Tlou Energy Ltd · ASX:TOU
Tlou Energy — Investor Presentation (November 2013)
24 slides from Tlou Energy's investor presentation, Nov 29, 2013
Slide 1: Amended Capital Raising Presentation
For personal use only AMENDED CAPITAL RAISING PRESENTATION Tony Gilby, Managing Director 29 November 2013
Slide 2: Important notice and disclaimer
Disclaimer Important notice and disclaimer For personal use only This presentation is prepared by Tlou Energy Limited (“Tlou” or the “Company”) and may contain forward-looking statements with respect to the financial condition, resources, assets and business of Tlou and certain plans and objectives
Slide 3: Overview of Tlou's Karoo Central Project
Overview of Tlou’s Karoo Central Project Southern African Unconventional Gas Specialist For personal use only One of the most advanced unconventional Karoo Central Project Overview gas projects in Botswana ― 100% ownership key Karoo Central project ― Additional permit applications in Botswana ― Al
Slide 4: Investment Highlights
Investment Highlights 1 For personal use only Board and management team with successful track record Pioneers in Queensland CBM industry 2 Favourable operating and regulatory environment Low cost location (approx. 50% of Australia) combined with government initiatives supporting CBM development
Slide 5: Corporate Overview
Corporate Overview Capital Structure (ASX:TOU) Share Price History For personal use only Share price (as at 26 Nov 13) $0.40 Shares on issue 1 103.0m Market capitalisation 2 $41.2m Cash (as at 30 Sep 13) $3.6m Enterprise value 2 $37.6m 1) Includes 4.5m unquoted shares escrowed until 30 Jan 14 and 41
Slide 6: Performance Against IPO Objectives
Performance Against IPO Objectives IPO Objectives Comment For personal use only Successfully confirmed laterally continuous, gassy coal reservoir at both Selemo and Lesedi pilot areas during drilling and under-reaming operations Successful adoption of surface-to-inseam drilling technology with v
Slide 7: Multi TCF Resource Base, Certified by NSAI
Multi TCF Resource Base, Certified by NSAI Multi TCF Resource Base Resource Growth Strategy For personal use only First CBM operator in Botswana to achieve Aim of current horizontal pilots - converting 3C Resources a NSAI contingent resource into additional 1C and 2C Resources Once field econo
Slide 8: Tlou Has First Mover Advantage
Tlou Has First Mover Advantage Oil & Gas Majors Also Active in Botswana For personal use only Tlou and predecessors have had continuous Botswana CBM Competitive Landscape operations in Botswana since 2007 Major Oil & Gas companies have entered Botswana ― Less developed projects without contingen
Slide 9: Commercialisation Opportunity
Commercialisation Opportunity Opportunity Underpinned by Strong Demand Growth and Constrained Supply For personal use only Local Botswana Opportunities Large South African Opportunities Botswana power demand outstripping supply – significant South African energy market under pressure to meet cur
Slide 10: Karoo Central – 2013 Horizontal Pilot Program
Karoo Central – 2013 Horizontal Pilot Program “Horizontal to Vertical” Pilot Production technology in Botswana For personal use only Horizontal pilot program comprises drilling at two horizontal Horizontal Pilot Well Design pods – Selemo Pilot and Lesedi Pilot Each planned pod consists of one ve
Slide 11: Karoo Central – Progress Update (2013 Work Program)
Karoo Central – Progress Update (2013 Work Program) Successful adoption of surface to in-seam drilling technology in Botswana. For personal use only Horizontal intercept successful at both Selemo and Lesedi Pilot Pods Good gas indications were observed during drilling and under-reaming at both S
Slide 12: Karoo Central – 2014 Work Program
Karoo Central – 2014 Work Program Expanded Pilot Program Planned in 2014 For personal use only 2014 work program will form the basis of field Work Program Timetable development planning and comprise: 2013 2014 ― Continued production testing at Selemo and Lesedi 4Q 1H 2H ― Two additional delineatio
Slide 13: Offer Details – Summary
Offer Details Summary For personal use only Offer Capital raising of 44.75m shares to raise approximately $13.4m Details Placement to institutional and sophisticated investors of 19.0m shares at an Offer Price of $0.30 per new ordinary share to raise $5.7m Placement New Shares issued under the
Slide 14: Offer Details – Use of Funds
Offer Details Use of Funds For personal use only Proforma cash balance of approximately $14.4 million at completion of the capital raising Tlou will be fully funded through 2014 to complete next stage of Karoo Central work program, working capital and offer costs Use of Funds Amount (A$M) Karoo
Slide 15: Offer Details – Timetable
Offer Details Timetable For personal use only Activity Date Trading halt Wednesday, 27 November 2013 Announcement of the Placement and Entitlement Offer Friday, 29 November 2013 Trading resumes on an ex-Entitlement Offer basis Friday, 29 November 2013 Record Date for determining entitlements for the
Slide 16: Offer Details – Selling Restrictions
Offer Details Selling Restrictions For personal use only New Zealand: This presentation does not constitute a prospectus or investment statement and has not been registered, filed with or approved by any New Zealand regulatory authority under or in connection with the Securities Act 1978 (New Zealan
Slide 17: Offer Details – Selling Restrictions
Offer Details Selling Restrictions For personal use only France: This document is not being distributed in the context of a public offering of financial securities (offre au public de titres financiers) in France within the meaning of Article L.411-1 of the French Monetary and Financial Code (Code m
Slide 18: Offer Details – Selling Restrictions
Offer Details Selling Restrictions For personal use only Any financial information contained in this document has been prepared in accordance with Australian Accounting Standards and also comply with International Financial Reporting Standards and interpretations issued by the International Accounti
Slide 19: Offer Details – Summary of key risks
Offer Details Summary of key risks For personal use only Tenure risk - There are conditions that Tlou must satisfy to maintain its prospecting licences in Botswana and special grants in Zimbabwe and to facilitate their conversion to mining permits. There is a risk that Tlou may not be able to sati
Slide 20: For personal use only
For personal use only
Slide 21: Geological Prospectivity Confirmed
Geological Prospectivity Confirmed Coal Seams Display Attractive Features For personal use only Reservoir Distribution Cross Section – Karoo Central Area Wells intersect coals at depths of ~300-700m Cumulative net coal thickness averaging ~25m, and up to 35m in Chris/MDB to places provide horizo
Slide 22: Focus on Botswana
Focus on Botswana A Stable Fiscal Regime With Supportive Stakeholders For personal use only A favourable environment for resource investment – both Real GDP Per Capita 2011 in Africa and globally (US$) ― Stable multi-party democracy B o t s wa na 9 ,4 8 1 ― Investment friendly Government and fisca
Slide 23: Near-Term Local Commercialisation Strategy
Near-Term Local Commercialisation Strategy Botswana Domestic Gas to Power For personal use only Botswana Electricity Supply / Demand Estimate (MW) Botswana power demand outstripping supply ― Investment in generation required (issues with 1,200 commissioning Morupule B power station) ― Government f
Slide 24: Established on the Ground Presence
Established on the Ground Presence Tlou has a Platform for Immediate Project Development For personal use only Personnel Infrastructure Experienced in-country management team Established a gas desorption laboratory and associated ― Well placed to identify, attract and retain skilled labour equip