Tlou Energy Ltd · ASX:TOU
Tlou Energy — Investor Presentation (March 2017)
24 slides from Tlou Energy's investor presentation, Mar 29, 2017
Slide 1: Corporate Presentation March 2017
0 For personal use only CORPORATE PRESENTATION MARCH 2017 www.tlouenergy.com
Slide 2: Disclaimer
DISCLAIMER 1 These presentation slides and the accompanying verbal presentation (together the “Presentation Materials”) are confidential and have been issued in connection with the placing of new ordinary shares (“Placing Shares”) in For personal use only the capital of Tlou Energy Limited (the “Com
Slide 3: Disclaimer
DISCLAIMER 2 Investors are advised that by their nature as visual aids, presentations provide information in a summary form. The key information on detailed resource statements can be found in the Company’s ASX and AIM press releases. For personal use only Resource statements are provided to comply
Slide 4: Board of Directors
BOARD OF DIRECTORS 3 Led by an experienced team including a pioneer of CBM in For personal use only Queensland • 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 wi
Slide 5: Key Management and Consultants
KEY MANAGEMENT AND CONSULTANTS 4 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 (Onsh
Slide 6: Overview
OVERVIEW 5 Tlou aims to deliver a gas-to-power solution to a market with a For personal use only chronic energy shortfall • Coalbed Methane (CBM) Gas-to-power development in Botswana and Southern Africa • Attractive market due to the chronic energy shortage locally & regionally • High potential powe
Slide 7: Coalbed Methane (CBM)
Coalbed Methane (CBM) 6 For personal use only • Chemically identical to other sources of CBM Production Process gas but is produced by non- conventional methods Drilling into & Initially Gas collected at the releasing water surface – processed • Extracted from coal seams rather than then along & the
Slide 8: Regional Power Dynamic
REGIONAL POWER DYNAMIC 7 As Botswana’s reliance on non-firm imports and on-going diesel generation increases, the support for domestic sources of energy is For personal use only strong Southern African Development Community - Supply and Demand • Botswana’s demand predicted to increase 31% to 1,017MW
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: Investment Case
INVESTMENT CASE 9 Significantly de-risked and well advanced CBM project For personal use only CBM reserves in place Request for Proposal (RFP) for up to 100 MW of Reserves booked in both the Lesedi CBM power and Mamba projects Government plan to add CBM power to their generation mix as soon as The c
Slide 11: Long Term Expansion Potential
LONG TERM EXPANSION POTENTIAL 10 Long term 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 10-100 MW RFP project • The Orapa 90MW power plant is an existing government operated dual fue
Slide 12: Gas to Power Plans in Botswana
GAS TO POWER PLANS IN BOTSWANA 11 For personal use only Project Location and Supporting Infrastructure www.tlouenergy.com
Slide 13: Partners and Consultants
PARTNERS AND CONSULTANTS 12 Experienced partners with worldwide expertise For personal use only Independent Power Corporation SRK Consulting • Independent specialist geological • IPC is a British power development company, specialising in high efficiency, low emissions, consultants gas fired power p
Slide 14: 10-100 MW Project Development Strategy
10-100 MW PROJECT DEVELOPMENT STRATEGY 13 IPC Heads of Agreement is a major step in commercialising Tlou’s gas For personal use only resources Tlou and IPC to jointly develop an initial 10 MW CBM to power project (IPP Project) IPC funding partners have provided letters of interest for in-princip
Slide 15: Exploration and Reserves Definition
EXPLORATION AND RESERVES DEFINITION 14 Forward Work Programs For personal use only Expanded Reserves Certification work program aims to increase the 2P and 3P reserves currently in place, based on recommendations from SRK following their geological review of Tlou’s data in March 2017. These recommen
Slide 16: Work Program to Expand Gas Reserves
WORK PROGRAM TO EXPAND GAS RESERVES 15 Work program to complete regulatory requirements and expand For personal use only independent certified gas reserves Studies Reserves Working Capital Project reports Seismic acquisition and General, Corporate and (downstream drilling and analysis of Administrat
Slide 17: Initial Project – Milestones
INITIAL PROJECT – MILESTONES 16 Plan in place to deliver first gas to market via the first phase (10 MW) For personal use only of the 100 MW RFP tender Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 H2 2018 H1 2019 H2 2019 RFP Response Complete Drilling First Power to Feasibility Study RFP Submission Seis
Slide 18: Summary
Summary 17 For personal use only Government RFP for Approved EIS for CBM Reserves in up to 100MW Upstream Place Project Development In-Principle Attractive Market funding for 100% Owned Opportunity downstream project www.tlouenergy.com
Slide 19: Appendix
APPENDIX 18 For personal use only MARKET ASX / AIM EPIC TOU / TLOU SHARES IN ISSUE 237M MARKET CAP (13-Mar-17) AUD - $27M / GBP - £17M CASH BALANCE (31-Dec-16) AUD - $2.4M NOMAD GRANT THORNTON UK LLP JOINT BROKERS SHORE CAPITAL STOCKBROKERS LIMITED / OPTIVA SECURITIES LIMITED PROJECT CO-SPONSOR INDE
Slide 20: Geological Data
GEOLOGICAL DATA 19 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 paramet
Slide 21: Geological Data: Aeromagnetic Map
GEOLOGICAL DATA 20 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
Slide 22: Geological Data: Cross-section A-A'
GEOLOGICAL DATA 21 Cross-section A-A’ showing lateral extent of Lower Morupule Coal target For personal use only • Lower Morupule Coal target • Thickness variations are • Additional CBM targets also section is laterally extensive relatively minor; exist. over large distances; www.tlouenergy.com
Slide 23: Transmission Development Plan
TRANSMISSION DEVELOPMENT PLAN 22 For personal use only Source: BPC, Botswana Resource Sector Conference 2016 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