Slide 1: Preparing for First Oil in Cameroon
Preparing for First Oil in Cameroon November 2018
Slide 2: Disclaimer
Disclaimer Important Notice DISCLAIMER The information contained in these slides has been prepared by Tower Resources plc (the “Company”). This Presentation is being made for information purposes only and does not constitute an offer or invitation for the sale or purchase of securities or any of the
Slide 3: Summary
Tower Resources Summary Focus on Sub-Saharan Africa ! Cameroon – near-term appraisal drilling ! Namibia – new Petroleum Agreement signed ! South Africa – farm-out process underway ! Legacy assets/relationships in SADR and Zambia Preparing for first oil in Cameroon ! Drilling NJOM3 well on Thali lice
Slide 4: Capital Structure
Tower Resources Capital Structure Capital Structure Shareholders Listing AIM Share price 1.475p Market capitalisation ~ £5.6m Issued share capital 377.3m Employee options and 16.6m (3.8%) unvested Equity Awards‡ Warrants‡ 43.4m (9.9%) Director, staff and 14.7% consultant holdings Average Daily Volum
Slide 5: Tower's Team
Tower Resources Tower’s Team ! Small committed board with significant personal investment ! Directors own ~15% of issued shares Jeremy Asher Peter Taylor Graeme Thomson David M Thomas Chairman & Non-Executive Non-Executive Non-Executive Director Director Director ! CEO UK staff with the company sinc
Slide 6: Thali Block
Tower Resources Cameroon, Rio del Rey Basin Thali Block THALI PSC © 2018 Tower Resources plc 6
Slide 7: Rio del Rey – Proven Plays in Niger Delta
Cameroon, Thali Block Rio del Rey – Proven Plays in Niger Delta NIGERIA Rio Del Rey Basin CAMEROON ! Underexplored sub- RIO DEL REY BASIN basin of the prolific > 2 Billion bbl / >1.4 TCF Niger Delta ! >> 34.5 Billion bbls found in whole Niger UBIT Delta Basin 2 Billion bbl OAK ! >2 billion bbls EDOP
Slide 8: Local Infrastructure
Cameroon, Thali Block Local Infrastructure DISSONI NORTH (PERENCO OPERATED) 20 THALI PSC PERENCO / ADDAX Contingent OPERATED FIELDS OAK 30 Prospective (PERENCO AQUIRED 50% INTEREST IN 2018) 40 (FSO) 50 THALI Fields: MASSONGO TERMINAL 5 Water depth (m) © 2018 Tower Resources plc 8
Slide 9: Updated Pmean Resource Estimates
Cameroon, Thali Block Updated Pmean Resource Estimates DISSONI NORTH FIELD SHALLOW PLAYS 25 MMbbl Contingent Prospective XX MMbbl = DISSONI SOUTH arithmetically summed FAULT BLOCK A total unrisked gross 37.8 MMbbl Pmean recoverable oil (Reserves Report, 2018) IDENAO EAST FOI 1 AKONO ERONG 37.1 MMbbl
Slide 10: Existing Discoveries on Block
Cameroon, Thali Block Existing Discoveries on Block Njonji Discovery ! Two proven fault blocks (+ add-on prospects) ! Average 35° API oil ! Shallow drilling depths (900 - 1100m) ! 30m water depth NJONJI - CONTINGENT RESOURCES (Recoverable Oil, MMbbl) Low Best High Mean Estimate Estimate Estimate Pha
Slide 11: Additional Shallow Prospectivity
Cameroon, Thali Block Additional Shallow Prospectivity Dissoni South & Idenao East Prospects ! Multiple shallow prospects (< 1200m depth) identified ! Adjacent to the producing Dissoni North field ! Stacked reservoir targets DISSONI & IDENAO - PROSPECTIVE RESOURCES (Recoverable Oil, MMbbl) Low Best
Slide 12: Deeper Prospectivity
Cameroon, Thali Block Deeper Prospectivity Map WEST EAST DISSONI showing Dissoni South Fault Blocks SOUTH low risk analogous to Dissoni North (1000-1500m) Pliocene Channels shallow Zafiro-type play, Idenao leads (1500-2500m) LINE fault blocks Toe Thrust Anticline Idenao High (2000-3000m) IDENAO Mini
Slide 13: Njonji Development
Cameroon, Thali Block Njonji Development ! NJOM3 drill & extended well test - confirm development strategy ! Phased approach, low upfront costs - leased MOPU* & shuttle tanker ! Wells deviated from centralised hub(s) - reduce surface infrastructure requirements 2019 2020 2021 FINAL PLANNING, CONTRAC
Slide 14: Njonji Economics
Cameroon, Thali Block Njonji Economics • Best estimate Contingent Resources NPV10 of $158 million and EMV10 of $118 million • NPV10 and EMV10 take into account costs of development including April 2019 well • Over $100 million of further NPV10 in Njonji South if the prospective deeper reservoir can
Slide 15: South Africa: Farmout Process Underway
South Africa Farmout Process Underway Algoa-Gamtoos (Tower interest 50%) acquired with Rift Petroleum ! Operator: New Age ! 3D acquired in 2014 ! 1st Renewal Period granted in Sept 2015, agreed in August 2017 ! Additional geophysical work planned in 2019 ! Total, Exxon, BHP, Statoil all nearby © 201
Slide 16: South Africa: Five Key Prospects, Three Plays
South Africa Five Key Prospects, Three Plays Substantial Prospective Resources ! Gamtoos Basin: Roan, Reedbuck and Steenbock prospects covered by extensive 2D ! Algoa Basin: Canyon prospect, already covered by 3D ! Outeniqua Basin: Deep Albian prospect on trend with Brulpadda, limited 2D only, but i
Slide 17: Namibia: New Petroleum Agreement Signed
Namibia New Petroleum Agreement Signed New License Covers Blocks 1910A, 1911 & 1912B ! Operator: Tower with 80% interest ! Local partner and Namcor to hold 20% ! Subject to JOA and ancillary documents ! Very large area of 23,297 km2 ! Tower knows these blocks very well ! Recent farm-ins by Exxon, Af
Slide 18: Namibia: Multiple Plays, Stacked Targets
Namibia Multiple Plays, Stacked Targets ! Norsk Hydro wells (mid-1990s) proved presence of: ! Thick Palaeocene, Maastrichtian & Campanian turbidite sands ! Good quality Albian carbonate reservoirs ! Multiple large structural traps identified and mapped on existing 2D seismic Giant 4-way Dip Closures
Slide 19: Summary
Tower Resources Summary Focus on Sub-Saharan Africa ! Cameroon – near-term appraisal drilling ! Namibia – new Petroleum Agreement signed ! South Africa – farm-out process underway ! Legacy assets/relationships in SADR and Zambia Preparing for first oil in Cameroon ! Drilling NJOM3 well on Thali lice
Slide 20: Appendix
APPENDIX
Slide 21: Njonji – Contingent Resources
Cameroon, Thali Block Njonji – Contingent Resources STOIIP (MMSTB) Recoverable Oil (MMSTB) Fault Block Reservoir P90 P50 P10 Mean P90 P50 P10 Mean Njonji 1 PS9_R1_R1X_R2 11.06 24.93 43.55 26.37 2.38 6.87 14.84 7.89 Njonji 1 PS3_R1 7.21 17.75 35.50 19.91 1.53 4.91 11.85 6.02 Njonji 1 PS3_R2 0.86 1.91
Slide 22: Njonji – Prospective Resources
Cameroon, Thali Block Njonji – Prospective Resources STOIIP (MMSTB) Recoverable Oil (MMSTB) Fault Block Reservoir P90 P50 P10 Mean P90 P50 P10 Mean Njonji South PS9_R1_R1X_R2 1.68 4.46 15.39 4.96 0.16 0.71 2.02 0.94 Njonji South PS3_R1 18.73 49.73 96.00 54.68 4.29 13.67 32.22 16.58 Njonji South PS3_
Slide 23: Northern area Prospective Resources
Cameroon, Thali Block Northern area Prospective Resources STOIIP (MMSTB) Recoverable Oil (MMSTB) Fault Block Reservoir P90 P50 P10 Mean P90 P50 P10 Mean Dissoni South Fault Block A S5 35.29 112.69 228.31 123.87 8.33 30.86 76.21 37.81 Dissoni South Fault Block B S5 5.76 20.25 53.20 25.81 1.34 5.62 16