Tlou Energy Ltd · ASX:TOU
Tlou Energy — Africa Oil Gas & Energy Australia Conference 2018
26 slides from Tlou Energy's conference presentation, Aug 27, 2018
Slide 1: Africa Oil Gas & Energy Australia Conference
Africa Oil Gas & Energy Australia Conference For personal use only Presentation – August 2018
Slide 2: Disclaimer
For personal use only 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: Air pollution deaths in China, India and globally
China 2016: 1.61 million people died from air pollution For personal use only India 2016: 1.58 million people died from air pollution Globally 2016: 6.1 million people died from air pollution Source: Blue Energy corporate presentation 19/7/2018
Slide 4: Tightening gas supply-demand balance
_ Tightening gas supply-demand balance ¢ Multiple levers tightening the Southern African gas supply-demand balance * Anumber of LNG projects about to commence development in Mozambique and Tanzania * Regional power sector plans favour gas-to-power as a reliable and lower emissions alternative to coa
Slide 5: For personal use only
For personal use only • Resources concentrated in a handful of countries • Mozambique- focused • Uncertainty over SA shale gas (economic, technical, environmental) • Offshore Kudu field stalled (Namibia)
Slide 6: LNG boom emerging
For personal use only LNG boom emerging * “LNG boom” starting to emerge * Tightening east coast gas market * Large projects starting to move forward * Coral FLNG * Rovuma LNG * Mozambique LNG * Tanzania LNG * Big players have set up for the long haul * Opens up exposure to LNG net-back pricing TLOU
Slide 7: Regional LNG projects
For personal use only Gas consumption Lifetime (Tcf) Start year Country Project Capacity (MTPA) (2) PJ/a (3) Status Partners Rovuma LNG (Exxon Mobil, Eni, CNPC) Development approvals, FID 70%, Galp (10%), KOGAS (10%), ENP Mozambique Rovuma LNG 15.2 (1) 17.9 827 2024 expected 2019 (10%) Anadarko (26.
Slide 8: Gas to electricity push
For personal use only * Gas is emerging as the fuel of choice alongside renewables (hydro, solar, wind) in regional development plans Gas to electricity push ¢ Lower emissions than coal * Quick start technologies (CCGT and OCGT) provide useful back-up to intermittent renewables * e.g. the South Afri
Slide 9: Gas generation capacity by country
For personal use only 14,000 12,000 10,000 8,000 MW 6,000 4,000 2,000 0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 South Africa Mozambique Botswana Namibia Source: regional government planning documents
Slide 10: Gas generation capacity and consumption by 2030
For personal use only Gas gen capacity estimated by 2030 (1) Gas consumption Country OCGT (MW) CCGT (MW) Total (MW) Lifetime (Tcf) (2) PJ/a South Africa 6,459 5,490 11,949 4.4 233.8 Mozambique 1,015 1,015 0.8 40.0 Botswana 110 110 0.1 4.3 Namibia 250 250 0.2 9.9 Total 6,459 6,865 13,324 5.5 288 (1)
Slide 11: Regional and sectoral gas demand
For personal use only Regional gas demand Sectoral gas demand 3,500 3,500 3,000 3,000 2,500 2,500 2,000 2,000 PJ/a PJ/a 1,500 1,500 1,000 1,000 500 500 0 0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Mozambique Bot
Slide 12: The east coast Australia experience
For personal use only 6 5 The east coast Australia experience 4 $/mmbtu 3 2 1 0 Netback LNG Japan ex Mozambique (est) Mozambique minimum wholesale price Sources: World Bank, Japan Ministry of Economy, Trade and Industry
Slide 13: Uncontracted gas optionality/value
La ENERGY * Competition emerging between gas-LNG and gas-to-power in the region ~Uncontracted gas optionality/value * Mozambique is the giant, and can supply LNG or pipeline to South Africa = This gas is largely accounted for. * Regional supply solutions reliant on infrastructure * Domestic market t
Slide 14: New generation capacity required across the region
For personal use only 90,000 • US80bn in new generation 80,000 capacity required across the region by 2030, to keep pace with 70,000 demand 60,000 • Zimbabwe USD8.8bn (50% of 50,000 USD M 2016 GDP) 40,000 • South Africa USD57.4bn • Namibia USD4.2bn 30,000 • Zambia USD5.9bn 20,000 • Botswana USD1.8bn
Slide 15: Power supply delay scenarios
For personal use only 450,000 400,000 We analysed 3- and 5- year delays 350,000 to new capacity , which could lead to severe power shortages in the 300,000 next decade 250,000 GWh 200,000 Power markets move in cycles of 1) supply surplus, 2) under- 150,000 investment, then 3) deficit. The 100,000 cu
Slide 16: Reliance on Eskom is unsustainable
Reliance on Eskom for long-term cad supply security is unsustainable eee «6m Bloomberg the Company & Its Products v | Bloomberg Anywhere Login | Bloomberg Terminal Demo Request w= Q Search Business What Is South Africa Doing to Tackle Its Electricity Crisis? By Michael Cohen and Paul Burkhardt 8 Sep
Slide 17: Traditional capacity planning approach
For personal use only Traditional capacity planning approach (dispatchable power only) • Botswana currently relies on imports from Eskom (SA) • Plans to become self-sufficient • Match long-term growth in peak demand against committed dispatchable capacity • Demand-supply balance grows tight, even as
Slide 18: Tlou Energy Ltd
For personal use only La ENERGY Tlou Energy Ltd * CBM proven around the world to be a reliable and economical supply for power and LNG * CBM Gas Reserves & Resources Booked and still growing * Environmental and Mining Approvals already in place * One of two companies which are pre-qualified to tende
Slide 19: Botswana Project Map
Botswana Project Map TLOU ENERGY For personal use only ee LEGEND Proposed Gas & Power Plant Pilot Pod Tlou Field Camp Tlou Laydown Yard Mining Licence Area Lesedi Project Mamba Project Border Proposed Power Letihakane 90MW Orapa Power Station Station Site Selemo Pilot - flowing gas since April 16 Mo
Slide 20: Tlou's CBM extraction method
For personal use only The Company extracts CBM natural gas from coal, using horizontal drilling techniques. This CBM gas can then be used for electricity generation. ➢ Tlou’s CBM extraction method ✓ Dual Lateral Pods, each comprising one vertical and two horizontal wells ✓ Proven technology ✓ Minimu
Slide 21: Generating power from CBM in Botswana
… generating power from CBM in Botswana For personal use only
Slide 22: Company milestones 2009-2018
For personal use only 2012 2014 2016 2018 First Contingent Gas First Gas Upstream Significant Increase in Resources Environment Gas Reserves and approval Contingent Resources First Gas Reserves 2009 2013 2015 2017 Botswana operations ASX Listing Increased Contingent First gas fired power commenced r
Slide 23: Independent Gas Reserves Certification
For personal use only Independent Gas Reserves Certification Technical Fundamentals (1) 0.35 40.8 426.6 Coal Depth ~350-800m BCF BCF BCF Gas Contents (Average) ~6 m3/t (DAF) (1P) (2P) (3P) Gas compositions ~90% methane (1) (2) Gas Reserves Gas Contingent Resources Tlou 1P 2P 3P 1C 2C 3C Gas Prospect
Slide 24: Upcoming work program
For personal use only Drilling Rig PPA Negotiations Downstream EIA Core-hole drilling acquisition* Pilot Well Drilling Seismic Surveys* Expanded Reserves Project Development* * Subject to funding.
Slide 25: Independently Certified Gas Reserves & Contingent Resources
For personal use only Independently Certified Gas Reserves & Contingent Resources Huge Supportive Low cost Significant High Impact drill market government drilling CBM experience program set to commence Aiming to provide power for Botswana and Southern Africa
Slide 26: Thankyou
For personal use only Thankyou Q2 2018
Tlou Energy — Africa Oil Gas & Energy Australia Conference 2018 on 6ix