Tlou Energy Ltd · ASX:TOU
Tlou Energy — Investor Presentation (May 2015)
29 slides from Tlou Energy's investor presentation, May 25, 2015
Slide 1: Capital Raising Presentation
For personal use only Capital Raising presentation Anthony (Tony) Gilby MD & CEO May 2015
Slide 2: Disclaimer
Disclaimer Important notice and disclaimer NO LIABILITY For personal use only This presentation (Presentation) has been prepared by Tlou Energy Limited (Tlou or the Company) and may contain forward- To the fullest extent permitted by law, Morgans Corporate (Morgans), disclaim any obligation or under
Slide 3: Contents
Contents For personal use only Offer Summary Company Overview Lesedi CBM Project Offer Details Investment Risks and Foreign Selling Restrictions 3
Slide 4: Offer Summary
Offer Summary For personal use only • A fully underwritten 4 for 15 Non-Renounceable Entitlement Offer to raise approximately A$5.5 million Offer Structure • Issue price of A$0.14 per share representing a discount of 30% to last close and 25% to the theoretical ex-rights price • Undertake the follow
Slide 5: About Tlou Energy
About Tlou Energy For personal use only Who we ASX listed coalbed methane (CBM) company are What CBM in Botswana we do Our Provide a clean and reliable energy Goal source to Botswana & southern Africa 5
Slide 6: Company Overview
Company Overview For personal use only Market Cap: Share Price: $0.20 ~$30m (21 May 2015) 148m shares Operations: Acreage: Botswana 10 Permits 100% owned 4 pilot locations HQ: Brisbane ASX: TOU 6
Slide 7: Key Information
Key Information For personal use only Botswana CBM Project • ~8,300km2, 100% owned • ~100 well database Certified Contingent Resources • 4.9 BCF (1C) • 239 BCF (2C) • 3,295 BCF (3C) Significant market opportunity • Botswana’s most advanced project • High energy demand Location • Low cost • Supportiv
Slide 8: Experienced Team
Experienced Team For personal use only 8 Field Personnel
Slide 9: Botswana Field Operations
Botswana Field Operations For personal use only Aerial view of Operations Selemo Pod Gas flare - Selemo Pod December 2014 9
Slide 10: Botswana CBM Project
Botswana CBM Project For personal use only 10
Slide 11: Lesedi Project
11 For personal use only Lesedi Project
Slide 12: Gas flows
Gas flows For personal use only Selemo Pilot - Short term test – December 2014* • Peak recorded gas flow of ~400,000 cfd • Average recorded gas flow of ~200,000 cfd • Results suggest a commercial development may be achievable. • First in Botswana to flow CBM gas at these rates *As detailed in Tlou’s
Slide 13: Lesedi CBM Project Technical Fundamentals
Lesedi CBM Project For personal use only Technical Fundamentals Coal depth ~300-700m Cumulative net coal thickness ~25m (Average) Gas contents 4-6 m3/t (DAF) (Average) Unstimulated reservoir ~2-5mD permeability per DST up to 90%+ Gas compositions methane 13
Slide 14: Horizontal Pilot Design
Horizontal Pilot Design For personal use only • Horizontal wells (~750m in-seam) with vertical pumping well • Lesedi pod completed as a dual lateral • Selemo pod completed as a single lateral • Target Reservoir: Basal Morupule coal seam (~6m) 14
Slide 15: Operations
Operations For personal use only Planned work program to end 2015 Up to 2 Single Horizontal Pilot Pods Commencing June 2015 Selemo area Dewatering and testing operations Results 2H 2015 Objective: maximise reservoir drainage area enhance dewatering measure long-term gas flow potential achiev
Slide 16: Botswana Operations
Botswana Operations For personal use only 16
Slide 17: Commercialisation
Commercialisation For personal use only Sequence • Pilot Project up to 10MW (scalable) • Existing Orapa Power Station 90MW • Proposed Power Station 300MW • Export Existing Power Grid • 33kV close to Lesedi Project • 220kV to the east • 400kV Interconnect to neighbouring countries 17
Slide 18: Commercialisation: Initial Gas Delivery – Proof of Concept
Commercialisation For personal use only Initial Gas Delivery – Proof of Concept • Uses otherwise flared gas • Transport CNG via truck • Connect to generator • Potential grid inter-connect Flared gas Transport CNG Generator Connect to grid 18
Slide 19: Independently Certified Contingent Resource
Independently Certified Contingent Resource For personal use only Certified Resource Statement Certified Contingent Resource OGIP(1) Unrisked Gross (100 Percent) Unrisked Net (100 Percent) Category (BCF) (BCF) (BCF) • 4.9 BCF (1C) Contingent Resources Low Estimate (1C) 7.6 4.9 4.9 • 239 BCF (2C) Bes
Slide 20: Forward Plan
Forward Plan For personal use only Gas Expanded Reserve Flow gas Marketing FID program certification Agreements • Achieved • Initial Gas to • Commencing • Target 2H15 • Target Power project June 2015 end 2015 • 90MW Orapa • Target first gas • 300MW IPP delivery 2016 20
Slide 21: Offer Details
Offer Details For personal use only • A fully underwritten 4 for 15 Non-renounceable Entitlement Offer of approximately 39.4 million new shares to raise approximately A$5.5 million • Record date of 7.00pm (AEST) on Friday, 29 May 2015 Entitlement Offer • New Shares rank pro-rata with existing TOU sh
Slide 22: Use of Proceeds
Use of Proceeds For personal use only Sources Uses Lesedi Project Pilot expansion • Up to 2 single horizontal pilot pods $2.6m (Selemo) Existing cash (31March 2015) $4.6m $0.3m • Potential single vertical well • Operations equipment $0.8m • Operating support & maintenance $3.6m Capital Raising (net
Slide 23: Offer Timetable
Offer Timetable For personal use only Activity Date Announcement of the Entitlement Offer Monday, 25 May 2015 Offer Booklet lodged with ASX Monday, 25 May 2015 Trading on an ex-entitlement basis Wednesday, 27 May 2015 Record date for determining entitlements for the Entitlement Offer (by 7pm) Friday
Slide 24: Investment opportunity
Investment opportunity For personal use only 24
Slide 25: Foreign Selling Restrictions
Foreign 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 Zealand). Th
Slide 26: Selling Restrictions
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 monétaire et fi
Slide 27: Selling Restrictions
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 Accounting Standards B
Slide 28: Summary of Key Risks
Summary of Key Risks For personal use only There are conditions that Tlou must satisfy to maintain its prospecting licences in Botswana and to facilitate their conversion to mining permits. Tenure risk There is a risk that Tlou may not be able to satisfy these requirements. Tlou has certain prospect
Slide 29: Thank You
Thank You For personal use only 210 Alice St Brisbane QLD 4000 Australia Tel: +61 7 3012 9793 Ground Floor, Victoria House 132 Independence Avenue Gaborone Botswana Tel: +267 316 0857 www.tlouenery.com info@tlouenergy.com ASX: TOU