Tlou Energy Ltd · ASX:TOU
Tlou Energy — Investor Presentation (May 2017)
24 slides from Tlou Energy's investor presentation, May 10, 2017
Slide 1: May 2017 Corporate Presentation
0 For personal use only MAY 2017 www.tlouenergy.com
Slide 2: Disclaimer
DISCLAIMER 1 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, in
Slide 3: About Tlou Energy
ABOUT TLOU ENERGY 2 For personal use only Who A Coalbed Methane (CBM) Gas-to-Power Development Company Assets Extensive Gas Reserves and Resources in Botswana Our Supply Power to the huge market in Botswana & Southern Africa Goal Current Up to 100 MW Botswana Government supported Power Proposal Focu
Slide 4: Overview
OVERVIEW 3 Aiming to monetise the Company’s Gas assets through the supply of For personal use only power to Botswana and Southern Africa ➢ Independently Certified Gas Reserves in place ➢ Approved Environmental Impact Statement for upstream development ➢ Attractive market, high power demand locally &
Slide 5: Coalbed Methane (CBM)
COALBED METHANE (CBM) 4 Natural gas produced from coal seams typically at depths of 400m-1,000m For personal use only CBM Production Process Gas collected at the surface – Drilling into & then Initially releasing water & processed & used for power along coal seams then natural gas generation, LNG et
Slide 6: Botswana: Favorable Environment for Resource Investment
BOTSWANA 5 Favorable Environment for Resource Investment For personal use only • Growing economy, Stable, Corruption Perceptions Index democratic government Score • Supportive stakeholders with a desire to: Very Clean 9.0–10.0 8.0–8.9 o Reduce foreign electricity 7.0–7.9 dependence 6.0–6.9 5.0–5.9 o
Slide 7: Gas to Power Plans in Botswana
GAS TO POWER PLANS IN BOTSWANA 6 For personal use only Project Location and Supporting Infrastructure www.tlouenergy.com
Slide 8: Regional Power Market
REGIONAL POWER MARKET 7 Government of Botswana looking to move away from expensive diesel For personal use only generation and imported power Southern African Development Community - Supply and Demand • Botswana’s demand predicted to increase 31% to 1,017 MW by 2025 • Current demand not being met •
Slide 9: Reserves and Resources
RESERVES AND RESOURCES 8 Independent Gas Reserves Certification Technical Fundamentals (1) For personal use only 0.17 3.9 261.1 Coal Depth ~260-764m BCF BCF BCF Gas Contents (Average) 4-6 m3/t (DAF) (1P) (2P) (3P) Gas compositions 80-95% methane (1) (2) Gas Reserves Gas Contingent Resources Tlou 1P
Slide 10: Project Development Strategy
PROJECT DEVELOPMENT STRATEGY – up to 100 MW 9 Independent Power Corporation (IPC*) Heads of Agreement For personal use only - A major step towards commercialising Tlou’s gas resources ➢ Tlou & IPC to jointly develop a CBM to power project (IPP Project) ➢ In-principle Funding Support received from IP
Slide 11: Initial Project – Milestones
INITIAL PROJECT – MILESTONES 10 Plan to deliver first gas to market via the first phase (up to 10 MW) of For personal use only the 100 MW Government Request for Proposal (RFP) Q2 2017 Q3 2017 Q4 2017 Q1 2018 •Feasibility Study •RFP Submission •Core Wells •RFP Response •Project structure •Mining Lice
Slide 12: Long Term Expansion Potential
LONG TERM EXPANSION POTENTIAL 11 Vision to build a mid-tier energy provider in Southern Africa For personal use only Export Power Expanded Botswana Generation Orapa diesel to gas 90 MW conversion Up to 100 MW RFP project The Orapa 90MW power plant is an existing government operated dual fuel (diesel
Slide 13: Investment Case
INVESTMENT CASE 12 For personal use only Tlou has: an enormous quantity of independently certified gas a huge electricity market on its doorstep and a very supportive government the experience and partners, together with access to funding, to make the project happen www.tlouenergy.com
Slide 14: Appendix
APPENDIX 13 For personal use only MARKET ASX / AIM EPIC TOU / TLOU SHARES IN ISSUE ~304M (Fully Diluted ~311M) MARKET CAP (30-April-17) AUD ~$35M / GBP ~£20M CASH BALANCE (30-April-17) AUD ~$7M NOMAD GRANT THORNTON UK LLP JOINT BROKERS SHORE CAPITAL STOCKBROKERS LIMITED / OPTIVA SECURITIES LIMITED P
Slide 15: Board of Directors
BOARD OF DIRECTORS 14 Led by an experienced team including a pioneer of CBM in Queensland For personal use only • Over 17 years experience in finance and mining services Martin McIver • Formerly with PwC Chairman • Current General Manager – Mergers and Acquisitions of the WorkPac group • Geologist w
Slide 16: Key Management and Consultants
KEY MANAGEMENT AND CONSULTANTS 15 Experienced management team and consultants to drive the project For personal use only • 28 years in the drilling industry including 16 years in the Oil & Gas/CBM Sector Danny Horne • Qualified in Diesel Engineering Chief Operating Officer • Diploma of Drilling (Ons
Slide 17: Partners and Consultants
PARTNERS AND CONSULTANTS 16 Experienced partners with worldwide expertise For personal use only Independent Power SRK Consulting Corporation • IPC is a British power development company, • Independent specialist geological consultants specialising in high efficiency, low emissions, gas fired power p
Slide 18: Coalbed Methane (CBM)
COALBED METHANE (CBM) 17 For personal use only What is CBM? • Chemically identical to other sources of gas but is produced by non- conventional methods • Extracted from coal seams rather than sandstone reservoirs • Main component from natural gas is methane • Typically found at depths of 400m – 1,00
Slide 19: Geological Data
GEOLOGICAL DATA 18 Geological Database for the Lesedi and Mamba Projects For personal use only • Extensive geological database used to provide an accurate sub-surface picture • Comprises over 100 wells in the Tlou Project area and surrounds • Includes many wells cored and evaluated for CBM parameter
Slide 20: Geological Data: Aeromagnetic Map
GEOLOGICAL DATA 19 Aeromagnetic Map of the Lesedi and Mamba Projects For personal use only • Tlou recently commissioned reprocessing of existing aeromagnetic data • Structural features are now more clearly evident • Lower risk areas have been high-graded for more work • Provides framework for new se
Slide 21: Geological Data: Cross-section A-A’
GEOLOGICAL DATA 20 Cross-section A-A’ showing lateral extent of Lower Morupule Coal target For personal use only Lower Morupule Coal target section Thickness Additional CBM is laterally variations are targets also exist extensive over relatively minor large distances www.tlouenergy.com
Slide 22: Transmission Development Plan
TRANSMISSION DEVELOPMENT PLAN 21 For personal use only Source: BPC, Botswana Resource Sector Conference 2016 www.tlouenergy.com
Slide 23: Project Images
PROJECT IMAGES 22 Field Camp, Botswana Operations, March 2017 For personal use only Tlou CBM Well www.tlouenergy.com
Slide 24: For personal use only
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