type Stage EV resources 2P+2C US$m Bcf US$/Bcf Green Dragon Gas China CBM Production 699.7 446.8 1.57 Wentworth Resources Tanzania Conventional Development 90.7 95.5 0.95 Aminex Tanzania Conventional Development 53.1 68.9 0.77 Victoria Oil & Gas Camero
Slide 9: Key Steps to Unlock Value
Key Steps to Unlock Value LOW Gas Production H2 2016 to power Reserve H1 2016 certification Development Risk Sustained gas Q1 2016 production Dewater multi-well pilots Multi-well pilot pod expansion Flowed gas from single pilot pod HIGH 9
Slide 10: Market & Commercialisation
Market & Commercialisation 10
Slide 11: Electricity Supply & Demand
Electricity Supply & Demand Source: Norconsult Market Report, 2013 Botswana is looking to increase the supply of power from the Morupule B power station commissioned in 2013 Morupule B consists of 4x132 MW units of net capacity at a cost of P11 billion (>US1 billion); only 2 units are currently
Slide 12: Investment Proposition
Investment Proposition Tlou provides the entry point into the most advanced gas project in Botswana Botswana has a severe energy shortage and is relying on non-firm imports and diesel generation Tlou has an immediate and long term opportunity to provide domestic gas/power and displace the expe
Slide 13: Proposed Sales Routes
Proposed Sales Routes Phase Market Opportunity Strategy 1 Compressed • Off-grid power solution for Production testing Selemo multi-well pilot pods Natural Gas (CNG) mining companies (~1- 5 Install 1MW compressed natural gas (CNG) MW’s) equipment Convert Selemo wells and field operations to gas
Slide 14: Investor Highlights
Investor Highlights Most advanced Highly A$43m project CBM gas project experienced investment (as in Botswana team at June 2015) Key milestones Premium gas to deliver Multiple routes price shareholder to monetise gas environment value 14
Slide 15: Company Summary
a TLOU ENERGY Company Summary 15
Slide 16: History
History Listed on ASX in April 2013; Listed on AIM November 2015 A$43m project investment as at June 2015 Vertical Pilot Contingent Tlou farm-in: Wells: Lateral Pilot Wells: Resource Upgrade: 1,321 desorption Pre-feasibility pilot 2 lateral pilot pods at Certified by SRK – samples from wells (2
Slide 17: Botswana CBM Project
Botswana CBM Project TLOU ENERGY Power Station ANGOLA Diamond Mine 6 BOTSWANA ZIMBABWE ‘ fitz . LN NAMIBIA y \ \ Morupule Power } \ Selemo Pilot Pod Station \ | supp \ Lesedi Pilot Pod t 3S - Pat = Ser Cc = \ re S08 cy coin urvien ‘© ™ \ ff Pay ® \ \ t ‘GABORONE veceno ‘ Tlou Base Camp \ 1 Main road
Slide 18: Reserves and Contingent Resources
Reserves and Contingent Resources Certified Resource Statement Unrisked Gross Unrisked Net OGIP(1) (100 Percent) (100 Percent) Certified Contingent Resource Category (BCF) (BCF) (BCF) Contingent Resources (SRK, 2015) 4.9 BCF (1C) Low Estimate (1C) 7.6 4.9 4.9 239 BCF (2C) Best Estimate (2C) 367.
Slide 19: Lesedi CBM Project Technical Fundamentals
Lesedi CBM Project Technical Fundamentals Coal depth ~260-764m Cumulative net coal thickness 24m (Average) Gas contents 4-6 m3/t (DAF) (Average) Unstimulated reservoir ~2-5mD permeability per DST Gas compositions 80-95% methane 19
Slide 20: Lesedi Operations
Lesedi Operations Aerial view of Operations Selemo Pod Gas flare - Selemo Pod December 2014 20
Slide 21: Lesedi Project
Lesedi Project TLOU ENERGY y Sh ‘\ € 25% Bela TIN 328 ~1000m ~150m 2015 Selemo. Expansion D3-3X -<O- Selemo 1P Dec’ 10km ra Approximate z= C1-2X Lesedi 1P Agen’ Gas gathering Tine (proposed) Mopani 1P Pre-existing 5 spot @ Fomy Tlou Energy Field Camp @ ’ LEGEND ” Gas flow recorded Potential gas prod
Slide 22: Thank You
Thank You 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 AIM: TLOU
Slide 23: Appendix
ee |h6hlUet TLOU ENERGY Appendix 23
Slide 24: Coal Bed Methane (CBM)
Coal Bed Methane (CBM) CBM is chemically identical to other sources of gas but is produced by non-conventional methods CBM is extracted from coal seams rather than from sandstone reservoirs The main component of natural gas is methane CBM is produced by drilling into and then along coal seam
Slide 25: The Global CBM Industry
The Global CBM Industry China First CBM project in 1995 By end of 2015 2850 MW will supply 3.2 Million households with CBM/CMM fuels Australia CBM contributed 87% USA of Queensland gas Pioneered CBM production in 2014 industry in 1970-80’s CBM expected to Approx. 7% of all gas contribute
Slide 26: Horizontal Pilot Design
Horizontal Pilot Design • 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) 26
Slide 27: Botswana
Botswana Stable jurisdiction Extensive coal resources Gassy coal Attractive operating and regulatory regime Major energy shortfall in the Botswana and the South Africa region High energy prices Large mining industry to power 27