Tower Resources Plc · LSE:TRP

Tower Resources — Investor Presentation (October 2015)

21 slides from Tower Resources's investor presentation, October 2015

  1. Slide 1: African Exploration: From Frontier to Proven Basins

    African Exploration From Frontier to Proven Basins October 2015 Photo courtesy of Dolphin Geophysical

  2. Slide 2: Disclaimer: Important Notice

    Disclaimer Important Notice DISCLAIMER The information contained in these slides has been prepared by Tower Resources plc (the “Company”). This Presentation is being made for information purposes only and does not constitute an offer or invitation for the sale or purchase of securities or any of the

  3. Slide 3: Moving from Frontier to Proven Basins

    Tower Resources Moving from Frontier to Proven Basins Tower today  Strong portfolio  Low commitments; large upside  Adding lower risk proven basin exposure to balance frontier activity • Cameroon Thali block (Proven) – Signed 15 Sept 2015 • Namibia (Frontier) • Zambia and South Africa (Frontier)

  4. Slide 4: Capital Structure

    Tower Resources Capital Structure Capital Structure Shareholders Listing AIM Share price 0.11p Market capitalisation ~ US$11m Issued share capital 6,764.4m Options & warrants 365.9m (5.2%)‡ Balance sheet ~ US$5.5m cash Directors’, staff and 15.9% consultants’ holdings Average Daily Volume† 16.8 mill

  5. Slide 5: Tower's Team

    Tower Resources Tower’s Team  Board strengthened for new challenges  Dr Phil Frank joins as Technical NED  Directors, employees and consultants Jeremy Asher Peter Blakey Dr Philip Frank Philip Swatman Peter Taylor own ~16% of issued share capital Non-Executive Chairman Non-Executive Director Non-

  6. Slide 6: Tower's Exploration Strategy

    Tower Resources Tower’s Exploration Strategy Transformational returns through material discovery – via a risk-managed portfolio ACCESS New Acreage • Typically Frontier or Emerging Basins DE-RISK • Operated in early Partnering phases maintaining • Farm-outs at critical control stages TRADE RISK • Add

  7. Slide 7: Exploration Portfolio Reflects Strategy

    Tower Resources Exploration Portfolio Reflects Strategy Proven Basins  Cameroon Thali (ex- Dissoni) block – New Country Entry as Operator with discoveries already on block Frontier Basins  Namibia – New Licence Applications  Zambia – Source rock confirmed  South Africa – renewal granted  SADR –

  8. Slide 8: Thali (Ex-Dissoni) Block

    Cameroon, Rio del Rey Basin Thali Block – PSC Signed 15 September 2015 Thali (Ex-Dissoni) Block New exploration/appraisal licence in the Rio del Rey sub-basin of the prolific Niger Delta basin Two discoveries on-block in shallow water Opportunity to acquire modern 3D seismic to unlock low-risk upsid

  9. Slide 9: Thali Block – proven plays in Niger Delta

    Cameroon, Rio del Rey Basin Thali Block – proven plays in Niger Delta Rio Del Rey Basin Regional Hydrocarbon Provinces Nigeria Cameroon Extensional Province  Underexplored sub- Mobile Shale Belt RIO DEL REY BASIN Fold-Thrust Belt > 2 Billion bbl / >1.4 TCF basin of the prolific Niger Delta  >> 34.

  10. Slide 10: Proven Oil and Gas on Block

    Cameroon, Rio del Rey Basin - Thali Block Proven Oil and Gas on Block Low-Risk Fault-Blocks Close to Existing Infrastructure  25 MMbbl Thali North field lies immediately north of the Thali block DISSONI NORTH 25 MMbbl  Developed by Perenco – planned peak production 12,500 bopd 35o API oil  Camero

  11. Slide 11: Shallow Production – Deeper Exploration

    Cameroon, Rio del Rey Basin Shallow Production – Deeper Exploration GROWTH FAULT ZONE MOBILE SHALE BELT FOLD-THRUST BELT OONGUE KARA ASOMA ERONG DISSONI NJOM DBM1 NORTH NB: LOCATIONS OF WELLS IS SCHEMATIC TO HIGHLIGHT PLAYS TESTED NNW THALI BLOCK SSE 1km MAJORITY OF DISCOVERED RESERVES APPROXIMATE D

  12. Slide 12: Significant Exploration Potential

    Cameroon, Thali Block Significant Exploration Potential Underexplored Sandstone Plays  Billion barrel fields along trend in Eq. Guinea  >400 MMbbl & 1.5 TCF identified in Thali  Marathon oil discoveries in Equatorial Guinea extend fairway Forward Programme  Acquire new 3D seismic to update 20 ye

  13. Slide 13: Thali Block - Licence Overview

    Cameroon, Rio del Rey Basin Thali Block - Licence Overview Thali Block Licence Commitments Offshore, Rio del Rey Basin Initial Exploration Period G&G studies Area: 119 km² - 3 years 3D seismic acquisition (100 km²) Water Depth: 8 - 48 m - Min expenditure $13MM x1 well (>1100m) Tower interest: 100% F

  14. Slide 14: Namibia - New Licence(s)

    Tower Resources Namibia - New Licence(s)  Regional review post MID - LATE CRETACEOUS TURBDITE PLAYS EARLY - MID CRETACEOUS CARBONATE PLAYS Welwitschia has high- Cretaceous sands graded Walvis and Namibe 60m net thickness >24% av. porosity Albian carbonates Net Thickness: 28m Basins in north of offs

  15. Slide 15: Namibia Offshore - 'Northern Area' Play Concepts

    Namibia Offshore - ‘Northern Area’ Play Concepts  Multiple plays identified NAMIBE BASIN (SCHEMATIC CROSS-SECTION)  Proven source reservoir and seal elements from existing wells  Extremely underexplored with less than one well every 10,000 km2.  Good 2D seismic coverage, but recent data offers i

  16. Slide 16: Why Zambia? 'There is no oil there….'

    Zambia, Blocks 40 and 41 Why Zambia? ‘There is no oil there….’  But has anyone really looked? No  The Mid-Zambezi Basin: Historic focus 25-30yrs ago in Luangwa Basin – A 25,000+ km2 rift basin with source Only two wells drilled and reservoir but no oil & gas exploration wells, nor even any seismic

  17. Slide 17: Proven Source Rocks & Reservoirs

    Zambia, Blocks 40 and 41 Proven Source Rocks & Reservoirs  Key play elements proven in Blocks 40 & 41 Play Stratigraphy of Blocks 40 & 41 by initial field work in 2014, with additional work in 2015: AGE SUPER- (Ma) STAGE GROUP  Widespread source rocks TERT. KALAHARI SSTS JURA. BATOKA BASALT  Exce

  18. Slide 18: East Irish Sea – analogy for scale, basin history

    Zambia, Blocks 40 and 41 East Irish Sea – analogy for scale, basin history East Irish Sea Basin: EAST IRISH SEA • Total Gas Recoverable - 8.3 TCF A • Total Oil Recoverable – 209 MMBBLS 25km 25km Strong comparison to the Mid-Zambezi Basin for basin history and play style : • Permo-Triassic sandstone

  19. Slide 19: South Africa – Well placed in areas targeted by Majors

    South Africa – Rift Portfolio Well placed in areas targeted by Majors 2014 Acquisition of Rift Petroleum  Algoa-Gamtoos (50%, Operator: New Age)  3D acquired in 2014  1st Renewal Period of Algoa-Gamtoos granted in Sept 2015 – additional seismic planned in 2017  Oil-majors in neighbouring South A

  20. Slide 20: Anticipated Activity

    Tower Resources Anticipated Activity (All timings are estimates based on the best available information, but are subject to change) Farm-out opportunities Milestone – decision point for entering next period of licence & taking on forward work programme commitments © 2015 Tower Resources plc 20

  21. Slide 21: Summary

    Tower Resources Summary An Optimised Exploration Portfolio  Moving towards Proven from Frontier Basins  Cameroon entry in Sept 2015 with existing discoveries  Strengthened and focussed team  Strategy focussed on risk management  Flexible portfolio • Low near-term commitments • High potential 

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