Slide 1: Investor Presentation August 2012
Welcome Investor Presentation August 2012 © 2012 Tower Resources plc
Slide 2: Tower Resources Snapshot
Tower Resources Snapshot • AIM listed E & P: Focus Africa/Mid East – Currently: Namibia, SADR, Uganda (Office) • Market Capitalisation at 3.7 p share $95m (£60 m) • Main Shareholders: Board of Directors J. Asher (Chairman) 11.3% G. Thomson (CEO) 0.3% (1.6% fully diluted) P. Taylor (NED) 6.1% P. Blak
Slide 3: Board of Directors
Tower Resources Board of Directors Graeme Thomson Jeremy Asher CEO Chairman § Graeme Thomson has over 30 years public company § Jeremy Asher is an experienced investor in natural experience, and has held a number of senior positions in resource companies. the oil and gas business. Joined as CEO on
Slide 4: Board of Directors
Tower Resources Board of Directors Peter Taylor and Peter Blakey Jim Webb Directors Exploration Manager § Peter Taylor and Peter Blakey are experienced entrepreneurs in founding • Geologist with more than 40 years of exploration and and developing oil and gas exploration companies. appraisal experi
Slide 5: Summary: Two Areas of Activity - Namibia
Summary Two Areas of Activity Namibia • 30% working interest in three offshore blocks (licence 0010) 12,000 km2 following conditional purchase doubling interest announced on 30th July 2012 • Deal increased upside potential per share by 50% • 1,600 km2 3D seismic programme completed in 2011 • Delta M
Slide 6: Summary: Two Areas of Activity - Western Sahara
Summary Two Areas of Activity Western Sahara • 50% interest in three licenses in the Saharawi Arab Democratic Republic • Operator is Wessex Petroleum PLC • Two offshore, one onshore • Operations cannot begin before sovereignty of the region has been finally resolved © 2012 Tower Resources plc 6
Slide 7: Atlantic Margin Basins Geographically Analogous
Namibia Atlantic Margin Basins Geographically Analogous • Brazil and Namibia shared similar geology during the early phase of South Atlantic break-up and pull apart • The Namibia offshore basins mirror the highly prospective Santos basin in Brazil • High exploration success rates in Brazil is of sig
Slide 8: Correlation of the South Atlantic margins
Namibia BRAZIL NAMIBIA Arcadia license Parana basin Etendeke volcanics Santos & Walvis basins Correlation of the South Atlantic margins and the Lower Cretaceous volcanics © 2012 Tower Resources plc 8
Slide 9: Licence areas
Namibia Licence areas Licence Area Ac-vity Timeline 1 Contingent 1811A 2012-3 1910A 1 Firm 2013 1 Contingent 2014 TBC 2 Firm 2 2012-3 Contingent 3D seismic 0047 4,150km2 2012 1 firm 2714B Drilling-2013 1 Contingent Active local drilling schedule in 2012 anticipated to generate regular news flow © 20
Slide 10: Tower CPR Prospective Recoverable Resources
Namibia Tower CPR Prospective Recoverable Resources June 2011 CPR Gross Unrisked Best Total Net Estimate* GCOS(%) / risked Horizon ECOS (%) Resources** § Calculated risked EMV10 for the Oil (MMstb) Gas (MM Boe) (BCF) prospec8ve resources of Tower in just the Delta Maastrich0an Delta Maastrich8an 2,
Slide 11: Three significant structures identified
Namibia Three significant structures identified Delta Maastrichtian Depth Map § 2010 3D clearly delineates five potentially large reservoirs on Delta, with total of 9.256bn STB Unrisked Gross Prospective resources § Maastrichtian and Palaeocene Prospects are the largest: – Combined best estimate U
Slide 12: Strong evidence for hydrocarbon charge
Namibia Strong evidence for hydrocarbon charge Delta § High resolution 3D seismic line showing -‐ Very strong and continuous AVO anomalies at the Maastrichtian level -‐ Numerous and lengthy pockmarks (chimneys) - indicating the presence of hydrocarbons - thereby boosting the GCOS to 40% (ECOS 31%
Slide 13: 3D AVO Soft-sediment deformation
Namibia 3D AVO Soft-sediment deformation “Pock Marks” scattered across twt structure 3D View Paleocene & Deformation Features (vertical view) “Pock Marks” scattered across twt structure © 2012 Tower Resources plc 13
Slide 14: Current position and next steps
Namibia Current position and next steps Current Position • Two prospects, five leads and three plays identified on the licence confirmed by recent 3D seismic • Recent farm-out activity validates prospectivity of region and interest of major IOCs • Repsol conditionally farmed-in July 2012 for a 44% i
Slide 15: Funding: Cash Position
Tower Resources Funding Cash Position • Raised $9.2 million in placing in July 2012 to directors & existing shareholders • Low overheads, part paid in warrants • Approximately $5.2 million of uncommitted (non-well) cash on hand as of 29th August 2012 • Future working capital needs are also supported
Slide 16: Appendix
Appendix © 2012 Tower Resources plc 16
Slide 17: CPR assumptions
Namibia CPR assumptions ICE UK Brent Futures Slate 31/5/11 (Year Average) ICE UK Gas Futures Slate 31/5/11 (Year Average) © 2012 Tower Resources plc 17
Slide 18: Regional Aptian Lacustrine Clays Maturity Map
Namibia Regional Aptian Lacustrine Clays Maturity Map After Geotrack International 1998 © 2012 Tower Resources plc 18
Slide 19: Generalised stratigraphy: basin rifting continued to Late Cretaceous
Generalised stratigraphy Hydrocarbon sources and reservoirs Shallow sands with gas Top regional seal Eocene-Oligocene sand Possibly 28m net Phi 20 –25% Sands Late Palaeocene sand Base Ter-ary Possibly 34m net Phi 20-25% Unconformi-es / Low yield oil shows in Upper Low stands Palaeocene sand Late Cre
Slide 20: AVO responses
Namibia AVO responses Palaeocene Ponded sands Shallow gas Maastrichtian anomaly Campanian © 2012 Tower Resources plc 20
Slide 21: Maastrichtian Delta Prospect
Namibia Maastrichtian Delta Prospect AVO Anomaly Map and Closure Areas Red area 128 sq Km CPR P99 Resource Yellow area 298 sq Km CPR P50 Resource Green area 734 sq Km CPR P1 Resource Outlines for 3 different degrees of AVO response © 2012 Tower Resources plc 21
Slide 22: AVO Anomaly map Far Stack
Namibia AVO Anomaly map Far Stack (No AVO = blue) (rota8ng) © 2012 Tower Resources plc 22
Slide 23: All closures
Namibia All closures © 2012 Tower Resources plc 23
Slide 24: Disclaimer Important Notice
Disclaimer Important Notice The information contained in these slides has been prepared by the directors of Tower Resources plc (the “Company”). The information contained in these slides, the presentation made to you verbally and any other information provided to you (in writing or otherwise) in con